group assignment organizing staffing of samsung

Since the 1990s, Samsung has expanded its operations on a global scale, focusing on strategic research and development investments most in the fields of high technology and consumer elec

Lecturer: Mr Quang Trung Hieu

GROUP ASSIGNMENT

ORGANIZING & STAFFING OF SAMSUNG

GROUP : 01 Class : MC1608 MEMBER :

Nguyen Thuy Quynh HS160841 –

Nguyen The Bao Long HS140278 –

Le Hong Hai HS160955 –

Nguyen Lan Phuong HS163400 –

Phan Thuy Nga HS163428 –

Truong Khanh Trang HS163485 –

FUNDAMENTALS OF MANAGEMENT

2.1 Human Resource management 14

2.2 Samsung’s recruitment 14

2.3 The difference in Samsung’s human resource managemant 16

III CONCLUSIONS 17

IV REFERENCES 20

3

I INTRODUCTION

1 THE FOUNDER OF SAMSUNG

Samsung was founded by Lee Byung-chul - Korean businessman and industrialist in 1938, with the beginning as a retail company After more than 3 decades of establishment and development, Samsung Group has gradually diversified into industries including: food processing, textiles, insurance, securities, real estate and retail Samsung started entering the electronics industry in the late 1960s, building shipyards in the mid-1970s After Lee Byung-chul's death in 1987, Samsung split into four small conglomerates more, including: Samsung, Shinsegae, CJ and Hansol Since the 1990s, Samsung has expanded its operations on a global scale, focusing on strategic research and development investments most in the fields of high technology and consumer electronics, specifically the mobile phone segments , TVs, electronic chips and semiconductors As a result, many of the above fields have gradually become the most important spearheads, with an increasingly large contribution and a high proportion, to the extent that it is almost irreplaceable in the total revenue of the whole corporation

2 SAMSUNG CORPORATION

Samsung is a giant multinational corporation of Korea with its headquarters located in the Samsung Town complex, Seocho district, Seoul city This group currently owns many subsidiaries, a chain of sales systems and representative offices worldwide, most of which are operating under the brand name 'Samsung', which is a multinational conglomerate The industry has the largest scale and influence on the economy in Korea in particular and is also one of the most expensive technology brands in the world today

Other notable Samsung subsidiaries include: Samsung Electronics (the world's largest high-tech electronics company by revenue, and the world's fourth largest by market value in 2012) Samsung Heavy Industries (the world's 2nd largest shipbuilding company, behind only Hyundai Heavy Industry),[Samsung Engineering and Samsung C&T (the 12th and 36th largest construction companies in the world, respectively) Other important subsidiaries include Samsung Life Insurance (14th largest insurance company in the world), Samsung Everland (manager of Everland Resort, the oldest theme park in Korea)], Samsung Techwin (World's 15th space exploration company by revenue in 2012)

3 ACHIEVEMENT

In 2019, Samsung had the largest global brand value in Asia in particular and at the same time ranked 4th in the world In July 2020, Samsung once again surpassed big rivals such as Apple, Google, Sony, LG, Panasonic, Philips, to continue topping the list of 1,000 most loved brands in Asia in 9 years for consecutive years by leading companies specializing in market research

4 Toyota (Japan) to become the most expensive brand in Asia, ranking 5th globally after Google, Microsoft, Amazon and Apple (USA)

In November 2020, Samsung with a market share of 33.7% continued to surpass Apple (30.2%) to take the No 1 position - leading the Smartphone market in the US after three years (2017, 2018, 2019) ranked No 2 Also in 2020, Brand Finance - UK's independent brand valuation and strategic consulting firm announced the results of its national brand report, according to which the Samsung brand value was valued at approximately 95 billion USD - ranked No 1 in Asia, 5th in the world, ranked above many big names such as Facebook, Volkswagen, Walmart, Toyota, Huawei, and only after 4 US technology corporations (Amazon) , Google, Apple and Microsoft) By 2021, the above number will continue to increase, to 102.6 billion USD, but Samsung still holds the 5th position globally

Samsung was the world’s largest manufacturer of OLEDs with 40% market share worlds wide and 90% share of global AMOLED market More than 600 American patents and 2800 international patent are owned by Samsung Electronics in 2006 that makes it as the largest owner of AMOLED technology patents The company also became the second-largest mobile-phone maker beating Motorola in 2007 for the first time In 2009, it became world’s largest technology company overtaking Hewlett-Packard measure by sales.

In 2010, it produces 30 nm-class DRAMs and 20 nm-class NAND flashes which were the first time in the world At 2011, it is the world’s largest mobile phone maker and second-largest semiconductor chip maker Samsung Electronics became the largest smartphone vendor due to sales of Galaxy SII and Galaxy Note devices.

Various individual efforts must lead to the achievement of common business goals Organization is the structural framework of duties and responsibilities required of personnel in performing various functions with a view to achieve business goals through organization Management tries to combine various business activities to accomplish predetermined goals

1.2 Basic elements of organizations

1.2.1 Organization Strategy

A key foundation of any successful business organization like Samsung is bold leadership in strategy and execution It is through well-designed and boldly executed business strategies that business organizations can achieve their corporate missions Before developing an execution strategy, it is of utmost importance for companies to perform an analysis of the organization's resources and its competitive position These considerations are important because they help develop actionable strategies that give the organization a competitive advantage over its business rivals

The strategy development process involves thinking strategically about the future of the business organization This includes thinking strategically about the organization's current market performance or position and future prospects A strategy is a forward-looking roadmap that business organizations typically follow to develop and enhance their business prospects The strategy development process considers the destination of the business organization and the reasons for reaching that destination There are various theories that seek to study how business organizations apply information and knowledge to execute business strategies and drive out competitors The knowledge base theory of an organization or company is one of the important information systems theories that try to explain how data, information, and knowledge are applied and useful in the activities of a business organization According to knowledge-based organizational theory, knowledge is an important and strategic resource that determines an organization's ability to gain competitive advantage and achieve superior business outcomes Samsung Electronics' current strategy is based on knowledge

These organizations generate information and knowledge that are important knowledge assets of the organization Samsung Electronics' generation of information from data obtained from an organization's intellectual property is accomplished with the aid of technology or information systems The governance component arises when organizations seek to create value from their knowledge assets Therefore, knowledge is a valuable asset that Samsung Electronics effectively manages, maintains and preserves Samsung uses information systems to improve and accelerate knowledge management within and across organizations

6 have access to vast knowledge on both the domestic and foreign consumer electronics market In knowledge-based theory, business companies such as Samsung Electronics Company must significantly invest in knowledge management to be able to effectively implement their differentiation or low cost leadership business strategies These reports help the management personnel in problem solving and decision making Knowledge management systems provide managers with up-to-date information An information system is a knowledge-based asset and as such an integral part of a business company that plays significant roles in decision making and problem solving in a company Knowledge management systems provide business companies; organizations and firms with a competitive advantage to enable them to perform better than others, especially their competitors All these require business companies to have access to relevant business operations knowledge

These were strategies aimed at enabling the company to compete effectively with other industry players’ especially in Japan and in the western countries Samsung Electronics Company continues to expand its production system in a <systematic reverse order= Samsung Electronics Company also enters market segments in which its current technological advancements and capabilities enable it to compete effectively The company has also widely engaged in making use of cheap and abundant labour force in the production distribution and marketing of its consumer electronic products and services

a) Pricing strategies:

Samsung Electronics has positioned its consumer electronics as a low-end, quality manufacturer The company offers alternative consumer electronics products to its major consumer electronics brands, while increasing product prices due to the improved design and quality of these products This strategy aims to capture all market segments from low-income consumers to high-income consumers for the electronics industry This pricing strategy is influenced by three main factors The first factor is low national income and the minimum purchasing power of the domestic market The second factor is the reluctance of joint venture partners to share the cost of high-end electronic product lines Finally, the pricing strategy is influenced by the foreign market availability of Samsung Electronics' consumer electronic products, particularly in the United States

To further create layers of competitive advantage, Samsung Electronics recognizes the importance of rebranding and corporate image This strategy has helped Samsung Electronics strengthen its global position in the consumer electronics products and services market as a major competitor This strategy enabled Samsung Electronics to transform from a low-profile electronics manufacturer into a market-oriented global enterprise in 1999 Samsung Electronics won the position market leader in the memory chip industry by emphasizing the brand name and corporate image This has allowed it to outperform other competitors in the market, such as Nokia, Philips Electronics and Sony Electronics

b) New market segment marketing strategy

Approach to achieving global competitive advantage implemented by Samsung Electronics Company concerns searching for loose blocks in the consumer electronics industry This is an innovative approach where Samsung Electronics Company ventures into new market segments not exploited by rivals in the industry Samsung Electronics Company achieved this by acquiring new technological know-how for its unique consumer electronic products

7 with other players in the industry For instance, in 1971 Samsung Electronics Company joined Sony Electronics of Japan to produce its first-ever TV set, in 1982 joined Phillips Electronics to produce color TV Samsung Electronics Company has gained substantial knowledge from these joint ventures, among others, and has used this knowledge to produce superior consumer electronic products than those of competitors

c) Changing the terms of engagement Strategy:

Renee Kim, author of Samsung's Competitive Innovation and Strategic Intents for Global Expansion, says the approach to gaining a competitive edge in the global consumer electronics industry is to change the interactive landscape Samsung Electronics has gained a competitive edge in the global consumer electronics industry by defining industry attributes and market segment boundaries Samsung Electronics' management method is fast in making investment decisions and is sensitive to the size and price of home appliances In the mid-1990s, Samsung Electronics decided to enter the large LCD market, which competitors such as Philips and Sony of Japan were reluctant to

Samsung Electronics also changed the terms of cooperation to lead the home appliance industry Technology leadership enables Samsung to produce differentiated consumer electronics products and set the standard for other industry participants and competitors Innovative consumer electronics products produced through Samsung Electronics' technological leadership include Mobile WiMAX, a next-generation wireless technology, and 16GB 50nm flash memory

8 1.2.2 Organization Structure

An organizational structure is a system that outlines how certain activities are directed in order to achieve the goals of an organization These activities can include rules, roles, and responsibilities Samsung has an overall division into small parts according to different quality criteria, those parts perform separate but closely related functions to realize the common goal of the organization

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 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:

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:

business-care equipment business-communication solution business

9

➢ Consumer Electronics ➢ Device Solutions ➢ IT & Mobile Communications

In addition to Product-type divisions, Samsung also has some other characteristics such as

Centralized corporate hierarchy Geographical groupings, ,& all of them make up a complete organization structure By the ways, to evaluate Samsung's organizational structure, we have a few points to keep in mind:

The combination of multiple models allows the organization to take advantage of the advantages of the main organizational model while at least reducing the impact of its disadvantages The various advantages of this model are:

Helps to handle extremely complex situations;Works well for large organizations;Allows specialization of some organizational structures.

In the other hands, this organizational structure is complex, may lead to the formation of parts and sub-modules that are too small, and may increase the weaknesses of each type of model rather than the advantages However, the correct combination of pure models can reduce the aforementioned disadvantages.

Organization Change and Innovation

Samsung today is an unquestioned global technology leader yet, in this complex and competitive –global landscape, the company has been embarking on an active course to transform itself, navigating emergent challenges and new technology categories, as it sets course for the future.

A major driver in this transformation has been Samsung's expansion in Silicon Valley, where the company has roots for over 30 years Since 2012, Samsung has been investing heavily to expand its operations and strategic partnerships in the valley, assembling a cadre of area veterans and innovators to cultivate emerging areas such as AI, health, IoT, and the cloud, and at the macro-level, to transform Samsung's own organization and operations

10

Samsung Strategy and Innovation Center (SSIC) (est 2012): SSIC's mission is to develop and accelerate technologies through open innovation, investments, and acquisitions by working in collaboration with entrepreneurs and strategic partners Its investment arms, the Samsung Catalyst Fund (SCF) as well as in-house M&A team, have hit the ground running since inception.

Samsung NEXT (est 2013): Samsung NEXT (formerly Open Innovation Center; Global Innovation Center) partners with innovators to build ideas into products, and grow products into businesses that scale, leverage and transform the overall Samsung ecosystem.

Samsung Research America (SRA) (est 1988): SRA, which has campuses across North America, researches and builds new core technologies to enhance the competitive edge of Samsung products, and strengthens open innovation by leveraging key relationships with start-ups and academic institutions SRA consists of several labs from the Mobile Payments and Security Lab which focuses on technologies like Android, Knox, and Samsung Pay to the Digital Solutions Lab which feeds into Samsung's visual display business to the Computer Science and Innovation Center focusing on areas like AI and convergence.