strategic management in samsung

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Chapter 1

INTRODUCTION

Samsung Group is a South Korean multinational conglomerate company headquartered in

Samsung Town, Seoul. It comprises numerous subsidiaries and affiliated businesses, most of

them united under the Samsung brand, and are the largest South Korean chaebol (business

conglomerate).

Samsung was founded by Lee Byung-chul in 1838 as a trading company. Over the next three

decades the group diversified into areas including food processing, textiles, insurance, securities

and retail. Samsung entered the electronics industry in the late 1960s and the construction and

shipbuilding industries in the mid-1970s; these areas would drive its subsequent growth.

Following Lee's death in 1987, Samsung was separated into four business groups Samsung

Group, Shinsegae Group, CJ Group and Hansol Group. Since the 1990s Samsung has

increasingly globalized its activities, and electronics, particularly mobile phones and

semiconductors, have become its most important source of income.

Notable Samsung industrial subsidiaries include Samsung Electronics (the world's largest

information technology company measured by 2012 revenues, and 4th in market value),Samsung

Heavy Industries (the world's 2nd-largest shipbuilder measured by 2010 revenues), and Samsung

Engineering and Samsung C&T (respectively the world's 13th and 36th-largest construction

companies).Other notable subsidiaries include Samsung Life Insurance (the world's 14th-largest

life insurance company),Samsung Everland (operator of Everland Resort, the oldest theme park

in South Korea),[ Samsung Techwin (an aerospace, surveillance and defense company) and

Cheil Worldwide (the world's 16th-largest advertising agency measured by 2011 revenues).


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Samsung has a powerful influence on South Korea's economic development, politics, media and

culture, and has been a major driving force behind the "Miracle on the Han River".Its affiliate

companies produce around a fifth of South Korea's total exports. Samsung's revenue was equal to

17% of the South Korea's $1,082 billion GDP.


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Chapter 2

HISTORY OF SAMSUNG

1938 to 1970

The headquarters of Samsung Sanghoes in Daegu in the late 1930s

In 1938 Lee Byung-chull (19101987) of a large landowning family in the Uiryeong county

came to the nearby Daegu city and founded Samsung Sanghoe a small trading company with

forty employees located in Su-dong (now Ingyo-dong). It dealt in groceries produced in and

around the city and produced its own noodles. The company prospered and Lee moved its head

office to Seoul in 1947. When the Korean War broke out, however, he was forced to leave Seoul

and started a sugar refinery in Busan named Cheil Jedang. After the war, in 1954, Lee founded

Cheil Mojik and built the plant in Chimsan-dong, Daegu. It was the largest woolen mill ever in

the country and the company took on the aspect of a major company.

Samsung diversified into many areas and Lee sought to help establish Samsung as an industry

leader in a wide range of enterprises, moving into businesses such as insurance, securities, and

retail. Lee placed great importance on industrialization, and focused his economic development

strategy on a handful of large domestic conglomerates, protecting them from competition and

assisting them financially.

In 1948, Cho Hong-jai (the Hyosung groups founder) jointly invested in a new company called

Samsung Mulsan Gongsa, or the Samsung Trading Corporation, with the Samsung Group

founder Lee Byung-chull. The trading firm grew to become the present-day Samsung C&T

Corporation. But after some years Cho and Lee separated due to differences in management


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between them. He wanted to get up to a 30% group share. After settlement, Samsung Group was

separated into Samsung Group and Hyosung Group, Hankook Tire, and others.

In the late 1960s, Samsung Group entered into the electronics industry. It formed several

electronics-related divisions, such as Samsung Electronics Devices Co., Samsung Electro-

Mechanics Co., Samsung Corning Co., and Samsung Semiconductor & Telecommunications

Co., and made the facility in Suwon. Its first product was a black-and-white television set.

1970 to 1990

The SPC-1000, introduced in 1982, was Samsung's first personal computer (Korean market only)

and uses an audio cassette tape to load and save datathe floppy drive was optional

In 1980, Samsung acquired the Gumi-based Hanguk Jeonja Tongsin and entered the

telecommunications hardware industry. Its early products were switchboards. The facility were

developed into the telephone and fax manufacturing systems and became the center of Samsung's

mobile phone manufacturing. They have produced over 800 million mobile phones to date. The

company grouped them together under Samsung Electronics Co., Ltd. in the 1980s.

After Lee, the founder's death in 1987, Samsung Group was separated into four business groups

Samsung Group, Shinsegae Group, CJ Group and Hansol Group.Shinsegae (discount store,

department store) was originally part of Samsung Group, separated in the 1990s from the

Samsung Group along with CJ Group (Food/Chemicals/Entertainment/logistics) and the Hansol

Group (Paper/Telecom). Today these separated groups are independent and they are not part of

or connected to the Samsung Group. One Hansol Group representative said, "Only people

ignorant of the laws governing the business world could believe something so absurd," adding,

"When Hansol separated from the Samsung Group in 1991, it severed all payment guarantees


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and share-holding ties with Samsung affiliates." One Hansol Group source asserted, "Hansol,

Shinsegae, and CJ have been under independent management since their respective separations

from the Samsung Group." One Shinsegae department store executive director said, "Shinsegae

has no payment guarantees associated with the Samsung Group."

In the 1980s, Samsung Electronics began to invest heavily in research and development,

investments that were pivotal in pushing the company to the forefront of the global electronics

industry. In 1982, it built a television assembly plant in Portugal; in 1984, a plant in New York;

in 1985, a plant in Tokyo; in 1987, a facility in England; and another facility in Austin, Texas in

1996. As of 2012, Samsung has invested more than US$13 billion in the Austin facility, which

operates under the name Samsung Austin Semiconductor LLC. This makes the Austin location

the largest foreign investment in Texas and one of the largest single foreign investments in the

United States.

1990 to 2000

Samsung Group headquarters at Samsung Town, Seoul

Samsung started to rise as an international corporation in the 1990s. Samsung's construction

branch was awarded a contract to build one of the two Petronas Towers in Malaysia, Taipei 101

in Taiwan and the Burj Khalifa in United Arab Emirates.[25] In 1993, Lee Kun-hee sold off ten

of Samsung Group's subsidiaries, downsized the company, and merged other operations to

concentrate on three industries: electronics, engineering, and chemicals. In 1996, the Samsung

Group reacquired the Sungkyunkwan University foundation.

Samsung became the largest producer of memory chips in the world in 1992, and is the world's

second-largest chipmaker after Intel (see Worldwide Top 20 Semiconductor Market Share


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Ranking Year by Year). In 1995, it created its first liquid-crystal display screen. Ten years later,

Samsung grew to be the world's largest manufacturer of liquid-crystal display panels. Sony,

which had not invested in large-size TFT-LCDs, contacted Samsung to cooperate, and, in 2006,

S-LCD was established as a joint venture between Samsung and Sony in order to provide a stable

supply of LCD panels for both manufacturers. S-LCD was owned by Samsung (50% plus 1

share) and Sony (50% minus 1 share) and operates its factories and facilities in Tangjung, South

Korea. As on 26 December 2011 it was announced that Samsung had acquired the stake of Sony

in this joint venture.

Compared to other major Korean companies, Samsung survived the 1997 Asian financial crisis

relatively unharmed. However, Samsung Motor was sold to Renault at a significant loss. As of

2010, Renault Samsung is 80.1 percent owned by Renault and 19.9 percent owned by Samsung.

Additionally, Samsung manufactured a range of aircraft from the 1980s to 1990s. The company

was founded in 1999 as Korea Aerospace Industries (KAI), the result of merger between then

three domestic major aerospace divisions of Samsung Aerospace, Daewoo Heavy Industries, and

Hyundai Space and Aircraft Company. However, Samsung still manufactures aircraft engines

and gas turbines.

2000 to 2013

The Samsung pavilion at Expo 2012.

In 2000, Samsung opened a computer programming laboratory in Warsaw, Poland. Its work

began with set-top-box technology before moving into digital TV and smartphones. As of 2011,

the Warsaw base is Samsung's most important R&D center in Europe, forecast to be recruiting

400 new-hires per year by the end of 2013.


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In 2001 Samsung Techwin became the sole supplier of a combustor module for the Rolls-Royce

Trent 900 used by the Airbus A380, the world's largest passenger airliner.[30] Samsung Techwin

is also a revenue-sharing participant in the Boeing's 787 Dreamliner GEnx engine program.

The prominent Samsung sign in Times Square, New York City

In 2010, Samsung announced a 10-year growth strategy centered around five businesses. One of

these businesses was to be focused on biopharmaceuticals, to which the company has committed

2.1 trillion. In December 2011, Samsung Electronics sold its hard disk drive (HDD) business

to Seagate.

In the first quarter of 2012, Samsung Electronics became the world's largest mobile phone maker

by unit sales, overtaking Nokia, which had been the market leader since 1998. In the August 21

edition of the Austin American-Statesman, Samsung confirmed plans to spend 3 to 4 billion

dollars converting half of its Austin chip manufacturing plant to a more profitable chip. The

conversion should start in early 2013 with production on line by the end of 2013. On March 14,

2013, Samsung unveiled the Galaxy S4.

On 24 August 2012, 9 U.S jurors ruled that Samsung had to pay Apple Inc. US$1.05 billion in

damages for violating six of its patents on smartphone technology. The award was still less than

the US$2.5 billion requested by Apple. The decision also ruled that Apple didn't violate five

Samsung patents cited in the case. Samsung decried the decision saying that the move could

harm innovation in the sector. It also followed a South Korean ruling stating that both companies

were guilty of infringing on each other's intellectual property. In the first trading after the ruling,

Samsung shares on the Kospi index fell 7.7%, the largest fall since October 24, 2008, to


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Chapter 3

ORGANISATIONAL DEVELOPMENT AN ACQUISITIONS

Organization development (OD) is a deliberately planned, organization-wide effort to increase an

organization's effectiveness and/or efficiency. OD theorists and practitioners define it in various

ways. Its multiplicity of definition reflects the complexity of the discipline and is responsible for

its lack of understanding. For example, Vasudevan has referred to OD being about promoting

organizational readiness to meet change,[citation needed] and it has been said that OD is a

systemic learning and development strategy intended to change the basics of beliefs, attitudes

and relevance of values, and structure of the current organization to better absorb disruptive

technologies, shrinking or exploding market opportunities and ensuing challenges and chaos. It is

worth understanding what OD is not. It is not training, personal development, team development,

HRD (human resource development), L&D (learning and development) or a part of HR although

it is often mistakenly understood as some or all of these. OD interventions are about change so

involve people - but OD also develops processes, systems and structures. The primary purpose of

OD is to develop the organization, not to train or develop the staff.

Samsung's R&D organization has three layers. The Samsung Advanced Institute of

Technology (SAIT), Samsung's technology competitiveness in core business areas, identifies

growth engines for the future, and oversees the securing and management of technology. The

R&D centres of each business focus on technology that is expected to deliver the most promising

long-term results. Division product development teams are responsible for commercialising

products scheduled to hit the market within one or two years.


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Samsung has made the following acquisitions and attempted acquisitions:

RolleiSwiss watch battle

Samsung Techwin acquired a German camera-maker Rollei in 1995. Samsung (Rollei) used its

optic expertise on the crystals of a new line of 100% Swiss-made watches, designed by a team of

watchmakers at Nouvelle Piquerez S.A. in Bassequort, Switzerland. Rolex's decision to fight

Rollei on every front stemmed from the close resemblance between the two names and fears that

its sales would suffer as a consequence. In the face of such a threat, the Geneva firm decided to

confront. This was also a demonstration of the Swiss watch industry's determination to defend

itself when an established brand is threatened. Rolex sees this front-line battle as vital for the

entire Swiss watch industry. Rolex has succeeded in keeping Rollei out of the German market.

On March 11, 1995 the Cologne District court prohibited the advertising and sale of Rollei

watches on German territory.

Fokker, a Dutch aircraft maker

Samsung lost a chance to revive its failed bid to take over Dutch aircraft maker Fokker when

other airplane makers rejected its offer to form a consortium. The three proposed partners

Hyundai, Hanjin and Daewoo have notified the South Korean government that they will not

join Samsung Aerospace Industries Ltd.

AST Research

Samsung bought AST (1994) and tried to break into North America, but the effort floundered.

Samsung was forced to close the California-based computer maker following mass defection of

research staff and a string of losses.


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FUBU clothing and apparel

In 1992, Daymond John had started the company with a hat collection that was made in his

house in the Queens area of New York City. To fund the company, John had to mortgage his

house for $100,000. With his friends, namely J. Alexander Martin, Carl Brown and Keith Perrin,

half of his house was turned into the first factory of FUBU, while the other half remained as the

living quarters. Along with the expansion of FUBU, Samsung invested in FUBU in 1995.

Lehman Brothers Holdings Asian operations

Samsung Securities was one of a handful of brokerages looking into Lehman Brothers Holdings.

But Nomura Holdings has reportedly waved the biggest check to win its bid for Lehman

Brothers Holdings Asian operations, beating out Samsung Securities, Standard Chartered, and

Barclays. Ironically, after few months Samsung Securities Co., Ltd. and City of London-based N

M Rothschild & Sons (more commonly known simply as Rothschild) have agreed to form a

strategic alliance in investment banking business. Two parties will jointly work on cross border

mergers and acquisition deals.

MEDISON Co., Ltd.Ultrasound Monitors

In December 2010, Samsung Electronics Co. bought MEDISON Co., Ltd., a South Korean

medical-equipment company, the first step in a long-discussed plan to diversify from consumer

electronics.


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Grandis Inc.memory developer

In July 2011, Samsung announced that it had acquired spin-transfer torque random access

memory (MRAM) vendor Grandis Inc. Grandis will become a part of Samsung's R&D

operations and will focus on development of next generation random-access memory.

Samsung and Sony joint ventureLCD display

On December 26, 2011 the board of Samsung Electronics approved a plan to buy Sony's entire

stake in their 2004 joint liquid crystal display (LCD) venture for 1.08 trillion won ($938.97

million).

mSpot, IncMusic Service

On May 9, 2012, mSpot announced that it had been acquired by Samsung Electronics with the

intention of a cloud based music service. The succeeding service was Samsung Music Hub.

NVELO, Inc.Cache Software Developer

In December 2012, Samsung announced that it had acquired the privately held storage software

vendor NVELO, Inc., based in Santa Clara, California. NVELO will become part of Samsung's

R&D operations, and will focus on software for intelligently managing and optimizing next-

generation Samsung SSD storage subsystems for consumer and enterprise computing platforms.

NeuroLogicaPortable CT scanner

In January 2013, Samsung announced that it has acquired medical imaging company

NeuroLogica, part of the multinational conglomerates plans to build a leading medical

technology business. Terms of the deal were not disclose.


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Ju-Hwa Yoon

President & CFO, DMC Management Office, Samsung Electronics,

President & CFO, Corporate Management Office, Samsung Electronics (2011~Present)

President & CFO, Corporate Management Office, Samsung Electronics (2010~2011)

President & Head, Corporate Auditing Team, Samsung Electronics (2009~2009)

Head, Management Support Team, Corporate Executive Staff, Samsung Electronics,

Head, Global ERP Task Force, Corporate Executive Staff, Samsung Electronics (2007~2009)

Head, Management Support Team, Corporate Executive Staff, Samsung Electronics,

Head, Management Innovation Team, Corporate Executive Staff, Samsung Electronics

(2004~2007)

Head, Management Support & Innovation Team, Corporate Executive Staff, Samsung

Electronics (1998~2004)

Head, Management Support & Innovation Group, Corporate Executive Staff, Samsung

Electronics (1996~1998)


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Han-Joong Kim

Professor Emeritus, Yonsei University (2012~Present)

Chairman, Korea University Sport Federation (2010~2012)

Trustee, Korean Council for University Education (2008~2012)

President, Yonsei University (2008~2012)

Chairman, Board of Directors, The Korean Society for Preventive Medicine (2006~2008)

Professor, Department of Preventive Medicine & Public Health (1982~2012)

Byeong-Gi Lee

Professor of Electrical Engineering, Seoul National University (1986~Present)

President, IEEE Communications Society (2010~2011)

Commissioner, Korea Communications Commission (2008~2010)


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President, Korea Information and Communication Society(KICS) (2007~2007)

President, Korea Society of Engineering Education(KSEE) (2003~2004)

Vice Chancellor for Research Affairs, Seoul National University (2000~2002)

Member of Technical Staff, AT&T Bell Laboratories (1984~1986)


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Chapter 5

VISION AND MISSION STATEMENT OF SAMSUNG

"We will devote our human resources and technology to create superior products and services,

thereby contributing to a better global society."

Since its founding in 1938, SAMSUNG has maintained a mission statement that responds both to

its own change, and to new developments in the world: "Economic contribution to the nation",

"Priority to human resources", "Pursuit of rationalism". Each slogan represents significant

moments in SAMSUNG's history, reflecting different stages of the company's growth from a

domestic industrial leader into a global consumer electronics powerhouse.


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As stated in its new motto, Samsung Electronics' vision for the new decade is, "Inspire the

World, Create the Future."

This new vision reflects Samsung Electronics commitment to inspiring its communities by

leveraging Samsung's three key strengths: New Technology, Innovative Products, and

Creative Solutions. -- and to promoting new value for Samsung's core networks -- Industry,

Partners, and Employees. Through these efforts, Samsung hopes to contribute to a better world

and a richer experience for all.

As part of this vision, Samsung has mapped out a specific plan of reaching $400 billion in

revenue and becoming one of the worlds top five brands by 2020. To this end, Samsung has also

established three strategic approaches in its management: Creativity, Partnership, and

Talent.

Samsung is excited about the future. As we build on our previous accomplishments, we look

forward to exploring new territories, including health, medicine, and biotechnology. Samsung is

committed to being a creative leader in new markets and becoming a truly No. 1 business going

forward.


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Chapter 6

CHALLENGES FACED BY SAMSUNG

1. NOKIA

Nokia Corporation is a Finnish multinational communications and information technology

corporation that is headquartered in Espoo, Finland. Its principal products are mobile

telephones and portable IT devices. It also offers Internet services including applications,

games, music, media and messaging, and free-of-charge digital map information and

navigation services through its wholly owned subsidiary Navteq Nokia owns a company

named Nokia Solutions and Networks, which provides telecommunications network

equipment and services.

As of 2012, Nokia employs 101,982 people across 120 countries, conducts sales in more than

150 countries, and reports annual revenues of around 30 billion. By the fourth quarter of

2012, it was the world's second-largest mobile phone maker in terms of unit sales (after

Samsung), with a global market share of 18.0%. Now, Nokia only has a 3% market share in

smartphones. They lost 40% of their revenue in mobile phones in Q2 2013. Nokia is a public

limited-liability company listed on the Helsinki Stock Exchange and New York Stock


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Exchange. It is the world's 274th-largest company measured by 2013 revenues according to

the Fortune Global 500.

Nokia was the world's largest vendor of mobile phones from 1998 to 2012.However, over the

past five years its market share declined as a result of the growing use of touchscreen

smartphones from other vendorsprincipally the iPhone, by Apple, and devices running on

Android, an operating system created by Google. The corporation's share price fell from a

high of US$40 in late 2007 to under US$2 in mid-2012. In a bid to recover, Nokia announced

a strategic partnership with Microsoft in February 2011, leading to the replacement of

Symbian with Microsoft's Windows Phone operating system in all Nokia smartphones.

Following the replacement of the Symbian system, Nokia's smartphone sales figures, which

had previously increased, collapsed dramatically. From the beginning of 2011 until 2013,

Nokia fell from its position as the world's largest smartphone vendor to assume the status of

tenth largest.

2. SONY

Sony Corporation, commonly referred to as Sony, is a Japanese multinational conglomerate

corporation headquartered in Knan Minato, Tokyo, Japan.Its diversified business is


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primarily focused on the electronics, game, entertainment and financial services sectors.The

company is one of the leading manufacturers of electronic products for the consumer and

professional markets. Sony is ranked 87th on the 2012 list of Fortune Global 500.

Sony Corporation is the electronics business unit and the parent company of the Sony Group,

which is engaged in business through its four operating segments Electronics (including

video games, network services and medical business), Motion pictures, Music and Financial

Services.These make Sony one of the most comprehensive entertainment companies in the

world. Sony's principal business operations include Sony Corporation (Sony Electronics in

the U.S.), Sony Pictures Entertainment, Sony Computer Entertainment, Sony Music

Entertainment, Sony Mobile Communications (formerly Sony Ericsson), and Sony Financial.

Sony is among the Worldwide Top 20 Semiconductor Sales Leaders and third-largest

television manufacturer in the world, after Samsung Electronics and LG Electronics.

The Sony Group is a Japan-based corporate group primarily focused on the Electronics (such

as AV/IT products and components), Game (such as PlayStation), Entertainment (such as

motion pictures and music), and Financial Services (such as insurance and banking) sectors.

The group consists of Sony Corporation (holding and electronics), Sony Computer

Entertainment (games), Sony Pictures Entertainment (motion pictures), Sony Music

Entertainment (music), Sony/ATV Music Publishing (music publishing), Sony Financial

Holdings (financial services) and others.


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3. L.G.

LG Corporation is a South Korean multinational conglomerate corporation. It is the fourth-

largest company of its kind in South Korea, following Samsung Group, Hyundai Motors Group

and SK Group. Its headquarters are situated in the LG Twin Towers building in Yeouido-dong,

Yeongdeungpo-gu, Seoul. LG makes electronics, chemicals, and telecom products and operates

subsidiaries such as LG Electronics, Zenith, LG Display, LG Telecom and LG Chem in over 80

countries.

LG Corp. founder Koo In-Hwoi established Lak-Hui Chemical Industrial Corp. in 1947 In 1952,

Lak-Hui (pronounced "Lucky", currently LG Chem) became the first Korean company to enter

the plastic industry. As the company expanded its plastic business, it established GoldStar Co.

Ltd. (currently LG Electronics Inc.) in 1958. Both companies Lucky and GoldStar merged and

formed Lucky-Goldstar.

GoldStar produced South Korea's first radio. Many consumer electronics were sold under the

brand name GoldStar, while some other household products (not available outside South Korea)

were sold under the brand name of Lucky. The Lucky brand was famous for hygiene products

such as soaps and HiTi laundry detergents, but the brand was mostly associated with its Lucky


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Chapter 7

ACHIEVEMENTS OF SAMSUNG

On Dec. 30, 1968, Samsungs founding Chairman Byung-chull Lee and other executives

gathered for a meeting where a crucial decision to enter the electronics business was made. Thus

onJan. 13, 1969, Samsung Electronics was born.

By November 1970, Samsung succeed in producing 12-inch black-and-white TVs, and just two

months after the production it exported the TV sets toPanama.

In 1972, Samsung set up a Braun-tube bulb factory and after extensive investment and expansion

of production lines, it also established two black-and-white TV lines with a capacity to produce

480 thousand TVs a year.

As Samsung established its own production system and accumulated technology, it pushed to

produce its own TV model. And in April 1973, the first Samsung-developed TV product was

born: the 19-inch transistor black-and-white Maha 506.

Following the success of the Maha 506 TV, Samsung expanded into other electronics categories

such as refrigerators, air conditioners, washing machines, fans, electric stoves and more.

Samsung reached the 5 million milestone in the number of TVs produced in December 1978. In

May of the same year, Samsung had already expanded its black-and-white TV lines to become

the worlds No. 1 manufacturer. Also in December 1978, Samsungs overall exports reached 100

million dollars.

Samsung Electronics merged Samsung Semiconductor in January 1980 in a combination that

helped create synergies in production of both electronics and semiconductor parts. The merger

set the foundation for Samsung to become a global leader that it is today in semiconductors.
http://www.samsungvillage.com/blog/2011/01/origin-of-samsung-tv-the-panama-canal.htmlhttp://www.samsungvillage.com/blog/2011/01/origin-of-samsung-tv-the-panama-canal.html


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So it was to be decided by vote and Samsung and Electronics won the most votes. Therefore,

it was decided to name their corporation Samsung Electronics, so January 13th, 1969, Samsung

Electronics Corporation was born.

Samsung Electronics recruited 137 trainees in 1969. They were sent to Sanyo Electric Co.

and NEC Corporation in 1970. There they learned about producing radio condenser speakers,

deflecting coils (DY), transformers (FBT) from Sanyo while they learned about Braun tube,

vacuum tube, discharge tube and others from NEC. After their training, they worked as technical

professionals at Samsung Electronics.

As Confucius said, study the past, if you would divine the future. Maybe learning about the

history of Samsung Electronics could offer hints to where the company is headed for the future.


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Chapter 8

SWOT ANALYSIS

SWOT analysis (alternatively SWOT Matrix) is a structured planning method used to evaluate

the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business

venture. A SWOT analysis can be carried out for a product, place, industry or person. It involves

specifying the objective of the business venture or project and identifying the internal and

external factors that are favorable and unfavorable to achieving that objective. The technique is

credited to Albert Humphrey, who led a convention at the Stanford Research Institute (now SRI

International) in the 1960s and 1970s using data from Fortune 500 companies.[1][2] The degree

to which the internal environment of the firm matches with the external environment is expressed

by the concept of strategic fit.

Setting the objective should be done after the SWOT analysis has been performed. This would

allow achievable goals or objectives to be set for the organization.

Strengths:characteristics of the business or project that give it an advantage over others

Weaknesses: are characteristics that place the team at a disadvantage relative to others

Opportunities: elements that the project could exploit to its advantage

Threats:elements in the environment that could cause trouble for the business or project

Identification of SWOTs is important because they can inform later steps in planning to achieve

the objective.


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that is a mirror reflection of the make-up of society insofar as race, gender, sexual orientation

etc.

Skills and qualifications: as industries move from manual to more managerial professions so

does the need for more highly skilled graduates. If the market is "tight" (i.e. not enough staff for

the jobs), employers must compete for employees by offering financial rewards, community

investment, etc.

In regard to how individuals respond to the changes in a labor market, the following must be

understood:

Occupational structure: the norms and values of the different careers within an organization.

Mahoney 1989 developed 3 different types of occupational structure, namely, craft (loyalty to

the profession), organization career (promotion through the firm) and unstructured

(lower/unskilled workers who work when needed).

Generational difference: different age categories of employees have certain characteristics, for

example, their behavior and their expectations of the organization.

In the recent time human resource management (HRM) has assumed new prominence because of

continuing concerns about global competition, the internationalisation of technology and the

productivity of labour. It is argued that these market imperatives require manager to change the

way in which they manage the employment relationship in order to allow for the most effective

utilization of human resources (HR). Managers and academics argue that the traditional

approaches to managing workers are inappropriate and can no longer deliver the goods

(Betcherman et al., 1994, p. 2). Harnessing workers full potential and producing the attitudes

and behaviour considered necessary for a competitive advantage require three aspects of


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STRATEGIC REPORT OF SAMSUNG

1. AbstractSamsung is best known as one of the worlds biggest sellers of smart TVs, it is also the

worlds second biggest handset seller after Nokia. To explore Samsungs success this

report develops a theoretical framework for analyzing their strategies in UK market, it

first explores the external conditions for Samsung Company and their competitors. A

major part of the report is devoted to analyzing Samsungs resent strategies and

perceiving the strategic issue they have. The strategy suggestion is applied in the last past

of the report to solve the strategic issue.

2. Samsungs Mission and Vision

Samsung mobiles vision is guided by a extraordinary vision that to lead the digital

convergence movement. Samsung believe that through technology development today,

they find the solutions address the challenges of tomorrow. They also aim to develop

innovative technologies and efficient processes that create new markets, enrich peoples

living and continue to make Samsung a market leader with high reputation. All they do is

leaded by their mission: to be the best Digital-Company. Samsung became a global

corporation by facing challenges. In past years, their dedicated people would keep to

embrace many challenges and come up with new ideas to develop products and services

that lead in their markets (Samsung UK website, 2010).


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3. External Analysis

External analysis is very important to the firm to understand the market environment and

find their opportunities and threats.

4. PEST Analysis

Political, economic, social and technological factors can direct and indirect affects

Samsung. Political: Confusion over the rate of growth for short-term future, plus

confusion as result of different policies from political parties. They announced reduction

of import tax for international company therefore if they win the election Samsung can

have incentive tax.


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CHAPTER 10

CORPORATE STRATEGY OF SAMSUNG

Just a few years ago Samsung was struggling to catch up in the smartphone market.

Now it makes more of them than anybody else and has Apple on the back foot, in

addition to being the world's largest technology company by revenue.

The heavily hyped launch of its flagship Galaxy S4 smartphone is the latest step as it tries

to overtake Apple, and they've gone all out with a massive screen and impressive new

features.

Here are some of the core pillars of Samsung's strategy.

The ultimate fast follower

Samsung is better than anybody else at learning from its competitors. "A market reader is

sort of the classic fast follower," explains Barry Jaruzelski, senior partner at Booz&Co

and the co-author of the Global Innovation 1000. "It doesn't mean they ignore their

customers, but they're very attuned to what competitors are doing and what other people

are bringing to market first and observing what seems to be gaining traction, then very

rapidly coming up with their own version of that innovation."

Samsung's aggression has gotten it into trouble in the past, losing a high profile case to

Apple for imitating its design. But the reputation hit and the fine were a small price to

pay.


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The company pivots and produces quickly, coming out with a variety of devices. It sees

what the market responds to, pushes successes, and kills failures. And now, rather than

just providing a cheaper and lesser iPhone, it's differentiated itself with larger screens,

different features, successful marketing, and delivering what consumers want.

The Note is a perfect example. The company found through market research that Asian-

language speakers in particular wanted a device that they could hand-write on, because

drawing characters is easier with a pen. The result was a combination phone/tablet

("phablet") that's been an unexpected hit.

The company combines market research and unparalleled execution with, despite its

reputation, a lot of innovation of its own. Samsung was second only to IBM in the

number of U.S. patents filed last year, and filed 150 patents related to the new technology

in the Galaxy S4.

When you've got cash, use it aggressively, or risk falling behind

Apple has a huge cash pile, but Samsung seems to be more willing and able to put their

money to use. Samsung's research spend is 5.7 percent of its revenue, compared to 2.4

percent for Apple.

Samsung is a diverse business with chips, displays, and other technology. This pays

dividends, allowing it to compete on price and increasingly, offer features Apple hasn't

gotten too. Although, many would argue that Apple chooses not to include certain

features Samsung offer.

When Samsung wants to get behind something, it can do so with considerable weight.


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That's certainly been the case for its flagship Galaxy phones. Samsung's advertising push

has been absolutely massive. In the U.S., where the iPhone is still pretty dominant, last

year the company increased its advertising budget five-fold, to $401 million from $78

million. That's $68 million ahead of Apple, and more than $200 million ahead of its

nearest competitor in the Android market. And that's only a fraction of its ad budget.

This push has paid off too, with Samsung scoring many points at Apple's expense.

Supply chain and distribution

Samsung is so much more than a smartphone-maker. It is a conglomerate, a

manufacturer, and the world's largest chip-maker. It makes many of the components that

go into its smartphones giving it a cost advantage and allowing it to be much more

flexible in terms of what it produces and when.

This table from JP Morgan makes it clear how much Samsung produces on its own. SEC

stands for Samsung Electronics Corporation and SDC for Samsung Display Corporation

(click to expand):

Apple, on the other hand, though it has a diverse, well-managed, and futuristic supply

chain, relies on external partners, which can lead to delays and difficulties.

And though Apple is trying to move away from Samsung chips, the company's

smartphone competitors still have to buy them. In a way, they help finance its cost

advantage.


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As Christopher Mims at Quartz points out, the company also has a huge advantage in

distribution. The company's new Galaxy S4 will be available on 36 percent more carriers

and in 55 percent more countries than the iPhone 5.

Samsung's in more places than Apple with a brand new phone, as well as lower end

options for the developing world.

The management lesson: You have to commit

Samsung is very much a Korean company, and has been, at times, accused of being

overly hierarchical and dominated by its founding family. That also provides some

advantages. You can fault some things the company does, but not its ambition or

commitment.

When Samsung decides to get into a business, it goes hard. Within the past decade, it

went from just beginning to invest in making batteries for digital devices and flash

memory to being a global leader.

Former P&G CEO A.G. Lafley argues that companies fail because they're hesitant to

make decisions and hesitant to commit because they fear failure and want simply to play

rather than win.

Samsung wants to be the dominant player in the smartphone market, it has a strategy to

do so, and it's using every tool it has as it attempts to succeed at it.

The future

The key test of whether Samsung can move from a close-and-gaining second to

becoming truly dominant is whether it can deliver products that are truly game-changing.


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To really start pulling customers away from iPhones in droves, it needs to differentiate

itself beyond marketing and a bigger screen.

It's aggressively investing in Silicon Valley with several big campuses to help it start to

lead in software as it already does with hardware.


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CHAPTER 11

CONCLUSIONS

During visit in Samsung company, I learned that how can management be

effective in organization. How it can help its employees in their professional and also in

social life.

Samsung company should take into consideration the opportunities and threats as discuss

in SWOT analysis. This will help the company to maintain its brand image for long

time.

I want to conclude my project by saying that marketing strategy is 4Ps such as

Product, Promotion, Price, & Place. These are all important aspects of marketing

strategy, without these aspects of marketing strategy marketing is not possible. Marketing

Strategy is all about marketing a product. In these marketing-mix sellers, retailers, buyers, &

wholesalers plays an important role.

Date post:	04-Jun-2018
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