Samsung Market

Introduction

By definition, quality management policy refers to a document that quality experts as well as management jointly have so as to chip in the ideas and effective objectives they have for the organization, so as to ensure everything runs smoothly. Due to the current level of stiff competition, companies must incorporate Quality management policy in their corporate strategy to survive under such conditions. TQM is applicable to all level of business due to its importance. Every company is subjected to the production of products and overseeing that such products are supplied in the market which is an interactive process which needs to be overseen so as to ensure that all the processes runs effectively and efficiently  (Palmer, 2013). TQM involves creating and implementing quality planning and assurance. It can therefore be put in simple terms and referred to as a management system geared towards serving the customer in the most appropriate manner that guarantees their total satisfaction. What is mainly involved in TQM is satisfactory communication, data and approach so as to enrich the culture of the company. This paper will therefore look into the way in which TQM is applied in a highly renowned company such as Samsung Company in realization of its vision 2020 of being one of the top five in the digital companies’ market. The report will give an in-depth understanding of Samsung Company so as to understand the concept of TQM.

Background

The Samsung Company is a very renowned and established multinational company with its headquarters at Seoul. Its founder was a man called Lee Byung-Chull in the year 1938. The company went from a trading company to quite a lot of businesses with affiliates in insurance, retail, food processing, securities and many others. After the death of Lee Byung its founder, the company went on to be grouped into four main business categories, namely: Samsung Company, CJ, Shinsegae and Hansol. As it’s a branch on its own, Samsung took to electronics since the year 1990 with a specialty on semi-conductors and mobile phones. Currently Samsung has approximately 80 companies with a variety of businesses like electronics, shipbuilding, and construction, services in the financial sector as well as medical services.  It is also in the 1990s that Samsung started branching out in many other countries, for instance Thailand, Germany, China, Spain, Mexico, Britain and the United States. There were quite a lot of challenges along the way, for example in the year 1997 when businesses in Korea began shrinking and it was forced to reduce almost 50,000 employees. In the year 1993, Samsung Company came up with its first ever mobile phone; the SCH-800 and could be attained on CDMA networks. As the 20th Century was closing, the company came up with smart phones as well as phones that had mp3 players. Over the years Samsung has grown a great deal and its huge competitor is Nokia.           

Mission and Vision

Since the time it was founded, Samsung has greatly been able to preserve its mission statement which incorporates having change and also having developments the world over (Samsung.com, 2013). Its motto includes being able to inspire the world and create a brighter future.  Currently Samsung has a new vision which is to advance its communities using “New Technology”, “Creative Solutions” and “Innovative Products”. In addition to this, it wants to endorse new value for its partners, industry and employees. This is all in the hope of making the world a far much better place. “Inspire the world, create the future”. Samsung’s 2020 vision target is getting to $400 billion in revenue while being among the top five brands the world over. The company has so many plans and it’s excited about what the future will look like (Samsung.com, 2013).                                            

                                                                  Objectives

Being a big Company, Samsung has quite a number of objectives that it hopes to achieve in a big way. Some of its main objectives include: growing its main business and setting up in Egypt, raising its market shares while still keeping its market leadership, to be fully loyal and committed to its big group of customers (Samsung.com, 2013). Other than these, there are other two chief objectives which are constructing alliances with top manufacturers within the businesses its supplies. It also wants to continue investing in systems, people, and facilities on a long-term basis. In order to archive its set goals, Samsung company has to come up with a TQM known as discussing with the vice chairmen and the CEO of Samsung, professor OH-Hyun Kwon. The adaptation was reached for in the board meeting where experts were involved for critical analysis. He said this when I interviewed him:  “Following the fact that we have set aside $400 billion to be channeled in the 2020 vision, a good strategy has to be put aside so as to avoid variance in that expectation”. The company used some of the analysis to come up with this. 

The company capability to achive the EFQM is evident due to some of the factors which consist of;

1. Change management

The company has put into consideration the management to act on the changes that would be caused by the implementation of the EFQM .This is due to the fact that the psychological process of the workers will be affected as the introduction is alien to them and this has to be considered. The CEO of the company gave me a detailed report on how to Action the management changes so as to make employees appreciate the implementation. This comprises of

       I.Education through seminars and benchmarking-The company hired a team of experts whose role was to give a detailed information of what EFQM is and its positive and negative impact if introduced in the company. The company also selected a number of workers who visited the Smartphone company  that have adopted EFQM; this was convince the workers that indeed all that was being done was to motivate them so as to be able to thrive in the existing business condition. Fear demolishes workers morale and affects business negatively. To avoid this, Samsung company assured the workers that the implementation was not targeted at bringing unemployment, but rather to boost the market share and to make the company have a competitive basis in the digital world .An open forum was also created where workers had an interactive talk and  asked questions or commented on this implementation. The company realizes that the issue of change affects the social being of an individual where an extra job emerges, therefore the company has promised that if the implementation will be successful, every worker will get an extra increase of 15% of their salaries

    II.Incentives-After a successful implementation, job opportunities will emerge where the company use Peter Porter method of promotion This means that psychologically an employee will take that change positively and strive to their best to get that opportunity of promotion

 III. Environmental friendly –Introduction of EFQM is environmental-friendly and as a general rule, any environmental friendly invention is highly appreciated and welcomed hence, if this is considered then the issue of change will already be put into consideration.

2.  Organization Structure

The organization structure of the company is well defined where order and command flow from the top in autocratic manner. An independent committee of implementation has been introduced, where employees work is analyzed by the external auditor and the report is submitted to the board .This has impacted positively as the company analyzes this report through SWOT analysis to get the required report. The role and the duty of this is well explained – to give an account of each and every individual .This has made it possible for the implementation to take place. The committee set behind this has come up with a detailed implementation process which has forecasted the company requirement and the expectation of the implementation thereafter.

Advantages of EFQM in the company

Simple to implement and well understood- EFQM is well understood by the company.

Cost effective –EFQM is a cost-effective method that can be applied by all the industry

Flexibility-EFQM is flexible in a manner that it’s not rigid and can be used by any company

Disadvantages

If not well implemented a heavy loss befalls the company which can affect its market share.

Benefits of Samsung using EFQM

Samsung is very successful in applying the EFQM as it is leading to the tremendous success of the Company.  The definition of EFQM means European Foundation for quality management, which is meant to assist organizations in becoming more competitive. By doing so, it has customers who are not only satisfied, but also loyal. This translates to increased sales and also a good reputation. The main customers Samsung has are: United Arab Emirates government whereby it even has deals to construct nuclear power plants which costs $40 billion. Others include Royal Dutch Shell, and the Ontario government. By using EFQM Samsung is able to have both effective and efficient operations running. This therefore leads to a successful company where employees are satisfied, which means the more productive they become. The company production level will be improved as employees will be motivated, this in turn will improve both quality and quantity production, which will be in turn a boost of the market size control by the company.

Samsung has been able to utilize EFQM such, that it has become extremely competitive with other similar organizations. For example compared to Apple Inc, Samsung is expected to have a 35 percent increase in its sales this year. In South Korea for instance, it is estimated that this year Samsung Electronics will sell over 290 million smart phones which is a huge increase from 215 million that it sold in the year 2012 (Palmer, 2013). On the other hand, Apple Inc’s sales are expected to amount to approximately 180 million still in this year (Hyunjoo, 2013). Samsung Electronics are extremely valued by people in Asia and it has greatly fought to be among the top mobile sellers the world over. As a result of EFQM, at the end of 2012 Samsung saw a net profit of approximately $4.2 billion. Samsung strong believes that by having more competition, particularly in the business of mobile phones, there will be an impact on the profits it gets in the year 2013 (Hyunjoo, 2013).

Conclusion

For the past 70 years, Samsung Company has made it its prerogative to enhance the world by ensuring businesses today are progressed in the technology sector. It has ensured that it leads globally when it comes to high-tech electronics, as well as in the digital media (Samsung.com, 2013).  Samsung Company is going through the business environment that is fast-changing while dealing with risk management, as well as improving the various kinds of capabilities it has in all its businesses. The company has been growing with every passing year. Samsung’s organizational culture majorly puts its attention on ethics management, which enables its brands to have more loyal customers who respect them (Palmer, 2013). The company has good potential to implement EFQM, which is in the conjunction of vision 2020, and be a great importance to the company following its competitive basis. Through the utilization of useful concepts like EFQM, Samsung has ranked 2nd in the most admired electronics companies globally all the way from 9th place in the year 2009. This has shown that Samsung is able to be every competitive as it has used the right management tactics that enable it to be widely recognized and trusted by customers not only in South Korea but in all parts of the world.

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