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BUS 6110: Organizational Strategy Course Instructor: MAY 2022

The document analyzes Samsung's organizational structure using the star model, finding it is product-type divided, centralized, and grouped geographically. It recommends giving product divisions more autonomy and variety in regional structures to foster creativity and adaptation.

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0% found this document useful (0 votes)
320 views

BUS 6110: Organizational Strategy Course Instructor: MAY 2022

The document analyzes Samsung's organizational structure using the star model, finding it is product-type divided, centralized, and grouped geographically. It recommends giving product divisions more autonomy and variety in regional structures to foster creativity and adaptation.

Uploaded by

DEE
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Applying Organizational Design to a Case

BUS 6110: Organizational Strategy

Course Instructor:

MAY 2022

Applying Organizational Design to a Case: SAMSUNG

The Samsung Group is comprised of Samsung Electronics Co., Ltd. and its several sister

companies and subsidiaries. The technological conglomerate's corporate structure is shown to


be applied throughout activities in this internal analysis. A good example of this is Samsung

Electronics, which shares many of the same structural qualities as the conglomerate. To

maintain its competitive advantages against a wide range of rivals, including Apple, Google,

Sony, Intel, Dell, Acer and Lenovo; this uniformity in the organizational structure aids in

streamlining the company's operations.

At every level of Samsung's corporation, innovation in technology is promoted, and

according to Evans (2019), Samsung's organizational structure relies on this. As seen by the

rapid development of smartphones and other consumer electronics, Samsung's plans center

on technological innovation. Structural facilitation aids in the implementation of Samsung's

generic competitive strategy and aggressive expansion tactics. From a small trading firm to a

worldwide operation with multiple divisions offering cutting-edge technologies, the

company's organizational structure reflects this evolution as well. Samsung employs several

operations management solutions adapted to certain markets and industries because of the

company's extensive involvement in a wide range of activities. The company's structure and

organizational architecture encompasses a wide range of technology-related industries and

enterprises, such as computer technology. The organizational structure of Samsung allows for

effective market penetration and market development strategies, which also empowers

competitive advantages to promote the continuity and success of the company in an

increasingly saturated and fiercely competitive environment. As a result of this divisional

organizational structure, Samsung has three primary divisions: IT and Mobile

Communication (IM), Consumer Electronics (CE), and Device Solution (DS)

(Doduvskiy,2017).
In addition to these three departments, Samsung also maintains a corporate administrative

office and a technical research institute called the Samsung Advanced Institute of Technology

(SAIT). The corporate structure of Samsung exhibits the following characteristics:

• Product-type division

• Centralized

• Geographical groupings

I am making use of the star model to determine my recommendations for Samsung. Strategy,

Structure, Processes, Rewards, and People make up the five pillars of the Star Model. One

may successfully influence its organization's actions and behaviours by connecting and

aligning these pillars. All five of these parts of the implementation process are affected by the

company's choice of business model. (Garner, 2015). The pillars of the Star model are:

1) Strategy: This influences the company's direction.

2) Structure : This defines the distribution and mobility of power and authority and is

essential to department formation.

3) Processes: "The flow of information and decisions characterizes organizational processes"

(Garner, 2015).

4)Rewards: Rewarding employees entails aligning their goals with those of the organization.

5) People: This refers to the people resources required to carry out the company's strategies,

including recruiting, training and development, rotation, and promotion.

Recommendations

These are a few suggestions I've come up with after looking at Samsung's existing structure.

 Open innovation relationships with other firms and academic institutions should be

increased to develop more consumer products or exciting versions of existing ones.


 The Product-based divisions should be given more autonomy, which will lead to

increased creativity and invention in these divisions.

 There is a need for greater variety in reporting and structure, particularly when it

comes to different regions.

In conclusion, the implementation process is affected by the company's choice of business

model however this may help Samsung to evolve as a business and to be stable

References

Evans L (2019, March 18) Samsung’s Organizational Structure & Its Characteristics (An

Analysis) Panmore Institute. Retrieved from http://panmore.com/samsung-corporate-

organizational-structure-characteristics-analysis

Dudovskiy .J. (2017, November 20). Samsung Organizational Structure: Divisional

According to Product Types. Business Research Methodology. Retrieved From

https://research-methodology.net/samsung-organizational-structure-divisional-according-

product-types/

Garner.B.(2015, February 03).Implementing Your Business Model Into The Galbraith Star

Model. Strategyzer. Retrieved from

https://www.strategyzer.com/blog/posts/2015/2/03/implementing-your-business-model-with-

the-galbraith-star-model

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