02 ACTIVITY 1

STRATEGIC MANAGEMENT
GROUP 6

Cruz, Van Kenneth

Daganta, Al Fharid
Elospa, Riomar

Answer the following questions:

1. What is/are the triggering event/s that act/s as stimulus/stimuli for

strategic change in the given case?
- The triggering event for strategic change in the given case was Lee Kun-
hee's realization during a 1993 trip to the United States and Europe of the
poor perception of Samsung's electronics in these markets. Witnessing
firsthand the inferior reputation of Samsung products compared to
industry leaders like Sony and Motorola, Lee Kun-hee was motivated to
transform the company's image and market position. In response, he
initiated a significant strategic shift by destroying 150,000 brand-new
Samsung cell phones in a symbolic bonfire in front of employees,
signaling his determination to overhaul the company's approach. This
event marked a pivotal moment that prompted a reevaluation of
Samsung's strategic focus, leading to increased investment in Research
and Development (R&D), marketing, and design. Lee Kun-hee's
commitment to quality and consumer perception prompted a
comprehensive restructuring of the conglomerate, introducing merit-
based pay, promoting a culture that values seniority, and bringing in
Western managers and designers. The move towards the high-end market
with premium consumer electronics further reflected the strategic
changes implemented by Lee Kun-hee to position Samsung as a global
leader in high-tech industries.
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2. Which characteristic/s of strategic decisions is/are described in the case

study?
- The characteristics described in the case are consequential and
directive. Following the incident in Samsung's history of their products
being burned in front of them 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. 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. Furthermore, ever since the plan was implemented,
Samsung has been on the right track, as evidenced by the fact that it is
now one of the world's largest corporations. Samsung will have an easier
time dealing with them than they did previously, when they lacked
positional strength and structure if organizational issues develop.

3. How will Samsung maintain its successful market position by using one
of the modes in strategic decision-making?
- Samsung may continue to hold a strong market position by using
differentiation as a tool for strategic decision-making. This entails setting
its goods and services apart from rivals in ways that appeal to
consumers. It can maintain its position as the industry leader by
concentrating on improving the consumer experience through
individualized solutions and exceptional customer service.

Samsung will maintain its successful market position through the mode
of strategic innovation. By continuously investing in Research and
Development (R&D) and adapting to changing consumer preferences,
Samsung has demonstrated a commitment to technological
advancements and product excellence. Additionally, the strategic shift
towards premium offerings in consumer electronics, such as high-end
TVs, appliances, semiconductors, and the popular Galaxy line of
smartphones, ensures a focus on differentiation and value creation in the
competitive market.