Using Samsung’s most current Corporate Governance Report – what is their Mission and the Vision of their CEO?
The mission of the CEO is to use human resources and technology to create unique products that will attract customers and make global society better. On the other hand, the vision of the CEO is to make the company remain innovative through new products and designs that change the lives of people and inspire the world.
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When Samsung introduced the Galaxy S 10, what was their intended strategy? What was their realized strategy? What might have contributed to any differences between their intended strategy and their realized strategy?
The intended strategy for Samsung when introducing Galaxy S10 was to increase their sales by targeting the customers who love the new technological experience. The phone comes with a big screen, two cameras and many other innovations aimed at increasing customer’s experience. However, the phone did not sell as the company has estimated, with the key reason being the pricing. Samsung Galaxy S10 is seen by many as expensive and could not attract as many sales as expected despite having improved features.
Fill in the following table using SMART Goals as they related to the balanced scorecard for Samsung’s IM Division (use their 2019 Business Plan and Sustainability Plan to determine their SMART goals )
| Criteria | Specific Goal | How was it measured | What was their aggressive goal | What was the realized outcome? | What is the GAP? |
| Financial Goals | By 2020, the company aims at achieving annual sales of USD 400 billion ( Sustainability Report, 2019 ) | The target $400 billion sales by 2020 were measured based on 36% annual sales increase for the last five years. | The aggressive goal is to make Samsung amongst the leading brands globally through creativity and partnership | The company has recorded a 13% drop in its sales in the first quarter of 2019, an indication that the target sales of $400 billion by 2020 could not be achieved. | The gap has been due to the falling demand for memory chips and low sales for galaxy S10. Samsung heavily relies on supplying third-party manufacturers with chips. |
| Customer Goals | The company targets to have then 3.9 billion active customers by 2020 and dominate the market share | The target number of customers was measured by the 27% annual increase in the market share of the company. | The goal is to increase customer loyalty through the production of unique brands that leads in the global market | The company has however realized a slight decrease in its customers, with market share for 2019 falling to below 27% | Increased competition from other firms such as Apple has contributed to a decline in the market share |
| Internal Business Processes | The company aims at reducing its costs by up to 15% by 2020 while increasing the quality, flexibility and customer satisfaction ( Report Policy, 2019 ) | This was measured based on the results of the previous years which has seen the company reduce its costs and increase the quality | The company aims at being the leading brand in terms of quality, delivery, flexibility and customer satisfaction while minimizing costs by 2020 | Despite the cost leadership strategy, Samsung has only achieved a 5% cost reduction by 2019, and the prices of some of its products are still high | Failing to meet the cost reduction strategy has been due to high expenditure on annual research and development by the company to launch new products |
| Learning and Growth Measures (sometimes called Organizational Capacity) | The company aims to be the world’s leading in the push for learning and technological innovation as a factor for competitive advantage by 2020 | This was measured based on the continued innovation and growth through technological innovation and product differentiation | The company aims at being the leading company in terms of growth, innovation, and creativity globally | The company has been able to record the highest growth and a leader in innovation globally | The result has been due to constant innovation and investment in R&D which has put the company in the global map |
How would you describe Samsung’s current CEO, Ki Nam Kim leadership characteristics? Has he been able to build an Entrepreneurial Organization? Why or why not?
The CEO can be described as being a visionary leader who has managed to set a vision for the company and take it towards the realization of that vision. He also possesses great innovation and creative skills, which have been instilled amongst the employees to make the company the leader in creativity in the industry. He has built an entrepreneurial organization through his strategic goals and good decision making leading to the recorded growth of the company in recent years.
References
Sustainability Report │ Financial Information │ Investor Relations │ Samsung Global. (2019). Retrieved 11 September 2019, from https://www.samsung.com/global/ir/reports-disclosures/sustainability-reports/
Report Policy | Sustainability | Samsung US. (2019). Retrieved 11 September 2019, from https://www.samsung.com/us/aboutsamsung/sustainability/report-and-policy/
