Main menu

Skip to primary content

Skip to secondary content

Samsung Organizational Structure: Divisional according to Product Types

Posted on November 20, 2017 by John Dudovskiy

Samsung organizational structure is divisional and the company is divided into three key divisions: IT &
Mobile Communications (IM), Consumer Electronics (CE), and Device Solutions (DS). The rationale
behind the choice of divisional organizational structure relates to Samsung’s large product portfolio and
differences between products and services the company offers to the market.

Accordingly, Samsung’s each division is managed separately taking into account the characteristics of
their products that have implications on new product development, marketing, selling and other aspects
of the business. Moreover, Samsung Electronics has more than 200 subsidiaries around the world.

Figure below illustrates Samsung organizational structure:

Samsung Organizational Structure

Samsung organizational structure

As it is illustrated in figure above, apart from three divisions, Samsung organizational structure also
integrates corporate management office and Samsung Advanced Institute of Technology (SAIT).
Corporate management office deals with overall management of the group and also has administrative
responsibilities. SAIT is Samsung Group’s R&D hub, established as the incubator for the development of
new products and services.

The senior management completed its review of optimal organizational structure on April 2017 and
decided not to convert to a holding company structure.[1] Following a series of recent scandals involving
Samsung management that culminated in Jay Y. Lee, the former de facto head of the Samsung
conglomerate being jailed for 5 years[2], it can be argued that Samsung organizational structure will
change in the foreseeable future. Specifically, Samsung organizational structure may change to make
governance and decision making practices more transparent to eliminate or at least to reduce the cases
of future scandals.

Samsung Group Report contains a full analysis of Samsung organizational structure. The report illustrates
the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL,
Porter’s Five Forces, Value Chain analysis and McKinsey 7S Model on Samsung. Moreover, the report
contains analyses of Samsung leadership, business strategy and organizational culture. The report also
comprises discussions of Samsung marketing strategy and addresses issues of corporate social
responsibility.

Samsung Group Report

[1] Samsung Electronics Completes Review of Optimal Corporate Structure (2017) Samsung Newsroom,
Available at: https://news.samsung.com/global/samsung-electronics-completes-review-of-optimal-
corporate-structure

[2] Stone, B., Kim, S. & King, I. (2017) “Summer of Samsung: A Corruption Scandal, a Political Firestorm—
and a Record Profit” Bloomberg, Available at: https://www.bloomberg.com/news/features/2017-07-
27/summer-of-samsung-a-corruption-scandal-a-political-firestorm-and-a-record-profit

This entry was posted in Management. Bookmark the permalink.

Join Our Newsletter

Change (7) Company Profiles & Analysis (63) Consumer Behaviour (20) Corporate Social Responsibility
(40) Culture (28) Customer Services (14) E-Commerce (21) Economics (41) Finance (27) HRM (64)
Industry Analysis (17) International Business (31) Leadership (50) Literature Review (39) Management
(94) Marketing (148) Personal reflection & development (20) PEST Analyses (34) Politics (19) Porter’s Five
Forces (32) Strategy (92) SWOT Analyses (35) Value-Chain Analysis (27)

About US Terms and Conditions Contact

2018 © Necessary knowledge to conduct a business research