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Samsung Mobile Devices: Final Strategic Plan Darryn Urueta University of Phoenix
BUS 475 Patricia Hudson March 22, 2011
Samsung Mobile Devices: Samsung Mobile Devices: Final Strategic Plan This paper will reflect a descriptive strategic plan for Samsung Mobile Services, which will include implementation of strategies and tactics that will assist the company in attaining its
business goals and objectives. Additionally, this paper will explain three methods to monitor and control the proposed strategic plan and recommend actions necessary to address ethical, legal and regulatory issues faced by the Samsung Corporation. Business Structure of Samsung Mobile Services: y Industry: Digital Mobile Communication --- Specialization: Consumer Electronics y Product: A myriad of mobile phones to include Smartphones and touch screen input devices y Customers: Tech savvy and not so tech savvy consumers who are active and need the means to communicate while on the go. The creation of mission and vision statements is key elements that comprise the strategic planning model for any business. Strategic management is defined as the set of decisions and actions that result in the formulation and implementation of plans designed to achieve a company¶s objectives (Pearce & Robinson, 2009). Whether the endeavor is to establish a new business or re-engineering the direction for an existing company, the basic goals and fundamental philosophies must be developed in order to assume a strategic bearing. Subsequently, the issues at hand must be clearly defined as strategic matters so as not to expend energy on the wrong path. This paper will further discuss the guiding principles by which the mission and vision statements work congruently to unify the values and objectives of the company.
it¶s all about knowing who the customers are. foresee. Samsung provides products to enrich lives. . enjoins all stakeholders towards the pursuit of profit. while broad in scope. during and after the sale. to the Galaxy Tab. From smartphones with the all new Android 2. Samsung gives you options for today¶s fast paced lifestyle. At Samsung. success and longevity. Contributing to society at large by being a responsible global citizen. A mission statement. Offering multifaceted products that span ethnic and social boundaries. This encompasses a study of buyer requirements and consumer desires.Samsung Mobile Devices: Mission Statement The purpose of a mission statement for a business is to endorse the principle of the company by articulating the objectives of the business that corresponds with the product or service offered in the market place and the ultimate characteristics of the company that distinguishes it from the competition. Samsung mobile devices are designed to adapt to the consumer. enabling video chat coupled with the ability to capture and share photos simultaneously. and react to those needs. The Galaxy Tab features two web cameras. Samsung mobiles devices combine cutting edge technology with innovative features to help customers do much more than simply talk on the phone. a multi-media powerhouse. The Samsung Corporation will become a global leader in the digital age. The mission statement classifies what type of marketplace a company will enter. SWYPE® technology allows the user to quickly compose text messages while on the go. It should state the social and or political requirements that are needed to exist and identify how the organization will recognize. affording a rich media experience while remaining easy to use. before. Samsung will create 3 products and approach business that effectively contributes to a better world. Samsung will do this by tireless devotion to customer support.2 operating system. what they want and earning their trust.
To assist in this goal. the company has established three strategic approaches: ³Creativity. 2. everyone will be challenged to add value to the work they perform. management or basic work function. Samsung looks to expand beyond the consumer electronics market and into the fields of medicine and biotechnology. The Samsung Corporation believes that rigorous adherence to values are at the core of every decision that is made.´ Samsung¶s plan is to reach $400 billion in revenue and become one of the world¶s top five brands by 2020 (Samsung. 2011). There will be equality in the workplace. The company holds true that: 1.´ and ³Talent.Samsung Mobile Devices: Vision Statement The vision statement of a business is just that. Each person operates from a unique set of core values and as such the company strives to ensure these values are understood and respected to the fullest extent.´ ³Innovative Products. It details how the company plans to grow and expand. goals. Guiding Principles The guiding principles of an organization are deeply held beliefs which serve to help the company persevere regardless of changing circumstances. ³New Technology.´ ³Partnership.´ The vision promotes the leveraging of three key elements. In a sense they are norms integral to defining what is most desirable in the course of daily work. While balance sheets . 3. where the company sees itself in 4 the future.´ and ³Creative Solutions. An effective vision statement is one that broadens an organization¶s image of itself. Employees are the most important asset of the company. Although different jobs require equally different descriptions. The Samsung vision is ³Inspire the World.´ Additionally. Create the Future. The vision statement should be dynamically worded to engage and motivate the employees of an organization to be a part of something bigger than themselves.
caring for the environment and acting as socially responsible corporate citizens. 4. The job of managers is to develop and coach all employees without regard to skill level or competence. 6. Samsung has created a Quality Charter that exhibits the commitment to world class customer care. stay true to the basics. The devotion to talent and technology is exemplified by creating superior products and services that contribute to a better global society. Through multiple viewpoints and personal experiences an organization endeavors to achieve the richest potential. respect for customer. generational differences. Samsung utilizes the tenets of compliance with ethical standards. so too do its employees. Diversity is not only welcomed. Company operations are to be shared with employees. backgrounds. vision and values of the Samsung Corporation influence the strategic planning that affects innovative thinking and collaboration among all levels. be customer centric. experiences. Our managers will empower the employees and positive reinforcement when applicable. 5. Samsung employees will be able to contribute and make appropriate decisions having been given the relevant operational information. the other facet of the equation is the customer. However. The human capital of a company is the driving force behind success or failure. shareholders and employees. The charter comprises a pledge to do five things. demonstrate . Samsung advocates genuine appreciation for and integration of the vast variety of skills. In this way.Samsung Mobile Devices: 5 and annual reports reflect an organization¶s health. maintaining a clean organizational culture. The mission. but encouraged. Our management is the most powerful agent for good in the organization. and beliefs that diverse employees bring to the workplace. To further guide the company. Samsung values the employees that make up the company by recognizing them as the most important asset.
Samsung Mobile Devices: professionalism. economic environment. In an effort to capture all of the pertinent data necessary to make informed and educated choices in a business environment. The external factors that Samsung must take into account in terms of trends are legal and regulatory issues. All of these factors serve to either guide or derail the business depending on how they are examined and positioned. Another feature of this tool is the ability to give a business the 30. weaknesses. The Internal Revenue Service (IRS) will gladly remind individuals and businesses of their fiscal obligations. provide quality workmanship and create customers for life. soil.S. Samsung uses this analysis with the express purpose of identifying the internal and external variables within the existing business as well as the outside competition. Samsung has invested in quality management system upgrades. a SWOTT analysis is a vital piece of the puzzle. strengthening specialized skills at contact points and standardizing a global customer response system. An effective strategic planning model encompasses many unique tools. In short. Business taxation is important in that a business must keep abreast of legal and regulatory laws. opportunities. This can become increasing difficult if they business is of foreign origin operating on U.000 foot view of the current operation 6 in order to generate strategic alternatives. the competition and technological advances. The business . however it is the responsibility of the business stakeholders to ensure they are in compliance with all applicable federal regulations. These help to give Samsung a competitive advantage in the mobile device industry. the SWOTT gives an enhanced perspective on how to approach and develop the future strategic planning focus. This tool provides a cogent evaluation of a company¶s strengths. It is important to acknowledge and understand these variables as they can have a significant effect on how the company competes in their chosen market. threats and trends.
The design efforts employed by Samsung endeavor to incorporate personality into the product which in turn embodies the image of the brand. These solutions enjoin the medical and biotechnology fields. Samsung remains one of the top manufacturers of mobile entertainment devices. To confirm .Samsung Mobile Devices: 7 needs to be authorized as a licensed entity in order to process the required tax documentation. Samsung has established an Open Innovation system in their research and development hubs with the objective being to expand strategic partnerships with the research communities in Korea. North America and the United Kingdom. Samsung¶s is in the process of restructuring the business to focus on life solutions. This earmark is offset to the positive by Samsung¶s strong sales in the telecommunications segment $139. Samsung recognizes the sacrifices that families must consider and strive to make their mobile devices affordable even under the most trying circumstances. renewable energy sources and consumer conveniences. It requires an enormous budget to operate its mobile communication division. Competitively. $2. 2009). Even in times of economic uncertainty. Although consumers need to have the ability to stay in touch with one another. Samsung understands that to remain in the market and thrive. The economic factor is critically important to Samsung during these times of personal and governmental financial insecurity. the status quo must be challenged.000. 2009). Samsung requires different forms of licensing to ensure operations will not be interrupted or disallowed altogether.000 million in Korean Won (Samsung. In addition. These include the proper requirements from the Federal Communications Commission (FCC) and the intricate area involving state and local government to allow the shared use of mobile device transmission towers.846. Samsung continues to keep a firm grip on the mobile device market by offering versatile and feature rich devices at affordable prices.955 million in Korean Won (Samsung. The world we live in is ever changing.
creativity and component capability. If we learn what customers want from our products. The strategy vision takes into account where the business currently is and where they want it to be. Samsung understands this obstacle and meets this challenge head on by lowering the learning curve in new product design without compromising on style and function. As Seungho Lee. Technology changes rapidly. To strategize means to . manager at the Affiliated Company Sales Branch in Korea so eloquently puts it. we can more quickly develop next generation innovations that they hadn¶t even thought possible. Samsung delivers intuitive user inputs to yield personalized user experiences. connectivity. The strategy factor is the most important as this forms the framework for the analysis as a whole. culture and the process and system. The development of company expansion and success depend on how well the strategy function of the exercise is handled. ³We make a habit of listening to the voices of our customers. The key to Samsung¶s success lies in the core belief that building products from the consumer point of view is inherent to brand value and loyalty. drilling down to analyze every minor detail. We want to guarantee that our customers remain satisfied. Samsung leads the way with the philosophy of the 4C¶s: content and services.Samsung Mobile Devices: Samsung¶s commitment to the consumer they have set up a network for design centers around 8 the globe to encourage strategic design-oriented management principles. After all. in some cases overnight. it¶s through technology that Samsung has positioned itself as a world leader in mobile device deployment. The technology factor cannot be emphasized enough within the Samsung SWOTT model. The very basis for Samsung¶s appeal is that the products touch the hearts of consumers. Samsung¶s competitive edge will be strengthened by consumer centric designs that combine technology and enjoyment.´ The internal factors that Samsung includes in the SWOTT analysis are those of strategy. From mobile phones with touchscreen capability to cutting edge 3D televisions.
Samsung engages in active collaboration with suppliers. . To remain competitive. They are not to be rushed into execution without thoughtful input from all relevant members. To provide a snapshot view of how the Samsung Corporation envisions the strategic planning process. Through this effort they have created the Partner Collaboration & Enhancement Office. Samsung has worked tirelessly to become a company that people respect ± not only for their products. This group acts to support the suppliers by offering technical and financial support. A core emphasis is on training and guidance for both Samsung and its partners in developing technology jointly. the SWOTT chart below is provided. measured steps that ensure success. but because of what the company gives back to the global community. Culturally speaking. cost savings and inventory reductions. Process and systems comprise a concentrated focus on the supply chain.Samsung Mobile Devices: plan careful. rather than singly. otherwise the plan is to fail. In countries around the globe Samsung has committed both educational resources 9 and human capital in the form of electronic devices for disadvantaged schools to participating in charity events and philanthropic actions in the spirit of hope. The goal of this process is to augment supplier competitiveness that result in operational improvements. from the early adopters of technology to the busy housewife who has limited time to learn complicated features of a new phone. The internal factor of culture is inclusive of all walks of life.
Samsung Mobile Devices: 10 .
prices for commodities will rise. A second issue that arises is that the all too prevalent economic downturn. Samsung reinforces the company¶s pledge to support and foster growth with its supply partners. there exists the possibility of the mobile device market becoming over saturated to the point where the competitive advantage is nullified. As political unrest continues to be at large. . This will result in price increases for raw materials. To combat this challenge.Samsung Mobile Devices: 11 The first issue that can be observed from the analysis is that although Samsung retains a robust product line. This can be overcome by Samsung¶s commitment to creating a user intuitive experience that enriches the lives of the consumer rather than providing just another electronic device.
To address this issue. memos and newsletters. this will pose a challenge with regard to design and engineering of products out of the niche market that the company has enjoyed. The ability to reference material makes it a valuable asset for large audience communication.Samsung Mobile Devices: The biggest opportunity to be had is that of entry into the medical and biotechnology 12 field. internal processes. Communication Plan Written Communication: Written communication is the easiest form to review for clarity. while quicker than the written word can pose obstacles if not utilized in the correct fashion. Samsung takes bold steps to create think tank groups and committees that seek to utilize creativity and connectivity as stated in the 4C philosophy to deliver devices designed to give the user the same intuitive experience as with the mobile device line. To effectively communicate a strategic plan requires the use of good vocabulary. Only in this manner can an environment of mutual respect and trust be developed towards accomplishment of company objectives. This method also allows for the reader to review at convenient times. As Samsung found its roots in the electronic entertainment arena. Oral Communication: The use of oral communication. The target audience must be taken into consideration. The overall success of oral communication lies in the nurturing of two way dialogue between members of the organization and affected stakeholders. Balanced Scorecard The balanced scorecard is a strategic planning instrument that plots an organization's strategic goals into performance metrics in four perspectives: financial. active listening skills and the use of nonverbal tools such as body language. . Methods used can include email. but still be held accountable for the contents. The expectations of the stakeholders should be analyzed when choosing to use this method.
how progress will be measured. The word scorecard reflects quantifiable performance and balanced denotes that the system is balanced between: Short and long term objectives Financial and non-financial measures Lagging and leading indicators Internal and external performance perspectives 13 Additionally.the target value sought for each measure.what is the goal? Measures . These metrics should be limited in number so as to avoid an inordinate amount of data and dilute the intent of the measures with irrelevant data. the business must define: Strategic objectives . targets and initiatives that determine the effectiveness of the strategic plan. Targets . the balanced scorecard hones in on the performance using metrics within the four elements. To develop the scorecard from a practical standpoint.Samsung Mobile Devices: customers. The balance scorecard structure is represented as a grouping of four intrinsic elements that in turn encompass the relevant objectives. Initiatives . These perspectives provide advice as to how well the strategic plan is formulated so that changes can be made as required.how the target will be achieved. . measures. The measures should be limited to ensure that parameters can be efficiently measured for each included perspective. and learning and growth. The balanced scorecard essentially forms a cause and effect relationship among the performance indicators.
The goal of making measurements is to permit stakeholders to see their company more clearly. the scorecard approach helps stakeholders understand how measures influence one other. from many perspectives in order to make better. metrics must be created to measure the . By having four different perspectives the scorecard promotes an overall balanced view of any organization. These measurements must be interrelated. To support the business strategy. long-term decisions.Samsung Mobile Devices: 14 The development process helps organizations clarify its purpose by first reviewing and expounding the business strategy and then selecting measures based on that strategy.
In other words. not. M. Become a customer centric culture (Punniyamoorthy. increase export sales by 10 per cent. & Murali. In some cases the measures set are achieved and in other cases.. Internal process perspective ± Improve production standards by incorporating enhanced quality check procedures that capture 25 percent more line produced phones. 2011). benchmarks can be constructed that will serve to deduce a distinct value for comparing the target performance and the actual performance of the organization by taking into account the . the model needs to be monitored over time. Financial perspective ± Samsung mobile services seek to increase the return on equity by 12 per cent. Eliminate defects in workmanship by an additional 10 percent. M. Further. R. Learning and Growth perspective ± Involve the employees in corporate affairs. actual performance is greater than targeted performance. 15 realize a 15 per cent growth in revenue. for some it is less.. pp1-30. 2011). for the decision makers there may be uncertainty regarding the direction in which the organization is going (Punniyamoorthy. Therefore. For some factors.. 369-80). Instill leadership aptitudes at all levels. a 6 per cent decrease in production costs and a 4 per cent decrease in capital expenditures. specific weight should be given to the parameters set in the scorecard model. Once the scorecard model has been developed with appropriate metrics in place. increase sales kiosks by 8 per cent and obtain competitive pricing. R. Provide technical awareness and skill for multi-tiered levels of employees. & Murali.. Customer perspective ± Samsung mobile services seek to enhance market share by 5 per cent. To meet this challenge.Samsung Mobile Devices: effectiveness of the scorecard elements (Kaplan & Norton.
The world of business process management is ever changing and evolving. Cash ± This is a lagging indicator. a balanced scorecard is a vital tool to assist managers and decision makers in the course of developing operational strategies. which are then honed into individual measures and targets. It is a leading indicator of market share and product appeal and can impact revenues by indicating when sales prices can be increased. The balanced scorecard usually includes both company targets and business entity aims. A leading indicator can be considered a driver of lagging indicators. New technologies are being introduced almost daily. It's a very adaptable model. A good balanced scorecard must contain a mix of both lag and lead indicators. designed to be accommodating towards many organization requirements. To provide a roadmap for success and measurement of performance. Innovation is a crucial element to the company. There is an anticipated relationship between the two indicators which suggests that improved performance in a leading indicator will drive better performance in the lagging indicator (Niven. 16 Product appeal . The users of mobile technology are vast and growing each day.This is a lagging indicator that provides past performance data on how satisfied customers are with the product. This metric is a lagging indicator in that it provides past data on how Samsung¶s product compares to competitors.Samsung Mobile Devices: weight assigned to each factor by considering the users frame of reference. 2006). it is a historical measure and represents previous results of operations. Paul. so speed is of the utmost importance in order to . Strategic Direction Samsung Mobile Devices caters to a widespread market. Power features index ± This is both a leading and lagging indicator.
The company¶s strongest asset is its people. The Samsung Advanced Institute of Technology (SAIT). In the future. and oversees the securing and management of technology (Samsung. global research and 17 development and a strong commitment to ongoing investment. Samsung¶s functional experts encourage customer interaction to voice comments. but also by associating the familiar and trusted Samsung name to new technologies. complaints and of course. Samsung looks to expand into newer markets such as the medical and biotechnology industries.They collaborate on strategic technologies for the future advances designed to forge new market trends and set new standards for excellence. These centers are tasked with recruiting and hiring top notch talent who share in the vision of the company and strive to develop technologies that inspire the world. Samsung Mobile is managed by a team of highly technical qualified individuals whose skills and experience afford the company the capacity to think beyond the norm and produce products that truly make a difference in people¶s lives. Samsung Mobile Services enjoys a distinct advantage by offering the latest mobile technology at an affordable price. The company will demonstrate its commitment to investment in the research and development by investing 9% of the sales revenue to this end. kudos. The devices provide interactivity on an unprecedented scale. Samsung's R&D organization has three layers.Samsung Mobile Devices: remain competitive. The company will accomplish this by leveraging the already strong global partnerships with suppliers. Samsung strives to enter the emerging field of nanotechnology whereby hospitals and laboratories can benefit from highly advanced products that are significantly . Samsung's technology competitiveness in core business areas. Samsung will use a collaborative mix of people. The company incorporates a closely linked network of global research and development facilities in nine countries around the globe. 2011). identifies growth engines for the future.
Medical practitioners will be able to enjoy a more user friendly experience while in the office by utilizing front and rear cameras on all tablet based computers in addition to the robust display screen that feature MagicSuite technology that is easy on the eyes. The core belief in these statements is to offer a feature rich. Performance evaluation system. Natural disasters such as the recent events on Japan can have a devastating effect on the company¶s ability to remain competitive. value added experience to every customer. Samsung will measure the performance of its employees in conjunction with their peers and immediate customers. Evaluation and Control of Samsung Mobile Services The management will collect data from sales. The corporate and business strategies of the company are directly influenced by its 18 mission. expenses and liabilities for the express purpose of assessing the effectiveness of the strategic plan and its continued direction.Samsung Mobile Devices: smaller in scale. The evaluation will be linked to any and all appropriate salary increases or promotion. profit. he or she will be re-trained and supported in their . vision and value statements. effectively using marketing strategies. relying on a strong research and development team and the tireless commitment to investing back into the company. the cost of doing business on a global scale can become tenuous by way of increasing tensions in oil producing countries that may result in the loss of international trade agreements. can be comfortably viewed from any angle and has the potential to double energy savings. but by no means less powerful than their counterparts who feature bulkier footprints. If it becomes apparent that the employee does not meet the expectations of the company. The aim is to make efficient use of all available resources. Of course there is always risk involved with any ambitious endeavor. The strength of the company exists in the possibility of aligning individual employee goals with overall organizational goals. For Samsung Mobile.
We have a ³Mutual-Respect Corporate Culture´ course and ³Workplace Manners´ course. We care for the environment. Additionally. Ethical Concerns. and safety Principle 5. Trust & Credibility. With diversity come a slew of challenges that must be proactively approached. We are a socially responsible corporate citizen Furthermore the company will expect each employee to embrace and exemplify the following 7 factors of a World Leading Company. 19 Code of Conduct. The mutual-respectcorporate culture course is an annual mandatory course for all employees to help them protect human rights. 2011). Insight & Good Sense. Samsung will conduct regular education courses to help employees build a desirable human network and protecthuman rights. Dream. shareholders and employees Principle 4. We maintain a clean organizational culture Principle 3. Vision & Goal. We respect customers. Creativity & Challenge. The code is guided by five distinct principles: Principle 1. Change & Innovation. Technology & Information. We comply with laws and ethical standards Principle 2. the company has developed many benchmark achievements to assist in addressing ethical dilemmas that may arise. health. prevent sexualharassment and improve relationships (Samsung Integrity Management. The company will not tolerate nor will it sponsor any entity that chooses to knowingly engage in child labor. . all employees of the company will abide by the global code of conduct as set forth by the executive team. the company will pledge to conduct labor relations in a cooperative format by creating a formal grievance reporting procedure. They range from recruiting and retaining global talent to respecting human rights and diversity. Speed & Velocity.Samsung Mobile Devices: success.
partner collaboration and world class products and services.Samsung Mobile Devices: Legal issues. the company will adhere to all government rules and regulations as they apply to the industry. social contribution. green management. The philosophy for Samsung Mobile Services is ³Harmony between Business Vision and Vision for Society. 20 . Corporate Social Responsibility: The company strives to promote sustainability thereby contributing to a better global society. The company will maintain detailed records of all financial dealings in accordance with Securities and Exchange Commission (SEC) rules. This means that the company will make every effort to ensure this philosophy by following the roadmap of talent management. integrity management. These include Federal Communication Commission (FCC) standards as well as specific regulations with regard to operating in a foreign nation.
and Norton. Retrieved fromhttp://www. MA.com/article/2133461/conceptualizing_a_business_.unifei. Conceptualizing a business. from Samsung Corporation Web site: http://www.d. Strategic Management. New York. D. 2011. 2011. The Strategy Focused Organizations. 2011.associatedcontent. R. (2009). and Control.com/article/123750/balanced_scorecard_definition . (n. from Emerald Insight Web site: http://www.com/us Frank Irby. Implementation. Initials. B. Retrieved March 15. Hoboken: John Wiley & Sons. (2007.pdf Kaplan.com/us/aboutsamsung/ir/financialinformation/annualreport/downloads/ 2009/SECAR2009_Eng_Final... (2011). Retrieved March 10. R.samsung. (Niven. P. & Murali. Boston. from Samsung Corporation Web site: http://www.). (2009). Associated Content. A. (n. Retrieved February 27. M.Samsung Mobile Devices: References Pearce. Retrieved March 15.br Schwartz. K.d. Punniyamoorthy. Balanced Scorecard Step By Step.html Samsung 2009 Annual Report. D. 21 Samsung Electronics Ltd.S. Balanced Score for the Balanced Scorecard: A Benchmarking Tool. 1-30. (2006). 2006) Niven. July 13). J. Web site: http://www. Eleventh Edition (11th Ed. NY: McGraw-Hill. 2011. from A CXO Media Inc.). Balanced Scorecard Definition and Solution. Inc.edu.P. pp. 369-80.iem.samsung. (2006). Formulation. R. & Robinson.cio. Harvard Business School Press.).
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