UNIVERSITY OF MUMBAI

PROJECT ON

“STRATEGIC MANAGEMENT OF SAMSUNG COMPANY”

SUBMITTED

IN PARTIAL FULFILLMENT OF THE REQUIREMENTS

FOR THE AWARD OF THE DEGREE OF

BACHELOR OF MANAGEMENT

KHUSBU SHRAVAN SHAHU

PROJECT GUIDE

PROF.SUJATA YADAV

BACHELOR OF MANAGEMENT STUDIES

SEMESTER-VI

(2018-19)

A.E KALSEKAR COLLEGE OF COMMERCE AND MANAGEMENT,

NAWAYAT NAGAR, NALLASOPARA (WEST)-401203

1
 DECLARATION

I, the undersigned, MISS. KHUSBU SHAHU, a student of A.E KALSEKAR College of Arts

& Commerce, NALLASOPARA (West) T.Y.B.M.S. SEMESTER – VI hereby declare that

the work embodied in this project work titled “STUDY ON STRATEGIC

MANAGEMENT OF SAMSUNG COMPANY“, forms my own contribution to the

research work carried out under the guidance of Prof. SUJATA YADAV a result of my own

research work and has not been previously submitted to any other University for any other

Degree/Diploma to this or any other University. Wherever reference has been made to

previous works of others, it has been clearly indicated as such and included in the

bibliography.I, hereby further declare that all information of this document has been obtained

and presented in accordance with academic rules and ethical conduct.

Signature of the student

(KHUSBU SHAHU)

2
 SHURPARAKA EDUCATIONAL & MEDICAL TRUST’S

M. B. HARRIS COLLEGE OF ARTS &

A. E.KALSEKAR COLLEGE OF COMMERCE & MANAGEMENT.

(Affiliated to the University of Mumbai)

CERTIFICATE

We hereby certify that Mr./ Miss ________________________ __________

of S.E.M. Trust’s M.B. Harris College of Arts & A. E. Kalsekar College of Commerce &
Management studying in T.Y.B.M.S. has completed project on ________________ in
the academic year 2018-19. The information submitted in the project is true & original to
the best of our knowledge.

_____________ _____________
Project Guide Principal

Internal Examiner: ________

External Examiner: __________ College SeaL

3
 ACKNOWLEDGEMENT

To list who all have helped me is difficult because they are so numerous and the depth is so
enormous.

I would like to acknowledge the following as being idealistic channels and fresh dimensions
in the completion of this project.

I take this opportunity to thank the University of Mumbai for giving me chance to do this
project.

I would like to thank my Course Coordinator Prof. SUJATA YADAV their moral support
and guidance.

I would like to thank my Principal Dr. M.K AHMAD providing the necessary facilities
required for completion of this project.

I take this opportunity to thank our finance Coordinator ELAKSHI TAVDE.

I would like to thank my College Library, for having provided various reference books and
magazines related to my project.

Lastly, I would like to thank each and every person who directly or indirectly helped me in
the completion of the project especially my Parents and Peers who supported me
throughout my project.

4
 Table of Contents
SR. NO TOPICS PAGE NO.
CHAPTER-1
I. INTRODUCTION TO SAMSUNG COMPANY 6
II. LITRETURE REVIEW 8
III. OBJECTIVE OF STUDY 11
IV. ABOUT SAMSUNG 12

CHAPTER-2
I. HISTORY 13
II. BOARD OF DIRECTORS 19
III. VISION AND MISSION 28
IV. CHALENGES FACED BY SAMSUNG 30
V. ACHIVEMENTS OF SAMSUNG 36
CHAPTER-3
I. SWOT ANALYSIS 39

II. HUMAN RESOURCE STRATEGIES OF SAMSUNG 41

III. SCOPE OF STUDY 53
IV. LIMITATION OF STUDY 53
CHAPTER-4

I. RESEARCH AND METHODOLOGY 54

II. SUGESSTION 73
III. CONCLUSION 74
IV. BIBLIOGRAPHY 75

5
 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).

6
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.

7
 LITERATURE REVIEW

Theoretical Background of the Customer Satisfaction According to Philip Kotler,

“satisfaction is a person’s feelings of pressure or disappointment resulting from product’s perceived
performance (outcome) in relation to his or her expectations. Customer satisfaction is the
level of a person’s felt stateresulting from comparing a product’s perceived performance (outcome) in
relation to the person’s expectations”.

In today's increasingly competitive environment, quality services and customer

satisfactionare critical to corporate success. Delivering high quality services is closely linked
to profits,cost savings and market share. As stated by Piercy (1995),

it is striking that one of the fewelements that links many of the otherwise disparate
recommendations made to managers over the past several decades has been the need to focus
on customer satisfaction as a route tosustained high performance

. Companies should, to a much higher degree, be aware of thefact that customer

dissatisfaction equals both defection and long-term losses. As stated byvarious authors
(Ballantayne1996; Berry, 1986; Collier, 1994; Schneider and Bowen,1995): It is easier - and
much cheaper - to keep existing customers than to get new ones.Additionally, another benefit
from achieving satisfied customers is the fact that thewillingness to repurchase is much
higher for satisfied customers than for dissatisfied andindifferent ones. Despite this
awareness concerning the importance of customer satisfaction,it is beyond the ability of
many of today's service companies to maintain satisfied customers.Empirical surveys
concerning the proportion of satisfied versus dissatisfied customers revealthat a large amount
of service industries suffer from an insufficient number of satisfiedcustomers. A survey
conducted in the BD by Dr.siraj (2001) reveals extreme low levels of overall customer
satisfaction. He examined the overall customer satisfaction levels in variousservice branches:
Grocery chains (31%), fast-food outlets & Res. (24%), and banks (15%).One can argue that
these results constitute a low range of general service provision. However,even companies
which focus their efforts on achieving satisfied customers, rarely exceed acustomer
satisfaction ratio above 50-70% (Scheby, 1998). However , it is important toemphasize that it
is almost impossible to compare various levels of satisfaction, as thenumbers depend heavily
on the specific method of measurement. As a result, it is not possible to refer to the degree of
satisfied versus dissatisfied customers in absolute terms, but only inrelative terms.Based on

8
the results above, the impression rises that the discipline of satisfying customers isnot always
successfully translated into activities practiced by service companies. This facthas supported
our interest in conducting an investigation concerning the relationship betweenservice
providers and customer satisfaction.

Methods to Measure Customer Satisfaction

Companies use the following methods to measure customer satisfaction.

1) Complaints and suggestion system:

Companies obtaining complaints through their customer service centers, and

further suggestions were given by customers to satisfy their desires.

2) Customer satisfaction surveys:

Responsive companies obtain a direct measure of customer satisfaction by periodic

surveys.They send questionnaires to random sample of their customers to find out how they
feel about various aspects of the company‘s performance and also solicit views on t h e i r
competitor‘s performance. It is useful to measure the customer‘s willingness to
recommendthe company and brand to other persons.

3) Lost Customer Analysis:

Companies should contact customers who have stopped buying or who have switched
toanother supplier to learn why this happened.

4) Consumer Behavior Vs Consumption Behavior:

Consumer behavior refers to the manner in which an individual reaches decision related tothe
selection, purchases and use of goods and services. Walters and Paul says that,
consumer behavior is the process where by the individuals decides what, when, how and
from whom to purchase goods & services.Consumer behavior relates to an individual person
(Microbehavior)whereas
consumption behavior relates to and to the mass or aggregate of individuals (Macro behavior)
consumers behavior as a study focuses on the decision process of the individual consumer
or consumingunit such as the family.

9
2017-2018

In contrast the consumption behavior as a study is to do with the explanation of the

behavior of the aggregate of consumers or the consuming unit. Consumer is a pivot, around
which theentire system of marketing revolves. The study of buyer behavior is one of the
mostimportant keys to successful mark.Customer Satisfaction is seen as a key performance
indicator within business and is often partof aBalanced Scorecard.In a competitive
marketplace where businesses compete for customers, customer satisfaction is seen as a key
differentiator and increasingly has become akey element of business strategy."Within
organizations, customer satisfaction ratings can have powerful effects. They focus employees
on the importance of fulfilling customers‘ expectations. Furthermore, when these ratings dip,
they warn of problems that can affect sales and profitability. . . . These metricsquantify an
important dynamic. When a brand has loyal customers, it gains positive word-of-mouth
marketing, which is both free and highly effective."Therefore, it is essential for businesses to
effectively manage customer satisfaction. To beable do this, firms need reliable and
representative measures of satisfaction.In researching satisfaction, firms generally ask
customers whether their product or service hasmet or exceeded expectations. Thus,
expectations are a key factor behind satisfaction. Whencustomers have high expectations and
the reality falls short, they will be disappointed andwill likely rate their experience as less
than satisfying. For this reason, a luxury resort, for example, might receive a lower
satisfaction rating than a budget motel even though itsfacilities and service would be deemed
superior in ―absolute‖ terms.

The importance of customer satisfaction diminishes when a firm has

increased bargaining power.For example,cell phone plan providers,
such asAT&TandVerizon,participate in anindustry that is anoligopoly,where only a few
suppliers of a certain product or service exist.As such, many cell phone plan contracts have a
lot of fine printwith provisions that theywould never get away if there were, say, a hundred
cell phone plan providers, becausecustomer satisfaction would be way too low, and
customers would easily have the option of leaving for a better contract offer. There is a
substantial body of empirical literature thatestablishes the benefits of customer satisfaction
for firms.

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OBJECTIVES TO STUDY

1. To study the factors consideredwhile buying the handset

2. To know the awareness level towards SAMSUNG GAXAXY Y mobile in terms of
features, services etc.
3. To study the customer satisfaction level of the SAMSUNG GAXAXY Y mobile.
4. To study the customer requirement in future.
5. STo know the major competitors for SAMSUNG GAXAXY Y mobile.

IMPORTANCE:-

 This study helps in finding out prospective buyers of SAMSUNG GAXAXY Y

mobile.
 This study helps the organization to know the customer response.
 This study helps the customer to know the product better.

This study helps the company to know whether the customers are satisfied with product &
after sales services.

11
 ABOUT SAMSUNG

Samsung Korean pronunciation: [samsʌŋ]; means "tristar" in English) is a South

Korean multinational conglomerate headquartered in Samsung Town, Seoul. It comprises
numerous affiliated businesses,[1]most of them united under the Samsung brand, and is the
largest South Korean chaebol (business conglomerate).

Samsung was founded by Lee Byung-chul in 1938 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 1990,
Samsung has increasingly globalised its activities and electronics; in particular, its mobile
phones and semiconductors have become its most important source of income. As of 2017,
Samsung has the 6th highest global brand value.

Notable Samsung industrial affiliates include Samsung Electronics (the world's

largest information technology company, consumer electronics
maker and chipmaker measured by 2017 revenues), 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).[9] 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) and Cheil Worldwide (the world's 15th largest advertising
agency measured by 2012 revenues)

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.[16] Samsung's
revenue was equal to 17% of South Korea's $1,082 billion GDP.

12
 HISTORY OF SAMSUNG

1938 to 1970

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

In 1938 Lee Byung-chull (1910–1987) 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 group‘s 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

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.

13
In the late 1960s, Samsung Group entered into the electronics industry. It formed several

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

ElectroMechanics 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 data – the 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

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

14
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 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

15
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.

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]

16
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
1,177,000 Korean won. Apple then sought to ban the sales of eight Samsung phones (Galaxy
S

17
4G, Galaxy S2 AT&T, Galaxy S2 Skyrocket, Galaxy S2 T-Mobile, Galaxy S2 Epic 4G,

Galaxy S Showcase, Droid Charge and Galaxy Prevail) in the United States which has been

denied by the court.

On 4 September 2012, Samsung announced that it plans to examine all of its Chinese

suppliers for possible violations of labor policies. The company said it will carry out audits of

250 Chinese companies that are its exclusive suppliers to see if children under the age of 16

are being used in their factories.

In 2013 news outlets in Australia and New Zealand reported a number of Samsung washing

machines spontaneously catching on fire.

https://www.google.com/search?q=SAMSUNG&rlz=
SOURCE:

18
 BOARD OF DIRECTORS OF SAMSUNG

Gee-Sung Choi

• Head, Corporate Strategy Office (2012~Present)

• Vice Chairman & CEO, Samsung Electronics (2010~2012)

• President & CEO, Samsung Electronics (2010~2010)

• President & Head, Digital Media & Communications Business, Samsung Electronics

(2009~2009)

• Head, Telecommunications Networks Business, Samsung Electronics,

Head, Mobile Communications Division,

Head, Corporate Design Center (2007~2009)

• Head, Digital Media Business, Samsung Electronics (2003~2007)

• Head, Visual Display Division, Samsung Electronics (1998~2003)

• Head, Memory Sales and Marketing, Semiconductor Business, Samsung Electronics

(1994~1998)

19
 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)

20
 Dong-Min Yoon

• Attorney at Law, Kim & Chang Law Office (1999~Present)

• Director, Social Protection and Rehabilitation Bureau at the Ministry of Justice

(1998~1999)

• Chief, Planning Management Department at the Ministry of Justice (1997~1998)

• Public Prosecutor, Daejeon Supreme Public Prosecutor's Office (1995~1997)

In-Ho Lee

• Corporate Advisor, Shinhan Bank (2009~2011)

• Chief Executive Officer, Shinhan Financial Group (2005~2009)

• President & Chief Executive Officer, Shinhan Bank (1999~2003)

• Director & Deputy President (Executive Vice President), Shinhan Bank (1991~1999)

21
 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)

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

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

22
Key People Samsung Electronics Co. Ltd.

Board of Directors

Name/Title Current Board Membership

Sang-Hoon Lee, 64Chairman Samsung Electronics Co., Ltd.

Kinam Kim,President, Co-CEO

Samsung Electronics Co., Ltd.
& Director

Dongjin Koh, 57Co-President,

Samsung Electronics Co., Ltd.
Co-CEO & Director

Hyun-Suk Kim, 57Co-President,

Samsung Electronics Co., Ltd.
Co-CEO & Director

Dongjin Koh, 57Co-President,

Samsung Electronics Co., Ltd.
Co-CEO & Director

Jong-Kyun Shin, 61Director Samsung Electronics Co., Ltd.

Boo-Keun Yoon, 64Director Samsung Electronics Co., Ltd.

Jae-Yong Lee, 49Director Samsung Electronics Co., Ltd.

Samsung Electronics Co., Ltd.

Kyu-Ri An, 64Independent

23
Director

Han-Jo Kim, 63Independent

Samsung Electronics Co., Ltd.
Director

Sun Uk Kim,Independent
Samsung Electronics Co., Ltd.
Director

Byung Gook Park,Independent

Samsung Electronics Co., Ltd.
Director

Jeong Hun Kim,Independent

Samsung Electronics Co., Ltd.
Director

Jae-Wan Park, 64Independent

Samsung Electronics Co., Ltd.
Director

Kwang-Soo
Samsung Electronics Co., Ltd.
Song, 69Independent Director

In-Ho Lee, 76Independent

Samsung Electronics Co., Ltd.
Director

24
 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.

25
Samsung has made the following acquisitions and attempted acquisitions:

Rollei – Swiss 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.

26
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 20

10, 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.

27
 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.

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 world‘s 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

Source: https://images.samsung.com/is/image/samsung/p5/in/aboutsamsung/2017/

28
29
 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 Exchange. It is the world's 274th-largest company measured by 2013 revenues

according to the Fortune Global 500.

30
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 vendors—principally 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 Kōnan Minato, Tokyo, Japan.Its diversified

business is primarily focused on the electronics, game, entertainment and financial

services sectors.The company is one of the leading manufacturers of electronic products

31
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.

32
 3. L.G.

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

fourthlargest 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 and Perioe toothpaste. Even today, LG continues to manufacture some of these

products for the South Korean market, such as laundry detergent.

33
 4. APPLE

Apple Inc., formerly Apple Computer, Inc., is an American multinational corporation

headquartered in Cupertino, California that designs, develops, and sells consumer electronics,

computer software and personal computers. Its best-known hardware products are the Mac

line of computers, the iPod music player, the iPhone smartphone, and the iPad tablet

computer. Its consumer software includes the OS X and iOSoperating systems, the iTunes

media browser, the Safari web browser, and the iLife and iWork creativity and productivity

suites.

The company was founded on April 1, 1976, and incorporated as Apple Computer, Inc. on

January 3, 1977.The word "Computer" was removed from its name on January 9, 2007, the

same day Steve Jobs introduced the iPhone, reflecting its shifted focus towards consumer

electronics.

Apple is the world's second-largest information technology company by revenue after

Samsung

Electronics, and the world's third-largest mobile phone maker after Samsung and Nokia.

Fortune magazine named Apple the most admired company in the United States in 2008, and

34
in the world from 2008 to 2012. However, the company has received criticism for its

contractors' labor practices, and for Apple's own environmental and business practices.

As of May 2013, Apple maintains 408 retail stores in fourteen countries as well as the online

Apple Store and iTunes Store, the latter of which is the world's largest music retailer. Apple

is the largest publicly traded corporation in the world by market capitalization, with an

estimated value of US$415 billion as of March 2013. As of Sept 29 2012, the company had

72,800 permanent full-time employees and 3,300 temporary full-time employees worldwide.

Its worldwide annual revenue in 2012 totalled $156 billion. In May 2013, Apple entered the

top ten of the Fortune 500 list of companies for the first time, rising 11 places above its 2012

ranking to take the sixth position.

35
 ACHIEVEMENTS OF SAMSUNG

On Dec. 30, 1968, Samsung‘s founding Chairman Byung-chull Lee and other executives

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

Thus on Jan. 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 world‘s No. 1 manufacturer. Also in December 1978, Samsung‘s 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.

36
Samsung Electronics America was established in July 1978 as Samsung Electronics‘

whollyowned subsidiary and set up its own service system in the country.

Samsung Electronics‘ first overseas manufacturing subsidiary was set up in Portugal in 1982.

The global manufacturing network expanded to include the U.S. in 1984, the U.K. in 1987

and Mexico in 1988.

n October 1984, Samsung introduced the industry‘s first 256K DRAM, just three months

after it successfully developed the 64K DRAM. Production of the 256K DRAM – a

technological breakthrough only a handful of companies globally were able to muster –

marked a defining moment for Samsung in its growth as a leading semiconductor

manufacturer.

You can find more details by clicking the following links. More of Samsung Electronics‘

success stories are to come, so please visit us or the Samsung Tomorrow blog again soon!

On December 30th, 1968, 7 promoters, including founding Chairman ByungChull Lee, were

gathered. It was decided they wanted to enter an entirely new field and also to elect

executives and set their purpose of the business. At this meeting, SangHee Jung was

appointed as a first representative director. For the name of the business, there were many

candidates on their lists including Cheil Electronics, Samsung Electronics, and Samsung

Electric. At that time, their prominent businesses such as Cheil Jedang (Sugar Manufacturing

Co.) and Cheil Mojik used

‗Cheil‘ and Samsung Moolsan (Known today as Samsung C&T Corporation) used
‗Samsung‘.

37
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.

38
 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.

First, the decision makers should consider whether the objective is attainable, given the
SWOTs.

If the objective is not attainable a different objective must be selected and the process
repeated.

39
Users of SWOT analysis need to ask and answer questions that generate meaningful

information for each category (strengths, weaknesses, opportunities, and threats) to make the

analysis useful and find their competitive advantage.

Samsung is ranked the 7th in global major appliances. India remained the biggest market for

Samsung‘s major appliances, especially refrigeration and home laundry appliances. Due to

the intense competition in India where Panasonic and LG are attempting to grab market

share,

Samsung is trying to gain share in Eastern Europe, with new production facilities in Poland.

However, it is recommended that Samsung should give more attention to Brazil due to high

CAGR over 2012-2017 for major appliances.

A detailed SWOT analysis of Samsung Corp provides strategic intelligence on:

• Strengths and weaknesses

• Category and country opportunities for growth

• Challenges and threats from current competition and future prospects Global and

regional market positions

40
 HUMAN RESOURCE STRATEGY OF SAMSUNG

Human resources is the set of individuals who make up the workforce of an organization,

business sector, or economy. "Human capital" is sometimes used synonymously with human

resources, although human capital typically refers to a more narrow view (i.e., the knowledge

the individuals embody and can contribute to an organization). Likewise, other terms

sometimes used include "manpower", "talent", "labor", or simply "people".

The professional discipline and business function that oversees an organization's human

resources is called human resource management.

From the corporate objective, employees are viewed as assets to the enterprise, whose value

is enhanced by development. Hence, companies will engage in a barrage of human resource

management practices to capitalize on those assets.

In governing human resources, three major trends are typically considered:

Demographics: the characteristics of a population/workforce, for example, age, gender or

social class. This type of trend may have an effect in relation to pension offerings, insurance

packages etc.

Diversity: the variation within the population/workplace. Changes in society now mean that a

larger proportion of organizations are made up of "baby-boomers" or older employees in

comparison to thirty years ago. Advocates of "workplace diversity" advocate an employee

base 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

41
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

managerial control to change: organisational design, culture, and HR policies and practice.

Current managerial orthodoxy therefore argues the need for a restructuring towards ‗flat‘

hierarchical structures, an enlargement of job tasks with greater employee autonomy and

managerial leadership to shape the more intangible aspects of the workplace, for examples

beliefs, norms and values.‖ (Bratton and Gold, 2003, p. 4)

42
In the first part of this paper, I will discusses strategic human resource management (SHRM)

and its practice in the one of the world‘s biggest company Samsung group. And evaluate how

Samsung is practicing human resource management.

43
 STRATEGIC REPORT OF SAMSUNG

1. Abstract

Samsung is best known as one of the world‘s biggest sellers of smart TVs, it is also

the world‘s second biggest handset seller after Nokia. To explore Samsung‘s 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 Samsung‘s 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. Samsung‘s Mission and Vision

Samsung mobile‘s 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 people‘s 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).

44
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.

45
 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.

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,

46
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

Asianlanguage 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.

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

47
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.

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.

48
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.

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.

49
Market share

Samsung
world Leading Market
Product Year Source
market competitor share
share

[123]
DRAM 49.6% SK Hynix 24.8% Q2 2013

NAND flash 42.6% Toshiba 27.7% Q2 2011

Large-size LCD
[124]
panels 20.2% LG Display 26.7% Q4 2013
(revenue)

Active-matrix [125]
98% LG Display, AUO 0.5~1.5% Q2 2010
OLEDs

Lithium-ion [126]
18% Sanyo 20% Q2 2010
batteries

[127]
LCD monitors 18% LG Electronics 12.7% 2010

Hard-disk [128]
9% Western Digital 31.3% Q1 2010
drives

Televisions
[129]
(LCD, PDP, 24% LG Electronics 14.7% Q2 2010
CRT, LED)

50
 Samsung
world Leading Market
Product Year Source
market competitor share
share

[130]
Mobile phones 34% Apple Inc. 13.4% Q3 2013

[131]
Digital cameras 11.8% Sony 17.4% 2010

Application [132]
5.4% Qualcomm 33.9% Q3 2013
processors

51
Major clients

Samsung's largest clients (Q1 2010)[133]

Percent of
Rank/company Part description
total sales

1 Sony DRAM, NAND flash, LCD panels, etc. 3.7

AP (mobile processor), AMOLED

2 Apple Inc. 2.6
DISPLAY,DRAM, NAND flash, etc.

3 Dell DRAM, flat-panels, lithium-ion batteries, etc. 2.5

4 Hewlett-Packard DRAM, flat-panels, lithium-ion batteries, etc. 2.2

5 Verizon
Handsets, etc. 1.3
Communications

6 AT&T Inc. Handsets, etc. 1.3

52
2.2 SCOPE OF THE STUDY

For any research work it is essential to understand within which the research is to be

carried out.

1. This study will help the customer to know the various features & facilities provided
by the company.
2. This study will help the students to know the number of respondents satisfied with the
product.
3. This study will help the company to understand & thereby solve the problems of
customer.

2.3 LIMITATIONS OF THE STUDY

Though every care is taken to make the report unprejudiced and authentic, but the

research work has been carried out under the following limitations.

1. Though it is newly launched product the sample size are 100 respondents.
2. The study is limited to solapur city only.
3. The study is limited to SAMSUNG GAXAXY Y mobile only.

53
RESEARCH AND METHODOLOGY

Research Methodology refers to scientific procedure for the acquisition of knowledge

based on the empirical observation & logical reasoning. Scientific method consists of

systematic observation, classification & interpretation of data. Research Methodology

consists of procedures for obtaining knowledge & logical reasoning.

Methods of Research:–

1) Case study methods

2) Other Method

Data Collection:-

The collection of data means a purposive gathering of information relevant to

the subject from the units of the population. While dealing with this research project
data at the hand was inadequate and hence it becomes necessary to collect the data,
there are 2 ways used to collect the data.
1. By observation
2. Through personal interview.

54
Methods of Data Collection:-

Two methods are used to collect the data:-

1. PRIMARY DATA
2. SECONDARY DATA

1. Primary Data:-

The data which are collected at first hand either by the researcher or by someone else

especially for the purpose of the study are known as primary data.

Sources of collecting primary data:-

a. By Observation
b. By Personal interview
Personal interview is conducted with the help of questions which include open ended

and close ended questions. For this project work Questionnaire is used.

2. Secondary Data:-

The data which have been gathered earlier for some other purpose or exists somewhere

are the secondary data in the hands of the marketing researcher.

Sources of collecting secondary data:-

1. Books
2. Internet
3. MAGZINES : A sample is microcosm of the population from which it is
accepted. It can only be accepted as accurate within certain limits. Sample must be
representative so that valid conclusion about population can be inferred. However a
sample cannot reflect image of population from which it is deawen. Sampling plays a
key role in systematic objective of market surveying. For this project work random
sampling method is used.

55
Sample Size

Large sample gives more reliable result than small samples. However it is not important

to sample the entire target population or substantial portion to achieve reliable result. The size

of the sample decided for this project is 100 respondents.

56
 Introduction to mobile Industry This research work involves the study of Samsung

mobiles. But before we go on to discuss more about Samsung we will discuss about mobile

industry. The mobile industry is a very vast as well as very fast growing industry. In India

before 1990’s there were no mobiles as well as network providers. But in year 1994-95 the

mobiles came into existence in India, that time no company in India was producing mobiles.

The mobiles like Motorola, Nokia, and Samsung were imported from other countries. At that

time cost of these phones were also high, it was not affordable to common man because of

high prices of mobiles & calling rates. Some rich people use to buy these mobiles because

mobiles were considered as status symbol. In India after globalization period the mobile

industry was very fastly grown due to innovations and introduction of new technologies in

the field of mobile industry. So many companies started to produce mobiles like Nokia,

Samsung, LG, Motorola etc. Now a day we can see a lot of growth in mobile industry.

Because rates are cheap and companies are producing these mobiles to suit all the class of

society and added so many features and services to support the sales. We can see there is lot

of competition among the mobile companies and each company try to gain as much as

customers as possible. Previously in developed countries like America, UK, Japan etc. the

numbers of mobile users were high as compared to India but today we can see the population

in India using mobiles phones has more no of users. This really shows the growth of mobile

industry in this era.

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Brief history of organisation

SAMSUNG –

For over 72 years, Samsung has been dedicated to making a better world through
diverse businesses that today span advanced technology, semiconductors, skyscraper and
plant construction, petrochemicals, fashion, medicine, finance, hotels, and more. Their
flagship company, Samsung
Electronics, leads the global market in high-tech electronics manufacturing and digital media.
Through innovative, reliable products and services; talented people; a responsible approach
to business and global citizenship; and collaboration with our partners and customers,
Samsung is taking the world in imaginative new directions.

The digital age has brought revolutionary change – and opportunity – to global
business, and Samsung has responded with advanced technologies, competitive products, and
constant innovation. Our commitment to being the world's best has won us the No.1 global
market share for 13 of our products, including semiconductors, TFT-LCDs, monitors and
CDMA mobile phones. Looking forward, we're making historic advances in research and
development of our overall semiconductor line, including flash memory and non-memory,
custom semiconductors, DRAM and SRAM, as well as producing best-in-class LCDs, mobile
phones, digital appliances, and more.

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SAMSUNG MOBILE

The roots of Samsung goes back to the year 1938, the founder Byung-chull Lee set up
a trade export company in Korea selling fish, vegetables and fruit to china. Within a decade
Samsung had flour mills and confectionary machines and became co-operations in 1951.

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

media, chemicals and ship building throughout the 1970's. In 1969, Samsung Electronics was

established producing what Samsung is most famous for, Televisions, Mobile Phones

(throughout 90's), Radio's, Computer components and other electronics devices.

In 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.

But thanks to the electronic industry they managed to curb this and continue to grow.

The history of Samsung and mobile phones stretches back to over 10 years.

A Rough beginning:-

In 1977 Samsung Electronics launched the telecommunication network business and

in 1983 it initiated its mobile telecommunication business with the hope that this would

become the company’s future growth engine. In 1986, Samsung was able to release its first

built-in-car phone, the SC-100 but it was a failure due to poor reception and sales,

manufacturing was halted. From this point until the early 1990’s, Samsung mobile would

introduce mobile phone models, but sales were low. The designs of the early attempts were

59
bulky and reception was poor, with Motorola’s huge advantage of market share, Samsung

decided to drop its mobile division.

Turning point:

In the year 1993, Samsung Mobile released the SH-700 series, which boasted a

smaller and sleeker design and better sound quality. With a better product and a more

aggressive marketing campaign, Samsung would reclaim more than half the mobile phone

market share in Korea from Motorola.

The Global Market:

Samsung cell phonesfound its way into American hands for the first time in 1996,
when they partnered with Sprint on a line of sleek and compact phones. A few short years
later, South America and Japan were enjoying the high-end design of Samsung Mobile
phones.

Samsung Mobile Today:

In early 2011, Samsung Mobile's global market share stood at more than 20 percent,
second only to Nokia. Partially owing to strong sales of Samsung's Galaxy range of
Smartphone, Samsung overtook Apple in worldwide Smartphone sales during Q3 2011, with
a total market share of 23.8%, compared to Apple's 14.6%.

Samsung Galaxy Series:

Samsung Galaxy is a series of mobile computing devices produced by Samsung

Electronics, all of which use the operating system Android.

Samsung Galaxy Y (S5360) is an Android-based Smartphone by Samsung, announced in

August 2011. Galaxy Y was launched in October 2011. It is the cheapest Smartphone

60
available in the Galaxy series todate. There is a specific reason behind the name of this
handset i.e. 'Y' symbolizes 'Young'. The name clearly indicates that it is meant for the young
generation.

Samsung & Its Subsidiaries

Samsung is comprised of companies that are setting new standards in a wide range of

businesses, from consumer electronics to petrochemicals, from advertising to life insurance.

They share a commitment to creating innovative, high quality products that are relied on

every day by millions of people and businesses around the world.

Electronics Industries

• Samsung Electro-Mechanics
• Samsung Corning Precision Glass

• Samsung Networks

• Samsung Mobile Display

• Samsung Digital Imaging

Machinery & Heavy Industries

• Samsung Heavy Industries

Chemical Industries

• Samsung Petrochemicals

• Samsung Fine Chemicals

Financial services

• Samsung Life Insurance

• Samsung Fire & Marine Insurance

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 • Samsung Securities

• Samsung Venture Investment

Other Affiliated Companies

Samsung C&T Corporation , Samsung Engineering, Cheil Industries, Samsung Everland,

The Shilla
Hotels & Resorts, Cheil Worldwide, S1 Corporation, Samsung Medical Centre, Samsung
Human
Resources Development Centre, Samsung Economics Research Institute, Samsung Lions,
The Ho-Am Foundation, Samsung Foundation of Culture, Samsung Welfare Foundation,
Samsung Life Public Welfare Foundation.

Important statistical data

SAMSUNG FINANCIALS

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 2011 Financial Overview
AMOUNTS IN BILLIONS WON DOLLORS 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

MARKET SHARE

MARKET SHARE

NOKIA; 24%

OTHERS; 38%

SAMSUNG; 20%

SONY ERICSSON; 5%
APPLE; 6% L.G.ELECTRONICS; 7%

Mobile phone manufacturers market share in Q3/2011

In Q3/2011, NOKIA was world’s largest manufacturers of mobile phones, with a global
device market share of 24%, followed by Samsung 20%, L.G Electronics 7%, Apple 6%,
Sony Ericsson 5% and Others 38%.

63
Future Prospects

The Samsung Philosophy

At Samsung, we follow a simple business philosophy: to devote our talent and technology to

creating superior products and services that contribute to a better global society.

Every day, our people bring this philosophy to life. Our leaders search for the brightest talent

from around the world, and give them the resources they need to be the best at what they do.

The result is that all of our products—from memory chips that help businesses store vital

knowledge to mobile phones that connect people across continents— have the power to

enrich lives. And that’s what making a better global society is all about.

Values

We believe that living by strong values is the key to good business. At Samsung, a rigorous

code of conduct and these core values are at the heart of every decision we make.

People

Quite simply, a company is its people. At Samsung, we’re dedicated to giving ourpeople a

wealth of opportunities to reach their full potential.

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Excellence

Everything we do at Samsung is driven by an unyielding passion for excellence—andan

unfaltering commitment to develop the best products and services on the market.

Change

In today’s fast-paced global economy, change is constant and innovation is critical toa

company’s survival. As we have done for 70 years, we set our sights on the

future,anticipating market needs and demands so we can steer our company toward long-term

success.

Integrity

Operating in an ethical way is the foundation of our business. Everything we do isguided by a

moral compass that ensures fairness, respect for all stakeholders andcomplete transparency.

Co-prosperity

A business cannot be successful unless it creates prosperity and opportunity forothers.

Samsung is dedicated to being a socially and environmentally responsiblecorporate citizen in

every community where we operate around the globe.

65
BUSINESS PRINCIPLES

66
Vision

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

We believe that through technology innovation today, we will find the solutions weneed to

address the challenges of tomorrow. From technology comes opportunity—for businesses to

grow, for citizens in emerging markets to prosper by tapping into thedigital economy, and for

people to invent new possibilities.

It’s our aim to develop innovative technologies and efficient processes that create

newmarkets, enrich people’s lives and continue to make Samsung a trusted market leader.

Mission

Everything we do at Samsung is guided by our mission: to be the best “digital-εCompany”.

Samsung grew into a global corporation by facing challenges directly. In the years ahead, our

dedicated people will continue to embrace many challenges and come up with creative ideas

to develop products and services that lead in their markets. Their ingenuity will continue to

chart Samsung’s course as a profitable, responsible global corporation.

67
ORGANIZATIONAL STRUCTURE

68
 THEROTICAL BACKGROUND
When we talk about customer satisfaction, we talk about creativity. Creativity allows

us to handle or diffuse problems at hand or later on in the process of conducting the everyday

business. We talk about how, or rather what, does the organization have to do gain not only

the sale but also the loyalty of the customer. We want to know the payoff of the transaction

both in the short and long term. We want to know what our customer wants.

Market consist of all the potential customers, sharing of particular need or want, who

might be willing and able to engage in exchange to satisfy their needs or wants. According to

Philip Kotlar, ‘Marketing is a human activity directed at satisfying need and wants through

exchange process.’ Marketing Management is the process of planning and executing the

conception, pricing, promotion and distribution of ideas, goods and services to create

exchanges that can satisfy both individual and organizational goals.’

Customer Satisfaction can be defined as a person’s feelings of pleasure and

disappointment resulting from a product perceived, performed in relation to his or her

expectation.’

When we talk about customer satisfaction, we talk about creativity. Creativity allows

us to handle or diffuse problems at hand or later on in the process of conducting the everyday

business. We talk about how, or rather what, does the organization have to do to gain not only

the sale but also the loyalty of the customer. We want to know the payoff of the transaction

both in the short and long term. We want to know what our customer wants.

We want to know if our customers are satisfied. Satisfaction, of course, means that what we

want we delivered to customer met the customer‘s approval. We want to know if customers

are delighted and willing to comeback, and so on. Flies and Feldman present examples of that

69
delightful in their writings. Fleiss has written about Ben and Jerry’s ice cream and Feldman

has discussed excellence in a cad ride.

As important as delightfulness is, some of us minimize it, or even totally disregard it. At this

point, we fail. Some of the issues that will guarantee failure in sales, satisfaction, and loyalty

are-

Employees must here to a rigid chain of command. Employees are closely supervised.

Rewards are based on carrot and stick.

Level: - 1

Expectations are very simple and take the form of assumptions, must have, or take it for
granted For example:
Expect the airline to be able to take off, fly to my destination, and land safely.
I expect to get the correct blood for my blood transfusion.
And I expect the bank to deposit my money to my account and to keep a correct tally for me.

Level: - 2

Expectations are a step higher than that of level 1 and they require some form of satisfaction

through meeting the requirement and or specifications.

For example:
I expect to be treated courteously by all airline personnel.
I went to the hospital expecting to have my hernia repaired, to be in some pain after it was

done, to be out on the same day, and to receive a correct bill.

And I went to the bank expecting the bank teller to be friendly, informative, and helpful with

my transactions.

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Level: - 3

Expectations are much higher than for level 1 & 2.

Level 3 requires some kind of delightfulness or a service that is so good that it attracts me to
it.
For example:
An airline gives passengers travelling coach class the same superior food service that other

airline provide only for first-class passengers. In fact, I once took a flight where the flight

attendant’s actually baked cookies for us right there on the plane.

When I went to the hospital, I expected staff to treat me with respect and they carefully

explained things to me. But I was surprised when they called me at home the next day to find

out how I was doing.

And at my house closing, the bank officer, representing the bank holding my mortgage, not

only treated me with respect and answered all my questions about my new mortgage, but just

before we shook hands to close the deal, he gave me a house-warming gift.

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 OBSERVATIONS

1) It is observed that, 56% respondents are male and 44% respondents are female.
2) It is observed that, 56% of respondents belong to student category because this
handset is meant for young generation and only 8% of the respondents belong to
professional category.
3) It is observed that, 44% respondents are aware through advertisement because it is
mass means of communication and only 8% respondents are aware through
newspaper.
4) It is observed that, most of the respondents consider Android OS , Fast processor and
price factors while buying the handset because it’s Operating System & processor is
best in market with lesser price
5) It is observed that, most of the respondents know other Samsung Galaxy Series before
purchasing Samsung Galaxy Y Handset.
6) It is observed that, 85% of respondents given Best Rank to Android OS feature of
Handset & 74% respondents given Best Rank to Fast Processor. While 72%
respondents given Good Rank to Capacitive touch screen feature & 74% respondents
given Good
Rank to Talk Time.

7) It is observed that, company has given Hands free headset & PC suit CD as additional
accessory to all respondents because it necessary in day today life while 68
respondents got Memory card & 46 respondents got Changeable back panel as
additional accessory to promote the handset.
8) It is observed that, 68% respondents view regarding battery back-up is average
because it gives less talk time, where as 8% opinion that it is below average because it
has to charge daily.
9) It is observed that, 62% respondents are aware about after sales service as upgrading
of OS and minor repairs while 38% are not aware about after sales service provided
by
Samsung Care because they didn’t need so as problem has not occurred so far.

72
 SUGGESTIONS

1. The company can organize free service camps once in a year which will in turn
increase the loyalty of the consumers.
2. The company can come up with demonstration sessions once in a month about
upcoming changes in the same model of handset which can be motivational factor for
consumers to buy.
3. The company may also come up with the increase in the period of warranty of
handsets and accessories for 1 year instead of 6 months.
4. The company can introduce the new Dual Sim handset in the same model i.e.
Samsung

Galaxy Y.

5. The company can improve the Battery back-up of the handset and solve the Hang &

Network problem in the handset.

6. The company can improve the after sales service which is provided by the
SamsungCustomer Care.

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 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 4P‘s 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.

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 BIBLIOGRAPHY

 https://www.samsung.com/in/aboutsamsung/home/

 SCRIBD.COM

 WIKIPIDEA

 REFERENCE FROM MANAN PUBLICATION

 "Articles of incorporation". Samsung. Archived from the original on 8 May 2016.

 ^ Jump up to:a b c d e Samsung Electronics Financial Statements (PDF), Samsung
Electronics, 27 February 2019, retrieved 28 February 2019
 ^ Jump up to:a b "Fast Facts: Samsung Electronics-All data as of 2016". Samsung
Electronics. 28 March 2017.
 ^ Gil Kim, Keon Han, Minseok Sinn, Hyung Cho, Ray Kim (18 June 2014). "Korea
Market Strategy – How to untangle Samsung group's ownership?". Credit Suisse.
p. 36. Retrieved 22 November 2015

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