Organizational change can be so difficult to carry out that many business leaders avoid it altogether. The company began operating in in a highly competitive market.
URL copy Layer close Samsung Electronics announced today the result of its review regarding the optimal corporate structure of the Company. The review also found a number of issues that may result from the process of converting into a holding company.
First, creating a holding company would require divestments of equity stakes held by the Company and its affiliates. This would need the approval of the board of directors and the shareholders of each of the relevant companies and therefore cannot be implemented by the Company alone.
The uncertainty of the legal and regulatory environment is also increasing as several revisions to relevant laws are pending for review which may negatively impact the creation of a holding company structure.
As such, Samsung concluded the risks and the challenging environment surrounding a change in the corporate structure would not be beneficial for enhancing shareholder value and sustaining long-term business growth.
Samsung maintains a well-balanced business portfolio between consumer electronics, including smartphones and TVs, and components business, comprising of semiconductors and displays. This structure has enabled Samsung to minimize earnings volatility during periods of economic downturn and maintain stable growth through bold and preemptive investment in new technologies and facilities.
Moreover, this structure also serves as a platform for sustainable growth by allowing the Company to invest in new growth engines with earnings generated by profitable businesses.
This is a unique strength of Samsung that cannot be matched by its global peers. With the Company already maintaining strong competitiveness in its businesses, the Company has held a negative view that converting into a holding company structure would not contribute to further enhancing the competitiveness of the Company.
Since announcing the review plan in November as requested by investors, the Company and its advisors have evaluated important strategic, operational, financial, legal, tax and accounting considerations in determining the optimal structure with the Board and management maintaining a neutral position.Nokia S Evolving Organizational Structure.
Organizational Structure MGT June 18, Organizational Structure According to skybox2008.com the definition of organizational structure is the framework in which aligns the line of authority, communications, and allocates the rights and duties of a company. They determine the roles, power, and responsibility; how they are delegated.
Organizational structure How individual and teamwork within an organization is coordinated. refers to how the work of individuals and teams within an organization is coordinated.
In order to achieve organizational goals and objectives, individual work needs to be coordinated and managed. A Organizational Chart showing Samsung. You can edit this Organizational Chart using Creately diagramming tool and include in your report/presentation/website.
For example, how Nokia organized its organization structure, features, strategic issues, and key challenges. What business functions, processes, cores are Nokia concentrate more in. How the goals and strategy has been accomplished. Strategy and structure are married to each other. If you change one, you have to change the other.
Apr 30, · Nokia’s revenue fell 15 percent, to € billion, over the same period, primarily because of reduced sales and asset divestments from the company’s telecom infrastructure unit, according to.