This report focuses on Samsung's management strategies setting them apart from its competitors and catapulting them into achievement of their mission and vision. It highlights on the small practical progress that Samsung has achieved which brings it closer to its vision. This report further explains two managerial concepts revolving around Samsung's supply chain and distribution and acting as a market reader. The report includes the management structure which is hierarchical in nature and explores how it has benefited Samsung.
1.0 Overview of the Organization
This section highlights the company’s information acting as an essential part of business plans and reports. In this case Samsung engineering’s overview will be provided, while highlighting its history, location, mission statement, management team, and the legal structure.
Samsung engineering was founded in 1970 and has become a globally recognised name from the humble beginnings of a domestic engineering company (Smith-Ditizio " Smith, 2019). For the purposes of attracting talent all around the globe, Samsung engineering has widened its business portfolio with the following services: power plants; upstream and downstream hydrocarbon; industrial production facilities; water treatment; and waste treatment. This company is able to provide a dependable value to clients around the globe through cost-effective and innovative engineering with an efficient and flexible management. With the company’s focus on future, it places itself in the lead in contributing towards established and emerging industries. It is in their mission to create and pursue the future value for clients through excellence in engineering (Smith-Ditizio " Smith, 2019).
2.0 Introduction
This report is aimed at communicating information resulting from research and analysis of Samsung’s data and issues related to it. This report will focus on the different managerial strategies related to Samsung engineering company (Bolman, 2017). The report further goes into how Samsung has managed to get innovation into the market and how they come up with products for different markets. Samsung’s operations management can be viewed through three different eyes which are design of effective systems, a continuous blueprint, and an efficient control system and institution that put emphasis on hardware, software, component designs and solutions. It is, therefore, important to analyze some of Samsung’s managerial strategies, tools, and methodologies used to maintain a leading and an ever growing role in the technology and engineering industry. Such an analysis will help in understanding how Samsung, through management, is able to create the future and inspire the world through innovative technologies, designs, and products that impact the lives of people and ensure social prosperity.
3.0 Findings
The findings on the managerial structures of Samsung reveal that the company applies a hierarchical managerial structure and uses a different management concept in its supply chain and distribution as it manufactures its own chips which totally change their supply chain and distribution. The company also applies another concept where Samsung takes the position of a ‘market reader’ in the market.
3.1. Topic and Organization
Samsung’s organizational structure. Samsung management structure is hierarchical in nature. This structure makes many of its workers to work for their bosses rather than the
company or on the other side, the clients. The multiple layers in Samsung’s management structure have the effect of getting employees into playing politics and focusing on jobs that make their bosses happy. Employees of Samsung have their work morale aimed at their bosses and not the company. This has a negative impact of getting employees to focus on tasks at hand with little understanding of how that task connects to the bigger picture (Elsbach, 2018).
Samsung engineering management strategies. Samsung’s success and expected future success greatly depend on the management strategy that they implement. Many companies have confirmed that having and working with strategies is important for the success of any company. Samsung’s CEO recognizes this in place when the organization increases and improves the performance. It is, therefore, important for Samsung engineering to adopt better strategies for management of the organization for the following reasons.
Strategies assist in planning. This is mainly because progress is tracked against annual operating plan which creates a relationship between the company’s present and its future. It provides the company with a clear blueprint for its future. A well written long-term view of Samsung’s strategies serves to inform the annual operating plan, with the annual plan becoming a stepping stone towards the successful achievement of long term goals (Dayan, 2017). Organization’s strategies tend to increase the level of awareness and give focus on actions that will consequently result to the success of the organization. Plans that close the capability gaps in any organization and help in leveraging on strengths happen to increase the company’s success (Kerzner, 2017). Strategies have the ability to define organizations designs and even drive them. For this reason, through the pursuit of knowledge and skills the organization is able to prepare for the future and create more chances for success (Soulard, 2017). Due to the finite nature of
resources, it requires strategy for better resource allocation. Therefore, organizations, like Samsung need strategies in order to make informed choice on resources and their allocation. The same strategies assist in scanning of the environment in terms of the positive and negative impacts on both, the internal and external environment.
Samsung’s strategies have helped in analysis how to be in tune with the customers and in identification of competition by creating awareness and being prepared for market shifts. They need this especially with recent competition from Chinese companies which have better strategies that have seen them lead the market (Wheelen, 2017).
Samsung’s chain and distribution. Samsung is not just a smartphone-maker but it is a conglomerate, world’s largest chip-maker, and also a manufacturer. It makes a number of components which comes with a cost advantage and allows the company to be flexible in relation to what they produce and at what time. Competitors, like Apple, despite having a diverse, futuristic, and a well-managed supply chain, greatly depend on external partners which may result to delays and difficulties. Despite its effort to get away from Samsung chips, competitors still have to buy them which finances Samsung’s cost advantage in the long run. Samsung has also taken tremendous leaps in distribution as their products are at a much lower price and in more places than those of Apple (Hill, 2017).
3.2. Managerial Concepts
Concept one. Samsung has applied a hierarchical structure which has been accused often to be dominated much by its founding family. This structure comes with its advantages to Samsung. This structure favors their ambition and commitment. The company is considerably committed when it decides to enter into business. It simply goes hard. Gauging from the past decade, the company moved from a small investor in designing and making flash memory and batteries for digital devices to being a global leader in this (Nicholas, 2017).
Concept two. The other concept that Samsung has applied in its operations is being a market reader by making people to think Samsung. They are a classic fast followers meaning that they focus more on what the competitors are doing and what is being brought into the market without ignoring the customers. They practically observe things that gain attraction and then come up with their own version of that kind of innovation. Considering such an approach, Samsung jumped five spots in three years as the world’s most innovative company (Hislop, 2018).
4.0 Conclusion
According to the lessons derived from Samsung hierarchical structure it will be right to recommend a similar but focused on employees’ morale structure. Such a structure will help in directing their interest on company’s goals rather than bosses’ ones. In the area of supply chain companies need to have such an approach if they aim for reduced cost of production. It is, therefore, a preferred way of managing companies that are committed to the reason for their existence and aim to impact the industry positively. Samsung galaxy happens to be the company that others should consider for benchmarking.
References
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Elsbach, K. D., " Stigliani, I. (2018). Design Thinking and Organizational Culture: A Review and Framework for Future Research. Journal of Management, 44(6), 2274-2306.
Hill, T. (2017). Manufacturing strategy: the strategic management of the manufacturing function. Macmillan International Higher Education.
Hislop, D., Bosua, R., " Helms, R. (2018). Knowledge management in organizations: A critical introduction. Oxford University Press.
Kerzner, H., " Kerzner, H. R. (2017). Project management: a systems approach to planning, scheduling, and controlling. John Wiley " Sons.
Nicholas, J. M., " Steyn, H. (2017). Project management for engineering, business and technology. Routledge.
Smith-Ditizio, A. A., " Smith, A. D. (2019). Samsung Company and an Analysis of Supplier-Side Supply Chain Management and IT Applications. In Advanced Methodologies and Technologies in Business Operations and Management (pp. 1249-1262). IGI Global.
Soulard, J., " McGehee, N. (2017). Glocalization Management Strategies of NGOs Engaged in Transformative Tourism.
Wheelen, T. L., Hunger, J. D., Hoffman, A. N., " Bamford, C. E. (2017). Strategic management and business policy. pearson.
