24Dara Kerr, “Samsung Breaks Ground on Futuristic Silicon Valley Campus,” CNET, 9 July2013, , accessed 10 July 2018. ST72UST072 Samsung as a Silicon ValleyCompany9 This document is authorized for use only in Diego Grijalva's ECONOMIA Y GERENCIA at Universidad San Francisco de Quito - USFQ from Aug 2019 to Feb 2020.
HKUST Business SchoolThompson Center for Business Case Studies Uber combined. Sohn stated at the timethat Samsungmight become “one of the largest 10—or even five—employers in Silicon Valleywithin the next five years.” That would bring Samsung to the level of Apple,Cisco, Google,Oracle, and Lockheed Martin.25Growth continued asSamsung announcedthat the company “selectedSilicon Valleyas a much larger homebase for housing someof the best minds in the country.” Tosupport this growth, Samsung Electronics built landmark facilities in the region. Samsung builta1.1-million-square-foot headquarters innorth San Jose, near Apple’s headquarters, to house not onlyresearchand development but alsosales. Samsung Research America, a software-focused facility, also launched a new office in Mountain View, near Google’sheadquarters.26Relocation of the control tower. Samsung’sSilicon Valleysubsidiaries increasinglyassumed strategic planning roles more traditionally associated with the company’s Korea-based headquarters.In February2017, Samsung announcedthe dissolution ofits Corporate Strategy Office—commonlyknown as the Samsung Group’s “control tower”—after five senior executives, includingSamsung Electronics vice chairman and heir-apparent Lee Jae-yong, were prosecuted for bribing now-impeached president Park Geun-hye. In addition to closing the Future StrategyGroup, SamsungGroup’s chief vice chairman, president, and around 60 executives also resigned at the same time. This change had great importance because the Future Strategy Group hadbeen in place in Samsung since 1959andestablished a top-down relationship between the group and its affiliates. Before its disbanding, the office had around 200members recruited from different units, all of whom were responsible for uniting the group’s strategy. The Future StrategyOffice also led weeklymeetings of the CEOs of allSamsung subsidiaries. These meetings were abandoned, so that each subsidiaryhad more autonomy and was fully operated byits board of directors. The annual recruitment system, which was led by the Future StrategyOffice, was also abolished and its duties returned to individual affiliates.27Despitepublic criticism of the Future Strategy Office, some industrysources were concerned that the lack of a control towercould “make a dent in the competitiveness of not onlySamsung butalso South Korea.”28Yet, an official at Samsung told Yonhap News Agencythat “the conglomerate is unlikelyto revive a control-tower entityconsidering the public’snegative sentiment.”29[SeeExhibit 4for details onthereorganization of the Samsung Group following the abolishment of the control tower.]
You've reached the end of your free preview.
Want to read all 18 pages?
- Spring '11
- Samsung Electronics, Samsung Group