Samsung Electronics Co Ltd (NYSE:SSNLF) tries to reinvent

631

By Thomas Copeland on August 11, 2014 Technology & Software

Samsung Electronics Co Ltd (NYSE:SSNLF) became so popular globally due to its focus and rigor. The company is now on the brink of a change – the leadership succession to the next generation is coming ever so close. Moreover, the smartphone market has become increasingly competitive and the company’s sales are now stuttering in the smartphone market. Samsung Electronics Co Ltd (NYSE:SSNLF) is looking for reinvention and innovation.

In an effort to make the working environment friendlier, the company allowed its staff to wear casual clothes, i.e. shorts, to work, in the Suwon campus near Seoul, on the weekends. The working hours were made more flexible for the employees. The female employees were allowed to take maternity leave when necessary without fussing over their job security. Samsung Electronics Co Ltd (NYSE:SSNLF)’s flagship setup in Southern Korea comprises of various people from different cultures. The company is trying to tackle some of the rigid principles that have become an important part of the corporate world of Korea, so that more culture can be brought into the working environment and to ensure that all the employees are happy. For a long time, drinking sessions, late into the night, were an important part of office life. The employees were often forced to attend. Such sessions will no longer be held. An employee informed the media that from now on, the company outings will have the employees gathered in one place till 9 pm at most. He also added that the senior staff will take care not to upset the subordinates who will not be forced into attending the company outings.

In the last month, Samsung Electronics Co Ltd (NYSE:SSNLF) posted its earnings for the second quarter which were surprisingly low. The company’s share in the smartphone market declined sharply and there was no obvious way out of this decline. The two factors contributed to reduced earnings in this quarter. Meanwhile, the 72 year old chairman of the company, Lee Kun-he, is still in the hospital after his heart attack in May. His son, Jay Y. Lee, who received his education at Harvard, is an obvious heir to the throne. He may introduce some fresh perspective in the company but it would be an immense task to change the wholesale operations of the company. Former product manager, Jay Subhash said that it is very difficult for Samsung Electronics Co Ltd (NYSE:SSNLF) to change is culture. He also said that the company is in dire need of change and adopting a more flexible and innovative way forward. However, bringing about such a change would mean that the company has to alter its hierarchy, which has proved the biggest asset in its success. This militaristic hierarchy is what allows the company to operate at a speed that enables it to overtake its competitors.

For a long time, Samsung Electronics Co Ltd (NYSE:SSNLF) has emphasized the significance of creativity and innovation. It operates in versatile markets and hires foreign personnel. The company also ensures that the employees don’t spend unnecessary time in the office to increase productivity.