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Samsung Group’s Supply Chain and Operation Management

Introduction

Over the past few decades, Samsung has become the household name that has been integrated into every facet of people’s everyday life. Similarly, the company’s products have been integrated firmly into the business setting of numerous companies, thus cementing Samsung as a global brand (Tsai & Chang 2018). To explore the observed phenomenon, one will need to deconstruct the current approach that the firm has been using to advance its products and retain its top position in the global market (Slack, Jones & Johnston 2016; Johnston, Clark & Shulver 2012). Due to careful and well thought-out use of its resources, including time and information, Samsung has designed the SC that has made it possible for the company to remain easily recognisable and increasingly popular.

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Samsung’s Operation Management (OM) Decision Areas

Quality

Samsung is one of the brands that have cemented their image in the modern culture. To maintain the image of a highly efficient organisation, Samsung has been focusing on the quality of its products extensively, updating the relevant requirements regularly and controlling the output rigidly (Yulianda & Handayani 2015). Examining the global operation management (GOM) of the organisation, one must give credit to its approach toward quality management (Slack, 2012).

The company views sustainability as one of the cornerstones of its WM strategy, which defines the further choice of QM approaches, including lean manufacturing and the total quality management (TQM) framework (Huang 2016). By incorporating innovative solutions into its QM processes, Samsung has managed to retain its customers’ loyalty despite several issues with the recent products provided by the organisation.

The company has been exploring new methods of maintaining quality at high rates. For example, the integration of the 8-Point Battery Safety Check framework has allowed Samsung to avoid defects at the assembly stage of the production process (Samsung Group 2017a). In a similar way, the multi-layer safety measures protocol created by Samsung has contributed to establishing tighter control over the production stage of SCM and especially the assembly process (Samsung Group 2017a).

Finally, in response to the recent issues with battery malfunctioning, the company has introduced the battery advisory group stage into the production phase (Samsung Group 2017a). The innovative approaches described above can be viewed as clear examples of innovative technology being used for the benefit of an organisation and its customers.

Human Resources Management (HRM)

Samsung’s approach toward HRM has been quite positive since the conception of the firm. The organisation started with the strategy that openly acknowledged the company’s willingness to diversify its team and cater to the requirements of multicultural representatives thereof (Rani et al., 2016; Johnston et al. 2012). While other companies would stop at the specified level of HRM innovations, Samsung continued to develop to attain the current status of the company that actively invests in its staff (Huang 2016).

For example, the Human Tech prise that the company established in 2015 signifies that Samsung is ready to attract talented employees to help them explore their potential within the environment of the organisation (University of Texas 2015). By creating a Talent management tool that encourages the staff’s professional growth actively, Samsung has reached the pinnacle of talent management by spurring the professional growth among its potential employees

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At the same time, the organisation’s leaders should pay closer attention to the actual implementation of the principles that they promote. According to recent data, there have been numerous complaints about the conditions in which staff members have to work (Kim & Bae 2017; Johnston et al. 2012).

Thus, the culture of dedication, which is promoted within the organisational setting, affects the corporate values and behaviours, causing minor issues in the management of relationships in the workplace. It could be suggested that the organisation should enhance its corporate values along with establishing tighter control over managers’ decision-making (Kim & Bae 2017; Greasley 2013). Thus, the issues associated with managers overstepping the boundaries of the workplace ethics and causing disruption in the organisational setting can be avoided.

Supply Chain Management

Of all the elements of Samsung’s OM, the SCM deserves a special mentioning as the company’s crowning achievement. The unique design based on five criteria that Samsung has distilled for the control of its SCM processes has provided the foundation for an outstanding performance. Particularly, Samsung has devised the framework within which five key components are analysed; these include cost competitiveness, timely delivery of the end product, supplier competitiveness, adequate response to market risks and human resource capacity (Slack et al. 2016). When incorporated into a single system, the specified criteria contribute to the excellent functioning of Samsung’s SCM.

The ability to manage data properly is one of the critical aspects of the framework that Samsung has devised. Owing to the elaborate information management framework that Samsung has developed, the company has been able to maintain its timely delivery standards across its SC, as well as provide adequate responses to emergent risks, including technological, social, environmental, and financial ones (Slack et al. 2016).

The efficacy of the SCM strategy used at Samsung depends heavily on the use of green technologies and the concept of data sharing (Singla 2016). As a result, the performance of Samsung’s SC remains environmentally friendly and delivers the best results possible, keeping the company aware of the slightest changes within the market. Similarly, the described approach allows the firm to respond to the changing demand within the global market.

Samsung and Nokia Corporation: Comparison

Samsung has been facing impressive competition challenges since its foundation, Nokia being its key opponent. Samsung and Nokia use a similar approach in managing their SCs, which reinforces the extent of their rivalry (Bala & Singh 2016). However, Samsung has the potential to surpass Nokia by increasing the variety of its services. The current variation of Samsung’s products is quite high, with most of the devices that the company provides being offered in different colours (Bala & Singh 2016).

The variety of Samsung’s devices is, in turn, very impressive, yet the firm could extend the range of its production even further by including specific business equipment for data collection and analysis. Nokia’s variety and variation, in turn, are at the medium level (Samsung Group 2017b). The volume and visibility of both companies are, however, extraordinarily high. Therefore, it is desirable that Samsung should continue exploring opportunities for expanding the variety and variation of its products by using new materials and ideas.

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Improving Operational Performance at Samsung: Suggestions

Although Samsung has been performing quite well, it still needs a boost in order to keep competitive in the market that is driven by innovations. Enhancing the company’s operational performance will become possible once Samsung revisits its current approach toward HRM. The specified decision might seem weird given the excellent talent management framework, yet the control issue needs to be handled appropriately (Pinto 2016). By preventing the cases of power abuse in its setting through a change in its corporate values and a leadership strategy, Samsung will become more competitive.

In addition, the R&D processes could be enhanced so that Samsung could produce innovative ideas. Meeting new demands in the digital market means researching the current trends and setting the platform for innovations is critical for Samsung at present since rivals such as Nokia pose a threat to Samsung’s success. Therefore, the organisation will have to develop new products that will help it keep the attention of the target audiences on its products (Huang 2016; Heizer et al. 2017; Fitzsimmons, Fitzsimmons & Bordoloi 2014). In addition, it will be reasonable for Samsung to consider producing business equipment for other organisations and stake several niches in the digital market.

Finally, the OM processes at Samsung can be enhanced by studying the opportunities that the digital market offers. Although Samsung has already integrated most of its services into the digital realm, some of the e-marketing opportunities have not been considered (Tsai & Chang 2018). For example, the tools for enhancing data management across the SC should be treated as an important addition to the company’s current range of instruments (Heizer et al. 2017). Thus, Samsung will be able to monitor and forecast trends in demands for smartphones and other devices produced by the organisation.

The integration of the proposed techniques will help Samsung to expand its influence and attract the attention of new audiences through improved quality management and product diversity. By forecasting the trends within the target market successfully, the organisation will increase its sales significantly and become the leader in the global market (Heizer et al. 2017; Chase, Jacobs & Aquilano 2006). While the recent development of new smartphone models should not be abandoned, Samsung may need to consider taking a unique niche that will help it grow and gain the attention of other organisations.

Conclusion

Due to the elaborate application of IT and ICT tools within Samsung’s SC to encourage information management, avoid risks, and promote sustainability, the company has been performing extraordinarily well in the target market. However, the firm’s approach to talent management has been affecting its performance to the greatest extent. In order to promote the further economic growth, one will need to consider expanding its digital marketing capabilities, at the same time creating a unique competitive advantage.

Thus, ti will be able to maintain its position as an unpatrolled producer of mobile phones and gadgets. At present, Samsung is strongly encouraged to focus on expanding its R&D processes and exploring new ways of enhancing its digital marketing strategies. By embracing a wider greater number of potential clients, the Samsung Company will gain an increasingly vast influence in the industry.

Reference List

Bala, MR & Singh, DP 2016, ‘Nokia: its not over yet, a come back in 2016’, International Journal of Management, IT and Engineering, vol. 6, no. 2, pp. 222-234.

Chase, RB, Jacobs, RF & Aquilano, NJ 2006, Operations management for competitive advantage, 11 edn, Irwin/McGraw-Hill, New York, NY.

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Fitzsimmons, JA, Fitzsimmons, MJ & Bordoloi, S 2014, Service management: operations strategy information technology, McGraw-Hill, New York, NY.

Greasley, A 2013 Operations management, 2nd edn, Wiley, New York, NY.

Heizer, J, Render, B & Munson, C 2017, Operations management: sustainability and supply chain management, 11th edn, Pearson, New York, NY.

Huang, X 2016, ‘A research on the evolution of politic-business network, relational embedded and family enterprise value: regarding SAMSUNG Group as example’, Open Journal of Business and Management, vol. 4, no. 4, pp. 696-715.

Johnston, R, Clark, G & Shulver, M 2012, Service operations management: improving service delivery, 4th edn, Pearson, New York, NY.

Kim, DO & Bae, J 2017, Employment relations and HRM in South Korea, Routledge, New York, NY.

Pinto, JK 2016, Project management: achieving competitive advantage, 4th edn, Pearson, New York, NY.

Rani, HMNS, Zuber, F, Yusoof, M, Zamziba, M & Toriry, S 2016, ‘Managing cross-cultural environment in amsung company: strategy in global business’, International Journal of Academic Research in Business and Social Sciences, vol. 6, no. 11, pp. 605-613.

Samsung Group 2017a, Samsung announces new and enhanced quality assurance measures to improve product safety. Web.

Samsung Group 2017b, Samsung Electronics reinforces powerful Tizen 3.0 SMART Signage Display Portfolio. Web.

Singla, AK 2016, ‘Issues in supply chain management’, International Journal in Applied Studies And Production Management, vol. 2, no. 1, pp. 23-29.

Slack, N 2012, Operations and process management: principles and practice for strategic impact, FT Press, New York, NY.

Slack, N, Brandon-Jones, A & Johnston, R 2016, Operations management, 7th edn, Pearson, New York, NY.

Tsai, WL & Chang, PT 2018, ‘Combining data envelopment analysis and competitive dynamic theory for exploring global smartphone manufacturers’ performance’, JABS, vol. 4, no. 2, pp. 109-125.

University of Texas 2015, Hyun Joon Jung receives 2015 Samsung Human-Tech paper award. Web.

Yulianda, S & Handayani, T 2015, ‘The effect of two aspects-quality products and consumers psychology-toward the purchase decisions of Samsung mobile phone’, Mediterranean Journal of Social Sciences, vol. 6, no. 5, pp. 203-208.

Appendix A: Samsung vs. Nokia

Samsung vs. Nokia

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StudyCorgi. (2020, December 16). Samsung Group’s Supply Chain and Operation Management. Retrieved from https://studycorgi.com/samsung-groups-supply-chain-and-operation-management/

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