Corporate Venturing In Samsung

Corporate venturing is a practice that a company sets up a separate organizational unit, which called corporate venturing unit (CVU), to invest in new technological and business opportunities arising within or outside the boundaries of the firm, for long-term strategic or short-term financial purposes.

Samsung Electronics, a Korea technology company, is an example of corporate venturing as the company are produce microwave ovens and TV but it start to produce cell phone after learn the low-cost skills and technology from Japan in 1990s. Another example of corporate venturing is 3M Corporation, a multinational conglomerate corporation that have a product line of electronic products and cleaning products when it formerly only produce stationary

There are two types of structure of company, which is organic organisational structure and mechanistic organisational structure. Organic organisational structure is a flat structure that has easy to communication and information flow, employees work together and coordinate tasks, and it is decentralise. While mechanistic organisational structure is a complex structure that has a complicated up to down communication and information flow, employees work separately and specialize in one task, and it is centralise. This complicated communication and information flow may take long time to transfer and cause the spread of wrong information when the company are a large

The “15% rule” of 3M is to encourage employees spend 15% of his or her time to develop a new idea. This is a good practice for the company to develop an innovative country and build a good relationship with employees.

Both Apple and Google are facing the problem of the rise of competition and substitute. The launched of small phones from Samsung, Huawei and others create more choices for the customers, thus, the customers of Apple may switch to these competitors but it mitigate this issue by its own system iOS and brand name to create customer loyalty. Google are facing the competition from Facebook as this social media provide the advertising services which is low price than Google but it is sustain as it provide many other services to the customers.

The leadership of Steve Jobs also successfully developed Apple Inc. to become a well-known electronic product brand as he give a correct direction to the employees to focus only on a product. Rather than other companies that focus on the profit, he has more focus on specifying the computer’s abilities, also as a motivation for his employees to make innovative