Samsung Electronics Company Case Study

One unique strategic decision shifted Samsung Electronics Company from being just a food exporter in 1938 to a global leader in electronics industry. This unique strategic decision was taken by the chairman of the company Kun Hee Lee when he realized that the company reached a turning point because the company was not paying attention to the environmental changes as its focus was only on volumes, cost production and quantity rather than customer value and high quality. Lee stated that it is time for a change to take a place to adapt to the new economic environment. This change should be done on systems, processes, internal policies and culture. Design strategy is a discipline which helps companies to determine what to make and do, why …show more content…
Samsung competencies include: excellent HRM who train employees very well through unique programs and give them the chance to go outside the country to get exposed to other cultures, creativity human capital as Samsung ensures to hire only creative and innovative people who can make a big difference in the company and effective production technologies to cope with new technologies within the changing environment. Samsung realized that it is very important to create and develop new products with green technology, less energy consumption and toxic materials as well as taking care of creative and innovative design in order to remain …show more content…
The company was definitely pursuing the evolutionary theory of strategy at that time. As we know, that these theories are important as they contain our basic assumptions about the relationships in business life. They tell us what to look for, what first steps should we take and what to expect as a result of our actions. There are four theories of strategy which were collated by Richard Whittington from the past five decades and categorized into four groups: classical theory of strategy which assumes that the economic rational man is in charge with the firm, profit maximization is achieved through rational planned activities with perfect knowledge and freedom to act and people are limited in their ability to use the available information to make perfect decisions, evolutionary theory of strategy which assumes that the market selects the winners from what is available, processual theory of strategy which rejects the rational economic man as a template and doesn't assume that the market necessarily selects the best and systemic emphasizes the systems theory of strategy which emphasized the systems as decision makers are