Over the past decades, mergers and acquisitions is regarded as a strategic option to enhance organizational performance for many companies. Culture is a major cause of the failure to many M&A but its influences are usually being underestimated. Cultural change is inevitable in any M&A. However, two companies with different culture merge together is not necessary lead to an adverse result. This essay is going to analyze a case of cross-border M&A of Sweden’s Volvo and South Korea’s Samsung in 1998.
Even though people favored the “New Coke”, product, they still didn’t want the company to completely discontinue the original Coke. But the company made a mistake by taking the original Coke off the market and replaced it with new Coke. This decision caused the Coca-Cola Company to lose millions in profit. They decided to discontinue the New Coke product and brought back the original Coke product. From the lessons learned, the company can use secondary research by reintroducing the new coke to the market and use the studies from prior research to improve the
The marketer should conduct a SWOT analysis, by which it evaluates the company’s overall strengths (S), weaknesses (W), opportunities (O) and threats (T) (Kotler 54) This SWOT analysis shows that Tesla has the strengths needed to maintain profitability in the long term. However, it also suggests a necessary strategic reform to ensure Tesla’s competitiveness and long-term success in the global automotive market. As a popular manufacturer of electric vehicles, the company still needs to invest in global expansion. Limited global operations remain a weakness that, together with other issues identified in this SWOT; Tesla must address to achieve international competitiveness and business growth. Strengths Tesla Motors, Inc. is known for its innovation, especially in introducing the world’s first fully electric sports car.
For starters, more than 50% of revenues come from the Japanese market, while the numbers are extremely significant, it’s important for the company not to depend on the Japanese market and build sales elsewhere. The company focused on other large consumers in order expands their brand awareness. External factors challenged the success of the brand in the Japanese market. First, the terrorist attacks from September 11th caused a decrease in sales in luxury goods, which caused the brand to redefine its strategic approach. The second would be the 2008-2009 global economic crisis.
Additionally, driver and customer loyalty which are influenced by online reviews (technology), can dictate the market strength for Lyft. Finally, government regulations for legal services such as taxi services can cause a risk to their investment and create liabilities. The most common threat to Lyft is its strongest competitor in the market Uber. With Uber maintaining dominance, Lyft 's reliable services is outweighed by the Uber 's large market share. According to consumer credit card spending in the US, Lyft owns 21.7% relative market share compared to 78.3% by Uber (Zakrzewski et al., 2017).
The article you cited gives an idea how control is achieved through cross holding: While Samsung Electronics is the biggest business, much of the family’s power stems from Cheil, known until this month as Samsung Everland Inc. The closely held business is the family’s de facto holding company, with direct and indirect stakes in the electronics, finance and trading arms. The other company going public is Samsung SDS Co., a provider of technology services. Cheil, for example, owns 19.3 percent of Samsung Life Insurance Co., which in turn has a 7.6 percent stake in Samsung Electronics. The smartphone maker owns 37.5 percent of Samsung Card Co., which completes the circle through a 5 percent stake in Cheil.
Samsung company apologized to consumers after the scandal and they mentioned about their expectations to increase battery capacity and satisfy the consumers with the new design of Galaxy Note 7. Samsung blamed their suppliers for battery explosion and added to change their suppliers. Risk analysis and risk management were the most important features that a giant company should pay attention to, but Samsung acted as the amateur in this regard during the scandal, and it had deficiencies in this process. In the concept of corporate governance, there are some important topics that need to be handled by the company, such as principles, policies, procedures, responsibilities and accountability. During this scandal, the board did not get enough action.
CASE WRITE UP: “Samsung Electronics Company: Global Marketing Operations” Prepared by: Emilio Ramirez Zuñiga 000126489, Oct 2015 INTRODUCTION In 2000 Eric Kim became head of marketing in SEC. He had a different approach for the marketing strategy. In order o achieve the success he was aiming for, be de 1st in the buisnessweek magazine ranking, they should become a strong, unique and owned brand with great differentiation from the competitors. It wasn’t easy because the strategy and culture they used to have was different and some managers weren’t comfortable with the changes. After 4 years of Eric being in charge of the global marketing operations Samsung has improve in their corporate marketing program and was now in the 25th place of
And it focused on high-quality products that are made and resources invested in the continuous research and development to gain access to the benefits of new products is always high and always quality. In one of the stories told on the subject of quality that after gave Samsung the Director of the South Korean president a cellular and emerged as some manufacturing defects very simple, was the reaction of the Director that he burned the entire productive installment of which was the 25 thousand sets in front of the eyes of the workers, and this position has had a the impact of significant myself to have a confirmation of the company's commitment to the highest possible quality in accordance with the criteria you specify. Commitment to
Strategic Position and Action Evaluation) helps to explain an organization’s strategic position and the possible action that can be taken. The four quadrants of matrix are created that are internal dimensions (financial strength and competitive advantage) and external dimensions (environmental stability and industry strength). (Campbell, Edgar & Stonehouse, 2011) BCG Matrix This Boston Consulting Party (BCG) matrix is often a concept that assesses strategic business units with regards to the dimensions of business growth and market place share. (Daft & Daft, 2008) Samsung is the large corporation it is difficult to identified, because it has small business involve with it also and each small business has different units. Therefore, to identify the BCG of Samsung it need to know the following things: • Analyze the position in the present, critical analyze the relevant market share and especially the product life cycle which Samsung in.