Samsung Key Drivers For Future Growth Management Essay

Samsung Key Drivers For proximo increase vigilance EssayThe involvement of Samsung in electronic and contriveetary market necessitate them to sustain within the industries for the next 20 years. In the some other it means that Samsung hand over to lay out their get wind producers that net re foretoken them archive as comfortably as a benchmark for the approaching growth. This key driver alike is based on Samsung achievements and capabilities that they dumbfound instanter and then to continue with adding some to a greater extent unexampled keys to guide them to run into their vision and mission. The keys driver for Samsung time to come growth is also known as their sustainability in present towards the future. Focusing on Samsung Electronics, Samsung sustainability entered that their executing in surviving the industries and sess be also as a benchmark to survive in the future. According to Nidomulu and Prahalad (2009) company that make sustainability a goal volition achieve competitive advantage in the future , that mean rethinking vocation models as well as technologies, products and movees. In 2010, Samsung sustainability performance and pattern focal point on talent attention, truth counsel, green anxiety, social contribution, accomplices collaboration and products/services. For 2011 they aline 9 material issues as a guidance to sustainability in future growth (1) original organisational Culture (2) Employee wellness and Safety (3) lawfulness oversight (4) Increasing genial Contribution (5) Patent (6) Climate form and Energy (7) Water Management (8) Mutual Growth (9) Supplier CSR(Corporate affable Responsibilities) based on Samsung Electronics Sustainability calculate 2012.4.1 Samsung Electronic 2011 Sustainability PlanFor Talent Management plan in 2011, Samsung plan to, introduce telecommuting/ written report at home scheme for married employees, increase percentage of female executive, set up idea proposal s ystem at oversea seek internalitys and hire advanced recruits with disabilities. Samsung plan on Integrity Management was to break compliance design also cerebrate activities, declare compliance management and signing of the compliance agreement by employees. Instead of talent and lawfulness management Samsung also revolve around on Green Management plan which the plan to set 96% ratio of Eco-product girdment, set long/mid-term targets for pissing system management, build a spherical environmental management system and hold back for outdoor(a) country partners environment management system. In developing fond Contribution Samsung plan to introduce impertinent regional social contribution based on global guidelines (Samsung confide for Children) and to create tools in assessing reach of social contribution programs. Samsung needs a concomitantive partner in order to help them achieving their vision and sustain. Partner Collaboration plan for 2011 is to sign agreeme nt for mutual growth as well as conducting varan on progress in mutual growth and assess partner companies CSR (Corporate kindly Responsibilities). The last plan for products and services are to expand outside country service centers and have to a greater extent subsidiaries company and receive Korea as well as international awards for their products and services. The plan of sustainability was create in 2010 and pass on be apply in 2011. Samsung key drivers are based on their stakeholder, environment and their threat. It now translate to 9 material issue to be more focusing on that particular factor that can drive them to sustainability in future growth.4.2 Samsung Electronics Sustainability Reports 2012Samsung Electronics Sustainability Reports 2012 is based on performance in 2011 and the plan that to be apply in 2012. Samsung rank in 73rd in the nigh sustainable corporation in the world. Samsung Electronics core dividing line including of the execute and sales of digital m edia winds ( brisk phone, digital TVs, refrigerators, air conditioners, monitors, printers and communication systems) and components (memory chips). Instead of Samsung headquarters in Korea they now have nine subsidiaries in certain region in the world which responsible for(p) in managing takings and sales. Beside their successful in hardware manufacturing, Samsung is go out bring about the new leader of the IT labor when they started settleing theirs diff design power capacity. As their vision to hold which includes achieving targeted sales of USD 400 billion, beseeming one of the 10 most admired companies and one of the top 5 global brands and in the world. Samsung Electronics manages theirs business concern concernes base to Samsung divergent types in technology, consumers and market in Device Solutions (DS) or digital Media and Communications (DMC) variant, consolidating their independent in exercise(p) building. Digital Media Communications is gathered into C onsumer Electronics (CE) and IT and Mobile Communications (IM) divisions. The Consumer Electronics division is in the boot of home appliances department and visual display business department. The IT and Mobile division is took charge of managing IT Solutions, wireless businesses, Net take a shit business, the Media Solution plaza and digital vision displays . This outline hits changes which were made to the employment in hiring of soft power experts that plough more value than before in the overbold era. They had denote their pattern to do a technical shift by turn to a soft driven company and made a package center to increase their software capacity until its on a right embrace with their world most wanted manufacturing. Shifts in the Device Solutions (DS) division can also bringing extension of the organizations in charge of controller, software and stem development to make sure different teams. The extension of the software committed organizations was made to reali ze Samsung Electronics vision of creating experience and new value by merging Samsungs strength in hardware excogitation together with an emotionally attracting drug use upr interface and optimized software. Samsung Electronics also enhanced the organization took charge of checkup and bio device business then they expanded the Bio Lab at Samsung employ science Research Center into the Bio Research Center. They also appointed bio material experts to merge their research in the area and upgraded support for bio medical and bio similar research.Samsung Electronics segmentation Market Share (%) source Samsung Electronics Sustainability Report 2012They plan to become IT industry restructuring due to the appearance of cross-sector industries and resumed global economic decline. Samsung Electronics plans to make the greatst investment always to tighten the engagement advantages of present businesses and set up the foundation of new businesses potential to drive Samsung e excessly in Electronics Industries growth in the future. In 2011, they invested KRW (Korean Won) 13 cardinal in facility expansion for semiconductors manufacturer and KRW (Korean Won) 6.4 trillion in display panel manufacture (10% greater investment than in the beginning planned). They also building R5 (new research center) which is now under construction in the Samsung Digital City (estimate completion 2013) the landmark of IT and RD will estimate have more than 23 gramme researchers. They also plan to combine more than 15 core component research centers including their memory, semiconductor and LSI research centers. The new center will give the foundation for their research and development in existing product and for the next-generation display technologies and the new non-memory semiconductors.For the future Samsung Electronics is on establishing a bio-business and medical. For medical industry they invest KRW (Korean Won) 1.2 trillion in expecting sales of KRW (Korean Won) 10 trillio n by 2020.. They were also nurturing a bio-similar (bio medicine) and already genuine a digital x-ray that using visual information processing and digital technologies in photo-taking. Quintiles (Samsung Electronic Subsidiaries) had established Samsung Bioepis in 2012 and Samsung Biologics in April 2011. In 2016, Samsung Bioepis will start global sales of Bio-similar products and manage international clinical testing. The bio-similar business capacity will lie downing of product licensing, manufacture development, clinical testing, and sales capacity. For software development strategy they increase the number of software head in order to meet their software development capacity. In order to realize their vision and future growth Samsung has (1) started the software development to produce more appropriated and newer software for Samsung gadgets and devices. (2) Initiated the Media Solution Center in the Silicon Valley, America that specializes in software to build service develop ment and capacity on content. (3) in operation(p) training programs and recruiting talented software engineers to maximize their capacity.(4) created a new employed employees group S to conduct core software experts in direct systems, smart TV software and mobile apps ( August 2011). (5) Created a special talent-based employing process for software (S workforce group) alternative of a more standardized process that exactly like to RD staff employing. Samsung created a new Software Academy (for short-term training) that has the ability to train for more than five thousand employees in order to achieve 50% of software training needs.4.3 The blistering Smart Product and Samsung StakeholdersPeople nowadays tend to the term Smart Work, new office working style using the mobile device and Internet. It is assist batch to enlarge the scope of collaboration also to improve work productivity. They produce notebook of 50% thinner with transition amidst application and faster start-up ( application of file storage mingled with smart devices and PC). Eco-driver newswriter function which go alongs toner usage with the comparable quality. The function of Eco-simulator can also preserve electricity and paper. The smart printing application is enables direct printing from mobile devices (smartphones and tablet PCs).In Smart Life even you are not at home Samsung give your chance to control your air conditioner, washing your stuff and even clean your house . All of Samsung appliance can save electricity and assist your in house job. Samsung Smart Robot scrubbed (based on vacuum technology) has cleaning efficiency of 93% with extended barrage fire life by 30% it is equipped with on-board camera (for smart understand function) also with the function of video conference. Samsung Smart Refrigerator assist people to manage food using the touch screen interface that touch on to online store (Food Manager Application)Samsung Electronic Domestic and Overseas Workforce 2 009-2011 (Source Samsung Sustainability Report 2012)Samsung actively reported their quarterly business results, Corporate genial Responsibilities CSR policies and achievements with their shareholders and investors. The affectionate Responsible Investment (SRI) companies always make a visit the Samsung Electronics Headquarter in Seoul Korea to discuss CSR issues that equivalent to the electronics industry. They discuss about environmental management targets, waste management and occupational safety issues. In 2011 customers inquiries increase dramatically on Samsung Electronics CSR.Samsung created online open communication plan (LiVE) for employees of all ranks. The LiVE platform allow all employees to post memos, give opinion and communicate among themselves in real time for fast responses/ NGO (Non-Government Organizational) always collecting information, conducting interviews with executive and make site visits to Samsung Electronics. Samsung Electronics has been actively respo nses to past divers(a) issues raised by NGO and always remain communicate with them. Sharing growth among large companies and SMEs (Small Medium Enterprise) was the Government South Korean policy focus in 2011. Samsung Electronics joined in a public-private dialogue by the Shared Growth Committee, be a member of Korea Business Council for Sustainable Development, and actively communicated their opinions on thrust-related and temper policies. Samsung Electronics has made variety communication channels to collect opinions from their providers. Their provider grievance and complaint handling system allow them to state their hassles and denudation solutions. They were also responding provider opinions and collected through and through seminar and training sessions.4.4 Samsung 9 square Issues as Key Driver for Future GrowthThe previous common chord years, Samsung focus their sustainability six key performance area including talent management, integrity management, green management , social contribution, partners collaboration and products/services s. However, they have decided to lie global issues that have the potential to affect their business activities as well as its overall competitiveness in order to gain kinship with their stakeholders. Nine key issues have been selected through the process Creative Organizational Culture Employee Health and Safety Integrity Management Increasing Social Contribution Patent Climate Change and Energy Water Management Mutual Growth Supplier CSR4.4.1 Creative Organizational StructureThe counterbalance key driver for future growth is the creative organizational structure it include the work life balance through work smart establishing a work culture that encourages learning and development talent-based recruiting of software and design experts and diversity management (female employee disable employee, global diversity) in establishing a work culture that encourages learning and development Samsung electronics improvin g productivity by applying a flexible work schedule, effective time management as employee can arrive at work surrounded by 6.00 am and 1.00 pm.Through Creative Development Research Institute scheme, Samsung provide their employees with opportunities to attain creative new ideas which take professional incenses and all advantage of their talents towards that encourages taking risks. This system encourages Samsung employees to develop creative idea. During the system they are free from their core job and no penalty occurs if the employee not achieves the goals. The first product came from the institute is the eyecan for disable user substitute for pc mouse. Samsung aggressively hiring most talented software engineer in order to archive their goal and vision. In diversity management Samsung hiring more female doer due to flexible working for those whose have small child to take care. The flexible work allowed them to work at home. Beside that Samsung also establish in house child c are facilities for their workers. Samsung show their concern on hiring the disable employee and for now they have 1,100 disable worker in the other hand Samsung help them to develop their carrier and give them opportunity to live in better business world and participationSource Samsung sustainability report 20124.4.2 Employee Health and SafetyTo help employees monitor their health, Samsung Electronics provides one-year health checks. Their employees have opportunities to get advice with health experts like doctors and nurses. The leading problem for employee is work stress that risk to personal health also business management. Samsung operating consultation centers, conducting meditation programs and yoga lessons, and volunteer activities to help their workers remain successful in a supportive working environment. Their effort is also in establishing Musculoskeletal Disorder Prevention Center, hiring full-time sports science experts teams, publishing a safety guide on non-work re lated activities and establishing Employee Health Research Center. The Employee Health Research Center is focusing on 4 areas of research including, abbreviation of new production processes as well as materials and epidemiology, toxicology of hazardous materials, the work environment ,with a vision of becoming an industry leading occupational health and environment research center.The role of Health Research middle (Source Samsung Sustainability 2012)4.4.3 Integrity ManagementSamsung Electronic integrity management focus on established compliance team towards for realizing their vision in expansion global market. In 2011, they have expanded their Global Legal Affairs configuration Team from two hundred to two hundred seventy employee for more effective operation.The compliance program divides to 3 compliance awareness that is prevention, supervise and follow-up. In prevention awareness it is include of employee education, compliance manual, compliance self-test system, operatio n of a help desk, sensing on laws and regulation and report. The monitoring process focusing on regular and non-regular monitoring by members of compliance organization units. The last component is the post management/ follow up that consist analysis of case of incompliance to identify improvement measures and employee training for prevention of recurrence. In order to establish on internal awareness compliance Samsung has to strengthen and developed the training program for existing and new employee.4.4.4 Increasing Social ContributionThe economic crisis nowadays result to the bigger gap between rich and poor, as well as the increasing unemployment rate, bringing last demand for more responsible capitalism. In the other point of view, the order of magnitude is demanding the business sector to take action and responsibility for problems occur kind of of depending on the government. Rely on that, Samsung Electronics believes that they must take responsible in remaining and improvi ng the sustainability of local anesthetic communities in within their area. Samsung Electronics has their own fit to increasing their fundamental contribution programs in volunteer activities and donations. One of their programs is Samsung Hope For Children that has been conducted in 30 countries with different 9 regions. The program focused on supporting education and good health of offspring and children. As same also on Samsung subsidiaries in different countries managed various support programs including low-income youth health benefits, youth education support and job trainings, knowing for needs of the children and youth of local communities.The other social contribution that has been conducted by Samsung Electronics in South Africa are employees volunteer program (employee sent to Sudan, Zambia), engineering academy, solar skill lantern and solar internet school.4.4.5 PatentThe sheering issues on technology now is major problem from preventing imitate of Samsung Electron ics product. They have failed in defending their designed against Apple and have been sued in total USD 1 billion. In addition, as the competition in IT technology is ever emphasizing, while the intention of various IT technologies is in trend, the patent resists are bound to become aggressive. Besides that, the fast technology innovation cycles that has increased patent competition. Samsung Electronics increased the strength of their workforce importantly and reorganized the patent related organization for purpose to nurture their know-how in technology .To sustain in technology competition in 2010 the rapid decision making resulting in establishes the Intellectual Property Center (IP Center), that affiliated with the Samsung Advanced Institute of Technology ( including hiring outside expertSamsung strategy on securing pattern issues is by partnerships. Samsung Electronics proved the huge strength of their patent protection portfolio by signing cross patent contracts which allow a broader cross use of patents with other global IT companies. They collaborate with Qualcomm (mobile phones), Rambus (entire semiconductor products), conniving (LCD panel module) and in Kodak (camera technology), and in 2010, also followed by deals with Microsoft (MS) and IBM for the cross liberty of technologies of the mobile phone operation system. The same strategy also applied by Samsung in using pattern license of Google Android operating systems. From the partnership they also gain new innovative in production future technology.4.4.6 Climate Change and EnergyConcerning of Climate change has become one of the most important global issues. Climate change is already causing many people in daily lives with unexpected persist conditions, flooding and draughts, the function of greenhouse assail (GHG) management has become a key challenge for the global community due to reduce the bushel on climate change. Samsung Electronic has establishing Climate Change Mitigation System EM 201 in 2009 They also established a greenhouse gas emission management system that can monitors direct and indirect emissions connected with all business activities including global partners, logistics, manufacturing, product use and workers work related travels. Samsung are carefully monitoring each source of Greenhouse bollocks emissions and getting declines to fulfill their incarnate responsibility (CSR) in reducing climate change.Product energy efficiency improvement makes reduction average energy consumption of products by 40% and achieving 0.5 W of standby power by 2013. Supplier support is for the establishment of global suppliers GHG inventory system by offering training and expertise sharing to global suppliers. Implementation if energy management system and establishment of internal energy efficiency security system subjected to all business sites in Korea. Incorporation of GHG reduction facilities is the reduction F-gas emission from the semiconductor and LCD manufa cturing. Samsung Electronics low carbon product certification winner is on LED TV, Note PC and semiconductor disordered Carbon Product Certification Winners (Source Samsung Electronics Sustainability Report 2102)4.4.7 Water ManagementThe other major factor and issue in this key driver in future growth is how Samsung can manage the pissing sources (Water Management). Samsung semiconductor manufacture is responsible on daily consumption 0f 7500- 15000 tons of pure weewee. As a leading semiconductor manufacturer, Samsung is now on high responsible in water management in order to maintain water resources.Samsung Electronics Water Management Resource policy recognizes the wideness of water resources in the sustainability of business and society management, and provides to its protection as a responsible corporate citizen of worldwide community. According to Samsung Electronic Sustainability Report 2012, there are some(prenominal) of canon conducts (1) Strive to minimize water risk impact by our business activities. Analyze the impacts of our products, production activities and services make on water resources and minimize risks by identifying and implementing new technologies (2) instill an awareness of the importance of water resources as a part of our corporate culture. Integrate the importance of water resource protection and sustainability management into the corporate culture and ensure responsible water resource management by employees with the highest consideration for the impact on local communities and the environment. (3) Proactively cooperate with public water policies. Proactively contribute to the establishment and writ of execution of water resource management policies by international institutes the government and local authorities in line with relevant guidelines (4) disclose our policies and activities on water resource management. Disclose company policies and activities related to water resource use to stakeholders including local communit ies in a transparent manner.4.4.8 Mutual GrowthSamsung Electronics expanding their support programs for outstanding maiden tier suppliers to become worldwide companies, and we start providing different support policies for second and 3rd -tier companies to achieve shared growth. They developed key programs to support supplier shared growth including technological supports, training, also provision of support funds. They then strengthened communication and more carefully listened to their suppliers through an effort including a visit by top management to their suppliers. Samsung announced shared growth implementation policies fiscal support programs for 1st and 2nd tier suppliers, support for 2nd tier supplier competitiveness building, increased trade opportunities, technology innovation contest, cultivation of global SMEs (Small Medium Enterprise) and incentives for 1st tier suppliers with good shared growth practice. According to Samsung Sustainability Report 2012 they also plan take different kind of shared growth publicity measures including co-development of core parts for boosting the competitiveness of suppliers, inclusion of shared growth performance indicators in performance assessments of our employees responsible for supplier collaboration and responsive try-on of raw material price changes in supply contracts, free use of patented technologies, support for patent registration of new technology developed by suppliers.Shared growth management implementation plan focus on establish a supplier support fund rarefied qualified 2nd and 3rd tier suppliers into 1st tier supplier cultivate global SMEs implement fast-track Temporary Supplier Registration insurance for SMEs with Innovative ideas or new technology. As for the share growth on expected benefits to suppliers is focusing on support for investment in facilities and R&D access to greater supplier benefits, improved credibility in market strengthened reputation as official partners of Samsung electronics increased business opportunities for companies without prior business relationship increased sales of supplier products with funding and technical support more transparent and responsive communication between suppliers and Samsung4.4.9 Supplier CSR (Corporate Social Responsibilities)Samsung Electronics is enduring by the EICC (Electronic Industry Citizenship Coalitions) basic code of conduct as a guideline for fulfilling their CSR (corporate social responsibility). They have provided the development of a CSR management structure by supplier companies and incorporated CSR activities as a part of their supplier evaluation criteria to further incentivize their participation in CSR activities. Samsung also applied a 3rd party validation program of supplier CSR activities. Developing Corporate Social Responsibilities activities is a part of supplier evaluation of Samsung Electronics. They have been managing annual supplier evaluations using criteria consisting technological competitiveness and other internal criteria to identify leading suppliers. In additional, the company has provided financial support and collaborative technology development opportunities. In 2011, Corporate Social Responsibilities achievements and activities have been a part of the evaluation criteria previously they increased their importance in the overall evaluation. The CSR activity evaluation criteria including 20 different areas diligence the EICC (Electronic Industry Citizenship Coalitions) basic code of conduct, consisting a ban on environmental management , child labor and occupational health and safety.