Reference no: EM133064409

Case: Samsung group was originally founded as an exporter of dry fish, vegetables and fish. In the 1960s, Samsung Electronics was founded. It's first mobile phone was launched in 1988. By 2005 it was bigger than Sony, and two years later it overtook Motorola. In 2009 Samsung Electronics achieved revenue of U.S. $117 billion, making it bigger than Hewlett Packard. By 2012, it became the biggest seller of mobile handsets: beating Nokia .

Against the backdrop of this astonishing growth is a vast organization operating M most global markets. Samsung consists of a bewildering number of subsidiaries across the electronics sector (with six main subsidiaries), machinery and heavy industry, chemicals, financial services and dozens of other affiliated companies ranging from medical services to hotels and resorts.

Technically speaking, Samsung is unique as far as con-glomerates are concerned. New products are launched across the business at a rapid rate. The business aims to target mass markets with its products manufactured at the cheapest pos¬sible price. Growth is ensured by the continued investment in start-ups. To date, Samsung has invested U.S. $1.2 billion in start-ups, retaining nearly 30 percent of the equity of these businesses on an average.

As a small group, investigate the organizational design and control of the conglomerate. What is the central driving force, and how is focus maintained? is control really exercised from a single board room? Visit the Samsung website and select a comparable U.S. multinational (such as Apple) for comparative purposes.

Question 1: Investigate and show the overall organizational design of. Samsung. What are the likely chains of command?

Question 2: What do you see as the biggest advantages and dis-advantages of Samsung's organization design?

Question 3: How might the Samsung organizational design and control change over the next decade?