Managing Strategic Resources and Operations at Samsung

Managing strategic resources and operations

Running Head: Report
Contents
Introduction................................................................................................................................2
Overview of the Samsung Group...............................................................................................2
Samsung’s Supply chain/logistics management........................................................................3
Linkage between the Samsung activities and Managing Strategic Resources and Operations. 6
Sustainability throughout the value chain..................................................................................8
Conclusion................................................................................................................................10
References................................................................................................................................11
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Running Head: Report
Introduction
The primary aim of writing this report is to analyse and identify the global logistics of the
Samsung and get the insights on the supply chain channel and sustainability of Samsung
throughout the value chain in order to meet the requirements of the customer. This report
comprises of determination of the associated link of value chain of Samsung with the
Managing resources and operations theory.
Overview of the Samsung Group
Samsung group is leading financial, manufacturing and service conglomerate in the global
market and was founded in the year 1938. The Samsung group offered the services on areas
like Chemicals, machines, commercial and textiles. Further, the Samsung Electronics was
founded in the year 1969 and has started with producing the TV. In the first half of year 1990,
the Samsung Electronics commenced with producing hard drives and memory for personal
computers. The Samsung Electronics nowadays is a global IT leader and comprises of three
main divisions that is, device solution, consumer electronics, and IT and mobile
communication. Each division of Samsung Electronics is accountable for its own assembly
plants and factories. It has been studied that no outsourcing of Samsung Electronics of
assembly takes place. The best income generator of the Samsung is IT and mobile
communication which accounts for approximately 50% of annual sales of Samsung. This is
because the mobile phones of Samsung hold new position as a shareholder in the Global
market. In the year 2010, the Samsung has launched its android smart phones which helped in
increasing the profit margins and the annual sales in the global market. The smart phones of
Samsung are regarded as one of the best and are now in the fifth generation. This helps the
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Running Head: Report
Samsung to improve their sales; however, due to the domination in the global Smartphone
market, the Samsung faces the barriers (Lee, 2016).
Samsung’s Supply chain/logistics management
The value chain emphasizes on the practices commencing with raw materials until its
conversion into final products or services. The definition of value chain is proposed by Porter
which comprises of all the activities to create, produce, deliver, and support the service or
product. There are two categories of value chain. That is, primary activities and support
activities. The primary activities comprise of distribution, operations and sales while the
support activities comprise of human resources and Research and Development. The analysis
of value chain is performed to determine the competitive advantage sources and it comprises
of value creating activities of all the participants of the industry. The value chain model can
be understood through the fishbone diagram (Ran, 2009).
The Logistic management is a section of supply chain management and is a link which plans,
controls, the effective and efficient storage and flow of services and related information
between the consumption and origin point to meet the requirements of the customer. This
includes the flow of products or services in both the service and manufacturing sectors and
does the characteristics of Logistic management are unified management, dependency on the
technology as the force which effectively associate from the supplier to the consumer, overall
purpose of the organisation, emphasis on the complete Logistic channel and achieving the
satisfaction of the customers (Antica, 2014). The supply chain management is an innovative
and comprehensive activity comprising of system, process, and governance which optimises
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