Samsung Electronics Company is a multinational firm based in Korea. The firm deals in the production and manufacturing of electronic products. In addition to that, some of the devices that the company manufactures include tablets, smartphones, air- conditioners, printers and other accessories. The company is also actively involved in technology business such as capital investment. The firm has a vision for it to create the world’s future and inspire the world (Endrődi-Kovács, Kutasi & Magasházi, 2018). It also has a mission which is to encourage the world through innovative technologies, designs, and products that will have the aim of enriching the lives of people and these technologies will contribute positively to society for a sustainable future. Additionally, creativity and partnership use the strategic direction the Samsung Electronics Company is willing to take.
Samsung Electronics is one of the largest companies in the world with sales networks in 80 countries. Nonetheless, it has become the primary source of employment for many people since about 320,000 employees. It has also been regarded as the largest company that deals in information technology, chipmaker, and maker of electronics by revenue (Jaeyong, Kyungmook & Khanna, 2016). The company has registered high profits. For instance, in 2017, its market cap in the United States of America was 372 billion dollars. The multinational company also has an ownership structure known as circular ownership that is complicated.
Samsung Electronics Firm has also had a series of challenges. The first is that it has been difficult for the company to make people trust it once more after it produced the low-quality Samsung galaxy 7. The company created this phone that had a battery that caught fire quickly. The phone also had a problem of overheating. After there were many complaints about this, the company called on people to return their phones, and they decided to change their phones for new ones which they thought were of better quality. However, this problem was still persistent.
Nonetheless, people lost trust in the company after this incident (Samsung Electronics Co., Ltd. SWOT Analysis, 2017). From then on, there has been a lesser demand for their smartphones, and even though the company has come up with better high-quality phones, people do not buy them. They have turned their belief to the fact that Nokia produces the best phone. This has had a heavy toll on the firm, and this has been the major problem for the company. This will affect the future of the company since people will avoid their products due to fear of them being of good quality.
In addition to that, the other challenge is that cannibalization was present. This has been caused by the act of the company producing a series of smartphones continuously. The company has provided mobile phones that are similar to other company’s products. This has led to a lack of originality among the company. Therefore, due to this, there is a reduction in the company’s sales, its revenues, and even market share. This has led to the company incurring more losses for the Samsung Company. This challenge affects the future of the firm since it makes the company incur more losses than profits.
Human resource management has various roles in the firm. The first is that it manages and recruits’ employees. It also has a role in coordinating the benefits of the employees. For instance, if the company wants the employees to carry out a particular task, human resources inspect the work they are doing, and it guides them. It also has a role in developing strategies that are to improve the company. Through these strategies, human resources may offer crucial advice to the company on how to reduce cannibalism and how to regain the trust of their customers (Samsung Electronics Co., Ltd. SWOT Analysis, 2017). Human resources also have a role in training employees to take up new positions and to learn more about what they are supposed to do and what is expected of them.
References
Endrődi-Kovács, V., Kutasi, G., & Magasházi, A. (2018). Visegrád Group Expertise and Position in the Samsung Global Value Chain: A Case Study of Samsung Electronics in the V4 Countries. Central European Business Review, 7(1), 14-36.
Jaeyong, S., Kyungmook, L., & Khanna, T. (2016). Dynamic Capabilities at Samsung: Optimizing Internal Competition. California Management Review, 58(4), 118-140. doi:10.1525/cmr.2016.58.4.118.
Samsung Electronics Co., Ltd. SWOT Analysis. (2017). Samsung Electronics Co., Ltd. SWOT Analysis, 1-32.
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