Name of the Student: SUNIL GOWDAIAH

Student ID: S3825464

Course and Course Code: Master of Engineering (Management) - MC226
Course coordinator and Lecturer: Dr Lucy Lunevich
SUBJECT: Building Quality Organization and Leadership (MANU1373)

ASSIGNMENT 01 - STRATEGIC BUSINESS PLAN

Table Of Contents

1. INTRODUCTION OF ORGANIZATION……………………………….. 1
2. VISION………………………………………………………………….... 1
3. MISSION…………………………………………………………………. 1
4. COMPETITOR ANALYSIS - SWOT……………………………………. 2
4.1 Strength (S)................................................................................................................ 2
4.2 Weakness (W)............................................................................................................ 2
4.3 Opportunities (O)....................................................................................................... 2
4.4 Threats (T)................................................................................................................. 3
5. ORGANIZATION STRUCTURE………………………………………... 3
5.1 Division by Product form………………………………………………………….. 4
5.2 Unified Hierarchy of Business…………………………………………………….. 4
5.3 Geographical Integration…………………………………………………………... 5
6. STRATEGIC PRIORITIES………………………………………………. 5
6.1 Samsung Philosophy………………………………………………………………. 5
6.2 Market Penetration……………………………………………………………….... 6
6.3 Market Development………………………………………………………………. 6
6.4 Product Development…………………………………………………………….... 6
6.5 Diversification……………………………………………………………………... 6
7. INITIATIVES TO ACHIEVE STRATEGIC GOAL……………………... 7
8. DISCUSSION…………………………………………………………….. 7
9. CONCLUSION………………………………………………………….... 8
10.REFERENCES……………………………………………………………. 9
INTRODUCTION OF ORGANIZATION:

Samsung Electronics is a multinational South Korean corporation, founded in 1938 by Byung

Chull Lee, the organization used to export fish, vegetables, fruits and other food ingredients to
China. By 1951 Samsung started manufacturing some of the Cereals machines and Flour mills
and became a joint venture.The organization was engaged in various sectors, such as Financial
Services, Newspapers, Chemical Industry, and ShipBuilding till 1970.
In 1969, the manufacturing of televisions, cellular phones, radio, computer components and other
electronic devices was launched by Samsung Electronics. Now Samsung is the world's most
popular company and one of the leading companies in the mobile phone industry, Samsung
produces various electronic goods such as television, smartphones, computers, printers and
electronic goods such as air conditioning units, washing machines, refrigerators and many more.
By these Samsung has expanded its electronics market globally. (Panmore Institute, 2018)

VISION:

The priorities in the company's vision statement broadly relate to the Global Inspiration,
Creativity, Living Development and Potential Social Prosperity. The company's inspiring aspect
is to address local and regional consumer requirements and their expectations and then focus on
the technical standards that encourage customers to buy the product. Due to the highly
competitive market, where continuous innovation and development of new products is essential
to attract customers, specifically in the smartphone and computer segment, a strong creative
quality is required for corporate vision. Samsung's vision in the field of societal development
means that technological innovation and product enhancement add value to the life and
environment of the people. (Panmore Institute, 2018)

MISSION:

Samsung considers personnel group capital and innovation as the company's two principal
wealth which are used to achieve its Purpose and its objectives. This segment of the Mission
states that the organization should keep up better pay structures and corresponding staffing
management and growth systems to retain enough talent when operating against technological
firms such as Apple. By this mission segment, it also enhances the good Organisational culture.
In the superiority of the products, the company aims to deliver the technically stable products to
fulfill the consumer and in terms of improvement of global society It is proposed that
organization expand its talent pool and that is a crucial progress variable enabling the creativity

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required to produce and manufacture top quality consumer goods and Through relentless zeal
and a competitive desire, strong attempts are made to be the best in world throughout every
aspect. (Panmore Institute, 2018)

GOALS:

● To Produce the Products and give the best services for the satisfaction of the customer.
● Retain the 1st Position in the global market with the same line of business. (Samsung
electronics, 2018)

COMPETITOR ANALYSIS:

A company’s SWOT analysis is to specify the objectives of the project and to identify the
internal and external factors that are favorable and unfavorable to achieving those objectives.
where we can visualize and group the strengths, weaknesses and identify the potential threats and
opportunities and also provide insights of the company's strategic behavior.

STRENGTH:
Samsung is the most prominent fabricator of electronic devices in the world. It is the largest
television, smart phones, liquid crystal display panels and laptops manufacturer in the world.
Samsung has significant strengths in research and development. In less than a year, it launched a
mobile pay app called Samsung Pay, that has the same functions as Apple Pay. In replicating
much of the features from both Apple Inc.'s devices and Google Inc.'s Android smartphone
operating system, Samsung has found success. Samsung has large production and marketing
capacities.

WEAKNESS:
Samsung takes a long time because there is a huge product range. It is not possible to focus on
each product if there is a huge product range and Samsung requires its own operating system,
where its rival Apple Inc has its own Operating system, Even the quality of the Samsung is not
about the apples standard, Samsung does not provide all the apps alone it still relies on the third
party to support its product.

OPPORTUNITIES:
People have become more technology dependent and smartphones are perhaps the most
commonly used communication device in this era as a result of rising demand of smartphones
and also nowadays smartphones have become the close-alternative of computers. Samsung has

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been doing business for several years which has been able to retain a solid financial status on the
market as an outcome to which it will concentrate forward in the potential to grow further.

THREATS:
There are a huge number of rivals on the Electronics market and Samsung has a lot of
competitors including strong competitors like Apple, Lenovo and Xiaomi and these companies
have become the biggest threat because Chinese firms can manufacture products at a cheaper
price and can also supply high quality products, these brands are naturally adopted by people due
to its low cost. Samsung has a huge variety of goods but it also bears a high risk. When any
product harms the consumer, then that will damage the reputation of the brand and will harm
other goods. (PESTEL analysis, 2015)

Samsung's SWOT analysis has shown that despite its weakness it has many strengths and
tremendous opportunities along with business risks. When Samsung takes steps to ensure the
market better by improving efficiency, the company will be stronger and more resilient.

ORGANISATION STRUCTURE:

The organizational structure of Samsung is divisional, splitting the company into three main
divisions: IT & Mobile Communications (IM), Consumer Electronics (CE), and Device
Solutions (DS). The logic under the option of divisional organizational structure corresponds to
the broad range of Samsung's products and variations between the goods and services that the
company provides to the consumer. (Dudovskiy, 2016)

Fig 01. A Chart Representing the Samsung’s Organizational structure

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The organizational structure of the Samsung Group is established by Samsung Electronics Co.,
Ltd. and Subsidiary companies and divisions. In this internal review it is shown that the
technology corporation's organizational structure is implemented in its activities. Samsung
Electronics' organizational operational features are similar to those of the corporation. This
stability of the corporate set-up helps to optimise business processes, notably in retaining its
ambitious edge over other market threatening opponents like Apple, xiaomi, sony, google,
lenovo and others.

Samsung has a divisional corporate set-up indicative of the company. This method of structure
utilizes the classification of goods as a way of deciding which assets and business practices
belong to such divisions, like the organization's process management section. The complete
structure of the company is controlled by Samsung's head office located in Seoul. Project
management instructions from the head office are implemented by objectives related to the
operating divisions context, like the history of the U.S. electronics market. The organizational
structure of Samsung has the following principal characteristics:

1. Divisions by product form

2. Unified hierarchy of business
3. Geographical Integration

Division by product form: The key aspect of the hierarchy Samsung has is its commodity group
divisions. Each segment is a unit of services and activities representing a category of products,
Including the development of Customer technology services and activities, distribution, and sale.
The corporate structures emphasis on technological development and market success these
sections tends to achieve Samsung's business vision and mission declaration. The equipment firm
may introduce, merge or eliminate units in line with present business requirements and
administrative growth, acknowledging that further business divestment is possible.The products
category unit in Samsung's management are as noted below:

1. Consumer Electronics
2. Device Solutions
3. IT & Mobile Communications

Unified hierarchy of business: Despite its product-type divisions, Samsung's organizational

structure includes a centralized model. The company headquarters is the most prominent
example of this structure and is part of an organizational strategy to ensure that the activities of
the company are organized and efficiently oriented towards development and operational

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efficiency. This feature of the corporate structure includes centralizing overall strategic planning,
and also lateral command and authority lines that convey strategic directives from headquarters
to day-to-day activities in the department's Consumer Electronics, Computer Solutions and IT &
Mobile Communications.

Geographical Integration: Samsung makes use of regional clusters as a small aspect of its
organizational structure. Such regional segments are usually within the product-type divisions in
the organizational chart of the company. (Panmore Institute, 2019)

STRATEGIC PRIORITIES:

Business strategy is a mixture of policy planning and behavior that includes preparing and
executing such activities or objectives to attract consumers, achieve organizational objectives,
improve efficiency and effectively compete.

Samsung operates with the goal of introducing creative technology and delivering successful
services to people such that new opportunities are developed constantly and the digital world
continues to govern. Their basic ideology is to work according to five core values. Those are the
following:

● People: Samsung values in providing most of the tools and incentives they need to confer
their best on their customers.
● Excellence: It is ensured in every Samsung business that they deliver outstanding goods
and services to its buyers.
● Change: An organisation must invest in creativity and improvement for its growth.
Samsung believes in it too and emerges up with fresh and creative goods and services.
Therefore consumer desires and requests are understood and satisfied consistently.
● Integrity: Samsung ensures that ethics is practised at any point and thus stays loyal and
values its investors.
● Co-prosperity: Workers, subordinates and others must be given opportunities to thrive
for a successful sector. Samsung firmly believes in it by bringing everyone together and
pushing forward. They meet their social and environmental obligations as well as
becoming a good corporate citizen. (Samsung philosophy,2019)

The Strategies that are used for the development of the organization is as follows:

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MARKET PENETRATION:
Samsung is planning to expand in every sector the business operates with its current products.
Though market penetration seems to be the least vulnerable of all development techniques, as it
allows Samsung to leverage its proven capabilities and services. To increase its profit margins,
Samsung opts for market adoption. Samsung is launching its market expansion plan to raise its
global market share in rising markets. The company will follow aggressive advertising and
promotions, offering favourable rates to steal market share from its rivals. For example, a few
months before the launch of their new product, Samsung reduces the cost of its smartphones.This
enables Samsung to gain new buyers, raise its business share and at the meanwhile wind up its
current inventory before its next line of products is launched.

MARKET DEVELOPMENT:
The strategy for business growth includes Samsung expanding its current goods and services in
emerging consumer segments. Samsung has employed and continues to use a variety of
strategies to reach new markets, including forward exportation, licencing, shared corporation,
acquisition and collaborations, and investment in foriegn market. The business growth policy has
enabled the company to get an international existence also when Samsung establishes a
trademark and meets the expectations of the customer within a business, Samsung will find it
much easier to launch its future products and services under its brand.

PRODUCT DEVELOPMENT:
Samsung's approach for product growth has been instrumental in developing Samsung as a
differentiated international company. Samsung is developing advanced devices which address its
established categories and territories of market. Samsung uses a combination of enhancements to
its existing ones to launch a new model exclusively within its trademark.

DIVERSIFICATION:
Samsung's wide product range that includes clothing, automobiles, communications tools,
chemicals, customer goods, electrical products, medical devices, household electrical goods and
computer parts shows the intensity of diversification strategy used by samsung. Historically, in
finding a market with potential growth in various regions around the world, Samsung diversified
into various businesses. Because of Samsung's diversification approach, Samsung has a vast
range of products and services operating across the globe under the Samsung brand.

These fundamental principles have assisted them to achieve the present stage they are at.
Samsung Electronics' latest slogan says Inspire the World, Build The Future. It is the
transformation that they hope to see in the coming years, and they function with excellent

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approaches to achieve this dream. They claim that they will reach superior positions
internationally by integrating new technologies, innovative goods and creative approaches with
the promotion of new values: staff, business and partners. By spending $400 billion by 2020,
they plan to fall under the top five corporations in the world. As for wellness and biotechnology,
they do want to join new fields. It is certain that Samsung will truly become a visionary pioneer
in new markets with such a strategy and responsibilities. (Saxena and Saxena, 2018)

INITIATIVES TO ACHIEVE STRATEGIC GOALS (MANAGEMENT LEVEL)

The role of upper management in executing the Strategy will be most essential and crucial. They
are the main carrier of the company and should be completely committed to executing the
strategy. It would be difficult to execute without the encouragement and complete support of top
business leaders.
The second task will be that of middle managers planning and determining the strategies that are
to be used to execute the plan. They would serve as a link between senior management and
lower-workers and convey the reasoning behind modifications and their significance for the
company. Lower-level staff will be responsible for enforcing the transition and for designing
goods and services that would help the transition. Such workers will be responsible for
implementing the change instructions as they are and for achieving the targets satisfactorily.

Fig. 02 A Pyramid model of Management Levels and their responsibilities

DISCUSSION:

Considering the success factors of the 21st century organisation Samsung has involved various
aspects like Imagination and Flexibility where The creativity of the future developments and that
model should be adequately competitive to counter other technological products in the same

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industry, where the product should have a reliable and highly technical specification and the
target product must also be cost-effective and also the company should be flexible according to
the region. Similar to this point Samsung prioritizes more on the Research and Development
sector, which is the major strength of the company, where the various products with new design
and specification arise and enhances the future products with the best result and Relationship
with Employees The development of successful working relationships with workers is essential
for the development of an organisation. The nature of the relationship between workers and
employers impacts the morale, efficiency and ultimately the bottom line of each employee's
business. Although the optimal work environment for each worker can vary, the general
standards include a mutually respectful partnership. Then the relationship with the consumers
plays a crucial role in the growth of the business, to maintain a successful relationship between
the company and the consumer that business has to connect with the consumer and consider their
opinions in the services of the product and have to meet their needs in delivering the best product
output and customer satisfaction. (Dr Lucy Lunevich, RMIT Learning materials)

CONCLUSION:

Today the smartphone industry is crowded with similar technology providing goods. To change
the current scenario the industry needs an innovation. At present, Samsung is at the forefront of
companies which can be game changers and industry leaders of a new era of technological
development. To become the industry leader in new technologies Samsung needs to adopt a
different view that can drive the organization into the new market as the first entrant and gain
competitiveness. Even though the fast follow-up approach still serves the company well and may
even be part of the company's strategy and innovation, the business that owns several important
Research and Development patents will become a market leader if a successful, creative strategy
is implemented. We believe that 5 G will give Samsung the ability to become a global leader and
that Samsung will take the required and calculated risks if the company wishes to set the industry
standards instead of following the expectations of another business.the change instructions as
they are and for achieving the targets satisfactorily.

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REFERENCES:

1. Martin, v., 2018. Samsung’S Mission Statement & Vision Statement (An Analysis) -
Panmore Institute. [online] Panmore Institute. Available at:
<http://panmore.com/samsung-corporate-vision-statement-corporate-mission-statement-a
nalysis> [Accessed 28 March 2020].

2. Evans, L., 2019. Samsung’S Organizational Structure & Its Characteristics (An Analysis)
- Panmore Institute. [online] Panmore Institute. Available at:
<http://panmore.com/samsung-corporate-organizational-structure-characteristics-analysis
> [Accessed 28 March 2020].

3. Saxena, D. and Saxena, D., 2018. Ansoff Matrix – Samsung’S Journey From A Grocery
Store To Diversified Conglomerate - Super Heuristics. [online] Super Heuristics.
Available at: <https://www.superheuristics.com/ansoff-matrix-samsung/> [Accessed 27
March 2020].

4. Madhani, F., 2018. Samsung's Innovation Strategy. [online] Available at:

<https://www.researchgate.net/publication/319585333_Samsung's_Innovation_Strategy_i
n_Smart_Phones_Market> [Accessed 27 March 2020].

5. Dudovskiy, J., 2016. Samsung Organizational Structure: Divisional According To

Product Types - Research-Methodology. [online] Research-Methodology. Available at:
<https://research-methodology.net/samsung-organizational-structure-divisional-according
-product-types/> [Accessed 30 March 2020].

6. Samsung au. 2019. Philosophy Goals | Philosophy | Vision | Samsung Australia. [online]
Available at:
<https://www.samsung.com/au/aboutsamsung/vision/philosophy/philosophy-goals/>
[Accessed 28 March 2020]

7. Samsung latin_en. 2019. Samsung's Spirit | Philosophy | Vision | Samsung Singapore.

[online] Available at:
<https://www.samsung.com/latin_en/aboutsamsung/vision/philosophy/samsung-spirit/>
[Accessed 27 March 2020].

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8. Dr Lucy Luvenich., 2019. Successful factors for an organisation in 21st century, [learning
materials,RMIT University]
file:///C:/Users//Sunil/Downloads/BQO%20Presentation%20Lectue%201-3%20(2).pdf

9. Contributor, P., 2015. SWOT Analysis Of Samsung. [online] PESTLE Analysis.

Available at: <https://pestleanalysis.com/swot-analysis-of-samsung/> [Accessed 28
March 2020].

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