Professional Documents
Culture Documents
Samsung Company
Samsung Company
Samsung Company
PROJECT ON
SUBMITTED
BACHELOR OF MANAGEMENT
PROJECT GUIDE
PROF.SUJATA YADAV
SEMESTER-VI
(2018-19)
1
DECLARATION
I, the undersigned, MISS. KHUSBU SHAHU, a student of A.E KALSEKAR College of Arts
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
(KHUSBU SHAHU)
2
SHURPARAKA EDUCATIONAL & MEDICAL TRUST’S
CERTIFICATE
_____________ _____________
Project Guide Principal
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 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. SUGESSTION 73
III. CONCLUSION 74
IV. BIBLIOGRAPHY 75
5
INTRODUCTION
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
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
Resort, the oldest theme park in South Korea),[ Samsung Techwin (an aerospace,
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
7
LITERATURE REVIEW
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
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.
Companies should contact customers who have stopped buying or who have switched
toanother supplier to learn why this happened.
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
10
OBJECTIVES TO STUDY
IMPORTANCE:-
This study helps the company to know whether the customers are satisfied with product &
after sales services.
11
ABOUT SAMSUNG
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.
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
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
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
Telecommunications Co., and made the facility in Suwon. Its first product was a black-and-
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
(discount store, department store) was originally part of Samsung Group, separated in the
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
"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
1990 to 2000
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
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
2000 to 2013
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
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.
In 2010, Samsung announced a 10-year growth strategy centered around five businesses. One
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
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 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
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
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
In 2013 news outlets in Australia and New Zealand reported a number of Samsung washing
https://www.google.com/search?q=SAMSUNG&rlz=
SOURCE:
18
BOARD OF DIRECTORS OF SAMSUNG
Gee-Sung Choi
• President & Head, Digital Media & Communications Business, Samsung Electronics
(2009~2009)
(1994~1998)
19
Ju-Hwa Yoon
Head, Global ERP Task Force, Corporate Executive Staff, Samsung Electronics
(2007~2009)
(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
In-Ho Lee
• Director & Deputy President (Executive Vice President), Shinhan Bank (1991~1999)
21
Han-Joong Kim
• Chairman, Board of Directors, The Korean Society for Preventive Medicine (2006~2008)
Byeong-Gi Lee
22
Key People Samsung Electronics Co. Ltd.
Board of Directors
23
Director
Sun Uk Kim,Independent
Samsung Electronics Co., Ltd.
Director
Kwang-Soo
Samsung Electronics Co., Ltd.
Song, 69Independent Director
24
ORGANISATIONAL DEVELOPMENT AN ACQUISITIONS
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
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
opportunities and ensuing challenges and chaos. It is worth understanding what OD is not. It
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
Samsung's R&D organization has three layers. The Samsung Advanced Institute of
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:
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
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
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
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
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.
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
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
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
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
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
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
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
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
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
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
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
2.SONY
31
for the consumer and professional markets. Sony is ranked 87th on the 2012 list of
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
Financial. Sony is among the Worldwide Top 20 Semiconductor Sales Leaders and third-
Electronics.
The Sony Group is a Japan-based corporate group primarily focused on the Electronics
(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
32
3. L.G.
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
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 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
33
4. APPLE
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.
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
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.
By November 1970, Samsung succeed in producing 12-inch black-and-white TVs, and just
In 1972, Samsung set up a Braun-tube bulb factory and after extensive investment and
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
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
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
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
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
‗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,
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
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
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
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
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
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
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
• Challenges and threats from current competition and future prospects Global and
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
The professional discipline and business function that oversees an organization's human
From the corporate objective, employees are viewed as assets to the enterprise, whose value
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
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,
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
In the recent time human resource management (HRM) has assumed new prominence
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
(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
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
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
market, it first explores the external conditions for Samsung Company and their
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.
Samsung mobile‘s vision is guided by a extraordinary vision that to lead the digital
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
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
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
reduction of import tax for international company therefore if they win the election
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
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.
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
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
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
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
Samsung is a diverse business with chips, displays, and other technology. This pays
hasn't gotten too. Although, many would argue that Apple chooses not to include
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
This push has paid off too, with Samsung scoring many points at Apple's expense.
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
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
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
Samsung's in more places than Apple with a brand new phone, as well as lower end
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
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
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.
It's aggressively investing in Silicon Valley with several big campuses to help it start
49
Market share
Samsung
world Leading Market
Product Year Source
market competitor share
share
[123]
DRAM 49.6% SK Hynix 24.8% Q2 2013
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
Percent of
Rank/company Part description
total sales
5 Verizon
Handsets, etc. 1.3
Communications
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.
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
based on the empirical observation & logical reasoning. Scientific method consists of
Methods of Research:–
2) Other Method
Data Collection:-
54
Methods of Data Collection:-
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.
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
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
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
57
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.
58
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
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 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
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
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.
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%.
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 is comprised of companies that are setting new standards in a wide range of
They share a commitment to creating innovative, high quality products that are relied on
Electronics Industries
• Samsung Electro-Mechanics
• Samsung Corning Precision Glass
• Samsung Networks
Chemical Industries
• Samsung Petrochemicals
Financial services
61
• Samsung Securities
SAMSUNG FINANCIALS
62
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%
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
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
64
Excellence
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
moral compass that ensures fairness, respect for all stakeholders andcomplete transparency.
Co-prosperity
65
BUSINESS PRINCIPLES
66
Vision
We believe that through technology innovation today, we will find the solutions weneed to
grow, for citizens in emerging markets to prosper by tapping into thedigital economy, and for
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
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
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
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
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.
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
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
And I went to the bank expecting the bank teller to be friendly, informative, and helpful with
my transactions.
70
Level: - 3
airline provide only for first-class passengers. In fact, I once took a flight where the flight
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
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
71
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 &
6. The company can improve the after sales service which is provided by the
SamsungCustomer Care.
73
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.
74
BIBLIOGRAPHY
https://www.samsung.com/in/aboutsamsung/home/
SCRIBD.COM
WIKIPIDEA
75