Samsung Group: Organizational Structure Essay

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To The Board of Directors

Samsung Group is one of the leading companies in the global electronics industry. The company “produces powerful technologies, medicines, petrochemicals, home appliances, electronics, and digital media” (Tong-hyung, 2014, p. 2). Samsung Group is currently reshaping the world using its innovative and reliable consumer products. The company hires competent and talented individuals who have the potential to support its goals.

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Samsung Group also supports different corporate social responsibilities (CSRs). The organization currently collaborates with different partners, stakeholders, and customers in order to produce innovative products. The organization’s vision is “to develop powerful processes and technologies that will empower more people in the globe” (Tong-hyung, 2014, p. 2).

Influence of Globalization on Samsung Group’s Organizational Development

Samsung has provided quality products to its consumers within the last seven decades. The company’s early products included “calculators, televisions, washing machines, and air conditioners” (Hill & Jones, 2012, p. 21). Samsung’s business was mainly concentrated in South Korea and Japan. The corporation “produced new products such as mobile phones” (Hill & Jones, 2012, p. 43).

The company marketed such products in South Korea. Samsung began to produce numerous technological products between 1995 and 2008. During the same period, the organization shifted away from its domestic market. It was the right time to market its ideas and products to many consumers across the globe. This new development forced Samsung to re-invent its business strategy. Several competitors such as Sony, Motorola, and Life’s Good (LG) dominated the global market.

The wave of globalization played a major role towards revolutionizing the corporation’s organizational structure. Lee Kun-Hee decided to form new departments and segments that would support the company’s growth strategy. Samsung began to market its diverse products to different consumers in every part of the world. New market patterns emerged because of globalization. Many countries and corporations began to engage in international trade activities. This development “reduced the level of global competition” (Hernaus, 2011, p. 8). The development was also relevant towards reducing the costs of production. Samsung was on the right path towards realizing its potentials.

Globalization has continued to support new international trade patterns. Such patterns have resulted in “expanded markets, cheap sources of labor, outsourcing practices, and availability of resources” (Hernaus, 2011, p. 10). Samsung continued to “produce numerous semi-conductors, LEDs, and resources for different companies” (Tong-hyung, 2014, p. 2). Many companies also outsourced their services from Samsung. This development resulted in a new organizational structure at the company.

The company’s exhaustion of the Asian and American markets resulted in new expansions. Samsung began to market its superior products to more consumers in Europe, Africa, and Latin America. Globalization has therefore “forced Samsung to redesign its organizational structure in order to address the changing needs of its global stakeholders” (Tong-hyung, 2014, p. 3). This strategy has made the company successful thus becoming a leading competitor in different industries.

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Why Globalization is Necessary for Conducting Business Today

Globalization remains a powerful phenomenon that encourages companies to engage in global business activities. The agreeable fact is that more global consumers are becoming aware of different services availed by international corporations. This single fact explains why globalization remains necessary for conducting various business activities today. This “situation explains why the global market has flattened” (Geiersbach, 2010, p. 124). Many companies have realized their goals and potentials after expanding their operations to other regions.

Globalization makes it possible for corporations to become more competitive. According to Geiersbach (2010, p. 125), “a company that is afraid to participate in global trade activities will take longer before realizing its business goals”. Some evidences show clearly how globalization supports the economies of many corporations. For instance, the emergence of modern technologies has made communication much easier. The development has resulted in better business practices. The formation of the European Union (EU) has supported the economy of many nations across the continent. The Euro has currently become stable than ever before.

The wave of globalization has played “a positive role towards stabilizing different financial markets and business environments” (Hill & Jones, 2012, p. 47). The process has also lowered the impacts of financial and political situations. Most of the countries engaging in international business activities have recorded better economic gains. For example, China has recorded better economic statistics. The number of consumers in different parts of the world is increasing. Globalization makes companies more competitive. It also provides employment to many individuals across the globe (Hill & Jones, 2012). The case of Samsung Group explains how globalization has transformed the lives of many societies and people.

Globalization has also resulted in better infrastructures. Many companies invest in other countries thus providing different products at cheaper prices. This situation has empowered more citizens than ever before. The process has promoted the level of economic development. New markets are “emerging due to changes in legal processes, regulations, and property rights” (Hill & Jones, 2012, p. 96). The strategy “reduces risks because different markets can sustain an organization’s business” (Hill & Jones, 2012, p. 103). Samsung has diversified its products and services in order to address the diverse needs of different consumers.

This influence of globalization is undeniable. Every society must accept the influence of globalization because it results in new opportunities. Globalization also increases “a company’s brand equity” (Geiersbach, 2010, p. 124). The approach makes it possible for corporations to diversify their risks thereby achieving their potentials. Corporations should therefore expand their businesses globally in order to maximize their profits. This development will result in better organizational structures.

How the Influence of Globalization Affects Samsung Group’s Risk Assessment Strategy

International organizations encounter numerous threats and problems. Such “risks have the potential to affect performance and productivity” (Hill & Jones, 2012, p. 98). Local companies might record increased losses when the level of domestic competition is high. Risk assessment is a powerful practice towards dealing with potential challenges that might result in losses. Samsung Group has been managing every threat using powerful risk assessment strategies. The influences and benefits of globalization have been critical towards reducing the risks affecting Samsung’s business strategy (Geiersbach, 2010).

Samsung Group has “globalized” its operations and businesses in an attempt to emerge successful. Samsung exploits new markets after producing better products (Arokiasamy, 2012). For example, the company’s 3D televisions and smartphones have resulted in better gains. The company uses such products to dominate various developed markets in Asia, Europe, and America. Samsung also markets its superior appliances and mobile phones in the developing world. These two markets have been critical towards reducing every risk.

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This Korean company has also been managing its risks using better strategies. The company’s regional departments monitor the risks and challenges affecting its goals (Arokiasamy, 2012). The company monitors every uncertainty in various regions. Samsung Group is currently strengthening its business strategy in new markets. Some of these new markets include Africa, Asia, and Europe. Many parts of the world do not have adequate electricity supply. The company plans to produce new products that will improve its competitiveness. For example, “the company is planning to produce solar panels for consumers in the developing world” (Tong-hyung, 2014, p. 3).

Samsung also strengthens its leadership in every major market. The company identifies new markets for its innovative products. The company analyzes its performance in different global regions before updating its risk management abilities (Hill & Jones, 2012). This strategy has made it possible for Samsung to deal with every market change. The organization is targeting new markets that can support its future goals. The corporation is planning “to harness new businesses such as medical devices, pharmaceuticals, and bio-technology products” (Tong-hyung, 2014, p. 4). It is agreeable that globalization empowers companies to deal with different risks. Samsung can “market its diverse products to many consumers despite the existence of financial uncertainties in certain regions” (Tong-hyung, 2014, p. 5).

Moving Samsung Group Forward in the Competitive Global Environment

Globalization has numerous influences on the performance and competitiveness of different corporations. The global environment has become more competitive than ever before. Many companies are emerging thus increasing the level of competition. Consumers are able to purchase “a wide range of services and products depending on their quality and availability” (Arokiasamy, 2012, p. 153). Samsung must consider these evidences availed by globalization in order to achieve its business goals. The influence of globalization will compel the multinational corporation to invest a lot in its research and development (R&D). The practice will result in superior products that can support the needs of different consumers.

Globalization has made it easier for countries to trade with one another without encountering numerous obstacles. Samsung Corporation can capitalize on this opportunity in order to market its products. Globalization has resulted in infrastructure improvements in many countries. This situation has the potential to support the company’s goals. Many economies have emerged. Such economies have the potential to support the company’s marketing strategies and goals (Geiersbach, 2010).

More professionals and young people are using new technological devices. This development has increased the demand for quality products. Samsung must fulfill this demand in order to emerge successful. Samsung Group should acquire “new technological skills in order to produce quality products for different global consumers” (Arokiasamy, 2012, p. 152). The multinational company must hire competent leaders and managers to monitor its operations in different regions. Such managers should be familiar with the organizational cultures embraced in every targeted region. This strategy will make it easier for Samsung Company to create new organizational structures that supports the expectations of its stakeholders.

This discussion explains why a proper organizational design structure will support Samsung’s goals. The best strategy will be the Team Structure (TM). Team Structure produces cross-functional teams that can achieve the company’s objectives. The structure will break down every functional barrier in the targeted departments (Geiersbach, 2010). The structure will also promote the level of coordination thus solving every organizational problem. The organizational design will support Samsung’s operations in every region across the globe. The structure will resolve managerial problems and reduce conflicts. The costs incurred by the management will decrease. TM has the potential to eliminate various hierarchies. A Teamwork Structure will eventually make Samsung a successful multinational corporation.

Reference List

Arokiasamy, A. (2012). The Influence of Globalization in Promoting Entrepreneurship in Malaysia. South East European Journal of Economics and Business, 7(2), 149-157.

Geiersbach, N. (2010). The Impact of International Business on the Global Economy. Business Intelligence Journal, 3(2), 119-129.

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Hernaus, T. (2011). Business Trends and Tendencies in Organization Design and Work Design Practice: Identifying Cause-and-Effect Relationships. Working Papers Series, 11(3), 2-18.

Hill, C., & Jones, G. (2012). Strategic Management Theory: An Integrated Approach. Boston, MA: Cengage Learning.

Tong-hyung, K. (2014). Web.

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