FAR EASTERN UNIVERSITY

Manila, Philippines

Assignment in:

ECON 1

Submitted By:

GALLOS, JUSTIN D.

School I.D. no.

2014652491
 Product: Samsung Digital Camera

Company Overview :

Samsung Electronics Co., Ltd stands today as the world’s second-largest technology

company that produces electronic devices. It is a South Korean conglomerate business.
Samsung was also titled as the number one in consumer electronics brand worldwide
and is recognized for its evolutionary advancements in digital technology. The company
is known to produce equipment that includes telecommunications, electronics, home
appliances, and semiconductors.

Initially being launched as an analog driven product line, it transitioned into a universally
acclaimed pioneer in technological innovation. The tech industry is currently the world’s
largest smartphone and mobile phone manufacturer. Currently, it sells over a hundred
products of different varieties and models. Its operational branches are present in
about 79 countries.

Company Name Samsung, Electronics co., Ltd

Founded January 13, 1969

Industries Served Consumer electronics

Telecoms equipment
Semiconductors
Home appliances

Geographic areas served Worldwide (79 countries)

Headquarters Suwon, Gyeonggi Province, South Korea

Current CEO Kinam Kim (Device Solutions)

Hyunsuk Kim (Consumer Electronics)
Dongjin Koh (IT and Mobile
Communications)

Revenue (US$) 211.812 billion (2017) 18.7% increase over

178.473 billion (2016)

Profit (US$) 37.298 billion (2017) 85.6% increase over

20.092 billion (2016)

Employees 308,745 (2017)

Parent Samsung Group

Main Competitors Apple Inc., Nokia OYJ, Intel Corporation,

LG Display and LG Electronics, Sony
Corporation, Texas Instruments Inc.,
Lenovo Group Limited, Hewlett-Packard
Company, Sanyo Electric Co., Ltd.,
Toshiba Corporation, SK Hynix Inc.,
Western Digital Corporation and many
other consumer electronics,
telecommunications equipment,
semiconductor and home appliance
companies.

1.) Assessment of the company’s composition of market structures and attitude

along with the following aspects: beliefs, feelings and behavioral intention.

Samsungs’s company culture (beliefs,feelings and behavioral intention)

Samsung’s corporate culture focuses on achieving a high degree of technological

innovation involving human resource development strategies. Samsung’s organizational
culture intersects with all areas of the conglomerate.

In relation, the corporation’s cultural characteristics affect business competitiveness

against Apple, Dell, LG, Google, Sony, Intel, Acer, and Lenovo. Samsung’s strategic
management and leadership efforts include considerations on how to wield the
corporate culture to improve the company’s competitive advantages.

Samsung Electronics Co.’s organizational culture is essentially the same as the

corporate culture of its parent company, the Samsung Group, considering that human
resources determine the outcomes of product innovation, strategic planning and
implementation, customer relationship management, and other business aspects. The
corporate culture’s influence relates to the brand image and customer relations
observable in Samsung’s marketing mix (4Ps) strategies and tactics.

Samsung has an innovation-centered organizational culture. This corporate culture is

part of an organizational design that emphasizes employees’ knowledge, skills, and
abilities for innovating the company’s technology products, such as smartphones and
laptops. In this regard, the organizational cultural characteristics support Samsung’s
corporate mission and vision statements, which focus on superior products that improve
life and society. Thus, this corporate culture embodies the long-term strategic objectives
for keeping the company’s competitive position as one of the dominant firms in the
multinational markets for semiconductors, consumer electronics, and related
technologies. Based on the enterprise’s core values, the following are the main
characteristics of Samsung’s organizational culture:

Development of opportunities for all employees

Human resource development is understandably an underlying strategic objective linked
to Samsung’s corporate culture. For example, the company ensures career
development opportunities not just through institutionalized programs, but also by
encouraging employees to support each other toward achieving their career goals within
the technology business organization.

Passion for excellence

Samsung’s organizational culture motivates workers to achieve excellence in their job
performance. The corporation directs human resource attention toward organizational
development and maintaining a brand image of excellence and technological
superiority. This cultural characteristic helps in the implementation of Samsung’s
generic strategy and intensive growth strategies for expanding the business
organization through innovative consumer electronics and semiconductors.

Constant change
Through its corporate culture, Samsung facilitates change that benefits the business.
This characteristic of the organizational culture puts innovation at the center, based on
the recognition that change is essential when it comes to technological innovation. For
example, Samsung’s employees embody values, beliefs, and a philosophy that change
is necessary to improve the company’s consumer electronics and related products and
ensure long-term competitive advantage against other firms, such as Apple, which also
embrace the need for change in goals for innovation.

Ethical foundation for integrity

Ethics and related concerns are integrated into Samsung’s corporate culture. The
corporation’s leaders understand that ethics in business operations help minimize
problems and optimize the technology firm’s brand image and competitiveness. Based
on Samsung’s ethical standards, the organizational culture promotes fairness, respect,
and transparency, which are in the major business ethics trends observable in the
global market. In supporting innovation-centeredness, this cultural characteristic guides
decisions to ensure that ethical frameworks are considered, leading to outcomes that
satisfy the company’s strategic objectives, while also optimizing corporate image and
the related satisfaction of stakeholders.
Emphasis on prosperity for all
Samsung extends its corporate culture’s influence beyond its organization and
workforce. The corporation develops its human resources to support the technology
business and to help communities and other stakeholders. For example, the company’s
organizational culture motivates its workers to engage corporate citizenship programs
that give career opportunities for others and solve communities’ problems via
technology. 

2.) Participation of consumers in making purchase decision. Diverse the

issues about the degree to which the company is vertically integrated and
the extent of product differentiation

The power of each important buyer group depends on a number of characteristics of its
market situation and on the relative importance of its sales or purchases to the industry
compared with its overall business.

A buyer group is powerful if:

It is concentrated or purchases in large volumes. Large volume buyers are particularly

potent forces if heavy fixed costs characterize the industry—as they do in metal
containers, corn refining, and bulk chemicals, for example—which raise the stakes to
keep capacity filled.

The products it purchases from the industry form a component of its product and
represent a significant fraction of its cost. The buyers are likely to shop for a favorable
price and purchase selectively. Where the product sold by the industry in question is a
small fraction of buyers’ costs, buyers are usually much less price sensitive.

It earns low profits, which create great incentive to lower its purchasing costs. Highly
profitable buyers, however, are generally less price sensitive (that is, of course, if the
item does not represent a large fraction of their costs).

The industry’s product is unimportant to the quality of the buyers’ products or services.
Where the quality of the buyers’ products is very much affected by the industry’s
product, buyers are generally less price sensitive. Industries in which this situation
obtains include oil field equipment, where a malfunction can lead to large losses, and
enclosures for electronic medical and test instruments, where the quality of the
enclosure can influence the user’s impression about the quality of the equipment inside.
The buyers pose a credible threat of integrating backward to make the industry’s
product. The Big Three auto producers and major buyers of cars have often used the
threat of self-manufacture as a bargaining lever. But sometimes an industry engenders
a threat to buyers that its members may integrate forward.

Most of these sources of buyer power can be attributed to consumers as a group as

well as to industrial and commercial buyers; only a modification of the frame of
reference is necessary. Consumers tend to be more price sensitive if they are
purchasing products that are undifferentiated, expensive relative to their incomes, and
of a sort where quality is not particularly important.

The buying power of retailers is determined by the same rules, with one important
addition. Retailers can gain significant bargaining power over manufacturers when they
can influence consumers’ purchasing decisions, as they do in audio components,
jewelry, appliances, sporting goods, and other goods.

A company’s choice of suppliers to buy from or buyer groups to sell to should be viewed
as a crucial strategic decision. A company can improve its strategic posture by finding
suppliers or buyers who possess the least power to influence it adversely.

Most common is the situation of a company being able to choose whom it will sell to—in
other words, buyer selection. Rarely do all the buyer groups a company sells to enjoy
equal power. Even if a company sells to a single industry, segments usually exist within
that industry that exercise less power (and that are therefore less price sensitive) than
others. For example, the replacement market for most products is less price sensitive
than the overall market.

Comparison of costs, Huawei ,

Iphone, Samsung Galaxy
3.) Presentation and discussion of types of cost (Fixed cost, Variable cost,
Marginal Vost, Short-run costs, Long-run costs), and considered the company’s
satisfaction based on its market structures.
4.) Conclusion

From a business operations and strategic management perspective, Samsung’s

organizational culture has the advantage of supporting long-term strategic goals
involving technological innovation, which is a factor in the company’s
competitiveness in the consumer electronics, semiconductors, and mobile
communications markets. Another advantage of the corporate culture is its
influence on career development and related human resource management
programs, which directly affect the technology conglomerate’s financial
performance.

Recommendation
Samsung’s organizational culture brings strategic management challenges in
achieving culture-based objectives. For example, the corporate culture’s ethics
aspect requires effective monitoring and control to determine human resource
inadequacies in this regard. Also, Samsung faces the challenge of ensuring
prosperity for all and opportunity for all employees. In maintaining its
organizational culture, the technology conglomerate may encounter barriers to
developing a work environment where all employees’ career development goals
are considered in an equitable manner.

5.) References

http://panmore.com/samsung-organizational-culture-corporate-cultural-
characteristics-analysis

http://www.ijstm.com/images/short_pdf/1484811690_D535ijstm.pdf

http://www.iosrjournals.org/iosr-jbm/papers/ncibppte-volume-4/26.pdf
https://www.astrogrowth.com/blog/samsung-mission-statement/
https://bstrategyhub.com/swot-analysis-of-samsung-2019-samsung-swot-
analysis/ https://strategicmanagementinsight.com/swot-analyses/samsung-swot-
analysis.html

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