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Lee Kun-Hee's observation of how poorly Samsung's electronics were regarded during a 1993 trip triggered a strategic change for the company. The chairman completely reorganized Samsung's structure and implemented merit-based compensation and promotion to transform the culture. To maintain its market position, Samsung will continue reviewing corporate governance to assess board and management performance.

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lalein castillo
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106 views

02 Activity 1 SM

Lee Kun-Hee's observation of how poorly Samsung's electronics were regarded during a 1993 trip triggered a strategic change for the company. The chairman completely reorganized Samsung's structure and implemented merit-based compensation and promotion to transform the culture. To maintain its market position, Samsung will continue reviewing corporate governance to assess board and management performance.

Uploaded by

lalein castillo
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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02 Activity 1

1. What is/are the triggering event/s that act/s as stimuli for strategic change in the given
case?
When Lee Kun-Hee, the conglomerate's chairman, observed first-hand how poorly
Samsung's electronics were regarded in the United States and Europe during his 1993 trip,
he promised to change that condition. This served as the trigger for the company's
strategy change.

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


In my opinion, the implemented Selected Strategies was a key characteristic of the
strategic decision discussed in this case study. It is the process by which the corporation
must put strategies into practice using its corporate policies, programs, and budgets. In
the instance of Samsung, the chairman completely reorganizes the conglomerate's
organizational structure in order to transform Samsung's electrical culture into one that
places a high emphasis on seniority. He also implemented merit-based compensation and
promotion.

3. How will Samsung maintain its successful market position by using one of the modes in
strategic decision-making?
From my opinion, Samsung will continue to use the Review Corporate Governance to
preserve its competitive market position. Since they are in the upper ranks of the
business, the performance of its board of directors and top management must be
assessed in order to sustain Samsung's successful market position.

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