Activity 1: Let's Get Started! (Warm-up)
- What comes to mind when you hear 'Samsung'? How has it changed technology or daily life?
- Samsung started as a trading company. What challenges did early diversified businesses face?
- Beyond electronics, what makes a company a global powerhouse today?
Activity 2: New words and phrases
Let's explore some key terms and phrases related to technology, diversification, and the founding story of Samsung. Understanding these will help you discuss the topic more effectively.
1. Diversified conglomerate (noun phrase): A large corporation made up of a number of different, seemingly unrelated businesses.
Example: Samsung evolved from a trading company into a highly diversified conglomerate with interests in many sectors.
2. Electronics manufacturing (noun phrase): The process of producing electronic components and devices.
Example: Samsung's entry into electronics manufacturing marked a significant shift in its business strategy.
3. Research and development (R&D) (noun phrase): The investigative activities a business conducts to improve existing products or create new ones.
Example: Samsung invests heavily in R&D to stay at the forefront of technological innovation.
4. Global market share (noun phrase): The percentage of total sales in a specific product category or industry that a company holds worldwide.
Example: Samsung has achieved significant global market share in smartphones and televisions.
5. Brand perception (noun phrase): The way consumers view a brand, including its qualities, values, and reputation.
Example: Samsung worked to improve its brand perception, moving from a low-cost producer to a premium innovator.
6. Supply chain integration (noun phrase): The process of managing and coordinating all aspects of the supply chain, from raw materials to finished products.
Example: Samsung's success is partly due to its strong supply chain integration, producing many of its own components.
7. Innovation ecosystem (noun phrase): A network of organizations, individuals, and resources that collaborate to foster innovation and technological advancement.
Example: Samsung actively participates in and contributes to a global innovation ecosystem through partnerships and investments.
8. Competitive advantage (noun phrase): A condition or circumstance that puts a company in a superior business position.
Example: Samsung's ability to quickly adapt and innovate gives it a competitive advantage in fast-paced markets.
Activity 3: Reading - Samsung: From Noodles to Global Tech Leader
Read the following passage about the early days of Samsung and its transformation into a global technology giant, focusing on key innovations and business strategies that built its success. Pay attention to the concepts discussed.
The story of Samsung, a name that now dominates the global electronics landscape, began in 1938 in Daegu, Korea, not as a tech company, but as a small trading company founded by Lee Byung-chul. Its initial ventures were in dried fish, local groceries, and noodles. The name "Samsung" itself means "three stars" in Korean, symbolizing something big, numerous, and powerful, a vision that would eventually come to fruition.
After the Korean War, Samsung diversified into various industries, including textiles, insurance, and retail. This period of rapid diversification laid the groundwork for its future growth, allowing it to build capital and expertise across different sectors. A significant turning point came in the late 1960s when Samsung entered the electronics industry, starting with black-and-white televisions. This move was a strategic pivot towards a high-growth sector, leveraging the burgeoning global demand for consumer electronics.
In the 1970s and 1980s, Samsung expanded its electronics production to include color televisions, refrigerators, and washing machines. Initially, Samsung products were often seen as lower-cost alternatives to established Japanese and Western brands. However, under the leadership of Lee Kun-hee, who took over in 1987, Samsung underwent a radical transformation. He famously declared a "New Management" philosophy, emphasizing quality over quantity and pushing for a relentless focus on research and development (R&D) and design excellence.
This commitment to R&D led to groundbreaking advancements, particularly in semiconductors and mobile communications. Samsung became a leading producer of memory chips in the 1990s, a critical component for computers and later, mobile phones. The launch of its first mobile phone in 1988, and later the hugely successful Galaxy smartphone series, propelled Samsung to the forefront of the global mobile market, challenging established players and gaining significant global market share.
Today, Samsung is a diversified conglomerate with interests spanning electronics, shipbuilding, construction, and more. Its success is a testament to its ability to adapt, innovate, and integrate its vast supply chain, producing many of its own components. Through continuous investment in technology, a strong focus on brand perception, and a relentless pursuit of competitive advantage, Samsung transformed from a small trading firm into one of the world's most influential and innovative technology companies, demonstrating the power of strategic vision and aggressive execution.
Activity 4: Discussion
Now, let's discuss the following questions about the broader themes inspired by Samsung's story. Use insights from the reading passage and your own thoughts to answer.
- How can diversification lead to a company's growth?
- Why is continuous innovation vital for tech companies?
- How does quality focus change a brand's reputation?
- What are the advantages of integrating a supply chain?
- How do companies maintain global leadership in fast-changing markets?