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Activity 1 Strat

The document discusses Samsung's strategic change triggered by Chairman Lee Kun-hee's realization of the company's low-quality perception in the global market, leading to significant investments in quality improvement and innovation. It highlights the characteristics of strategic decisions made by Samsung, including long-term orientation, organization-wide impact, and high resource commitment driven by top management. To maintain its market position, Samsung can utilize a rational decision-making mode, focusing on data analysis and R&D investments to stay competitive in the premium electronics sector.

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9 views1 page

Activity 1 Strat

The document discusses Samsung's strategic change triggered by Chairman Lee Kun-hee's realization of the company's low-quality perception in the global market, leading to significant investments in quality improvement and innovation. It highlights the characteristics of strategic decisions made by Samsung, including long-term orientation, organization-wide impact, and high resource commitment driven by top management. To maintain its market position, Samsung can utilize a rational decision-making mode, focusing on data analysis and R&D investments to stay competitive in the premium electronics sector.

Uploaded by

fujodanshi111
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Julius Oniel S.

Dongon
BSCM 322

Activity 1

1. What is/are the triggering event/s that act/s as stimulus/stimuli for strategic change in the
given case?

The main triggering event for Samsung’s strategic change was Chairman Lee Kun-hee’s
realization during his 1993 trip to the United States and Europe that Samsung’s electronics
were perceived as low-quality and inferior compared to global competitors like Sony and
Motorola. This external market feedback exposed Samsung’s weak global brand image and
lack of competitiveness in high-end technology markets. Another strong symbolic trigger
was Lee Kun-hee’s decision to destroy 150,000 brand-new Samsung cell phones in front of
2,000 employees at the Gami factory. This dramatic action emphasized the urgency of
improving quality and served as a powerful internal signal that the company must shift its
strategic focus. These events pushed Samsung to increase investments in research and
development, marketing, and product design, and to transform its organizational culture
toward performance, innovation, and global competitiveness.

2. Which characteristic/s of strategic decisions is/are described in the case study?

The case demonstrates several key characteristics of strategic decisions. First, the decisions
were long-term and future-oriented, as Samsung shifted from competing in low-cost
markets to positioning itself as a premium global brand in consumer electronics and
mobile devices. Second, the decisions were organization-wide and complex, involving
major changes such as restructuring the conglomerate, introducing merit-based pay and
promotion, hiring foreign experts, and sending employees abroad for training. Third, the
decisions involved significant resource commitment and high risk, as Samsung increased
spending on R&D, design, and marketing while moving into the high-end market segment.
Lastly, the decisions were driven by top management, particularly Lee Kun-hee’s leadership
and vision to transform Samsung into a world leader in high-tech industries.

3. How will Samsung maintain its successful market position by using one of the modes in
strategic decision-making?

Samsung can maintain its successful market position by using the rational (analytical)
mode of strategic decision-making. In this mode, the company continuously gathers
market data, analyzes customer preferences, monitors competitors, and uses research-
based insights to guide strategic choices. For example, Samsung can sustain heavy
investment in R&D to develop advanced technologies such as AI-enabled devices,
semiconductors, and next-generation smartphones. It can also use data-driven analysis to
improve product design, pricing, and global marketing strategies. By making systematic and
evidence-based decisions, Samsung can anticipate industry trends, respond quickly to
technological changes, and maintain its competitive advantage in the premium global
electronics market.

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