Strategic Resource and Operations Management at Samsung Company Report

This report provides a comprehensive analysis of Samsung's strategic resource and operations management, focusing on its supply chain. It delves into Samsung's supply chain management practices, highlighting the use of the six-sigma model and its impact on continuous improvement. The report examines the linkage between Samsung's activities and various management theories, emphasizing the value chain model, including primary and secondary aspects like operations, inbound and outbound logistics, marketing, sales, services, firm infrastructure, human resource management, technology development, and procurement. It also discusses Samsung's procurement policies, which contribute to its strong supplier relationships and overall business success. The report concludes that Samsung effectively leverages supply chain management to expand its business globally and maintain customer interest through innovation and quality.

MANAGING STRATEGIC
RESOURCES AND
OPERATIONS

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Overview.....................................................................................................................................3
Supply chain management of Samsung company.......................................................................4
Linkage between company activities and other management theories.......................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Management refers to managing the overall activity in the business regarding managing
the purchasing of raw material, determining the needs and demands of the employees and also
providing adequate resources to furnish the products into finished goods. In respect of supply
chain management, it refers to managing the flows of the goods which is carried in form of raw
materials to finished products goods (Hitt, Xu and Carnes, 2016). The main motive which is
carried regarding undertaking the supply chain management is to be maximized the needs of the
customer through providing the accurate services. Present report is based upon the Samsung
company which was founded by Lee Byung Chul in 1938. This report will carry the matters
relating to examining the procedure regarding the supply chain management and also its linkage
between the company activities and theories to retain the customer interest in longer way.
MAIN BODY
Overview
Samsung is carrying the renowned brand name in the field of the electronic products as
this concept is brought by Lee Byung Chul in 1938. This is located in the Samsung town, Seoul
and also such business is carried by around 3,20,671 employees. By carrying the innovative
ideas in their products, Samsung is carried to be the sixth highest global value in terms of
economy, maintaining culture and also following government norms in better way. In 1938,
Samsung started its business in form of trading company and after three decades, they expand the
business in form of food processing, insurances, textile and retail business. After facing the
issues regarding the death of Lee, Samsung further divided into four groups and further deal in
services relating to electronics such as mobile phones, semiconductors which resulting in
enhancing the needs of the customer for longer way. Samsung company also become powerful
through carrying its innovative logo sign with different colour to represent the brand name of the
company. They carry the trademark and patent right regarding the designing which they are
promoting in market.
As in context of earning profits through selling huge stock of electronic products, they
also donate some amount of the profits to the Samsung medical centre where they provide
medicines or free medical helps to needy people (Slack and Brandon-Jones, 2018). It is also
examined that Samsung spent around $14 billion of their money in promotional activities such as

through advertising or marketing the products or services. In comparison to Apple, which is the
biggest competitors of the Samsung company, they are ranked as highest spending company in
respect of promotion of the business (Gibson and Parkman, 2018). In relation to facing issues
regarding financial crises, Samsung takes the crucial steps regarding cutting its contract with
Shinyang electronics regarding violating the norms under child labour laws.
Supply chain management of Samsung company
As supply chain management is mainly undertaken in respect of dealing the unfinished
products with the finished products and also providing the product with the best quality. By
carrying the renowned services in market, Samsung is carried to be the best supply chain model
of Asia. The main criteria of carrying the renowned brand image in market, Samsung carries the
six-sigma model in which they deal in improving the products on continuous bases in relation to
reducing the defects in their existing survey. The supply chain management of the Samsung is
purchasing raw materials from the suppliers, undertaking the process to keep the raw materials in
premises, designing the products to make it useful and then move the goods as finished goods to
the distributors and retailer of the Samsung products.
In such aspects, the supply chain management of the Samsung is carried to be the
powerful tool as they carry the power to expand the business operation globally. In relation to
undertaking the concept of supply chain management under the Samsung company, it mainly
works in respect of following ways such as:
 Firstly, the role of the SCM command centre is undertaken regarding managing the
products or services which is demanded worldwide.
 Secondly, the role of the sales and marketing management is undertaken in which the
actual position of the company regarding carrying sales and marketing is examined.
 Third position is related to determining the Advanced planning and scheduling in which
the planning is to be undertaken regarding purchasing the raw material in advanced. So,
that in context of cost fluctuation, this is helpful in saving cost.
 Fourth is relating to the supplier relationship management in which the relationship with
the supplier is to build strong, so that they can provide better quality products (Reid and
Sanders, 2019).
 Fifth perspective is relating to the collaborative planning, forecasting and Replenishment
in which the proper planning is initiated with long term goal in business.

Through carrying the effective supply chain model and by applying the six-sigma theory, it
results in adapting continuous improvement in their products, and they can easily identify the
defects through adapting the APS systems (Slack, 2018). This system is helpful in respect of
tracking the problems which is arising in business and also manage the performance of the
company in better way.
Linkage between company activities and other management theories.
From the above stated discussion, it is concluded that supply chain activities of the
Samsung is cooperatively linked with the theories of the supply chain management. As there are
few aspects which is stated regarding not linking up with these factors are relating to the carrying
the tangible assets such as building, plant, machinery, warehousing places or other tangible
things which can be seen touched and feel. By applying the supply chain management theories in
this perspective resulting in getting more benefit to the Samsung and it is not easily imitate by
any person.
Value chain model of the Firm and its sustainability
This model is mainly adapted by the Samsung regarding delivering the quality products
with low cost pricing. This model is established by Michael porter in which the firm had given
the chances to create value and advantages in respect of adapting the following factors such as:
Primary aspects: In these aspects, the factors which are directly linked with the value chain in
relation to examining the sales in the Samsung is relating to:
 Operations: This is one of the major aspects in relation to dealing in products which
provide benefits to the company. Samsung company deal in producing the mass
production regarding attracting the customer through their products and also reducing the
waste in company production activity. But the operation procedure, relating to mass
production can be undertaken through dealing in pre-planned planning which helps in
reducing the extra time which is incurred in producing the single products.
 Inbound logistics: In relation to Samsung company, they mainly depend on their business
from Asian countries where the goods or services are reaching into their business.
Samsung mainly carries the inbound logistic in form of raw materials which they are
receiving from supplier. Thus, in this case it is examined that the Samsung is dealing in
safe raw materials which bring sustainability to the environment and also won the trust of
the customer regarding providing high quality products.

 Outbound logistics: It mainly related to providing goods and services to outsiders
regarding carrying the business at global level (Anand and Gray, 2017). In context of
Samsung, it mainly related to increasing the production and supply of the goods to the
customer through undertaking various procedure such as deploying the goods which are
already kept at premises or examining the appropriate route through which the goods are
delivered or also managing the raw materials so that there are less chances of wastages of
goods. In case of Samsung, they can use this value chain factors through increasing the
delivering of the products by adapting the new and innovative design concepts. Through
this manner, they can deliver the quantity of the products to retain the customer interest
towards the business.
 Marketing and sales: In relation to retaining the interest and position of the business in
market, it is necessary that company must increase their sales criteria through adapting
new and creative ideas to promote the business. As due to changes in market trends,
customer is more attracted towards the innovative ads and also the promotional
techniques which they are using to retain their interest. Thus, in such case Samsung uses
the attractive information system and advanced technology to boost the interest of the
customer to purchase the products. They set the appropriate strategy regarding targeting
the high range of customer or providing products with nominal pricing or fulfilling the
customer demand which they required in particular products.
 Service: Business grows once they provide the appropriate services after conducting sales
procedure. In case of Samsung, they carry the strong sale services through adapting
various service centres in most of their areas. It is necessary that customer gets adequate
services once they avail the products of the Samsung and also this is helpful in
maintaining trust and loyalty among them. This can be attained through providing
warranties and guaranties to the customer in exchange for purchasing the products or
services.
Secondary aspects: It is also called as support activities in which the following factors are
explained which are facilitating the primary aspects is relating to:
 Firm infrastructure: This carries the equal importance in respect of managing the quality
of the products. As better infrastructure resulting in retaining more employees at work
place, and thus it helps in getting better productivity within the set time period (Hitt,

Carnes and Xu, 2016). Thus, through providing better products results in increasing the
productivity of the Samsung regarding purchasing more products of Samsung.
 Human resource management: This carries the major aspects regarding managing the
human resource activities as providing flexibility to the employees working in Samsung
or also organizing various cultural activities which resulting in enhancing their interest to
work at this place (Lee and Tang, 2018). Thus, in such aspect's management is to be
undertaken regarding proving training and knowledges to employees to attain the task in
right manner. It mainly results in getting more value to their business as if employees’
interest is fulfilled it resulting in increasing the productivity of the business through
delivering quality products to the customers.
 Technology development: Due to the changing market trends, it is necessary to adapt the
latest technology to reach the large number of customers. In such aspects, Samsung is
carrying the advanced technology to retain the customer needs through taking reviews
from the customer once they avail the products. For that, they had created the separate
department which is working on this perspective regarding reaching to large number of
customers. Thus, through these aspects, the Samsung company products are famous in
market and also mainly preferable by the customers. The main things which the Samsung
adapts is relating to promoting the business products through innovative things and thus
retaining the customer interest towards the products for longer way.
 Procurement: Samsung carries the strong procurement policy is respect of maintaining
the equality at work place and also provide equal chances to their suppliers regarding
dealing in particular task. Samsung had good relationship with their supplier and through
these aspects, they are attracting the customer through providing quality products with
the affordable pricing (Bromiley and Rau, 2016). The policy which the Samsung carries
resulting in getting more attraction of the people regarding working with the business and
carrying the business into new scale. Through these aspects, the value chain model is
increased.
CONCLUSION
From the above study the report concludes that supply chain management of the Samsung
company refers to carrying the strong and effective perspective regarding dealing in various
aspects. With this model, company had carried the heights of expanding the business globally

and also able to retain the customer interest towards the business for longer time period. It is also
examined that by applying this model, it results in getting more ethical and value added to the
business. Through this manner, Samsung adapts the latest technology to make the value chain
model stronger. Thus, through carrying the primary and secondary model, helps Samsung
company to deal in various aspects regarding building strong commitment with the customer.

REFERENCES
Books and Journals
Anand, G. and Gray, J.V., 2017. Strategy and organization research in operations
management. Journal of Operations Management. 53. pp.1-8.
Bromiley, P. and Rau, D., 2016. Operations management and the resource based view: Another
view. Journal of Operations Management. 41. pp.95-106.
Gibson, P. and Parkman, R., 2018. Cruise operations management: hospitality perspectives.
Routledge.
Hitt, M.A., Carnes, C.M. and Xu, K., 2016. A current view of resource based theory in
operations management: A response to Bromiley and Rau. Journal of Operations
Management. 41(10). pp.107-109.
Hitt, M.A., Xu, K. and Carnes, C.M., 2016. Resource based theory in operations management
research. Journal of Operations Management. 41. pp.77-94.
Lee, H.L. and Tang, C.S., 2018. Socially and environmentally responsible value chain
innovations: New operations management research opportunities. Management
Science. 64(3). pp.983-996.
Reid, R.D. and Sanders, N.R., 2019. Operations management: an integrated approach. John
Wiley & Sons.
Slack, N. and Brandon-Jones, A., 2018. Operations and process management: principles and
practice for strategic impact. Pearson UK.
Slack, N., 2018. Essentials of operations management. Pearson UK.