STI Colleges Lipa

Bachelor of Science in Tourism Management

Strategic Management

Reinald Zach Ramos

BSTM 3.1 A

SAMSUNG Case Study

1. What is/are the triggering event/s that act/s as stimulus/stimuli for strategic change in the given
case?

According to the case presented, Lee Kun-Hee, as the new creator of Samsung
Electronics, aimed to make Samsung Electronics the world’s number one firm in the field of
high-tech industries, producing world-class electronics. As a matter of fact, every organization
aims to be one. In this scenario, I saw multiple triggering events that acted as stimulus for
Samsung’s strategic adjustment, and I saw two types of triggering events: internal and external.
In the internal environment, I watched Chairman Lee Kun-Hee, the newly appointed Chief
Operating Officer, maneuvering the firm to change 360 degrees, marking the thoughts of all
employees of the extreme shift their leader is about to do for the company.

2. Which characteristic/s of strategic decisions is/are described in the case study?

The strategic decision detailed in the case study has a consequential characteristic. By
transforming Samsung Electronics’ culture to one that places a high emphasis on seniority and
introducing merit-based pay and promotion, he was able to make strategic decisions that
required significant resources and a high degree of commitment from employees at all levels.

3. How will Samsung maintain its successful market position by using one of the modes in strategic
decision-making?

Samsung will preserve its dominant market position by employing the Planning mode,
which entails the systematic gathering of relevant scenario analysis information, the production
of viable alternative plans, and the rational selection of the best strategy. Furthermore, in order
to expand, they should seek out more possibilities that will help them become more well-known
and flourish. When Lee Kun Hee was appointed chairman of the corporation, his goal was to
gain market share by conquering markets from the bottom up with low-cost products that were
acceptable. However, Sony and Motorola, the clear world leaders at the time, obscured
Samsung’s image. Samsung took the strategic decision to offer premium consumer electronics
such as flat screen televisions, appliances, semiconductors, and mobile devices like as its famed
galaxy series of smartphones, rather than focused on creating and marketing its own distinct
sectors.

Strategic Management