The Growth Pace of Samsung - Term Paper Example

Managing Change: How Samsung Has Made A Dramatic Growth In A Short Period Of Time? Table of Contents Introduction 3 Discussion 4 Theory Dunphy Stace Contingency Model Of Organizational Change Strategies) 5 Theory 2 (Managerial and Leadership Theory Implementation as Success Factors for Samsung) 8 Theory 3 (Systems Theory as A Growth Factor for Samsung) 9 Theory 4 (Organizations Theory Leading To Static and Dynamic Changes in Contingency Plans) 11 Theory 5 (Theories of Change management as a Systematic growth Factor) 13 Conclusion 14 References 15 Introduction Samsung Group, in this present market scenario, holds the title of being a technological leader, transforming the world into a new era of technological diversification and innovation. This brand over multiple decades has shown intense involvement in the area of competition with multiple other technology leaders such as Apple and Microsoft among others. As a matter of fact, the company can be duly considered as a reference model for all other technological emergent business corporations that are facing huge challenges in the context of moving beyond their home markets (SAMSUNG, 2014). However, attaining the present growth pace of this successful globalised brand has not been easy. Justification regarding this aspect can be provided based on the fact that this brand has to undergo tremendous level of competition from the existing technological giants that were dominant over the market space. Samsung entered the electronic business sector during the period of 1960 and since then, it did project high level of interest towards the development of smart phones and other semiconductor devices that eventually formed a major source of revenue generation for this brand. However, Samsung also appears to have projected similar levels of interest and involvement towards multiple other industrial sectors such as heavy engineering, machines and equipment development among others. The present market scenario also points out to this brand’s effort olf promoting suitable marketing and brand promotion techniques through which it succeeded in attracting all forms of customer segments (lower, middle and upper). Samsung also made tremendous efforts in context of bringing about diversification within its workforce for improvising its globalization functions. Considering the above stated aspects, the discussion will majorly focus towards understanding those factors that supported the drastic growth pace of Samsung within a short time span. Moreover, the discussion will also take consideration of multiple theoretical frameworks with the intention of determining about how Samsung has made drastic growth within a short period. Discussion Samsung, at the end of the year 2013, experienced tremendous amount of growth, which can be better understood from the following graphical representation: Source: (Yahoo! Inc, 2014) From the above presented graphical representation, it can be perceived that the growth pace of Samsung during the period 2000-2014 remained much fluctuated. This reveal of the scenario eventually points out to the necessity of making effective managerial changes that brought about by Samsung within its functionality structure for tackling the global challenges. By taking into concern the above stated facts, possible challenges that a technological giant can face in managing its vast workforce can be visualized in a broader manner (Yahoo! Inc, 2014). Samsung, in this context, felt the necessity of bringing in considerable amount of changes within its human resource management areas through the implementation of certain suitable theoretical aspects, few of which has been elaborated in the undermined sections. It will be vital to mention that a detailed elaboration of such areas will significantly aid in determining about how Samsung has made a dramatic growth within a short span of time. Theory 1 (Dunphy / Stace Contingency Model Of Organizational Change Strategies) From a general perspective, it can be stated that the present competitive market accompanies varied situational alternations and thus requires the adaptive nature of multiple change strategies with the intention of generating best possible outcomes. In this provided context, Dunphy & Stace (1993) presented a contingency model, which takes consideration of two specific dimensions. The first dimension is regarding the possible changes that need to be brought or introduced for making the organisations capable enough of sustaining in the external environment. However, the second dimension only takes consideration of the effective leadership styles that will be necessary for consideration in order to manipulate such changes successfully. In general terms, ‘Dunphy-Stace’s contingency model’ corresponds to the fact that change agents within multinational organizations such as Samsung should bring about suitable modifications within their functional strategies depending on surrounding situations. Competition being a major economic driver in the present scenario imparts huge amount of functional pressure upon large-scale organizations in the context of attaining higher profitability. However, the reality behind the attainment of such objectives is highly tedious in real life scenario. Samsung appears to utilize the competition element, as one of its success factors, which eventually supported the drastic growth rate of this brand within a short interval of time. The change matrix projected below will help in providing a precise understanding of the aforesaid scenario. Stace & Dunphy (1994) Finetuning Incremental Modular Transformation Corporate Transformation Collaborative Consultative Taylorism (Avoiding Change) Developmental Transitions(Constant Change) Task-focused Transitions (Constant Change) Charismatic Transformations (Inspirational Change) Directive Turnarounds (Frame breaking Change) Coercive Samsung, during the fiscal year 2014, has witnessed appreciable percentage of growth within its mobile phones and telecommunication sector. Evidence regarding such accomplishment can be found within the statistical reports projected by this brand on yearly basis (IDC Corporate USA, 2014). As a matter of fact, the growth pace of Samsung can be accounted within all the transitional phases of change matrices projected above. For instance, until the period of 2009, Samsung retained its marketing strategies and focused towards establishment of low cost mobile phones. Through the manufacturing of the low priced mobile phones, the brand specifically intended towards targeting the lower and the medium segment of customers. Thus, until the beginning of the year 2009, Samsung can be perceived to have existed in the ‘Taylorism’ transitional phase of the change matrix, because of its confined attainment to strategic and fictional changes (IDC Corporate USA, 2014). However, the year 2009 witnessed the introductory phase of smart phones equipped with android technology. This chain of events projected a huge competitive and development opportunity for the smart phone manufacturers owing to the emergence of less competitive market and the sudden impact of 2009 recession. Under such market situations, Samsung witnessed a beneficial scope of positioning itself amongst other global mobile phone manufacturing giants such as Nokia and Apple. Thus, it can be affirmed that the situations brought about multiple innovative changes within the functional, technological and managerial frameworks devised by the company and introduced the primitive galaxy series mobile phones in the market (Dow Jones & Company, Inc, 2014). Taking reference of these aspects, it can be understood that Samsung took a direct leap from being in the ‘Taylorism’ transition to the ‘Charismatic Transformations’ transition phase. However, the brand in the present scenario intends to make suitable modifications within its newly attained galaxy mobile phone technology in order to hold its competitiveness against global brands such as Nokia, Apple and other Chinese smart phone manufacturers. Thus, it can be stated that Samsung in the present scenario is at a balanced point lying between the phases of ‘Developmental Transitions’ and ‘Task-focused Transitions’ (GSMArena.com, 2014). Theory 2 (Managerial and Leadership Theory Implementation as Success Factors for Samsung) Effective alternations amidst the leadership theories within Samsung have also been a major success factor that has supported the drastic growth of this brand within a short span of time. If seen from a managerial perspective, it can be stated that Samsung usually follows multiple leadership theories within the management structure of its distinct functional dimensions. Samsung also appeared to pay utmost attention on the development of its organizational culture and workforce diversity that are regarded as mandate factors for ensuring survival and growth of an organisation in this competitive business setting. For instance, the increasing competitiveness within the IT sector encompasses the necessity of implementing innovation within situational leadership theory, which in turn is necessary for Samsung in maintaining its competitive stance against other competitors (Shaughnessy, 2013). The rapid expansion rate of this brand can also be categorised as a success factor. Taking reference of this aspect, a judgmental analysis can be made about the necessity of bringing in workforce diversification within this brand. Under such situations, the ‘relational leadership theory’ might turn out to be a crucial aspect in the context of maintaining appropriate level of harmony within the employees belonging from different cultural background. Caldwel (2003), in this regard, illustrated much about the ‘managerial leadership theory’, which holds high vitality in developing workforce performance by designing effective motivational and rewarding structures. The drastic growth of Samsung within such a short interval also encompasses effective implementation of these sorts of leadership theories (Herald Corporation, 2012). Identifiably, Caldwel (2003) illustrated much about different managerial change theories that find high alignment with the management structure and functional of multinational brands such as Samsung. Justification to this aspect can be provided by taking consideration of the fact that the brand specifically intends towards hiring specific count of female and physically challenged populaces with the prime intention of attaining greater social reputation. Taking reference of such factors, one can perceive about the effectiveness projected by Samsung in the background of implementing appropriate change management theory. In alignment, the brand also intends to implement the TRIZ methodology within its functional structure for effectively managing the areas of problem solving and new strategy development (Samsung BioLogics, 2014). Thus, it can also be categorized as another supportive factor, which eventually helped Samsung to attain high level of growth within a short span of time. It will be vital to mention that in the circumstance of managing change, the brand i.e. Samsung has been able to make dramatic growth within a short time period by promoting technological innovation within the resource managerial structure of this brand. In alignment with the statements projected by Caldwel (2003), Samsung also lays major amount of focus towards the effective implementation of ‘Delphi method’ through which it intends to assign specific roles to the lower, middle and higher level of managers based upon their situational handling capabilities. Thus, it also forms an appropriate factor that supported the growth rate of this technological giant within a short period (Hair & et. al., 2008). Theory 3 (Systems Theory as A Growth Factor for Samsung) Effective implementation of systems theory has always been a decisive factor for Samsung, as it supported in making impressive growth of the company within a shorter time. In this similar concern, Beeson & Davis (2000) also projected similar thoughts about the necessity of this theory in developing multiple other business processes. Samsung’s managerial strategy of perceiving itself as an open system has went along a long way in terms of providing it with the flexibility of making quick and effective changes within its functional areas. A specific reflection of such instance can be apparently observed within the rapid development of mobile phone segment that has been brought about by this brand (Principia Cybernetica, 1992). Taking reference of these aspects, it is worth mentioning that without the continuation of effective product development, multinational brands such as Samsung will not even had a chance of surviving in this competitive marketplace. As a matter of fact, it can be stated that systems theory did made a significant contribution towards supporting the growth rate of this brand within a short period of time. The unique feature projected by Samsung in making suitable upgradations within its smart phone technology by taking feedback from the external surrounding environment is also a crucial aspect that supported the growth rate of this brand by a considerable extent (Principia Cybernetica, 1992). Apart from the above stated facts, Beeson & Davis (2000) also illustrated about the cybernetic model of management, which projects an integrated form of organizational and cultural theories that can be implemented within the work structure of multinational business processes such as Samsung. Credential data about this brand also reveal multiple facts regarding how Samsung has been utilizing this model with the intention of maintaining appropriate communication within its different levels of managerial hierarchy. Further evaluation of this model from a managerial perspective also projects its utility within the management of workforce diversity that form a major aspect of Samsung’s survival in the present competitive market scenario. Taking all these aspects into consideration, the contribution made by the integration of cybernetic model and system theory towards supporting Samsung in experiencing drastic growth care can be ascertained. Theory 4 (Organizations Theory Leading To Static and Dynamic Changes in Contingency Plans) In contrary to the other aspects, Nelson (2003) illustrated about the overall organizational theory that encompasses the parameters under which the static and dynamic changes should be brought within the functional structure of multinational giants such as Samsung. If seen from a logical perspective, the level of practicality associated with the implementation of such static and dynamic change models that eventually supported the growth pace of Samsung in the present era can be determined. Specific focus has been made on the implementation of dynamic change model, which provided Samsung with the flexibility of making quick modifications within its managerial structure, which in turn raised the competitive position of Samsung as compared to multiple other global technological brands such as Apple and Nokia. The facts projected by Nelson (2003) also illustrated the limitations of static change model in context of undertaking small changes necessary for maintaining the functional pace of the organizations. From a technical perspective, Samsung does require an integration of both of these models in order to maintain its present competency levels. Justification regarding this aspect can be provided by taking consideration of the fact that being a multinational organization, Samsung will be bound to witness multiple situational changes as well as challenges within its surrounding environment that might pose intensive threat over the functionality of this brand (Russell, n.d.). Moreover, by witnessing the growth pace of this brand, a greater understanding can be made about the contextualised framework of this brand, which focuses on implementing the dynamic change model to a greater proportion in comparison with that of the static change model. In alignment to this context, Nelson (2003) also mentioned regarding the implementation of temporal elements within the dynamic change model that in an eventual manner guarantees higher levels of returns over limited failures. Likewise, the technological business sector can also be illustrated, as such an entity gets subjected to frequent changes based upon economic and social needs. The functional structure of Samsung within its smart phone business sector also illustrates about a similar kind of reflection that keeps on being modified, as a result of being subjected to stiff competition from other market players. Moreover, rather than just being an imitator of technological advancements, Samsung would also have to bring certain new technological advancements with the prime intention of projecting its reputations within the minds of the customers as being a leader in the areas of smart phone and heavy machinery development technology segment. As a matter of fact, such aspects can also be categorised as a crucial element that has supported the growth pace of this brand within a limited period of time. It is specifically due to the dynamic change model that has provided this technological giant with the capability of undergoing quick adaptations in alignment with the changing market scenarios. Taking these aspects as references, one can justify about the statements quoted by Nelson (2003) to be in line with the provided context regarding Samsung’s growth pace (Russell, n.d.). Theory 5 (Theories of Change management as a Systematic growth Factor) According to By (2005), systematic and holistic approaches illustrated the necessity of change management in the context of making continuous growth within the multinationals such as Samsung. As per the viewpoints of By (2005), all the managerial and systematic theories are executed within the fictional structure of Samsung that get subjected to the changing patterns of external environment. Thus, from a logical perspective, one can understand about the emphasis laid by By (2005) upon the changing nature of the external business environment that subsequently imparts intensive pressure upon an organization’s managerial structure. A similar kind of holistic approach can also be witnessed within Samsung’s managerial structure, which is subjected to continuous change because of the changing external environment. It is worth mentioning that this company i.e. Samsung takes specific reference of the changing customer needs based upon which, it brings considerable level of changes within its new products (Daft, 2012). Rest apart, the organisational theory in an overall manner encompasses multiple other theoretical forms that are oriented towards effective management of cultural and ethical aspects associated within Samsung’s functionality. As a matter of fact, certain effective perceptions can be made regarding the possibility that Samsung will maintain the motivational levels of its workforce by integrating cultural and ethical theories (Daft, 2012). Thus from a general perspective, it can be stated that the organisational theory can be considered as a vital attribute that supported the growth pace of Samsung in this competitive market scenario. The arguments made by By (2005) also illustrated the techniques through which Samsung could use its innovative managerial framework as a counter measure against the competition posed by other technological giants such as Apple and Nokia (Jones, 2008). Conclusion Based on the above analysis and discussion, it can be affirmed from a broader understanding that the above discussed aspects have proved to be highly informative in the context of identifying the theoretical aspects that have ensured rapid growth pace of Samsung in long run. Throughout the discussion, multiple facts have been illustrated that justifies the effectiveness of implementing suitable theories and evolutional models necessary for the continued growth of Samsung in against the challenges posed by other multinational giants. Taking these aspects into consideration, it is worth mentioning that Samsung should focus on developing its dynamic model of change through which it will retail its capability of bringing in continued level of changes within its functional structure. In addition, the discussion also encompasses certain credential facts that Samsung should implement within its functional structure with the prime intention of continuing with its growth pace irrespective if the increasing threat levels of other Chinese smart phone manufacturers. Thus, in conclusion, it can be affirmed that specific preference has also been provided upon the implementation of further diversification within the workforce through which Samsung will succeed in developing higher customer preference levels in domestic as well as international markets and attain several significant benefits. References Beeson, I. & Davis, C., 2000. Emergence and Accomplishment in Organizational Change. Journal of Organizational Change Management, Vol.13, No. 2, pp.178-189. By, R. T., 2005. Organisational Change Management: A Critical Review. Journal of Change Management, Vol. 5, No. 4, pp. 369 –380. Daft, R., 2012. Organization Theory and Design. Cengage Learning. 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