Failure Analysis Essay

Team D will analyze the organizations Samsung Electronics Company (SEC) and Research In Motion – Blackberry (RIM). The study will analyze in depth the success of Samsung and the failure of Blackberry. The paper analyzes how Samsung evolved into one of the largest conglomerates in the world during the past decade the demise of Blackberry and how the company failed. Vision and Mission Statement Samsung Vision Statement, The vision of SAMSUNG Electronics is â€Å"Leading the Digital Convergence Revolution† (Samsung, 2013, p. 1). Mission Statement â€Å"To experience the joy of advancing and applying technology for the benefit of the public† (Samsung, 2013, p. 1.). Established in 1938, Samsung has gone thru many changes. During its various changes, Samsung continues to modify its mission statement according to its own change and to new developments globally. â€Å"Economic contribution to the nation† â€Å", Priority to human resources† â€Å" Pursuit of rationalism† are slogans that represent important moments in Samsung’s history. The organization has grown from a national leader to a worldwide consumer leader. The constant fluctuation in the global economy, competition, and operations, Samsung transformed its mission statement in 1990. According to Samsung’s philosophy, â€Å"We will devote our human resources and technology to create superior products and services, thereby contributing to a better global society† (Samsung, 2013, p. 2.). The organizations attitude is a representation of its determination to contribute to the success of people globally. Key factors for Samsung is the dedication, creativity, and talent of its employees. The strong leadership and team support has made endless opportunities for new technology and achieving higher standard of living globally. Leadership at Samsung believe its success is due to its contribution to people worldwide and to the shared prosperity between national boundaries worldwide. This determines how they manage their  company. The objective for Samsung Electronics is to generate the future with its consumers. SEC can be considered as one of very few companies that â€Å"manage to go beyond mere imitation of global competitors, leverage resources, accelerate the pace of organizational learning and manage to attain seemingly impossible goals† ( Hamel and Prahalad, 1989). Vision and Mission Statement Blackberry vision statement, â€Å"Blackberry aims to be the premier center for management development excelling in developing managers of tomorrow; strengthening management capabilities and facilitating policy options to meet emerging challenges†. (Blackberry, 2013, p.1.). Mission statement, â€Å"To develop socially and professionally responsible and proactive managers and leaders with holistic perspectives and competencies.† (Blackberry, 2013, p.1.) In realizing the above vision and mission, RIM focuses on the following strategic areas: In 1994, Blackberry (RIM) was created. The organization is located in Waterloo, Ontario Canada. Other locations include Europe, United States, Mexico, and Asia Pacific. Blackberry lead the design, fabrication, distributor of its wireless solutions for the global cellular communications market. The creation of combined software, services, and support, Blackberry provided solutions for email, cell phone, SMS, MMS, Intranet, and Internet applications â€Å"The beauty of this device was that users could do all of these functions even as they were striding down the sidewalk, far from any desktop computer† (Kim, 2008). . The organization provided services for Civil Service, local governance, and the private sector. This enabled Blackberry to strengthen and develop into a strong financial, self-supported Institute. The downfall of Blackberry began on January 9, 2007, with the introduction of the iPhone. Apple sold a million iPhones the first week of its release, signaling the era of the smartphone. In a conference call on March 29, 2012 CEO Thorsten Heins stated, â€Å"It is now very clear to me that substantial change is what RIM needs,† (All Thing D, 2012, p. 1.). The CEO is creating something Blackberry has not had for a long time, a vision. . â€Å"We believe that BlackBerry cannot succeed if we try to be everybody’s darling and all things to all people†, (All Things D, 2012, p. 1.). It might be too late but  the organization will undertake a complete review analysis of the way the company operates. Leadership style, management, organizational structure, and culture Samsung Electronics is a worldwide organization with nearly 160,000 employees and operates in countries worldwide. Samsung is devoted to having a healthy organizational culture. It believes that ethical management is not only a tool for responding to the rapid changes in the global business environment, but also a vehicle for building trust with its various stakeholders, shareholders, customers, partners, employees, and local communities around the world. Samsung’s aim is to become one of the most ethical companies in the world that is respected by its stakeholders, Samsung Electronics continues to train its employees and operate monitoring systems, while practicing fair and transparent corporate management. Samsung has established a good and safe working environment for its personnel, this improves employee morale and productivity and commitment to the organization. Employees respect all workers despite the positions they have. Workers and leaders have a good relationship that allows both side to work together on workers grievances relating to their work environment. The relationships between the workers and leaders are interactive and workers grievances relating to their working environment and other labor related issues work well. Workers at Samsung will respect all workers despite the roles they play. CEO Kwon Oh Hyun is a commanding leader, almost militarist in leading. In South Korea, this style of leadership is very effective; unlike in the United States a commanding leader for a non-military organization would be ineffective. Kwon Oh Hyun is direct, takes tight control, very demanding, disciplined, and demands immediate compliance within the company, from top to bottom. It is difficult to recognize what leadership style is within Blackberry. What has brought Blackberry to its demise is not having a clear vision from its upper executives. Their leaders had no sense of direction to innovate the organization. Blackberry ten years ago was a leader in the cellular business. Customers who owned a blackberry phone felt important, celebrities, Wall Street investment bankers. Today Blackberry is at jeopardy on becoming obsolete. Blackberry made some critical mistakes, which put the organization in jeopardy. The organization  disregarded the iPhone until it was too late. Prior CEO Lazaridis â€Å"told his employees that no one would buy the iPhone because customers did not want a personal computer on their cell phones.† (Forbes, 2011, p. 2.) Blackberry promoted a culture of unwillingness and closed communication. Upper executives did not want to listen to ideas from below. Additionally, a critical mistake was waiting too long to innovate new products into their product line. Their current product line is a big dinosaur and still look much like their first phones. To further trouble Blackberry, two major outages occurred on April 2007 and again in February 2008, each outage lasted for a few days. Leading Organizational Change Team D would use the Kotter’s Eight Steps Detailed guidance for managing change. First major change is to establish a sense of urgency, in order to create a compelling reason for change. The compelling reason for change is to seek new ways of innovation. Keeping up with the global rapid change in the telecommunications, industry is vital. [Change process theories describe a typical pattern of events that occur from the beginning of a change to the end, and in some cases they describe how earlier changes affect subsequent changes. The theories may identify distinct phases in the process, stages in the reaction of individuals, or effects of repeated changes on people.] (Gary Yukl, 2013, p. 1.) In order to keep Blackberry competitive with the market, the organization must find new products to introduce into the market. Introducing a new lineup of products such as new cell phone models is vital for the company to compete with its competitors. The sense of urgency is creating and updating our products in time to keep up with the competition. The team would create a coalition between upper management to establish the new change for blackberry. The coalition between top executives would facilitate the introduction of the new strategy into our new business plan. A major priority for blackberry and its top executives is to create a clear vision for the upcoming change of the organization. The next hurdle is to widely open up communication barriers and simplify the communication between upper management on down. Blackberry will promote a culture of open communication and willingness for all its employees. The open communication will enable the organization to communicate the vision throughout the company. Good communication will help the organization with employees who resist change. Communication between upper management and employees will help give a clear vision of the change. Inadequate communication will give employees a sense of false information for example believe that change is not feasible, fear of personal failure, loss of status, and economic threat. The CEO will empower other managers to act on the vision by encouraging risk-taking and removing barriers to help solve problems. The new plan will take two years to implement. The action plan will include short-term goals that move blackberry toward the new vision. The change will allow upper management on down to consolidate improvement. All management reassess all changes to include analytical information, the consolidation improvements will allow the organization to make any necessary adjustments in the new programs. All management will have to lead by example and demonstrate the success of the cultural change. The new plan will reinforce the changes by demonstrating the relationship between the new behaviors. The leadership styles will be between transformational and visionary leadership. These leadership styles will inspire the conviction of the new vision and will give blackberry a clear direction to succeed in the new change. Transformational leadership will inspire and develop empowering focus on the new plan. Conclusion During significant change to a company’s structure and strategies, personnel can experience high levels of stress on the job. Prior to executing the strategies, organizations must empower employees to adopt the role of change and encourage them to take action to solve the problems that stresses them. A large piece of the puzzle is communication between upper management on down. Personnel need to feel that they are empowered during the phase of the change. Although few organizations fully acknowledge their role in helping employees, cope with change. Individual reactions to change your complex and most experts agree that people tend to be uncomfortable with change; employees do not want to depart from their comfort zone.