Every company strives to achieve its objectives. Normally, the way to achieving the objectives is by having setting objectives in the first place. Then the constructed objectives are shared with the employees together with specific action-steps to achieving them. This paper will evaluate the operations management of Samsung in terms of its operational efficiency with its operational strategy. Also, it will formulate a new operations strategy and analyze the structure of the competitive priorities and infrastructure of its production process.
Samsung has operational strategies in place designed to help it reach its objectives. It is these operational strategies that the company has examined and implemented efficient and effective systems for using its personnel, work process and resources (Wang, & Wu, 2012). Samsung uses corporate strategies, customer-driven strategies, developing core competencies, product and service development strategies, and competitive priorities strategies. Under corporate strategy, Samsung endeavors to interconnect its procurement, manufacturing, logistics, sales, research and development, and after service departments into a single system (Wang, & Wu, 2012).
The departments are designed to depend on each other as a way of ensuring the objectives of the company are achieved. However, the task of launching new concept Vision Lab Store in 2017 was not aligned with its operational strategy considering that it has not been able to make the anticipated impact. The reason it did not impact as expected was because it focused on organic growth, an area that take time, especially is terms of retailing (Wang, & Wu, 2012).
Samsung uses Research and Development strategy in which it has managed to invest 9 percent of its revenue which is the biggest percentage invested in this department as compared to that invested by its competitors. Also, this department boasts of about 42000 employees working directly or indirectly in this department in various countries where the company has a presence. This department helps a lot in forging new market trends and setting new standards for excellence (Kaplan, & Norton, 2006).
The task of imitating competitor’s product is not aligned with operational strategy since it can result into law suits being brought against the company by the competitor whose product has been imitated. The basis of such lawsuits would be based on breach of copyrights. This could paint the company negatively and destroy its reputation as the second largest information technology company (Kaplan, & Norton, 2006).
The proposed operations strategy would include restructuring the Corporate Strategy Office that for a long time has been controlling activities from a centralized point. This simultaneous competition and cooperation among its different business units requires strong leadership that may not be readily available. Also, part of the new operational strategy would involve restructuring into Asian market, where markets are already available in China and India. The restructuring would also involve moving into Northern America where market is readily available in Brazil and neighboring countries (Kaplan, & Norton, 2006).
Besides these, the company will also look at other regions when allocating the free cash flows. The available free cash flows can be channeled to restructuring the lower markets, to allow both flexibility and research with the labor groups in the relevant regions (Kaplan, & Norton, 2006). This research would with expanding the technology and models provided in its products to the consumers. The intensified marketing and increased expansion into other markets will automatically enable the company to reach a bigger target group of consumers, hence increase its profitability (Awwad, Al Khattab, & Anchor, 2010).
Samsung already has manufacturing points in China, where it has access to the Chinese market and is able to research more and develop new technologies and models of the products that it deals in. Generally, the competitive priorities of Samsung are flexibility, time, quality, and cost. The expansion will help in ensuring its consumers have easy access to its products in those regions. Samsung will have to consider various enablers including growth from opportunities arising from the needs of consumers that are unfulfilled. This, the company can do by fulfilling superior needs which the competitors have failed to address (Awwad, Al Khattab, & Anchor, 2010).
Also, the company will have to focus on accelerating its decision-making and analysis process besides rewarding acceleration of strategy implementation to enable introduction of new technologies and products ahead of the competitors. The pros of these enablers would mean Samsung must introduce those new technologies and products prior to any competition. Also, by doing this, Samsung will be able to increase its growth and hence push itself to ahead of its competitors both in the industry and market (Awwad, Al Khattab, & Anchor, 2010).
Samsung’s competing primacies are precisely aligned with the production strategies that it is pursuing. Its production strategies play a crucial role in determining its infrastructure strategies. Samsung’s current supply chain decision-making has a foundation that makes it most suited for combining online shopping with in-store shopping (Awwad, Al Khattab, & Anchor, 2010).
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