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  1. page Global Manufacturing edited ... {samsung-logo.jpg} Case Study: Samsung's Global Manufacturing According to Samsung Village…
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    {samsung-logo.jpg}
    Case Study: Samsung's Global Manufacturing
    According to Samsung Village (2012), Samsung is a major Global brand in the technology sector. The company was founded in January 1969 by Byung-Chull Lee. In 1970 they successfully produced 12 inch black and white TV’s and after two months of production started on the way to globalisation with exports to Panama.The merger of Samsung Electronics with Samsung Semiconductors in January 1980 helped create synergies in production for both business again demonstrating how global manufacturing trends are beneficial for business. At this point in the company’s history this approach was very much seen as a new trend in business. The company has continued along it’s successful path as in the first quarter of 2015 it sold 83.2 million smartphones globally (Gibbs, 2015). Samsung clearly embrace the trend for global manufacturing with 10,700 employees worldwide. Unlike many companies who manufacture only in the Far East/Asia , Samsung have two distinct manufacturing lines in very different parts of the globe. The first facilities which are for front end production are based in Korea and Austin, Texas, whilst the second facilities which are for assembly and testing are based in Korea and China (Samsung).
    As mentioned previously the majority of companies tend to adopt the trend of outsourcing manufacture of either components or finished product to Asia. However, according to Cruickshank (2015), Samsung have recently announced plans to expand manufacturing into Africa. This clearly demonstrates a new trend in global manufacturing due to fact that the new plants will not only manufacture networked devices for the so called “Internet of Things” but they will help to build the region’s digital economy. This differs from traditional global manufacturing trends in that the contribution to the development of a new economy in the form of a “digital economy” differs from the standard provision of jobs seen previously (Cruickshank, 2015). Therefore, from it’s beginnings in 1969 Samsung has grown to become the world’s largest smartphone manufacturer and its information division serves as the world’s largest information technology company. To ensure that they keep this competitive edge, Samsung announced that they are planning to open a state of the art display factory in Vietnam in 2015 (Philips, 2015). This clearly demonstrates that they are ahead of the curve in adopting this new trend in global manufacturing along with Nokia and Intel by moving to Vietnam (Lee and Folkmanis, 2013). The move will help profit margins and also open up other markets for Samsung.

    Conclusion
    Global manufacturing has become a new trend encouraging successful businesses to thrive, by creating a global manufacturing base it not only allows the firm to have a competitive advantage but it also looks to increase profits as it focuses on decreasing costs in order to pursue profits. However this exploitation of global manufacturing may have an adverse affect if the exploitation is too critical, meaning the company doesn’t try to invest and inspire the local environment and economy where they have set up their new business venture. There are many concerns that a firm can come across whilst setting up in a foreign country but with time and an allotted effort these problems can be overcome in a way that it helps the local economy and the firm’s strategic objectives. The main problem for firms looking to invest in a foreign country is being able to control and maintain quality as if the foreign plant cannot replicate the quality of the original product, costs will increase and profits will drop. So to conclude the relevance of global manufacturing to the business world of today is becoming increasingly important as the trend to start foreign manufacture is increasing as it gives a competitive advantage over the competition in the market as the firms able to lower costs, allowing them to undercut competitors.
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  2. page Global Manufacturing edited ... Worthington, I & Britton, C (2006). The Business Environment. 5th ed. Essex: Pearson Educa…
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    Worthington, I & Britton, C (2006). The Business Environment. 5th ed. Essex: Pearson Education Limited. P391-393
    Added References:
    Cruickshank, M. (2015) The Manufacturer: Samsung to expand African Manufacturing. [Online]. Available from: http://www.themanufacturer.com/articles/samsung-to-expand-african-manufacturing/ [Accessed: 10/08/2015].
    Gibbs, S. (2015) The Guardian: Samsung back on top as World’s biggest smartphone manufacturer. [Online]. Available from: http://www.theguardian.com/technology/2015/apr/29/samsung-worlds-biggest-smartphone-manufacturer [Accessed: 10/08/2015].
    Lee, J., Folkmanis, J. (2013) Bloomberg Business: Samsung Shifts Plants from China to Protect Margins. [Online] Available from: http://www.bloomberg.com/news/articles/2013-12-11/samsung-shifts-plants-from-china-to-protect-margins [Accessed: 10/08/2015].
    Phillips, A. (2014) The Manufacturer: Samsung to Open $375M Manufacturing Plant in Durban, South Africa. [Online]. Available from: http://www.manufacturingglobal.com/leadership/112/Samsung-to-Open-375M-Manufacturing-Plant-in-Durban-South-Africa [Accessed: 10/08/2015].
    Samsung. Samsung: Business Overview: Factsheet. [Online]. Available from: http://www.samsung.com/global/business/semiconductor/aboutus/business/factsheet [Accessed: 10/08/2015].
    Samsung Village (2012) Samsung Village: The Success Story of Samsung Electronics: How It All Began. [Online]. Available from: http://www.samsungvillage.com/blog/2012/06/01/samsungblog-the-success-story-of-samsung-electronics-how-it-all-began/ [Accessed: 10/08/2015].

    Additions
    New trends of global manufacturing
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  3. page Global Manufacturing edited ... Security – many foreign countries with low labour costs have security problems due to corrupti…
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    Security – many foreign countries with low labour costs have security problems due to corruption and underdeveloped systems to where general crime is at a high rate, mainly because the instability in the economic climate.
    Time – offshoring can take time to start as labourers need to be trained and finding the correct facilities and area is no easy task.
    {samsung-logo.jpg}
    Case Study: Samsung's Global Manufacturing

    Conclusion
    Global manufacturing has become a new trend encouraging successful businesses to thrive, by creating a global manufacturing base it not only allows the firm to have a competitive advantage but it also looks to increase profits as it focuses on decreasing costs in order to pursue profits. However this exploitation of global manufacturing may have an adverse affect if the exploitation is too critical, meaning the company doesn’t try to invest and inspire the local environment and economy where they have set up their new business venture. There are many concerns that a firm can come across whilst setting up in a foreign country but with time and an allotted effort these problems can be overcome in a way that it helps the local economy and the firm’s strategic objectives. The main problem for firms looking to invest in a foreign country is being able to control and maintain quality as if the foreign plant cannot replicate the quality of the original product, costs will increase and profits will drop. So to conclude the relevance of global manufacturing to the business world of today is becoming increasingly important as the trend to start foreign manufacture is increasing as it gives a competitive advantage over the competition in the market as the firms able to lower costs, allowing them to undercut competitors.
    ...
    Wernerfelt, B. (1984). A Resource-based View of the Firm. Strategic Management Journal. 5 (2), p171-180.
    Worthington, I & Britton, C (2006). The Business Environment. 5th ed. Essex: Pearson Education Limited. P391-393
    Added References:
    Additions
    New trends of global manufacturing
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  4. file samsung-logo.jpg uploaded
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  5. page Knowledge Management edited {Joanne work 2.jpg} Introduction How might the managers of an organisation manage successfull…
    {Joanne work 2.jpg}
    Introduction
    How might the managers of an organisation manage successfully the many sources of knowledge that it contains and be in a position to make good use of them? This is a key question for the process of knowledge management. For Nonaka (1994), the answer to this question is to be found in the manner in which an organisation manages the relationship between its sources of explicit and tacit knowledge and converts one type of knowledge into the other type.
    What is Knowledge Management?
    According to Zhang et al. (2015), Knowledge management (KM) is, “A set of organisational activities [for] achieving organisational objectives by making the best use of knowledge” (2015). Therefore, knowledge management involves a specific organisational culture which is made up by exchanges of knowledge, in a hierarchal manner, within the organisation via people, processes, technology or cultures (Zarzu and Scarlat, 2015). The successful movement of knowledge within corporations creates the correct environment for people to learn in, and can be used to improve organisational performance, build innovation through utilising it in new products, and create competitive advantage through enabling activities that create value (Fotache, 2013; Zarzu and Scarlat, 2015). Knowledge management is also critical to effective leadership due to its link with cultural beliefs, values and norms(Zarzu and Scarlat, 2015). {knowledge-management.jpg}

    Knowledge Conversion
    What Nonaka is recommending is that organisations need to develop processes to ensure that one type of knowledge can be converted into the other type. There are four processes:
    ...
    Figure_1.gif
    The chart above, I believe, shows clearly how the two types of knowledge can be changed. The source can be seen above.
    {Joanne work.jpg}
    Social Knowledge Management - a new trend
    Social knowledge management is increasingly being adopted by forward thinking companies, who are implementing a knowledge management tool via social media platforms such as wikis, intranets and blogs, as this is seen to improve learning at both an organisational and individual level, thus facilitating training and development goals (Zhang, et al., 2015; Behringer and Sassenberg, 2015; Eissenhauer). This is because it enables the movement from e-learning, through emails which are organisation’s main source of communication, to social learning (Zhang et al, 2015; Eissenhauer). The movement away from email into social knowledge management is beneficial as email is restrictive when it comes to knowledge sharing within organisations, however social media tools offer widespread activity feeds and message streams, enabling a faster transfer of knowledge (Eissenhauer). Behringer and Sassenberg (2015) state that social media tools, used for the assistance of knowledge management are often, “Adjusted to the organisation’s context and additionally enriched by experience with existing intra-organisational tools” (2015). An example of a company which makes use of social knowledge management through an intranet is the National Trust, who filter knowledge regarding all of their heritage sites and disseminate it to all employees, thus enabling them to provide a better service to their customers.
    Why is Knowledge Management important to business today?
    Knowledge management is vital for business success as well as being an important strategic challenge towards achieving competitiveness, especially due to the frequency with which employees are changing jobs steadily increasing (Behringer and Sassenberg, 2015). Quast (2012) agrees with this view by arguing there are three key reasons as to why organisational success relies on knowledge management, these being that KM, “1.) Facilitates decision-making capabilities, 2.) Builds learning organizations by making learning routine, and 3.) Stimulates cultural change and innovation” (2012).

    Challenges
    Noon and Blyton (2007) define knowledge management as ‘the processes through which managers try to acquire the ideas, judgement and creativity of those intimately involved in the work and develop this as explicit knowledge.’ As we’ve just discussed, Nonaka’s ‘spiral of knowledge creation’ is one way of conceptualising how this might occur.
    ...
    Nonaka, I (1994) ‘A Dynamic Theory of Organisational Knowledge Creation’, Organization Science, Vol.5, No.1
    Noon, M and Blyton, P (2002) The Realities of Work: Basingstoke, Palgrave
    Added References:
    - Behringer, N., Sassenberg, K. (2015) ‘Research Report: Introducing social media for knowledge management: Determinants of employee’s intentions to adopt new tools’. Computers in Human Behaviour. 48: 290-296.
    - Eissenhauer, T. Axerosolutions: What are the Benefits of Social Knowledge Management Software. [Online]. Available from: http://axerosolutions.com/blogs/timeisenhauer/pulse/188/what-are-the-benefits-of-social-knowledge-management-software [Accessed: 10/08/2015].
    - Fotache, G. (2013) ‘Comparative Study Regarding Information Management and Knowledge Management’. Economy Transdisciplinatory Cognition. 16(2): 63-70.
    - Quast, L. (2012) Forbes: Why Knowledge Management Is Important To The Success Of Your Company. [Online] Available from: http://www.forbes.com/sites/lisaquast/2012/08/20/why-knowledge-management-is-important-to-the-success-of-your-company/ [Accessed: 10/08/2015].
    - Zarzu, C., Scarlat, C. (2015) ‘Knowledge Management for Knowledge Development Lessons Learnt while Implementing International Projects by Multicultural Teams’. International Journal of Management Cases. 17(4): 221-231.
    - Zhang, X., Gao, Y., Yan, X., de Pablos, P., Sun, Y., Cao, X. (2015) ‘From e-learning to social learning: Mapping development of studies on social media-supported knowledge management’. Computers in Human Behaviour. 51(B): 803-811.

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