Applying Organizational Design to a Case
BUS 6110: Organizational Strategy
Course Instructor:
MAY 2022
Applying Organizational Design to a Case: SAMSUNG
The Samsung Group is comprised of Samsung Electronics Co., Ltd. and its several sister
companies and subsidiaries. The technological conglomerate's corporate structure is shown to
be applied throughout activities in this internal analysis. A good example of this is Samsung
Electronics, which shares many of the same structural qualities as the conglomerate. To
maintain its competitive advantages against a wide range of rivals, including Apple, Google,
Sony, Intel, Dell, Acer and Lenovo; this uniformity in the organizational structure aids in
streamlining the company's operations.
At every level of Samsung's corporation, innovation in technology is promoted, and
according to Evans (2019), Samsung's organizational structure relies on this. As seen by the
rapid development of smartphones and other consumer electronics, Samsung's plans center
on technological innovation. Structural facilitation aids in the implementation of Samsung's
generic competitive strategy and aggressive expansion tactics. From a small trading firm to a
worldwide operation with multiple divisions offering cutting-edge technologies, the
company's organizational structure reflects this evolution as well. Samsung employs several
operations management solutions adapted to certain markets and industries because of the
company's extensive involvement in a wide range of activities. The company's structure and
organizational architecture encompasses a wide range of technology-related industries and
enterprises, such as computer technology. The organizational structure of Samsung allows for
effective market penetration and market development strategies, which also empowers
competitive advantages to promote the continuity and success of the company in an
increasingly saturated and fiercely competitive environment. As a result of this divisional
organizational structure, Samsung has three primary divisions: IT and Mobile
Communication (IM), Consumer Electronics (CE), and Device Solution (DS)
(Doduvskiy,2017).
In addition to these three departments, Samsung also maintains a corporate administrative
office and a technical research institute called the Samsung Advanced Institute of Technology
(SAIT). The corporate structure of Samsung exhibits the following characteristics:
• Product-type division
• Centralized
• Geographical groupings
I am making use of the star model to determine my recommendations for Samsung. Strategy,
Structure, Processes, Rewards, and People make up the five pillars of the Star Model. One
may successfully influence its organization's actions and behaviours by connecting and
aligning these pillars. All five of these parts of the implementation process are affected by the
company's choice of business model. (Garner, 2015). The pillars of the Star model are:
1) Strategy: This influences the company's direction.
2) Structure : This defines the distribution and mobility of power and authority and is
essential to department formation.
3) Processes: "The flow of information and decisions characterizes organizational processes"
(Garner, 2015).
4)Rewards: Rewarding employees entails aligning their goals with those of the organization.
5) People: This refers to the people resources required to carry out the company's strategies,
including recruiting, training and development, rotation, and promotion.
Recommendations
These are a few suggestions I've come up with after looking at Samsung's existing structure.
Open innovation relationships with other firms and academic institutions should be
increased to develop more consumer products or exciting versions of existing ones.
The Product-based divisions should be given more autonomy, which will lead to
increased creativity and invention in these divisions.
There is a need for greater variety in reporting and structure, particularly when it
comes to different regions.
In conclusion, the implementation process is affected by the company's choice of business
model however this may help Samsung to evolve as a business and to be stable
References
Evans L (2019, March 18) Samsung’s Organizational Structure & Its Characteristics (An
Analysis) Panmore Institute. Retrieved from http://panmore.com/samsung-corporate-
organizational-structure-characteristics-analysis
Dudovskiy .J. (2017, November 20). Samsung Organizational Structure: Divisional
According to Product Types. Business Research Methodology. Retrieved From
https://research-methodology.net/samsung-organizational-structure-divisional-according-
product-types/
Garner.B.(2015, February 03).Implementing Your Business Model Into The Galbraith Star
Model. Strategyzer. Retrieved from
https://www.strategyzer.com/blog/posts/2015/2/03/implementing-your-business-model-with-
the-galbraith-star-model
