Introduction
The report’s main aim is to analyze Samsung’s institutional and managerial performance and provide recommendations to eradicate drawbacks and promote growth. The company is a multinational electronics corporation with its headquarters in Korea; it contributes to producing mobile and smartphones, laptops, tablet computers, image sensors, displays, image sensors, and lithium-ion batteries. In the international market, the brand is represented by its associated businesses, Samsung heavy industries, engineering, electronics, and life insurance. It is the world’s largest technological company in terms of sales volume due to its popularity in producing quality gadgets. Samsung has its own operational and directing approaches that enhance quality performance. Like any other firm, the brand has its challenges, strengths, and weaknesses. The report will provide proper insight into the brand’s competitive positioning, challenges, and how to overcome them. Change is vital as it enables corporations to grow and succeed; it leads to many positive aspects as drawbacks are addressed efficiently. The performance of Samsung can be improved through PESTLE and SWOT analyses; this will help identify the organizational and directorial changes that need amendment and thus offer proper recommendations.
Samsung Company Analysis
The international business strategies of Samsung, including market-driven schemes that accept change, are the resultant factors for its growth. Apart from the range of products the firm produces, it has a broad marketing reach making it the most popular consumer brand. The global approaches include proper corporate and managerial structures which promote growth (Wong & Lee, 2021). As the preferences and taste of clients changes, the brand adapts to stay relevant in the market. One unique strategy the firm uses to satisfy the large consumer population is providing different models of electronics at various prices (Wong & Lee, 2021). The system adapts its products to suit each market’s preference. Its institutional structure differs from the other brands and is based on product types. Due to its production of various merchandise, it uses several resources, including minerals like cobalt and lithium (Wong & Lee, 2021). The firm’s external and internal environments are easily understood using the PESTEL and SWOT analyses. They promote an understanding of the strengths, weaknesses, and challenges inhibiting growth, and potential solutions are identified.
Organizational Structure
The institutional culture of the company is designed to enhance high-tech inventions. Engineering invention is at the heart of the organization’s strategies; this can be seen from the rapid introduction of new devices in the market, especially smartphones (Evans, 2019). Due to its diverse markets and industries, Samsung adopts different operating management plans. The corporate structure facilitates effective business penetration, empowering competitive advantages that support growth and continuity. Samsung assumes using a product-type divisional association structure (Evans, 2019). The company’s entire corporate system revolves around commodities; product categorization determines what business operations and resources belong to a particular division. The three main divisions are consumer electronics, information technology (IT) and mobile communications, and device solutions; each further contains several business sections (Evans, 2019). The first category has visual displays, printing solutions, and digital appliances; mobile communication networks are found in the second group (Evans, 2019). The third segment contains large-scale system integration (LSI) and memory (Evans, 2019). Each sector focuses on innovation, which is central to Samsung’s mission and vision and provides a particular context in sales, production, resources, and distribution operations.
Resources
Samsung company requires several resources to facilitate the production of its many merchandises. The brand is working toward a circular economy by maximizing its assets by reusing and recycling waste electronics (Kim et al., 2019). This strategy reduces the number of natural sources required for manufacturing, thus limiting pollution and emission of greenhouse gas. Top-quality and long-lasting devices are created to ensure the products have low contamination (Kim et al., 2019). Various campaigns have been started to collect end-of-life gadgets to prevent the overuse of castings like cobalt and lithium (Binti Mohd Haizar et al., 2020). Other expedients include technological, physical, and consortium capital resources (Binti Mohd Haizar et al., 2020). A stock of technology can be seen through the many patents Samsung has in the United States. All over the globe, the brand has established itself; capable human capital is retained and attracted by the firm and used for research and development (Kim et al., 2019). The talented workforce results in the realization of unique innovations, thus indicating that organizational capital resort is present.
Business Environment
Samsung’s business plan is associated with more significant variability as it embraces different strategies according to the alteration in the external monopoly. New merchandise development has proved to be a vital system the brand uses and has helped it attain a stronger competitive position in the marketplace (Kim et al., 2019). Higher customer satisfaction is achieved thanks to the standardization strategy (Zhang, 2020). The scheme enables the brand to produce products with varying prices and accommodate all three levels of potential clients, the lower, middle, and upper class. Business-level plots of the corporation include customer responsiveness, technological advancements, differentiation, excellent product invention, and high-quality products (Zhang, 2020). The vertical integration scheme of Samsung is also vital in its competition against big brands like Apple (Zhang, 2020). It promotes influencing all aspects of the production process, from resources to the assembly of the commodity. The PESTEL analysis tool is critical in evaluating the external market environment of an institution. Understanding the shortcomings experienced internally are identified using the SWOT analysis tool. It facilitates an organization’s current and future positions by highlighting its strengths, weaknesses, opportunities, and threats.
PESTEL Analysis
Samsung’s business is impacted by external factors, which can be identified using the PESTEL analysis tool. External market drivers of the brand’s scheme include political, economic, sociocultural, technological, legal, and environmental factors. The firm faces political pressure from the international market, where frequent structures in the governments occuR (Wulff et al., 2019). With the global electronic goods industry growing, Samsung’s market is estimated to develop as it expands to developing nations. The socio-cultural factor is favorable to its growth as the need for electronic gadgets due to modern lifestyles has increased (Wulff et al., 2019). Internet access has facilitated easy purchases as orders are now made electronically. As one of the world’s leading innovative companies, the brand has gained vital technological advancements in the electronic industry. The company is investing in automation to produce creative and innovative gadgets. Besides heavy investment in manufacturing large amounts of electronic products, Samsung ensures it does not compromise the environment; the firm recycles old devices (Wulff et al., 2019). Lastly, the brand is required to comply with productivity and environmental regulations. The brand has faced heavy penalties due to allegations against its imitation of Apple products.
SWOT Analysis
The SWOT analysis is critical in determining the factors that impact business growth internally within an establishment. Proper strategic planning requires using this tool to identify the strengths, weaknesses, opportunities, and threats the brand might face. The stability of Samsung includes the dominance of the smartphone market. In a recent report, the brand maintained its number-one position above Apple and Xiaomi (Hidiroglu, 2021). It is an award-winning brand with a solid image and product portfolio. It is also widely known for its ecologically friendly innovations, which result in minimal pollution. The firm’s significant weaknesses include the overdependence on the android operating system and the American markets (Hidiroglu, 2021). Despite diversifying its resources and expanding operations in the Asian market, Samsung is still heavily dependent on the US economy. Other common shortcomings include higher dependence on the smartphone market and product failures. The opportunities presented to the brand include increased market share in Asian countries, human resource management, recycling of electronic waste, technological advancement, and launching new merchandise (Hidiroglu, 2021). Common threats the company faces include competition, patent infringement, and changes in government regulations.
Organizational and Managerial Changes to Improve Performance
Company performance is critical for its success in the market and can be facilitated by adopting proper governing and managerial structures. In case of any challenges, changes must be made to make the approaches more effective and efficient. Standard practices that can be adopted to improve organizational performance within a firm include employee training, maintaining a digital workplace, clearly defining the vision and mission, using human resources, and keeping customers in mind (Burnes, 2017). As identified, the workforce employed by Samsung is responsible for the unique designs of its gadgets. As seen, the employees need to be trained as they play a vital role in the organizational effectiveness of a brand. It only works well when the interests and needs of customers are met as they are the consumers. Besides the directorial change, managerial modification is also vital; performance change management results in identifying leadership, execution teams, investors, and stakeholders (Fu et al., 2022). The groups are present to minimize risks and ensure clear communication within the firm, thus promoting good working cultures that result in better performance.
Business Organizational Structures
Samsung’s divisional institutional structure leads to its separation into three key segments. Its subdivisions include IT and mobile communications, consumer electronics, and device solutions (Jun & Rowley, 2018). The main factor resulting in the adoption of this system is the differences and extensive device portfolio between merchandise and services the brand offers to its clients. Other subsections incorporated in the firm’s organizational structure include the Samsung Advanced Institute of Technology (SAIT) and the corporate management office (Jun & Rowley, 2018). The two deal with the emergence of new services and gadgets and the organization’s overall management, respectively. The system adopted is crucial, possible, and necessary as the firm offers a wide range of services and products worldwide. Samsung also adopts a flat structure, hence why it has a high speed of implementing new strategies as change trends in the market occur (Wong & Lee, 2021). Recently the brand has moved from a hierarchical management structure and now adopts one that relates performance to employee rank. The brand’s corporate design is more of a centralized joint hierarchy, with its main headquarters in South Korea.
Organizational Changes Needed
The system adopted by Samsung can adopt changes to facilitate its effectiveness in the market and company growth. Organizational change in this sector is critical as there is a need to use one that defines each employee’s roles and promotes the realization of company objectives. I highly recommend adopting the network organization structure in the future. The advocated system is far more suitable for an international firm operating in the contemporary era. It organizes relationships among departments in a single and different location. Unlike the currently used method, it is decentralized, giving lower-level teams the mandate to make necessary decisions that benefit the company. Through employee collaboration, innovation and communication are enhanced, providing quality services and products to the clients (Burnes, 2017). In a large and international business, the system clearly outlines the chains of commands and workflows; flexibility is boosted due to the ability to communicate freely between employees or departments, even in various locations (Burnes, 2017). The new model can deliver quality results in creating new product development teams and increasing competition.
Importance of Organizational and Managerial Changes
Operational and departmental modifications should be required to help the firm develop and grow. Change management facilitates the successful usage and adaptation of transformation within an enterprise (Burnes, 2017). Samsung needs to employ more individuals to increase the workforce in all its branches worldwide. Transformation management is highly recommended, especially in the human resource department, as the brand outsources or utilizes its employees. Each year the brand continues to employ, contract, and outsource more and more personnel. The trend reflects a constant stream of change that occurs in most establishments hence the need for significant managerial and governing change within the company (Muthusamy, 2019). Other vital introductions, such as a new global code of conduct, can be attained with modifications. It will guide each employee within the brand to express themselves in a particular manner worldwide in all its branches. Alterations are necessary if a new authoritative structure is to be adopted. With the company experiencing weaknesses, threats, and opportunities, change is inevitable to eradicate shortcomings and accommodate new openings. Without proper planning, Samsung might get out-advanced by close rivals like Apple.
Approach to Organisational Change
Businesses are constantly changing due to local and international external market changes. An effective modification can be realized by adopting Lewin’s change management model. It is one of the most popular, accepted, and practical theories, making it easy for organizations to understand structured and institutional alterations. The approach contains three main stages: unfreeze, change, and refreeze (Hussain et al., 2018). According to Lewin’s method, the first step involves preparing for the alterations. It is vital to prepare those ordinarily resistant to change to come on board and embrace the new introductions (Hussain et al., 2018). A detailed explanation is provided on why the existing practices need to be eradicated and change adopted to bring growth and development. Step two entails change; this is where the actual transition occurs and may take time. With proper leadership, the transformation is smooth as effective communication and time are embraced (Hussain et al., 2018). The last step is freeze; here, the transitions have already been established, accepted, and embraced, and the firm becomes reliable again (Hussain et al., 2018). With stability, the workforce gets comfortable and provides quality services leading to development.
Managerial Recommendations
Governing transitions within a firm result in future growth as proper planning gets adopted. The managerial choices I advocate for influence sound strategizing for adequate company development. As one of the largest organizations in advanced technology and electronics, the firm requires proper management to stay relevant in the rivalrous environment. A competitive advantage needs to be identified first; its components include value proposition, target market, and competitors. First, the cost leadership strategy must be implemented; the goal is to be the lowest provider of services and goods. It can be attained by developing standard quality products at a more competitive price and less than other comparable items. The differentiation proposal should also be considered; it results in designing unique products that are different from the competitors. The business can convince customers to pay a higher price by providing special merchandise, resulting in profits. The third choice is the adoption of the focus element, which helps identify the needs of a target market and thus produce items relevant to the population.
Recommendations to Senior Management
Implementing change within an organization requires an effective corporate structure that will identify the transition, develop a plan and ensure it gets implemented. The senior management should follow the recommendations below to fully realize the above-mentioned managerial transformations. Any successful change management needs to prioritize people as they are the ones that fuel the transition and sustain its momentum (Evans, 2019). Transmission fails when the workforce does not understand or believe in the advocated changes (Tabesh et al., 2019). Samsung’s organizational culture is traditionally seniority-oriented (Muthusamy, 2019). It prevents junior employees from expressing themselves and putting forward ideas that might be impactful. Through communication, appropriate strategies will be identified to facilitate the realization of the leadership strategy (Tabesh et al., 2019). There is also the need to empower employees; the workforce is the most critical factor within the firm. Humans come up with designs resulting in the provision of quality products.
The top leaders also need to implement a support structure to assist the human resource to practically and emotionally adjust to the new changes to attain desired business results. Unlike the management board, employees are vital in determining the target population as they can interact with potential clients. Adequate training in human resources is also required; this will enable them to adapt to the evolving world and thus become extra productive in innovation (Evans, 2019). It is only through automation that unique items can be created. The management must clearly define and align the change to the business goals. As required, products that are standard in quality need to be provided to accommodate middle and low-class clients. The provision of top-quality items targeting the three classes has resulted in the brand being identified as the top seller of smartphones.
Conclusion
Samsung is known globally for producing quality electronics, from smartphones to television sets, and it is the world’s largest technological company in terms of sales volume. The brand is so innovative that it releases new items to the target market based on their liking. Its revolutionary nature has enabled it to produce unique gadgets with an excellent aesthetic. The devices are also cheap compared to the cardinal competitor, Apple Incorporation. A corporate structure is present and is tasked with overseeing company growth from its main headquarters in South Korea. Resources used in manufacturing the items come from recycling and the reuse of end-life gadgets. The move promotes sustainable development by reducing pollution and depleting rare earth metals such as lithium and cobalt. Its business environment can be clearly understood through the PESTEL and SWOT analysis. The brand needs to adopt managerial and organizational changes that will result in performance growth. Currently, Samsung uses the divisional institutional structure, which can be reciprocated with the network structure in the future. Using Lewin’s change management model, proper transformation can be attained.
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