Leadership and Top Management at Samsung - Case Study Example

Samsung Case Analysis Table of Contents Leadership and Top Management at Samsung 3 2. Mission and Vision 3 3. Culture 4 4. Global Strategic Challenges 5 5. Current Trends in Stop Motion Animation 6 6. Corporate Diversification- Level 7 7. Innovation 8 8. Competition and Collaboration 9 9. Market Research 11 10. Recommendation 11 1. Leadership and Top Management at Samsung Samsungs leadership hews to the Asian business leadership model, that is hierarchical and characterized by a strong leader founder, succeeded by his son and key members of the family. Apples leadership and top management was led by a strong personality in Jobs, who was also founder of the firm, but next-generation leaders are professionals and not family members Samsungs top management developed from elite groups championing innovation. Apples top management are silo experts with a separate design team picked from the best in the industry and not necessarily home-grown Samsungs top management focused on business processes, while Google and Apple top management are focused on innovation based on key platforms and products Google top management more collegial, compared to Samsung, which stresses strong adherence to corporate values Samsung top leadership focuses on discipline as a key value, whereas Google and Apple top management focus on innovation and creativity as top values Source http://www.forbes.com/sites/haydnshaughnessy/2013/03/07/who-has-the-winning-innovation-model-google-apple-or-samsung/ Source http://www.businessweek.com/articles/2013-03-28/how-samsung-became-the-worlds-no-dot-1-smartphone-maker 2. Mission and Vision Samsungs vision/mission is to “inspire the world, create the future”. This mission/vision statement aims at leadership and the breaking new paths, rather than following and copying. Googles mission centers around the organization of the information of the world and enabling universal access and use. Apples mission statement is vague in comparison to Samsung, because it focuses on what it has achieved with its iPhone and iPad as well as software and apps ecosystem, rather than looking forward to the future. Its implied mission is to continue to lead in the definition of the future of mobile and general computing, along the same lines as Samsungs but more specific to computing. Samsung in comparison just focuses on the future without referring to any particular technology Nokias vision has not changed and is brief: Connecting people. This means a focus on mobile as a way of reaching the billions on the planet and to enable those billions to gain enjoyment of their lives. In comparison to Samsung it does not aim at breaking new ground per se, but in reaching as many people as possible with a focus on mobile Source: http://investor.apple.com/faq.cfm?FaqSetID=6 Source: http://www.samsung.com/us/aboutsamsung/corporateprofile/visionmission.html Source: http://www.google.com/about/company/ Source: http://www.nokia.com/global/about-nokia/about-us/about-us/ 3. Culture Samsung culture reflects its eastern roots: a focus on hierarchy and discipline, and on elite teams that lead the firm in key areas such as engineering excellence and innovation In comparison, Googles culture is more collegial, and flat, reflecting western egalitarian sensibilities. The same goes for Apple, with the exception that in Apple it is innovation and design that are the most prized roles. In Nokia the culture is wed to the Finnish culture of engineering excellence Between Samsung and Google/Motorola plus Apple taken together are two sets of contrasting underlying ideologies: the latter at the very top has a culture that defers to the owner-founders, whereas in Apple top management is made up of professionals with no blood ties to the founders. Samsungs culture contrasts with Apple in that Apple has innovation at its DNA, while Samsung has had to more consciously instill innovation and creativity Source http://www.forbes.com/sites/haydnshaughnessy/2013/03/07/who-has-the-winning-innovation-model-google-apple-or-samsung/ Source http://www.businessweek.com/articles/2013-03-28/how-samsung-became-the-worlds-no-dot-1-smartphone-maker Source: http://www.nokia.com/global/about-nokia/about-us/culture/our-people-and-culture/ Source: http://www.google.com/about/company/ 4. Global Strategic Challenges Samsung: continuing to excel and remaining on top of the mobile industry, diversifying into other platforms Nokia: turning around its fortunes and becoming a viable business concern moving forward Apple- continuing to innovate to merit premium positioning in mobile Google- leveraging the strengths of Android and search to keep its business model viable Source http://www.forbes.com/sites/haydnshaughnessy/2013/03/07/who-has-the-winning-innovation-model-google-apple-or-samsung/ Source http://www.businessweek.com/articles/2013-03-28/how-samsung-became-the-worlds-no-dot-1-smartphone-maker Source: http://www.nokia.com/global/about-nokia/about-us/culture/our-people-and-culture/ Source: http://www.google.com/about/company/ 5. Current Trends in Stop Motion Animation Stock Price Revenues Profits MarketCap P/E Ratio Samsung (korean won) 1,481,000 200,000,000 30,000,000 218,150,320M 9.62 Nokia 3.32 dollars 30.176B euro -2.30B euro 12.43B dollars negative Apple 430.77 156.5B 41.66 B 404.94B 10.28 Source: http://news.cnet.com/8301-13579_3-57540705-37/apples-fiscal-2012-in-numbers-125m-iphones-58.31m-ipads/ Source: https://www.google.com/finance?q=NASDAQ:AAPL Source: http://techcrunch.com/2012/07/19/nokia-reports-q2-2012-results-e7-5-billion-in-net-sales-negative-eps-of-0-09/ Source: http://press.nokia.com/2013/01/24/nokia-corporation-q4-and-full-year-2012-interim-report/ Source: https://www.google.com/finance?q=NYSE:NOK Source: http://www.bloomberg.com/quote/005930:KS Source: http://uk.finance.yahoo.com/echarts?s=005930.KS#symbol=005930.ks;range=1y;compare=;indicator=volume;charttype=area;crosshair=on;ohlcvalues=0;logscale=off;source=undefined; 6. Corporate Diversification- Level Google is in search, mobiles via Motorola, Android software, corporate software, apps, Maps, and many other emerging computing paradigms, products and lines of businesses. Samsung is in mobile computing, consumer electronics, semiconductors, memory, displays, electronic components, and in devices and electronics for a wide range of industries. Arguably among the players Samsung has the highest level of corporate diversification, though it is not diversified in software and platforms, where Google and Apple thrive Apple is least diversified in hardware and in software and search platforms, limited to its own proprietary and specific computing software platforms such as iTunes and its Mac and iOS platforms Nokia has even a lower level of corporate diversification, heavily invested in mobile phones and in telecommunications networks , Source: http://news.cnet.com/8301-13579_3-57540705-37/apples-fiscal-2012-in-numbers-125m-iphones-58.31m-ipads/ Source: https://www.google.com/finance?q=NASDAQ:AAPL Source: http://techcrunch.com/2012/07/19/nokia-reports-q2-2012-results-e7-5-billion-in-net-sales-negative-eps-of-0-09/ Source: http://press.nokia.com/2013/01/24/nokia-corporation-q4-and-full-year-2012-interim-report/ Source: https://www.google.com/finance?q=NYSE:NOK Source: http://www.bloomberg.com/quote/005930:KS Source: http://uk.finance.yahoo.com/echarts?s=005930.KS#symbol=005930.ks;range=1y;compare=;indicator=volume;charttype=area;crosshair=on;ohlcvalues=0;logscale=off;source=undefined; Source http://www.forbes.com/sites/haydnshaughnessy/2013/03/07/who-has-the-winning-innovation-model-google-apple-or-samsung/ Source http://www.businessweek.com/articles/2013-03-28/how-samsung-became-the-worlds-no-dot-1-smartphone-maker Source: http://www.nokia.com/global/about-nokia/about-us/culture/our-people-and-culture/ Source: http://www.google.com/about/company/ Source: https://www.google.com/finance?q=NASDAQ:GOOG 7. Innovation Google displaying high level of innovation in platforms, refining its key search properties and innovating in cloud platforms, productivity software, social networking, and mobile Apples innovation level has seemingly waned in recent years, risks falling behind Samsung and Google in this space Nokia innovating on new platform with its own properties and patents, capitalizing on Microsoft innovation in mobile platform too Samsung has displayed excellence in innovation around mobile with Android and Galaxy phones, tablets and phablets, also in innovation making use of its own scale economies in parts and manufacturing, as well as in the overall supply chain. Samsung leads this pack in innovation at present, poised to out-innovate even Apple moving forward Source: http://news.cnet.com/8301-13579_3-57540705-37/apples-fiscal-2012-in-numbers-125m-iphones-58.31m-ipads/ Source: https://www.google.com/finance?q=NASDAQ:AAPL Source: http://techcrunch.com/2012/07/19/nokia-reports-q2-2012-results-e7-5-billion-in-net-sales-negative-eps-of-0-09/ Source: http://press.nokia.com/2013/01/24/nokia-corporation-q4-and-full-year-2012-interim-report/ Source: https://www.google.com/finance?q=NYSE:NOK Source: http://www.bloomberg.com/quote/005930:KS Source: http://uk.finance.yahoo.com/echarts?s=005930.KS#symbol=005930.ks;range=1y;compare=;indicator=volume;charttype=area;crosshair=on;ohlcvalues=0;logscale=off;source=undefined; Source http://www.forbes.com/sites/haydnshaughnessy/2013/03/07/who-has-the-winning-innovation-model-google-apple-or-samsung/ Source http://www.businessweek.com/articles/2013-03-28/how-samsung-became-the-worlds-no-dot-1-smartphone-maker Source: http://www.nokia.com/global/about-nokia/about-us/culture/our-people-and-culture/ Source: http://www.google.com/about/company/ Source: https://www.google.com/finance?q=NASDAQ:GOOG 8. Competition and Collaboration Samsung has chosen to compete with Apple and Nokia, while cooperating with Google on Android. Samsung has also cooperated with Apple in providing parts, while competing on platforms and phones, among other things The Open Handset Alliance has benefited Google by being able to leverage the alliance to gain traction in mobile with Android. Samsung has benefited from Androids ecosystem and app strengths, and its being free. With Motorola now with Google, there is obviously competition in phones, while there remains cooperation in having the same goals relative to Android versus competing platforms from Apple and recently Microsoft with Nokia Competition and collaboration exists in the case of companies like Samsung whose wide range of businesses serve some companies that they also compete in in other vital segments such as mobile Source: http://www.openhandsetalliance.com/oha_overview.html Source: http://news.cnet.com/8301-13579_3-57540705-37/apples-fiscal-2012-in-numbers-125m-iphones-58.31m-ipads/ Source: https://www.google.com/finance?q=NASDAQ:AAPL Source: http://techcrunch.com/2012/07/19/nokia-reports-q2-2012-results-e7-5-billion-in-net-sales-negative-eps-of-0-09/ Source: http://press.nokia.com/2013/01/24/nokia-corporation-q4-and-full-year-2012-interim-report/ Source: https://www.google.com/finance?q=NYSE:NOK Source: http://www.bloomberg.com/quote/005930:KS Source: http://uk.finance.yahoo.com/echarts?s=005930.KS#symbol=005930.ks;range=1y;compare=;indicator=volume;charttype=area;crosshair=on;ohlcvalues=0;logscale=off;source=undefined; Source http://www.forbes.com/sites/haydnshaughnessy/2013/03/07/who-has-the-winning-innovation-model-google-apple-or-samsung/ Source http://www.businessweek.com/articles/2013-03-28/how-samsung-became-the-worlds-no-dot-1-smartphone-maker Source: http://www.nokia.com/global/about-nokia/about-us/culture/our-people-and-culture/ Source: http://www.google.com/about/company/ Source: https://www.google.com/finance?q=NASDAQ:GOOG 9. Market Research Mobile: Apple iPhone PCs: Apple Mac Tablet: iPad Apple TV: Samsung Musical storage: iPhone and several iPods 10. Recommendation Recommendation being made to Samsung top management, given that the next ten years will be very important for the players in the telecommunications space and in mobile computing in particular, and that the preceding discussion veers towards looking at the companies involved from macro point of view Recommendations to Samsung Top Management Strengthen Galaxy brand, diversify into other software ecosystem/platforms using the Galaxy brand to differentiate it from generic Android and de-couple from Android Leverage scale economies and vertical integration to snatch pole position in the premium smart phone space from Apple Develop own viable ecosystem independent of Android Continue to develop a culture of creativity and innovation at Samsung top management Develop more computing products for the low-end mass market Source: http://www.openhandsetalliance.com/oha_overview.html Source: http://news.cnet.com/8301-13579_3-57540705-37/apples-fiscal-2012-in-numbers-125m-iphones-58.31m-ipads/ Source: https://www.google.com/finance?q=NASDAQ:AAPL Source: http://techcrunch.com/2012/07/19/nokia-reports-q2-2012-results-e7-5-billion-in-net-sales-negative-eps-of-0-09/ Source: http://press.nokia.com/2013/01/24/nokia-corporation-q4-and-full-year-2012-interim-report/ Source: https://www.google.com/finance?q=NYSE:NOK Source: http://www.bloomberg.com/quote/005930:KS Source: http://uk.finance.yahoo.com/echarts?s=005930.KS#symbol=005930.ks;range=1y;compare=;indicator=volume;charttype=area;crosshair=on;ohlcvalues=0;logscale=off;source=undefined; Source http://www.forbes.com/sites/haydnshaughnessy/2013/03/07/who-has-the-winning-innovation-model-google-apple-or-samsung/ Source http://www.businessweek.com/articles/2013-03-28/how-samsung-became-the-worlds-no-dot-1-smartphone-maker Source: http://www.nokia.com/global/about-nokia/about-us/culture/our-people-and-culture/ Source: http://www.google.com/about/company/ Source: https://www.google.com/finance?q=NASDAQ:GOOG Read More