Question

Please help me with coming up with a corporate level problem statement for Samsung with referencing the following if possible, Samsung electric, Samsung heavy industries and Samsung engineering! Thank you so much for your help. Please provide any supplement information if possible.

The problem is always something that is harming shareholder wealth either because of an underperforming, unrelated SBU or an underperforming, inappropriately organized pair of related SBUs. You should identify one SBU as a source of savings or greater earnings.

If the problem results from a related diversification strategy, it may be that the company can keep the existing SBUs if it will reorganize them with more effective cost/service centers to ensure that they generate economies of scope.

The problem must focus on the mix of businesses, not on how to make changes in individual businesses so that individually they will function more effectively. We assume that corporate managers should not make changes in the operation of individual businesses. Corporate managers can only change the mix of businesses or how these businesses operate together.

Answer 1

A corporate level problem statement for Samsung with references to Samsung electric, Samsung heavy industries, and Samsung engineering suggesting reorganization of underperforming SBUs.

Step-by-step explanation:

A corporate level problem statement for Samsung could be:

Problem: Samsung's current corporate structure and mix of businesses are not generating sufficient shareholder wealth due to underperforming and unrelated Strategic Business Units (SBUs).

Solution: Samsung should identify an SBU that can generate savings or greater earnings and reorganize it with more effective cost/service centers to ensure economies of scope.

Supplemental information: By focusing on the mix of businesses and improving their organization, Samsung can address the problem of underperformance and maximize shareholder wealth.