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Final Assignment
Course subject: Operation Management
Course code: MGT517
Topic Name: Samsung Company’s Production
Submitted To:
Engr. Sajjadul Mawla
Submitted by:
Tahmina Akter Tamanna
ID: 2021010001002
SEC: 2
PHONE NO: 01833559528
EMAIL ID:tamannashorder@gmail.com
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Operation Management

Report

October 11 2021
Tahmina Akter
2021010001002@gmail.com
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Table of Content
SL Topic details Page No:
1 An executive summary 04
2 Introduction, mission, vision 04
3 Core value, 04
4 Value of Samsung, Development, company structures 05
5 Mobile external Environmental Analysis 06
6 Pest Analysis 06
7 Political factor 06
8 Economical factories 07
9 Social Cultural factories 07
10 Technological factories 07
11 Human Resources Management (HRM) 07
12 Operation management discussion areas 08
13 Quality 08
14 Operation strategy 10
15 Improving operational performance at Samsung 10
Suggestion
16 The corporate strategy 11
17 Business strategy 13
18 Problems 14
19 Solutions 15
20 References 16
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Samsung Company
An executive summary
Executive Summary of Samsung company Samsung is a company that have been progressively been
growing throughout the years. Nowadays Samsung is well known as the most innovative, quality brands
in the electronic industry. Samsung company go all out to be maintainable and achieve competitive
advantage by been one of the best in the digital market. Samsung have globally competitive business
environment; electronics companies are under intense pressure to provide inventive products in a truly
short time with reduced cost and with improved quality. The five latest technologies used by Samsung's
are Smart TV, Camera, Smart Phones, Tablets and Samsung Gear Series which are like watches.

Introduction
Samsung Mobile is positioned as one of the best mobile phone manufacturers successfully. It is
developing quickly and wins a great amount of market share in mobile industry. The business philosophy
Samsung follows is to devote all the talents and technologies to create superior products and services that
make the society better in a global range (Samsung n.d. Values Philosophy). This report will firstly take a
brief look at Samsung by viewing the company’s development history, corporate structure and what
international strategy it is now undertaken. Then strategic tools are going to be used to deeply analyzing
both the company’s internal and external environment. Key drivers of the mobile industry will be
identified and how they interact to Samsung’s international strategy will also be explained in this report.
Finally, historical examples will be provided to support the findings above.

Mission
Samsung's mission statement is “We will devote our human resources and technology to create superior
products and services, thereby contributing to a better global society.” The statement puts all its emphasis
on the superiority associated with the products it brings to its customers.

Vision
Samsung’s vision statement is “to inspire the world with our innovative technologies, products, and
design that enrich people’s lives and contribute to social prosperity by creating a new future.
Core Values
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Samsung core values include “people, excellence, change, integrity, and co-prosperity.” Samsung has an
extraordinarily rich culture in all its facilities across the globe, and all of them display similar and
comparable practices. This element is because they all operate under the same values as discussed.
At the heart of this company is everyone who directly and indirectly relates to Samsung, and the company
highly respects them and calls for everyone to do so too. One of the ways to do so is by maintaining top-
quality performance at all levels and in all activities while looking to stimulate a positive change all the
time. Samsung states that, while delivering is important, honor must precede everything else. Most
importantly, Samsung promotes settings and practices that evenly distributes benefits such that no single
entity benefits on its own. Instead, everyone gets a piece of the cake, ensuring prosperity across the board,
including its employees, clients, and other bodies.
Overview of Samsung
Development of Samsung
Samsung Electronics was founded as affiliated corporation in Korea in 1969 for the purpose of promoting
growth for the Samsung Group (Samsung n.d. History). When Samsung decided to start mobile phone
business, this move was considered thoughtless by industry observers. However, entering mobile phone
business helps Samsung own a lot of profit and obtain high reputation, and finally achieve a remarkable
success in global market. About 320 million people are hired by the corporation in more than 84
countries.
Company structure
Samsung organizational structure is divisional and the company is divided into three key divisions: IT &
Mobile Communications (IM), Consumer Electronics (CE), and Device Solutions (DS). The rationale
behind the choice of divisional organizational structure relates to Samsung’s large product portfolio and
differences between products and services the company offers to the market.
Accordingly, Samsung’s each division is managed separately taking into account the characteristics of
their products that have implications on new product development, marketing, selling and other aspects of
the business. Moreover, Samsung Electronics has more than 200 subsidiaries around the world.
Figure below illustrates Samsung organizational structure:
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Samsung mobile external environment analysis

When formulating an international business strategy, Samsung should take external environmental factors
into consideration. There are various theoretical tools that help analyzing the external environment, such
as PEST analysis, five forces analysis and external factor evaluation matrix. Due to the lack of internal
resources, external factor evaluation matrix cannot be applied to exam the company.

PEST Analysis
None of the enterprises can prevent itself from the impact of the macro environment, thus knowing how
the environment will change seems to be vital. There are a great number of factors that can influence the
company; therefore, it would be impossible to identify all the factors and the extent they affect. PEST
analysis is used to explore external macro environment independent of the firm’s size, including political
environment, economic environment, social-cultural environment, and technological environment;
however, they are also composed of distinct aspects respectively as the graph shows below (CIPD 2011)
POLITICAL FACTORS
Political stability should be taken into consideration if the company wants to sustain long-term
development. Recently, the strained relationships between North and South Korea may result in war
breaking out in the Korean Peninsula. The future of China is uncertain from political and economic
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perspective. Moreover, there are rising tensions in Russia, Middle East and Brazil. Instabilities in
African and Latin American countries which lead to frequent changing governing structures also put
pressure on Samsung. In addition, political

laws and regulations established by governments should be taken into concern as companies must follow
those rules. A higher tax rate, an increase in minimum wage, and stricter environmental standard and
would lead to an adverse impact on the company, increasing its cost and decreasing profitability.
ECONOMIC FACTORS
Economic factors are critical in formulating business strategy since growth of economy, inflation rate,
standard of consumption, and undergoing economic cycle significantly affect the company’s profitability.
Appreciation in Won reduced profits by 25% in the second quarter (New Economy 2014). Financial crisis
in 2007 affect the company’s profit significantly from 2.07 to 1.02 trillion won (Dudovskiy 2015). The
global economic rescission is still ongoing, which will have an adverse impact on consumer purchasing
power as consumers are reluctant to buy products. British exit from European Union leads to a quick
depreciation in Great Britain Pound. The uncertainties of currency values arise which increase the price of
gold. Because of the dramatic decrease in the crude oil prices, there will be an increase in US interest
rates which leads to a higher investment cost. Thus, expanding into the emerging and developing markets
may help the company increase profitability and retrieve a loss from the mature and developed markets.
SOCIAL-CULTURAL FACTORS
Social-cultural factors are demographic and cultural aspects of the external environment, including
beliefs, habits, life-style, and status that may changing customer needs. Finding these factors implies size
of potential market is predictable. Nowadays, almost everyone has a mobile phone, using it to
communicate, find information, and have fun. Also, trend of sharing via social applications boosts the
consumption of mobile phone produced by Samsung. The company should identify ways to adapts itself
to various markets where it launches branches by tailoring products that can fulfill customers’ fast
changing preferences. Samsung should behave in a local way to get itself used to the emerging market.
TECHNOLOGICAL FACTORS
Technological factors can be regarded as the key force in mobile industry (Kim 2002). It is composed of
manufacture and infrastructure. Technological advances include automation, quality improvements,
incentives, cost saving and outsourcing (FreeManagementBooks n.d.). A mobile manufacturer has to keep
up with the technical advances otherwise it will be soon left behind and leave opportunities for other
competitors. Nokia would be a good example that is too slow to embrace smartphone technologies
(FreeManagementBooks n.d.). In order to maintain the market share, companies need to follow and
monitor the latest technology, seizing any opportunities available. To support the technical development,
investment should be made to buy the equipment and hire top-talents. Using patents and licensing is a
vital strategy to protect the company’s achievement as well.

Human Resources Management (HRM)

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Samsung’s approach toward HRM has been quite positive since the conception of the firm. The
organization started with the strategy that openly acknowledged the company’s willingness to diversify its
team and cater to the requirements of multicultural representatives thereof (Rani et al., 2016; Johnston et
al. 2012).

For example, the Human Tech Prise that the company established in 2015 signifies that Samsung is ready
to attract talented employees to help them explore their potential within the environment of the
organization (University of Texas 2015). By creating a Talent management tool that encourages the
staff’s professional growth actively, Samsung has reached the pinnacle of talent management by spurring
the professional growth among its potential employees.
At the same time, the organization's leaders should pay closer attention to the actual implementation of
the principles that they promote. It could be suggested that the organization should enhance its corporate
values along with establishing tighter control over managers’ decision-making (Kim & Bae 2017;
Greasley 2013). Thus, the issues associated with managers overstepping the boundaries of the workplace
ethics and causing disruption in the organizational setting can be avoided.

Supply Chain Management

Of all the elements of Samsung’s OM, the SCM deserves a special mentioning as the company’s
crowning achievement. The unique design based on five criteria that Samsung has distilled for the control
of its SCM processes has provided the foundation for an outstanding performance. Particularly, Samsung
has devised the framework within which five key components are analyzed; these include cost
competitiveness, timely delivery of the end product, supplier competitiveness, adequate response to
market risks and human resource capacity.
The efficacy of the SCM strategy used at Samsung depends heavily on the use of green technologies and
the concept of data sharing (Singla 2016). As a result, the performance of Samsung’s SC remains
environmentally friendly and delivers the best results possible, keeping
the company aware of the slightest changes within the market. Similarly, the described approach allows
the firm to respond to the changing demand within the global market.

Operation Management (OM) Decision Areas

Samsung’s
Quality
Samsung is one of the brands that have cemented their image in the modern culture. Samsung

continuously improves productivity by controlling variations in various processes in a stable way.

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Continuous improvement is implemented by a closed loop methodology consisting of a selection of

critical parameters, evaluation of the measurement system, monitoring of critical parameters, process

capability improvement, and reaction plan Examining the global operation management (GOM) of the

organization, one must give credit to its approach toward quality management (Slack, 2012). The

company views sustainability as one of the cornerstones of its WM strategy, which defines the further

choice of QM approaches, including lean manufacturing and the total quality management (TQM)

framework (Huang 2016). By incorporating innovative solutions into its QM processes, Samsung has

managed to retain its customers’ loyalty despite several issues with the recent products provided by the

organization.

The company has been exploring new methods of maintaining quality at high rates. For example, (the

integration of the 8-Point Battery Safety Check framework has allowed Samsung to avoid defects at the

assembly stage of the production process) Samsung has the world's best QMS based on international

standards such as ISO 9001 and IATF 16949, and is continuously evolving to meet our customer

requirements. Samsung manufacturing domestic and overseas sites have acquired the ISO 9001

certification.

Certification history

-1993 ISO 9001 for semiconductor plants in Korea

-1999 ISO 9002 for semiconductor plants in Austin, Texas and Suzhou, China

-1999 QS 9000 for System LSI plants in Korea

-2001 TL 9000 for semiconductor plants in Korea

-2002 QS 9000 for memory plants in Korea

-2004 ISO/TS 16949 for semiconductor plants in Korea -> Substituted TS16949 for QS9000
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-2005 ISO/TS 16949 for semiconductor plants in Suzhou, China

-2008 ISO/TS 16949 for semiconductor plants in Austin, Texas

-2014 ISO 9001 for semiconductor plants in Xian, China

-2018 IATF 16949 for semiconductor plants in Korea and in Austin, Texas

ISO9001 for design and development of S.LSI semiconductor products

-2019 IATF16949 for semiconductor plant in Xian, China

Operation strategy :The goal of operational management of the company Samsung is to earn
more money, and objectives are cost, quality, delivery, flexibility and customer satisfaction. ... In 2007,

Samsung electronics becoming the second largest mobile phone factory in the world.

Improving Operational Performance at Samsung: Suggestions

Although Samsung has been performing quite well, it still needs a boost in order to keep competitive

in the market that is driven by innovations. Enhancing the company’s operational performance will

become possible once Samsung revisits its current approach toward HRM. The specified decision

might seem weird given the excellent talent management framework, yet the control issue needs to be

handled appropriately (Pinto 2016).In addition, the R&D processes could be enhanced so that

Samsung could produce innovative ideas. Meeting new demands in the digital market means

researching the current trends and setting the platform for innovations is critical for Samsung at

present since rivals such as Nokia pose a threat to Samsung’s success. Therefore, the organization

will have to develop new products that will help it keep the attention of the target audiences on its

products (Huang 2016; Heizer et al. 2017; Fitzsimmons, Fitzsimmons & Bordoloi 2014). In addition,
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it will be reasonable for Samsung to consider producing business equipment for other organizations

and stake several niches in the digital market.

Finally, the OM processes at Samsung can be enhanced by studying the opportunities that the digital

market offers. Although Samsung has already integrated most of its services into the digital realm,

some of the e-marketing opportunities have not been considered.

For example, the tools for enhancing data management across the SC should be treated as an

important addition to the company’s current range of instruments.

Thus, Samsung will be able to monitor and forecast trends in demands for smartphones and other

devices produced by the organization.

The integration of the proposed techniques will help Samsung to expand its influence and attract the

attention of new audiences through improved quality management and product diversity. By

forecasting the trends within the target market successfully, the organization will increase its sales

significantly and become the leader in the global market. While the recent development of new

smartphone models should not be abandoned, Samsung may need to consider taking a unique niche

that will help it grow and gain the attention of other organizations.

The corporate strategy

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Samsung employed an unusual strategy of simultaneous cooperation and competition among its various
business units. This strategy depended on strong leadership from the top, and now Samsung doesn't seem
to have the leadership it needs to continue the strategy.
Samsung is facing its biggest crisis in decades. Last month, as it was working to regain customer

trust after last year’s problem with exploding smartphone batteries, the company’s de facto leader,

Lee Jae-Yong, was arrested on bribery charges.

28/02/2017, Samsung announced an organizational change that is likely to have a far-reaching

impact: It’s shuttering the Corporate Strategy Office, the company’s nerve center.

Samsung employed an unusual strategy of simultaneous cooperation and competition among its various

business units. This strategy depended on strong leadership from the top, and now Samsung doesn’t seem

to have the leadership it needs to continue the strategy.

And that’s a problem for Samsung because the company’s profitable smartphone business is facing fierce

competition from cut-rate Chinese rivals. The company needs a unified strategy to address this threat.

And with a highly distracted leader and no Corporate Strategy Office, executing such a strategy will be

difficult.

The Corporate Strategy Office was key to Samsung’s success:

⮚ Big conglomerates often face a choice between using internal and external suppliers. Suppose, for

example, that Acme Corp. is building a cell phone and has to decide whether to use a screen

created by Acme’s screen division or by an external supplier.

⮚ “They must be prepared to lose out to external suppliers if they are not competitive in quality,

price, or time to delivery.”

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⮚ Employees at the most successful divisions got bonuses that represented as much as 50 percent of

their base salaries. Conversely, Samsung had a policy that “any business that incurred losses for

three straight years (excluding new businesses) should be sold or liquidated,” Song and his

colleagues wrote.

⮚ “Senior managers in the finance and human resource management departments of affiliates check

counterproductive behavior of senior executives,” Song and his co-authors write. “Most of those

managers have work experience at the Corporate Strategy Office and maintain strong ties to the

Office. Those managers directly report the counterproductive competitive behaviors of their senior

executive to the Office.”

⮚ This approach only works if there’s a universally respected — or at least feared — figure at the

top of the corporate hierarchy. Without it, the Corporate Strategy Office could simply become

another battleground for infighting among Samsung’s many divisions.

And without a strong leader at the top, the value of Samsung’s Corporate Strategy Office is greatly

diminished, so Samsung has decided to close it.

Business strategy

Samsung Electronics wants to produce a future that is promising and join the different countries people

together through technology. Moreover, the Samsung objective of 2020 is to achieve annual sales of USD

400 billion and develop brand value of Samsung Electronics among the top five in the world.

Samsung business strategy consists of the following three pillars/elements/parts:

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1. Effective market readership. A market reader can be defined as a company that closely observes

the market and is fast in replicating new products and/or introducing new features in existing

products, initially introduced by other companies.

2. Scanning and utilizing opportunities in the market. Samsung business strategy integrates

constant search for gaps in the market and exploits the opportunity with positive implications on the

bottom line for the business. For example, Samsung noticed that Asian-language speakers in

particular wanted a device that they could hand-write on, because drawing characters is easier with a

pen.

3. New product development. Samsung Electronics has an extensive product range that includes

hundreds of product types and is arranged along three product divisions: IT & Mobile Communications

(IM), Consumer Electronics (CE), and Device Solutions (DS).

Problems

1. Samsung’s Biggest Problem? Its Phones Can’t Be Fixed: There’s plenty of reason to blame

Samsung for its Note 7 debacle. It rushed the phone to market. It didn’t subject the batteries to

independent testing, as its competitors routinely do. It was slow to acknowledge the scale of the

problem. And it failed to properly coordinate its response with regulators. Oh, and it created a

product that can no longer be easily repaired or refurbished.

2. High Battery Drainage problem in Samsung Mobiles: If your battery is draining at an abnormal pace,

this doesn’t mean bad battery health. There might be some other reasons, which you can easily get control

over, to obtain a good battery life throughout the day.

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3. Screen Gets Stuck & Unresponsive in Samsung Mobile; Your phone might be stuck during normal usage,

and the screen may become unresponsive despite touching the panel. The possibilities are that this relates

to the cache of your phone.

4. Overheating issue in Samsung Mobile Overheating is something that relates directly to the battery of your

phone. An old or weak battery might be a troublemaker. However, the surrounding temperature also has a

notable impact on your phone’s heating level. You must have noticed an unusual heating-up of your phone

during summers. Another possible reason is charging. Your phone gets heated up and abnormal levels

when you are charging and using it simultaneously.

5. Apps Not Downloading from Google Play Store in Samsung phone: People complain about apps not

downloading at all from the Google Play Store. Either the downloading gets stuck, or it doesn’t start at all.

Most of the android users face this issue, but the majority of them are Samsung users. It’s not something

to worry about. You need to make some little changes in your Google Play Store Settings.

Solution

1. Water :

First, make sure your device is out of the water, then immediately remove your phone battery

from your device. This is because electronics do not particularly work well with water due to its

basic components. After taking the battery out, clean your device and put it in a dry place for 24

hours. After this time period, you can restart your device and it should return to its normal

function, if it does not, you may need to contact a Samsung Repair Center to get it back on track.

2. Battery:

● Turn off connectivity options like GPS, Wi-Fi and Bluetooth.

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● Use the phone optimizer to clean your phone apps.

● Turn on your device’s power saving mode.
● Reduce your device’s screen brightness.
● Turn off the Always on Display.
● Remove Live Wallpapers.

These tips should help you improve your smartphone’s battery life.

3. Overheating:

Try to keep your device in a place with a normal temperature (between 20 to 30 degrees Celsius).

● Avoid exposing your device directly to sunlight for extended periods.

● Do not use your phone while its charging.

● Ensure you turn off your mobile data (4G) when not in use.

● If none of the tips above work for your Galaxy smartphone, it may just be the time to replace the old

battery with a new one.

4. Wi-Fi Connectivity Issues: If you ever experience this problem, you can try restarting your device or you

can put your smartphone on Airplane mode for a couple of seconds and then check out your Wi-Fi

connection again.

5. Cracked or Disfigured Screen:

● Try taping the cracked part of the screen. This will help you extend its lifespan till you get a replacement

screen.

● Try a screen protector. Screen protectors are increasingly becoming popular and getting one will save you
a world of heartache and keep your Samsung Galaxy’s display cracks from spreading.
● Try checking your warranty to see if you can still get a replacement from your point of purchase.

If all these steps above are not effective, then you can visit a Samsung Repair Center to fix that screen before it
gets worse.

Conclusion:
From the above discussion, it can be concluded that clear objective, mission and goals policy as well as a
high ability to adopt the technology of Samsung helps it to maintain its competitive position in the
worldwide market.
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Reference
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UK: Routledge.
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Chang, S. (2011). Sony vs Samsung: The Inside Story of the Electronics Giants' Battle for Global
Supremacy. USA: John Wiley & Sons.
Hall, D. (2007). Business Studies. SA: Pearson Education.
Kelly, J.F. (2011). Sam's Teach Yourself Samsung GALAXY Tab in 10 Minutes. USA: Pearson
Education.
Krishnamacharya, C.S.G. (2011). Rural Marketing: Text and Cases. SA: Pearson Education.
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Singapore: John Wiley & Sons.
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GRIN Verlag.
SAMSUNG. (2014). About Samsung. Retrieved from: http://www.samsung.com/in/aboutsamsung/
SAMSUNG. (2014). Vision 2020. Retrieved from:
http://www.samsung.com/in/aboutsamsung/samsungelectronics/vision2020.html

.
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