CORPORATE  CULTURE  WHITE  PAPER    

SAMSUNG  ELECTRONICS    Samsung Electronics implements various programs to support employees’ suggestions so that ideas can be a fruit. They offer the filing of patents, provide a knowledge management system to share expertise and knowledge amongst employees, and support community activities. We also offer incentives for idea suggestions to encourage our employees to proactively participate in Knowledge sharing within Samsung Electronics. This test was the expression of their determination to shift from a time management-based corporate culture to a creativity-oriented corporate culture. Under the program, employees are empowered to flexibly manage their office hours as long as they work a total of eight hours each day. If this test proves successful, Samsung will expand the program to a company-wide level.

-Work-Life Balance Because social norms have changed, an increasing number of female workers are participating in economic activities and retaining high potential employees has become the key to successful business operations. Happiness has become the overarching value of employees’ quality life, giving rise to greater social interest in balancing work and life. Therefore, Samsung Electronics also supports and encourages the employees to balance their work and life.

-Welfare Programs Samsung Electronics shares and cares about its employees’ concerns over their health, children’s education and post-retirement life and helps them prepare for their future in order to enhance employee satisfaction and provide better working environments. In addition to the basic legal welfare programs such as premium subsidies for National Pension, Industrial Accident Compensation Insurance and Employment Insurance, they also provide medical subsidies, a corporate pension program, work-out facilities and condominium rental services.

Samsung Electronics believes the tradition of valuing “People” is the key to building a creative corporate culture. “People” are the most valuable asset as we carry out our business activities based on the principles of human respect. To ensure sustainable growth in this rapidly changing business environment, they strongly believe that it is critical to recruit and retain talented people with creative, enterprising spirits and competent employees who can flexibly respond to fierce international competiotion and globalization.

Samsung Strategy:

Globalization   Enhacing  global  competency  of  employees  for  worldwide  competition  

Job  Skills  and  Expertise    

Improving  employees'  knowledge  and  skills  of  for  

competitiveness  

Great  Work  Place  

Activities  

Providing  good  working  conditions  where  employees  can  realize  their  full  

potential.  

Cultivation  Of  Employees’  Potential  

Main Points For our analysis:

Globalization:

Samsung is an excellent example that shows how a company from peripheral enters the global markets and becomes part of the core There are several factors for its success • The Government played a big role in providing initial capital and all other ingredients that company needs to stand on its foot in the domestic market. When the company started producing microwaves, government constructed the barriers for foreign firms to come and sell microwaves in Korea there by giving them protection from direct competition. • Government also helped in specialized factor creation like building basic physical infrastructure and intellectual infrastructure • Samsung management and leadership were very good. They had long term vision about where they wanted to take the company and what opportunities they wanted to pursue based on the resources and skills available in the country • Samsung took care of the basic needs of their employees by giving then housing, food, medical services, and life time jobs and in return they got their employees life time commitment. • Samsung also improved on Product Quality and Total Quality Management and Product Innovation • They anticipated market and demand • They controlled entire supply chain and distribution channel (input-sourcing-production-marketing) • Detailed understanding of market --Anticipated declining American demand and upcoming European demand Other companies can learn the following key lessons: Don’t fear rivalry, invest in innovations. Create long term strategies Anticipate future demands. Create cultural environment and provide training for employees.

WEB 2.0

Samsung Electronics is committed to a world where every user and customer, including people with disabilities or impairments, can communicate across borders and enjoy a better life. Our products, content and services reflect a corporate philosophy that embraces human diversity. Samsung continuously works to increase the accessibility of our products and Web sites for users and we make every effort to ensure that our products and services are convenient for all customers, including the disabled, elderly or impaired.

Corporate Business Model – The Networked Enterprise

Through innovative technology, distinctive designs, and a dual focus on convenience and value, Samsung has remained at the forefront of the digital revolution we helped launch. We lead the global digital marketplace by continually launching new products that not only meet- but also anticipate- customers' demands. Samsung mobile phones, admired by customers around the world, enhance mobile lifestyles while meeting the diverse needs of the mobile marketplace. The business also comprises personal computers and MP3 players, creating synergies across platforms. They merge the latest mobile technology with core computing technology for the PC business. Their goal is to use their leadership in technological convergence to guide the industry as it takes mobility to the next level. The TV business is a key driver in in the Samsung Set Business portfolio, along with the Mobile

phone business. The TV business enjoys the top position in the current market. Samsung printer and camera businesses are also receiving positive responses in the market and they continue to innovate in technology to increase our competitiveness in these segments. Samsung’s Set Business also encompasses world-leading, premium home appliances that are stylishly designed, equipped with convenient digital features, and environmentally friendly. Lastly, Samsung’s medical equipments are improving hospitals' operational efficiency and providing better clinical environment for physicians and patients through highly reliable diagnostic results, and easy operations. The medical equipment business has been designated as Samsung's future growth engine and will create a great synergy with Samsung Electronics’ IT technologies. Thus, Samsung as a ‘lifecare company’ is adding health and happiness to the lives of mankind.

RECOMMENDATION:

- Samsung should review and check their marketing strategy - Should receive payment for the products before it has to pay for the materials - Should use just in time inventory management - Chairman of Samsung company should manage to incorporate the company’s objective to

their business strategy - Should maximize stockholder value by maintaining a balance of three key financial

metricsà liquidity, profitability and growth