Samsung The fast Adoption StrategyMohammad Aminul Islam 11103812COLOGNE UNIVERSITY OF APPLIED SCIENCES

Company ProfileFounded :1938Founder :Lee Byung-chul Headquarters :Seoul, South KoreaArea served :Worldwide Key peopleProducts : Apparel, chemicals, consumer electronics, electronic components, medical equipment, semiconductors, ships, telecommunications equipment Services Advertising, construction, entertainment, financial services, hospitality, information and communications technology, medical and health care services, retail, shipbuilding Revenue : US$ 305 billion (2014) Net income :US$ 22.1 billion (2014)Total assets :US$ 529.5 billion (2014)Total equity :US$ 231.2 billion (2014)Number of employees : 489,000 (2014)

IntroductionSamsungs unlikely success in mixing Western best practices with an essentially Japanese business system holds powerful lessons for todays emerging giants.

Samsung introduce new business model which in the combination of Western and Japanese business system

Samsung introduce merit pay and promotion

To grub the global business hire foreign talents in the organization and send native talent to foreign countries.

The rising historyIn 1938, Samsung group was the largest corporate entity in south KoreaIn 1987, Samsung group was the leader in Korea most of its product but overseas it was not popular for Japanese electronics market.In 1990, when market changing from analog to digital ,Samsung found an opportunity to grab it by using new innovation.In 1993, Samsung launched new management initiative to import west best practice to strategy formation, talent management and compensation in their existing business model. It is called Hybrid Management System.In 2004, worlds second most profitable manufacturer behind Toyota.In 2010, Samsung rose to number 19 on the 2010 Inter brand global ranking, with a value of $19.5 billion

Market ShareGlobal Market ShareTop market share in DRAM and mobile AP markets

Samsung share in smart phones was only 3.7% in 2009 but has dramatically increased to 19.9%, giving Samsung Electronics the top market share

Market ShareDivision Market Share

Samsung Hybrid Management System

Strategy: Bringing outsider inIn 1983, Recruite ethnic koreans engineers and executive away form intel, IBM, bell labs.In that time, Samsung entered memory chip businessWithin 10 years , Samsung was the leader in the global chip industry.Samsung recruit non korean MBAs and PhDs by cultural, social and political tensions.Set up a Global Strategy GroupReports directly to the CEOWho worked fo r leading global companies like Intel, Sachs, GoldmanHave to learn rudimentary korean before taking up their postKorean colleagues have had to change their working style and mind set to accommodate weternize practiceTaking ideas from abroad

Strategy: Sending insider outEach year more than two decades Samsung send 200 talented young employees to abroad for full one year.

For the first six months, their only job is to become fluent in the language and culture and to build networks by making friends and exploring the country.In the second six months, they carry out one independent project of their choiceInitially sent mainly to developed countries, in the past 10 years theyve gone more often to emerging regions, especially China and, most recently, Africa.

Strategy: Pay & PromotionSamsung introduce merit pay and promotionPutting some young people in position of the authority over their elders.Company slowly stated seniority based pry structure and merit base compensation systemFor high performer get promotion quickly rather than poor performer need to stay more year for a particular level.Samsung started a profit-sharing program, employees, not just top and general managers are eligible for a bonus based on a percentage (up to 50%) of their salary.

Those approaches company slowly progress to western business practices.

SWOT Analysis

StrengthWeaknessOpportunityThreadsLeader in home countryNot familier with Global marketMarket moved from analog to digitalJapanese companies and others electornics companyHave native talentsNot familier with Global cultureEvery company need new innovationHave knowledge about Japanese Business systemSome talents want to leave jobs from renowned company

Conclusion: Vision 2020

ReferencesThe Paradox of Samsungs Risehttp://www.samsung.com/us/aboutsamsung/sustainability/sustainabilityreports/download/2012/2012_sustainability_rpt.pdfhttp://en.wikipedia.org/wiki/Samsunghttp://www.samsung.com/