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Strategic Management Final Report

Strategic Management Final Report

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0 INTRODUCTION TO PROJECT STUDY:
1.1 AIMS AND OBJECTIVES OF PROJECT
The main aim or the goal of this project is to gain good marks and going 1 step ahead towards professionalism. And know the stratergy of the company and how the company functions. The aim behind the visit to the company was to practically observe the working and functioning of the company. Project aims are a statement of the overall ³Why´ of the project. A project aim is a statement starting with the words: ³The aim of this project is«´ That statement tells the reader what your overall goal is, what it is you want to achieve. It does not go into details or describe specific tasks. Project objectives tell the ³How´ of the project aim. You want to achieve your goal and the objectives state how this will be done ± what major tasks will be undertaken and what your major targets are.

1.2 SCOPE OF PROJECT
1. To understand and study in general the management of working capital 2. To analyze the distribution of gross working capital into various components 3. To calculate the operating cycle period 4. To analyze the liquidity position of the company by analyzing the various ratios.

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1.3 METHODOLOGY OF PROJECT STUDY & PRIMARY DATA COLLECTION FROM
Personal tool was the main tool for the collection of primary data and information. This study has brought in use very little primary data in relation with the elements of working capital

SECONDARY DATA COLLECTION FROM
Since the study is based on the financial aspects of the company so the report of the organization, Trial balance, income and expenditure accounts of the company brought in use. Besides the company profile and theoretical aspects taken from the secondary data are practically implemented. Also the various types of ratios were studied which helps in analyzing the financial statements.

METHODOLOGY
Research in common parlance refers to a search for knowledge. Research may be defined:As ³manipulation of things, concepts or symbols for the purpose of generalizing to extent, correct or verify knowledge, whether that knowledge aids in construction of theory or in the practices of an art´

RESEARCH OBJECTIVES
The main objectives of research in management are:1. To verify and to test the existing facts and theories 2. To gain familiarity with a phenomenon or to achieve new insights into it
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3. To establish generalization in various fields of knowledge 4. To bring to limelight information that could have never been brought to the knowledge under normal course.

1.4 LIMITATIONS OF PROJECT STUDY

The most important limitation is that we did not get sufficient time to complete the project. Time limit is a drawback which we had to face. If we would have had more time i.e. the time period would have been extended from 12 days to a month we could have presented the project in a better and more professional manner.

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Economic and Legal). Informatics. Samsung's powerful Strategic Planning Office. GE/McKinsey portfolio analysis. COPE analysis. and Technological). STEER analysis (Socio-cultural. Economic. A balanced scorecard is often used to evaluate the overall performance of the business and its progress towards objectives. projects and programs. Technological. often in terms of projects and programs. which are designed to achieve these objectives.2. Social. Technological. is destined to disappear. Recent studies and leading management theorists have advocated that strategy needs to start with stakeholders expectations and use a modified balanced scorecard which includes all stakeholders. and then allocating resources to implement the policies and plans. and Regulatory factors). developing policies and plans. involving utilization of resources. STRATEGIC FREMWORK & MANEGEMENT PROCESS 2. Economic. and making decisions on allocating its resources to pursue this strategy. vision and objectives. It entails specifying the organization's mission. which has played a key role in the group's management structure. PEST analysis (Political. Political. Opportunities. and EPISTEL (Environment. to enhance the performance of ¿rms in their external environments.1. Samsung's 4|Page . Weaknesses. INTRODUCTION OF STRATEGIC MANAGEMENT & PLANNING: Strategic management is a field that deals with the major intended and emergent initiatives taken by general managers on behalf of owners. Strategic planning is an organization's process of defining its strategy. Ecological. including SWOT analysis (Strengths. including its capital and people. and Threats). or direction. Various business analysis techniques can be used in strategic planning. Social.

and personnel management. Thereafter the secretarial office became a powerful organization overseeing the group's overall operations. µLeading the Digital Convergence Revolution´. 5|Page . After the 1997 crisis. The two key strategic methods employed are organic growth and strategic alliances. y Current Strategy One of the key areas of strategy for any business is how it intends to grow. Leveraging these resources provides Samsung Electronics with a deep understanding of the fast changing market and makes them distinct in their competency to launch products to the market quicker than competitors.secretarial office was originally in charge of protocol and simple assistance for the chairman and began to play a role as the command tower for group management from the second half of 1967. audit. Strong leadership and focus on growth linked with its international networks and experience within the industry allows an end to end process to be owned and run by Samsung Electronics. the office turned into "Restructuring Headquarters" and later renamed Strategic Planning Office. including finance. Despite its name changes. This is illustrated in the LCD TV market for which Samsung Electronics develops and manufactures its own TV computer chips. Under the new reform plan. the office's role as a group command center has largely remained unchanged. This is central to Samsung Electronics as it wants to be a leader as highlighted by their corporate vision. examination of new business projects. Samsung is to dismantle the group command center and instead operate a small-scale administrative office designed to support a council of affiliate CEOs.

y O r g y Organic Growth Organic growth is defined as the growth rate that a company can achieve by increasing output and enhancing sales as opposed to profits or growth acquired from takeovers. Finally. Coyle (2000) argues that organic growth allows a firm to develop market position over the long term. Also. the external environmental analysis pointed towards a growth in the LCD market and the electronics industry as a whole thereby reinforcing the suitability of this growth strategy. organic growth allows funds to be focused on other areas such as R&D. 6|Page . mergers or acquisitions (M&A). This seems to fit well with Samsung Electronics current strategic position as it is the industry leader and has the competencies to grow into other markets. although SEC has large cash reserves. can help to achieve growth much cheaper than M&A and is well suited to growing markets.

to gain skills. This is especially true when entering a new market/country which may require deep local knowledge that Samsung Electronics lacks. a leading company specialising in growth strategies. It could be said that Samsung Electronics does not need much skills or technology as they are arguably the most innovative and therefore any alliance would be disadvantageous because less competent competitors could learn from them. these are critical factors in sustainable organic growth.However. Also. and to share fixed costs and resources. is this sustainable? Based on the internal-environment analysis Samsung Electronics has leaders focused on growth. Samsung Electronics growth is sustainable but it may not always be the best strategy to adopt. an appropriate culture for growth as well as excellent bonds with customers. 2009). 7|Page . Samsung Electronics tries to balance this problem with strategic alliances. According to Bleeke and Ernst (1992) alliances are an efficient ways to enter new markets. in most cases the sharing of costs and resources provides a winwin situation as illustrated by the Samsung Electronics and Sony alliance. organic growth can be used alongside alliances when entering new markets to minimise the learning curve and associated costs. technology. or products. So yes. y Strategic Alliances Strategic alliances are formal relationships between two or more parties to pursue a set of agreed upon goals while remaining independent organisations (Bleeke and Ernst. effective sales and unrivalled competencies in innovating. Nonetheless. Since 2001 Samsung Electronics agreed 29 different alliances (About Samsung. 1992). However. the applicability of this growth strategy when expanding operations to emerging markets like China and India is questionable as most firms would be imitators and mutual benefit for Samsung Electronics would most likely not be achieved. According to Forum (2008).

This document outlines. a firm would then undertake an environmental scanning within the purview of the statement. strategic business unit objectives (both financial and strategic). the raison d'etre of an organization. Strategic formation is a combination of three main processes which are as follows: y Performing a situation analysis. mission statements (the role that the organization gives itself in society). it specifies the scope of activities an organization wishes to undertake. self-evaluation and competitor analysis: both internal and external. and tactical objectives. some are in the short-term and others on the long-term. Concurrent with this assessment. overall corporate objectives (both financial and strategic). in essence.2. STRATEGY FORMATION: The initial task in strategic management is typically the compilation and dissemination of a mission statement.2. both micro-environmental and macroenvironmental. This involves crafting vision statements (long term view of a possible future). These objectives should be parallel to a time-line. Additionally. objectives are set. coupled with the markets a firm wishes to serve. Following the devising of a mission statement. y 8|Page .

Resourcing Resourcing is literally the resources required to put the strategy into practice. it must then be put into practice. or has/requires unique strategic capabilities (.3.e. Typically. resourcing and utilising change management procedures: Organizing Organizing relates to how an organizational design of a company can fit with a chosen strategy. STRATEGIC IMPLEMENTATION: Once a strategy has been identified. and to ICT-based implements. an SBU will be created (which often has some degree of autonomous decision-making) if it exists in a market with unique conditions. an organization must be wary of forces that may legitimately seek to obstruct such changes. It is important then that effectual change management practices are instituted. and any strategic business units (SBUs) that require to be formed. ranging from human resources. These encompass: 9|Page . the skills needed for the running and competition of the SBU are different). to capital equipment. Change management In the process of implementing strategic plans.2. spans of control. This concerns the nature of reporting relationships. This may involve organising. i.

In addition to the above structure that positions Samsung very well in order to achieve its future and present growth goals. 10 | P a g e . perceived loss of job security. etc. slowly limiting the negative effects that a change may uncover. there should be orientation towards appreciation of how this can transform their business and help them achieve the overall strategy. telecom. LCD and digital media and each of these four divisions have their well-defined strategies. Only when the senior management and then the leadership and managerial team realize the importance of this to overall strategy will this initiative work and hence the CEO should be the person championing this program. due to the strategic importance that this would play in the overall organizational strategy. Though Samsung would not have to change an of their operating procedures.) y Via change agency.y The appointment of a change agent. Though this would be an information technology initiative that is supposed to bring in organizational benefits. y Ascertaining the causes of the resistance to organizational change (whether from employees. At a group level Samsung being a very large conglomerate has separate businesses each which operate as separate entities with their own mission and strategic objectives. this initiative should be championed at the executive level so that it is given the due importance that is necessary to make this a success. and with its very high process orientation and customer focus. Samsung Electronics has restructured itself into four strategic divisions namely semiconductor. operational focus and critical success factors. as an individual who would champion the changes and seek to reassure and allay any fears arising. customers. the only other thing that Samsung would require would investment into information technology that would help it to mine the wealth of information that exists in the company come out with knowledge about the customers and the market that will give it additional insights to leverage its capabilities to ensure that it overachieves on its strategic objectives.

evaluation of the measurement system. Continuous improvement is implemented by a closed loop methodology consisting of a selection of critical parameters. Equipment Parameter Interlock and Process Output Interlock. The main purpose of the CIP activities is minimizing the variation around the target . 11 | P a g e . In order to achieve this goal. and at the right time to ensure customer satisfaction. In FAB. wafers are statistically monitored based on various test results and yields before assembly. Samsung Company continuously improves productivity by controlling the variation in various processes in a stable way. and reaction plan. Activities Real Time Monitoring (Activities for Special Causes):  Interlock System: Products and processes are monitored and controlled by automatic interlock systems throughout the manufacturing process.Samsung¶s Continuous Improvement Program (CIP) Samsung Company makes every effort to achieve excellent and consistent product quality at fair prices. At wafer sort. monitoring of critical parameters. a three stage protection system is working: Process Recipe Interlock (Incoming Materials and Recipe Check). process capability improvement.

particle. The idea is to construct predictive models that can forecast the electrical/physical parameters of wafers based on data collected from processing equipment. Virtual Metrology and Modeling: Virtual metrology is of great interest in semiconductor manufacturing process. With a help of statistical approach."Copy Intelligently´: Samsung Equivalence Test program checks the equivalency and non-equivalency of measurement data of output characteristics from "Copy Intelligently" activities. It includes short run. Company-wide Improvement Projects (Activities for Common Causes):  FAB Equivalency .   12 | P a g e . the APC combined with virtual metrology will lead to a shift from "Lot-to-Lot control" to "Wafer-to-Wafer control". small change detecting. Also. Statistical Process Control (SPC) and Advanced Process Control (APC): An advanced SPC system suitable for semiconductor manufacturing processes has been implemented and used for random trend monitoring. In this way. the APC system including real time control and run-to-run control is successfully used for controlling deterministic process behaviors. Furthermore. Its purpose is to lead us to make an action to standardize the output characteristics between lines or equipment. wafers or dies with latent risks can be effectively screened and dies can be binned according to potential risks. Statistical Post Processing: Statistical analysis of test results at wafer sort not only optimizes test effort but also gives useful information such as potential reliability and yield. actual measurements from wafers can be minimized or eliminated. and multivariate SPC modules.

Pierce and Robinson say that "to effectively direct and control the use of the firm's resources. and ultimately achieve organizational goals. institute strategic controls that monitor progress. and managing human resources. allocating resources. including such areas as the reward system. "almost all the management functions -planning. and innovation -are in some degree applied in the implementation process". motivating. The implementation activities are in fact related closely to one another and decisions about each are usually made simultaneously. developing information and decision process. must without a doubt have the best information system that would not only allow it to execute its organizational strategy but would also have features that would give it 13 | P a g e . I shall focus only on the factors that are most critical to effective implementation strategy.2. As Higgins has pointed out. Particularly. STRATEGIC EVALUATION & CONTROL The implementation of organization strategy involves the application of the management process to obtain the desired results. assignment of key managers. Strategy implementation is "the process of allocating resources to support the chosen strategies". Each of these management functions has been the subject of extensive writing and research by scholars and practitioners and has covered in management books. leadership styles. communicating. Samsung. approaches to leadership. controlling. This process includes the various management activities that are necessary to put strategy in motion. strategy implementation includes designing the organization's structure. directing. I have split these activities in the next chapters. and control systems are essential strategy implementation ingredients". information systems. rewards. Since full coverage of each management function is beyond the scope of this thesis. mechanisms such as organizational structure. and staffing. being one of the best known brands and also one that has witnessed very fast growth in recent times. leading.4. organizing. integrating. budgeting.

so that it can closely evaluate how it is progressing on its strategy and also bring in control when necessary and make changes to operational strategy whenever needed. The information technology system that it has and the data that it captures about performance should be objective. An µinside-out¶ perspective will be taken with theoretical frameworks being used to analyse and evaluate the corporate level strategy of Samsung Electronics followed by recommendations for future success. extract exceptions and take necessary corrective actions in the quickest possible time. The second part of the report will draw on findings from the internal and external environment. However to ensure that it is able to measure strategic factors. encourage a performance based rewards system and ensure very high motivation in its employees to ensure achievement of strategic objectives. 14 | P a g e .feedback and reporting capabilities on a real time basis that would ensure that Samsung can keep a very close track at required intervals on its strategic and operational objectives so that it can monitor and make necessary changes as and when required. financial and operational controls. the usage of the balance scorecard is recommended that would allow it to closely track strategic. unit. it has to leverage information technology especially data warehousing and data mining that can give it the capability to slice and dice real time data to ensure that it can generate real time reports. In addition to the information technology. To ensure that it can measure its performance at a granular level by which it can break down its objectives and measure and pinpoint at by area. Samsung should continue to invest in people. detailed that would give people insight into what is expected out of them so that they can put in their best to deliver the best performance. Samsung realizes that people are the biggest asset that it has which can be seen in their mission statement. The balance scorecard is an established and well known tool and should be used for evaluation on its progress on its strategic objectives. project or function.

On the other hand. An example of this is Samsung Electronics response to social and environmental consciousness shifts. Further. This is beneficial as customers will recognise the value being given. This means Samsung Electronics products will constantly be adapting to the trends of the external-environment and ultimately the customer.y Overall Evaluation of Strategic Choices The advantages of adopting a primarily low cost and differentiated strategy is that Samsung Electronics can achieve significant margins on their products without necessarily charging premium prices. reinforcing brand loyalty and increasing customer satisfaction. µYour responses should be different and better. This can squeeze margins especially in financially weak times like the present. reflected in their products as well as strategy. it is a strategy well suited to hypercompetitive environments as differentiation is key. Another problem with a differentiation strategy coupled with a cost leadership strategy is that customers can come to expect the best value. and the same¶ (Boar. However. the consistent focus on differentiation means there is constant innovation in products and within the firm. imitations in cost reduction can be minimised through strategic alliances with competitors. 15 | P a g e . the strategy fits the internal competencies of the business well which is extremely desirable because it means Samsung Electronics will be effective in implementing it. not cheaper. Samsung Electronics mitigates this by creating new markets through innovation and charging premiums for some key products. the problem in pursuing a cost leadership strategy is that these sources of cost reduction can be replicated by competitors which make it more important to continuously find ways of reducing cost. 1994). Else. they risk attack on several fronts by competitors pursuing Focus Differentiation strategies in different market segments. whilst pursuing a differentiation strategy Samsung Electronics needs to remain agile with their new product development processes. Also. faster. Furthermore. Finally. creating winwin situations.

Having said this. 16 | P a g e .Thus. the combined strategies employed by Samsung Electronics allow it to achieve sustainable growth and sustainable competitive advantages. there are still areas for improvement so recommendations will now be given.

Samsung. The Company is also engaged in solar cell business. as well as liquid crystal display (LCD) products such as LCD displays used for TVs. LTD. printers. communication systems and others. The End Product division manufactures and sells digital media products such as digital televisions (TVs). it sold its solar cell business to SAMSUNG SDI CO.3. is aiming to fuel its growth in the Indian market through new feature rich handset introductions. In January 2011. COMPANY PROFILE Samsung Electronics Co. is a Korea-based company principally engaged in the provision of consumer electronic products.. which is a dominant player in the colour and camera phone market. Samsung India gave a boost to its mobile distribution network by appointing the Bangalore based. it acquired a display technology firm. monitors. On July 1. smart phones. today enjoys a sales turnover of over US$ 1Bn in just a decade of operations in the country. notebook personal computers (PCs) and others. storages and others. Samsung India which commenced its operations in India in December 1995. Samsung has introduced 14 new advanced. as well as information and communication products such as third-generation (3G) phones. refrigerators and others. In the first half of this year itself. system large scale integrated circuit (LSI) products. 2011. Liquavista BV.1. air conditioners. The Component division manufactures and sells semiconductors such as memory chips. Last month. United Telelinks as its National Distributor for Mobile Phones in the country. monitors. innovative colour phones in the Indian market. INTRODUCTION TO BUSINESS COORPORATION (SAMSUNG ELECTRONICS) 3. Ltd.. 17 | P a g e . The Company operates its business under two divisions. strategic operator tie ups as well as by enhancing its penetration in the Indian market.

Refrigerators and Washing Machines is located at Noida. The openings on both ends of the ellipse where the letters ³S´ and ³G´ are located are intended to illustrate the company¶s openmindedness and the desire to communicate with the world. Samsung India currently employs over 1600 employees. The Samsung manufacturing complex housing manufacturing facilities for Colour Televisions. y Corporate name and logo Samsung Electronics¶ corporate name ³Samsung´ comes from the word ³three stars´ that shine brightly. excellence in customer service through technology. near Delhi. The hanja character ³sam´ has the double meaning of three and strong while ³sung´ connotes ³star´ and ³bright´ (or ³shining´). Samsung¶s logo design emphasizes flexibility and simplicity while conveying a dynamic and innovative image through the ellipse.Headquartered in New Delhi. meaning that it foretells success. the symbol of the universe and the world stage. Colour Monitors and Refrigerators are being exported to Middle East. Samsung ³Made in India´ Products like Colour Televisions. Samsung India has a network of 19 Branch Offices located all over the country. CIS and SAARC countries from its Noida manufacturing complex. The corporate name has auspicious meaning in it. Colour Monitors. The English rendering is a visual expression of its core corporate vision. 18 | P a g e . with around 18% of its employees working in Research & Development.

which are precisely what the company wishes to accomplish with its customers. and in keeping with the new focus on youthfulness in spirit. semiconductor. a company official explained. Samsung added a new digital imaging business division in 2010. IT solutions. The blue colour symbolizes stability and reliability. y Management and board of directors In December 2010. the network division and the digital imaging division experienced new appointments. merged in 2010) under the consumer electronics business division. consumer electronics. Samsung's December 2010 reorganization was as follows: Among the eight divisions. Samsung also reorganized its overseas marketing bases in line with changes in the market. some executives have even dyed their hair black. networking. while the remaining divisions were maintained in accordance with their strong results. It also stands for social responsibility as a corporate citizen. by merging its Digital Air Solutions Team and Samsung Electronics Gwangju (consumer electronics and air conditioners. The Set Top Boxes business was merged with the Visual Display Business Division. Chief Operating Operator and President. Samsung switched its management system from the single CEO system of last year under Choi Gee-Sung.  Chief Executive Officer. and wireless. The team was credited as being younger both in age and in outlook. Vice Chairman: Choi Gee-Sung  Chief Financial Officer: President Yoon Ju-hwa  Chief Operating Officer. and Lee Jae-Yong. including the existing display. and LCD divisions. and a combined China/Taiwan regional subsidiary. including a combined Britain/Continental Europe regional subsidiary. the colour that Samsung has had used in its logos for years. to a two person management team with Choi Gee-Sung. and now consists of eight divisions. President: Lee Jae-Yong 19 | P a g e . Samsung also reorganized its business organization to strengthen business synergies.The basic colour in the logo is blue. CEO and Vice President.

Director Kim Jin-an) CIS: Executive Director Seo Chi-won  Middle East: Executive Director Bae Gyeong-Tae  Africa: Executive Director Park Gwang-gi  Southeast Asia: Executive vice President Lee Jong-Seok  China: Executive Director Kim Yeong-Ha (newly appointed)  Korea: Executive Director Park Jae-Soon 20 | P a g e .Division heads  Semiconductor Division: President Kwon Oh-hyun  LCD Division: President Jang Won-ki  Visual Display Division: President Yoon Boo-keun  Mobile Communications Business: President Shin Jong-kyun  Telecommunication System Business: Executive vice President Kim Young-ki(newly appointed)  IT Solutions Business: Executive vice President Nam Seong-woo  Digital Appliances Business: Executive vice president Hong Chang-wan  Digital Imaging Business: Executive vice President Chung Hyun-ho(newly appointed) Regional Directors  North America: Executive vice President Kim Yangkyu (appointed)  Central and South America: Executive vice President Yoo Doo-yeong  Europe: Executive Director Kim Seok (newly appointed) (former Middle East supervisor.

3. ³Samsung cemented its leading position by taking a 35percent market share.     Entertainment solutions: TV. it began a strategy of ³Green Memory´ by which it increased the global DRAM market share to 33 percent. CD/DVD ROM CD/DVD Writer. It succeeded in 2010 in mass-producing 30 nm-class DRAMs and 20 nmclass NAND flashes. during the second quarter of 2010 Samsung Electronics took the top position in the DRAM segment due to brisk sales of the item on the world market. Audio Home Theater. Samsung Electronics adopted a new vision of becoming an innovative leader that creates new markets to keep pace with the fast changing global business environment  Semiconductors(DRAM) For more than 20 years since 1993. Digital Still Camera. In 2009. and Laser Printers & Laser Based MFPs Fax. CDMA. It also started mass-producing 30 nm-classes NAND flash memories in the same year whose world share rose as high as 42 percent. both of which were the first time in the world. Air Conditioner. Camcorder. Information solutions: Note PC. Communication solutions: GSM.2. According to market research firm Gartner. HDD. Samsung has kept the title of the world¶s largest memory chip maker. Gartner analysts said in their report. 21 | P a g e . Information solution as well as home solutions and communications. Refrigerator. Upon its 40th anniversary. Washing Machine. DVD Player. Digital Audio Player. Home solutions: Microwave Oven. Company Products: Samsung electronics is manufacturers and exporters in environment solutions. Monitors.

Samsung¶s compound annual growth rate (or CAGR) has been 13. Samsung had begun investment in the foundry business since 2006 and now positioned it as one of the strategic pillars for semiconductor growth.S.´ Samsung took the top slot in the ranking. it sold as many as 31 million flat-panel TVs. Another market researcher IC Insights predicted that Samsung would become the world¶s biggest semiconductor chip supplier by 2014 when it surpasses Intel. Samsung is forecast to take a 27-percent share for the global TV market in the second quarter of 2010 while LG Electronics accounts for 26.4 percent. Samsung will be able to catch up with Intel by the year 2014. and Micron.5 percent. The market researcher predicted that Samsung¶s leadership would continue in 2011 Samsung Electronics is creating a new market by introducing the ³FingerSlim´ LED TV. IC Insights also said that Intel¶s 2009 sales revenue had been 52 percent higher than that for Samsung. In 2009 alone. For the ten-year period from 1999 to 2009.  Televisions Four years in a row. it was sold more than 2 million units. followed by the 2007 Bordeaux model. compared with that for Intel paltry 3. The company retained 22 | P a g e . Samsung has taken the top spot in the world TV market. the super-slim LED TV has thus far been sold as many as 2. which brightens the future prospect. said Gartner.6 million units. the company had set the year¶s sales goal at 39 million units (including 10-million LED TVs). Extrapolating this trend to the future. maintaining the top position for four consecutive years in terms of world market share In early 2010. estimated IC Insights. According to Display Search. with the launch of best-selling items. In 2009. Samsung has led the flat-panel TV market for the past five years with the 2006 introduction of its ³Bordeaux´ line. followed by Hynix. but that differential narrowed to only 21 percent during the second quarter of 2010 another hitherto not-well-publicized area where Samsung had significant business in for years is the foundry segment. the U. Launched in March 2009.All the other suppliers had minimal change in their shares. the 2008 ³Crystal Rose´ line. Elpida. market research and consulting firm.2 percent of the market. and the ³Finger-Slim´ in 2009.

This company is developing new LED TV models too. energy efficiency and connectivity. Samsung showcased the new TV in the International Consumer Electronics Show (CES 2010) held in Las Vegas early this year. Samsung outstrips them by consistently introducing new. As rivals are jumping on the bandwagon. In 2009. One of the new products to watch is the full HD 3D LED TV that was launched the first time in March 2010. Today the company offers the full line of TVs. at many price points. Samsung TVs were selected in major U. U. Samsung¶s LED TV 7000 series was the winner of the ³Gadget Awards 2009´ by T3. Samsung became the industry-first 10-million-seller challenge. Combining LED features with 3D functionality. After expanding its TV line-ups. For example. the new 3D TV is expected to lead the market for years to come. better models.K. publications and retailers as the best TV of the year.the leading position by successfully selling more than 1 million 3D TVs as of August 2010.K. slim design. The T3 magazine in its news article on ³ten reasons why you should buy Samsung LED TV´ listed as the reasons superior picture quality. 23 | P a g e .¶s most prestigious electronics magazine.

the company introduced numerous mobile handset models including premium phones.  Mobile phones Samsung Electronics sold 235 million mobile handsets in the year 2009. 3D experience Samsung sold more than 1 million 3D TVs within six months of its launch.2%. Samsung sold 280 million mobile phones in 2010. Samsung¶s I9000 Galaxy S and S8500 Wave smartphones were the winners of the 2010 European EISA Awards in the smartphone and social media phone categories. full-touch screen phones. including 3D TV. and 3D glasses. Samsung¶s flagship mobile handset line is the Galaxy S. The company is trying offer the 3D content streaming service on its 3D TVs. Followed by US variants called Vibrant and Captivate in July and Epic and Fascinate in August and September. Samsung Apps. It was initially launched in Singapore. It sold more than 1 million units within the first 45 days of in the US alone. and download applications on the user¶s hard disk drive.23 million units). giving it a global market share of 22% trailing Nokia by 12%. Samsung¶s 2010 smartphone shares worldwide 24 | P a g e . Malaysia and South Korea in June 2010. 3D Blu-ray play. the Samsung 3D TV aims to allow the user to connect to its own online store. and environmentally friendly phones. The I9000 Galaxy S was recognized for its superior-quality screen and excellent connectivity while the S8500 Wave for its Bada operating system with unparalleled social networking and location-based services. Following the success of its ³Anycall´ brand mobile phones in Korea. Just like iTunes store. It also debuted the 3D Home Theater (HT-C6950W) that allows the user to enjoy 3D image and surround sound at the same time. 3D content. Overall. With the launch of 3D Home Theater. corresponding to a market share of 20. which many consider a direct competitor of Apple's popular iPhone. This is the figure close to what many market researchers forecast for the year¶s worldwide 3D TV sales (1. At the end of Q3 2010 Samsung had surpassed the 70 million unit mark in shipped phones. Samsung became the first company in the industry to have the full line of 3D offerings.

In the second quarter the company shipped as many as 3 million smartphones. The share in the United States has doubled in the second quarter of the year from the previous quarter. and Samsung is working to maintain its top position. Smartphone makers such as Apple. The company set the sales goal of the 2010 yearend at 20 million units. Samsung has kept supporting a wide range of operating systems in the market. RIM. Linux-based LiMo. it also supports other competing operating systems such as Symbian. 25 | P a g e . and HTC are busy coming up with new models. While many other handset makers tend to focus on supporting one (or at most two) operating system. a 173percent increase from the same period last year. An alliance of Chinese low wage and Taiwanese technology is catching up closely. Microsoft Windows Phone. Samsung faces challenges in the phone market. and Samsung¶s proprietary Bada. Although the Galaxy S adopts Google Android as the primary operating system.are rising rapidly.

Samsung employs a two-pronged strategy to emphasize its premium image for affluent consumers while marketing lower-end items with fewer bells and whistles for emerging economies consumers. Home appliances In 2009. In a market clearly split into two extremes of upmarket and budget categories. 26 | P a g e . airconditioners. the biggest increase in the industry. washing machines. Samsung held the leading position thanks to strong sales of its flagship items. European. the year of worldwide recession due to the 2008 global credit crisis. Zipel-brand side-by-side and kimchi refrigerators. and Russian markets. In the North American. as well as new steam microwave ovens and ³robot´ vacuum cleaners. Samsung¶s sales revenue rose 27 percent from the previous year. In the home market. it solidified its image as a premier home appliance maker by selling so many refrigerators.

Since then. the next-generation interchangeable 27 | P a g e . The N310 and the X420 are the third-generation laptops with all the advanced features as well as portability and connectivity. Thanks to these new market entrants. one of the next-generation strategic areas. Samsung launched mono-laser printer. the mobile telecom protocols such as Mobile WiMax and WiBro. it became No. Japan. In 2010. Samsung in 2009 took the third place in the compact camera segment. In the area of wireless networking. Digital cameras and camcorders are the areas Samsung cannot overlook. Since mobile telecom service providers in the United States. are in wide commercial use in many overseas markets. the world¶s smallest mono-laser printer ML-1660. and colour laser printers. In 2010. Samsung was ranked second in the world in the area of letter-size (A4) laser printers. and Russia began deploying the standards. all of which indicates that Samsung is growing fast in the printer business despite under the condition of severe economic recession. In other segments such as mono-laser printers. Samsung was first or second place in the world. Samsung could sell as many as 6 million laptops for the year. Other Products In 2009. multifunction printers. and colour laser multifunction printer CLX-3185. more and more providers (as many as 139 providers in 75 countries) are readying to take it up. and the HMX-H106 (64GB SSD-mounted full HD camcorder). the ST550 (the dual-LCD-mounted camera). netbook N210. The company has introduced several models in these areas such as the WB550 (the premium camera). including the premium laptop R580. Samsung introduced many new products boasting energy efficiency and eco-friendliness. the company launched the NX10. multifunction printer. the company has focused more on high-priced items. In the printer business division. 1 the first time in its history. Samsung introduced a host of new products including a premium mini-laptop computer N310 and slim-sized laptop X420. the protocols developed by Samsung and adopted in 2007 as international standards. and enterprise-use high-speed digital multifunction printer models. In the laser multifunction printer segment.

it is focusing more on selling external hard disk drives. the company started marketing the 320Gb-per-disk HDD. 28 | P a g e .5-inch disk. the premium MP3 player model. the largest in the industry. In the MP3 player segment. and the world¶s smallest DivX MP3 player R1. In 2010. Samsung in 2009 succeeded in grabbing more than 10 percent of the world market share by introducing a new hard disk drive capable of storing 250Gb per 2. In the area of storage media. In addition.lens camera. Samsung is doing quite well. thereby commencing the race toward the new category of camera market. It is launching a host of new products including the M1.

it will blaze a trail in the new fields of bio chips. u-health service and solar cells manufacturing in order to meet expanding needs of customers.3. The electronics giant pledged to record US$400 billion of sales. It also declared to rank worlds' 5th in brand value (Samsung ranked 19th in the Best Brand Survey 2009 by Interbrand). innovative products and creative solutions. it will further strengthen the analysis of customer groups and lifestyles. said the company. The company laid out six strategies to achieve these goals. environment and energy sectors. FUTURE STRATEGIC MANAGEMENT PLANNING OF SAMSUNG ELECTRONICS Samsung Electronics Aims at Top 10 Global Company by 2020 Samsung Electronics announced a plan at the 40th anniversary of the company's foundation to become one of the world's top 10 enterprises by 2020 through creative innovation. it will foster its number one position in the markets of memory chips. become among the world's top 10 respected companies.3. To realize these goals. and belong among the top 10 global companies by 2020. 29 | P a g e . bio. computers and printers. Samsung Electronics will expand its business to include medical. so facilitating the application of diversified marketing strategies. Create the Future. TVs and mobile phones while strengthening six other industries including those of home appliances. Samsung is determined to produce new technologies. LCDs. Under the new vision Inspire the World. y Third. so enhancing people's quality of life and contributing to global prosperity for years to come. medical appliances. y First. y Second. which are related to the enhancement of quality of life. and transform to become a toptier environment-friendly enterprise by then. become an unrivalled industry leader.

Samsung should actively join the international trend to protect the environment and seek harmony between human and nature.y Fourth. y Fifth. Meanwhile." through which outward assistance is welcomed. strengthen its corporate social responsibility and seek after environment-friendly business management. R&D partnerships are reinforced. the company declared that it would within 10 years record 100 trillion won of sales and become among the three biggest IT companies. it will pursue an "open innovation. and various collaboration channels with other organizations will be established. Vice Chairman Lee Yoonwoo said during the commemorative speech that Samsung Electronics should step up its efforts to produce differentiated products and create an advanced value chain should it want to secure a dominant position in the industry by 2020. it will cultivate a sound work environment by employing a creative performance evaluation system and an advanced personnel management. at the 40th anniversary were present about 400 employees including previous CEOs and ranking officials. The goals have been successfully achieved. 30 | P a g e . it will build mature symbiotic relationship with its collaborators. At the 30th anniversary of foundation in 1999. Video messages of congratulations from such international celebrities as President of the International Olympic Committee Jacque Rogge. he added. y Last. former New York City Mayor Rudolph Giuliani and star figure skater Kim Yu-na added to the amusement at the celebration.

providing new value to our customers. Having served Samsung for more than three decades. and was appointed President of the Digital Media Business in 2003. Choi began his career at Samsung C&T's International Trade Division in 1977. ³It is a great honor and pleasure for me to meet and speak to you in this online space. Mr. Under his leadership. helping Samsung to grow its market share to become the world's second-largest mobile phone maker. Choi was appointed President of the Digital Media & Communications Business in January 2009. Samsung became the global market share leader in both monitors and televisions.4 DIRECTORS SPEECH Gee-Sung Choi Gee-Sung Choi. I would like to take this opportunity to reaffirm Samsung Electronics¶ commitment to its guiding principles -. has been a member of the company's Board of Directors since March 2009. Samsung is now making bold investments in technology development and innovative products and services to bring this future one step closer to reality. and shareholders. and realizing a richer and more vibrant future for communities around the world. Samsung's commitment remains steadfast even in the face of the turbulent business conditions we witness today. Upon announcing Vision 2020 last year we strengthened our global competitiveness which allowed us to post the highest sales and profits and 31 | P a g e . the newly appointed CEO. He also played a key role in developing the company's Visual Display Division from 1998. Mr. He holds a degree in International Trade from Seoul National University.3. He previously held the position of President of the Telecommunication Network Business from January 2007.

I would like to thank you deeply on behalf of everyone at Samsung. This remarkable accomplishment could not have been possible without your strong interest and support." Through this vision. We look forward to many more years of doing our best to serve you as our customers. Create the Future.one that delivers new value through continuous innovation. Samsung is dedicated to being a globally respected company and a trusted corporate citizen-. and for this. I hope we can count on your continuous support and encouragement in the future. Our steady ascent in brand value has placed us shoulder to shoulder with the most trusted global companies.become an undisputed leader in electronics. and that fulfills its responsibility to the communities and stakeholders that have enabled it to succeed. and stakeholders.´ 32 | P a g e . 2009 was also special for Samsung as it marked the 40th anniversary of the company's founding. shareholders. Everyone at Samsung is working hard to realize this goal. Samsung is charging towards $400 billion in revenue in 2020. as well as for the announcement of a new vision: "Inspire the World.

ultimately moving SEC towards their corporate vision of µLeading the Digital Convergence Revolution¶. This diversification in growth strategy would allow SEC to expand their global presence as well as employ a greater diversity of people. Continue Heavy R&D and Innovation Continued investment in R&D especially in newer technologies such as OLED and nanotechnology will allow SEC to widen the cost leadership and differentiation gap meaning that they can produce more differentiated y 33 | P a g e . which is one of the leading companies in its field.2 Recommendations Three future strategies for continued success for SEC are given below. Conclusion The main aim or the goal of this project is to be familiar about the functionality of the company Samsung Electronics. y Diversify Growth Strategy for Emerging Markets Most emerging market competitors are imitators and SEC¶s current strategy of organic growth and strategic alliances is not very effective because mutual benefit is unlikely to occur. Moreover. SEC should focus on seeking out and acquiring resources in emerging markets. This would be applicable as it would provide immediate market presence and the essential deep local knowledge to effectively compete. The primary aim behind the visit to the company was to practically observe the working and functioning of the company.1. Mergers are not recommended as they too are unlikely to provide sufficient benefit to SEC who through acquisitions could fully own their own operations. Therefore. 4. the study also focuses on some other factors such as to know the stratergy of the company as well as to understand the strategic management of the company. This study involves a lot of co-operation and hardwork from all the team members in order to showcase the strategic management process.0 CONCLUSION & RECOMMENDATIONS 4.4.

This is especially important in the current economic climate where margins are restricted. This change however should be driven from SEC being an organisation that is environmentally and socially conscious in the way it conducts business so that the brand itself reflects customer preferences. SEC should also continue to highlight the quality and unique selling points of products in marketing campaigns to ensure consumers feel products are value for money even at a premium costs. Producing and promoting more environmentally friendly products should be made an important part of future innovation and R&D to adapt to changes in social and environmental consciousness of customers.products at lower costs. This will allow SEC to further reduce costs and increase competitive advantage. This should include both domestic and business to business buyers. SEC should aim to be the first to launch products at a premium price to maximise profits and continue innovating to ensure firstmover advantage is maintained. 34 | P a g e . y Enhance Brand Loyalty Retaining customers for longer by enhancing customer loyalty schemes will help increase switching costs and therefore reduce the costs of customer acquisition and reduce the complications of hypercompetitive environments. It is also recommended that SEC innovate internally and further invest in cutting edge IT resources to streamline processes and effectiveness. This will also allow SEC to create new markets and thus employ a more focused differentiation strategy so that price premiums can be charged.

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