A live Project Group presentation on

“A study on the organizational structure of Samsung”

Prepared By
Name: Joydeep Datta, Mamwchang Debbarma & Vivek Saha
Section: MBA 1st Year (Gen)
ID No: 21IUT0160060, 21IUT0160061& 21IUT0160062

Batch- 2021-2023
Under the Guidance and Supervision of
  
Dr. T.S.Haokip

ICFAI UNIVERSITY TRIPURA

 Table of Contents

Slide No. Title

3 Introduction
4 Company Profile
5 Objective of the study
5 Methodology
5 Limitation
6-11 Analysis of the company
12 Findings

13 Reference
 INTRODUCTION
 What is an organizational structure?
 An organizational structure is a system that outlines how certain activities are directed to achieve the goals of an organization. These activities can
include rules, roles, and responsibilities.
The organizational structure also determines how information flows between levels within the company. For example, in a centralized structure,
decisions flow from the top down, while in a decentralized structure, decision-making power is distributed among various levels of the organization.
 Types of Organizational Structures
Functional Structure
Four types of common organizational structures are implemented in the real world. The first and most common is a functional structure. This is also referred
to as a bureaucratic organizational structure and breaks up a company based on the specialization of its workforce. Most small-to-medium-sized businesses
implement a functional structure. Dividing the firm into departments consisting of marketing, sales, and operations is the act of using a bureaucratic
organizational structure.
Divisional or Multidivisional Structure
The second type is common among large companies with many business units. Called the divisional or multidivisional structure, a company that uses this
method structures its leadership team based on the products, projects, or subsidiaries they operate. A good example of this structure is Johnson & Johnson.
With thousands of products and lines of business, the company structures itself so each business unit operates as its own company with its president.
Flatarchy Structure
Flatarchy, a newer structure, is the third type and is used among many startups. As the name alludes, it flattens the hierarchy and chain of command and gives
its employees a lot of autonomy. Companies that use this type of structure have a high speed of implementation.
Matrix Structure
The fourth and final organizational structure is a matrix structure. It is also the most confusing and the least used. This structure matrixes employees across
different superiors, divisions, or departments. An employee working for a matrixed company, for example, may have duties in both sales and customer
service.
 COMPANY PROFILE

The Samsung Group stylized as SΛMSUNG is a South

Korean multinational manufacturing conglomerate headquartered in Samsung Town, Seoul,
South Korea. It comprises numerous affiliated businesses, most of them united under
the Samsung brand, and is the largest South Korean chaebol (business conglomerate). As of
2020, Samsung has the 8th highest global brand value.
Samsung was founded by Lee Byung-chul in 1938 as a trading company. Over the next three
decades, the group diversified into areas including food processing, textiles, insurance,
securities, and retail. Samsung entered the electronics industry in the late 1960s and the
construction and shipbuilding industries in the mid-1970s; these areas would drive its
subsequent growth. Following Lee's death in 1987, Samsung was separated into five business
groups – Samsung Group, Shinsegae Group, CJ Group and Hansol Group,
and Joongang Group.
Notable Samsung industrial affiliates include Samsung Electronics (the world's
largest information technology company, consumer electronics
maker and chipmaker measured by 2017 revenues), Samsung Heavy Industries (the world's
2nd largest shipbuilder measured by 2010 revenues), and Samsung
Engineering and Samsung C&T Corporation (respectively the world's 13th and 36th largest
construction companies). Other notable subsidiaries include Samsung Life Insurance (the
world's 14th largest life insurance company),  Samsung Everland (operator of Everland
Resort, the oldest theme park in South Korea) and Cheil Worldwide.
 OBJECTIVE OF THE STUDY

 To find out the organizational structure of a Samsung company.

METHODOLOGY

 Secondary data has been collected from the websites.

LIMITATION

 One company of Organizational Structure.

 ANALYSIS OF THE COMPANY

 SAMSUNG COMPANY ORGANIZATIONAL STRUCTURE CEO

The responsibilities of an organization's CEO or MD are set by the organization's board of directors and other authorities,
depending on the organization's legal structure. They can be far-reaching or quite limited and are typically enshrined in a
formal delegation of authority. Typically, the CEO/MD has responsibilities as a director, decision-maker, leader, manager, and
executor. The communicator role can involve the press and the rest of the outside world, as well as the organization’s
management and employees; the decision-making role involves high-level decisions about policy and strategy. As a leader of
the company, the CEO/MD advises the board of directors, motivates employees, and drives change within the organization. As
a manager, the CEO/MD presides over the organization's day-to-day operations.
 DIGITAL MEDIA AND COMMUNICATION
Digital communications are just what they sound like: communications performed with and by digital technology. Multimedia
developers and managers use digital communications methods to create a variety of entertainment, graphic design, and artistic
productions.
 CONSUMER ELECTRONICS
For more than 40 years, Samsung Electronics has been at the forefront of innovation, delivering breakthrough products and
exceptional value to people around the world. As the #1 Consumer Electronics company, Samsung Electronics is the global
leader in mobile, semiconductor, and display technologies. Through our successes with the Galaxy SIII and the Galaxy Note
series, as well as our groundbreaking advances in computer memory and green technology, we continuously strive to push the
limits of technology to better people’s‟ lives guided by the simple philosophy, „Inspire the World, Create the Future‟ we are
committed to shaping the future of technology and setting the standards in the realm of fast, dynamic change.
 IT and MOBILE COMMUNICATION
Has been a specialist provider of wide-area digital radio dispatch solutions and antenna sites. We lead the industry in providing
seamless, flat-rate airtime on our independently owned Trunked Networks and the most up-to-date technologies in a rapidly
changing market.
 MOBILE COMMUNICATION DIVISION
Communications and collaboration at any time at any place. Important businesses include telecommunications services-based
businesses (telephony, UC application solutions), solution/service-based businesses (mobile office, single), and software
development support businesses (mobile contents, ESDM).
 DEVICE SOLUTIONS
Samsung's Device Solutions Business leads the world's memory and LCD markets in product and technology development. It
consists of four major divisions:
 The Memory and System Large-scale Integration (LSI) Divisions, comprising Samsung's semiconductor operations, and
LCD and Storage Systems Divisions.
 
 In a fast-paced electronic components industry, marked by intense competition and market volatility, clearly differentiated
products from each of these divisions have helped spur continued growth.
 Samsung's Memory Division
Designs and manufactures integrated circuits for storing digital information. It is the market leader in dynamic random-access
memory (DRAM), static random-access memory (SRAM), NAND flash memory, and Solid State Drives (SSDs). In addition,
the Division has been setting an aggressive pace for developing new memory devices and multichip packages, as well as
pioneering fusion memories and commercializing nanotechnology. The System LSI Division Designs and manufactures logic
and analog integrated circuit devices. It is comprised of 3 major areas of business concentration - mobile solutions, home &
media solutions, and ASIC& foundry services. The Division focuses its efforts on five strategic product areas - display driver
IC (DDI), CMOS image sensor (CIS), a mobile application processor (AP), smart card IC and media player SoC. systems hold
the number one market share in DDI, Navigational AP, and MP3 SoC. Samsung's LCD Division Produces panels for TVs,
digital information displays (DIDs), notebook PCs, and desktop monitors. It is the market leader in developing next-
generation, premium products such as ultra-slim, edge-lit LED-backlit LCD panels, and is at the forefront of creating new
markets with advancements in LED-backlit panel design and 240Hz LCD technology. The Division also is leading the LCD
industry in its transition to the 16:9 widescreen aspect ratio, as well as in the introduction of high-value-added products such as
20-inch and larger slim-panel monitors and super-bright DID panels. The Storage Systems Division Is a leading producer of
high-capacity, high-performance hard disk drives for notebook and desktop PCs, as well as digital camcorders, MP4 players,
and a wide range of other consumer electronics and mobile devices? It recently introduced a new line-up of ultra-compact,
high-capacity external hard drives. It has made significant advances in hard disk drive technologies leading to the lighter,
quieter, and more energy-efficient drive.
 Samsung’s Organizational Structure Type and Characteristics
Samsung has a product-type divisional organizational structure. This structure type uses product categorization as the basis for
determining which resources and business operations belong to certain divisions, such as the company’s Device Solutions
division. The entire corporate structure is unified via Samsung’s headquarters, which are located in Seoul. Strategic management
directions from the corporation’s headquarters are implemented through strategic objectives specific to the structural divisions’
contexts, such as the context of the U.S. market for consumer electronics. Samsung’s corporate structure has the following main
characteristics:
i. Product-type divisions
ii. Centralized corporate hierarchy
iii. Geographical groupings
• Product-Type Divisions: Samsung’s organizational structure’s main characteristic is its product-type divisions. Each
division is a group of resources and operations that represent a product category, such as resources and operations for the
production, distribution, and sale of consumer electronics. The corporate structure’s emphasis on technological innovation
and product development in these divisions helps in achieving Samsung’s corporate vision and mission statements. The
technology conglomerate may add, merge, or disband divisions, depending on current business needs and the development
of the organization, considering that further business diversification is possible. The following are the product-type divisions
in Samsung’s organizational structure:
a) Consumer Electronics
b) Device Solutions
c) IT & Mobile Communications
 Centralized Corporate Hierarchy
Samsung’s corporate structure involves a hierarchical model, despite its product-type divisions. The corporate headquarters
are the most notable manifestation of this hierarchy, which is part of an organizational design for ensuring that the
conglomerate’s operations are unified and effectively directed towards growth and operational effectiveness. This
characteristic of the organizational structure involves centralization of overall strategic planning, as well as vertical lines of
command and authority that relay strategic directions from the headquarters to the daily operations in the Consumer
Electronics, Device Solutions, and IT & Mobile Communications divisions.
 
 Geographical Groupings
Samsung uses geographical groupings or divisions as a minor character of its corporate structure. In the company’s
organizational chart, these geographical divisions are generally under the product-type divisions. For example, Samsung
Electronics North America is a geographical division within Samsung Electronics, which is a product-type division. Through
this characteristic of the organizational structure, the company implements region-specific strategies, such as strategies
intended for the North American market for Device Solutions.
 FINDINGS

 Samsung’s Corporate Structure’s Advantages & Disadvantages

Advantages: Samsung’s corporate structure has the advantage of extensive support for product development, especially in
terms of technology and innovation. This support comes through the structural framework of the conglomerate’s product-type
divisions. Another advantage of this organizational structure is the company’s ability to fine-tune its strategies and operations
based on market characteristics. This is possible through the geographical groupings or divisions within the product-type
divisions, such as IT & Mobile Communications. These structural advantages coupled with the strengths shown in the SWOT
analysis of Samsung buttress the business against fierce competition. In this way, the organizational structure supports the
company’s competitive advantage, especially against major competitors like Apple Inc.
 
Disadvantages: Samsung’s organizational structure has the disadvantage of limited autonomy of the product-based
divisions. For example, because of the centralized hierarchy, the product-based divisions need to follow strategic directives
from the company’s headquarters in Seoul. Nonetheless, this structural hierarchy is necessary to keep Samsung’s entire
organization unified toward its mission and vision involving superior technology and technological products. In relation, the
corporate structure presents challenges in expanding the business in regional markets, considering the low priority given to
the geographical groupings. Nonetheless, Samsung’s corporate culture helps in minimizing the negative effects of these
structural disadvantages. Also, its current global success means that the technology company effectively uses the advantages
of its corporate structure despite the disadvantages.
THANK YOU