MANAGEMENT STRATEGIC

ANALYSIS OF MULTINATIONAL COMPANY’S VISION & MISSION

SM Entertainment Co., Ltd.

By :

Nadia Salsabila
1917041090
5/C

GANESHA UNIVERSITY OF EDUCATION

SINGARAJA
2021
A. Company Introduction

SM Entertainment, founded in 1995 by Head Producer Lee Soo Man, is the first
company in the industry to introduce systematic casting, training, producing, and
management systems, and it has been discovering unique content by pinpointing
demands for music and cultural trends. SM Entertainment entered the global
marketplace using globalization and localization strategies through culture technology
and has become a leading entertainment company in Asia.
In 1997, SM Entertainment became the first company in the Korean
entertainment industry to enter foreign markets and made remarkable achievements as
the leader of Hallyu, or the Korean Wave.
SM Entertainment has successfully set foot in North America, South America,
and Europe while maintaining its base in Asia, and has enhanced the national brand of
Korea and promoted the growth of the culture industry. SM Entertainment is
promoting the unique culture of Korea through avenues such as K-POP, the Korean
alphabet, and Korean cuisine, through 'Made by SM' content all over the world, and is
elevating the prestige of Korea by promoting the consumption of Korean brand
products. In particular, SM Entertainment has focused on the value of culture that can
lead the national economy and has contributed to its growth under the catchphrase,
"Culture First, Economy Next." SM Entertainment will continue to lead the
entertainment industry until Korea becomes a ‘Cultural Powerhouse' as well as an
‘Economic Powerhouse' based on the idea that our economy will reach its heights
only when our culture wins the heart of the entire world.

B. Vision & Mission

A vision statement should answer the basic question, “What do we want to
become?”. A clear vision provides the foundation for developing a comprehensive
mission statement. The vision statement should be short, preferably one sentence, and
as many managers as possible should have input into developing the statement. Where
there is no vision, the people perish. At a minimum, a vision statement should reveal
the type of business the firm engages. Although typically a single sentence, vision
statements need to be written from a customer perspective. Vision statements need to
do more than identify the product/service a firm offers.
 Mission statement : “What is our business?”. An enduring statement of purpose
that distinguishes one organization from other similar enterprises, the mission
statement is a declaration of an organization’s “reason for being.” A good mission
statement indicates the relative attention that an organization will devote to meeting
the claims of various stakeholders. Good mission statements identify the utility of a
firm’s products to its customers.

C. Mission Statement Component

Mission Statement Components Written from a Customer Perspective :
1. Customers—Who are the firm’s customers?
2. Products or services—What are the firm’s major products or services?
3. Markets—Geographically, where does the firm compete?
4. Technology—Is the firm technologically current?
5. Survival, growth, and profitability—Is the firm committed to growth and
financial soundness?
6. Philosophy—What are the basic beliefs, values, aspirations, and ethical
priorities of the firm?
7. Self-concept (distinctive competence)—What is the firm’s major competitive
advantage?
8. Public image—Is the firm responsive to social, community, and environmental
concerns
9. Employees—Are employees a valuable asset of the firm?

D. SM Entertainment Vision & Mission Analysis

Vision : Asia’s No.1 Entertainment Group

● It answers the question “What do we want to become?”, to be the number 1 in

Asia.
● Short and written in one sentence.
● Reveal the type of business, entertainment business.

Mission :

1. Becoming the Best Digital Content Provider to Lead the Internet and Mobile
Markets.
 The Korean Wave has spread quickly throughout the world through new
media platforms, including YouTube, Facebook, and Twitter (4). SM
Entertainment will share the ‘Made By SM’ content (2) with the entire world
(3) and build a virtual community (8) for the global generation (1).

2. A Truly Global Company.

SM Entertainment will grow (5) into an entertainment group representing Asia

through its network of global affiliates (7), such as SM Entertainment Japan,
SM Entertainment Beijing, SM True, Dream Maker Entertainment, and SM
Entertainment USA, and other entertainment groups overseas.

3. The Future of Culture Technology! As a company that produces the best in

cultural content and entertainers by using state-of-the-art culture technologies,
SM Entertainment aims to touch the people’s hearts and promote Korean
culture in every corner of the world with the goal of contributing to national
economic growth and a more affluent life for everyone (6).

*The numbers in parentheses correspond to the nine mission statement components.

E. Conclusion

Overall, SM Entertainment's vision and mission are in line with the principles
contained in Fred David's book on Vision and Mission Analysis. It's just that in the
SM Entertainment mission there is a lack of the 9th component - Employees.

References :
SM Entertainment Official Website. Available on https://www.smentertainment.com/.

David, Fred R., David, Forest R. 2017. Strategic Management : A Competitive Advantage
Approach, Concepts and Cases. Sixteenth Edition. England : Pearson Education.