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Total Productive Management And The Role Of Employee Involvement Harvard Case Study Solution

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Total Productive Management And The Role Of Employee Involvement Case Study Solution and Analysis


Introduction

Historically, the company's core customers include the Original Devices Manufacturers (OEMs), which utilized to offer Total Productive Management And The Role Of Employee Involvement Case Study Analysis products withtheir own brand name. Its consumer circle includes Original Devices Manufacturers (OEMs), who used to offer Samsung items with their own brand name. He rearranged Samsung as an international brand name and informed his divisional supervisors to comprehend marketing and its value.

Problem Declaration

Samsung's shift from an item based to a marketing company is not going as smoothly as planned.Overcoming the unwillingness of divisional managers to incorporate marketing effectively is still a significant difficulty. Developing a consistent brand identity throughout the whole world and using marketing methods that best fits the regional culture is no simple job. The M-net program analysis have actually been really useful in identifying the high and less possible growth areas, however allotment of resources appropriately is not well gotten among the supervisors. There is no agreement amongst the hierarchy relating to the best matched future strategy.
Executive Summary
Situational Analysis

Yun had a rather clear photo in his mind about how Total Productive Management And The Role Of Employee Involvement Case Study Solution can change from a low end to a high end item service provider. He understood that change can just be done through placing Samsung as a business using high-end items and this might only be done through high level of marketing.

In spite of having a clear vision about how to develop Samsung brand name, with a possible assistance of its executives, Yun faced numerous marketing challenges in early years of its efforts.

Among the marketing challenges for Yun was the understandings of executives about the value of marketing. They thought about marketing and selling as exact same tools and thought that quality items do not required marketing for increasing sales. As their focus towards marketing was rather low in their previous organisation practices, and the current marketing requirement was too much high, the space was too larger and to fill this gap with incorrect perceptions about marketing was rather difficult for Yun.

Along with it the product variety of the company was increasing with the ripening of new item concepts by the R&D sector of Samsung. Yun had a challenge to carry out marketing preparation and to produce marketing budget plans for existing as well as for brand-new products from the very beginning, and this would take a big time.

A big shift would be required in current marketing expenditures to develop the Samsung brand name. This would result in increased marketing expenditures for Samsung and could disrupt the administration relating to increased expenses, as they were unwilling to marketing expenses formerly and a sudden huge shiftwould make them disturb.

Internal Analysis
SWOT Analysis
Strengths


Total Productive Management And The Role Of Employee Involvement Case Study Help strengths lie in its huge product portfolio. Samsung has largest number of patents in the market with total number of 15499 patents given in US( USP).

Another strength of Total Productive Management And The Role Of Employee Involvement Case Study Help is its capability to establish ingenious items at a constant rate. It major shows for the development and item developing of Samsung is that the business has actually received many awards for its innovation and product style.

Unlike Apple and other competitors, Samsung is concentrated on producing devices which can be easily incorporated with any type of open source Operating System (OS) and software. This supplies Samsung an edge over Apple gadgets.
Porter's 5 Forces Analysis
Samsung's capability to produce luxury products at low expense of production is also among the significant strength of Samsung as it makes it possible for the company to catch more market by offering quality items with cost control.

Weaknesses

Samsung's weak points are concealed in the company's dependence on outsourcing software application for its devices due to business's failure in developing software application, unlike Sony. Total Productive Management And The Role Of Employee Involvement Case Study Help also has low earnings margins as compare to Apple due to huge distinction in the rates of Apple and Samsung with a much lesser distinction in quality.

Opportunities

Opportunities for Total Productive Management And The Role Of Employee Involvement Case Study Help lie in the growing Smartphone market and the company's efficiency in the market. Samsung presently runs in about 80 countries and the company has an opportunity to increase its geographical growth by moving towards more emerging markets outside Asia.

Dangers

The dynamic market environment of technology market position a serious hazard on Samsung's survival and force the business to invest much of its revenues share on R&D in order to make it through in the long run. The market saturation in developed nations i.e. saturation of mobile business is also a big hazard for the company's growth in the presence of strong rivals like Apple.

4 P's of Marketing
Swot Analysis
Product

Total Productive Management And The Role Of Employee Involvement Case Study Help provides quality products and has a quite abundant portfolio which caters to different sectors. The majority of the products are in the leading 3 of their particular industries. LCD and cellphones are the most significant products of Samsung, whereas DRAM is likewise not far behind in comparison of them. Following is the line of product of Samsung:

• LCD/ TELEVISION
• Laptops.
• Smart phone.
• Air conditioning system.
• Personal computers.
• Hard drives.
• Washer.
• Fridges.
• Cams.
• Microwaves.
• Flash memory.
• DRAM.

Price.

Total Productive Management And The Role Of Employee Involvement Case Study Analysis uses both market competitive and market skimming pricing methods for its wide array of items. In competitive rates it adjusts the cost according to the competition in order to gain benefit, whereas, it utilizes market skimming strategy where the product has actually an added worth and by offering a couple of items it can reach break-even.

Location.

It has among the best supply chain networks, with retail distributors, their own sole suppliers, E commerce channels like Amazon and so on. All its products are timely supplied to the selling place/ provided to the clients straight in case of online order.

Promotion.
Vrio Analysis
It wasn't a popular business beyond Korea until 1993. However the management initiative taken by their CEO has actually pressed them to market more efficiently outside the borders and now it has actually entered the league of leading 25 business on the planet in just 9 years. This is a remarkable achievement despite the ongoing arguments amongst the supervisors about adopting marketing practices. It uses both offline & online channels of promotion to market their items. Paid item ads, social promotion and digital advertisements are uses to develop awareness about Samsung products.

Worth Chain Analysis.

It's an analytical structure for determining business activities that add worth or competitive benefit for the business.

Incoming Logistics.

It has one of the most efficient and reliable supply chain network and has more than 2700 suppliers throughout various markets worldwide. Almost 80% of which is based in Asia and the remaining around the globe. For its incoming logistics it owns numerous logistics companies as it subsidiaries. It looks after its providers and produces a harmonious relationship with them and even lowered their payment cycles to improve this relationship even more which includes worth to their chain network.

Operations.

Samsung's core proficiency is its mass manufacturing it produces 90% of its products in-house. Divided into three various divisions its operations are specifically IT & Mobile Communications, Gadget Solutions and Consumer Electronics. It is preserving operation centers worldwide to further add worth to its value chain network.

Outbound Logistics.

Its outbound logistics system performance is one of the primary factors Total Productive Management And The Role Of Employee Involvement Case Study Solution is able to take on Apple. Samsung's own Electronic Logitec system plays a significant role in the outbound logistics operations. It even performs the jobs of collection of payment, settling insurance claims, etc. on behalf of Samsung.

Marketing and Sales.

Bring in target consumer attention towards the item is done through marketing and sales to interact with them the value and competitive advantage the item provides. Total Productive Management And The Role Of Employee Involvement Case Study Help marketing budget plan is continuously rising because they started their repositioning worldwide and will continue to do so as they are constantly aiming to expand and invest in high prospective development markets. The budget plan is invested in events, print and media ads, public relations etc.

Samsung put their customers at the leading and continually aim to deliver unmatchable client service requirements. By including a direct assistance line to contact them 24 hours they have actually even more increased the included value of Samsung service.

Division.

Total Productive Management And The Role Of Employee Involvement Case Study Solution has actually diversified market division, based upon its provision of vast array of items to large number of consumers. Samsung target client sections can be divided into 3 categories i.e. Total Productive Management And The Role Of Employee Involvement Case Study Solution IT and Mobile Communications, Samsung Consumer Electronics and Samsung Device services.

Geographic.

Total Productive Management And The Role Of Employee Involvement Case Study Analysis geographical segmentation is based upon 2 criteria i.e. area and density. Samsung serves about 80 nations worldwide with its products provided to Urban as well as Backwoods of the nation. The Samsung is also growing its worldwide presence and the company's versatility in locating its plants motivates international expansion of Samsung.

Demographic.

The demographic segmentation of Total Productive Management And The Role Of Employee Involvement Case Study Analysis is based upon gender, age, life-cycle phase and profession. Samsung produces items that can be used by both males and women. The target consumers for Samsung IT and mobile communication items have an age variety of 18-65 with majority at a young or recently married life process stage. They are mainly trainees, employees and professionals. Apart from it, Samsung Customer Electronic devices are targeted to a consumer segment with an age range of 25-65. They are mostly employees and experts. Nevertheless Total Productive Management And The Role Of Employee Involvement Case Study Solution Device Solutions are targeted at students, workers and specialists with an age range of 25-65.

Psychographic.

The psychographic division of Total Productive Management And The Role Of Employee Involvement Case Study Help s based upon the social class and the life style of the customer. Samsung target consumers on the basis of social class are generally upper middle, middle and working class customers, as Samsung sell products like cellular phone very little less expensive i.e. Motorola along with very little expensive i.e. Apple. It provides quality items to middle level customers at a somewhat high price than others targeting the exact same section.

Behavioural.

Total Productive Management And The Role Of Employee Involvement Case Study Analysis majority target clients have unique behavioural characteristics. It has clients with an enthusiastic, fashionable and figured out character with moderate level of loyalty towards the brand. Its customers have some degree of shift towards other prominent brand names i.e. Apple. Most of Samsun customers desire quality as well as expense control. Because of its moderate prices with a degree of quality, they are brought in towards Samsung.

Quantitative analysis.

Sales of Total Productive Management And The Role Of Employee Involvement Case Study Help has actually increased remarkably from 16 billion $ in 1997 to 44.6 billion $ in 2002, and the net profit of.48 billion $ to 5.9 billion $. Digital media is the biggest selling classification of Samsung with sales of 13.9 billion $, whereas, Telecommunication and Semiconductors sectors both reached 11 billion $ in sales.

Qualitative analysis.

Whereas, the core strength of the business is presently manufacturing however long gone are those days when excellent products were selling themselves. Kim has actually already begun to strengthen the marketing activities of Samsung and extremely quickly it will become one of its core strength like producing if not better.

VRIO.

Worth.

Samsung operates styles, produces and offer a vast portfolio of customer electronics. It operates in an incredibly competitive environment and has successfully placed itself as the maker of quality items. So, the answer is yes.

Rarity.

As, stated previously that Total Productive Management And The Role Of Employee Involvement Case Study Help runs in an extremely competitive environment, which indicates all the business have similar products. So, the response for rarity is no.

Imitability.

Due to the nature of the industry, it is very simple for rivals to understand the performance of the products and quickly make their own designs. Yes, Samsung is just behind IBM in registering new patents each year, but the advantage is extremely short-term in this industry.

Organization.

Chairman Lee has completely turnaround Samsung, from going nearly insolvent throughout the Asian monetary crisis of 1997 to the top 25 company on the planet. Absolutely yes there appertains organization in the business and the outcomes speak for themselves.

External Environmental Analysis

PESTLE Analysis

Political

Being an international brand spread nearly in every country worldwide, majority of the environments like USA, Europe, China etc., are very conductive for its operations. It deals with some political pressures in less industrialized countries where law and order situation is not excellent. Latin American, African and some Asian countries fall in this classification, where political instability do have an effect on Total Productive Management And The Role Of Employee Involvement Case Study Solution operations.

Economic

Purchasing power of customers is essential for companies like Samsung to be successful and grow. Emerging markets like India, middle-eastern nations and so on supply growth chances, whereas, due to recession even the customers of developed countries suffer severely. It is very essential for the company to keep an eye on the ongoing financial situation of the country prior to going into the market.

Socio-Cultural

International companies need to face numerous social and cultural issues during its operations in a foreign nation. Samsung has actually also faced many problems however have adopted to the local environments of most of the countries exceptionally well. It has actually tailored its products, practices, policies etc. accordingly in order to be successful.

Technological

With an annual expenditure of 2.4 billion dollars in Research & Development, and with consistent ingenious product launches, Total Productive Management And The Role Of Employee Involvement Case Study Analysis is among the top innovative business of the world. With a clear mission to be ahead of the rest when it pertains to technological developments, Samsung has risen to the no 25 of the top effective business of the world.

Legal

Each country has their own laws and policies, being an international business Samsung need to strictly follow those laws in their jurisdictions. Failure to do so, will result in major legal consequences. It has to study or hire a regional law specialist before starting its operations in a particular country.

Environmental

With the rising awareness among customers about the ethical & environmental offenses of companies, Samsung has to guarantee that it follows all the security guidelines. Ecological damages, ethical misconducts are not appropriate and in some countries the repercussions can be really severe. On the other hand it has to do some Corporate Social Duty practices to reveal the locals that it appreciates their environment and individuals.

Porter's Five Forces

Danger of Replacement

Risk of substitution for Samsung's each product classification is quite significant. Elements for high risk of substitution for Total Productive Management And The Role Of Employee Involvement Case Study Solution Smart device consist of the existence of high number of providers and Market saturation in industrialized countries, which make the expense of switching for consumers nearly absolutely no. Along with it, Samsung printing solutions products are threatened by the increasing tourist attraction of consumers towards cloud storage.

Competition Among Existing Companies:

The rivaly amongst Samsung and its close rivals is extreme. The significant reason behind this is the approach of market saturation in different number of item categories, requiring Samsung to present more ingenious functions in existing items and brand-new ingenious items to maintain its growth. Other element for the extreme rivalry among the rivals is the little product distinction among the products. The prominent players in the technology market are quite familiar with the value of R&D costs for their survival and are encountering a race of marketing and R&D costs, to catch the marketplace. The significant competitors for Total Productive Management And The Role Of Employee Involvement Case Study Help samrtphones consist of Apple, Motorola, LG, Nokia, Huawei, OPPO etc. High competitors rivalry leads to the fluctuating market shares which can be seen in Exhibition F.

Bargaining Power of Providers:

Total Productive Management And The Role Of Employee Involvement Case Study Analysis has a vast supply chain including about 2700 suppliers across the world.( Samsung Sustainability Report, 2016) Supplier's bargaining power for Samsung is low as Samsung runs economies of scale and its orders are of prospective size and worth. These substantial orders make it possible for Samsung to work out costs with its suppliers. Due to incapability of Samsung to construct its own software, it has to outsource its software application advancement to Google, which becomes a prospective supplier of software application for Samsung, resulting in high bargaining power of Google. Although, in most of cases Samsung has a power to negotiate costs, but it supply significant rates to its suppliers to develop a strong supply chain and to have strong relationships with its suppliers.

Bargaining Power of Purchasers:

Market saturation in most of the item classifications also make the bargaining power of purchasers more intense in for Samsung. In spite of igh bargaining power Samsung is rather capable of selling its items at a higher cost than much of its competitors, due to high end quality product and a fair brand name image.

Danger of New Entrants:

Danger of new entrants for Samsung is rather low. Among the significant aspect for low hazard of brand-new entrants is the high competition in the market. The requirement of big quantity of capital to go into in the market is likewise among the prospective barrier to entry. In addition to it, requirement of big knowledge and research and development expenses for survival in the industry also make brand-new entrants unwilling to go into in the market. Market saturation is likewise among the barrier of entry in technology market. High bargaining power of providers require the players in the industry to charge as low costs as possible and this can only be attained by production efficiency. Brand-new firms, in majority cases, lack the production effectiveness, for this reason increasing the dangers for entryway in the innovation industry.

Competitive Analysis

Samsung's high product diversity offers it differentiation from its rivals. Unlikely to its close rivals consisting of Sony, Intel and Nokia, who focus bulk on a single product category with Sony focusing on customer electronic devices, Nokia on cell phones and Intel on chips, Total Productive Management And The Role Of Employee Involvement Case Study Help had a substantial R&D costs on all of its item categories which make it possible for the business to make possible revenue from sales of practically all of its products.

The business ranks initially in 4 item categories i.e. DRAM Chips, LCD Displays, Cinema Televisions and Microwave ovens, in terms of worldwide market share, among 8 different product classifications. Samsung was the worldwide leader in manufacturing DRAM, SRAM and NAND flash chips. Samsung profits from chips was less than Intel however its revenues from chips was growing quicker than Intel and has grown close to the revenue levels of Intel, as provided in the case Exhibit 2.

Together with the chips Samsung mobile market was likewise flourishing at a high rate than its competitors i.e. Motorola and Nokia. Samsung's cellular phone's sales growth was 51% as compare to Motorola with only 4% and Nokia with absolutely no sales growth. The major reson behind Samsung's high development despite of higher costs than Nokia and Motorola was the business's high-end quality cellular phone.

Samsung was also reaping the benefits from increasing market share of high-end LCDs as given in case Exhibit 3. The major reason, making the company enable to get the opportunity is its mass production at low expense. Sony was the most significant rival for Total Productive Management And The Role Of Employee Involvement Case Study Solution in LCD market, however, it had actually also begun joint venture with Samsung in 2003 for LCD producing, lessening the competitors for Samsung.

Porter's Competitive Method

Low Expense Leadership method of porter is completely executed by Samsung the way they accomplish economies of scale by enhancing their core competencies of manufacturing. Even to the point that their rival SONY decided to form an alliance with them to manufacture for them, due to the fact that they were unable to compete with them on low cost. Differentiation is another technique well carried out by Samsung by continuous financial investment in the R&D and remaining ahead of the competitors. They constantly bring something brand-new and ingenious whether it's an item or a service.

Alternatives

Alternative Solution 1

The Chief Marketing Officer (CMO) of Total Productive Management And The Role Of Employee Involvement Case Study Analysis would create a brand-new brand name image by targeting the more youthful generation of the specific country. As, particularly mobile phones of Samsung are very popular among the more youthful group.

Pros

1. It is the very best technique to construct Client Life time Value (CLV) by producing a long-term relationship with clients. Construct commitment through delivering value and profit for long-lasting, as research has revealed it is much cheaper to maintain current consumers than to draw in new ones.
2. Another pro of this option is that word of mouth spread quicker amongst younger people and which in turn will bring in brand-new customers for my products.

Cons

1. Old clients who were associated with Samsung before might not like this new image the company is trying to portray.
2 It will sustain more expenditures to reposition some items and it may not even bring success as the patterns change very rapidly amongst the younger market.

Alternative service 2.

It would be done by organizing training workshops during which value of marketing will be taught and numbers will be offered. Marketing environment should be created internally initially as genuine marketing begins inside the corporation.

Pros

1. Its pro will be that all the marketing method advocates will come out and also the opposite ones.

Cons

2. Its con can produce an extremely unhealthy environment in the office, as people frequently resist change since they fear it.

Determine the very best option

Very first alternative is the best as it clearly has more pros since when a Customer Lifetime Worth is built the company will profit from it till that customer lives and has purchasing power also. Plus, our target clients are the younger generation which are bound to live longer than the present aging individuals. Samsung's main goal is to produce commitment amongst its clients and make them redeemed it from them and even purchase their different items.

Execution Plan

• Targeting more youthful generation through social marketing, developing a relate to them like Pepsi do with music. And set the expectations reasonable and achievable.
• A group including finest marketing and sales professionals should be put together, and both views must be taken into account before securing the resources required to execute the plan.
• Thorough communication of the strategy need to be done as it is very important for everyone to be on the very same page to make it work.
• Jobs and timelines must be construct and interacted appropriately to each person accountable.
• The supervisor ought to utilize a control panel which reveals the progress of all the tasks which have been done or about to be done and by whom.
• The manager should keep an eye on and keep a consistent check on the private and overall efficiency.
Due to the fact that any new pattern or policy might come in due to which all the things already planned have to be changed, • Everyone should be ready to adapt midway. It's better to have contingency strategies already prepared.
• At the end of the campaign the supervisor need to communicate the results and if effective must commemorate with the group.

Spending plan

This modification the spending plan allotment of different nations and numerous supervisors were dissatisfied and argued but the analysis done by the program was precise and revealed figures like North America and Russia development possible merited a 35% allocation while they were getting 45%. It truly assisted to relatively distribute the resources and capture more consumers by spending more on advertisements on the high development capacity areas of the world.
Recommendations
Conclusion

Total Productive Management And The Role Of Employee Involvement Case Study Analysis is a top 25 company worldwide now and prepares to get ahead of Sony who sits currently at no. 20. Its continuous investment in R&D and ingenious practices have moved them to new heights but for them its' only the start and they wish to be amongst the leading 3 brands worldwide. They entirely turnaround from practically going bankrupt throughout the Asian Financial Crisis to a world prominent brand name, understood for quality and innovation. Their value chain and their core proficiency their production capability, along-with worldwide brand name image building have actually seen their sales go from 16 to 44.6 billion $ from 1997-- 2002. With more expansion in China and other emerging markets those numbers will only increase even more in the future. Their marketing efforts need to be directed towards more youthful market in the middle of the internal arguments about marketing and should create Customer Lifetime Worth as it will not just provide benefits now however will continue to enjoy it till the client lifetime. As the cost of maintaining the customer is more affordable than attracting a new one.