Samsung Looks to Reshape Itself Into a More Flexible Company: Report
The idea is to remake the monolithic Samsung into a company with startup energy and thinking, while maintaining its core businesses.Samsung wants to make itself nimble, while also mirroring the energy and flexibility of a startup, as it works to compete more effectively in the world marketplace against key rivals including Apple. To do that, the company is about to revamp its business processes in an attempt to reshape its slow-moving and conservative structure of the past. That is what's behind Samsung's newly announced moves to "move away from a top-down culture and towards a working environment that fosters open dialogue," according to a March 24 story by Reuters. The company's business leaders will sign a pledge to work toward making such changes, will reduce the number of staff layers in its hierarchy, and will move to increase online discussions between business division heads and employees in an attempt to make Samsung more flexible, the story reported. "We aim to reform our internal culture, execute as quickly as a startup company and push towards open communication and continuously innovate," the company told Reuters in a statement. Samsung has been battling a pattern of sluggish sales over the last several quarters as it competes in some very competitive markets, including smartphones, televisions and DRAM chips, according to earlier eWEEK stories.
In January, Samsung reported fourth-quarter 2015 revenue that was up slightly, while its operating profit was down compared with the prior quarter. Samsung had an operating profit of $5.05 billion (6.14 trillion Korean Won) for the fourth quarter of 2015, which is down from the $6.4 billion the company posted in the third quarter. The company's Q4 2015 consolidated revenue was $44 billion (53.32 trillion KRW), which is up from the 51.68 trillion KRW reported in Q3. The fourth quarter ended on Dec. 31, 2015.