BUSINESS PLAN

Evaluation -3

COMPLETED BY

SANCHANA M

22-pgdhrm-14
 1. Company Profile

The Samsung Group[3] (or simply Samsung) (Korean: 삼성 [samsʌŋ]) is a

South Korean multinational manufacturing conglomerate headquartered

in Samsung Town, Seoul, South Korea.[1] It comprises numerous affiliated
businesses,[1] most of them united under the Samsung brand, and is the largest
South Korean chaebol (business conglomerate). As of 2020, Samsung has the
eighth highest global brand value.[4]

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 five business groups – Samsung
Group, Shinsegae Group, CJ Group and Hansol Group, and JoongAng Group.

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

largest information technology company, consumer electronics
maker and chipmaker measured by 2017 revenues),[5][6] Samsung Heavy
Industries (the world's second largest shipbuilder measured by 2010
revenues),[7] and Samsung Engineering and Samsung C&T
Corporation (respectively the world's 13th and 36th largest construction
companies).[8] Other notable subsidiaries include Samsung Life Insurance (the
world's 14th largest life insurance company),[9] Samsung Everland (operator
of Everland Resort, the oldest theme park in South Korea)[10] and Cheil
Worldwide (the world's 15th largest advertising agency, as measured by 2012
revenues).
Samsung’s Vision Statement

“Inspire the world with our innovative technologies, products and design that
enrich people’s lives and contribute to social prosperity by creating a new future.”

Samsung’s Mission Statement

“We will devote our human resources and technology to create superior products
and services, thereby contributing to a better global society.”
2. ORGANISATIONAL STRUCTURE
 3. HUMAN RIGHTS TRAINING

Recognizing our responsibility to respect human rights across our operations and
beyond, we provide our employees with human rights training programs tailored
to each worksite. Our training aims to ensure that everyone in the company
understands what human rights are and how they relate to the company as a
whole. Our human rights training programs are offered to all employees through
an e-learning tool, a mobile application, and through in-person training sessions
depending on the needs of each worksite.

In 2020, we launched our comprehensive labor and human rights training

program together with Business Social Responsibility (BSR™), an organization
specialized in business and human rights education. We recently introduced a
more advanced human rights training framework for our employees to move to
the next level of training once they complete a module.

We are striving to improve the ability of our employees to deal with specific labor
and human rights topics by offering training that is customized to their job
functions. We offer targeted training to those employee groups that are more
exposed to human rights challenges in their duties.

Risk Assessment by Internal Experts

• 01. Assessment target selection

Three to four worksites are selected every year that need to increase
capabilities and make overall improvements based on the
assessment results of our worksite monitoring system.
• 02. Assessment team setup

An expert group comprised of qualified employees including certified

RBA auditors is organized.

• 03. Self-assessment

The selected worksite performs a self-assessment on its operations based

on the inspection assessment checklist.

• 04. On-site audit

The assessment team conducts the on-site audit based on our own
standards.

• 05. Follow-up management

The assessment team shares the inspection results with the management
team of the assessed worksite.
The selected worksite submits future improvement plans and measures
within one week from the completion of assessment to
prevent recurrences.
The business unit which the worksite belongs to implements improvement
tasks by forming a task force consisting of experts in
human resources. and environmental, health & safety.
The progress of improvement is monitored on a monthly basis via a
worksite monitoring system.
Human Rights Impact Assessment

We conduct human rights impact assessments (HRIA) to identify actual

and potential human rights risks, as well as any adverse impacts that we
may have caused, been linked to, or contributed to. Assessments are based
on our experts’ research, document reviews, as well as internal and external
stakeholder interviews.

Our first human rights impact assessment was carried out in Vietnam in
2018 in collaboration with Business for Social Responsibility (BSR™), a
non-profit organization specialized in business and human rights. In 2021,
we introduced a process to identify potential human rights risks before
beginning new operations. We engaged with consultancies with expertise
in business and human rights, to provide analysis and make
recommendations prior to the start of our production in Türkiye.

We strive to address actual and potential impacts identified through the

assessments with remediation, mitigation and prevention measures. These
include policy development and revision, capacity-building programs for
relevant stakeholders and employees, and work process improvement
across our operations.
 4. SAMSUNG C&T CORPORATION

Samsung C&T Corporation ("Construction & Trading Corporation";

formerly Samsung Corporation; is a South Korean construction and
engineering company. It was founded in 1938 as the first Samsung company and
was initially involved in construction and overseas trading operations. Since
1995, it has largely focused on global engineering and construction projects, trade
and investments, fashion and real estate. The corporation is governed by an 11-
member Board of Directors, made up of the President and CEOs of its four
working groups (Engineering & Construction, Trading & Investment, Fashion,
and Resort), the corporation's CFO, and six independent members.[3] Samsung
C&T employs over 17,000 people. The firm is often regarded as the holding
company of Samsung chaebol as it is a major shareholder of various Samsung
affiliates.
 CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

December December December Decem

31, 31, 31, ber 31,
Not 201 2018 2019 2
es 9 0
1
8
KR KRW USD U
W S
D
Equity attributable to
owners of the parent
company
Preference shares 20 119,467 119,467 102,506 102,506
Ordinary shares 20 778,047 778,047 667,588 667,588
Share premium 4,403,893 4,403,893 3,778,674 3,778,6
74
Retained earnings 21 254,582,894 242,698,956 218,439,838 208,243
,059
Other components of equity 22 (4,968,829) (7,931,370) (4,263,406) (6,805,
356)
254,915,472 240,068,993 218,725,200 205,986
,471
Non-controlling interests 7,964,949 7,684,184 6,834,168 6,593,2
63
Total equity 262,880,421 247,753,177 225,559,368 212,579
 ,734

Total liabilities and equity 352,564,497 339,357,244 302,511,023 291,178

,800

5. SALES PRODUCTION
 6. SAMSUNG
TELECOMMUNICATIONS

Samsung Mobile Division is one of five divisions within Samsung Electronics,

belonging to the Samsung Group, and consists of the Mobile Communications
Division, Telecommunication Systems Division, Computer Division, MP3
Business Team, Mobile Solution Centre and Telecommunication R&D Centre.
Telecommunication Business produces a full spectrum of products
from mobiles and other mobile devices such as MP3 players
and laptop computers to telecommunication network infrastructure. Headquarters
is located in Suwon, South Korea.

In 2007 Samsung Mobile Division Business reported over 40% growth and
became the second largest mobile device manufacturer in the world.[2] Its market
share was 14% in Q4 2007, growing up from 11.3% in Q4 2006.[3] At the end of
November 2011, Samsung sold more than 300 million mobile devices which was
a close second after Nokia with 300.6 million mobile devices sold in the first three
quarter of 2011.[4] As of Q3 2012, Samsung is the largest manufacturer of
devices running Google's Android with a 46% market share.[5]
On 19 August 2016, Samsung officially released its Samsung Galaxy Note 7. As
of 2 September 2016, Samsung announced a voluntary recall and attached to the
new exchange program, after numerous reports showed that the new Samsung
Galaxy Note 7 burst and exploded. On 10 October 2016, in response to the new
incidents, Samsung announced that it would once again suspend sales of
the Galaxy Note 7 and recall all devices worldwide. The next day, Samsung also
announced that it would permanently discontinue the Galaxy Note 7 and cease its
production.
As of October 7, comments have emerged from former CSPC experts following
its launch of the investigation into the above incident.[clarification needed]
A lawsuit[citation needed], filed in the US district court in California, stated that
the tech malfunctions extend beyond the Galaxy Note 7 and that Samsung “chose
to conceal the problem from the public despite knowing the foreseeable and
predictable risk that the phone may overheat, flame and destruct from the inside
presenting a risk of serious harm or injury”.
The recall had a major impact on Samsung's business in the third quarter of 2016,
with the company projecting that its operating profits would be down by 33% in
comparison to the previous quarter. Credit Suisse analysts estimated that
Samsung would lose at least US$17 billion in revenue from the production and
recall of the Galaxy Note 7
7. SWOT ANALYSIS
 8. STRATEGIC ANALYSIS

Samsung's marketing strategy focuses on developing new innovative products

that are supported by strong branding and promotional campaigns.

The marketing strategy of Samsung

John Dudovskiy said that Samsung spent a total of USD10.2 billion on marketing
in 2016. This included USD3.9 billion toward advertisements. Samsung
marketing strategy integrates various forms of advertising, events, and
experiences, public relations, direct marketing, and personal selling. Samsung
marketing strategy is based on the principles of “The Master Brand” and
“marketing mix”. It has helped the firm to build trust in every product they
manufacture.

The pricing model of Samsung depends on the prices of competitor’s products

using two pricing strategies. The first strategy is “Skimming Price Strategy” –
Smartphones of Samsung are leading the market with Apple’s iPhone. Like
Apple, Samsung also uses skimming price to gain the upper hand over their
competitors. For instance, Galaxy S6 and S6 Edge are the brand new products of
Samsung carrying the slogan “Next is Now” and claiming that they are the most
beautiful smartphones ever created. S6 Edge (64 GB) that costs 1,180$ will
brilliantly and smoothly sell around the globe. But, when other competitors
launch a smartphone with identical features, Samsung lowers the price and easily
steal customers from the competitor.

The second strategy is “Competitive Pricing Strategy”. Unlike smartphones,

Samsung has difficulties in gaining an edge over its competitors with other
products. In terms of home appliance, it can’t possibly surpass LG. Furthermore,
in Cameras Cannon and Nikon are leading the market. So, for Samsung to
withstand this fierce competition, it introduces a change. Samsung uses major
electronic goods retailers such as reliance digital and Samsung Smart Cafes
Institutional sales such as the airport, Shopping malls etc.

According to Winer and Dhar (2011), the 4 P’s of marketing include the product’s
price, channels of distribution (promotion), actual product, communications and
customer relationship management (place). We can have a closer look at value
proposition using 4P’s of Marketing for Galaxy S9 as an example. Product; the
product is a premium-class smartphone of the global manufacturer Samsung,
called Galaxy S9. It has a great camera, face and iris recognition functionality,
stereo speakers made by AKG company, many beautiful looks and another dozen
of high-quality elements inside and out, which tells an average person that Galaxy
S9 is a beautiful and undoubtedly powerful smartphone (“Galaxy S9 | S9+”, n.d.).
Price: the price of the Samsung Galaxy S9 is the cheapest among its close
competitors, like Apple’s iPhone XS with 25% higher price or Google’s Pixel 3
with 10% higher price (Dolcourt, 2018).

Promotion; Samsung Galaxy S9 used every possible way of promotion. There are
billboards on the streets and inside every mall, commercials playing on TV and a
lot of paid advertisements in Facebook and Instagram. Place; The communication
with customers for the Samsung Galaxy S9 sales is done via two main channels:
the website and sales agents inside the retailers’ stores. So, they are
communicating the product to every person who is interested in it.

Brand evolution of Samsung comes from innovation. Samsung has launched the
newest installment of its episodic consumer-focused ad campaign, “Samsung
Within,” an ongoing interactive web and mobile experience series depicting
Samsung’s legacy as a company: it’s philosophy, the meaning of its name, and
its cultural drive for pursuing relentless innovation and how it’s latest
smartphone.

Evaluation of Samsung current marketing strategy and implementation

Samsung use of segmentation strategy by targeting different market segments is

working well for them too. Samsung realizes every need in the market and offers
products for different customer segments. They have positioned their products
well, and they have let their customers know they are offering something for
everyone. They have mastered the idea of creating products that are suitable for
their chosen market segments, and positioning itself clearly so that customers are
aware they recognize their needs. Everyone can see this by how they advertise
their products effectively in the market, by clearly communicating how ordinary
people can take advantage of the technology they are offering. Most smartphone
companies do not communicate the benefits clearly and in a way an ordinary
person can understand. Samsung communication strategy in its promotion
component of marketing mix shows exactly who they are targeting and what they
are offering to the targeted market.
BIBLIOGRAPHY

1. https://panmore.com/samsung-corporate-vision-statement-corporate-
mission-statement-analysis

2. https://en.m.wikipedia.org/wiki/Samsung_Electronics

3. https://en.m.wikipedia.org/wiki/Samsung_Telecommunications

4. https://en.m.wikipedia.org/wiki/Samsung_C%26T_Corporation