SAMSUNG

Introduction

The organization that I pick out for my research paper is Samsung, one of the innovative

company in the electronic market. There are numerous organizations in the market, and the

reasons for choosing the Samsung company is the fact that it has a high opportunity to lead the

market. Moreover, I am the loyal client of Samsung brand, which assists us to excess with

innovative technology with confined remedies.

According to Samsung electronics co ltd files patent application for electronic device

and method for analyzing face information in the electronic device (2017), Samsung Electronics

is a South Korean international company, specializing in Information Technology and Electronic.

The study further suggest that SEc is the flagship branch of Samsung Group which includes sales

networks in 61 countries and has roughly 160,000 employees. In 2009 Samsung company turn

into the globe biggest IT manufacturers. Its income from the display device and memory chips is

the highest in the world (Kim, 2017). Moreover, SEC from 2006 to 2010 have sold the most

televisions globally, and in 2010 it was estimated that this trend would continue. Furthermore,

with the Introduction of the Samsung galaxy s cell phone, for a significant period, the

organization was in second place regarding global sales figure. Also, Samsung has set up a noted

SAMSUNG

4 position in the tablet market by creating the Android-powered Samsung Galaxy Tab to rival with

the APPle”s iPad.

Apple is the leading organization in the electronic market yet for the extended time Apple

and Samsung have faced in every manner that matters rare in business history. For instance,

their blue war costing more than a one billion dollars and distributing more than four continents.

Samsung was giving rivalry the dominant organizations such as apple that is the significant

subject to come in a year. In the 1960’s and 1970’s, Samsung concentrated get together and era

capability, and in the 1980’s and 1990’s, the conferences moved to the accompanying level to

expand the devices and moreover its overall quality (Lewin, 2015).

This project will assist me to inquire more about the Samsung that I have been utilizing for

many years. I will learn about its vision to motivate the world to produce the future. Over novel,

valid goods and services, skilled individuals, accountable able access to commerce and global

citizenship, and partnership with associates and clients, Samsung is taking the world in fresh

creative directions.

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5

Mission and Vision

Vision and Mission statements are the most powerful and essential tool for company

prosperity. Organizations with the most excellent brand have a strong and efficient vision and

mission statements (Visinski, 2o13). Ashta (2018), supported Visinski’s (2013) view and stated

that the vision and mission statements are crucial to organization’s growth because they will

reflect the stories and the principles that a company believe in. According to Kopaneva (2013),

company’s Mission and Vision play vital roles in the life of the company and well being of its

staff. Guilty (2015) states that the company mission set by founding members and gives

company main objectives. Concerning vision, it provides a future picture of the company, and it

must be innovated to face altering needs of the environment.

Asia-pacific patient monitoring market outlook to 2018 – fetal monitors,

multiparameter patient monitoring, neonatal monitors, non-invasive blood pressure monitors and

others (2012), states that Samsung at the 2018 Consumer Electronic show defined its vision for

Intelligent Internet broadcasting. It was further suggested Samsung show its capacity to advance

Lot adoption through the transparent, constant, and intelligent platform. Hyunsuk Kim CEO of

Samsung claims that lot should be as easy as clicking a switch. This progresses will assists

customer comprehend the benefit of seamless and easy linked life. Also, he mentioned that the

Vision of the company is to “Inspire the world, create the future.” With this vision, Samsung

stimulates its group by taking advantage of its main strength, original solution, advanced

SAMSUNG

6 product, and technology. Furthermore, the vision of Samsung to reach $400 billion in revenue by

2020 and will be ranked the globe’s top five brands.

According to Shin and Kim (2015), Samsung new Mission Statement is “We will devote

our human resources and technology to creating superior products and services, thereby

contributing to a better global society.” They further pointed out that Samsung Mission statement

stresses technology and human resources. That is people who comprehend their social

accountabilities, who use their full capabilities to assist in creating a better future for everyone.

Moreover, Samsung willingly confesses that its final objectives to produce incomes so it can

contribute to social and economic progress. They further reported that Samsung Mission

Statement concentrated in improving its brand and becoming the leader in the future markets. It

seems that Samsung is going to change its standing of being an organization which observing

another producer of new technologies and demand and follows them. This was visible when

Samsung was accused of iPhone rip-offs which breached several patents (Shin and Kim, 2015).

Organization Structure

SAMSUNG

7 According to Samsung electronics co., (2016), Samsung is one of the popular

electronic brands in the world. The company works in Europe, Asia, and the Americas. It Main

office is in Gyeonggi-do, South Korea and hired 96,898 people as of December 31, 2015. Its

further suggested that in 61 countries Samsung company has plants and sales. Moreover,

Samsung companies have set up leadership comprising high capacity memory, the next-

generation display device, and electromechanical component, Biotech Business Week.

According to Shin and Kim (2015), “Samsung turn into a compound management

scheme by using the western method of administration.” Furthermore, he states that it has raised

its productivity by combining its products. Based on research of Shin and others the

management in the Samsung followed a stimulating direction in the organization. It hired more

workers and preserved a good quality by encouraging them with new motivations and new ways

of operating that produced excellent surroundings for them.

According to Shin and Kim (2015), Samsung has different concepts in separating its

departments. They are Qualitative administration, persuading representatives, approaches,

preemptive needs and critical exercises in the field administration. Additionally, it has

accomplished a creation framework in which an item can be performed in 2 days by generation

choice framework and generation brilliance framework.

Company Analyses

Leadership character at the Samsung company concentrated on the main choices and

SAMSUNG

8 people. The founder Byung- Chul Lee in 1960s ascended the significance of human resources.

He claimed that the main success of the company is its employees and they can define the fate

of the company(Shin and Kim, 2015). It further suggested that Samsung classifies quality

problems into the quality of output, staff and the quality of administration. It is a common belief

that the product quality directly influences the survival of a company in the market. Whereas,

Samsung has controlled according to the thought that improving the quality of employees and

management can improve the product and service quality.

Based on Shin and Kim (2015), research another quality of Samsung is making a

significant decision at the correct time. As Samsung built Samsung electronic Express Belt,

where units are interconnected with one another so they can cooperate promptly. The time take

to produce goods, create production system, increase production can be decreased significantly

in comparison to rivals due to fast and regular communication amongst Production Sectors and

Research and Development Sectors.

Regarding motivating people to reach a better quality, the double sourcing of Samsung

is a valid example. Elements manufactured in the company are bought from outside companies

at the same time. This method improves productivity and cuts cost (Shin and Kim, 2015). They

further acknowledged that Samsung Electronics did his accent on the business management

framework of forecasting and preparing for future changes. The corporation has dynamically

attempted to increase business management speed via Global SCM system.

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9

Marketing

According to Kotler and Keller (2012), Marketing Strategy is not easy, and it comprises

decisions of the product line, price setting, location for product sell and how much it should

spend on advertising. Morgan and Vorhies (2012), acknowledged that efficient execution

SAMSUNG

10 marketing strategy is the primary determinant of the execution of a company working in

international markets. It further suggested, effective implementation of marketing strategy

facilitates export demand and financial performance. Moreover, marketing capabilities play a

vital role in accomplishment in export venture operations. Kim (2017), states that advantage of

Samsung regarding its products is that customer trust on it due to the way it had performed in the

past years. Issues with its products have been insignificant. Kim study further stated that the

service that Samsung provides is very fast. As a result of the Marketing Mix of Samsung, one of

the compelling points is the product portfolio.

Price and the Marketing Mix of Samsung

According to Shin and Kim (2015), due to the presence in diverse product categories,

Samsung has different pricing strategies. It required to divide the pricing strategy and match it

with the items that are used for. Kim (2017), the states Samsung smartphones are the market

leader regarding the feature Nad USP they provide. The new Samsung Note 3+ Gear is another

entrant in the market which is attractive for people. Therefore utilizes Skimming Price for this

items to obtain high value in the beginning before rivals overtake. After the item become old or

rival produced the same product, it decreases the cost immediately.

Eric (2014), states that Samsung uses a different kind of promotions. As a company, it

believes in attracting customer through advertising and at the same time via sales promotion it

pushes the item to the consumers. Samsung uses diverse marketing strategies as well as gives

numeral offers and discount to bit its rivals. It further suggests that Samsung’s Marketing mix is a

SAMSUNG

11 good example for marketers as this company is advancing as it has multiple products at once as

all these items may turn into income drivers for an organization. Moreover, Pull technique

beneficial for a long time.

Advertising

Fedorenko (2012), acknowledged that Samsung Electronic uses print and mass media

advertising broadly. One of the most important media advertising was promoting Samsung

Galaxy S 3 device on a famous Jimmy Kimmel Live show. Also, cooperation with Fox channel

in the Us run throughout the National football league. Further, it suggests Viral marketing as

well broadly utilized by Samsung. For instance, the new 60- second viral marketing clip named

as “Anticipation” is a successful effort to associate Samsung brand with a sense of progress and a

to associate Samsung Galaxy S6 with excitement and a sense of achievement. In comparing to its

rival Samsung utilizes marketing tool more widely (Fedorenko, 2012). It has been evaluated that

Samsung corporation only in 2013 had spent $4.6 billion on sales promotion. It is essential to

elucidate that this money is separate from marketing Budget. Samsung official website, also

comprise sales promotion advertising on cell phones, watches and bundle offers.

SAMSUNG

12

Financial Analyse

Monea (2013), acknowledged Financial Analyses provides data for decision making and

assists external users as well as internal users. Pur & Horák (2015), state financial analysis is the

engine utilized for assessing the productivity and economic status of organizations. The

financial analysis provides data which is required for decision making. The outcomes of financial

analysis work are conditional to the quality, correctness, relevance, and efficiency of the

information gathered (Monea, 2013). According to Pur & Horák (2015), the Financial analysis is

one of the tools utilized by corporate management. By using specific procedures and methods, it

SAMSUNG

13 deals with evaluating the economic situation of a company and makes a complex assessment of

the financial situation of a company. It further suggested that Financial analyses have to proceed

in the frame of particular principles to find out the correct results.

Samsung Card is a financial service provider. The company’s product offering

comprises credit cards, debit cards, and cards loan. The company service comprises lease and

rental services, cash advance services and fraud protection services. Samsung Card offers it

services to both, individual and corporate customers. The organization shares its services and

products via direct marketing channels, digital platforms classical distribution channels. The

headquarter office of Samsung Card is in Seoul, South Korea and it has its presence in the US

and Japan (Samsung card co., Ltd : Financial services – company profile, SWOT & financial

analysis,2016). Financial Services (2016) acknowledged Samsung Card Company categorizes its

business in three main divisions, Installment, Credit Card and Leasing. Via the Credit Card

Division, the organization provides credit cards to its customers.Moreover, its offers

commercials services that comprise credit card loans. According to Financial services (2016), the

company reported revenue of US$3,005 million during the fiscal year 2015 (2015). The

company’s revenue grew at a CAGR of 0.91% during 2011–2015, with an annual decline of

6.24% over 2014. During 2015, the operating margin of the company was 11.63% in comparison

with the operating margin of 24.57% in 2014. In 2015, the organization recorded a net profit

margin of 10.11% compared to a net profit margin of 18.63% in 2014.

Ratio Analysis of the company Samsung

SAMSUNG

14 According to research on Samsung C&T Corporation (2017), the following table illustrates

the ratios for the organization during the last five years. The various ratios seen in the table are

ROE in which there are ratios of Profitability, assets turnover ratio and leverages are comprised,

and there is an average ration of ROE is given. For the next, there is a Debt/ equity ratio for the

five years followed by the Net debt/equity ratio, and in the last column, there is overall profits

per share are provided. The ratios are counted from the balance sheet and income statements for

the last nine years of the organization. The ratios calculated are illustrated in the following table

for the years 2008-2017.

Table1

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SELLING DREAMS AS VISIONS AND MISSIONS. Cost Management, 32, 35- 41. Retrieved from https://prx-herzing.lirn.net/login?url=https://search-proquest- com.prx-herzing.lirn.net/docview/2034187036?accountid=167104

Asia-pacific patient monitoring market outlook to 2018 – fetal monitors, multiparameter patient monitoring, neonatal monitors, non-invasive blood pressure monitors, and others. (2012, Oct 31). PR Newswire Retrieved from https://prx- herzing.lirn.net/login?url=https://search-proquest-com.prx- herzing.lirn.net/docview/1124355394?accountid=167104

Bharat book bureau: Samsung SDI co., ltd. – financial analysis review. (2010, Mar 02). M2 Presswire Retrieved from https://prx-herzing.lirn.net/login?url=https://search- proquest-com.prx-herzing.lirn.net/docview/446331554?accountid=167104

Eric Siebert – VP, global digital marketing, Samsung electronics company limited(2014). San Francisco: Boardroom Insiders, Inc. Retrieved from https://prx-

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Gulati, R. (2015). Understanding vision and its role in a healthcare environment (Order No. 3732063). Available from ProQuest Central. (1728319960). Retrieved from https://prx-herzing.lirn.net/login?url=https://search-proquest-com.prx- herzing.lirn.net/docview/1728319960?accountid=167104

Kim, Miyoung (27 November 2013). “Samsung’s marketing splurge doesn’t always bring bang-for-buck”. Reuters. Retrieved 21 October 2015. Lewin, J. (2015). Samsung heir backs Samsung engineering with $250m. FT. Com, Retrieved From Http://prx-herzing.lirn.net/login?url=https://search- proquest-com.prx-herzing.lirn.net/docview/1803033315?accountid=167104

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Kotler, P. & Keller, K. (2012). Marketing Management (14th ed.). [Bookshelf Online]. Retrieved from https://bookshelf.vitalsource.com/#/books/9781256913566/cfi/6/2!/4/12/36/2 @0:73.7

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Pur, D., Jácová, H., & Horák, J. (2015). AN EVALUATION OF SELECTED ASSETS AND THEIR IMPACT ON THE DECLARATIVE CHARACTERISTIC OF RATIO INDICATORS IN FINANCIAL ANALYSES. E+M Ekonomie a Management, 18(4), 132-149. doi:http://dx.doi.org.prx- herzing.lirn.net/10.15240/tul/001/2015-4-010

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Samsung C&T corporation (000830) – alternative energy – deals and alliances profile. (2017). (). London: Global Data Ltd. Retrieved from ABI/INFORM Collection Retrieved from https://prx-herzing.lirn.net/login?url=https://search-proquest- com.prx-herzing.lirn.net/docview/1412581843?accountid=167104

Samsung shared a vision for an open and connected IoT experience at Samsung developer conference 2017. (2017, Oct 24). Al Bawaba Retrieved from https://prx-herzing.lirn.net/login?url=https://search-proquest-com.prx- herzing.lirn.net/docview/1954474778?accountid=167104

Shin, W. S., & Kim, C. (2015). Samsung’s journey to excellence in quality. International Journal of Quality and Service Sciences, 7(2), 312-320. Retrieved from http://prx- herzing.lirn.net/login?url=http://search.proquest.com.prx-

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United States: Samsung delivers the vision for open and intelligent IoT experiences to simplify everyday life. (2018, Jan 10). Asia News Monitor Retrieved from https://prx-herzing.lirn.net/login?url=https://search-proquest-com.prx- herzing.lirn.net/docview/1985960246?accountid=167104

Visniski, S. (2013). Examining the formulation of financial firms vision and mission statements: A case study (Order No. 3578582). Available from ABI/INFORM Collection. (1499841938). Retrieved from https://prx-herzing.lirn.net/login? url=https://search-proquest-com.prx-herzing.lirn.net/docview/1499841938? accountid=167104