Organizational Structure of Samsung Electronics

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Organizational Structure and Design

Prepared By:
Anuj Arora – 12FN019
Himika Chaudhary
Nitin Mudgal
Prateek Kumar – 12DM101
Sachin Gupta – 12FN107

Index

1.1 Introduction

Samsung India Electronics Ltd is a subsidiary of Samsung Electronics Corporation headquartered in Seoul, Korea. The company was incorporated in the year 1995. The company is having their head office at Delhi and branch office at 16 locations all over the India. Their manufacturing facilities are located at Noida in Uttar Pradesh and Sriperumbudur in Chennai. The company is having two R&D centres in India, at Bangalore and Noida. Both the R&D centres are involved in cutting edge research and development. 

The company is dealing in the business of IT, Consumer Electronics and Household businesses. They provide high technology consumer electronics. Their products in India are colour television, colour monitors, refrigerators, washing machines, mobile phones, microwave ovens etc. The company is the first in India to introduce fuzzy logic based washing machines, silver nano refrigerator and flat screen TVs. Samsung phones support five Indian languages, namely Hindi, Marathi, Bangla, Punjabi and Tamil. 

1.2 Organization Strategy

Strategically the electronics industry was considered suitable for countries with poor natural endowment and high skilled labour like Korea. This industry required labour intensity, knowledge intensity but low input requirements of energy and raw materials. Samsung electronics has not only utilised status-quo resources but also developed dynamic capabilities as it rose to the top. Aggressive and risk-taking investment behaviour in search of entrepreneurial rent and the effective policy of managing technology development contributed to the extraordinary achievement of Samsung Electronics. The company's remarkable transformation over the last decade or so can shed light on how a firm's dynamic capabilities, the ability to improve its O-advantages by reconfiguration, transformation and learning, contribute to its home country's idiosyncratic development path. The company transformed itself from a sub-contractor to a manufacturer to a leading creator of many electronic components by harnessing a talented team. Samsung took quite a few risks initially to achieve its goals, it kept its winning team refreshed by constant vigilance and talent renewal.

Samsung employees put leadership ahead of excellent personal development courses and structures which Samsung Electronics evolved in the 2000s. The same quality could be seen in the company’s Suwon campus. That leadership came primarily from Yun Jong Yong and Lee Kun-hee above him. There was full inter relationship between the Samsung group and Samsung electronics which also lead to a coordinated and smooth functioning of Samsung.

1.3 Organization Structure

Samsung Electronics organizes its businesses according to its different characteristics in technology, markets and consumers as either Digital Media & Communications (DMC) or Device Solutions (DS) division, strengthening their independent operating structure. DMC is grouped into Consumer Electronics (CE) and IT & Mobile Communications (IM) divisions. The CE division took charge of the visual display business department and home appliances department. The IM division is in charge of managing wireless businesses, IT Solutions, Network business, digital imaging displays and the Media Solution Center.

This restructuring reflects changes which were made to the workforce with the hiring of soft power experts which has become more important than ever in the ‘Smart’ age. They have already announced their intention to make a paradigm shift by becoming a soft driven company and established a ‘Software’ center in order to increase their software capacity until it’s on a par with their world renowned manufacturing.

Changes in the Device Solutions (DS) division also took place...
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