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Date: 14 11 2022

Day Month Year

Samsung Electronics industry Co Ltd

Samsung Electronics industry Co Ltd was founded by Byung Chull Lee. It is the South Korean
manufacturing group located in Samsung town, one of Asia’s largest producers. It has employees with
more than 320000 worldwide. Samsung specializes in manufacturing a wide kind of electronic devices
and components such as memory chips, tablets, smartphones, etc. Additionally, the company
manufactures a lot of appliances including washing machines, microwaves, refrigerators, etc.
Consequently, it has many several companies around the globe where it operates including China,
Vietnam, Brazil, Indonesia, and India. Among these, Samsung mobile factory in Noida, Uttar Pradesh,
India is the biggest, with a production capacity of over 100 million units per year.

According to the largest technology companies ranking released by Forbes in 2022, Samsung came out in
the 4th place. However, Samsung company main competitor is Apple smartphones. On research,
Samsung’s strategy market was to beat Apple in 2014.

For segmentation, they mainly use geographic segmentation and demographic segmentation based on
certain criteria. In demographic segmentation, they have classified into age, lifestyle, gentleness, and
occupation. For example, they manufacture professional smartphones targeted to managers. In the
geographic segmentation, India has the biggest population, and many smartphone users provide
affordable prices.
Question 1 20 Marks

(600 words)

When we are looking forward to launching a small business to a higher level, we have to choose the right
form of ownership to achieve success. All ownership structures can have pros and cons, but there is always
one that is always suitable for the organization. After considering these issues, choosing the structure of
ownership is important within the government and the economy.

Here are some of the most common 4 types of organizational legal formation found in the organization
industry.

1. Sole Traders

Sole traders, a type of business, are also known as sole proprietorships who run the business individually. It
doesn’t need any legal formations and is flexible for everyone. They can freely control the business
without sharing their profits. However, they are responsible to supply the necessary funds to their
business. Additionally, all of the decisions have to make alone, you don’t have to wait to hold the meeting.
An example would be a hairdresser or freelance writer. One of the advantages of a sole trader is it doesn’t
need federal registration with the government to start. If there is no registration cost, it is completely free
to start the business.

2. Partnerships

Partnerships are a type of business that is owned by two or more people. It can also be classified into two
types: general partnerships and limited partnerships. In general partnerships, two or more partners agree
to share legal liabilities and profits. Each of the members participates in business activities and manages
work. Not surprisingly, some of the cases can lead to disagreements and conflicts between each other. The
key point is to cooperate with a trustworthy person to launch our business. In limited partnerships, they
are not as popular as general partnerships. Limited partners play a limited role in the management of
business operations. They are silent investors and they don’t participate in day-to-day management.

3. Limited companies

A limited company is a legal business structure limiting the liability undertaken by the company’s
stakeholders.

The limited companies can be divided into two parts:

Private Limited companies

Private limited companies are owned by small entities which are privately held for businesses. They are
illegal to sell the share to the public. To run a private limited company, at least two directors are required
for registering in the Companies House.

Public limited companies

Public limited companies offer shares to the public, and all of the shareholders can own them. Public
companies are recorded on the stock market and it is more detailed than private companies. The general
structure of public limited companies is they require at least one qualified secretary and two additional
directors.

4. Franchising

The contract between the franchisor and the franchisee is called franchising. The role of the franchisor is
they provide the franchisee to operate the business including trade names, trademarks, products, etc.
Furthermore, they are also responsible for some additional training to share knowledge and best practices.
One of the advantages of the franchisor is you can expand the business with other people. In the
franchisee's role, they will mostly like to operate daily business operations, uphold the brand image and
manage the local market. They can easily enter into the successful business that the foundation has
already built.

Samsung Electronics Co Ltd is a private limited company that doesn’t offer a public share. From research,
sole traders have to pay 20-45% of their income profits while limited companies have to pay 19% of the tax
on profits. As we know, private limited companies are tax efficient so Samsung Companies can cut costs.
Later the limited companies provide limited liabilities. If the owner losses the initial stake they can go bust.
So, it makes Samsung run a legal business confidently without being liable for the debts. Last but not least
Samsung’s shareholders are can be allowed up to two or more than one hundred so it’s easier for Samsung
to raise capital finance. The owner’s choices are relevant to these cases because nowadays Samsung is one
of the top three listed electronics companies in the world. The success of Samsung has been boosted
overseas.
Question 2 20 Marks

(600 words)

Chief Executive Officer

Sales Manager Marketing Manager Project Manager

Salesperson Marketing employee Team members

Interrelationships between the Sales Manager and the Marketing Manager

A Sales Manager leads the sales team by guiding, training in retail, and running the day-to-day daily sales
operations. Sometimes, they are responsible for interviewing new candidates for hire. They are also
influenced by nearly every step of the business whether they analyze the data including setting the price.
Marketing managers organize marketing campaigns by leading promoting efforts for businesses. For as
marketing managers, they can influence the brand image, from setting the strategy to growing up because
they enable customers to make the buying decision. They will work together in every business. The
difference between the two of them is the sale manager manages the sales processes whereas a marketing
manager manages the sales operations such as marketing to attract more customers for the sale manager.
The sales team report sales data to the marketing manager. The marketing manager tries to achieve sales
goals.

Interrelationships between the Marketing Manager and the Project Manager

Marketing managers organize marketing campaigns by leading promoting efforts for businesses. For as
marketing managers, they can influence the brand image, from setting the strategy to growing up because
they enable customers to make the buying decision. Consequently, the duties and responsibilities of a
marketing manager can vary greatly depending on the workplace. Even in smaller companies, the
marketing manager needs to with everyone from employers to security guards. Project managers, play the
lead role in business planning, directing specific projects, and executing. They begin their project by
defining the main objective of the project discuss with co-workers to move a successful project forward.
The marketing manager has a wide range of customer experiences and the project manager these data
into the system to improve sales targets. Collaboration between two of them has taken up a huge role
with the attention of the customers.
Interrelationships between the Project Manager and the Sales Manager

Project managers play the lead role in business planning, directing specific projects, and executing. Project
managers begin their project by defining the main objective of the project discuss with co-workers to move
a successful project forward. A Sales Manager leads the sales team by guiding, training in retail, and
running the day-to-day daily sales operations. Sometimes, they are responsible for interviewing new
candidates for hire. They are also influenced by nearly every step of the business whether they analyze the
data including setting the price. The sales manager compared their sales to a project plan made by a
project manager. Some of the project manager concepts are associated with sales as they apply to sales
projects. The most significant way to improve between them is the communication system such as
scheduling meeting times to meet each other.

Interrelationships between Chief Executive Officer (CEO) and Sales Manager, Marketing Manager, and
Project Manager

Chief Executive Officer is the highest ranking in the organizational structure elected by the board of
directors or shareholders. The responsibilities and duties of a chief executive officer are especially in
decision-making. They report the status to the board of directors along with driving within the
organization. In most of the largest companies, the Chief Executive Officer earns 24 million dollars much
more than the average employee. Why they get the highest paid salary is the reason that 45% of the
company’s performance is influenced by the chief executive officer they are frequently dealing with the
public.

The managers are engaged with day-to-day activities and operation management in their respective retail.
The chief executive officer analyses their performances and makes decisions on rational analysis. The
managers make reporting requests to the chief executive officer to get a sense of the idea to work well
upon the performances.
 30 Marks

(900 words)

Corporate Governance

Corporate Governance is the key factor in managing corporations in this century, encompassing
regulations. The purpose of corporate governance is to build an environment of trust that supports the
company’s continued growth. In corporate governance, board directors are excellent company members,
elected by shareholders, and always involves in the activities of the organization. In every decision, the
board of directors may consider how it will affect the company, customers, and employees. Board
directors can be divided into executive directors and non-executive directors. Executive directors also
called excellent managers are tasked with business planning and involvement in daily activities. They are
the highest earners among all of the roles in the company within the actual drive performance. Non-
executive directors also known as the qua directors are not involved in companies’ daily activities. They are
not employees of the cooperation but usually receive a flat flee for their services for reviewing executive
directors’ performances. Usually, shareholders have to place trust in those according to their behaviors.
According to the new survey, busing projects are failing because of poor corporate directors such as Enron,
Walmart, Cadbury, etc. For example, Enron, located in Texas, eventually happen to the bankruptcy of the
corporation. Enron represents a failure of cooperate governance. It was the largest recognizable
bankruptcy at that time. Enron lost into free fall and lost 74 dollars billion. Therefore, to ensure effective
cooperative governance, one of the ways is with technology. Technology offers cooperation of new
dimensional tools including artificial intelligence. The software platform collects their activities and
analyzes a swath of information according to their performances. Besides, the boards of directors must
follow the principles of governance such as responsibility, accountability, and equity, which is exactly what
board directors need to become a thriving company.

Organizational Culture

Organizational culture refers to a collection of values and assumptions that show what is appropriate or
not. It is also the combination of the other person’s point of view, educational background, and attitude of
all of the employees. Since it is the combination of all of the employees within the company, several
factors influence it. When people have accepted the ethical culture, the owner has a strong relationship
with the employee so the company’s success will depend to a large extent. Since we are targeted toward
success strong organizational culture is a key competitive power. One of the main advantages of strong
organizational culture will become a company’s better reputation which is a positive effect from the inside
out. This includes public opinions on employee services and company products. These depend on how the
manager treats well with their employee. If employees enjoy working at the company, this will influence
customer stratification. But as we know, changing risk culture is the most challenging leadership skill. There
are a variety of facts including poor communication, slow response, lack of insight, etc. However, the
manager mostly must face the risk profile of people doing inappropriate activities and responsiveness
which can cause major losses. To develop the organizational culture, importantly well need to realize the
company culture and how to handle it. Whenever most strong company overlooks the emotional
consequences of fear and sadness. They change the employee into the transition and become top
performers. In the end, a culture promotes productivity and innovation. It brings a large impact, especially
on the development of the company. Later, it becomes a strong interaction between the manager and his
employee encouraging him to accomplish the task. Changing the risk culture will be unavoidable however
the company must be always ready facing with this culture to turn it into effect.

Quality systems

Nowadays, most people are working hard to earn profits. The main part of the company’s reputation is the
Quality system. It is the standards of the organization that the products are met up to the quality value and
customer expectations. To keep customers satisfied, quality is the foundation. Later, good quality products
will get many reviews from customers through social media to boost the company’s brand reputation.
Quality leads to a higher influence, the higher the quality of the product, the easier to gain profits. Quality
control is an important factor to meet customer stratification that operates a high level of activity. It can
be done in many different ways in case of defective goods do not go out to the public. For the instance,
Quality Management Software is a technology product in that the company recorded customer feedback
and important notification process such as review requests. It also provides the products to manufacture
within tolerance, streamlining the processes during manufacturing. Consequently, this system will define
how the products are for measuring that they serve the customers. Most of the well-known companies pay
attention to the control quality system. As an example, Nike is one of the recognizable brands in the
production industry overseas. Their success has been attributed to quality management (supply chain). To
meet high-quality standards, they always continual communication with the customers through digital
engagement. After analyzing all of the systems, quality control makes the end product meet the
requirements, ensuring better products and reducing costs. Now, it’s clear with the sentence ‘Quality leads
to a better business result’. Customers want products with the best quality for their money. None of the
businesses without quality can run if there are no customers. If the business hasn’t any customers, there
would be no profits. Today, most of the company are providing the highest quality of products for their
values in the future.
Question 4 30 Marks

(900 words)

a) The organizational infrastructure of human

People
There is always a saying that “People are our greatest assets”. Most organizations say this day and night
but they don’t obey it. But as we look back, Samsung Company treats their employee well which leads to
success. The company’s asset of 85 percent is dependent on its employee skill assets. The employees are
the most contributors towards profits. The more work they do, the more customers and partners.
Therefore, employee talent determines the growth of the organization.

Samsung Employee Benefits

By providing top-rated benefits including a variety of insurance. In addition, high salary, discounts, and
meals. According to the research, the average salary of Samsung employees is over $50000 per year. For
paid time off (PTO), the company has a strategy of 20 days per year. When you are pregnant and need
close attention, the company provides twelve weeks of fully paid leave.

Training and Development Practices

Samsung Electronics Employee Training Development is coordinated by the HR Team to support the field
of soft skills and other essential skills. The training is based on the workplace to be more systematic for the
workers. Adopting cyber training, the electronics expert shows a video of the manufacturing process and
lets them repeat the manufacturing process. It is costly to take a lot of resources because a new trainee
must disassemble the product component one by one.

Motivation of Employee

Motivation is a key to job satisfaction that is the driving forces achieve to company goals. To motivate their
employee, Samsung Company adopts McClelland’s Theory. This theory has three factors: affiliation,
achievement, and power. In terms of affiliation, the Samsung company supplies appropriate surroundings
for their employees. As for achievement, Samsung has proved a high innovation company in the past ten
years. Their reputation has a purpose that helps to keep employees motivated. For power, Samsung level
up the higher positions according to their performances and promotion opportunities which are a greater
sense of things to be more motivated.

The organizational infrastructure of physical resources

Every organization utilizes every movement of physical resources for its existence. The Physical resources
include tangible resources such as land, equipment, and facilities. It is impossible to accomplish anything
without resources. These types of physical resources are central because they will impact the viability of
the organization along with its flourishing:

Samsung Company may encompass a variety of objects depending on the business. Some of the main parts
may be included:

Location

Location plays a huge role in attracting new customers towards establishing a business that appeals to the
local demographics. When deciding where to open a new store, the owners should find a balance between
the cost of the location and the profits. For product production to be smooth, the Samsung company has
many suppliers all over the world in many locations.

Products

The customers are trying to know the company of the products information. The products are the lifeblood
of companies that offer new value to new customers or existing customers. The Samsung company
produces its new products at the press conference, they are always at the forefront of innovative products.
They are deeply trying to know the market trends and consumer needs. This allows the company has been
ahead of the curve in adopting innovative products.

Financial

The Business couldn’t do anything without anything financial support. Nowadays, with the increase of
higher technology, businesses are more reliant on money to accomplish their goals. The Samsung company
has been increasing the highest growth of sales from 2015 to now. They apply the finance management
system in an internal application. It will avoid in case of errors during the operations, with well-organized
updates to improve finances efficiently. The Samsung company’s finance plays a massive role because their
finances are taken care of which leads to success.

b) Balanced scorecard

A Balanced scorecard is a strategy management that was originated by Dr. Robert Kaplan and Dr. David
Norton in early 1990. Their scorecards let managers introduce four new processes to make the important
link. This is not was not intended to be a replacement for financial measures, but rather it allows the
companies to

- monitor the success of the company’s strategies

- align day-to-day work

- collect the data from business processes and manage numeral resources

- to select critical measures based on these four perspectives (Financial, Customer or stakeholder, Internal
process, Organisational Capacity)

These are four perspectives of the Samsung Electronics Company.

Financial

Nowadays, people are keen on investing money in a company that is done heavily relies on financial
measurement. Samsung’s Financial perspective emphasizes measuring costs overhead expenses or the
results of actions already taken. This action is only concentrated on the history of the past but not on the
future. Their strategy helps to increase revenue and profits which are listed to be sure and they are
implementing a balanced scorecard to clear financial results.

Customer

A customer is a person who buys products from the organization. They are the drivers of revenues and the
organization cannot exist alone without them. The balanced scorecard enables Samsung to step out of its
comfort zone from the customer’s point of view. If the customer is fulfilled with the products, so Samsung
increases profitability with the scorecard. For customer stratification, the Samsung customer support team
always continually interacts with the customers by asking for reviews or customer analysis. During these
years, Samsung has been ranked the most reputable technology brand in the world due to customer
stratification.

Internal Process

Samsung’s internal process is concerned with the performance of how well the entity runs. To excel the
company, they view all the activities of reviewing the product value expected by the customer. The clusters
of Samsung’s internal perspective also include operation management such as controlling the millions of
components of manufacturing phones.

Organization Capacity
The organization capacity scorecard measures by evaluating how well the organization captures. Samsung
Groups are always trying to be skilled in high performance in leadership skill assets. They analyzed the
investigation of the resources from online sources and used the latest technology to attain optimum
performance.
Reference list

1. Alex Williams (2022) What are physical resources? Available at: https://www.speeli.com/what-are-
physical-resources/ (Assessed: Oct 30, 2022)

2. Bill Blades (2017) The relationship between salespeople and sales managers. Available at:
https://www.achrnews.com/articles/134343-the-relationship-between-salespeople-and-sales-
managers (Assessed: Nov 1, 2022)

3. CFI Team (2022) Business Structure. Available at:

https://corporatefinanceinstitute.com/resources/management/business-structure/ (Assessed: Oct
27, 2022)

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11. Paul Merchant (2018) What are the functions of marketing managers and officers? Available at:
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