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This document summarizes the history and success of Samsung Group. It traces the company's founding in 1938 by Lee Byung-chull in grocery business and its transformation into electronics under the leadership of Lee Gun-hee in the 1970s and 1980s. The company grew significantly through acquisitions and investments in other businesses. It achieved the highest market share in digital TVs and second largest in mobile handsets. The document attributes Samsung's success to the leadership and management philosophies of the Lee family as well as its diversified business structure and investments that helped it navigate challenges like the global financial crisis.
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Bibliography
Barret, Victoria. It's A Mod, Mod Underworld . 12 12, 2005. http://www.forbes.com/forbes/2005/1212/064.html.
Chiang, Oliver. The Master of Online Mayhem . 09 12, 2011.
http://www.forbes.com/forbes/2011/0228/technology-gabe-newell-videogames-valve-online-mayhem.html.
CVG Staff. Creative Minds: Gabe Newell . 09 28, 2007.
Keighley, Geoff. The Final Hours of Half-Life 2. 11 12, 2004.
http://www.gamespot.com/articles/the-final-hours-of-half-life-2/1100-6112889/.
Moaer, Frank. Content Creation and Social Media: A Look into Valve. Chicago : Penguin , 2010.
Newell, Gabe, interview by Gavin Free. PAX East: Gamestop Interview (05 17, 2006).
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BSTR228 IBS Center for Management Research .docx
BSTR/228
IBS Center for Management Research
Samsung Electronics: Success by Design
This case was written by Sachin Govind, under the direction of S.S.George, IBS Center for Management Research. It was
compiled from published sources, and is intended to be used as a basis for class discussion rather than to illustrate either
effective or ineffective handling of a management situation.
2006, IBS Center for Management Research. All rights reserved.
To order copies, call +91-08417-236667/68 or write to IBS Center for Management Research (ICMR), IFHE Campus, Donthanapally,
Sankarapally Road, Hyderabad 501 504, Andhra Pradesh, India or email: [email protected]
www.icmrindia.org
1
BSTR/228
Samsung Electronics: Success by Design
“An enterprise‟s most vital assets lie in its design and other creative capacities. I believe that the
ultimate winners of the 21
st
century will be determined by these skills.”
1
- Kun-Hee Lee, chairman, Samsung Corp., in 2006.
“We want to be the Mercedes of home electronics.”
2
- Yun Jong Yong, chief executive, Samsung, in 2004.
“Good design is not simply about aesthetics or making a product easier to use. It‟s a central part
of the business process, adding value to products and services and creating new markets.”
3
- Tony Blair, prime minister, UK.
INTRODUCTION
In the 2006 IDEA (Industrial Design Excellence Awards)
4
competition, Korea-based Samsung
Electronics Co. Ltd. (Samsung) won a gold (for a touch messenger
5
) and two silver (for a portable
digital projector and a digital presenter) awards. With these wins, Samsung held on to its number
one position as the company that had won the most IDEAs in the last five years.
Samsung had made the decision to adopt design as a source of competitive advantage in the 1990s.
Earlier, the company‟s products had been uninspiring and undifferentiated. In the early 1990s, the
Group chairman, Kun-Hee Lee (Lee), initiated Samsung‟s transformation from a low-end OEM
6
into a world-class electronics company. Sharpening the company‟s design skills was a significant
part of the initiative. However, this required major changes in culture, processes, and systems
within the company.
The decade-long initiative proved to be successful and Samsung came to be perceived as a
company with an exciting product portfolio. The IDEAs and numerous other awards that Samsung
won in the 2000s reaffirmed the company‟s newly-acquired design prowess. With stylish products
in its portfolio, the company was able to record higher sales and higher profits. Inter ...
What is the Ethics and Social Responsibility of samsung SAMSUNG .pdf
What is the Ethics and Social Responsibility of samsung? SAMSUNG ELECTRONICS 2019*
In February 2019, Samsung Electronics celebrated the 10th in 2014. These troubles with its
leadership have not diminished anniversary of its introduction of the Galaxy S line of smart-
Samsung's status as an innovative-and highly profitablephones by introducing several new
models. The Galaxy S10 powerhouse in the technology world (see Exhibits 1 and 2). models
ranged in sizes and price from a more compact It has gained in stature as the world's largest
maker of memory model with a 5.8-inch display to a full-size model with a chips, smartphones,
and televisions among other electronic 6.4-inch one. It even launched a souped-up model with
products (see Exhibit 3). a 6.7-inch screen that featured 5G technology. These new But the
removal of Lee came at a tough time for models also feature a "Infinity-O display," which cuts a
hole Samsung, which has been seeking new avenues for growth for the front camera in the upper
right corner to allow the as sales of its market-leading smartphones seem to be display to
maximize the entire front of the phone. slowing down. A few months later, Samsung's chairman
of These anniversary models capped a period of two years the board, Kwon Oh-hyun, shocked
everyone in the firm by during which Samsung Electronics had to cope with the suddenly
announcing his resignation. Kwon claimed that conviction of its de facto leader, Lee Jae-yong,
on charges the firm need to turn to a younger generation of leaders of bribing South Korea's
former president. Lee has been who could search for new growth engines by studying
fuproviding broad direction to the firm since his father, Lee ture trends. "I believe the time has
now for the firm to start Kun-hee, became incapacitated after suffering a heart attack anew with a
new spirit and young leadership" he said. 1 This led the firm to shake up its senior ranks in order
to address concerns about a leadership vacuum. It replaced drawn from published sources to be
used for purposes of class discussion. main business lines-mobile, electronics components, and
Copyright 02019 Jamal Shamsie and Alan B. Eisner. consumer electronics. EXHIBIT 1 Income
Statement (billions of KRW) EXHIBIT 2 Balance Sheet (billions of KRW)
EXHIBIT 3 Smartphone Sales Worldwide still making most of its profits from lower-priced
appliances that consumers were likely to pick up if they could not afford a higher-priced brand
such as Sony or Mitsubishi. It had also become an established low cost supplier of various
components to such larger and better-known manufacturers around the world. Although they
were making profits, Yun was concerned about the future prospects of a firm that was relying on
a strategy of price competition with products based on technologies that had been developed by
other firms. The success of this strategy was tied to the ability of Samsung to continually scout
for locations that would allow it to keep its manufactur.
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Toyota case individual project 1
Toyota Corporation developed the lean production concept that made it an industry leader in area of productivity and quality. The advantages that the system presented propelled the corporation to the top of the industry. However, Toyota appears to be losing its position as the most productive company in the automobile industry. It is also experiencing difficulties dealing with competition. The main problem in Toyota’s case is that the company is losing its competitiveness. This paper examines the causes of this problem using model such as PEST, Five Forces Analysis, Value Chain Analysis, Resource-Based-View and the industry fitness landscape. The paper also identifies alternative strategic options that Toyota can use to address the competitiveness problem. The paper recommends that Toyota adopts the Blue Ocean Strategy as this strategy will guarantee sustainable source of competitive advantage for Toyota.
Read and reflect on the case study about Sony on page 119 of the cou.pdf
Read and reflect on the case study about Sony on page 119 of the course textbook. Consider the
CEO\'s reorganization. What environment constructs were involved? Why did the CEO have to
adapt, control, and reduce uncertainty? Identify the mechanistic versus organic structures and
how contingency theory was or was not applied in this case study.
CASE FOR ANALYSIS Sony’s “Gaijin” CEO is Reorganizing the Company
Sony, the famous Japanese electronics maker, was renowned in the 1990s for using its
engineering prowess to develop blockbuster new products such as the Walkman, Trinitron TV,
and PlayStation. Its engineers churned out an average of four new product ideas every day,
something attributed to its culture, called the “Sony Way,” which emphasized communication,
cooperation, and harmony among its company-wide product engineering teams.36 Sony’s
engineers were empowered to pursue their own ideas, and the leaders of its different divisions,
and hundreds of product teams were allowed to pursue their own innovations—no matter what
the cost. While this approach to leadership worked so long as Sony could churn out blockbuster
products, it did not work in the 2000s as agile global competitors from Taiwan, Korea, and the
United States innovated new technologies and products that began to beat Sony at its own game.
Companies such as LG, Samsung, and Apple innovated new technologies such as advanced LCD
flat-screens, flash memory, touch-screen commands, mobile digital music, video, and GPS
positioning devices, and 3D displays that made many of Sony’s technologies, such as its
Trinitron TVs and Walkmans obsolete. For example, products such as Apple’s iPod and iPhone
and Nintendo’s Wii game console better met customer needs than Sony’s out-of-date and
expensive products. Why did Sony lose its leading competitive position?
One reason was that Sony’s organizing approach no longer worked in its favor because the
leaders of its different product divisions worked to protect their own personal empires and
divisions’ goals and not those of the whole company. Sony’s leaders were slow to recognize the
speed at which technology was changing and as each division’s performance fell, their leaders
felt threatened and competition between them increased as they sought to protect their own
empires. The result was slower decision making and increased operating costs as the leaders of
each division competed to obtain the funding necessary to develop successful new products.
By 2005 Sony was in big trouble; and at this crucial point in their company’s history, Sony’s top
managers turned to a gaijin, or non-Japanese, executive to lead their company. Their choice was
Sir Howard Stringer, a Welshman, who as the head of Sony’s U.S. operations had been
instrumental in cutting costs and increasing profits. Stringer’s was known to be a directive but
participative leader; although he was closely involved in all U.S. top management decisions he
nevertheless then gave his top executiv.
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Ssmsng aprasl
This is my assignment which is given in business policy and strategic management.the topic of this assignment is organisation appraisal of samsung electronics.
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Samsung
- 1. Samsung group Lee woo back (Harold Lee)
- 3. The history of Samsung group 1938 Lee Byung Chull Established Samsung Sanghoe (green grocery) 1954 Established woolen mill factory 1960 Changed main industry to electronics 1978 The second chairman (Lee Gun Hee) was positioned 1982 Established the first factory in foreign land (Portugal) 1996 Acquired Sungunguan University (One of Korean universities) 2009 Lee Gun Hee temporarily resigned 2010 Lee Gun Hee recovered his position as a chairman
- 5. The picture of chairmen Lee Gun Hee Lee Byung Chull Go to Samsung group’s inner structure