CHANGE

MANAGEMENT AT
SAMSUNG
N AV I G AT I O N TRANS ORMATI ON
US I NG ADKAR MODEL

Edgar Ruiz 3484

Chaymae Touzani 3591
Dushmimana Theoneste 3509
O V E RV I E W
• INTRODUCTION TO SAMSUNG

• HISOTRY OVERVIEW

• MISSION AND VISION

• SAMSUNG OBJECTIVES

• SAMSUNG APPROACH TO CHANGE MANAGEMENT

• ADKAR MODEL Overview

• KEY SUCCES FACTOR

• CONCLUSION
INTRODUCTION
• Samsung, a multinational
conglomerate headquartered
in South Korea, has its roots
in the 1930s and has since
grown into one of the
world's leading electronics
and technology companies
 H I S T O RY O V E RV I E W
• Founded in 1938 by Lee Byung-chul in Daegu, South Korea

• Originally a small trading company exporting groceries

• Name "Samsung" means "three stars" in Korean, symbolizing prosperity

Post-War Expansion
• After the Korean War, Samsung diversified into construction, textiles, food processing, and insurance

• 1960s: Expanded into shipbuilding, construction, and petrochemicals

• 1969: Established Samsung Electronics, initially producing electronic appliances

Global Growth and Electronics Focus

• 1970s: Samsung entered the electronics industry with a focus on memory chips

• 1980s: Became the world's largest producer of memory chips

• Expanded into consumer electronics with the production of TVs, calculators, and later, VCRs
 MISSION AND VISION
• Mission: Samsung's mission is to
inspire the world
and create the future with innovative
technologies
and products that enrich people's lives.

• Vision: Samsung's vision is to become

a leader
in technology, achieving sustainable g
rowth and contributing to
the enrichment of the
global community.
C H A L L E N G E S A N D T R A N S F O R M AT I O N

• The 1990s were a challenging period for Samsung, marked by the 1997 Asian financial crisis.
The company faced significant financial difficulties and had to restructure.
• Chairman Lee Kun-hee, who took over in 1987 after his father's death, initiated a significant
transformation, focusing on quality and innovation. This period is often referred to as "New
Management."
• Samsung began to emphasize design and innovation, leading to the development of products that
were both aesthetically pleasing and technologically advanced.
SAMSUNG APPROACH TO CHANGE
MANAGEMENT • Change management at Samsung
has been a critical aspect of the
company's ability to adapt,
innovate, and grow over the years.
Samsung's approach to change
management has been influenced
by its corporate culture, leadership,
and the dynamic nature of the
industries it operates in,
particularly electronics and
technology
A D K A R M O D E L O V E RV I E W

Understanding the
need of change Knowledge of Reiforcement to s
how to change ustain the change

Desire to Ability to
participate and implement desired
support the skills and behaviors
change
A P P LY I N G T H E A D K A R M O D E L
TO SAMSUNG'S TRANSITION TO A DIGITAL
LEADER

Awarness: Samsung likely started by creating awareness of the need for change among its employees and stakeholders. This would
involve highlighting the decline of physical media, the rise of digital media, and the changing preferences of consumers. Samsung could have
conducted market research and presented data on the growth of digital media consumption to underscore the urgency of the transition.

Desire: To foster a desire for change, Samsung would need to communicate the benefits of moving to digital media. This could include
the potential for increased market share, the ability to innovate more rapidly, and the opportunity to create new revenue streams. Samsung
might have shared success stories of other companies that successfully made similar transitions to inspire its workforce.

Knewledge : Equipping employees with the knowledge necessary to make the transition is crucial. Samsung could have provided
training programs on digital media technologies, digital rights management, and new production processes. Workshops and seminars on
digital marketing and distribution channels might also have been organized to ensure that employees understood the new landscape.
• Ability : Samsung would need to ensure that its employees have the ability to implement the change. This could involve hiring new
talent with expertise in digital media, investing in new technologies and infrastructure, and providing ongoing support and resources to
facilitate the transition. Cross-functional teams might have been established to bring together different areas of the company and ensure a
coordinated effort.

• Reinforcement : To reinforce the change, Samsung would need to recognize and reward employees and teams that successfully
adopt the new digital media practices. Regular check-ins and performance reviews against digital media goals would help to ensure that
the change is sustained. Additionally, Samsung could have continued to communicate the progress and successes of the transition to
maintain momentum and keep the change at the forefront of the company's culture.
HOW TO GAUGE THE SUCCES OF
ADKAR MODEL IN SAMSUNG
1. Visionary Leadership: Samsung's leadership has played a crucial role in driving change. Former Chairman Lee Kun-hee's philosophy
of "Change Everything Except Your Wife and Kids" during the "New Management" initiative in the 1990s is a prime example. This
approach emphasized the need for radical change to improve quality, efficiency, and innovation.

2. Strategic Restructuring: Samsung has not shied away from restructuring its business to adapt to market changes. This includes
divesting from certain industries and doubling down on others. For example, Samsung has focused on its core competencies in
electronics and has become a leader in semiconductors and smartphones.

3. Innovation and R&D Investment: Samsung invests heavily in research and development to stay ahead of technological trends. This
investment in innovation is a proactive approach to change management, allowing Samsung to lead with new products and technologies
rather than react to them.

4. Corporate Culture: Samsung has cultivated a corporate culture that embraces change and continuous improvement. This culture
encourages employees to be adaptable and open to new ideas, which is essential for implementing change successfully.

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5. Global Expansion: Samsung's global expansion strategy has required significant change management to adapt to different markets and
cultures. This includes localization efforts, such as tailoring products and marketing strategies to specific regions, while maintaining a unified
global brand identity.

6. Digital Transformation: Like many companies, Samsung is undergoing a digital transformation to leverage digital technologies and data
analytics. This transformation affects various aspects of the business, from product development to supply chain management and customer
engagement.

7. Succession Planning: Samsung's approach to leadership succession is another form of change management. The transition from Lee
Kun-hee to his son, Lee Jae-yong, and the next generation of leaders, involves managing change at the top while maintaining stability and
continuity in the company's direction.

8. Employee Engagement and Training: To facilitate change, Samsung invests in employee training and development to ensure that its
workforce has the skills and mindset needed to adapt to new strategies and technologies.

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 Change management at Samsung is an ongoing process that
requires careful planning, execution, and communication. The
company's ability to navigate and lead through change has been
a key factor in its success and will continue to be important as it
faces future challenges and opportunities.

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