P4: ORGANIZATIONAL STRUCTURE

(VERTICAL) DIVISIONAL STRUCTURE

Samsung organizational structure is (VERTICAL) divisional and the company is divided into
three key divisions: IT & Mobile Communications (IM), Consumer Electronics (CE), and Device
Solutions (DS). The rationale behind the choice of divisional organizational structure relates to
Samsung’s large product portfolio and differences between products and services the company
offers to the market.
Accordingly, Samsung’s each division is managed separately taking into account the
characteristics of their products that have implications on new product development, marketing,
selling and other aspects of the business. Moreover, Samsung Electronics has more than 200
subsidiaries around the world.
Figure below illustrates Samsung organizational structure:
Is it is illustrated in figure above, apart from three divisions, Samsung organizational structure
also integrates corporate management office and Samsung Advanced Institute of Technology
(SAIT). Corporate management office deals with overall management of the group and also has
administrative responsibilities. SAIT is Samsung Group’s R&D hub, established as the incubator
for the development of new products and services.

P5: BUSINESS MODEL

LOW COST STRUCTURE

The business model of Samsung can be described as a corporate business model. It is a publicly
listed company with a Board of Directors and shareholders as well. The conglomerate structure
of the business model of Samsung is a large company with many divisions and subsidiaries
under one holding company. These units have unrelated businesses. The top Management level
of Samsung is occupied by the three CEOs such as KIM KI NIM, KIM HYUN SUK and KOH
DONG JIN

Quality high technology products at a reasonable price are one tactic Samsung firmly complies
with the unique selling proposition for Samsung is mostly in the quality of their products,
conjoined with the high tech implanted into the electronic products and reasonable price range.
Samsung has been more competitive because of its low-cost structure, its aptitude for
adaptation to economic events. Being present in so many product categories, Samsung follows a
variety of pricing tactics. When Samsung launches a new product in the market, it initially uses a
skimming price for the product. It uses this tactic and tries to get high value in the start before
competitors come up with a similar configuration.  In addition, when the product is outdated or
the same product from another company is released in the market, the price immediately drops. 
Additionally, Samsung also uses competitive pricing for home appliance products.

P7: MILES AND SNOW TYPOLOGY

ANALYZER STRATEGY
Samsung also using analyzer strategy, Samsung let other organizations take the risks of
product development and marketing and then imitate what seems to work best. Samsung
analyzing their competitors in the market. For example, some of the things Apple did
first and that Samsung then brought to its own devices such as retina display, 64-bit
mobile processors, fingerprint sensor and Apple Pay. 3D Touch and Live Photos are iPhone
6S features that Samsung is rumored to bring to the galaxy
P13: EMPLOYEE MOTIVATION AND CAREER GROWTH,
TURNOVER RATIO.

Samsung group has been growing quickly for the last ten years based on Korean exclusive
historical and economic backgrounds. Especially, Samsung Electronics, which is the biggest
subsidiaries in the Samsung Group. To become a successful company Samsung need to have
workers that really enjoy working there and giving their best effort for the company. The
manager of Samsung Electronics still need to give motivation their employees. Motivation is the
set of forces that initiates, directs and makes people persist in their efforts to accomplish a
goal .There are three theories in motivation. One of them is McClelland’s Learned Needs
Theory. Three motivators divide the theory itself. The three motivators are affiliation,
achievement and power. Samsung Electronics applies this theory to motivate their worker. With
a good relationship between the employees, Samsung Electronics has many achievements in
the past 20 years in electronics industry. Based on McClelland theory, achievement is one of
motivators for the employees. All the achievement that Samsung Electronics has accomplished
makes the employees works better and harder.  Also with all the achievement, the employees can
feel proud working there. They feel like they have contributed something good to the world.
There is so many awards that Samsung Electronic has achieve for example as if Samsung
selected as the winner of 2010 IEEE Corporate Innovation Recognition, the winner
environmental moon-printer of the year and won CES Eco-Design Award in January 2012. In
addition, Samsung Electronics won if Design Awards in 2012
PROMOTION
The employees deserves a promotion if they doing a great job and has led to many achievements.
A big company like Samsung Electronics provides promotion opportunities for each employees
that works really well. The purpose of promotion is to make the employees motivated. In this
case based on McClelland theory Samsung Electronics has apply one of the motivators which is
power. Promotion is one of the example for applying power. Samsung Electronics gives an equal
opportunity employer for men, woman and the disabled. Opportunities are open to all those who
seek them. For example, in the past two years 329 female employees have been promoted to a
section chief manager. The assurance of equality in promotion and treatment allows female
employees to fully display their abilities.
BENEFITS
 Financial wellness
 Flexible spending accounts
 Student loan support
 Fitness reimbursement
 Samsung provides an incentive for biometric screenings, PSAs, pap smears and
mammograms to support long-term health.
 Annual physical
RETENTION LEVEL IN SAMSUNG
Samsung's Retention score is rated a "B-" by 417 employees. The category helps understand
Samsung's focus and commitment to retaining employees in their organization. Over the past
three months, Samsung's Retention score has remained steady at 71/100. Samsung ranks in 3rd
place versus 5 competitors, which include Qualcomm, Apple, Nokia, Sony, and BlackBerry. The
IT and Sales departments are likely to stay at the company the longest, while the Product and
Marketing departments are likely to have the highest turnaround. Samsung’s Retention score is
in the Top 40% of 1341 similar sized companies (10,000+ Employees) on comparably. The
Company ranks in the Bottom 45% compared to 932 nearby companies in San Francisco.

P14: MARKETING, ADVERTISING AND PR ACTIVITIES

OVER THE YEARS.

Samsung Electronics has today been recognized by Interbred, a global brand consultancy, as
one of the top five in the Best Global Brands 2022. Each year, Interbred announces the
world’s top 100 brands, and Samsung’s brand value was evaluated for USD 87.7 billion,
which represents 17% growth compared to USD 74.6 billion in 2021, ranking the company in
fifth place for three years in a row. The achievement was based on Samsung’s restored
financial performance, which is now near pre-pandemic levels, and higher demand for
memory due to an increase in data usage. In 2021, Samsung scored a brand value growth of
20% compared to 2020 and this year, continues the double-digit growth. Samsung first
entered the top 10 list in 2012, placing in ninth position, and has managed to rise in the chart
each year, reaching sixth place in 2017 and fifth place in 2020.
 
“Samsung Electronics was able to record two consecutive years of double-digit growth in
brand value, all thanks to the support from our global customers,” said YH Lee,
Executive Vice President and Chief Marketing Officer of Samsung Electronics. “In
return, the entire company will work together as a team to provide a better and more
satisfying customer experience.”

Various Factors Evaluated by Interbred to Build the Samsung Brand Value 

At the end of 2021, Samsung Electronics merged its SET Division and created the Device
experienced Division to increase synergy among its products and provide a next level of
experience to customers. Furthermore, Samsung also launched the Customer experience-Multi
Device Experience Center to strengthen its multi-device connection experience. Along with
these measures, Samsung has integrated the SmartThings across its product categories,
creating an inclusive ecosystem and a multi-device experience. SmartThings also empowers
consumers to get the most out of their Samsung devices, as well as third-party products they
may already own. In addition, Samsung’s Future Generation Lab has been created to foster
authentic conversations around the activities of the next generation. The insights from the lab
have been applied to the products and marketing activities As well as innovative products
based on consumer experiences, the development of advanced technologies such as artificial
intelligence (AI), 5G, automotive and robotics through consistent investment also played a
role in Samsung’s growth.
 Samsung’s Recognized Efforts in Each Product Division for a Better Customer Experience
 
MOBILE
 Camera innovation of Galaxy S22 series based on customers’ insights, and Nightography
campaign rollout Cementing leadership in the foldable mobile phone category
 Partnership with Google and Microsoft to strengthen users’ connected experience
 Respecting the value of user security and privacy through Samsung Knox

NETWORK
 Pioneering network innovation path in virtualization and openness with large-scale
commercial experiences
 Driving 5G industry with its market-leading 5G portfolio from RAN and Core to
automation tools
 Realizing the ESG commitment through intelligent network solutions for energy
efficiency
 

P15: POWER AND POLITICS WITHIN SAMSUNG

Yes there are lot of politics influence in Samsung Company because its big giant in south
Korea according to some studies there’s is saying Samsung largely controls the South Korean
government so according to my research I wouldn’t go as far as to say control, but definitely
Samsung, and a lot of other huge conglomerates have been bribing government officials. Much
of what is shown in Korean movies (cash inside a box of apples), are all found to be true. People
call it a conspiracy, but recently Samsung electronics CEO has been caught for bribery, and
many other conglomerates have also been caught. The big problem is that there are only two
main parties, and both elect their own candidates, so as citizens, we only have a choice between
two candidates, hence the corrupt government ever since our government was formed. There
hasn’t been a SINGLE term without a problem. This is also the reason why the two main parties
keep changing their names.