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‡His book. ³Billions of Entrepreneurs: How China and India are Reshaping Their Futures and Yours´ ³Winning in Emerging Markets: A Roadmap for Strategy and Execution´.‡Tarun Khanna is the Jorge Paulo Lemann Professor at the Harvard Business School. .

Kyungmook Lee .Jaeyong Song Jaeyong Song and Kyungmook Lee are professors at Seoul National University in South Korea.

. improvement & applied RnD but also on innovation. Lon-term relationship with Long-term cooperative suppliers based on deep. suppliers relationship but unconditional cooperation with some level of competition Contingent relationships with suppliers based on market pricing.Samsung s Hybrid Management System Traditional Japanese System Diversification Strategy Samsung s Hybrid System Strategy Diversification but more focus within business Ability to tap into both internal & external capital market Focus on cont. Western System Focus Strategy Dependence on internal capital markets Focus on continuous on operation improvement to prepare for price competition. marketing and design to establish strong brands and premium pricing. Dependence on external capital markets Focus on innovation. marketing and design to establish brand and premium pricing.

Mostly standardized but some individualized incentives Merit based promotion and compensation. which result in long term employment Human resources interweaving of internal workforce with outsiders attracted through marketbased compensation Dependence on external labor market attracted by market based compensation. .Dependence on internal labor market. standardized incentives Coexistence of seniority based and merit based promotion and compensation. open best candidates for all recruitment for experienced positions as needed specialists Seniority based promotion and compensation. Limited recruitment mostly once a year and only for entry level positions Annual recruitment for Open recruitment of the entry level positions. individualized incentives.

innovativeness and creativity to succeed in the new digital market. Talent management and compensation into Samsung existing model .Korea.3 bn. the Samsung Group is the largest corporate entity in S. with USD 227.The Rise of a Leader:‡ Founded in 1938. ‡ They launched the New Management initiative to import Western practices related to strategy formulation. in revenue in 2010 and 315000 employees worldwide. ‡ Samsung can surpass its rivals if it developed the agility. ‡ For this Samsung looked to west.

first in SEC and eventually throughout the Samsung Group. ‡ Even during economic crisis.‡ Samsung built its hybrid management system as a series of experiments. . behind Toyota. SEC s profit higher than five largest Japanese electronic firm (Sony. ‡ The result was impressive the SEC become world s most profitable manufacturer. Toshiba. Panasonic. Hitachi and Sharp).

‡ Established Global Strategy Group(GSG) . ‡ In 1983..when it entered the memory chip business. ‡ SEC s CEO also instituted a formal mentoring program in which he met at least quarterly with SLevel recruit to give and receive feedback. the company had hired Korean engineers and executive away from Intel. IBM and Bell Labs who makes Samsung global leader less than a decade.Bringing Outsiders in .

Hon kong and New York for training in high Finance. ‡ Samsung Sending high potentials To Japan for advanced degrees in engineering.Sending Insiders Out . To the United States for further education in marketing and management. To Singapore. ..

. any person. an opinion or statement contrary to commonly accepted opinion. ‡ 2.Meaning of paradox ‡ a statement or proposition that seems selfcontradictory or absurd but in reality expresses a possible truth. ‡ 4. ‡ 3. thing. a self-contradictory and false proposition. or situation exhibiting an apparently contradictory nature.

.Conclusion ‡ Samsung s Unlikely Success in mixing Western best practices with an essentially Japanese business system holds powerful lessons for today s emerging giants.