Samsung is unquestionably the most important company for the South Korean economy and a world leader in electronics Innovation Company. It is the world's largest technology company in terms of revenues, the largest mobile phone maker and television manufacturer and second largest semiconductor chip producer. If it currently occupies a prominent place on the world market, it does remain that Samsung continued to seek business opportunities and explore in all markets where the company will expand its empire.
Samsung already has a large variety of existing product categories, it could concentrate on strengthening the already existing ones. Taking the example of product categories which have proved to be the most successful ones, SE could develop its weaker product categories as prospering ones. Furthermore, SE should invest its money and increase its R&D activities in the area of software tribune and environmentally friendly product development because both fields are the most promising for the emerging future.
According to samsungsecurities.com (n.d.), We regularly communicate with our shareholders through shareholders' meetings to share our management status and issues with them. "Earning the trust of stakeholders is crucial. In this context, I think it was appropriate that Samsung Life recently came up with a new slogan called “Love in Us” and aligned its corporate organization with the new slogan. Now it needs to make sure that everyone at the company is on the same page. When every one of our employees unites under a shared goal, Samsung Life will be able to earn stakeholders’ complete trust and achieve sustainable growth."(Samsunglife.com, n.d.) High involvement in the process by a variety of stakeholders tends to generate better outcomes and a greater sense of ownership. Many organizations are using broad engagement strategies to increase participation in and commitment to strategic planning. Key stakeholders to be involved in strategic planning are those having a vested interest in the success of the organization. They include employees, unions, customers, vendors, shareholders, regulatory agencies, owners, supply chain partners, community members, and others who depend on and/or serve the organization. Each has a unique perspective about what it will take for the organization to succeed.
References
Samsunglife.com. (n.d.). Stakeholder Communication. Retrieved from http://www.samsunglife.com/companyeng/pdf/2010_SR_eng_stakeholder_communication.pdf
Samsungsecurities.com. (n.d.). Communication with Stakeholders | SAMSUNG Securities [B3]. Retrieved from http://www.samsungsecurities.com/csr/engagement.do?cmd=list&MenuCode=M020102
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Samsung and stakeholder groups
The Samsung Electronics Corporation is a multinational electronics manufacturing company operating in 80 countries with over 308,745 (Company Overview of Samsung Electronics Corporation Ltd.,2018). The organization became a leader in the consumer electronics products sector enhancing its manufacturing and production competencies and improving capabilities in design and marketing (Dyer, Godfrey, Jensen, & Bryce, 2016). Samsung uses a divisional organizational structure to support regional factories which develop and sell unique valued products. Consequently, the list of stakeholders includes customers, shareholders, employees, suppliers, local communities, governments, and media.
Shareholder’s impact on Samsung Business Strategy
Shareholders exert the most influence on a company’s corporate strategy and socially oriented policies. According to Dyer et al. (2016), the shareholder group has both a financial interest and the purchased right to oversee the corporation. As a group, shareholders actively participate in the development of the strategy as legal owners of the company. Additionally, investors provide necessary funds for companies to operate and impact companies approach other stakeholder including business partners, local communities, employees and governments.
Shareholders Engagement Motivation
Power and financial interest motivate shareholders to participate in the decision-making process of the organization they invest on. As investors purchase company shares their power and ability to influence the corporate strategy increases commensurately. As Kristen (2015) asserted, shareholders use their status to affect the corporate strategy including changes and modification to protect their interest. For instance, Lee (2007) noted that Samsung’s chairman exerted such influence on the company that strategic decisions followed his guidance rather than relying on market analysis. Consequently, Samsung unsuccessfully competed in the automobile industry ignoring market overcapacity and maturity.
Equally, investors help organizations develop strategies that maximize long-term organizational value (Harford, Kecskés, & Mansi, 2018). The shareholder group, as company investors, understand the effect the success or failure of the organization has on their financial position. Hence, shareholders leveraging their organizational power and protect their financial interest by helping managers identify and resolve issues affecting profit generation (Kristen, 2015)
Communication Strategy to Exchange Information with Shareholder
Corporations should include within their strategic plan a communication policy with shareholders to increase their engagement and to provide timely financial performance and operations status. According to Harford et al. (2018), the approach offers an opportunity for investors to continuously monitor, gain insight and provide opinions about the corporate agenda, direction, and strategy. As an example, corporate communication such as annual and quarterly reports and proxy forms maintain shareholder informed about the business performance. Additionally, the board of directors’ meeting allows shareholders to challenge governance, exercise their ownership right and provide guidance regarding strategic objectives (Dyer et al., 2016).
References
Company Overview of Samsung Electronics Corporation Ltd. (2018) Retrieved from https://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=91868
Dyer, J. H., Godfrey, P., Jensen, R., & Bryce, D. (2016). Strategic management: Concepts and tools for creating real world strategy. Hoboken, NJ: John Wiley & Sons.
Harford, J., Kecskés, A., & Mansi, S. (2018). Do long-term investors improve corporate decision making? Journal of Corporate Finance, 50, 424–452. doi://10.1016/j.jcorpfin.2017.09.022
Kristen, J. (2015). Stakeholders theory- how they influence the business policy. Scholedge International Journal of Business Policy & Governance, 2(4), 14–17. Retrieved from https://ezp.waldenulibrary.org/login?url=https://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=102670594&site=eds-live&scope=site
Lee, W., & Lee, N. S. (2007). Understanding Samsung’s diversification strategy: The case of Samsung Motors Inc. Long Range Planning, 40, 488–504. doi://10.1016/j.lrp.2007.06.011