Summary The article discusses Samsungs progress from a low cost imitator to a globally acclaimed brand. The article identifies the hybrid system initiated by the firm’s chairman as the cornerstone of its success. Built on the concepts of Japanese model of diversification and western model of focus, the firm has excelled in using the best from the two worlds to create a hybrid model that dwells on innovation and design. Culture emerges as a key concept in globalization for Samsung and any firm seeking to enter the global market.
Leadership is also important in managing organisations. Good leadership from the Chairman as opposed to good management is responsible for developing Samsungs long term vision of steering the firm in the highly competitive market through innovation and design excellence. Samsung has also invested heavily in human resource development and training. The common theme in Samsungs operations is reengineering its business strategies and processes. This continuous process allows the firm to remain relevant both in the labour and products market. This article captures the following concepts from the unit. -Innovation-Market research-Managing human resourcesQuotesFrom the article, a major quote that captures the content of this course is; Into a homogeneous workforce, Samsung introduced outsiders who could not speak the language and were unfamiliar with the company's culture.
Into a Confucian tradition of reverence for elders, Samsung introduced merit pay and promotion, putting some young people in positions of authority over their elders. It has been a path marked by both disorienting disequilibrium and intense exhilaration. This captures best the concepts of creativity in the mind of an entrepreneur. From inside the entrepreneurial mind: from ideas to reality” creativity is defined as “the ability to develop new ideas and to discover new ways of looking at problems and opportunities; thinking new things while innovation is defined as “the ability to apply creative solutions to problems or opportunities to enhance or to enrich people’s lives; doing new things.
This exactly defines what Lee did with Samsung. The chairman developed new ideas of doing things at the firm by combining western business model with Japanese ones. It is indicated that Samsung prior to the introduction of the western ways of doing business, the firm relied on a Confucian ideology that was based on rewarding employees by virtue of age rather than merits.
The creation of a hybrid model highlights Lee’s creativity; He challenged traditions and introduced western business ideologies. His innovative mind is also captured by introducing the concept on integrating culture by bringing in outsiders into Samsung and sending insiders abroad to learn more on management. The advent of globalization and mobility of labor did not go unnoticed by Lee as the head of SEC. according to Senge (2006) the cultural environment for entrepreneurs have defined their destiny.
From this knowledge, Lee identified the need to integrate various cultures into Samsung in order to make the firm gain a global culture. Previously, Samsung was dominated by Korean culture in products and management strategies. Lee realized that for Samsung to succeed in the global market, it had to have a global outlook that is tandem with global market needs and trends. The workforce was the first stopover. This has been an ongoing process that has enabled the firm to identify opportunities in new markets, develop products that meet various regional markets and the like.
For instance, one Samsung employee is credited with the firm’s success in Thailand. This was a product of Lee’s idea of sending insiders to new markets and countries to explore them.