We are a populace of a fashionably, technologically advanced society. Some of the most remarkable gadgets surround us, and are seen everywhere we go. From microwave ovens, refrigerators and dishwashers, to televisions, cameras and camcorders, the world booms with the latest and the greatest! In contrast to the stream of electronic engineers and manufactures, Samsung has played an immense role in putting these advanced technologies right at our fingertips. Though Samsung is a phenomenal electronic genius of today, yesterday tells a different story.
Samsung has fought to be where it is at present, leaving behind a history of growing pains. According to a case study, in the year 1997, a great portion of Asia encountered a huge economic collapse, creating insurmountable debt. If consumers were making any purchases at all, these purchases consisted of low cost merchandise mainly from other manufacturers found in China. The situation led to a drop in demand for Samsung products, causing much debt. Samsung was now competing with these Chinese manufacturers in order to keep profits rolling in.
Samsung continued to suffer and was in need of innovation and transformation. When Jong-Yong Yun took the stage as the new CEO for Samsung, he had a master plan that involved getting out of debt and upholding Samsung’s reputation as the leader in electronic manufacturing. Yun’s techniques reflected the model of Strategic Change. The first approach to his Strategic Change was the Big Bang method where Yun laid off 30,000 employees and shut down factories. This opened the door for the second method of Strategic Change- Reconstruction.
Yun was now able to employ new managers and engineers as well as sell the massive amounts of inventory that did not sell at retail. Instead of utilizing several advertising agencies around the world to promote Samsung, Yun sought to minimize these agencies and employ just one. These changes brought about a Revolution- the third and final approach to Yun’s Strategic Change. With some of the debt out of the way and a new work force, Yun could now concentrate on developing and manufacturing premium, cutting-edge electronics.
The days of replicating product designs of other electronic manufactures, were now obsolete. Yun began to design new products to ooh, ahh and wow consumers. In conclusion, Samsung mastered a magnificent renaissance! In the scenarios presented, which model Strategic Change, Samsung represents itself as a Learning Organization in the capacity of risk-taking. Samsung, with its polished, new agenda in stride, continues to blueprint remarkable high-tech electronics for the entire world to take pleasure in.