The Samsung Group emerged as one of the largest organization in the world over the years while the company is known for their technology division as well. The company is a South Korean multinational conglomerate company in Samsung Town, Seoul, South Korea. The size of the company is almost inestimable in recent years. Thus, I choose the Samsung group as the organization for my assignment.
The founder of the Samsung is Lee Byung Chull who started his business by exporting fruits, vegetables and dried fish in Su-dong in 1938. He built up his groceries business and produced noodles with forty employees. In 1947, his business had expanded to Seoul. Unfortunately, he forced to leave Seoul when the Korean War broke out and relocated his business to Suwon in 1951.
With his fighting spirit, his company gained his profits at 2000 percents in two years. Then, he built a sugar refinery in Busan and continuously developed his business such as mill, insurance, securities and retail for commercial purpose. Lee placed a great importance on industrialization and tends to establish Samsung as an industry leader in South Korea.
With the policies which practised by the president, Park Chung-hee who provided the financial assistance to the companies within South Korea. The rise of Samsung Electronics was formed in 1969. Park Chung-hee also prohibited other foreign companies from doing their business and allowed certain companies access to South Korea with the condition of supplying their technology, skills and knowledge. This crucial move allowed Samsung Electronic able to produce electronic boards and chips. Soon, Samsung can create its own household appliances such as fridges, freezers, washing machines and air conditioners.
In the early of 70s, Samsung group entered into the electronics industry successfully. The company also started to manufacture televisions and audio apparatus and open their television station called the Tongyan Broadcasting Company by borrowing the costing for the purpose to enter into the communications industry. In the same year of 70s, Samsung established their heavy industrial developments such as shipbuilding, petrol refineries and home electronics. Samsung continued to diversify their business into other industries and started to develop and focus on the aerospace, genetic engineering and nanotechnology throughout the 80s.
Besides that, Samsung found the importance of the new development technology and formed their research and development institute in the late of 80s. Samsung become more successful with building the manufacturing plants in Portugal, New York from 1982 to 1987 for producing electronics and home appliances.
The died of Lee Byung Chull in 1987 with serving the company for over fifty years had left the company to his son, Lee Kun Hee who took over his position as chairman. With the new management of Lee Kun Hee, Samsung continues to grow as a great industry for home appliances and gadgets in global market till the advent of digital age.
In fact, the Samsung group comprises a wide rage of international industries including Samsung Electronics, Samsung Heavy Industries, Samsung Engineering and Samsung C&T whereas Samsung Electronics is the world largest information technology company which produces consumer electronics in global market. Thus, the products mostly in the electronics parts which comprises in telecommunications, digital media, LCD displays, semiconductors and digital appliances.
In the digital media category, Samsung produces printers, computers, televisions, MP3 players and computers whereas produces mobile phones and home networking products in the telecommunications category. Other than that, Samsung produces the home appliances including vacuum cleaners, air conditioners, washing machines and microwaves and also the semiconductor which is the oldest industries in Samsung.
According to Wikipedia (2011), Samsung Group comprised around 80 companies which are 59 unlisted companies and 19 listed companies. It is highly diversified with activities in areas including construction, electronics, financial services, shipbuilding and medical services. Samsung has gone from a Korean localized firm to a global firm, with 20.8 market shares, 56 billion in sales, a stock price of $219, and more than 170 billion shares in common and preferred shares.
Currently, Lee Kun Hee is the Chairman & CEO of Samsung group and a major stock holder with 2,819,659 shares, a 1.91 % of total. Whereas, there are two vice Chairman & CEO who are Yun Yong Jong and Lee Hak Soon, hold 26,300 shares with a 0.02 % of total and 13,884 shares with a 0.01 % of total respectively. They hold the key position in the Board of Directors of Samsung group and responsible for overall corporate strategy and corporate management. Every board member owns the common stocks and serves on the board for at least from five to nine years.