FACULTY OF BUSINESS MANAGEMENT

UNIVERSITI TEKNOLOGI MARA

DIPLOMA OF BUSINESS STUDIES

“INDIVIDUAL ASSIGNMENT”

FUNDAMENTALS OF MANAGEMENT
(MGT162)

PREPARED BY
NURUL KHADIJAH BINTI HAMIDUN
(2021873948)
KBA 111 1E

PREPARED FOR
SIR MUHAMMAD HANIF BIN ABDUL GAFAR

1
 TABLE OF CONTENTS

PAGES
INTRODUCTION 3-5
i) PLANNING 6
ii) ORGANISING 7-9
iii) LEADING 10
iv) CONTROLLING 11-12
REFERENCES 13

2
 INTRODUCTION

Samsung is a South Korean global corporation that is one of the world's largest manufacturers of
electronic devices. Samsung is a leading consumer and industrial electronics manufacturer,
including appliances, digital media devices, semiconductors, memory chips, and integrated
systems. It has become one of the most well-known names in technology, with about one-fifth of
South Korea's total exports.
Lee Byung-Chull launched Samsung on March 1, 1938, as a grocery trade store.The name
Samsung is derived from the Korean word "three stars."Following the Korean War, Lee extended
his firm into textiles, establishing Korea's largest woollen plant.He placed a strong emphasis on
industry in order to assist his country in redeveloping after the war.In the late 1950s, the
corporation purchased three of Korea's leading commercial banks, as well as an insurance
company and cement and fertiliser manufacturing firms.

3
To compete in the textile market, the company developed its textile-manufacturing methods during
the 1970s to include the entire line of production—from raw materials to finished product.New
subsidiaries were formed, including Samsung Heavy Industries, Samsung Shipbuilding, and
Samsung Precision Company (Samsung Techwin). During the same time period, the firm began
to invest in the heavy, chemical, and petrochemical industries, paving the way for the company's
future expansion.

Samsung began the electronics sector with many electronics-focused subsidiaries in 1969. Black-
and-white televisions were their debut products. During the 1970s, the business began exporting
home electronics items to other countries. At the time, Samsung was already a prominent
manufacturer in Korea, with a 50% interest in Korea Semiconductor. Samsung's technological
companies expanded rapidly in the late 1970s and early 1980s.Separate semiconductor and
electronics divisions were developed, and an aircraft division was established in 1978. Samsung
Data Systems (now Samsung SDS) was founded in 1985 to meet the growing demand for system
development in businesses. This aided Samsung's rapid rise to the top of the information
technology services industry. Samsung also established two R&D institutions, which expanded the
company's technological line into electronics, semiconductors, high-polymer chemicals, genetic
engineering tools, telecommunications, aircraft, and nanotechnology. Lee Byung-Chull died in
1987, and his son Lee Kun-Hee replaced him.Samsung was divided into five firms; electronics
remained under Lee Kun-supervision, Hee's and the other four were handled by Lee Byung-other
Chull's sons and daughters.Lee Kun-Hee said that Samsung had become comfortable as a result of
its dominance in the South Korean economy and was unprepared for global competition.Samsung
insisted on subordinates reporting problems to their managers under what Lee referred to as a "new
management" paradigm.It also emphasised product quality over quantity, promoted women to high
leadership positions, and opposed bureaucratic processes.
In the 1990s, the company continued its expansion into worldwide electronics markets, fueled by
Lee Kun-cultural Hee's transformation. Despite its success, those years saw the business embroiled
in corporate scandals, including various patent-infringement actions and bribery cases. (In one
such case, Lee Kun-Hee was convicted of bribing former President Roh Tae-Woo in 1996.) He
was condemned to two years in prison, which the judge mitigated and which he was pardoned in
1997.) Nonetheless, the corporation continued to make technological and product-quality
advances, with a number of its technology products—ranging from semiconductors to computer
monitors and LCD screens—climbing into the top-five global market share positions.
In the twentieth and early twenty-first centuries, Samsung was one of the largest microprocessor
manufacturers. Since 2006, the firm has been the world's best-selling television manufacturer.
Samsung first released smartwatches in 2013, and the Galaxy Fold, a foldable smartphone, will be
available in 2019. Jay Y. Lee, co-founder of Samsung Electronics, was found guilty of tax evasion,
fined $80 million, and sentenced to three years in prison with a three-year suspension. Lee was
indicted in April 2008 on allegations of breach of trust and tax evasion as part of a plan.

4
Lee Kun-Hee was appointed CEO of Samsung Electronics, the conglomerate's largest division, by
Samsung Group leaders in March 2010. However, in 2014, he suffered a heart attack that rendered
him unable to function until his death in 2020. Despite the fact that Lee retained his positions, his
son, Lee Jae-Yong (Jay Y. Lee), became the de facto leader of the Samsung Group. Lee Jae-Yong
received a jail sentence in 2017 for bribing former President Park Geun-Hye. Lee was also charged
with financial offences related from the 2015 merger of two Samsung businesses in 2020.

5
 1) PLANNING

VISION
to inspire the world with innovative technologies, products, and designs that improve people's
lives and contribute to social prosperity by imagining a different future.

MISSION
to commit its skill and technology to develop great products and services that help to make the
world a better place. Samsung places a high priority on its people and technology in order to
achieve this.

TYPES OF PLANNING
Samsung used a profit-making strategy in order to establish a global competitive advantage.
Today, Samsung is struggling to gain a global competitive advantage, and they employ strategies
that learn from their competitors. This does not mean that Samsung ignores their customers, but
they are interested in what their competitors do and what people bring and produce to the market,
and they study and observe what appears to be attacking customers before developing their own
products and versions of that innovation.
Samsung employs two strategy theories: the classical method and the processual approach. In
comparison to other theories, the classical approach is the oldest and most influential, relying on
planned and rational approaches to planning and strategy. The classical approach focuses on
supreme business goals and the means for achieving these goals is rational planning such as
PESTLE analysis. Planning is an important part of Samsung's strategy, and one of their main
goals is to achieve a profit greater than Apple and LG combined. So, Samsung employs a
traditional approach to achieve these profits by employing a rational and planned strategy.
Samsung has relied on rational thinking for the manufacture of smart phones, where it has not
copied what Apple does for their iPhone, but they create a new version of their products with
new and free applications, as well as some features that Apple does not have, such as the quality
of the camera and the clarity of the screen. When the Samsung corporation wants to reach
superior goals in rational planning, they must control everything, including the external
environment, such as customer behaviors, attitudes, and what the customers truly require from
their smart phones.

6
 2) ORGANIZING

Apart from the three divisions depicted in the picture above, Samsung's organisational structure
additionally includes a corporate management office and the Samsung Advanced Institute of
Technology (SAIT). The corporate management office is in charge of the group's overall
management as well as administrative duties. SAIT is the R&D centre of the Samsung Group,
serving as an incubator for the creation of new goods and services.
In April 2017, senior management finished its study of the optimal organisational structure and
chose not to change to a holding company structure. [1] Following a series of recent scandals
involving Samsung management, which ended in Jay Y. Lee, the former de facto president of the
Samsung corporation, being sentenced to 5 years in prison [2,] it might be argued that the
organisational structure of Samsung will change in the near future. Specifically, the organisational
structure of Samsung may change in order to make governance and decision-making methods more
transparent in order to eliminate or at least reduce the likelihood of future controversies.

7
Samsung's organisational structure is based on product divisions. This organisational type uses
product categorization to determine which resources and business operations belong to certain
divisions, such as the Device Solutions division of the corporation. The entire business
organisation is coordinated through Samsung's headquarters in Seoul. Strategic management
directives issued by the corporation's headquarters are carried out through strategic objectives
tailored to the contexts of the structural divisions, such as the context of the consumer electronics
market in the United States. The following are the major aspects of Samsung's corporate structure:
1) Product-type divisions
2) Centralized corporate hierarchy
3) Geographical groupings

PRODUCT-TYPE DIVISIONS

The fundamental feature of Samsung's organisational structure is its product-type divisions. Each
division is a collection of resources and operations that represent a product category, such as
resources and operations for consumer electronics production, distribution, and sale. The
emphasis on technological innovation and product development in these divisions of the
corporate hierarchy aids in the achievement of Samsung's corporate vision and mission
statements. The technology conglomerate may add, merge, or disband divisions based on present
business demands and the organization's development, with the possibility of further commercial
diversification. The product-type divisions in Samsung's organisational structure are as follows:
1) Consumer Electronics
2) Device Solutions
3) IT & Mobile Communications

CENTRALIZED CORPORATE HIERARCHY

Despite its product-type divisions, Samsung's corporate structure is hierarchical. The corporate
headquarters are the most visible embodiment of this hierarchy, which is part of an organisational
architecture intended to ensure that the conglomerate's operations are coordinated and effectively
directed toward growth and operational effectiveness. This organisational structure feature entails
the centralization of overall strategic planning, as well as vertical lines of command and authority
that relay strategic directions from the headquarters to the day-to-day operations in the Consumer
Electronics, Device Solutions, and IT & Mobile Communications divisions.

8
GEOGRAPHICAL GROUPINGS

As a minor feature of its organisational structure, Samsung employs regional groups or divisions.
These geographical divisions are often located under the product-type divisions in the company's
organisational hierarchy. Samsung Electronics North America, for example, is a geographical
division of Samsung Electronics, which is a product-type division. Through this organisational
structure feature, the corporation executes region-specific strategies, such as Device Solutions
strategies for the North American market.

9
 3) LEADING

Every organisation need a leader who can guide the group. A clear plan and strategy must be in
place to carry out the vision. For the benefit of the working environment, an organization's leader
has used a specific leadership style. As a result, the Samsung recommends Transformational
Leadership, Transactional Leadership, and Team Leadership as leadership styles.

TRANSFORMATIONAL LEADERSHIP

One of the best leadership styles is transformational leadership. This standards are based
motivating employees as well as transforming people with your personality and charisma.This
leadership style is recommended for Samsung because the company's manager and authority can
motivate and influence its employees.

TRANSACTIONAL LEADERSHIP

Transactional leadership is the type of leadership that primarily focuses on employee supervision.
The main goal of this leadership is to get the most out of the employees. This employee is also
responsible for short-term planning. Employees will be more focused on their work because they
are afraid of the consequences of this leadership. It also encourages employees to work hard and
to conduct research and innovation. As a result, employees are motivated to actively pursue and
focus on their objectives.

TEAM LEADERSHIP

When there is a common goal, teamwork becomes more effective. Samsung should adopt this
leadership style because teamwork is relevant to the company. Furthermore, coordinating work
to a group is more valuable than delegating to an individual. In the presence of a leader, team
leadership is more effective. It is extremely useful to the company in terms of sales proposals.

10
 4) CONTROLLING

Samsung, as a giant global corporation with several subsidiaries and a net profit of $6.9 billion in
2013, may already have thousands of talented personnel, the most modern machinery, massive
factories and buildings, and a slew of other advantages that no other firm can match. However,
the firm would not have survived if they didn't have a strong controlling management throughout
their commercial activities, given the large amount of technological equipment and the severe
rivalry between Samsung and other big corporations such as Apple Inc. According to Fayol, the
purpose of controlling is to ensure that everything is done according to plan. Samsung's main
purpose of controlling is to ensure that every product the company creates has excellent unfailing
quality and, most importantly, to guarantee customers' satisfaction with the product, which is
accomplished by monitoring critical parameters, evaluating the measurement system, and many
other methods.

Samsung Electronics manufactures a variety of electrical items, all of which must be managed
during the manufacturing process. The interlock system is one of the technologies used in real-
time monitoring. During the production process, the automated interlock system monitors and
regulates the goods and operations. This method is divided into three phases. The Process Recipe
Interlock' is the first. It is here that the entering materials are controlled and the formula is
checked. The Equipment Parameter Interlock comes next, followed by the Process Output
Interlock, which prevents wrong procedure or potential harm to the process or equipment.

Statistical Process Control (SPC) and Advanced Process Control (APC) are two more methods.
SPC systems are best for semiconductor production processes, whereas APC systems are utilised
to regulate deterministic process behaviour in real time.

The Samsung SDI is another Samsung subsidiary, with S denoting Samsung, D denoting Digital
and Display, and I denoting Interface and Internet Component. Samsung SDI began with image
cathode ray tubes and has since grown to become a top manufacturer of LCD (Liquid Crystal
Display), PDP (Plasma Display Panel), and AMOLED televisions. Since the year 2000, Samsung
SDI has been working on lithium ion battery (LIB) technology.

The corporation will need to have a robust internal control system in order to manufacture high-
quality items. The internal control system is in place to improve the accuracy of information
pertaining to the company's operations. The Internal Accounting Management Scheme is part of
the system, and its goal is to increase the trustworthiness of financial data and the company's
other assets. The organisation will be able to ensure that all operations related to the
manufacturing process are carried out in accordance with legally, policies, and procedures by
using this system. Throughout the process, the control system will assist in preventing potential
dangers and limiting damage.

11
Samsung has a reputation for being one of the best at dealing with difficult situations. By
assessing events correctly and taking the appropriate measures to resolve them, Samsung's
management team was able to navigate through financial difficulties. Samsung's management
team reportedly took the drastic step of laying off many of its employees in order to save money
and pay off their debts. In order to get rid of the surplus inventory that wasn't being sold, the
management decided to shut down multiple factories for a period of time. They also had to sell
companies such as pagers and electric coffeemakers, which had a good influence on the
company's future since it allowed them to start inventing their own products rather than
duplicating others'.Samsung has also taken steps to hire new managers and engineers to assist
their teams in innovating and developing new products.

12
 REFERENCES

1) https://www.samsung.com/us/about-us/leadership-and-mission/
2) https://www.britannica.com/topic/Samsung-Electronics
3) https://mission-statement.com/samsung/
4) https://www.ipl.org/essay/What-Is-Samsungs-Strategic-Planning-Strategy-
PJTJ5RZC3XU
5) https://research-methodology.net/samsung-organizational-structure-divisional-according-
product-types/
6) http://panmore.com/samsung-corporate-organizational-structure-characteristics-analysis
7) https://samplius.com/free-essay-examples/leadership-management-in-samsung-
electronics/
8) https://mysamsungmylife.wordpress.com/controlling/

13