Introduction
Since the onset of COVID-19, Samsung has been pushing itself to the limits to cope with unbearable conditions in the business field. This paper critically analyses some of the significant ways that Samsung has met the demands of its growing customer base during the pandemic. The report begins by explaining the company’s response and management of its operations since the onset of the COVID-19 pandemic.
It further describes how Samsung has successfully met the needs of its internal and external stakeholders. It further analyzes the resolved and inadequately resolved ethical issues and provides solutions through the company’s leadership. Lastly, the paper identifies whether the company is a conglomerate and its affiliation with Herman International Industries.
Company Overview
Samsung is one of the giants among the companies that produce electronics globally. Currently, the company is ranked number 10 in terms of its success in the electronics business. Samsung was founded in 1938 by Lee Byung and diversified into textiles, food processing, security, and insurance within three decades. In the late 1960s, the company entered the electronics, construction, and shipbuilding industries (Zhou, 2020).
In 1987, after Lee’s death, Samsung was separated into five business groups: Samsung Group, Hansol Group, Shinsegae Group, Joongang Group, and the CJ Group (Zhou, 2020). Following the COVID-19 pandemic, many companies and institutions have struggled to meet their needs, goals, and mission. As part of a global community, Samsung has faced vast challenges from its internal and external stakeholders (Rababah et al., 2020).
Samsung’s Global Response to COVID-19
COVID-19 has negatively impacted organizations; many companies have faced tough times managing their employees and meeting their demands, while others have been forced to shut down. On the other hand, despite slower processes, Samsung has managed to meet its demands without a complete shutdown. Samsung has established vast manufacturing networks with factories in South Korea, Indonesia, Vietnam, Brazil, and India (Sharma et al., 2020).
With such a widespread production network, the company has fulfilled its increasing demand by decreasing its dependence on China. The vast networks enabled the company to outsource from different locations during the COVID-19 pandemic. Additionally, due to the closure of retail stores, the company has leveraged contracts with mobile phone retailers and EMI technology firm and payment method (Benow) to create e-commerce platforms to facilitate its sales. Lastly, Samsung has developed additional services to maintain its customer relationship. The benefits include free smartphone repairs for healthcare workers and discounts for first responders and healthcare professionals.
Meeting employees’ needs is one of the significant factors that Samsung has invested in. Samsung has focused on human resources and risk-taking initiatives. Samsung hires a few non-Koreans inside Korea, and a higher percentage of Koreans are outside Korea (Zhou, 2020). Such an initiative is family-centric, allowing communication at all organizational levels. Samsung has also successfully met the needs of external stakeholders, including customers and vendors, during the COVID-19 period by supporting the community through education and providing support for start-up businesses. The company has also provided opportunities for teenagers to study information technology services.
Since the start of the COVID-19 pandemic, many restrictions have helped prevent people from contracting the virus. Social distancing is one significant restriction that leads to social uncertainty and unrest among consumers, causing a rise in demand for products that consumers lack due to the social distancing measures. Samsung products also have a significant percentage of products that consumers would have lacked during the COVID-19 crisis. The measures taken by Samsung over the years to curb production shortages have also benefited the ethical issue of social distancing, allowing consumers to purchase Samsung products from the comfort of their own homes.
Ethical Issues in Privacy and Telecommunication
When an individual purchases a Samsung smart TV, it comes with a 46-page privacy policy that informs Samsung of when and how the TV is turned on. The TV also has a camera and microphone for face and speech recognition, improving its privacy. Additionally, the manuals advise individuals not to disclose sensitive information in the vicinity of the TV, as any information captured is transmitted to a third party.
Although not many users can read all the information in the manuals, Samsung needs to protect its customers and other citizens from digital spying by providing an environment where electronics allow citizens to be preeminently themselves. However, the problems have not been resolved, as some of Samsung’s products would not ultimately work without the COVID-19 restrictions.
On the other hand, telecommunications has proven to be another ethical issue that remains inadequately resolved. Since the introduction of telemedicine, Samsung has enabled apps that allow patients and doctors to meet virtually and discuss the patient’s ailment. Although both can converse easily, a doctor with many patients who has to handle many patients simultaneously faces challenges.
Such situations may inconvenience patients requiring urgent treatment or consultation with the doctor, which negatively impacts the efficiency of telemedicine. The company’s innovation team can resolve ethical issues within Samsung. The unit can effectively enhance telemedicine by upgrading its app, allowing doctors globally to cater to patients and distinguish between those who require urgent care.
Expansion and Subsidiaries
Since its inception, Samsung has expanded into various sectors within the business world. The major affiliates that Samsung has combined include Samsung Electronics, Samsung Heavy Industries, and Samsung Engineering. The affiliation of Samsung with other subsidiaries has made it a conglomerate. Herman International Industries is a wholly owned subsidiary of Samsung. The company is focused on developing, manufacturing, and marketing audio products. Samsung purchased the company in 2016 for $8 billion (Kim et al., 2019). Some of the products produced by the affiliate company are Mark Levison, JBL, Infinity, and Harman.
Conclusion
In conclusion, Samsung has set a milestone in the technological world. The advent of Samsung has benefited people globally. However, the onset of COVID has significantly hindered the company’s growth. Samsung has utilized extensive networks in various locations to meet the demands of both external and internal stakeholders.
The company has also utilized its adaptability to address ethical issues, although these issues have not been adequately resolved. Samsung’s conglomerate has enabled it to offer a range of features and products for its customers, thus increasing its chances of beating its competitors. Samsung dedicates its human resources and technology to developing high-quality products and services, contributing to a better global society.
References
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Rababah, A., Al‐Haddad, L., Sial, M. S., Chunmei, Z., & Cherian, J. (2020). Analyzing the effects of the COVID‐19 pandemic on the financial performance of Chinese listed companies. Journal of Public Affairs, 20(4), e2440. Web.
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Zhou, Y. (2020). The Samsung story. Nature Electronics, 3(5). Web.