cultural differences
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Enterprises cultural differencesSouth Korea and China both belong to East Asia. But there are some corporate cultural differences in the Samsung’s Korea Corporation and the China branch.(1)Organizational Structure and decision-makingSouth Korean enterprises are same with Chinese enterprises, they attach great importance to the opinions which proposed by functional departments, like finance department. Functional departments have an important role in enterprise management, especially in decision-making. But in China, the functional departments often play the role of secretary, management decisions heavily influenced by subjective ideas of business leaders.(2)Centralization and Superior - subordinate relationshipChinese and South Korean enterprises both have a high degree of centralization. 80% of the rights concentrated in senior managers, middle-level and low-level managers only have very limited rights. Leaders attached great importance to the relationships with their subordinate, and fully understand the feelings and needs of their staff. This creates a unique benevolence management culture with authority and warmth. In Chinese companies, there is some psychological fear which is lower to higher levels.(3)Organizational atmosphereThe soft work environment in Chinese enterprises is often subtle and complex. But Korean companies emphasize unity. And emphasize the responsibility of every staff, and this spirit strong promotes the development of the South Korean companies. And it’s not enough for professional managers to have professional quality and work hard, the nepotism also should be concerned. But it is different in South Korean. Samsung countermeasures to overcome cultural differenceSamsung choose localization strategy to overcome cultural differences. Include: Using local employees and managers avoid cultural conflicts, actively participating in social welfare activities, building the Samsung living area and providing a wide range of training opportunities.(1) Using local employees and managersSamsung like many foreign investors, recruiting local talents involved in management activities, so that they continue to learn and grow within the company. It’s a fundamental solution to the conflict on subordinate and managers to smoothly carry out business.(2) Actively participating in social welfare activitiesSince Samsung has entered the Chinese market in 1992, they efforts to promote various social welfare activities. For example, in July 1, 2003, Samsung created the "Samsung Chinese social welfare group", carried out various social contribution activities in the whole of China. As well as in Beijing, from July 2003, all employees of the Beijing area is divided into six groups, and every Saturday turns to carried out to pick up garbage in Beijing Xian Shan.(3) Building the Samsung living areaIn recent years, Samsung set up various types of R & D center and production plant in China to facilitate the local Chinese people. For example, to create a goodliving and working environment, companies invest a lot of money to transform original plant to restaurant, clinic and Kara OK hall, etc. Everything Samsung employees use like telephone, television, furniture and schools are Samsung products.(4) Providing a wide range of training opportunitiesTo let employees understand and agree Samsung spirit, Samsung culture and Korean culture, company send dozens of people to the Korean study each year. Samsung regard Chinese market as the local market rather than the overseas market, Samsung is committed to satisfy with Chinese, and build Chinese business.Strength1. High Brand awareness2. Product diversification3. Promotion diversification4. Cost advantage5. Leading technology6. Comprehensive Distribution channels7. Close relationship with distributors8. Employees with strong stabilitySamsung is a famous brand, which is known as dynamic, stylish and high-tech company. Samsung almost include all electronic products. In 2000 Samsung began implement the “digital convergence strategy”, and build brand image worldwide. The most characteristic mean of marketing is the sports marketing. Like Samsung attended “Olympic TOP program”and sponsor varieties of sporting events. For example, in 1998, Samsung also is heavily in debt, on the brink of bankruptcy. Mr. Lee Against all the odds to enhance the Samsung brand image, which is the president of Samsung Group and invested $ 40 million to join the Olympic TOP program Then Samsung successfully established a "dynamic, stylish, high-tech" brand image, and fundamentally get rid of the kind of mass-produced, low-cost business model.Samsung spend about 15 years and invest a lot of money to research and development, And Become the largest provider of electron component in the world. Then realize the leading technology. In semiconductor industry and LCD panel industry, Samsung adopt counter-cyclical investment strategy beyond the Japanese companies. For example, in 1984, DRAM market downturn, Intel and other US companies exit the market Japanese company reduce the scale of investment and production capacity. But Samsung adopt counter-cyclical investment strategy, and then continue to expand production capacity and research and development higher capacity DRAM. In 1987, the industry turning point, and Samsung get great profit. Samsung patents in the United States, second only to IBM. Samsung's R & D costs about $ 9 billion, almost is same with Microsoft which is the first one. And Samsung build close relationship with distributors, and their employees, especially technical staff with strong stability.Opportunity1 The replacement climax of digital electronics2 The rural market has great potential for development.3 4G era in chinaDecember 2013 the Ministry of Industry official release 4G licenses, which means China's 4G era formally opened. For handset manufacturers, the ability to seize the opportunities, will largely determine its development in future. The rural electronics market in China has not yet beendeveloped, can not be ignored. With the development of urbanization, there is a huge potential in the rural market. Recent data survey shows the climax of electronic products will be replaced. If Samsung can seize the opportunities, Samsung will get great reputation and profit.。
