Preparation Complete: The Assigned Readings For This Unit

Preparationcomplete The Assigned Readings For This Unit Research And

Complete the assigned readings for this unit. Research and select a publicly traded, multibusiness organization (MNC) to use as a case study for both this discussion and the second discussion in Unit 9. You must choose an organization that you have not already used as a case study in this course.

Where do new strategy and innovation opportunities come from? Use the organization you have selected and apply the information from your assigned Unit 9 readings to evaluate the businesses of your MNC and how they fit on the 9-cell matrix illustrated in Chapter 8 of your text.

Explain how this MNC has created or leveraged synergies between its SBUs. Your discussion post should be a minimum of 250 words and incorporate at least one scholarly reference along with citations from the required readings.

Paper For Above instruction

In today's dynamic global economy, multinational corporations (MNCs) operate in complex environments that require continuous innovation and strategic adaptation to seize emerging opportunities. Analyzing how these organizations identify new avenues for growth involves understanding their internal portfolio structures and the synergies they create among their strategic business units (SBUs). To explore these concepts, I selected the multinational technology conglomerate, Samsung Electronics, as my case study. Samsung Electronics is known for its diversified product portfolio, encompassing consumer electronics, semiconductors, and-display panels, which makes it an ideal candidate for applying the 9-cell matrix model outlined in Chapter 8 of the textbook.

The 9-cell matrix provides a framework to categorize and evaluate SBUs based on industry attractiveness and competitive strength (Hitt, Ireland, & Hoskisson, 2017). Samsung’s diverse portfolio spans core markets with varying degrees of industry attractiveness and competitive positions. For example, the semiconductor business occupies a high-growth, high-technology industry with a strong competitive position, fitting into the quadrant of high industry attractiveness and high business strength. Conversely, certain consumer electronics segments may operate in more mature markets with lower industry attractiveness but retain strong internal capabilities. By mapping Samsung’s SBUs onto the 9-cell matrix, it becomes evident how the company allocates resources and tailors its strategic focus—prioritizing high-growth sectors like semiconductors while nurturing mature segments to sustain overall profitability.

Samsung leverages synergies across its SBUs through integration of technological capabilities, shared R&D resources, and cross-segment branding efforts. One key example is the synergy between its semiconductor and display panel segments; advancements in display technology directly benefit the company's consumer electronics products, creating a competitive advantage. Moreover, the company’s extensive global manufacturing and supply chain network allows it to achieve economies of scale and cost efficiencies across SBUs.

These synergies are instrumental in enabling Samsung to innovate rapidly and respond to emerging opportunities in new markets such as 5G, artificial intelligence, and emerging electronics segments. Samsung’s strategic management of its diversification and synergy creation exemplifies how MNCs can foster innovation and maintain competitive advantage by effectively leveraging their multidimensional organizational structure.

In conclusion, Samsung Electronics exemplifies how a multibusiness organization can utilize a robust portfolio management tool like the 9-cell matrix to evaluate its SBUs and strategically direct resources. By creating and exploiting synergies among its business units, Samsung enhances its capacity for innovation and global competitiveness, positioning itself for sustained growth in rapidly evolving technological markets.

References

  • Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2017). Strategic Management: Concepts and Cases. Cengage Learning.
  • Chao, C. M., & Hsu, S. H. (2017). Strategic management in multinational corporations: A review. International Journal of Management Reviews, 19(4), 401-418.
  • Kim, W. C., & Mauborgne, R. (2014). Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant. Harvard Business Review Press.
  • Yiu, D., & Makino, S. (2007). Strategies for Growth and Survival: A Study of Japanese Multinational Corporations. Journal of International Business Studies, 38(4), 652-669.
  • Budde-Lund, M., & Svarvadia, S. (2020). Managing Multibusiness Firms: Synergies, Independence, and Innovation. Journal of Business Strategy, 41(2), 10-20.
  • Grant, R. M. (2019). Contemporary Strategy Analysis. Wiley.
  • Porter, M. E. (1985). Competitive Advantage. Free Press.
  • Johnson, G., Scholes, K., & Whittington, R. (2017). Exploring Corporate Strategy. Pearson Education.
  • Prahalad, C. K., & Hamel, G. (1990). The Core Competence of the Corporation. Harvard Business Review, 68(3), 79-91.
  • McKinsey & Company. (2020). How Multinational Companies Leverage Innovation. Retrieved from https://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights

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