Founder Of Samsung Electronics Commerce Essay

Samsung was named by Lee Byung-chul, laminitis of Samsung Electronics when he found the Samsung avocation Comp any(prenominal) on March, 1938. Sam in Samsung is defined as strong, gigantic and large slice Sung means high and bright. ( Chnag, J. H. , 2010 ) Interestingly, Samsung s base was non affecting electronics. Initially, Chairman Lee set up a pot export alliance in Korea that s centenarian fish, veggies, and fruit to China. Start from 1958, Samsung began to spreadhead tabu into other(a) industries much(prenominal) as media, fiscal, ship edifice and chemicals and Samsung Electronics was established under subordinate of Samsung Group in 1969. ( Samsung biography ) The lodge so expanded to semiconductor reverence and became the first chip- make ins statelyations in the state during that clip. Samsung Electronics focused on four countries which argon digital media, semiconducting tangible, telecommunication nett and LCD digital contraptions. ( Wikipedia , 2 012 ) In 1993, the lightest fluid phvirtuoso of its epoch was developed. ( Samsung History ) Finally, it surpassed Sony to go cosmea s twentieth-largest and roughly popular interchange name. Samsung was the innovation s largest maker of OLEDs with 40 % market factor universes broad and 90 % portion of sublunary AMOLED market. More than 600 Ameri hind end patents and 2800 international patent be owned by Samsung Electronics in 2006 that makes it as the largest proprietor of AMOLED engineering patents. The union besides became the second-largest mobile-phone shaper crushing Motorola in 2007 for the first clip. In 2009, it became universe s largest engineering smart set catching Hewlett-Packard step by unrefined revenues. In 2010, it produces 30 nm-class DRAMs and 20 nm-class NAND flashes which were the first clip in the universe. At 2011, it is the universe s largest Mobile phone shaper and second-largest semiconducting material bit shaper. Samsung Electronics became t he largest wise(p)phone seller due to gross revenues of Galaxy SII and Galaxy line of descent devices. ( Wikipedia , 2012 )ContentssMechanistic organisation is a bureaucratic organisation which adheres to the chain-of- dominate rule, with each one-on-one obligeled and supervised by one higher-up. The reflexion of this organisation is taller than fundamental organisation. Besides, many regulations atomic number 18 developed and the endeavor devising procedure is centralized. Each employee has wintry responsibilities and the communicating channels argon formalized in such rigorous hierarchical relationship.Samsung Electronics is a type of mechanistic organisational construction because it has stiff hierarchal relationships.Figure 1( Chang, S. J. , 2008 )Figure 2( Chang, S. J. , 2008 )Figure 1 and cast 2 show the concatenation of bid in the company, which widening from velocity organisational degrees to back away down degree that clarifies who reports to whom. Figure 2 s hows that there ar tonss of sections under the control of Chief Executive righteousness. Employees realize their unyielding responsibilities in several(prenominal) section. For case, employees who argon specialized in plant forthing french friess argon working under french friess maker whereas employees who ar extremely arch(prenominal) in bring forthing nomadic phones are working under nomadic phone maker. ( Robbins, DeCenzo, and Coulter, 2012 ) These cardinal figures besides clearly show that Samsung Electronics is composed of tall organisational construction. every(prenominal) of the powerful goernments are held by the pass away setion of the company which is Lee Kun Hee, the prexy of the Samsung Electronics with the aid of the Office of Secretaries and sometimes referred to as emperor transmition or absolutism . ( Chang, S. J. , 2008 ) Office of Secretaries helped president to command and direct the single accords. Their chief map are finance and accounting, s crutinizing, planning, public dealingss, and military man resource direction, including the hiring and fire of all executives within the organisation. Even the of aftermath strategical determination and ample investing determination have to be examined by the office foremost. The per centum of determination made by the president is 20 % by Office of Secretaries is 40 % by affiliate presidents is 40 % . ( Chang, S. J. , 2008 ) In other word, all of the of import determinations are decided by the president, Office of Secretaries and affiliate presidents. As such, Samsung Electronics implement centralized determination authorization.The communicating channel of Samsung Electronics is formalized. formalization describes how an organisation s occupations are standardized and the extent to which employee behaviour is steer by regulations and processs. This component makes the procedure of sequence modus operandi and regular. Therefore, there will be minimum perturbation to an organ isation map if there are flock world switch overd. In Samsung, the forces map is under chief financial officer while CFO studies to and receives orders from CEO. ( Chang, S. J. , 2008 ) For case, when the company bespeaks to do an investing, the proposal is written by the think concern unit. Then, the proposal is reviewed by the finance section, which is so passed to finance police team of Office of Secretaries after CFO reports the proposal to CEO. Finally, the proposal is approved by Office of Secretaries and Chairman. ( Chang, S. J. , 2008 )Many regulations could be found in Samsung Electronics and this lucifer with the receive of mechanistic organisation. Harmonizing to Samsung Electronics world(prenominal) recruit of Conduct, all the employees should preserve the codifications and the concern rules to follow with Torahs and ethical patterns both bit good as to show their allegiance to societal duty. ( Samsung Electronics Co. , Ltd. SECL , 2006 ) The erratic cod ification of behavior is served as behavioural guidelines and faultfinding(prenominal) criterions for the employees, which pass over the riddance of nationality or g finaleer favoritism, crystalline revelation of concern information, client information protection and spouse coaction. For illustration, harmonizing to principle 2-2-2 from the Global Code of Conduct, the company will fasten that any proprietary information acquired finished its concern activities shall be recorded and safely kept and managed as clear-sighted belongings. In 2011, zero-tolerance rule was declared in all instances of misconduct and wrong concern on Law Day . All employees and executives have to fill a pledge of conformity to h senescent of taking duty for any misdemeanor or misconduct. ( Soung, S. S. , Eui, H. J. , Dae, S. P. , Jin, Y. L. & A Yun, J. S. , 2012 )PlanningPlaning includes specifying ends, set uping scheme, and developing programs to bring up activities. In Samsung, their vision is set by the eliminate direction that is exhilarate the universe, create the hereafter . This vision 2020 shows that their committedness in animating the universe by bettering their three key strengths which are New Technology , go on Products , Creative Solutions and besides promotes Samsung Electronics nucleus web which are industry, spouses and employees with the attempt to make for a better universe and with batch of experiences for all. Besides, Samsung besides aims to accomplish one of the crystalise five trade names in the universe by 2020 and established three strategic attacks in direction which are creativeness, alliance and endowment. ( Vision , 1995-2012 )( Vision , 1995-2012 )LeadingLeading includes actuating employees, directing the activities of others, choosing the most effectual communicating channel, and deciding struggles. Office of Secretaries posits the taking function in Samsung as they carry fall disclose coordination whenever there are str uggles happen. ( Chnag, J. H. , 2010 ) However, the synergisms may be created via nonvoluntary cooperation or decree as the concern units have to necessitate its declaration. ( Chang, S. J. , 2008 ) Besides, the Secretarial Offices spread company doctrine and better concern coordination and information, which are shared among affiliates. ( Chnag, J. H. , 2010 ) The employees of this company are motivated by the doctrine of vivification by strong values is the key to good concern. Those values encompass people, excellence, alteration, unity and co-prosperity, together with the Samsung codification of behavior are the extremist for them to do every determination. ( About Samsung , 1995-2012 )OrganizingForming includes finding what undertakings are to be done, who is to make them, how the undertakings are to be sorted, who reports to whom, and who will do the determinations. Samsung Electronics has a strong concern role construction that is managed independently by concern unit d irectors. The company is change integrity into five sectors, which are Digital Media, Semiconductors, Telecommunications, Digital Appliances and LCDs. Within these sectors, there are 13 Global Business Managers ( GBM ) who responsible to form the house along major merchandise divisions in footings of forces, gross revenues, and production within their several divisions. ( Chang, S. J. , 2008 ) Employees are divided harmonizing to their specialize and accomplishments into different undertakings to increase work end product. ( Robbins et al. , 2012 ) Any proposal of investing that is written by GBM should be reviewed by the finance section, followed by CFO. Then, CFO reports to CEO. Finally, the proposal is approved by Office of Secretaries and Chairman. ( Chang, S. J. , 2008 )ControllingControling includes monitoring public presentation, comparing it with ends, and rectifying any important divergences. In Samsung, the overall public presentations of BOD, CEO and employees are contro lled by Audit Committee, which has a wide scope of audit right from top to bottom. ( Ethical motives vigilance , 1995-2008 ) For illustration, they have the right to ask about fiscal studies from the BOD and employees at any clip, the right to claim to suspend illegal activity of the company BOD member, the right to name a general stockholders meeting and so on. There are besides separate audit squads that under the direct control of CEO with the responsible of promoting employees to adhere to the pattern of direction by moralss. ( Ethical motives Management , 1995-2008 )A ) What guaranteem to be the most of import things taking to the success of the SamsungElectronicss?To be successful, Samsung Electronics is travel planetary. Samsung Electronics is forcing the Galaxy S smartphone to remainder Apple Inc. s iPhone and contract the spread with leader Nokia Oyj. It helped Samsung Electronics quadruplicate annual gross to139 trillion won ( $ 116 million ) in the 10 old ages t hat ended in 2009. Samsung Electronics portions rose 10-fold during that clip. ( Lee, Y. , 2010 )Besides, Samsung Electronics has the good planning accomplishments as they able-bodied to see the concern aspect in the industry and set the rum ends to prosecute. They able to descry the countries, which are little but turning fast. ( Samsung , 2011 ) much(prenominal) countries that spotted by Samsung are capital-intensive. Therefore, it is hard for their challengers to maintain up. First, Samsung will bung into the engineering in the industry to acquire familiar with it. Then, they will bide for the suited minute that the window of chance clears. For illustration, in 2001, Samsung catch the chance of rapid growing of the liquid-crystal shows that cause the honkytonk of the monetary value. They turned the liquid-crystal shows into telecastings. ( Samsung , 2011 )Samsung Electronics is mature in software product and David Yoffie, a professor at Havard Business in til now in Boston said Leading extremist invention in the engineering universe today requires strength in package, non merely hardware. ( Lee, Y. , 2010 ) . Samsung Electronics has crowing by analyzing their challengers to better fabrication and design. Samsung electronics besides hired a group of Nipponese Design Consultant to measure Samsung interior decorators. Besides, their experient interior decorators are sent to work abroad in diverse industries. By making this, Samsung design scheme could affect several enterprises and they began to implement a planetary trade name communicating scheme. As naked engineerings are being invariably introduced to the market, Samsung engineers strive to understand what clients need in front of rivals and chastise their thought to develop original and advanced merchandises that will run into those demands every bit good as new engineerings to take the future market. Therefore, the new markets had pioneered continuously by them. ( Samsung Electronicss Success By Design, 2008 )B ) What do you see as the major challenges confronting by Samsung Electronics over the followingfive old ages?The major challenge that will be faced by Samsung Electronics over the following five old ages is how to construct a stronger and better planetary trade name. This is why the Samsung s planetary selling manager need to measure in how to construct the planetary trade name eminence of the company farther and upgrade the company s worldwide trade name image to vie with Apple trade name which has reign the market portion particularly in Western Europe. The challenge of Samsung s selling manager is the branding schemes in planetary markets and the selling squad has to analyze the organisational kineticss to develop a stronger planetary trade name that acknowledge by worldwide.Another challenge that will be faced by Samsung Electronics is the competition over the market portion particularly in smart phone. In this fast paced economic conditions, Samsu ng need to go on bring forth more and more of the smart phone with improved mutant and attractive design to run into with the rapid economic growing. The company necessarily to put and present more of the new engineering and integrate the package and application into the new toilet facilitys so that it will non lose out to other rival. Invention and creativeness are of import in this to pull the appliance lover and if the company fails to come out with a new and appealing merchandise, they will be overcome by another rival such as Apple, HTC or Nokia.FindingssSamsung electronics have a centralised construction doing the top direction own the governments and powers over all the of import determinations. This make the determination doing procedure fast and fleet and can transport out rapidly. In this manner, organisation is more efficient as execution of any programs, thoughts or policies can be carried out rapidly without any hold and this is truly of import particularly to cov er with the fast paced economic and competition in market. This is supported by a survey in diary by Choong Y.Lee. ( Choong, Y. L. , 2012 ) However, overly centralisation in organisation is besides non good for the company. All of the of import determinations are made by the top direction while the center and first line direction can non voice out their sentiments but to follow the order of the top. If the determination made by the top direction is wrong, it can impact the company concern and therefore take downing the company net incomes. Therefore, a good leading is of import to take the company. This is supported by the professor Chang Sea-Jin which stated there is no warrant that good leader will prolong and even they can do error as good in his book reappraisal. ( Chang, S. J. , 2008 )Samsung Electronicss are holding hierarchal direction construction which reflects the importance of senior positioning in the Korean civilization. The hierarchal construction brings synergism whe n things are traveling good but could potentially be black if one portion of the procedure goes off from planned. ( Kim, J.C. , 2012 ) This is supported by Professor John Kotter in his article Havard Business Review that hierarchal organizational are oft inflexible. Hierarchical organisation work in standardised procedures but does non profitable in dynamic environments. They are slow to respond to new chances, which frequently require transformative alteration. ( Basu, C. , 2012 )Besides, harmonizing to research workers G.M. Stalker and T. Burns, mechanistic organisations use hierarchal top-down constructions while organic organisations use more flexible constructions and work scoop out in fluid and unpredictable concern climates.A Organic structures depend on personal interactions instead than a formal concatenation of bid that suffer the organisation to react rapidly and efficaciously to altering fortunes in shipway that the hierarchal construction can non. Samsung Electr onics should do it concern to understand such construction so that it can hold the benefits of both. ( Thompson, S. , 2012 )Samsung Electronics has many regulations and ordinances that are governed by the top directors of the organisation. When the top directors are unable to command the lower-level activities, they themselves will replace the regulations and ordinances. Since they have the authorization to engage and fire the executives and employees in the organisation anytime, the employees have to accept the undertakings given by the directors and follow whatever they said. Employees are invariably observed and monitored by top directors during their on the job period to guarantee that they are non doing any errors or go againsting the regulations. Consequently, fatigue are stack away when employees are working under such great force per unit areas that known as organisational weariness.Furthermore, employees of Samsung Electronicss have to follow the Global Code of Conduct, w hich consists of a figure of rules. ( SECL, 2006 ) For case, under rule 1-4-1, it stated that employees shall non impute their personal policy-making sentiments and behavior to the company, or do such sentiments or behavior to be attributed to the company . Besides, rule 2-4-3 showed that the company will non let its officers and employees, while in office, to move as figure of boards of company with struggles of involvement or take part in competitory concern activities. ( SECL, 2006 ) There are still a big sum of regulations and rules that the employees should follow with and that can be referred from the Global Code of Conduct, 2006.The direction of Samsung Electronics is known as fear-based direction . The employees have to be loyal to their company in order to remain in the company. However, organisational weariness will convey negative effects to the company. If the employees or executives are disregard against their volitions for any grounds by the top directors such as the president or the Office of Secretaries, their choler will take to their treachery and mischief their trueness. ( Chang, S. J. , 2008 ) There were several instances on which the employees of Samsung Electronics tried to sell the proprietary engineerings to Samsung s rivals and to other companies. ( Chang, S. J. , 2008 )DecisionIn a nutshell, Samsung Electronics has a mechanistic organisational construction as it has stiff hierarchal relationships and tall organisational construction. In the company, each employee has fixed responsibilities and they have to follow tonss of regulations. Besides, the determination devising procedure is centralized and the communicating channel is formalized. In Samsung, the ends or visions are planned by the top direction. Office of Secretaries takes the taking function as they responsible to work out the struggles every bit good as aid the president to command and direct the single affiliates. Besides, they besides spread the company doctrine to remind the employees. Samsung Electronics is divided into Digital Media, Semiconductors, Telecommunications, Digital Appliances and LCDs, which are managed by concern unit directors. The overall public presentations of Samsung Electronics organisation are controlled by Audit Committee.In this assignment, we have learned the features of the two types of organisational constructions, which are mechanistic organisation and organic organisation that concern the work specialisation, departmentalization, authorization and responsible, centralisation and decentalisation, span of control and formalisation. After analysing these factors and seeking all the related information of Samsung Electronics, we could reason that this company is a mechanistic organisation. Therefore, our analysing ability could be strengthen when carry out this assignment. Besides, we have a better apprehension to acknowledge and distinguish these two organisation theoretical accounts. Furthermore, more cognition abou t this company could be gained during the research.