Samsung Electronics is the chief subsidiary of the Samsung Group and the largest electronics producer in Asia. On December 30, 1968, Samsung’s founding Chairman Byung-chull Lee and other executives gathered for a meeting where a crucial decision to enter the electronics business was made. Thus on January 13, 1969, Samsung Electronics was born. (Samsung Village, 2012) Current CEO
On June 8th, 2012, Dr. Oh-Hyun Kwon was officially appointed Chief Executive Officer of Samsung Electronics Co. by the company’s Board of Directors. Since Dr. Kwon joined Samsung Electronics’ Semiconductor Business in 1985, he has played a crucial role in Samsung Electronics’ rapid advance in the semiconductor industry. (About Samsung, n.d.). Location of headquarters and any other locations
Samsung Electronics headquartered in Suwon, Gyeonggi Province, South Korea. Besides, this company has expanded globally during the early 1980s. For example, Samsung established the four manufacturing subsidiaries respectively in Portugal, United States, United Kingdom, and Mexico. (Samsung Tomorrow, 2012) Mission Statement
Samsung does not have an official mission but express it through company philosophy:“At Samsung, we follow a simple business philosophy: to devote our talent and technology to creating superior products and services that contribute to a better global society.” Every day, our people bring this philosophy to life.
Our leaders search for the brightest talent from around the world and give them the resources they need to be the best at what they do. The result is that all of our products—from memory chips that help businesses store vital knowledge to mobile phones that connect people across continents— have the power to enrich lives. And that’s what making a better global society is all about. ( Samsung, n.d.) Number of employees
Samsung Electronics has around 370,000 employees worldwide. (BloombergBusinessweek, 2013) What type of products or services Broadly speaking, Samsung Electronics has four major divisions: Semiconductors, Display products, Telecom, and Consumer Electronics. It is a conglomerate consisting of numerous businesses around the world, of course, so it’s not as though the company has nearly 300,000 people working on Galaxy smartphones and tablets.
Samsung also builds various electronics components like processors and memory modules, and it sells them to partner companies such as Apple. It also uses those components in its own devices, which span numerous categories from smartphones and computers to televisions, refrigerators and washing machines. (BGR, 2013) What are the target markets
Samsung’s targets a very wide range of consumers ranging from normal day to day usage devices to industrial standard equipment. The usual target age group of customers range from the 20s to 50s or even older, as long as the person has the ability to purchase and use the products that Samsung has to offer in the market. Teenagers to early adults (age 14-25): This age group of Samsung product consumers is usually Samsung’s smartphone target customers as they are mostly technology savvy.
This group of customers is growing as Samsung saw that this group has more spending power in recent years compared to in the past. Adults (age 26-50): This specific group of targets the largest portion of Samsung’s target market as this is the group of consumers that have the most ability to purchase any of the product Samsung has to offer in the market be it smartphones, smart television, cameras or any other household products like vacuum cleaners or washing machines. This portion of customers will continue to grow in the years to come. (Samsung’s Target Market, n.d.) What kind of culture does the company have, and why
Samsung Electronics is fully committed to complying with local laws and regulations as well as applying a strict global code of conduct to all employees. It believes that ethical management is not only a tool for responding to the rapid changes in the global business environment, but also a vehicle for building trust with its various stakeholders including customers, shareholders, employees, business partners, and local communities.
With an aim to become one of the most ethical companies in the bworld that is respected by its stakeholders, Samsung Electronics continues to train its employees and operate monitoring systems, while practicing fair and transparent corporate management. (Samsung, n.d.) Financial Statements
By December 31, 2013, its gross profit is $ 88,648.7, total assets are $ 208,637.5, and total cash flow is $-2,443.0.(Bloomberg Businessweek, n.d.). The details are illustrated as bellowing (All numbers in million): Income StatementBalance SheetCash flow
Total Revenue$222,792.4Total Liabilities$ 62,431.9Cash from operations$45,521.1 Total Cost$134,143.7 Total Equity$ 146,205.6Cash from investing$ (43,610.4)Cash from financing$ (4,032.0)Gross Profit$ 88,648.7Total Assets$ 208,637.5Total cash flow$ (2,443.0)
Case SummaryThis case is mainly talking about the importance of strategic planning by the Samsung Electronics story. It was founded in 1969 as Samsung Electric. At first, it was known as a second-tier manufacturer of low-priced small appliances. Nobody would be likely to name Samsung as a manufacturer of high-quality televisions.
But a turning point came in 1997. Facing the Asian currency crisis, instead of lying off employees and selling or dissolving 100 business units, Samsung used the downturn to rethink its mission: a transformed company, with a new focus on quality. Its new strategic plan resulted immediately. The company’s market share grew dramatically in several product categories, such as televisions, cell phones, and computer displays.
The company significantly improved financial performance with internal transformation instead of outsourcing the work to other firms. Today, Samsung operates 167 subsidiaries in a variety of industries ranging from consumer electronics to construction, chemicals, securities, and even sugar. Recognizing its responsibility in the world economy, the company also pledges to reduce greenhouse gas emissions from its operations and from the use of its products. It plans to expand into such green markets as solar and wind power, energy efficiency, and LED technology. Samsung’s goal: to be number one in solar energy by 2015.