Samsung Surveillance of Intellectual Capital Strategy (Essay Sample)

SAMSUNG: SURVEILLANCE OF INTELLECTUAL CAPITAL STRATEGY
Student Name
Institutional Affiliation

SURVEILLANCE OF INTELLECTUAL CAPITAL STRATEGY
Introduction
Samsung began in 1938 as a general store in Kyungsang province in Korea. In 1950, it produced basic commodities like sugar and wool. However, in 1958, it diversified its operations into insurance providence by incorporating the local fire and marine insurance to its portfolio. In 960, the business endeavored to utilize international markets by producing and marketing paper and fertilizers. It later expanded into the communication business by including newspapers and broadcasting services. It has built facilities in the US, UK and many European countries like Portugal (Waelde, 2013).
Samsung is a South Korean electronics business. It is one of the largest producers of electronics. Lee Byung founded the Samsung electronics in 1969; however, the company started operations in 1938 as a trading company comprising of food processing, textile manufacturing, insurance, securities, and retail. The business consists of allied branches and subsidiaries such as the construction and ship building industry that began to operate in 1972. Following the death of its founder, Samsung increased its products and service range to comprise of the Samsung group, Shinsegae group, the CJ group, and the Hansol group. The Samsung electronics is one of the biggest information communication and technology companies in the world. The Samsung electronics deal in the manufacture and design of electronic devices like smart phones, laptops, television sets, washing machines, cookers, kitchenware, home theatre systems, computer gadgets, TFT, LCD screens, and monitors (Waelde, 2013). The Samsung heavy industries deal in construction and design of ships. It is the second largest shipbuilding industries in the world. In South Korea, the Samsung Group helps the country to generate a fifth of their total exports to other nations (Waelde, 2013).
Samsung has established itself as a leading producer of electronics with branches in more than 60 countries across the globes and 180,000 employees. This paper sheds light into its intellectual property and its worth. The company aims to acquire global leadership in the industry and secure a competitive advantage in harmonizing research and development with marketing and sales. This company is famous for the production of semi-conductor memory chips. The business seeks to spread its financial resources across all its branches to ensure it maintains a high position in production of electronics and electronic devices.
Its chairperson has been Kun-Hee Lee since 1987 following the death of its founder. Its headquarters is in Seoul (Waelde, 2013). Their global operations comprise of 285 offices and have facilities in 67 countries. Its main business sectors are electronics, finance, and trade and services. The company comprises approximately 180,000 employees worldwide. The number of listed companies within the group is 14. The listed companies include Samsung Electronics Company, Samsung SDI Company, Samsung electro-mechanics Company, Samsung Techwin Company, Samsung fine chemicals, Samsung fire and marine insurance company, Samsung Securities Company, Samsung Corporation, Cheil industries, the Shilla hotels and Resorts Company, the Cheil communication, and the SI Corporation (Waelde, 2013).
Justification of the selection of the business organization
Samsung provides a good company to survey its intellectual capital strategy due to its global market share and the numerous subsidiaries and affiliate business under the Samsung brand. The company has a rich background dating from the early 90’s. The company incorporates the latest marketing and financial strategies to ensure that it survives the tides of time (Song, 2015). Its wide range of intellectual property provides a wide rank of information required to analyze intellectual property and capital strategies to help boost its present and future market shares. The past of the company provides the blueprint for the survival in the future. Its rich history entails the past records of strategies employed to ensure its brand as a leading producer in electronics globally and a vast amount of information regarding intellectual capital (Jin, 2011).
Analysis of the Samsung intellectual property
Since its conception, the Samsung Company has accumulated bundles of knowledge and capabilities unique to enterprises, learning, and experience. These stocks refer to the company’s intellectual properties that comprises of human structural and relation capital that belongs to the employees, the organizational procedures, and relationships with customers, suppliers, distributors, and business partners. The overall intellectual property continuously grows with each new learning experience the business exposes itself to depending on the various levels of learning at the individual level, work group level, the organizational level, and the networks the company is a part (In Chilton, 2014).
The company has implemented various measures to ensure a growth in its knowledge. Such measures include sharing the company’s explicit knowledge, developing cross-functional teams that integrate and access the vast knowledge of its members, creating enabling conditions to perpetrate organizational knowledge and reproducing the organizational routines across its branches globally. Other measures include, bringing together the exploitation and exploration as aspects of research and development that are complementary to the knowledge of the business and measuring the intellectual assets of the business (Waelde, 2013).
Innovation model
The Samsung Company seeks innovation on its models based on research and development, the design, brand marketing and corporate citizenship.
The Samsung research and development
The research and development is fundamental in innovation, which aids the business in creating technological standards and inventing the industry for the future. Employees involved in research and development comprise of 45,000 employees. The company calculates the ratio to comprise of a fourth of the total human resources available. The research and development teams are responsible for generating and growing their products. The company consists of 16 research and development centers in every continent. These centers help in creating leading technologies in digital media, telecommunications, digital appliances, and semi-conductor memory chips. In 2013, the company invested KRW 8.5 trillion in R&D, which is 7 percent of their total revenue (In Chilton, 2014). This amount of investment rises consistently through the years. The Samsung Company collaborates with institutions of higher education across the globe by creating award programs and scholarships to support in their pursuit of better education standards. The company is always in need of a top-notch labor resources and it easily acquires them by working in close relation to institutions. The company embraces student science projects that facilitate the development of new innovative ideas. The company then sponsors the implementation of such science projects. Examples of these scholarships programs include Samsung American Legion Scholarship, the Samsung global Scholarship program, Samsung Dream Scholarship foundation, and Samsung Engineering program (Butterworth-Heinemann, 2009). The students benefit by finding employment and internship opportunities with the firm. The research and development teams also engage in scholarship programs to educate them on the current trends in technology. This helps build a competent human resource with skills that facilitate the renovation and implementation of new strategies for future consumption(Waelde, 2013).
Samsung design
Samsung comprises of seven design centers in Shanghai, Tokyo, Milan, London, Seoul, Los Angeles, and San Francisco. The design of Samsung products helps the company to maintain a strong grip of intellectual properties by creating plans that aid in development of electronics and their systems. The design team guarantees a constant supply of new products in the market annually that distinguishes them from their competitors. The main corporate design center is in Seoul, and the virtuoso design team in London, San Francisco, Shanghai, Tokyo, Milan, and Los Angeles (Waelde, 2013). The design teams looks at functionality and the aesthetic need of a product before implementing its recommendations in product and service design. The company consists of an international network of design centers that help in developing products for their local and international markets. The design centers seek to evaluate local cultures, living patterns, lifestyles, and trends to create the best innovative technologies. The company ensures that the position of the design centers is strategic to increase penetration into the market and to satisfy the needs of the customers (Waelde, 2013). The design teams works in close collaboration with institutions to encourage their propositions of new design features that meet the desires of the customers. Samsung encourages students to advocate appropriate design structures that in turn help the company to maintain unique products in its local and international markets and to aid the students in their endeavors.
The Samsung brand marketing
The Company ensures that the value of the products and services it presents to its clients are both effective and efficient. The Samsung brand marketing engages the financial and operational aspects to ensure that its products meet the value advertised. Samsung guarantees the identity of the products through labeling, evaluating new trends in costing, analyzing the reaction of competitors to its products, and carrying out research and development to ensure a large market share (Waelde, 2013...