Report on Customer Relationship Management Practices at Samsung

This report provides a comprehensive analysis of Samsung's customer relationship management (CRM) program. It begins with an overview of the company's history, organizational structure, and its fit within the external and internal environments, utilizing PESTEL analysis to assess political, economic, social, technological, legal, and environmental factors. The report then critically analyzes predominant CRM approaches employed by Samsung, identifying key setbacks both externally and internally, such as ineffective CRM software implementation and inadequate employee training. The report highlights the importance of CRM software in managing client experiences and expectations. Finally, the report concludes with specific recommendations for Samsung to improve its CRM practices, addressing identified issues and enhancing overall customer relationship management to increase sales.

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Management
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Abstract
The report has helped in analysing the importance of the customer relationship management
program in Samsung Company. The entire overview of the company has been provided with
analysis of the different advantages of implementing CRM in the organization. Furthermore,
the different disadvantages of the CRM practices have been highlighted that provided and
analysed different issues in the organization. It was noticed that the organization did not
implement the CRM software in an effective manner and this caused huge issues for the
organization as well in an appropriate manner as this will assist the company in managing the
different requirements.
Furthermore, it was noticed that the company did not implement the entire CRM software in
an appropriate manner as the employees were not trained in an effectual manner and this
caused negative effect on the brand image of the organization. It was analysed and identified
that CRM software is of huge importance as this has helped and assisted in managing the
issues in an appropriate manner. Lastly, the recommendations have been provided to
Samsung that can be implemented by them in order to improve the different issues effectively
and solve them appropriately as well. The CRM software helps in managing the client
experience and meet their expectations as well.

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Table of Contents
Introduction................................................................................................................................3
1. Analysis of Company.............................................................................................................3
a. Overview of Organization and History..............................................................................3
b. Organizational Structure and fit with External Environment............................................4
c. Management Structure and fit with Internal Environment.................................................8
2. Critically Analyse predominant client relationship management approaches.....................10
Key Setbacks in relation to CRM externally and internally....................................................13
Conclusion and Recommendations..........................................................................................16
Recommendations................................................................................................................16
References................................................................................................................................19

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Introduction
The report helps in analysis of the organization named Samsung along with analysis
of the fit with external and internal environment. Proper and critical analysis of the
predominant client relationship management approaches has to be utilised as to understand
the management structure of Samsung. The identification of the key setbacks has to be
identified and analysed in connection to the customer management which the entire
organization is experiencing externally as well as internally.
The main aim and purpose of the report is to identify the different appropriate
approaches that has enhanced the client relationship management practices along with
processes with the usage of different approaches along with recommendations.
1. Analysis of Company
a. Overview of Organization and History
Samsung is one of the South Korean multinational conglomerate that is headquartered
in Samsung Town, Seoul (Samsung in, 2018). It deals with different kind of affiliated
businesses that was founded in the year 1938 in the month of March. The name of the
founder was Lee Byung Chul and the areas served by Samsung is the worldwide. Samsung
has a powerful kind of influence on the economic development and culture of South Korea
and the revenue generated by Samsung was equal to more than 17% of the GDP of South
Korea.
It has been noticed that Samsung has completed the acquisition of HARMAN and
Samsung has ranked at number six in Interbrand’s Best Global Brands in the year 2017.
Lastly, Bixby voice capabilities that is available in the present in more than 200 countries in
the entire global market. The main objectives of Samsung are to create the best products
along with services as this will provide customers with best satisfaction.

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The mission of the company is to inspire the entire world with different innovative
technologies along with different designs of the product that helps in enriching the lives of
the individuals and this contributes to the entire social prosperity by creation of the new
future. Furthermore, the main vision of the company is to create a world with richer digital
type of experiences. The other vision is to be one of the innovative company along with
admired organization in the entire world.
Lastly, it has been noticed and identified that Samsung has contributed towards the
society in which they contributed towards the common interests and provide rich life to the
individuals living in the society and perform the statement of mission for the community.
b. Organizational Structure and fit with External Environment
Figure 1: Organization Structure of Samsung
(Source: Samsung in, 2018)

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From the organizational structure of Samsung, it can be analysed that there are major
two departments such as customer electronics and IT and Mobile Communication. The
external environment of Samsung can be analysed with the help of PESTEL analysis.
PESTEL Analysis
Political Factors is not so influential in nature in the process of progress for the
companies such as Samsung. The respective company is far away from the different political
scenario in the countries wherein it is operating. It has been seen that in the different
countries, wherein Samsung is reaching with their operations and organizational structure, the
political scenario is favourable for the company (Choudhury and Harrigan 2014).
However, the changes in the governmental structure in Latin America and Africa has
impacted the operations of Samsung. However, it is not such a big issue for the company to
worry about as they put the political instability in the operational strategic calculations. The
political factors are subjected to different kind of copyright law suit and the organization
structure is not suitable for the political structure (Wang and Kim 2017).
Economic Factor is the other essential dimension for Samsung in which it has been
noticed that in the year 2014, the decline in the profit of Samsung has been due to the falling
Korean currency and local competition increased in the market. Samsung has tried to expand
their global reach, they started to open new markets in developing countries (Diffley and
McCole 2015).
However, the economic crisis in the economy has affected the purchasing power of
the individuals in the developed countries. These issues have forced Samsung in new markets
elsewhere. This helped them in making up for the lost business. The fluctuation of the dollar
has affected the sale of Samsung phones and the entire organization structure of Samsung has

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affected in a slight manner as there has been huge negativity in the sale of Samsung mobile
phones (Chang, Wong and Fang 2014).
Socio-Cultural Factors is the dimension in which Samsung is the family owned
multi-corporation and this is operating in the entire Korean company. While there are
different kind of social trends that are changing, Samsung has attained growth with these
changes and they have tailored the organizational structure and products in accordance to fit
with the culture of world.
Technological Factors is the other dimension wherein it has been seen that Samsung
is one of the leading and innovative electronic products along with service providers in the
entire world. This has helped in analysing that Samsung is one of the best companies in
comparison to the other competitors in the market (Ho, Yang and Hung 2015). The company
has tried to come up with the different gadgets and unique products with the assistance of the
different departments as to gain competitive advantage in the market. The big data
department has helped them in managing the different capabilities to produce different
software and applications.
Legal Factors is the dimension in which Samsung has faced strict wireless
communication regulations and law along with electronic devices regulations in the society
along with other regulations. The legal division of the company is not so prompt and
responsible in managing the different copyrights and regulations that are required to be
followed by them. The organizational structure has to be changed by the company in order to
maintain different regulations as to solve such issues effectually (Armstrong et al. 2015).
Environmental Factors is the dimension wherein this will be satisfying the
requirements of ethical fashionable customers in which the customers are inspired behind the

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great innovations done by Samsung. This means that it did not compromise the labour laws or
the entire working conditions.
From the PESTEL analysis, it can be identified and understood that the entire
organization structure of SAMSUNG has tried to cope with the different kinds of kind of
factors, however in order to fit with the external factors, the company Samsung has to try to
implement the separate legal department that will determine the regulations and solve the
issues effectively (Nielsen 2015). It has been seen that the company has faced issues related
to different regulations and policy structure appropriately (Qureshi, Aziz and Mian 2017). It
has been seen that the economic factors have been subjected to political law suit that was a
huge issue for the company and the sales of the company as well (Johnson 2014).
Furthermore, it can be noticed that the PESTEL analysis of Samsung electronics has
portrayed that the company is not just focused to earn profit in the market, however it helps in
satisfying the demands of the clients by introducing high quality along with unique products.
Furthermore, the policies along with the regulations has to be addressed effectually as this
will assist the company in managing the rules and regulations as per the organization
structure of Samsung (Rahimi, Nadda and Wang 2018).

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c. Management Structure and fit with Internal Environment
Figure 2: Management Structure of Samsung
(Source: Samsung in, 2018)
The management structure of Samsung includes the two major departments that
include mobile and IT communication along with consumer electronics department. The
management structure of Samsung has been fit with the internal environment, however there
are few threats and weaknesses of the system as well (Trainor et al. 2014). The HRM
functions are in accordance with the internal environment and it easily fits with it effectively.
The strengths and weaknesses analysis can be conducted in order to analyse and understand
the different kind of issues along with strengths (Homburg, Jozić and Kuehnl 2017).
Strengths
The products developed by Samsung are environment friendly in nature
The products sold by Samsung are cheap in nature than Apple

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The brand of Samsung is recognised in the entire world (Khodakarami and Chan
2014)
The products of Samsung are developed with proper design and innovation
Weaknesses
In comparison to the other mobile companies, Samsung has low profit margin
The different competitors of Samsung such as Apple are the largest buyers of the
electronic equipment (Kotler 2015)
Samsung does not have any specific kind of software or OS (Ogasavara, Boehe and
Cruz 2015)
Samsung mainly focuses on producing products of different types such as phones,
laptops and television (Garrido-Moreno, Lockett and Garcia-Morales 2015)
From the entire analysis of the strengths and weaknesses, it can be analysed that internal fit
focuses more on the analysis of the different organizational and HRM functions and the
connection of the same with the organization (Rahimi and Gunlu 2016). From the analysis, it
was analysed that Samsung follows the hierarchical structure, however in the other mobile
companies they follow the flat structure. For instance- it has been seen that Samsung is not
being able to cope with Apple’s designs and this is affecting their sales (Harrison 2016).
It has been seen that global cell phone business has been funk lately and there has
been 11% of the sales has been reduced. However, Samsung has tried to increase their sales
in the worldwide market and this has influenced the company in a positive manner (Diffley,
McCole and Carvajal-Trujillo 2018). Furthermore, it has been seen that Samsung do not
comply with the HRM functions of the organization that has to be improved to increase the
presence in the market in comparison to the other competitors in the entire market.

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However, it has been seen that the company has innovative structure along with the
products are environment friendly that helps them in managing the different organizational
functions effectually. Lastly, it has been seen that Samsung did not meet the different
compliances and this is the weakness.
2. Critically Analyse predominant client relationship management approaches
Customer Relationship Management is the combination of the processes, people along
with technologies that seeks to understand the company’s base of the customers. Proper
management of the CRM implementation requires balanced and integrated approach to
process, people and technology. Samsung uses the SAP customer relationship management
solution as the entire foundation for integrated marketing campaigns (Rodriguez, Peterson
and Ajjan 2015).
Customer Relationship Management is regarding analysis of the target customers in
the business by offering targeted approach. Furthermore, it has been seen that communication
channels have grown exponentially wherein Samsung has different approaches to
communicate with their target customers in the market. Proper communication channels are
one of the proper things for the business as this helps in making proper ability to interact with
the customers and serve their requirements effectively (Cattani, Dunbar and Shapira 2017).
Furthermore, it has been seen that customer relationship management helps in
building relationships with the customers as the main motive of the company is to provide
their customers with positive experience when interacting with the brand. As there is growth
in the business, it can be hard for the company to keep the entire track of the interactions
among the customers and this can cause poor interaction among the customers and
management of the respective company (Hidayanti, Herman and Farida 2018). CRM is not
about focusing and nurturing the existing relationships with the customers, however it is

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relating to the different ways of gaining the customers in the market and converting the
potential customers into returning and new customers.
It has been seen that vice president of regional strategy team at Samsung named Soo-
Bong Kim has commented that company is looking for a correct CRM solution as this will
transform the different operations of Samsung and the company will become more customer
oriented to improve their marketing strategies along with the different customers in the entire
competitive market (Soltani and Navimipour 2016).
Samsung prides itself on meeting needs of the different customers with the usage of
revolutionary technology as this has assisted Samsung in meeting the demands of the
different customers and provide satisfying services to them as well (Trainor et al. 2014). the
fast-growing operations of the CRM practices has helped the company in growing their
business and operations along with optimising their marketing and sales activities based on
the detailed analysis of the different customers (Eichorn 2018). This strategy has helped the
company in defining their strategies and solved their issues in a much more effectual manner
of different target customers (Navimipour and Soltani 2016).
Samsung is one of the best examples that uses CRM and it has been seen that
Samsung is the leading companies in the department of Consumer Electronics and Cell
phones (Saldanha, Mithas and Krishnan 2017). In order to cut the entire time in the supply
chain, Samsung string the four processes that includes customer management process, R&D
management along with supply chain management processes. The company uses the ERP
system (Enterprise Resource Planning) in different branches throughout the country and
abroad.
Samsung will combine along with make the entire system network SCM by
developing management information systems that is appropriate world time. Samsung uses