BM1807

Answer the following questions: (3 items x 10 points)

1. What is/are the triggering event/s that act/s as stimulus/stimuli for strategic change in the
given case?
The triggering events in the case are New Chief Operating Officer (CEO) and
Performance Measure. When Lee Kun-hee, the youngest son of Samsung’s founder, took
over the company, he recognized the company’s poor performance and that the brand was
poorly perceived in Western countries. Performance was not meeting their expectations. As
the new CEO, he took it upon himself to burn their products in front of his employees to
ignite a revolutionary change in their company, strategy, goods and services. Thereafter, they
moved forwards and invested in research and development, marketing and design,
overhauled the company culture to value seniority, hired people of different experiences, and
shifted the products to premium.
Indeed, it is by the CEO and his recognition of their failing performance that surged
Samsung into what it is today.

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

The characteristics described in the case are consequential and directive. After the
pivotal event in Samsung’s history of their products being burned in front of their own eyes by
their CEO, the company has devoted itself to commit increased amounts of resources in
research and development, marketing and design, and their employees just to create and sell
premium products. By the decision to move forward, everyone involved in the company was
affected and perhaps had to work harder than ever. They were moved to commit so much of
their time and spend so many resources. Moreover, ever since the strategy was made, it set
Samsung to the right path because obviously, it is now one of the biggest companies in the
entire world. If organizational problems arise, Samsung wouldn’t have much of a hard time
solving them rather than before when they didn’t have much positional strength and structure.

3. How will Samsung maintain its successful market position by using one of the modes in
strategic decision-making?
Samsung will maintain its successful marketing position by using the Planning Mode.
They would be proactive and reactive at the same time. Proactive in the sense of looking for
new opportunities in the name of growth and reactive in the sense of finding solutions for
existing threats and problems. As a diverse company with different products and subsidiaries,
it is important for Samsung to constantly be updated and look out for the next best thing so
in turn, they can decide on the next best decision. At the same time, having so much on their
plate may open problems and so in order for Samsung to remain in their high position, or
even go beyond the industry, they have to constantly gather information, see the latest
trends, monitor their performance, generate solutions ahead for possible discrepancies, out
of more.

02 Activity 1 *Property of STI

This study source was downloaded by 100000815444829 from CourseHero.com on 03-01-2022 21:06:05 GMT -06:00
Page 1 of 2

https://www.coursehero.com/file/83499382/02-Activity-14docx/
Powered by TCPDF (www.tcpdf.org)