A brief history of the company.
The Korean-based company Samsung was founded on March 1st, 1938 by Byung Chull Lee who instilled some of the first concepts into Samsung’s corporate culture. Byung pressed to continuously pursue innovation and accept new challenges. This is some of the founding spirit that still resonates in Samsung’s corporate culture today. The company started off with humble beginnings with consolidated interests in agricultural products and insurance. Sugar was one of the first products that Samsung exported in the 30’s. Their interests in these products continued throughout the late 50’s. In little over a decade, the company had grown from a small export firm to a large and prospering company that now owned its own mills, plants, and manufacturing equipment. In 1969 Samsung-Sanyo Electronics was formed. During the 1970’s, the company broadened interests into the chemical, shipbuilding, and home electronics industries. Throughout the 80’s Samsung continued to grow and diversify their business to other industries. In the late 80’s, Samsung started driving towards a larger technology focus. The company formed a research and development institute and an institute for technology. New management for the company came in the 1990’s as well as some restructuring of the business. By the millennium, Samsung was embarking on their second century. Samsung began to take hold of the global market for electronics with the advent of the digital age. Samsung’s home office is located in South Korea. There, the company has a large presence and makes up for much of the development of the Korean culture. So much in fact that Samsung is often referred to as ‘Korea’s most important corporation. Samsung’s blue colored logo is representative of stability and reliability which echoes in the company’s determination to become a worldwide leader. The name Samsung which means “three stars” signifies a representation of three stars each with its own meaning:
o To serve the nation throughout business.
o To put the Human Resource over the material resources. o Efficient Management Activity
Samsung’s mission is to achieve "Economic contribution to the nation," "Priority to human resources," and "Pursuit of rationalism." The management philosophy is very revealing of the company’s intentions: "We will devote our human resources and technology to create superior products and services, thereby contributing to a better global society." The company has seen a rise in profits since 2000. Their current management philosophy and structure are centered on open management.
Samsung’s present strategy and its evolution is the past few years. If there is one company that knows about the upheaval of corporate strategy, it’s Samsung. During the late 1990’s, Samsung went through a large scale management reorganization. This changed their strategy and ultimately paved the way for the current firm Samsung electronics. At one time, Samsung was regarded in terms of their electronics products that were dwarfed by the big name brands like Sony and Panasonic. Their appeal and strategy at the time was to offer low-priced products. But Samsung’s management changed the direction of the company and sought after a commitment to become one of the world’s industry leaders in electronics. One successful strategy Samsung has been able to implement is what vice-chairman Yun Jong Yong calls the “Sashimi Theory”. This is based on the concept that timing is everything when it comes to maximizing profits on electronics. Samsung knows that getting new products to the market ahead of the competition will facilitate profitable sales. The most advanced products need to hit the shelves first, so that by the time the technology has been introduced to the market the competition has no chance of charging premium prices. Introducing cutting-edge products to the market ahead of...
References: “Samsung 's "Sashimi Theory" of Success”
June 11th, 2003
November 29th, 2004
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