FUNCTION OF MANAGEMENT IN SAMSUNG

Submitted By:- Diya Sharma

Submitted To:-Dr. Riya Sharma Ma’am
Semester:-Masters of Business Administration: I SEM

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 TABAL OF CONTENTS
S.NO TOPIC PAGE NO.
1 Introduction 3

2 Organizing Function of 5
Management

3 Characteristics of Organizing 6

4 Process of Organizing 6

5 Importance of Organizing Function 7

6 Company Profile 8

7 Samsung’s Organizational Structure 9

8 Samsung’s Organizational 11
Structure Type

9 Human organization 13

10 SWOT analysis of Samsung 17

11 Vision of samsung 19

12 Conclusion 19

13 Bibliography 20

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 Introduction
MANAGEMENT:-

Management is essential in all organized efforts, be it a business activity or any other activity.
Principles of management are now universally used not just for managing business organizations,
they are also applied to various other types of organizations, such as educational, social, military
and government. Management is thus the same process in all forms of organization, although it
may vary widely in its complexity with the size of the organization. The management of a big
multinational company, though differing in detail from that of a small partnership firm, follows
the same general pattern.

Management is the dynamic, life-giving element in every organization. It is this element that
coordinates current organizational activities and plans future ones. It arbitrates disputes and
provides leadership. It adapts the organization to its environment and often shapes the
environment to make it more suitable to the organization. In a competitive economy, the quality
and performance of the management determine the success of an organization, indeed, they
determine its very survival. Nowadays, no organization can long hold its monopoly on capital or
technology. But good management can definitely become its monopoly and give it a competitive
edge over its rivals.

Management has been described as a social process involving responsibility for economical and
effective planning & regulation of operation of an enterprise in the fulfillment of given purposes.
It is a dynamic process consisting of various elements and activities. These activities are different
from operative functions like marketing, finance, purchase etc. Rather these activities are
common to each and every manger irrespective of his level or status.

A manager is one who contribute to the organization’s goals indirectly by directing the efforts of
other not by performing the task himself. On the other hand, a person who is not a manager
makes his contribution to the organization’s goals directly by performing the task himself.

Sometimes, however a person in an organization may play both these roles simultaneously. For
example, a sales manager is performing a managerial role when he is directing his sales force to
meet the organization’s goals, but when he himself is contacting a large customer and negotiating
a deal, he is performing a non-managerial role. In the formal role, he is directing the efforts of
other and is contributing to the organization’s goal indirectly, in the latter role, he is directly
utilizing his skills as a sales man to meet the organization’s objectives

Definition of management -

Claude S. George – “The central core of our national as well as personal activities, and the way
we manage ourselves and our institutions reflects with alarming clarity what we and our society
will become”

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George R. Terry- He define management as a process “Consisting of planning, organizing ,
actuating and controlling, performed to determine and accomplish the objectives by the use of
people and resources ”

According to this definition, management is a process- a systematic way of doing things The four
management activities included in this process are : Planning, Organising, actuating and
controlling. Planning means that managers think of their actions in advance. Their actions are
usually based on some method, plan or logic, rather than on a hunch. Organsing means that
manager coordinates the human and material resources of the organization. Actuating means that
manager motivates and directs subordinates. Controlling means that managers attempt to ensure
that there is no deviation from the norm or plan. If some part of their organization is on the wrong
track, manager take action to remedy the situation.

This definition also indicates that managers use people and other resources, such as finance
equipment, etc in attaining their goals. For example, a manager who wishes to increase sales
might try not only to motivate the sales force but also to increase the advertising budget.

This definition states that management involves the act of achieving the organisation’s objectives.
These objective will, of course, vary with each organization. The objective of a hospital might be
to provide comprehensive medical care to a community. The objective of university might be to
give student a well-founded education in a congenial environment. Whatever the objectives of a
particular organization, management is the process by which the objectives are achieved.

Organizing Function of Management

Organizing is the function of management which follows planning. It is a function in which the
synchronization and combination of human, physical and financial resources takes place. All the
three resources are important to get results. Therefore, organizational function helps in
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 achievement of results which in fact is important for the functioning of a concern. According
to Chester Barnard, “Organizing is a function by which the concern is able to define the role
positions, the jobs related and the co-ordination between authority and responsibility. Hence, a
manager always has to organize in order to get results.

A manager performs organizing function with the help of following steps:-

1. Identification of activities - All the activities which have to be performed in a concern

have to be identified first. For example, preparation of accounts, making sales, record
keeping, quality control, inventory control, etc. All these activities have to be grouped and
classified into units.
2. Departmentally organizing the activities - In this step, the manager tries to combine and
group similar and related activities into units or departments. This organization of
dividing the whole concern into independent units and departments is called
departmentation.
3. Classifying the authority - Once the departments are made, the manager likes to classify
the powers and its extent to the managers. This activity of giving a rank in order to the
managerial positions is called hierarchy. The top management is into formulation of
policies, the middle level management into departmental supervision and lower level
management into supervision of foremen. The clarification of authority help in bringing
efficiency in the running of a concern. This helps in achieving efficiency in the running of
a concern. This helps in avoiding wastage of time, money, effort, in avoidance of
duplication or overlapping of efforts and this helps in bringing smoothness in a concern’s
working.
4. Co-ordination between authority and responsibility - Relationships are established
among various groups to enable smooth interaction toward the achievment of the
organizational goal. Each individual is made aware of his authority and he/she knows
whom they have to take orders from and to whom they are accountable and to whom they
have to report. A clear organizational structure is drawn and all the employees are made
aware of it.

Characteristics of Organizing

 Division of Labour: Work is assigned to the employee who is specialized in that work.

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 Coordination: Different members of the organization are given different tasks to perform when
all the tasks are put together logically and sequentially, it results in the objectives, so coordination
is required.
 Objectives: Objectives need to be specifically defined.
 Authority-Responsibility Structure: For an effective authority responsibility structure, the
position of each manager and executive is specified, as per the degree of the authority and
responsibility assigned to them, while performing the duties.
 Communication: The techniques, flow and importance of communication must be known to all
the members.

Process of Organizing

Organizing is the core function which binds all the activities and resources together in a
systematic and logical sequence. It encompasses a number of steps which are pursued to achieve
organizational goals.

1. Identification and division of work: Organizing process begins with identifying the work and
dividing them as per the plans. Basically, the work is classified into different manageable
activities, to avoid redundancy, and sharing of work is encouraged.
2. Departmentalization: After classifying the work into different activities, the activities having a
similar nature are grouped together. This process is called as departmentalization which
facilitates specialization and forms the basis for creating departments.
3. Assignment of the task: After the formation of departments, employees are placed in different
departments under a manager, called as a departmental manager. Thereafter, employees are
assigned the jobs as per their skills, qualifications and competencies. For the effectiveness of the
performance, the manager must ensure that there is a proper match between the job and the
incumbent, i.e. the right person has to be placed at the right job.
4. Establishment of organizational hierarchy: Deployment of work is not all, the employees must
be aware of whom they have to report and who can give them orders. Hence, work relationships
need to be established clearly, which helps in the creation of a hierarchical structure of the
organization.
5. Provision of resources to the members: Arrangement and deployment of resources such as
money, materials, supplies, and machine, etc. which are important to carry out day to day
operations of the organization.
6. Coordination of efforts and scheduling of activities: The final step to this process is the
coordination of efforts and scheduling the activities in a logical and systematic manner so that the
common objectives can be achieved effectively.

Importance of Organizing Function

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1. Specialization - Organizational structure is a network of relationships in which the work
is divided into units and departments. This division of work is helping in bringing
specialization in various activities of concern.
2. Well defined jobs - Organizational structure helps in putting right men on right job which
can be done by selecting people for various departments according to their qualifications,
skill and experience. This is helping in defining the jobs properly which clarifies the role
of every person.
3. Clarifies authority - Organizational structure helps in clarifying the role positions to
every manager (status quo). This can be done by clarifying the powers to every manager
and the way he has to exercise those powers should be clarified so that misuse of powers
do not take place. Well defined jobs and responsibilities attached helps in bringing
efficiency into managers working. This helps in increasing productivity.
4. Co-ordination - Organization is a means of creating co-ordination among different
departments of the enterprise. It creates clear cut relationships among positions and ensure
mutual co-operation among individuals. Harmony of work is brought by higher level
managers exercising their authority over interconnected activities of lower level
manager.Authority responsibility relationships can be fruitful only when there is a formal
relationship between the two. For smooth running of an organization, the co-ordination
between authority- responsibility is very important. There should be co-ordination
between different relationships. Clarity should be made for having an ultimate
responsibility attached to every authority. There is a saying, “Authority without
responsibility leads to ineffective behaviour and responsibility without authority makes
person ineffective.” Therefore, co-ordination of authority- responsibility is very
important.
5. Effective administration - The organization structure is helpful in defining the jobs
positions. The roles to be performed by different managers are clarified. Specialization is
achieved through division of work. This all leads to efficient and effective administration.
6. Growth and diversification - A company’s growth is totally dependent on how
efficiently and smoothly a concern works. Efficiency can be brought about by clarifying
the role positions to the managers, co-ordination between authority and responsibility and
concentrating on specialization. In addition to this, a company can diversify if its potential
grow. This is possible only when the organization structure is well- defined. This is
possible through a set of formal structure.
7. Sense of security - Organizational structure clarifies the job positions. The roles assigned
to every manager is clear. Co-ordination is possible. Therefore, clarity of powers helps
automatically in increasing mental satisfaction and thereby a sense of security in a
concern. This is very important for job- satisfaction.
8. Scope for new changes - Where the roles and activities to be performed are clear and
every person gets independence in his working, this provides enough space to a manager
to develop his talents and flourish his knowledge. A manager gets ready for taking
independent decisions which can be a road or path to adoption of new techniques of
production. This scope for bringing new changes into the running of an enterprise is
possible only through a set of organizational structure.

COMPANY PROFILE

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Samsung is one of the world’s largest companies in the field of electronics and advanced
technology. The company specializes in producing and manufacturing a many different
consumers and industries, such as, digital media devices, electronics, memory chips,
semiconductors and integrated systems. The company also involved in the construction
work as well as the army gadgets. The company became one of the most recognized brands in
the technology field and it produces around fifth the total exports of South Korea.

Samsung was founded on 1st of March 1938, as a trading store for groceries, by Lee Byung-
Chull. Chull started the business in Taegu city in Korea by trading simple goods which were
produced in the city and around it and exporting them to China. Later on, after the Korean war,
Chill expanded the business and started making textiles, and later became the largest textiles
maker in Korea. Chull’s goal was to support the country and help with its development after the
war, by focusing heavily on the industrialization field, and that gave him and his company the
support of the Korean government. By the 1970s, Samsung was able to expend and started the
production of the raw materials of the textiles until the end products which made it one of the
biggest competitors in the textiles industry. Furthermore, in the same period, Samsung was able
to establish new industries such as, shipbuilding, chemical, petrochemical and Samsung
Precision Company which helped Samsung to start grow in a promising way. Around the same
time, Samsung also entered the electronics field by starting the production of the black and white
TVs, and that was the start of the company to start producing home electronics and export them
to other countries around the world. By the early 1980s, Samsung witnessed a huge and fast
expansion in its technology field. Aerospace division was created, and separate electronics and
semiconductors branches were established. Moreover, the company needed to create a system to
help it on growing, which helped Samsung to become the leading company in the services of the
information technologies. Later on, the company started its own research and development
institute which was behind many innovations in many fields 3 like the electronics, chemicals,
semiconductors, genetic engineering, telecommunication, nanotechnology and aerospace. In the
1990s, the company enhanced its products quality and started the production of the computers
monitors and LCD screens which gave the company its place between the top five companies in
the global market. Later by the 2000s, Samsung started the production of its smartphone
Galaxy series, which became later on the company’s best product and also claimed its place

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between the best-selling Smartphone’s in the global market. From there, the company continued
on expanding the Smartphone series to the computers and tablets, and became the world’s biggest
manufacturer for the screens in its different shapes, types and uses.

Samsung’s Organizational Structure

Organizing includes determining what tasks are to be done, who is to do them, how the tasks are
to be grouped, who reports to whom, and who will make the decisions. Samsung Electronics has
a strong business division structure that is managed independently by business unit managers.
The company is divided into five sectors, which are Digital Media, Semiconductors,
Telecommunications, Digital Appliances and LCDs. Within these sectors, there are 13 Global
Business Managers (GBM) who responsible to organize the firm along major product divisions in
terms of personnel, sales, and production within their respective divisions. (Chang, S. J., 2008)
Employees are divided according to their specialize and skills into different tasks to increase
work output. (Robbins et al., 2012) Any proposal of investment that is written by GBM should be
reviewed by the finance department, followed by CFO. Then, CFO reports to CEO. Finally, the
proposal is approved by Office of Secretaries and Chairman. (Chang, S. J., 2008).

Samsung’s organizational structure is designed to promote technological innovation throughout

the enterprise. Technological innovation is at the heart of the company’s strategies, as seen
through rapid innovation involving smartphone’s and other consumer electronics. Structural
facilitation contributes to the effectiveness of implementing Samsung’s generic competitive
strategy and intensive strategies for growth. The corporate structure is also a manifestation of the
evolution of the business from a small trading firm into a diversified multinational enterprise that
offers advanced technologies. Considering its organizational structure’s involvement in diverse
operations, Samsung employs various operations management strategies for different markets and
industries. The conglomerate’s organizational design and structural system covers various
markets and industries related to the development and utilization of technologies, such as
computing technologies. Effective market penetration and market development strategies are
enabled through Samsung’s corporate structure, which also empowers competitive advantages to
support business continuity and success in an increasingly saturated and aggressive competitive
landscape.

Organizing need a formal and clear structure of authority besides the flow of the authority
through the subdivisions aligned and coordinated so that all will be united and working together
to reach the objectives prescribed by the higher management. Samsung’s structure is a
manifestation of the quick evolution of the business from being a small trading to a global
enterprise which invent and creates new technologies. With the involvement of its organizational
structure in many different operations, the company uses many operation management strategies
for different markets and fields. Effective penetration and development strategies for the market
are happening through the company’s corporate structure, which as well gives it an advantage in
the competition of the market. Samsung has what is called a product-type division organizational
structure. This type of structure utilizes products categorization as the defining block to
determine which resources and operation belongs to a specific part or division of the

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company, like 7 Samsung’s Device Solution division. The whole operational structure is
unified by Samsung’s head quarter, which is located in Seoul. Moreover, the direction of the
strategic management from the company’s headquarter is implemented by strategic objectives
specified for the structural divisions field. Furthermore, Samsung’s organizational structures for
product type divisions are, consumer electronics, device solutions and information technology
and mobile communications. Samsung’s headquarter is the notable appearance of this pyramid,
and that is a part of the organizational design to ensure that, these massive operations are unified
and working together towards the growth and operational effectiveness. Such a structure involves
centralization of the strategic planning, besides vertical lines of command and authority which
relay strategic directions from the headquarter till it reaches the daily operations in the consumer
electronics, device solution and information technology and communications divisions.
Alongside that, Samsung uses geographical grouping as a minor characteristic of its operational
structure.

Samsung’s Organizational Structure Type

Samsung has a product-type divisional organizational structure. This structure type uses product
categorization as the basis for determining which resources and business operations belong to
certain divisions, such as the company’s Device Solutions division. The entire corporate structure
is unified via Samsung’s headquarters, which are located in Seoul. Strategic management
directions from the corporation’s headquarters are implemented through strategic objectives

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 specific to the structural divisions’ contexts, such as the context of the U.S. market for consumer
electronics. Samsung’s corporate structure has the following main characteristics:

1. Product-type divisions
2. Centralized corporate hierarchy
3. Geographical groupings

Product-Type Divisions.
Samsung’s organizational structure’s main characteristic is its product-type divisions. Each
division is a group of resources and operations that represent a product category, such as
resources and operations for the production, distribution, and sale of consumer electronics.
The corporate structure’s emphasis on technological innovation and product development in
these divisions helps in achieving Samsung’s corporate vision and mission statements. The
technology conglomerate may add, merge, or disband divisions, depending on current
business needs and the development of the organization, considering that further business
diversification is possible. The following are the product-type divisions in Samsung
organizational structure:

1. Consumer Electronics
2. Device Solutions
3. IT & Mobile Communication

Centralized Corporate Hierarchy.

Samsung’s corporate structure involves a hierarchical model, despite its product-type
divisions. The corporate headquarters are the most notable manifestation of this hierarchy,
which is part of an organizational design for ensuring that the conglomerate’s operations are
unified and effectively directed towards growth and operational effectiveness. This
characteristic of the organizational structure involves centralization of overall strategic
planning, as well as vertical lines of command and authority that relay strategic directions
from the headquarters to the daily operations in the Consumer Electronics, Device Solutions,
and IT & Mobile Communications divisions.

Geographical Groupings.
Samsung uses geographical groupings or divisions as a minor characteristic of its corporate
structure. In the company’s organizational chart, these geographical divisions are generally

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 under the product-type divisions. For example, Samsung Electronics North America is a
geographical division within Samsung Electronics, which is a product-type division. Through
this characteristic of the organizational structure, the company implements region-specific
strategies, such as strategies intended for the North American market for Device Solutions

Samsung’s Corporate Structure’s Advantages & Disadvantages

Advantages
Samsung’s corporate structure has the advantage of extensive support for product development,
especially in terms of technology and innovation. This support comes through the structural
framework of the conglomerate’s product-type divisions. Another advantage of this
organizational structure is the company’s ability to fine-tune its strategies and operations based
on market characteristics. This is possible through the geographical groupings or divisions within
the product-type divisions, such as IT & Mobile Communications. In this way, the organizational
structure supports the company’s competitive advantage, especially against major competitors
like Apple Inc.

Disadvantages
Samsung’s organizational structure has the disadvantage of limited autonomy of the product-
based divisions. For example, because of the centralized hierarchy, the product-based divisions
need to follow strategic directives from the company’s headquarters in Seoul. Nonetheless, this
structural hierarchy is necessary to keep Samsung’s entire organization unified toward its mission
and vision involving superior technology and technological products. In relation, the corporate
structure presents challenges in expanding the business in regional markets, considering the low
priority given to the geographical groupings. Nonetheless, Samsung’s corporate culture helps in
minimizing the negative effects of these structural disadvantages. Also, its current global success
means that the technology company effectively uses the advantages of its corporate structure in
spite of the disadvantages

Human organization
Human resource management helps in managing the people working in organisation. It helps in
keeping eye on the activities of employees and provides direction to the employees. Human
resource of the organisation are termed as one of the most valuable and precious assets who

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works on the verge to help the organisation in attaining its targeted goals and objectives. Without
Human resource, organisation cannot process out the work and cannot sustain in the market. For
better understanding with the fact Guest Model is applied on Samsung. Guest Model was
introduced by David Guest who has a great contribution in human resource management. This
model was introduced aiming that the leaders working in the organisation should focus upon
various strategies which could help the organisation in reducing employee turnover ratio. David
Guest presented certain aspects which are related with human resource management of the
organisation. Applying guest model on Samsung will help in developing better understanding
with the fact.

Guest’s Model
Human resource management should prepare the strategies in relation with the people working
in Samsung as well as with the people required to be hired in the organisation. Human resource
management of Samsung should work on the verge to reduce employee turnover ratio and should
provide appraisal to the employees working in the organisation. Providing appraisals is a most
effective strategy that could be used by the human resource management of Samsung.

HRM Practices: There are certain practices that are to be implemented by the human
resource management of Samsung. These practices include recruitment and selection of people,
motivating the people working in at workplace, providing training to the employees working in
the organisation and providing information related with the organisation’s rules and regulations
that are to be followed by each and every employee working at the workplace.

HR Outcomes: Evaluating performance of human resource working in Samsung is necessary.

Human resource management of Samsung should evaluate the performance of each and every
employee so that proper set of appraisal could be provided to the effective performer and training
could be provided to the lower performers. This will help in motivating the employees and will
result in positive output.

Behaviour Outcomes: Keeping eye on the behavior of the employees is another aspect that
should be taken into consideration by human resource management of the organisation. Human
resource management should use 360 degree feedback system so as to analyze the behavior of
employees at workplace. This will help the human resource management in identifying the
employee eligible for appraisal at workplace.

Performance Outcomes: Human resource management should analyse the performance of

each and every employee working in Samsung and should evaluate performance of the
organisation. This will help in analysing the requirement of training at workplace.

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Financial Outcomes: Financial outcome should be analysed by the human resource
management of Samsung. This will help in analysing the requirement of funds at workplace and
will help in managing the human resource working in Samsung.

Assess the implications for line managers and employees of developing a strategic approach to
HRM for Samsung.

Strategic approach is a necessity for any organisation. Every organisation indulge in

the competitive market should prepare certain set of strategies so as to ensure that it could attain
its targeted objectives and goals. Line manger plays a very vital role in preparing the strategies
related with human resource management. Line manager is the link who has the information of
each and every employee working under him. It becomes the responsibility of line manager to
prepare the business strategy which can help in identifying the person who will move to higher
position in the organisation. This kind of strategy will help in grooming the employees and will
help in building their career.

Some of the implications to the manager: Line manager works as developers of the
people working in the organisation, specialization of people’s day to day management system
should be there, it is necessary that the strategies should consider operational costs and should
ensure that the operational costs could be managed.

 Providing appraisals, rewards and recognition to the people will help the organisation to
sustain and achieve its targeted goals.
 Line manager evaluates the performance of employees working under him and should
appraise the top scorer so that he could get motivated to work more hard and others could
get motivated to get recognized in the organisation.
 Providing training is also an effective strategy that could be used by the line manager, it
will help the employees of Samsung to groom them and will help in ensuring that they
could provide quality in the work.
 Help the employees so as to develop the employee’s metrics so as to access the
continuous improvement.
 Provide support to the employee innovation will help in dramatically increasing the
efficiency of the employees.

Organization Culture
It has become increasingly important for employees to have vested stake in the growth potential
of its company. People expect a participatory work environment where they can feel a sense of

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dignity, pride, and ownership of the organization’s vision. Samsung Electronics strives to build a
creative organizational culture, and acknowledges that the investment they make in strengthening
the core competencies of their employees will have a direct impact on their competitiveness.
They actively promote a flexible organizational culture that allows employees to pursue a healthy
work-life balance, in a dynamic, creative and challenging work environment that is not risk-
averse. As an international company they embrace individuals with different background and
abilities

Work and Life Balance through Work Smart

Establishing a Work Culture that Encourages Learning and Development: Samsung Electronics
has established a Creative Development Research Institute System to provide employees with
opportunities to pursue creative new ideas that take full advantage of their talents and
professional passions in a way that encourages taking risks. This new initiative encourages
employees to be more entrepreneurial in developing creative ideas that can become new
businesses. Once an employee’s plan is accepted, they may concentrate on the project as a
member of a task force for up to one year. During this period, they will be free from their usual
responsibilities and may receive a dedicated work space, development expenses and necessary
equipment as appropriate. Successful outcomes are encouraged through an incentive program;
however they are not subject to penalty if they don’t achieve their goals.

Some of the other key-features of Samsung’s culture are:

 Talent based recruiting of Software and Design experts

 Diversity Management
 Employees Health and Safety
 Integrity Management
 Increasing Social Contribution

Technology Employed:
The organization’s core technology is manufacturing which consists of raw material inputs, a
transformation work process that changes and adds value to the raw material and produces the
ultimate product or service output that is sold to the consumers in the environment. Core
Technology On the other hand, Samsung Electronics has also a department work process that is
important to the organization but is not directly related to its primary mission and that we call as
noncore technology. For Samsung Electronics, that major non-core technology is Research and
Development (R&D) which transforms ideas into new products. Some of the other departments
of non-core technology are Human Resources, Accounting, and Marketing etc. Refer Exhibit 2
for Samsung’s Mobile division R&D office structure in India

Organization Size:
Samsung Electronics has a total of 196 subsidiaries around the world. As of the end of 2011,
Samsung Electronics’ total employment stood at 101,973 working in Korea and 119,753 outside

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 of Korea, with the overseas workforce surpassing the domestic workforce for the first time in the
history of Samsung Electronics. Currently, Samsung’s total employment is more than 344,000
employees globally.

SWOT analysis of Samsung

Samsung’s Strengths – Internal Strategic Factors

1. Dominates the Smartphone Market – Samsung has dominated the smartphone market for
years. According to Gartner, in Q1 of 2020, Samsung has maintained the No. 1 spot globally
with a 18.5% market share, where as Apple is at 13.7% market share.
2. Research and Development – The foundation of Samsung has always been on Innovative
research and development. Expenditure in these departments resulted in the company having a
wide range of product portfolio among its competitors. These include tablet, camcorder, mobile
phone, camera, TV/video/audio, Memory Cards, PC, and other accessories. They have 34
R&D (research and development) centers operating worldwide. 
3. Award Winning Brand – Samsung’s position as a pioneer for innovation is backed with
credibility. Samsung has won many awards for its offerings. Samsung has been awarded the
CES (Consumer Electronics Show) owing to its designs and products for 14 consecutive
years. It went on to receive 36 CES awards in 2018 along with 400 more awards within a period
of 14 years. It also secured 7 wins at the (IDEA) International Design Excellence Awards.
4. Ecologically Friendly Innovations – Samsung has enhanced its brand reputation through its
environmentally friendly innovations. It secured its ranking at 9th position in the Top 30 Tech
and Telecom companies of the EPA’s 2016 Green Power Partner list. It also received the
Environmental Protection Agency’s (EPA) annual ENERGY STAR Partner of the Year
Excellence Award for five consecutive years. Other companies do not share this achievement
and hence increases Samsung’s appeal across all business lines.
5. Stronghold in the Asian Markets – Samsung retains a stronghold in the Asian markets,
particularly India and China. Both India’s and China’s business markets are growing
substantially which is why Samsung has taken advantage of the opportunity and incentivize in
these countries accordingly.

Samsung’s Weaknesses

1. Heavily dependent on the American Markets – It is estimated that both Apple and Samsung
sold at least 70.8% of smartphones in the USA. While Samsung has diversified its resources and
expanded its operations in Asia, it is still heavily dependent on the American markets. The
American economy is very unpredictable and another recession could put Samsung’s revenues in
jeopardy and can damage its operational resources. That’s why Samsung needs to involve itself

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 into the Asian and European markets to ensure sustainability and avoid potential failures if the
US economy ever collapses.

2. Decline in Smartphone Sales – Samsung has been experiencing a decline in smartphone sales

since 2017. A similar trend was seen in China due to the price sensitivity of the Chinese market.
They dump a lot of those products in the Indian market at a lower cost which harms the Samsung
sales. Samsung has tried to shift more focus in India, but that strategy did not produce substantial
results for the company.
3. Product Failures – Any product that threatens the life of consumers erodes confidence and trust
in the company. Samsung has delivered several faulty products to the market from the exploding
Samsung Galaxy A20e to a faulty foldable phone.

4. Dependence on Low-end Smartphones – A large portion of Samsung revenues come from low-
end smartphone sales. Recent events have impacted this segment more than the high-end
smartphone segment, which played a role in Samsung’s decline from 71 million smartphone sales
and 19.1% of market share in Q1 2019 to 55 million smartphones sold in Q1 2020 with 18.5% of
market share (as per Gartner Report).

5. Hereditary Leadership – Since its founding, Samsung has always been under the leadership of
the family for three generations. Even though keeping the leadership within the family has
offered Samsung immense stability, the company can stagnate due to a lack of fresh ideas. After
being dogged by several scandals, Samsung heir Jay Lee has vowed to end dynastic succession.  

6. Bribery Scandal – In 2015, Samsung’s reputation was tainted by the revelation that the president
of the company bribed the government of South Korea to facilitate a merger. He was found guilty
and jailed for about one year until Feb. 2018, which eroded trust bestowed by consumers in South
Korea and the world over.

Samsung’s Opportunities

1. Triple Protection Proposition – Samsung is preparing to launch its new air conditioning
product called the ‘Triple Protection Proposition’ that incorporates cutting edge technology and
impeccable construction. The product is geared towards a target customer base that would ensure
maximum customer retention.
2. HR Management – Samsung can make impressive transformational accomplishments if it invest
in its HR management. Not only would it be good for its sales but it will also give it competitive
leverage over its rival. The company can utilize its brand image and hire highly qualified and
skilled employees to improve employee performance and productivity.
3. Diversification and Acquisitions – It is critical that Samsung avoids the mistake of being
limited to just one marketplace. It not only invites risks from an economic perspective, but it also
attracts unwanted political polarization and negative media publicity. That’s why there is a
business vacuum present in the Asian and European economies in which Samsung can thrive. It
needs to expand its customer base as well. It can only be achieved through diversification and

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 acquisitions of other businesses. Samsung is a popular brand and can generate impressive
revenues thanks to its financial standing.
4. Introduce Innovative Products – The smartphone sector is highly dynamic, with the latest
trends going out of style in an instant. Samsung can attain immense growth by setting the trend
with great and innovative products like the foldable phone.
5. 5G Technology – As the world moves to 5G, Samsung has the capacity and know-how to exploit
this opportunity. The company is already in active commercial discussions with operators in the
EU to supply 5G and 6G network equipment. Samsung is one of the top companies in the UK’s
list of potential 5G providers.

Samsung’s Threats

1. Patent Infringement Controversies – Samsung has been involved in controversies that have
threatened its business. Its rival Apple filed a lawsuit against Samsung for patent
infringement which underwent a heated court battle for seven long years until finally reaching
a settlement. However, the company suffered consequences when a jury decided that Samsung
had indeed copied Apple and was to pay $1.049 billion in damages. This suit damaged the
company’s reputation and its sales.
2. Increased Competition – Competition from opponents especially from those within the
consumer electronics, smartphone products, and computing industries has reached a record high.
Whether it’s Xiaomi, Apple, or Huawei, all the technological competitors are outmaneuvering
and outperforming each other to become the best technology company. This only increases the
pressure for Samsung in both competition and finances.
3. Legal and Regulatory Threats – With the world becoming more globalized and digitally
oriented, governmental authorities have begun issuing their guidelines which are increasing legal
and regulatory threats to companies around the globe. Samsung is no exception to these rules.
Laws differ from market to market, and these strict regulations cause a hindrance in operations.
Failure to comply could even result in a complete shutdown in the respective market which may
be fatal for Samsung.
4. Economic Uncertainty – Recent events have catalyzed uncertainty in the global market and led
to a decline in new smartphone sales by 20.2% in Q1 of 2020. Financial struggles have forced
many consumers to seek recycled or refurbished phones, which has increased by 24%. Samsung
has already experienced a decline in sales, and it can drop further if uncertainty persists.
5. Rise of Counterfeiting – According to numerous research studies, Samsung is by far the most
counterfeited phone brand. Statistics from mobile benchmarking site highlight that over 36% of
all counterfeit smartphones are Samsung copies. Also, Samsung Galaxy S7 Edge holds the record
of the most counterfeited smartphone model.
6. Impending Court Cases – Any disruption in leadership can affect performance. A South Korean
court is debating whether to send Samsung’s leader and heir Jay Lee back to jail. New allegations
of stock-price manipulation and audit-rule violations have dogged the executive and threaten to
throw the company into another tumultuous period without leadership. 

VISION OF SAMSUNG

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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.” The statement calls attention to its leadership position and how it directs
the market and upgrades life itself with its products and services. It contains the following
characteristics:

1. Inspire the world. Through this characteristic, it is clear Samsung does not just develop
products, instead, it does so with a precision that inspires. It does this by being aware of the
diversities across the globe. In this way, it can tailor all its products to meet the needs of all
irrespective of where they are.
2. Focus on innovations. The bar for designing Samsung products is probably the highest.
Samsung has established a reputation for showcasing highly innovative products with the
latest technologies such as its electronics with smartphones and personal computers being
some of these.
3. Contributing to social prosperity. Samsung considers its presence in the electronic and
other products’ market an important opportunity to change the way people live and relate for
better. The care and personalized needs that the company considers while designing products
echoes how Samsung recognizes the ease of use as must have a factor in everything it
develops. Essentially, this improves how people work, interact, and carry our other social
duties.

Conclusion

Samsung has a mechanistic organizational structure as it has rigid hierarchical relationships and
tall organizational structure. In the company, each employee has fixed duties and they have to
follow lots of rules. Also, the decision making process is centralized and the communication
channel is formalized. In Samsung, the goals or visions are planned by the top management.
Office of Secretaries takes the leading role as they responsible to solve the conflicts as well as
help the chairman to control and direct the individual affiliates. Besides, they also spread the
company philosophy to motivate the employees. Samsung is divided into Digital Media,
Semiconductors, Telecommunications, Digital Appliances and LCDs, which are managed by
business unit managers.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.  

Bibliography
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Help from the book

 Principles of management by P C Tripathi and P N Reddy

Help from internet following websites links have been used in the completion of this project.

 www.ukessays.com
 www.lawaspect.com
 www.research-methodology.net
 www.panmore.com
 www.semiconductor.samsung.com

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