The paper 'Samsung Group' is a good example of a Management Assignment. Samsung Group is a South Korean Technology company that was originally started as a small export firm in 1938 by Byung-Chull Lee as the founding chairperson. The small business located in Taegu was started using 30 000 won. The primary focus of the business at the time was on export trade of vegetables, dried Korean fish, and fruits. Beijing and Manchuria were the destination of the products from the Samsung group as a small business organization. The company then started growing over the years, but the main breakthrough that the company got was in 1980 when it bought telecommunication company Hanguk Jeonja Tongsin.
At this stage, the company started the production of fax machines, switchboards, and telephones, and this when the company was given the company name Samsung Electronics Company Limited that combined all units. It was during the 1980s that the company expanded globally to parts including England, Tokyo, New York, Portugal, and Texas. After the death of its founder in 1987, the company was divided into three main groups, but the company later focused on three key industries in 1993.
The key industries were chemicals, engineering, and electronics. The renewed attention in the electronics industry was essential to the company's growth, and its investment in LCD technology made the company rise as in 2005 it was a world-leading producer of LCD panels. Through its vision for the decade “ inspire the world, Create the Future, ” the company has never looked back in the electronics industry especially mobile technology. However, the Samsung journey has not been smooth sailing since its inception in 1938 to the present.
In 2008, the Samsung group was investigated for three months on issues about widespread corruption in the company (Song Jung, 2008). Lee Kun-hee who was the chairperson at the time together with nine other executive members was charged with tax evasion, bribery, and breaching of trust. This scandal was mainly about an attempt by Lee Kun-hee to give the company’ s control to his son Lee Jae-Yong. The company was accused of corruption activities including bribery and managing large slush funds. These allegations were from Kim Yong-Chul, a former legal adviser to the company.
Lee Jae-Yong ultimately took control of the family from his father in 2014 and promised transparency, but he was arrested this year on scandals that included trying to impeach the South Korean president and embezzlement of funds of up to 48 Million USD. Apart from corruption issues, the company is faced with product quality issues. The company has recalled over 2.8 million washing machines in 2016 alone because the machines fell apart during use. Apart from washing machines, the Samsung Galaxy 7 phones had quality problems that caused safety fears because of overheating and being fire-prone.
The company had to recall all the Galaxy Note 7 phones (Jethro & Kwon, 2016). The company has however remained focus even with these problems through its vision 2020 projections where it has projected to reach 400 billion USD in revenue and rank among the top five brands annually. The company's next leader should look forward to keeping investors and politicians on the side of the conglomerate and find new ways to develop and grow the company further.
Jethro M. & Kwon, K. J., 2016. ‘Samsung is recalling the Galaxy Note 7 worldwide over battery problem’ CNN Tech, [online]. Available at: http://money.cnn.com/2016/09/02/technology/samsung-galaxy-note-7-recall/ [Accessed 24 March 2014].
Robbins, S. P., Bergman, R., Stagg, I., & Coulter, M., 2015. Management.
Sommerville, K. L., 2007. Hospitality employee management and supervision: concepts and practical applications. Hoboken, N.J, Wiley.
Song, Jung, 2008. ‘Samsung faces one of its biggest challenges,’ Financial Times, [online]. Available at: https://www.ft.com/content/ce073e32-0ca6-11dd-86df-0000779fd2ac [Accessed 24 March 2014].