Take a global organization from you experience or research a global organization

Question

Take a global organization from you experience or research a global organization. Explain the international strategy and structure that organization developed when globalizing. Refer to the strategies and structures that are found within chapter 13 of your textbook. Make sure that you explain show these strategies and structure and how they helped the organization remain competitive nationally and internationally.

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Explanation / Answer

Samsung Electronics (SE):

SE focuses on high rate of global integration and cost efficiencies to expand its business. SE makes economies by location choice. The company builds manufacturers and R7D center in ideal places of each continent depending on low costs. China and Vietnam are used as cheap labor suppliers for Asian Market. For the European market, SE manufactures its electronic product in Poland where there is good balance between labor cost and sufficient Knowhow. R&D centers of SE are located on the basis of availability of high competencies of local employees and economies of taxes. The company keeps its HQ in Suwon because the Korean government gives huge tax discounts as compared to other foreign companies. It allows SE to reduce tax and delivery costs. Korean company develops experience curve economies using its experience from its different activities. It learns from the difficulties faced in some markets and applied the solution found on next challenge. SE does not have strong brand recognition of A/C machine in Australia; the company uses this experience to develop its brand in Thailand. SE does massive economies of scale with standardized products for e.g. Chips and memory is standard for all its corporate clients. The company chooses product lines which need quite a low degree of adaptation and a high expected payoff. SE enters into international market doing JV and partnerships.SE reorganized its structure to better highlight each business sector, common technology and customers market. It allows SE to create more efficient synergies between activities. It reorganized into two divisions from earlier ^ divisions. Two divisions are: Digital Media & Communications (DMC) business unit and a Device Solution (DS) business unit. SE slowed down the construction of new infrastructure thus focus on retaining the talent rather than losing it as the strongest asset of company is its technology, Knowledge and innovation coming from employees. SE focuses to make investment into its R&D centers so as to gain market leadership in terms of offerings and technology.

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