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02-Activity-1-STRAMA

The document discusses strategic changes at Samsung, triggered by Lee Kun-hee's realization of the company's poor reputation and his drastic actions to improve quality and brand image. It highlights the characteristics of strategic decisions, including a focus on long-term goals, investment in R&D, and cultural transformation. Samsung's successful market position is maintained through brand management and a logical incrementalism approach to strategic decision-making.

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samantha
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2 views

02-Activity-1-STRAMA

The document discusses strategic changes at Samsung, triggered by Lee Kun-hee's realization of the company's poor reputation and his drastic actions to improve quality and brand image. It highlights the characteristics of strategic decisions, including a focus on long-term goals, investment in R&D, and cultural transformation. Samsung's successful market position is maintained through brand management and a logical incrementalism approach to strategic decision-making.

Uploaded by

samantha
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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02 Activity 1

Members:
Basilio, Erica Januaryn
Hipolito, Justine Ivan
Linchoco, Jen Samantha
Ong, Sophia Marie
Veras, Fujiko Myra

Samsung
1. What is/are the triggering event/s that act/s as stimulus/stimuli for strategic
change in the given case?
Key events that prompted strategic change in Samsung include Lee Kun-hee’s
1993 trip, where he noticed Samsung’s poor reputation in the US and Europe compared
to competitors like Sony and Motorola. This realization pushed him to aim for a better
brand image and market presence and Lee Kun-hee’s dramatic action of destroying
150,000 new Samsung phones in front of employees symbolized his dissatisfaction with
the company’s quality and his commitment to change. This act highlighted the need for a
shift in culture and strategy.
2. Which characteristic/s of strategic decisions is/are described in the case
study?
Lee Kun-hee's long-term strategy aimed to transform Samsung into a global leader
in high-tech industries, shifting its focus from low-cost to premium electronics. Samsung
invested heavily in R&D, marketing, and talent acquisition. Top management was involved
in the transformation, leading a cultural overhaul and introducing merit-based practices.
The decision to destroy 150,000 defective phones symbolized quality improvement and
cultural change.

3. How will Samsung maintain its successful market position by using one of the
modes in strategic decision-making?
A major factor in Samsung's success is its brand management procedures.
Samsung has consistently based all of its operations on its brand strategy, starting back
to the early days when it was transforming the brand from a low-cost producer to a brand
of class and quality. Because it can be seen as a combination of planning, adaptability,
and a smaller corporation's mission and objectives, Samsung can maintain its successful
market position by utilizing the logical incrementalism mode of strategic decision-making.
However, in the process of developing its strategies, Samsung selects for an iterative
approach in which their organization experiments, learns, and probes the future.

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