How big businesses compare

Introduction

Culture defines the essence of the organization in any business setting. It identifies the physical interface and emotional temperament between all employees. Culture also spans the interaction of employees with customers, vendors, investors, and media. With the ever changing business environment, businesses change their culture to adapt to the environment. (Colin, 2012)  In the long run, organizations can only succeed when they can adapt to new demands and conditions. This paper compares and contrasts the models of culture in three international mobile manufacturing companies namely, Samsung, Apple and Huawei to ascertain the most appropriate model. It then recommends the most appropriate economic system that best relates to each of the researched international competitors and their potential effects on such economic systems. Additionally, it will provide the major reasons why certain countries have lagged behind other countries in economic development.

Samsung

Samsung is the world’s second-largest producer of mobile phones. The most distinct characteristic of this company’s management is the top-down approach used in decision-making. There is no doubt that relations take a significant position in the running of the company. The organization model is simply to vertically structured and too hierarchical. The nature of the centralized management is highly influenced by the Eiffel Tower culture and Family culture. (Dongyoup, 2006) The rigid corporate culture has brought a high level of hierarchy and bureaucracy and a very formal relationship among management and employees compared to Apple Inc and Huawei.

Apple

Apple Inc. is a global electronics manufacturing company whose culture has been based on an ideal that self-motivated individuals work best when the management does not micromanage every action. This unique structure has allowed it to grow and react more quickly to changes compared to most of its competitors. This is the reason behind the innovative aspect that results from the quick responsiveness of individuals. It is easier to get a project started when only a few people are required to approve. Decision-making happens at the lowest possible level while the high-level management makes policy and oversees all activities. The day-to-day decisions on the ground are made by employees. The top-down philosophy allows rapid flexibility and responsiveness to situations due to the less bureaucratic structures. (Jason, 2009)

Huawei

Huawei took 16 years to become the largest private high-tech enterprise in China. Huawei’s unique corporate culture and human resource management have given the company a superior competitive edge. The management ideas of Ren Zhengfei underlie Huawei’s excellent corporate culture. Ren Zhengfei created the impressive management model that Huawei has today by combining successful management philosophies from renowned multinationals with the characteristics of the local environment and people. The culture of Huawei calls for self-criticism by making it a part of employees’ regular evaluation. This helps the company to receive a strong and critical feedback from employees including senior managers. The organization culture releases some authority to employees and rebuilding a creative organizational structure. Discipline and the ability to make decisions is down the chain of command. (Shan, 2012)

Economic system that best relates to each of the firms

The main types of economic systems are traditional, command and mixed economic systems. The command economic system best relates to Samsung Company. The most distinct feature of command economic system is centralized control. The control is left in the hands of a centralized power often the government. The government in this system regulates the resources and makes central decisions.

Traditional economic system best relates to Huawei Company. One of the elements of the traditional economic systems is that products and services produced are a direct result of traditions, beliefs, customs and religion. Huawei has today combined successful management philosophies from renowned multinationals with the characteristics of the local environment and people.

The mixed economic system best relates to Apple Inc. It combines the elements of market and command economy. Some level of control is left in the hands of the central authorities; however, many economic decisions are made by the individuals in the market. The government plays the role of allocating and distributing resources. In Apple Inc. Decision-making happens at the lowest level possible while the high-level management makes policy and oversee all activities. The day-to-day decisions on the ground are made by employees.

Major reasons why certain countries have lagged behind other countries in economic development

Economists recognize that human and physical capital and environmental resources are important economic assets known as natural capital. These resources have a significant role in economic development of different countries. Empirical evidence and economic theories and have shown that
Income economies endowed with abundant natural resources develop more rapidly compared to economies with the relatively poor resource. Resource abundant economies reinvest the rents generated from natural resource exploitation into other productive assets. They are also more flexible in diverting the economic resources to and from more productive and innovative sectors. Other factors such as political climate, economic systems, war and stability of government also determine the rate of economic development in these countries. Economic growth concerns the increase in the market value of the goods and services that an economy produces. The three firms have a role to play in the economic development in their respective countries. One of the production factors in economics are labor and technology. Given their positions in the technological industry, the companies can invest heavily in human capital to promote economic development. This way, they can directly and indirectly promote innovation as well as create employment.

Given an opportunity to lead one of the organizations, I would choose to lead Samsung Electronics. There are numerous skills that I would require as a manager to accomplish what is needed to get to that position. This is informed by the rigid structure of the firm that has been seen to affect the organization’s flexibility in the rapidly changing environment. Some management skills can be learned informally through life experiences, however, others have to be learned theoretically and developed through formal training I will require investing in education to attain the necessary knowledge and skills for the position. In addition to a set of skills, I will need to put into practice some basic values of building a relationship. These values will be helpful to ensure that I will be able to project attitudes of respect, cultural sensitivity and empathy toward others.

As the CEO, the first goal would be to look at the human resource aspect of the organization. It is critical to involve all levels of employees in the decision-making process. It is important to identify that a company employee are its most valuable assets along with the customers. This will enhance the ability to engage in core mandates of creativity and innovation that are imperative in this industry.

References

Shan Yingguang (2012) corporate culture at Huawei 

Colin Hawes (2012) The Transformation of Corporate Culture Routledge

Dongyoup Lee (2006) Samsung Electronics: The Global Inc LEE Dongyoup

 Jason D. O'Grady (2009) Apple Inc ABC-CLIO

Carolyn Morgan is the author of this paper. A senior editor at MeldaResearch.Com in college research paper services. If you need a similar paper you can place your order from best medical essay service.