Table of content: Page No.

1. Background history 1

2. About Report 2

3. Management of Samsung Electronics 3

I) Human Resource Management 4

II) Green Management 5

4. Financial Statement 6

5. Marketing Strategy 9

6. Manufacturing 10

7. Stakeholders 12

8. S.W.O.T Analysis 13

9. Globalization 15

10. Corporate Social Responsibilities (CSR) 18

11. Ownership Structure 19

12. Conclusion 20

13. Appendix and References 21

I) Mission Statement 22

II) Techniques 22

III) References 22

Executive summary:

This report is about the Electronic Appliance maker, Samsung. In this paper, we analyzed the

company and its strategies from a variety of perspectives including agenda analysis. The

company‟s strategy, its competitors and its entry strategy into foreign markets have also been

analyzed. The focus throughout the paper would be on understanding the company from

various perspectives. Charts are also provided with details from various categories of their

operation.

Samsung is an ideal company for analysis because of its unique and innovative approach to

business. The paper is divided into separate parts that are concerned with the introduction to

the company; with the policies and the strategies of the company following as well as the

conclusion about the future outlook of it. Here, we showed the company profile of Samsung

Electronics and its vision and mission Strategies in the market, displayed the varieties of

product such as LCD TV, Mobile Phones, Microwave Oven, MP3 players, Laptops, Cameras

etc.

Limitation: The period of the project is not sufficient to study all the factors in deep.

Background history:

Unlike other electronic companies Samsung origins were not involving electronics but other

products.

In 1938 the Samsung's founder Byung-Chull Lee set up a trade export company in Korea,

selling fish, vegetables, and fruit to China. Within a decade Samsung had flourmills and

confectionary machines and became a co-operation in 1951.

From 1958 onwards Samsung began to expand into other industries such as financial, media,

chemicals and shipbuilding throughout the 1970's. In 1969, Samsung Electronics started

producing what Samsung is most famous for- Televisions, Radio's, Computer components

and other electronics devices. In 1993 Samsung developed the 'lightest' mobile phone of its

era, the SCH-800.

1987 founder and chairman, Byung-Chull Lee passed away and Kun-Hee Lee took over as

chairman. In the 1990's Samsung began to expand globally building factories in the US,

Britain, Germany, Thailand, Mexico, Spain and China until 1997.

In 1997 nearly all Korean businesses shrunk in size and Samsung was no exception. They

sold businesses to relieve debt and cut employees down lowering personnel by 50,000.

However, Samsung managed to curb this and continued to grow.

Then they developed smart phones and a phone combined mp3 player towards the end of the

20th century. To this date Samsung was dedicated to the 3G industries. They are now

manufacturing various electronics at a speed to keep up with consumer demand.

About This Report

This is the Sustainability Report of Samsung Electronics.

Samsung Electronics continues its endeavors to overcome the global economic crisis and to

solidify its global presence and reputation as a world leading company. This report conveys

the efforts and sustainability performances of the company during the year 2008. Opinions

and suggestions for the improvement of this report are welcomed.

This report includes the company‟s profiles as well as its economic, environmental, and

social performance indicators to ensure the full sharing of information across all sectors. The

financial data included in this report generally represents the corporation‟s consolidated

figures that encompass the performances of Samsung Electronics‟ overseas plants. The

environmental and social performance information mainly reflects the domestic subsidiaries

of Samsung Electronics. Based on the analysis results, major sustainability issues were

identified for this report. Samsung Electronics will continue to strengthen its data collecting

process to expand the scope of its reporting for future periods.

Management of Samsung Electronics:

With determined dedication and a universal outlook, the management of Samsung Electronics

is leading the way to evolution and invention. Innovation, alliance and excellence are the

characteristics of leadership at Samsung.

Dr. Oh-Hyun Kwon is Vice Chairman of the Device Solutions of Samsung Electronics.

Samsung‟s Device Solutions unit consists of three major businesses: Memory, System LSI

and LED. Dong-Soo Jun is president of the Memory Business of Samsung Electronics‟

Device Solutions. Dr. N-S(Stephen) Woo is President of the System LSI Business of

Samsung Electronics‟ Device Solutions. Dr. Nam-Seong Cho is Executive Vice President of

the LED Business of Samsung Electronics Device Solutions. These respectable leaders are

contributing for the overall development of Samsung Electronics.

The Board of Directors (BOD) is the highest decision-making body of Samsung. Currently,

the BOD is composed of seven members, with four of them being outside directors. The

outside directors hold the majority of the BOD. The outside directors gather together at

separate meetings to discuss overall management issues and work on recommendations. All

directors are prohibited from engaging in business activities within the same industry without

the approval of the board.

At Samsung Electronics, their board follows effective and responsible corporate governance

systems that support top management and maximize corporate value through logical and

well-founded decision-making. Their tasks include the establishment of basic management

policies and guidance on strategic business decision. They are committed to providing

outstanding corporate and stakeholder value by keeping accurate checks and balances.

Samsung Electronics should promote outstanding corporate and stakeholder value in order to

achieve record performance in their management. By doing all the management tasks

proficiently, they can strengthen their competitive lead in both services and content.

Human Resource Management

Employees are the most valuable assets as they perform their business activities based on the

principles of human respect. Samsung Electronics follows the international labour standards

and local labour regulations to increase employee value, while eliminating discrimination

based on gender, race, religion, social position etc. They are attracting and keeping the most

talented employees to increase the development of their company. They also offer their

employees various training programs to foster a globally competent workforce

Green Management

Samsung Electronics operates Environment and Safety Committee to implement Green

Management. They are committed to the development of environment-friendly products and

reduction in greenhouse gases. They are addressing the climate change and increasing the

number of eco-friendly products. Samsung Electronics inspires implementation of Green

Management program and evaluates its results under the involvement of employees and

executives putting head of the workplace in main position.

The outstanding management performance of Samsung Electronics will bring it closer to its

vision of becoming one of the worlds most trusted and respected companies.

Financial Statement:

Despite the rapidly changing climate and challenging management environment, we are

increasing corporate value and achieving record performance.

TO THE BOARD OF DIRECTORS AND SHAREHOLDERS OF SAMSUNG

ELECTRONICS CO., LTD.

They have audited the accompanying consolidated financial statements of Samsung

Electronics

and its subsidiaries which comprise the consolidated statements of financial position as of

December 31, 2010, December 31, 2009, and January 1, 2009, the related consolidated

statements of income, comprehensive income, changes in equity and cash flow for the years

ended December 31, 2010 and 2009, and the related notes.

Our responsibility is to express an opinion on these consolidated financial statements based

on our audit. We did not audit the financial statements of certain subsidiaries, who‟s financial

Statements represent 9.2% and 10.0% of the consolidated total assets as of December 31,

2010 and 2009, respectively, and 23.2% and 24.8% of the consolidated total sales for the year

then ended, respectively.

2012 Samsung Electronics Financial and Strategic Highlights

- Increases of 13% in sales and 58% in operating profit over 2009

- Demonstrated continuous increases in sales, operating profit and net income growth ratios

- Maintained sound financial structure with 50.3% liability ratio, 66.5% capital adequacy

ratio and 18.0% return on equity ratio

- Estimated global brand value at USD 19.5 billion, up 11% over 2009. Currently ranked 19th

among the top 100 global brands in the

2010 Business Week and Inter brand survey

The sales of the business were affected. Below we have shown the charts of sales and profit

and operating profit and net income of the recent years

Divisional/Geographical Performance

(1) Sales by Division (Sales between parent and subsidiaries included)

(2) Operating Profit by Division

Graphs of Net Sales, Total Assets, total liabilities, total employees

2011 Financial Overview (WON/DOLLARS/EUROS)

AMOUNTS IN BILLIONS WON DOLLARS EUROS

Net Sales* 254,561.5 220.1 165.9

Total Assets 391,391.9 343.7 258.7

Total Liabilities 230,688.5 202.6 152.5

Total Stockholder's Equity 160,693.5 141.1 106.2

Net Income* 24,497.9 21.2 16.0

Marketing strategy:

Samsung Electronics has proven to the business world that they are one of the most

prestigious technology companies in the industry. Samsung has paved the way for the future

in electronics. It still have very detailed strategies and tactics that will give an increased

competitive advantage over its competition. The main advantage that the company has over

its competitors is that it has a product range that is marked by a high degree of quality and

responsiveness to the needs of the customer. With the beginning of innovative products,

Samsung took the market for consumer electronics and managed to gather the maximum

market share. The company‟s main emphasis the past couple years has been on integration,

union, and encouraging innovation.

While Samsung has shifted to a more strategic focus on its marketing efforts by allocating

resources based on need and maximized projected returns instead of the historic percentage

of sales. Despite its “supplier” mentality, Samsung has seen great successes.

They know how to launch their products and attract their customer. They have demonstrated

their new products which are state of the art in Consumer Electronic Show 2012 and

Samsung Forum 2012 most of them being available by the end of 2012. By performing in

CES they are upgrading their working capability with so many hopes and can get connected

with the consumers directly that help them to understand the future demand of the consumers.

This process is helping the company to plan the marketing strategies ahead.

After adapting the Google „Android‟ as their OS. The demand of their products increased

which influence marketing strategies that added more concentration on their marketing field

to stable the interest of the customer on their product.

In the future, they plan to enter the 3D video gaming market with a partnership with

Microsoft. This will give them access to all of Microsoft‟s gaming technology. Seeing these

policies we think the Company should introduce low cost products to satisfy the needs of low

or middle class and can distribute free key chain, calendar, t-shirts for making brand popular

among people.

Manufacturing:

In recent times Samsung is expanding its manufacturing plant around the world. On 3 April,

2012 Samsung announced that it will spend $7 billion to build a NAND memory chip plant in

China. Samsung always tries manufactures innovative products and present it to their

consumer according to their demands. Their presentation in the Consumer Electronic Show

(CES) 2012 and in their „Samsung Forum 2012‟ shows how much they are into

manufacturing innovative products. They are manufacturing world class products like

LED/LCD displays, Air cooler, Camera, Laptops, house hold machineries like washing

machine and so on. Their recent success is in the field of manufacturing smartphones and

LCD/Led display. Samsung uses state of the art technologies to manufacture their products

ensuring their quality. Their capabilities helped them when they only started in the television

manufacturing industry competing with leading company like Sony yet now Samsung is in a

leading position. Also Samsung is giving a head to head competition to its competitors like

Nokia, Sony, LG, and HP etc.

Ensuring high quality products at an affordable rate is the best thing about Samsung

manufacturing. As Samsung electronics expanded their products in every phase of day to day

life the manufacturing of these products also created the urge to expand their manufacturing

plant around the world. Their production network is in Europe, Commonwealth of

Independent States (CIS), China, Japan, North America, Central Asia, Southwest Asia,

Southeast Asia, Korea and Latin America which helps them to meet with the product quantity

demand of the entire customer. Their products are of two categories by the demand of usage-

1. Business Products-

Hospitality Solution

Semiconductor

LCD panel

Telecommunication

Storage

Fiber optics

2. Consumer Products-

Mobile Phones

Television

MP3

Cameras

Computers

Printers

Home Appliances

by categorizing it helps to set how and in which quantity the products needs to be produced.

Picture: Some of Samsung Electronics products

STAKEHOLDERS:

Their major stakeholders include customers, shareholders, investors, employees, suppliers,

industrial organizations, expertise groups, civic groups and the local communities. Their

stakeholders are those who have either direct or indirect impact on

engagement activities of Samsung Securities or those that they have social

responsibilities to. They have close relationship with the Company in all aspects of

management The Company is building deeper trust with the stakeholders by respecting their

concerns and integrating them into the management activities,

S.W.O.T Analysis:

Strengths

Has a heavy assets of technology and considerably known for

its technologically advanced products.

It‟s a strong corporate brand.

Produces one of the best quality products.

Good understanding about the customers and offer goods and

services according to their needs.

Has a huge capital to invest in technology, design and human

resource.

Good understanding about the Human Resource needs and

their priority, thus giving it more importance.

Highly focused towards innovation and to improve their

products.

Weaknesses

Lacks product differentiation.

Not proactive about introducing new products.

Products not being user friendly make it hurdles Samsung to

be a market leader.

Perceived as low quality products compared to other

competitor‟s products because of their low price.

Opportunities

Making it distinctive from competitors.

Providing distinguish services to increase its customer base.

By introducing unique products and variation with the existing

products.

Mobile sector being one of their booming section, introducing

more user friendly and high specificities based low price

mobile phones.

Threats

Competitors being dominant in home appliance industry e.g.

Sony, Panasonic, LG etc.

Competitors being dominant in mobile and other industries

e.g. Nokia, Apple, HP, RIM etc.

Increasing rivalry in the telecommunication industry is making

it hard for them to be establishing in it.

Marketing strategies is weak compared to their rivals.

Globalization:

Samsung has been moving with a continuous growing brand value in the world through

advanced technologies in fashion, semiconductors, plant construction, finance, hotels and

many more for more than 70 years. Samsung is the one and only industry where innovation

and quality is always the first priority. Globally Samsung has been ranked amongst the top 30

largest employers in the world with more than 245000 employees.

Samsung global has more than 429 offices/facilities 68 countries, including 30 Manufacturing

Subsidiaries, 51 Sales Subsidiaries, one manufacturing and sales subsidiaries, two

distribution centers, six design centers, 18 R&D centers, 77 Branch Offices and others.

With a strong commitment towards R&D, Samsung has invested $5.3bn in 2005 gradually

increasing to $6.2bn in 2009. Samsung electronics is one of the world‟s premier consumer

electronics/IT companies, currently operating in 124 various countries across the globe. With

a total sales of US$137 billion Samsung electronics is the #1 IT company in terms of revenue

and one of the fastest global brands. They produce a wide range of products that include

cellular phones, 3D LED TVs and monitors, digital household appliances, digital cameras,

computers and network devices as well as components like semiconductors and flat panel

LCDs.

In the past few years, when Samsung (as a mobile) was a relatively new company which

people didn‟t know much about. And thus the sales were poor compared with the other

competitors in the market such as Nokia and Apple. But with time when people came to no

more about Samsung as a whole, and started trusting the company and their products,

Samsung gradually showed a great deal of improvement in the market. Below in the graph is

a little example of how Samsung‟s smartphone eventually took over Nokia and Apple.

SAMSUNG’S GLOBAL MARKET SHARE

Products

Samsung's

Global Market

Share

Competitors Market

Share Year

DRAM 34.3% Hynix 21.6% Q1 2009

NAND Flash 40.4% Toshiba 28.1% 2008

Large-size LCD Panel 26.2% LG Display 25.8% 2009

February

PDP panel 30.5% LG Display 34.8% Q1 2008

Active-Matrix OLED 90.0% LG Display - Q2 2008

Lithium-ion battery 19% Sanyo 20% Q2, 2009

LCD Monitor 16.1% Dell 14.6% 2008

Hard disk drive 9.5% Seagate Technology 34.9% 2007

Multifunction printers 16.4% HP 19.2% Q1 2009

Television sets (LCD, PDP,

CRT) 23% LG Electronics 13.7 %

Q3'09

Revenue

Share

French

door refrigerator (U.S.

market only)

18.79% Whirlpool 23.83% 2009 January

Mobile phone 21% Nokia 37.8% Q3 2009

Digital camera 9.1% Canon 19.2% 2007

Drillship 80%

Daewoo

Shipbuilding &

Marine Engineering

20% 2000~2007

Corporate Social Responsibility (CSR):

Samsung Electronics makes every effort to pay attention to the views of internal and external

stakeholders and combine them into CSR initiatives. They believe that assimilation of CSR

into business activities is needed for sustainable growth. Intended for organized operation of

CSR, the CSR Liaison Office, which reports immediately to the CEO, was established in

January 2009. An official CSR meeting is held twice a year that decides CSR policies, checks

performances of each division, and comes up with follow up action items and measures

reflective of the major CSR issues and trends. Keeping contacts to its stakeholders to

assemble and reflect their opinions in the company‟s upcoming CSR activities, Samsung

Electronics will continue to share and implement its CSR initiatives. They certify that

business activities are intimated connected with their CSR activities in response to

stakeholder demands and major issues. Samsung has included CSR course in major training

programs for employees to focus on the importance of CSR. They try to keep advanced CSR

trends and issues, while completely abiding by universal regulations.

Samsung Electronics should encourage CSR activities among business partners because

business partners‟ contribution in the CSR initiatives is essential to building sustainable

supply chain for the company.

Ownership structure:

The recent structure of the company‟s ownership shows that the numbers of common shares

outstanding and preferred shares outstanding are 147,299,337(86%) and 22,833,427(13%),

respectively. the number of total treasury stocks of Samsung electronics is

19,892,307(11.7%), with 16,912,614(11.5%) common shares and 2,979,693(13.0%) of

preferred shares. As of the end of December, 2011, the number of total shares outstanding of

Samsung Electronics is 170,132,764.

Conclusion:

Samsung is a Korean company which has risen to prominence in many fields over years. The

size and the scope of this company is beyond imaginable limits as they are one of the most

diverse companies in the world and is mostly known for their technology division such as cell

phones, radios, MP3 players, computer screens etc.

The company was launched in the late 1930s to be the largest company in Korea and the

second largest company in the WORLD. Apart from electronics, which is most profitable

and successful in the world, the company also has a hand in finance, chemicals, retail, and

straight-up entertainment.( All with a great deal of success)

The company employs many of the South Korea‟s finest employees, including many with

PHD level education. The company has been around for some time now and although there

has been some controversy about their strength and power in South Korea, there is no

denying that they benefit the economy greatly by providing jobs, exporting their services, and

doing all the other things that a small company would not be equipped to do. With many

people worldwide using their products, particularly the electronics such as cell phones and

MP3 players. It‟s not surprising that the company continues to thrive in the way it does and

may be always continue.

Appendix and References

Samsung follows its goals, vision and has its own technologies that let it to go ahead.

Goals:

Its goal is to develop innovative technologies and efficient process that creates new markets,

enriches people‟s lives and continue to make the company a trusted market leader.

Vision:

Samsung is guided by a singular vision-to lead the digital convergence movement. . Their

vision for the new decade is, "Inspire the World, Create the Future”. This includes Samsung

Electronics‟ commitment to inspiring its communities by “New Technology,” “Innovative

Products,” and “Creative Solutions.” It has sated this motto as VISION 2020.

Mission statement:

Everything they do in a Samsung is guided by its mission- to be the best “DIGITAL E-

COMPANY”.

Techniques:

To go ahead or way to lead SAMSUNG people use some techniques. They lead the way in

brand marketing, manufacturing, research, and development design. For this they understand

the tomorrow‟s markets and consumers along with collaborate for greater synergy or group.

Get connected with consumers lifestyle and make smart choices that grow markets. They

create such a value that cant be touched.

References:

For this report we have used some references and these are

Samsung sustainability report 2009 and 2011

www.samsung.com

http://www.wikipedia.org/

Google.