Fundamentals of Management, 8th ed

F I G U R E 6 . 3

Conglomerate (H-Form) Design at Samsung

Samsung Electronics Company, a South Korean firm, uses the conglomerate form of

organization design. This design, which results from a strategy of unrelated

diversification, is a complex one to manage. Managers find that comparing and

integrating activities among the dissimilar operations are difficult. Companies may

abandon this design for another approach, such as the M-form design.

conglomerate

design

Used by an

organization made

up of a set of

unrelated businesses

178

Part 3: Organizing

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