Samsung: Family Assets and Roadblocks (B) - Heart Attack Puts Succession Planning at Risk SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Samsung: Family Assets and Roadblocks (B) - Heart Attack Puts Succession Planning at Risk
This three-part case covers the history of Samsung from its origins as a small trucking company to one of Korea's largest conglomerates. Part A, "Drivers of Success, Family Assets and Business Strategy", charts the growth of Korea's the export-led economy after the end of Japanese occupation in 1945, driven by a handful of family-owned 'chaebols'. Founder Lee Byung-chull's trucking business, set up in 1938, diversified in the aftermath of the Korean War, as he forged a strong political network that enabled him to embed his family's influence and assets in the business strategy. Part B, "Heart Attack Puts Succession Planning at Risk", describes how the ill health of the second-generation leader Lee Kun-hee deprived the firm of a clear succession plan. As the de facto leader of Samsung, his son had to build up his power base to assume the role in the context of a complex ownership structure. Part C, "Court calls time out on Lee Jae-yong", examines how the de facto heir was convicted of bribery and given a five-year prison sentence, prompting speculation that he would run the Samsung empire from his cell.
Authors :: Morten Bennedsen, Brian Henry, Yupana Wiwattanakantang
Swot Analysis of "Samsung: Family Assets and Roadblocks (B) - Heart Attack Puts Succession Planning at Risk" written by Morten Bennedsen, Brian Henry, Yupana Wiwattanakantang includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Samsung Lee facing as an external strategic factors. Some of the topics covered in Samsung: Family Assets and Roadblocks (B) - Heart Attack Puts Succession Planning at Risk case study are - Strategic Management Strategies, and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Samsung: Family Assets and Roadblocks (B) - Heart Attack Puts Succession Planning at Risk casestudy better are - – there is backlash against globalization, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing energy prices, cloud computing is disrupting traditional business models, increasing household debt because of falling income levels, increasing government debt because of Covid-19 spendings, central banks are concerned over increasing inflation,
challanges to central banks by blockchain based private currencies, talent flight as more people leaving formal jobs, etc
Introduction to SWOT Analysis of Samsung: Family Assets and Roadblocks (B) - Heart Attack Puts Succession Planning at Risk
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Samsung: Family Assets and Roadblocks (B) - Heart Attack Puts Succession Planning at Risk case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Samsung Lee, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Samsung Lee operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Samsung: Family Assets and Roadblocks (B) - Heart Attack Puts Succession Planning at Risk can be done for the following purposes –
1. Strategic planning using facts provided in Samsung: Family Assets and Roadblocks (B) - Heart Attack Puts Succession Planning at Risk case study
2. Improving business portfolio management of Samsung Lee
3. Assessing feasibility of the new initiative in Leadership & Managing People field.
4. Making a Leadership & Managing People topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Samsung Lee
Strengths Samsung: Family Assets and Roadblocks (B) - Heart Attack Puts Succession Planning at Risk | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Samsung Lee in Samsung: Family Assets and Roadblocks (B) - Heart Attack Puts Succession Planning at Risk Harvard Business Review case study are -
Ability to recruit top talent
– Samsung Lee is one of the leading recruiters in the industry. Managers in the Samsung: Family Assets and Roadblocks (B) - Heart Attack Puts Succession Planning at Risk are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Successful track record of launching new products
– Samsung Lee has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Samsung Lee has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Organizational Resilience of Samsung Lee
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Samsung Lee does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
High switching costs
– The high switching costs that Samsung Lee has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
High brand equity
– Samsung Lee has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Samsung Lee to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Diverse revenue streams
– Samsung Lee is present in almost all the verticals within the industry. This has provided firm in Samsung: Family Assets and Roadblocks (B) - Heart Attack Puts Succession Planning at Risk case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Learning organization
- Samsung Lee is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Samsung Lee is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Samsung: Family Assets and Roadblocks (B) - Heart Attack Puts Succession Planning at Risk Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Training and development
– Samsung Lee has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Samsung: Family Assets and Roadblocks (B) - Heart Attack Puts Succession Planning at Risk Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Operational resilience
– The operational resilience strategy in the Samsung: Family Assets and Roadblocks (B) - Heart Attack Puts Succession Planning at Risk Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Effective Research and Development (R&D)
– Samsung Lee has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Samsung: Family Assets and Roadblocks (B) - Heart Attack Puts Succession Planning at Risk - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Highly skilled collaborators
– Samsung Lee has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Samsung: Family Assets and Roadblocks (B) - Heart Attack Puts Succession Planning at Risk HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Innovation driven organization
– Samsung Lee is one of the most innovative firm in sector. Manager in Samsung: Family Assets and Roadblocks (B) - Heart Attack Puts Succession Planning at Risk Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Weaknesses Samsung: Family Assets and Roadblocks (B) - Heart Attack Puts Succession Planning at Risk | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Samsung: Family Assets and Roadblocks (B) - Heart Attack Puts Succession Planning at Risk are -
Aligning sales with marketing
– It come across in the case study Samsung: Family Assets and Roadblocks (B) - Heart Attack Puts Succession Planning at Risk that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Samsung: Family Assets and Roadblocks (B) - Heart Attack Puts Succession Planning at Risk can leverage the sales team experience to cultivate customer relationships as Samsung Lee is planning to shift buying processes online.
Increasing silos among functional specialists
– The organizational structure of Samsung Lee is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Samsung Lee needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Samsung Lee to focus more on services rather than just following the product oriented approach.
High operating costs
– Compare to the competitors, firm in the HBR case study Samsung: Family Assets and Roadblocks (B) - Heart Attack Puts Succession Planning at Risk has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Samsung Lee 's lucrative customers.
Slow to strategic competitive environment developments
– As Samsung: Family Assets and Roadblocks (B) - Heart Attack Puts Succession Planning at Risk HBR case study mentions - Samsung Lee takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Samsung: Family Assets and Roadblocks (B) - Heart Attack Puts Succession Planning at Risk, in the dynamic environment Samsung Lee has struggled to respond to the nimble upstart competition. Samsung Lee has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
No frontier risks strategy
– After analyzing the HBR case study Samsung: Family Assets and Roadblocks (B) - Heart Attack Puts Succession Planning at Risk, it seems that company is thinking about the frontier risks that can impact Leadership & Managing People strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
High bargaining power of channel partners
– Because of the regulatory requirements, Morten Bennedsen, Brian Henry, Yupana Wiwattanakantang suggests that, Samsung Lee is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Skills based hiring
– The stress on hiring functional specialists at Samsung Lee has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Samsung: Family Assets and Roadblocks (B) - Heart Attack Puts Succession Planning at Risk HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Samsung Lee has relatively successful track record of launching new products.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Samsung Lee is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Samsung: Family Assets and Roadblocks (B) - Heart Attack Puts Succession Planning at Risk can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High cash cycle compare to competitors
Samsung Lee has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Opportunities Samsung: Family Assets and Roadblocks (B) - Heart Attack Puts Succession Planning at Risk | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Samsung: Family Assets and Roadblocks (B) - Heart Attack Puts Succession Planning at Risk are -
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Samsung Lee can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Samsung Lee in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Leadership & Managing People segment, and it will provide faster access to the consumers.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Samsung Lee is facing challenges because of the dominance of functional experts in the organization. Samsung: Family Assets and Roadblocks (B) - Heart Attack Puts Succession Planning at Risk case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Samsung Lee can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Samsung Lee to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Using analytics as competitive advantage
– Samsung Lee has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Samsung: Family Assets and Roadblocks (B) - Heart Attack Puts Succession Planning at Risk - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Samsung Lee to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Low interest rates
– Even though inflation is raising its head in most developed economies, Samsung Lee can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Samsung Lee can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Samsung: Family Assets and Roadblocks (B) - Heart Attack Puts Succession Planning at Risk, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Better consumer reach
– The expansion of the 5G network will help Samsung Lee to increase its market reach. Samsung Lee will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Leveraging digital technologies
– Samsung Lee can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Creating value in data economy
– The success of analytics program of Samsung Lee has opened avenues for new revenue streams for the organization in the industry. This can help Samsung Lee to build a more holistic ecosystem as suggested in the Samsung: Family Assets and Roadblocks (B) - Heart Attack Puts Succession Planning at Risk case study. Samsung Lee can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Leadership & Managing People industry, but it has also influenced the consumer preferences. Samsung Lee can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Manufacturing automation
– Samsung Lee can use the latest technology developments to improve its manufacturing and designing process in Leadership & Managing People segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Threats Samsung: Family Assets and Roadblocks (B) - Heart Attack Puts Succession Planning at Risk External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Samsung: Family Assets and Roadblocks (B) - Heart Attack Puts Succession Planning at Risk are -
Shortening product life cycle
– it is one of the major threat that Samsung Lee is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Samsung Lee can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study Samsung: Family Assets and Roadblocks (B) - Heart Attack Puts Succession Planning at Risk .
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Samsung: Family Assets and Roadblocks (B) - Heart Attack Puts Succession Planning at Risk, Samsung Lee may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Leadership & Managing People .
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Samsung Lee needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
Regulatory challenges
– Samsung Lee needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Leadership & Managing People industry regulations.
High dependence on third party suppliers
– Samsung Lee high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Samsung Lee.
Easy access to finance
– Easy access to finance in Leadership & Managing People field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Samsung Lee can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Consumer confidence and its impact on Samsung Lee demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Technology acceleration in Forth Industrial Revolution
– Samsung Lee has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Samsung Lee needs to keep up with the evolution of technology in the Leadership & Managing People sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Increasing wage structure of Samsung Lee
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Samsung Lee.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Samsung Lee with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Samsung Lee in the Leadership & Managing People industry. The Leadership & Managing People industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Weighted SWOT Analysis of Samsung: Family Assets and Roadblocks (B) - Heart Attack Puts Succession Planning at Risk Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Samsung: Family Assets and Roadblocks (B) - Heart Attack Puts Succession Planning at Risk needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Samsung: Family Assets and Roadblocks (B) - Heart Attack Puts Succession Planning at Risk is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Samsung: Family Assets and Roadblocks (B) - Heart Attack Puts Succession Planning at Risk is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Samsung: Family Assets and Roadblocks (B) - Heart Attack Puts Succession Planning at Risk is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Samsung Lee needs to make to build a sustainable competitive advantage.
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