Principles And Concepts Of Strategies Business Essay

Samsung group is a South Korea multinational conglomerate company headquartered in Samsung town, Seoul. It really is a large conglomerate industry including numerous subsidiaries and associated business. It's the major South Korea chaebol. Samsung is not identical to others digital companies, it isn't involving electronic digital but other product before.

In 1938, Lee Byung Chull as the creator of Samsung got setup a trade export company in Korea. The group diversified into many areas including textiles, insurance, food handling, security, media, chemicals, retail and ship building over the next three decades. Pursuing Lee's loss of life in 1987, Kun Hee Lee got over as chairman and Samsung began cleft into 4 business group, Samsung group, Shinsegae group, CJ group and Hansol group. In 1990, Samsung started out to extend business and globalised its activities and electronic digital, particular cell phones and semiconductors in US, UK, Germany, Spain, Thailand, Mexico and China until 1997. Since Samsung developed the 'lightest' mobile phone of its time, they focused in developing smart phones yet others electronic product at the end of the 20th century and always made a steady development in the mobile industry over others competition.

Samsung_Custom logo. svg. png

The starting on the both ends of the ellipse where in fact the characters 'S' and 'G' are to demonstrate the business's open-mindedness and the desire to communicate with the world. The current logo design of Samsung is design as to emphasize straightforwardness and overall flexibility while conveying a progressive and active image through the ellipse, the sign of world level.


Samsung applied commercial, competitive and functional strategy in the business. Corporate strategy is an company strategy that specifies what business a company is at or would like to be and what it would like regarding those businesses. Corporate strategies involve expansion strategy, steadiness strategy and renewal strategy. Samsung using expansion strategy to develop the number of markets offered or products offered. Activities like concentration, vertical integration, and diversification is a part of expansion strategy. Samsung using the attentiveness technique to increase its main occupation and concentrate on the development of single products. Samsung has vertically integrated its operation that involves components and done product of electronic goods. Samsung only adopted backwards integration to help affecting their products in control, producing and making. The vertical integration strategy of Samsung was long quite early to accept semiconductor technology. The successful diversification also became a rise strategy for Samsung since it rapidly broadened in insurance, securities and retail business. By adopting steadiness strategy, Samsung will retains its present strategy and continue steadily to do what it happens to be do like continues focus its present electronic goods to guarantee the level of work is maintain. Besides that, Samsung today success was built on your choice to target higher in 1997 by using renewal strategy.

Those decision that deciding how group compete within proper business product (SBUs) or each line of business and determine how organization will contend in its business is competitive strategy. Samsung need to understand the competitive makes that are Porter's five pushes that determine strong of competitive forces. If Samsung profitability is above the industry average in long run, which means Samsung achieve sustainable competitive edge. Three types of competitive strategies is cost management strategy, differentiation strategy and emphasis strategy. In cost command, Samsung compete by getting the low cost production in the consumer electronics and phone industry due to its structure way in being able to access recycleables. After joint R&D, Samsung get greater internal economies of size and ownership of technology. Samsung applied the differentiation strategy and contending based on the basic of experiencing unique consumer electronics and cellphone products that are greatly acclaimed by consumers. It includes a warrantee that no competition have ever before given in auto industry. Improvements in the scientific area providing Samsung products a new look of design, balance and comfort ability. In concentrate strategy, organizational competing in a narrow segment or niche market either cost target or a differentiation target. Samsung pay attention to every segment and different category of consumers such as low income, middle income and high income. Samsung compensates them more in success and market show.

Functional strategy also known as functional strategy is short-term and goal-directed decisions strategy. It found in Samsung's various team and regulate how well each functional area carry out their own activities effectively and maximize resource production that they donate to attain Samsung goals.

Samsung's operation

Samsung is a Korean-based consumer electronic digital company and the main one who lead in digital technology progress. It has been committed to making an improved world through diverse businesses that development advanced technology, semiconductor, petrochemicals, treatments plus more. The flagship company in Samsung is Samsung gadgets, which leads the global market in high-tech electronics professional and digital press. Samsung products are performed to the highest standard and finest quality so that can donate to a better world effectively. Samsung has used the business idea thatallocate talent, technology and resources to creating superior product and services that in a position to bring it occurs a preferred express and then donate to a much better global modern culture. Samsung focused on fulfill social responsibility and being environmentally responsible corporate where it works around the globe. The motto of Samsung Company is, "Inspire the entire world, Create the future. " that Samsung believe in development and keep looking for new technology to develop their business.

Samsung have using the organization strategies develop the operation of company. Firm strategy is based on the mission and goals of the organization and the roles that all business unit of the organization will play. Three main types of corporate and business strategies are growth, stability and renewal. Expansion strategy mean to an organization expand the number of market offered or product offered. Samsung is focused on developing impressive and progressive solutions and effective process that create new market there isn't only broadening in gadgets product but also advance to another sectors such as healthcare, medicine among others. Samsung also using the steadiness strategy this means to continue to do what it happens to be doing. Samsung lead the electronic industry with its powerful and high development rate which working balance.

Besides that, Samsung company also using the competitive strategy which a strategy for how an organization will contend in its business. Samsung's competitive benefit related to the initial breeding environment for innovation and effectiveness of the R&D and development should have been well-maintained. Samsung have using the differentiation strategy which that offering unique product that is greatly value by customer or it could come from high quality or progressive design. Example, "Smarter Life" theme was offered just lately in Samsung. It is based on the innovative approach in improving the company's current products and creating new product to the marketplace. Finally, Samsung Company use the functional strategy that your strategy used in an organization's various practical departments to aid the competitive strategy.


Samsung is one of the well-known digital company and effectively growing its business collection in numerous different marketplaces. Although adopting backward integration in their products in process, producing and manufacturing, you may still find have many problems of these electronic digital product, such as electric battery drain, overheating, wifi dropping and sound and microphone problems.

Some users experience in a astonishing battery pack drain on the Samsung smartphone, even when the phone is not used. This cause the electric battery of the phone draining out very fast and this problem may cause many problem eventually the Samsung mobile phone users. The overheating of the components may lead to crashing and freezing of application and system. The overheating is often because of the long duration usage of mobile especially gaming. Relating to a report, there are majority of customers complain about the Samsung smart mobile phones have successfully linked to Wi-Fi but down the road its signal drops easily and this issue is actually aggravating the users. Lately, we found that there a wide range of complaints according to the Samsung smart phone's music and microphone issues because the signal power is dropping immediately after phone calls and cause many inconvenience for users.

Green management is putting into action by Samsung by creating a global level of safe practices and international system has its root base in Samsung's guidelines of 'going after environmentally friendly management and valuing security and health of mankind. However, Samsung confronted many problems which collide with its principles.

First of this is Samsung implicate in labor violations in China. China Labor Watch Group doing an investigation record into eight factories in the united states and found that there have been six which were owned by Samsung. The statement unveils that the staffs were having to work around 100 time of overtime every month. Occasionally, workers were given only one day off per month and there were also an overtime instances which the personnel working reach 186 time in month of peak demand. However in general, workers compelled to choose to work the extra hours to complement their low salaries which can vary between US$200 to US$250 per month whereas for doing overtime through the busy conditions, the salary can up to US$600 to US$800.

Besides that, Samsung also accused in employing underage employees. China Labor Watch Group stated that it possessed found seven workers under age 16 at a Samsung supplier in August based in the location of Huizhou. In addition they pointed out the recruiting ages range can sometimes between 16 and 23. Hiring underage worker is for their own monetary interest, the industry will create fraudulent IDs to be able to get the child labor. They do not perform a rigid inspection and places undue pressure and paperwork on employees who wish to resign.

Samsung are slam for alleged worker mistreatment. The staff member forced to working in an environment with securely shut windows led to inadequately ventilated facilities. Plans for staff incidents, treatment and potential fires are allegedly lacking and there haven't any infirmary or medical set and an individual hearth extinguisher for the 1, 100 person center. This is firmly threatening the safety of staff, if any occurred without premonition may cause a giant losses and serious impact to the image of company.

Furthermore Samsung also regarding in environment ailment. Worker organizations in South Korea survey an unwonted high incidence of malignancies and other serious diseases among employees at Samsung's semiconductor industry. According to corporate Public Responsibility employees that cleansed wafers at Samsung industry are having unusually situations of cancer. There's also many discoveries conditions about menstrual unusual, musculoskeletal pain and disorder, various skin area diseases, chronic head pain, nasal bleeding, lymphoma and brain malignancy of personnel which employed in semiconductor industry. Min Woong Hwang, an anatomist in the same industry died from leukaemia in 2004. In others conditions, three employees in four-man team constructed leukaemia, malignant melanoma and Wegener's granulomatosis ( a disorder seen as a inflammatory damage of arteries ).


Problems of product

Samsung need to improve the quality of the function of each product. Retain the engineering and operator based on their genuine related recognition of skill. Poor training might be the reason for substandard quality of the product and also impact the creation time. Buying proper and suitable training for new hires can eliminate costly faults and make sure that the work and thing improving and done right in the first time and to up grade workers own personal skilling. For considering designating one individual as a trainer, is more ideally someone with experience and skills in company process.

Labor violations

Strengthen the federal government Enforcement of Occupation and Labor Laws. Federal enforcement is the cornerstone or bedrock of any possible response to workplace violation, is just as the need for workers protections has become more serious, enforcement of regulations effort at both federal and condition level have weakened. The main thing is public policy must recognize the significant electric power and resources which stay with the various agencies or section responsible for enforcing income and hour, prevailing wage, health and protection and anti-discrimination. Pay employees according to mother nature of their jobs, their tenure with the company and their experiences. So, a vibrant, strong occupation and labor regulations must be coalescent into the broader policy agenda.

Hiring underage workers

Prevent employing underage workers, team of human resources of company must aware of all new hires. Is most beneficial to execute face-to-face IDs checking, ensure that there do not have any fraudulent IDs allowed in company. While doing interview, the staff must reviewing the human resources records or continue of the new hire and performing interview with pupil employees. Besides that, the company must give a strictly consequence to the person who intention to hiring underage workers. This is a serious mistake which will provide a bad impact to the image of the company.

Poor working condition and environment issue

Every company benefits when its employee are happy with their working environment. Comfortable, interested and appreciated of the work can be dependant on many factors. Strengthening the working condition such as amending the ventilation of industry and give a periodical medical checkup and a much better intend to protect the welfare of the staff. Encouraging and rewarding help employee more frontward and do thing even better. They will experience their effort has been recognized and they are needed by the business.


Samsung is an extremely successful company in electronic product field. An excellent and efficiency management system implement by Samsung made them getting things done, efficiency and effectively. Out of this assignment, we recognized a successful company is challenging to manage well, there will be many critical problems took place without the premonition. So management function is well performed by Samsung. There are organizing, organizing, leading and managing. Samsung group have set up their own goals, creating many suited strategies in every development and expanding project. All of the professionals also doing fineness in arranging and structuring work to accomplish their company goals and monitoring, coordinate and correcting work performance of employees to ensure that their company position a high-competitive capabilities among others competitors such as Apple and Nokia.

In the final outcome, we realized that learning management is very important. Because it provides skill and responsibilities, how organizational function and exactly how people behave in the workplace.

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