...unlikely success in mixing Western best practices with an essentially Japanese business system holds powerful lessons for today’s emerging giants. by Tarun Khanna, Jaeyong Song, and Kyungmook Lee A s today’s emerging giants face the challenge of moving beyond their home markets, they have much to learn from the pathbreaking experience of South Korea’s Samsung Group, arguably the most successful globalizer of the previous generation. Twenty years ago, few people would have predicted that Samsung could transform itself from a low-cost original equipment manufacturer to a world leader in R&D, marketing, and design, with a brand more valuable than Pepsi, Nike, or American Express. Fewer still would have predicted the success of the path it has taken. For two decades now, Samsung has been grafting Western business practices onto its essentially Japanese system, combining its traditional low-cost manufacturing prowess with an ability to bring high-quality, high-margin branded products swiftly to market. The two sets of business practices could not have seemed more incompatible. Into an organization focused on continuous process improvement, Samsung introduced a focus on innovation. Into a homogeneous workforce, Samsung introduced outsiders who could not speak the language and were unfamiliar with the company’s culture. Into a Confucian tradition of reverence for elders, Samsung introduced merit pay and promotion, putting some young people in positions...
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...the leap from global presence to global domination? Has it made the pledge to transform itself? In the second of a 12-part series, Manjari Raman compares the conglomerate with the Korean chaebols and speaks with Harvard Business School Professor Donald Sull on the strategic challenges ahead for one of India's oldest business groups "This year we will also be focusing on expanding our businesses internationally... This is an important new phase in our group's growth plans and I trust you will also fully commit yourselves to achieving success in establishing a strong international presence for the group" -Tata group Chairman Ratan Tata's message to the group on January 1, 2004. It seemed prescient. Here I was, wondering what stopped Indian companies from going global "" and the chairman of one of the country's oldest, most revered business groups was just starting to make a commitment to globalisation. Could it be that no Indian company had become truly global because not one had committed itself wholly, totally, irrevocably to globalisation? One person has the credentials to answer that question: Harvard Business School Professor Donald Sull. His book Revival of the fittest: why good companies go bad and how great managers remake them (Harvard Business School Publishing, 2003) had caused a stir because of its basic premise, "management by commitment". Pertinently, I knew that Sull was also researching what made companies globally competitive in Brazil, China and...
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...Management Case Analysis: Samsung Electronics Memory chips were further classified into DRAM (Dynamic Random Access Memory), SRAM (Static RAM), and Flash memory. Flash memory, which was the hot-growth area, was used heavily in digital cameras and mobile phones. While DRAMs lost data when power was turned off, Flash memory could continue to store data in the absence of a power source. Considering the fact above, the flash memory market in the future will be very attractive. Along with the technology development there will be so many electronic devices using flash memory. Samsung started to create the advantage in Flash memory that it enjoyed in DRAM. Started in 1999, Samsung was seeking to move some of its production capacity from DRAMs to flash memory. Nowadays, people are always looking handy electronics device with multifunction ability and able to store huge data. Therefore, if Samsung makes investment in Flash memory technology, then it would be their advantage in the future. Foundry companies, whose sole business is manufacturing, have recently come to the fore, providing attractive outsourcing options. In addition to foundries, the ranks of increasingly specialized designers and chip testers are starting to swell. Chip companies are emerging leaner and more efficient. Four main product categories: Memory: Memory chips serve as temporary storehouses of data and pass information to and from computer devices' brains. Companies: Toshiba, Samsung and NEC Microprocessors:...
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...As we know Samsung is one of the most wide spread and well known companies in the world. With its destination and wide range of production segments Samsung is establishing its ownership globally. But in other hand, macro-economical factors such as pressure from competitors, innovations of new type of technologies, customers demand and many others is tackling Samsung company to survive in the turbulence. Managers and marketers of Samsung have successfully been doing their job to promote the business. They used unique techniques to survive and to lead their brand forward, such as Samsung created lots of production segments (smart phones, Tablets, TVs, household equipments and so on) they made their goods available to everyone by selling in premium prices. They opened their doors and contracted with many well known corporations. There are some more ways to improve efficiency of the business. Let’s look each of them in detail: 1. In order to be globally successful, Samsung should use and develop marketing strategies by taking into account its strengths, weaknesses and availability of resources. It’s been too long for Samsung company to come this position, however, to reach their objectives they need to never stop “fighting”. 2. The company should try to develop product which global consumers could identify easily from competitors one. We can take the best example of “Apple” goods. Each person can recognize Smartphone - “Iphone” without any difficulty. 3. Identify...
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...Recommendation Project: Samsung Group and Samsung Electronics MBA6004 Foundational Skills for Business Leaders Abstract This paper analyzes how Samsung can continue to maintain a competitive advantage over its competitors by incorporating social networking sites such as Instagram, Twitter, Pinterest, and Vine into its social media strategy. Samsung has a long track record of excellence and continues to be a powerful and reliable brand to millions of users. Presently, Samsung is marketing primarily through YouTube and television ads. Yet, with the rapid changes in technology, Samsung’s use of Instagram, Twitter and other social networking sites can allow the business to take its brand to significant levels. Taking advantage of multiple social networking sites can not only help Samsung maintain a competitive edge, it will allow the company to maximize its business and foster real brand advocates and loyal customers. With the undeniable popularity and rapid expansion of Instagram, Twitter and other social media sites, the benefits would be significantly worth Samsung using these platforms as a part of its social media strategy. The History of Samsung Samsung is a multi-million dollar technology company founded by Lee Byung-chul as a trading company in 1938 which sells everything from televisions to cell phones, to appliances and other commodity products. Samsung first made its way in...
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...Strategy…………………………………………………..………………3 Implications for Marketing………………………………………………..………………5 Strength of the Samsung Brand...........……..…………………………………………………......5 Comparison to Sony: Becoming a Top Ten Global Brand…...…………………………...5 CMO’s Role & Responsibilities…………………………………..…...………………………….6 Building Influence...……………………………………..…...…………………………...7 Conclusion/ Decision ……………......…………...…………………………………………….....7 References…………………………………………………………………………………………8 Samsung Electronics Company: Global Marketing Operations- Introduction In the 1990’s Samsung started out as a “third-tier commodity brand with very little product differentiation” (Quelch & Harrington, 2008). Due to the Asian financial crisis in 1997, the company experienced tremendous loss, and made the difficult decision to revamp their brand image. Based on this strategic change, Samsung was able to experience increasing brand success, and in August 2003, became number 25 in the world’s most valuable brands, with an estimated valuation of $10.8 billion. Initially, the company’s turnaround strategy was what spearheaded the corporation into such tremendous success. During that time, Samsung’s marketing function was overhauled, so that it could support the new brand proposition. This case study analysis will measure the strength of Samsung’s brand and consider whether Samsung can pass Sony, which was ranked number 20 in the world, with a valuation of $13.2 billion. Finally, the...
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...MKT501 Strategic Marketing Module 2: SLP, Product Management & Situation Analysis Dr. Ronald Zallocco Trident University Constance E. St Julien-Mims August13, 2015 Iphone 7 by Apple Inc. U.S 2 Product Plan for iPhone 7 by Apple INTRODUC TION I have selected Apple’s needs to increase its market share for iPhone 7 for my SLP topic because it is a company that has designed top quality media products successfully. Apple has designed Mac, which is the best personal computer in the world along with OSX, iLife, iWork and professional software. Apple also leads the digital music revolution with its iPod and iTunes online store and has reinvented the mobile phone with its revolutionary iPhone and App store. It’s invention of the ipad is defining the future of mobile media and computing devices (Apple, 2012: n.d). Apple's Product Development Apple may release its next iPhone on September 25, according to the blog Mobile News, which claims to have obtained an internal staff email sent to employees of the British carrier Vodafone. The email reportedly outlined launch plans for the next iPhone, saying the phone would be released on September 25 with preorders starting September 18. Apple has always released the previous iphone in September in the past, but there's no telling exactly when the iphone 7 will be available. Even if Mobile News' email is legitimate, there's no evidence to prove that Vodafone has any knowledge of Apple's iPhone launch...
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...Samsung Electronics Prepared by: M. O. Prepared for: Dr. N. C. Course: Organizational Strategy, MGM 6123, Fall 2009 [pic] Date: October 5, 2009 H. State University Samsung Group is one of the leading global conglomerates originating in South Korea, termed chaebol in native terms. Their sales in 2004 climbed to $134billion with 337 overseas operations in 58 countries and they employed 212,000 people worldwide. They have myriads of businesses in a wide variety of industry sectors including electronics, finance, trade and services (Siegel and Chang, 2005). In 1974 a semiconductor company in South Korea started ‘wafer’ production. This was purchased by Samsung Company who merged the semiconductor company with their electronics division to form a ‘global powerhouse’ (Siegel and Chang, 2005). They started with producing watch chips. In the 1980s, semiconductor was decided to be the future of Samsung Group. And the company gave most of its resources to this ‘star affiliate’ (Siegel and Chang, 2005). During 1983 to 1985, Intel exited the DRAM market. Samsung still held on despite incurring losses hoping that it would someday pay off. Their persistence paid off in later years. Samsung built its first large plant in the mid 1980s. Building a semiconductor facility is difficult and time consuming, because of high sensitivity to dust and electric shock. But the Samsung workers, from the executives, engineers, down to the field laborers, were highly dedicated. One memorable...
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...BUSINESS ETHICS AND CSR IN THE CONTEXT OF SAMSUNG ELECTRONICS 1.0 Introduction In the 21st century of business, there are number of factors apart from the financial figures that play a vital role for the success story of the business corporations. These factors include the culture adopted by the business, philosophy of the management of the company, code of ethics and standards followed by business. The presence of all of these factors in the business’s ethical guidelines has a significant impact on the ability of the business organisations to perform well on the long term basis. In this report the Samsung Electronics’ ethical issues are studied along with the importance of the business ethics and Corporate Social Responsibility (CSR) practices adopted by the business organisations. The upcoming sections of this report present information about the meaning and importance of business ethics which is followed by the description of the violations of the ethical issues by the Samsung Company and the also the role of Samsung management in promoting CSR and overcoming ethical issues. 2.0 Meaning of Business Ethics The primary objective of each and every business organisation is to run business for the purpose of profit as well as the maximisation of owners’ wealth. Profit can be maximized by selling goods and services at reasonable prices and as far as wealth is concerned this can only be maximized if business follows the required ethics. The term business ethics...
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...Communicating Sustainable Growth Material Issues Samsung Electronics is not just about achieving growth and change, but also does its utmost to take on important social responsibilities, such as promoting prosperity and coexistence of the global community. Samsung will spare no effort to create value through corporate sustainability management - making sure it protects the environment, shares growth with suppliers and cultivates its pool of talent , while also strengthening its position as a market innovator for the future. Contents 34 Human Resources 42 Health & Safety 50 Eco Products 54 Water Management 58 Shared Growth 62 Supplier Compliance 72 Conflict Minerals 75 Product Accessibility 80 Global Social Contribution : Delivering Hope Around the World 2014 SAMSuNg ElECTRONICS SuSTAINAbIlITy REpORT 50,416 workforce increase compared to 2012 Grow Together Establishment of a Creative Culture At Samsung, we consider creativity to be the seed of innovation and take pride in the creative spirit and autonomy of our employees. The collaboration and entrepreneurship we encourage across our company has enabled our success to date and will propel us forward. At Samsung, we welcome challenges and see new initiatives as opportunities for growth and learning. Samsung Electronics encourages employees’ independence and creativity through their performance-based compensation policy. In an effort to ensure a smooth organizational operation...
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...I. SIEGEL JAMES JINHO CHANG Samsung Electronics Introduction Kun Hee Lee, chairman of the Samsung Group, contemplated his company’s strategy while sitting in the basement office of his home. His office had a one hundred-inch screen on the wall, and in front of the screen there was a short desk, just one foot in height. Lee spent much of his day in this room, studying the strategies of his competitors and overseeing multibillion-dollar investment decisions. Beside his desk were hundreds of DVDs and videos, many examining his competitors’ histories and strategies. Every new product made by Samsung and its competitors sat along the walls. Trained as an engineer, Lee eagerly picked apart every product, examining its design and quality of manufacturing.1 As he sat next to his low desk and sipped a cup of Korean green tea, Lee wondered whether his legion of Samsung employees was following his stern advice to always demand superiority in product design and process efficiency. He had grave concerns about complacency in his company. He remembered how he mentioned in a senior management meeting: “To an outsider, reprimanding a manager whose division racked up [billions of dollars] in profit might seem bizarre. But I don’t see it that way. Our abilities and efforts did play a role in our success, but we must realize that most of it came from the leading companies’ negligence, pure luck, and our predecessors’ sacrifice.”2 Under Lee’s leadership, Samsung had risen to become the world’s...
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...Samsung – Stages of Corporate Citizenship Corporate Social Responsibility (CSR) as part of business strategy has shown increased prominence in contemporary business world. On a daily basis the roles corporations play in society are scrutinized by the media who constantly lookout to report on scandals, corporate misbehavior or, the positive contributions businesses have on society (Crane, 2008). Induced by this, corporations are facing increasing pressure to legitimate their practices and take account of the impact they have on society, which has led to the emergence of what Crane (2008) refers to as a ‘CSR Movement’. The concept of CSR emerged in the 1960/70’s as an American Doctrine that has popularized in recent decades due to the emergence of factors including globalization and the rise of global/transnational corporations (Jenkins, 2005). Attitudes around this concept have also altered from viewing CSR as a philanthropic exercise to a concept/practice necessary for corporate survival. The latter point can be supported by a numerous examples of organizations that have not complied with ethical/socially responsible standards, such as Nike, who faced numerous allegations of unethical conditions at its overseas suppliers in the 1990’s (Zadek, 2004). It is virtually impossible to define CSR due to the every-evolving nature of the concept. Various sources including academics, articles, and websites tackle, and all produce unique definitions of the concept. Crane, Matten...
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...available at ScienceDirect International Journal of Information Management journal homepage: www.elsevier.com/locate/ijinfomgt Case Study A business process-oriented method of KM solution design: A case study of Samsung Electronics Peter Baloh a,Ã, Katharina Uthicke b, Gyewan Moon b a b Faculty of Economics, University of Ljubljana, Ljubljana, Slovenia Kyungpook National University, Daegu, South Korea a r t i c l e in fo Keywords: Knowledge management solution design Organizational design Business process change abstract Improving how knowledge is leveraged in organizations for improved business performance is today considered as a major organizational change. Knowledge management (KM) projects are stigmatized as demanding, fuzzy and complex, with questionable outcomes—more than 70% of them do not deliver what they promised. A case of Samsung Electronics mobile branch we present shows how KM projects can be more successful if they are treated as business process-oriented organizational change projects. Both organizations and academia can stand on the shoulders of giants as previous experience and research in that area is rich. Adding the KM flavor to such organizational change is the goal of this case study; the learning outcomes include a six-step KM solution design method, a justification for the business process level of analysis and managerial action, and the need for modest and just-do-it approach when introducing KM-related organizational interventions...
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...Samsung Case Analysis: Key points Q1: How attractive is the DRAM industry? The DRAM industry is unattractive and will be increasingly unattractive for incumbents going forward. The average industry profitability has been going down over the years and most incumbents have left the industry or have been acquired after a string of heavy losses. Profit potential in the industry will increasingly be under pressure due to on‐going fierce industry rivalry as high fixed costs and excess capacity leads to price cutting and incumbents cannot shield themselves from price competition because product differentiation is difficult on standard products. Future investments in Fab capacity will disrupt industry supply and demand further and will ultimately lead to further price cutting which will put significant pressure on industry profitability. Incumbents will face further pressure from the rising relative bargaining power of suppliers who will pass on increasing R&D costs to incumbents. At the same time, entry barriers that have shield incumbents before from entry will be ineffective at stopping large scale entry from Chinese companies seeking a strategic foothold in the semiconductor industry and will use their large access to cheap financing and relatively cheap but skilled labour to seek a low cost competitive position which will depress prices further. Whilst there are few effective substitutes, developments in ‘hot’ areas such as flash memory are displacing DRAMS in selected...
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...| Samsung Case Study | | Proctor and Gamble Group | LG | Laine Norton Molly Gottschalk John Havlat Patrick Johnson Lucas Wright Xihui Yan | | Managerial Marketing GRBA 813 Dr. Saini September 24th, 2012 Corporate Turnaround Samsung Electronics Company has achieved a remarkable turnaround over the last two decades. Before the 1990s, Samsung was not highly regarded, and struggled with their brand identity and value. Samsung was known as a low cost Korean electronics brand that manufactured consumer VCRs and televisions. The entire company, as well as their products, did not compete well with industry leaders such as Sony for top-of-mind brand awareness. Several key actions instigated corporate and product improvements since this time. Beginning first with personnel, the Chairman of the company (Kun Hee Lee) started the first movement within that would ultimately lead to their current lucrative position. Lee determined, in 1993, that Samsung could reposition itself as a first-class electronics brand that could distribute products world-wide. Lee wanted to commit Samsung to long term goals and results and transform the company away from commodity based products, and instead produce luxury electronic items that would be highly innovative. At the time, electronic companies could venture into two different routes: software or hardware. The outlook for software development was very good in the 1990s, but Lee chose the route for developing...
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