Samsung Case Study

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Leadership at Samsung
Samsung Electronics Company, established in 1938 is a conglomerate company based in South Korea. Initially, Lee Byung-Chull, the founder of Samsung Electronics Company started it as a Korea based trading company. One of the most significant survival strategies of Samsung was diversification. The company was once a grocery store, manufactured noodles, a sugar refinery, and a textile company. Later, the company expanded to a retail business, securities, and an insurance company. The company, which is the world’s biggest electronics company by revenue have been in business for 70 years.
Lee Kun-Hee is the face of the Samsung Company. The chairman has enhanced the global brand image of the company. However, his management has some shortcomings. Under the supervision of Lee Kun-Hee, Samsung electronics company autocratic leadership style is used. Kun-Hee has significant authority over the Samsung staff members and its shareholders, and he seldom considers sharing of power with his juniors (Jung 15). The chairman reserves most of the company’s profits for future growth at the expense of dividend’s given to the shareholders of the company. From our case study, Kun-Hee distributes dividends of a mere one percent of the stock price.
Could Samsung’s new management of Lee Jae-Yong cause a positive impact on the company? Lee Kun-Hee possible handover of power to his 45-year-old son could be the badly needed change at Samsung (Jung 15).

Jae- Yong has an impeccable 23-year track record at Samsung, where he has risen to the pinnacle of management to become the vice chair of the company. Jae –Yong has impacted the company’s strategic planning positively. From my point of view, Jae-Yong will ensure that shareholders influence the company’s financial policies and dividend’s, which is projected to enhance the profitability of Samsung electronics (Jung 15). Therefore, the new chair is likely to be a relief to the shareholders.

Works Cited
Jung, Song. “Samsung ‘Crown Prince’ Lee Jae-Yong Poised To Make Mark.” Financial Times, 2014, p. 15. https://www.ft.com/content/e04d2684-7698-11e4-a704-00144feabdc0.