Reddit reviews The Samsung Way: Transformational Management Strategies from the World Leader in Innovation and Design
We found 3 Reddit comments about The Samsung Way: Transformational Management Strategies from the World Leader in Innovation and Design. Here are the top ones, ranked by their Reddit score.
Here is the full story
>Big conglomerates often face a choice between using internal and external suppliers. Suppose, for example, that Acme Corp. is building a cell phone and has to decide whether to use a screen created by Acme’s screen division or by an external supplier. There’s an advantage to both approaches: Using an internal supplier can allow for tighter collaboration and more learning on each side of the relationship, but there’s a danger that having a captive customer will make Acme’s screen division lazy.
>Since the early 1990s, Samsung has taken an unusual approach: Use both an internal and an external supplier at the same time. When Samsung builds a new cell phone model, it will ship some units with Samsung-made components — screens, memory chips, batteries, and so forth — inside, and others with units supplied by third parties.
>“Samsung affiliates do not receive special treatment when making deals with other Samsung affiliates,” wrote scholars Jaeyong Song, Kyungmook Lee, and Tarun Khanna in a deeply researched 2016 paper on Samsung’s culture. “They must be prepared to lose out to external suppliers if they are not competitive in quality, price, or time to delivery.”
>Employees at the most successful divisions got bonuses that represented as much as 50 percent of their base salaries. Conversely, Samsung had a policy that “any business that incurred losses for three straight years (excluding new businesses) should be sold or liquidated,” Song and his colleagues wrote.
source
If you are interested in more things like this then I recommend the book The Samsung Way.
I recommend this book for those who want to know about the unique business strategies some of korean chaebols used to achieve an extremely diversified portfolio without sacrificing diseconomies of scale
I recommend the book The Samsung Way This is the real deal.
Seriously entertaining. Chaebols create their own drama.