Report

On
Balanced Scorecard
&
Strategy Map
On
Samsung MOBILE in Bangladesh
 Report
On
OSL E115: Balanced Scorecard: Strategic Management System
“Balanced Scorecard & Strategy Map
on
Service Engine BPO”

Submitted to
Muhammad Abdul Moyeen
Chair-person
Department of Organization Strategy & Leadership
University of Dhaka

Submitted by

Mehedi hasan 91702004

Moktadir Billah 91702013
Juthi Akter 91803030
Shefat Ara 91803057

Date
31-12-2019

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 Executive summery
The report is based on “Balanced scorecard & strategy map on Samsung
MOBILE in Bangladesh”. This report is a partial requirement for the course of
E115-Balanced Scorecard-Strategic Management System of the Master of Business
Administration evening program of Department of Organizational Strategy &
Leadership of University of Dhaka. The main objective of the report is to indicate the first
step of generating Balanced scorecard & strategy by that it makes a very important role for
providing customers varied facilities. For this report, the information has been collected
discussion, sensible work expertise, personal interview, many books and periodical
associated with the corporate, annual reports, and prospectus etc. knowledge & information
considers therefore confidential that we couldn't able to collect all sufficient data. Samsung
MOBILE in Bangladesh was established in 2007 which R&D Institute Bangladesh
(SRBD) started its operation in June, 2010 and was officially inaugurated in February
2011. It is also the first R&D hub of a multinational company in Bangladesh.
Major research areas of SRBD include mobile app development and
commercialization, mobile platform verification and testing, and local business
support. It has offices both in the Vietnam, Taiwan, Canada and Bangladesh.
Currently,

The whole report is really a sensible base to form acquainted a selected space. during this
report we have a tendency to try and introduce strategy. the full report actually focuses on
two things, firstly, designing balanced card & second aligning & implementing those strategy.

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 Table of content

Executive summery 3
Introduction 5
Company Background 6
Mission 7
Vision 7
Values 7
Customer value proposition 7
SWOT Analysis 8
Balanced Scorecard 9
Theme 1: Ensure superior service 9
Theme 2: Strategic Leadership 12
Strategic Map 15
Alignment & integration 16

Conclusion & recommendation 19

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 Introduction
The Balanced Scorecard (BSC) was originally developed by Dr. Robert Kaplan of
Harvard University and Dr. David Norton as a framework for measuring
organizational performance around 1990. The balanced scorecard (BSC) is a
strategic planning and management system that organizations use to:

 Communicate what they are trying to accomplish

 Align the day-to-day work that everyone is doing with strategy
 Prioritize projects, products, and services
 Measure and monitor progress towards strategic targets

The system connects the dots between massive image strategy parts like mission,
vision, core values, strategic focus areas and therefore the additional operational
parts like objectives, measures, targets, and initiatives. One of the foremost powerful
parts within the BSC methodology is that the use of strategy mapping to examine
and communicate how value is created by the organization. a technique map could
be a easy graphic that shows a logical, cause-and-effect affiliation between strategic
objectives BSCs square measure used extensively in business and trade,
government, and non-profit-making organizations worldwide. over 1/2 major
corporations within the U.S.A., Europe, and Asia square measure victimization the
BSC, with use growing in those areas yet as within the geographical area and Africa.
BSC has conjointly been electing by the editors of Harvard Business Review united
of the foremost authoritative business ideas of the past seventy five years. The aim
of this report is to explain however the balanced record will be used as a tool for act
strategy on Samsung MOBILE in Bangladesh as an example of however the theories
are measured & applied within the reality outside the textbooks. It creates a chance
to explain however the balanced record functions in follow because the management
tool it's claimed to be.

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 Company background
Samsung is a globally recognized brand which has started in journey as mobile
brand in 1983. Much of their earlier work was similar to that of the Motorola
Company. They developed a car phone in 1986. Samsung started to change its
lineup in the early 2000s. It was the development of their first smart phone- the
Samsung Galaxy- that would start to catch the eyes of the mobile consumer. This
was widely accepted by the mobile market and aside from a lack of a firmware
update, it was a success. Samsung would take the consumer complaints and use it
to manufacture later models. One of its most successful earlier versions of mobile
smart phone was the Galaxy S1, a follow-up phone that would sell around 24 million
units in its first three years in the mobile industry. Now Samsung is one of the
successful and established mobile brands in all over the world.

SAMSUNG MOBILE IN BANGLADESH

In Bangladesh Fair Distribution Limited is involved in distributing Samsung Products.
FDL launches Samsung Mobile devices to the people who like to use fashionable,
smart and elite class device. FDL is the national distributor of Samsung phone in
Bangladesh. In April 2018, Samsung announced assembling of smart phones in
Bangladesh in their new factory in collaboration with Fair Electronics and the factory
started production of smart phones in May, 2018. Fair Electronics Ltd has set up a
mobile plant in Narshingdi and started assembling a range of 4G Smartphone from
June last year. In one year, FEL has assembled about 15 lakh pieces of Smartphone
in that plant with a price range between Taka 7,500 and Taka 40,000.

Samsung mobile Bangladesh declared that “their aim is to present Bangladesh as a

technological hub to the world and they are moving forward with that goal,” Currently
Samsung is the top player in the Smartphone segment where they have 31 percent
market share in terms of volume which is 48 percent in terms of value. Samsung is
the first multinational mobile device company that set up assembling plant in
Bangladesh , they want to be the major technological partner of Bangladesh.

Vision:
Vision 2020
"Inspire the World, Create the Future".

A vision statement describes the future picture of the organization. The vision
statement of SAMSUNG clearly shows that it is very customer focused company.
This statement has drawn an emotional picture for the people of the world.

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Mission:

“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.

Mission statement describes a company’s function & fundamentals of its existence.

The mission statement here articulates the company’s purpose both for the
organization & for the public as well. The company is well invested in creating
technology that brings positive change to the world. Samsung’s efforts to be more
than just an environmentally conscious business by introducing several programs
that support e-waste recycling and handling. 

Values:

Excellence Change
People

As we have done since

Quite simply, a Everything they do at our foundation, we set
company is its people. Samsung is driven by our sights on the future,
At Samsung, they are an unyielding passion anticipating market
dedicated to giving for excellence and an needs and demands so
their people a wealth unfaltering commitment they can steer their
of opportunities to to develop the best company toward long-
reach their full products and services term success.
potential. on the market.

Integrity Co-
prosperity

Operating in an ethical way Samsung is committed

is the foundation of their to becoming a socially
business. Everything we do and environmentally
is guided by a moral responsible corporate
compass that ensures citizen in all of its
fairness, respect for all communities
stakeholders and complete worldwide.
transparency.
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Customer Value proposition:

Primary customers of SAMSUNG MOBILE are- Lower to higher income mobile users

The stakeholders of the company are- Owners, employees, community.

Attributions:
 Adequate technology- .Samsung has pushed the limits of mobile technology
and set the standard for what the smart phone can – and should – be. By
advancing mobile technology, building groundbreaking form factors, and
delivering creative solutions, the Galaxy series has helped millions
accomplish more on the go.
 Reliability- in BD Mobile market Samsung mobile has the largest market
share and its growing fast which clearly states its reliability among people.
 Warranty- Samsung mobile provides one year of warranty for each handset.

SWOT analysis:
As a part of environmental scanning, SWOT shows the internal strength & weakness
and external opportunity & threats of an organization. It helps to make strategy to
achieve goals. The SWOT of Samsung mobile has described the enablers and pain
of the company.

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 Strength Weakness
R&D centre in BD Lower profit Margin
Innovative brand with high Lack of own OS &
E technology Software
n P
a SWOT a
b i
l OpportunityANALYSIS Threat n
Assemble plant in Growing competitors in
e Narsindi market
r Local partnership with Legal & Regulatory threat
s Fair Electronics Ltd.

Figure 1: SWOT of SAMSUNG Mobile

Balanced scorecard

Theme 1- Technological Excellence:

According to business scorecard theoretical learning, we tried to come up with four
perspectives or four categories of performance measures for Samsung Mobile. The
financial perspective in technological excellence refers whether the company’s
strategy and operations are able to add value to shareholders. Customer perspective
indicates in which way the company’s strategy and operations add value to its
clients. The internal business and production process perspective emphasizes the
ability of the internal business processes to add value to customers and to improve
Samsung Mobile’s financial performance. Finally, the learning and growth
perspective indicates the strength of Samsung Mobile’s infrastructure for innovation
and long-term growth.

The balanced scorecard framework procures the power of the company by providing
it a holistic view of business value through its four perspectives.

Theme 1 – Technological Excellence

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As the company has mission to they will create superior products by devoting the
best brains in the business towards doing it. It also alludes to Samsung developing
technology which will, in turn, be used to create superior products. Samsung’s
mission is to rule the technology world, and that can only be achieved by beating the
rest. They are aiming not just to beat them by developing superior products but
offering superior services too. That for a partnering business or the end-user is a
win-win situation.

Financial Perspective

According to the BMPIA, 3.07 crore handsets worth Tk 9,000 crore were sold in
Bangladesh last year. Samsung has achieved the highest market share in 2019 in
BD mobile market which clearly shows the strong financial health of the company.
Samsung NEXT Ventures brings resources and funding to startups with the potential
to deliver outsized financial returns.

Startups receive the support and collaboration opportunities they need to thrive, all
while adding to Samsung’s growing software and services market intelligence.
Leading businesses say as the sales of basic and feature phones have dropped
rapidly, it has affected the total sales. Enhanced monitoring has also made it tougher
to bring in devices through illegal channels. “From Samsung’s point of view, we are
happy with our assembling growth but the overall industry has not kept pace with
us,” Mohammad Mesbah Uddin, chief marketing officer of Fair Electronics, which
assembles handsets of Samsung in its plant in Narsingdi. He is also the joint
secretary of the BMPIA. There is huge potential in the market, but the business
volume is not growing as expected. “Maybe, the network quality of mobile phone
operators is an issue. If people do not get expected speed on their device, what will
they do with smart devices?” So these problems needed to be solved.

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 Figure: Mobile vendor market share in Bangladesh

Customer’s perspective

Samsung is highly committed to give their customer a highly satisfied experience by

providing the new technology based handset. They have brought variety of new
products with innovative features and functions. In testament to Samsung’s
consistent pursuit of excellence in design and function, Gear S2 was named “Best
Connected Consumer Electronic Device” in the Best Mobile Handsets & Devices
category. This award recognized Gear S2 for its versatile circular design and intuitive
functionality for a more convenient and enjoyable experience. Samsung Galaxy S6
edge was also awarded “Best Smartphone 2015”, in acknowledgement of its
functional design and usability for seamless everyday use. Samsung mobile has
strong emphasized on R&D. Samsung R&D Institute Bangladesh (SRBD) started its
operation in June, 2010 and was officially inaugurated in February 2011. It is also the
first R&D hub of a multinational company in Bangladesh.

Figure: Mobile vendor market share in BD

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Internal Perspective:

To hold the level of excellence in every aspect of the product & service delivery the
company needs skilled team lead. It can help to ensure gain customer loyalty and
acquisition of new customers. Samsung’s organizational culture motivates workers to
achieve excellence in their job performance. The corporation directs human resource
attention toward organizational development and maintaining a brand image of
excellence and technological superiority. Samsung understands the important of
market for company. In this objective, Samsung brings new innovations and more
commercialization. Innovation is critical to growth. Samsung made more innovations
in order to get advantage over the competitors. They understand clearly that one of
the ways to speed the market is by giving more innovations into the products.
Therefore, Samsung will have lesser competitors by doing that. .

Learning & Growth:

The regional specialist program of Samsung epitomizes Samsung’s commitment to

pioneer global markets and nurture talent, allow selected employees to provide
training overseas while also learning local languages and culture for one to two
years. Research and development identifies the current required intangibles, human
resources, and the current organizational culture. This also works for Samsung. The
information technology needs to be updated and the company keeps developing new
technologies and knowledge all the time. It also applies for the human resources
that are encouraged to keep learning and developing their skills. Meanwhile, the
organizational structure also needs on-going improvement to cope with the latest
situation, to increase the competitiveness of the company, and to increase the
effectiveness and efficiency of the current culture, which determines the success of
the operation. Therefore Samsung needs to facilitate the research and
development activities since it’s an important factors and business requirement for
the company to keep its competitiveness in the IT industry.

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 Perspective Objectives Measures Target Initiative
Financial Efficient Asset Asset turnover 2.7% Proper managerial
utilization guideline

customer New client Rate of increased 33.4% Invest more on R&D

acquisition market share
Customer Review of client Reliability Promote strong brand
satisfaction image
Internal Skilled team Efficiency productivity  Performance
based record
system
 Increase
employee
moral
motivation
Learning & Well improve Expertise in High  Provide
Growth utilization of technology training to the
technology employees
 Acquire new
technology

Figure: Theme 1: Technological Excellence

Theme 2: Strategic leadership:

In Samsung’s Philosophy we have found Samsung is committed to complying with
local laws and regulations as well as applying a strict global code of conduct to all
employees. It believes that ethical management is not only a tool for responding to
the rapid changes in the global business environment, but also a vehicle for building
trust with its various stakeholders including customers, shareholders, employees,
business partners and local communities. With an aim to become one of the most
ethical companies in the world, Samsung continues to train its employees and
operate monitoring systems, while practicing fair and transparent corporate
management.

Financial perspective:

Samsung Catalyst Fund is a strategic investment tool for the Chief Strategy Office
that enables Samsung to work directly with the best and brightest startups. Samsung
Catalyst Fund views startups as more than simply avenues for financial returns.
Through its multi-stage investment strategy, it works with startups to help accelerate
their innovation while amplifying synergy with Samsung. Entrepreneurs in Samsung
Catalyst Fund's portfolio get an inside track to Samsung's future growth, helping
create new generations of cutting edge business success. The financial objective
here aims to increase profitability and growth in sales by investing in R&D. Samsung

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spends a record amounts on its R&D. The trend in 2019 seems to be no different,
with Samsung spending a record $8.4 billion on R&D during the first six months of
the year, according to the company’s financial report. This amounts to an increase of
12.2% when compared to the R&D expenditure from the same period last year. The
company’s R&D spending as a proportion of sales also hit a new high at 9.3%.

Customer perspective:

To provide the best and highly appreciable product to the clients Samsung invest a
high amount on innovation. New technological experience will allow Samsung to gain
customer acquisition and retention of the customer. At Samsung Strategy and
Innovation Center, They drive global innovation for Samsung in diverse fields such
as artificial intelligence, digital health, the Internet of Things, autonomous mobility,
data center infrastructure, security, privacy and more. They accelerate Samsung’s
entry into new business areas through research and innovation and by creating new
opportunities through mergers and acquisitions.

Internal Perspective:

Samsung has an innovation-centered organizational culture. This corporate

culture is part of an organizational design that emphasizes employees’ knowledge,
skills, and abilities for innovating the company’s technology products, such as smart
phones and laptops. Proper utilization of resource can ensure more efficiency for the
company.

Learning & Growth perspective:

Human resource development is understandably an underlying strategic objective

linked to Samsung’s corporate culture. For example, the company ensures career
development opportunities not just through institutionalized programs, but also by
encouraging employees to support each other toward achieving their career goals
within the technology business organization. This characteristic of the organizational
culture puts innovation at the center, based on the recognition that change is
essential when it comes to technological innovation.

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Perspectiv Objectives Measures Target Initiative
e
Financial  Return on  Percentage  9.3%  Undertake
R&D of growth in research for
sales new
innovation
customer  Extend  No of new  Six new  Research on
new services service particular
services offered s areas of
services
 Suggestions
from client
Internal  Increase  Measure  high  Implementin
efficiency efficiency g value
level added
process
 Ensure
optimum use
of recourses
Learning &  Encourage  Number of  100  Employee
Growth culture of new ideas new feedback on
innovation gained from ideas innovation
internal and
external
sources

Figure: Theme 2: Strategic Leadership

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 Alignment of theme 1 & Theme 2

Perspec Objectives Measures Target Initiative

tive
Financia  Efficient Asset  Asset turnover  2.7%  Proper managerial
l utilization  Percentage  9.3% guideline
 Return on R&D growth in sales  Undertake research
for new innovation

custome  New client  Rate of  33.4%  Invest more on R&D

r acquisition increased  Reliability.  Promote strong brand
 Customer market share  Six new image.
satisfaction  Review of client services  Research on
 Extend new  No of new particular areas of
services services offered services
 Suggestion from
client.
Internal  Skilled team  Efficiency  Productivit  Performance based
 Increase  Measure y record system
efficiency level. efficiency  High  Implementing value
added process
 Ensure optimum use
of recourses
Learnin  Well improve  Expertise in  High  Provide training ,
g & utilization of technology  100 new  Acquire new
Growth technology.  Number of new ideas technology
 Encourage ideas gained  Employee feedback
culture of from internal on innovation
innovation and external
sources

Figure: alignment of theme 1 & 2

Strategy map

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 If we can implement all the initiatives, we get high skilled human resources and
innovative culture for our company. High skilled human increases technology uses
successfully. High technology using helps to achieve quality services and efficient
assets utilization. Thus way we can achieve our company’s long term values. All this
alignment will helps the company to achieve its desired vision.

Strategy Map

Vision

Mission

Company
Values
Financial Sales
perspective Efficient
Asset Growth
Utilization

Reliable
Customer
Extension products
perspective
of new
services

Internal Increasing
Focused on
perspective technology
R&D
uses

Learning &
High Innovative
Growth
skilled culture
perspective

Strategic Theme:

Theme 1: Technological Excellence

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Theme 2: Strategic Leadership
 Aligning & integration
All the jobs are important to the organization; each position has an importance in
bringing it to its desired position .Some jobs create differentiation for the
organization. Organization needed to focus on the jobs those has high impact on
organization strategy. To achieve the themes in balanced scorecard of Samsung
Mobile BD, activities need to be aligning properly to the corresponded department.
Because of the lack of alignment, the business unit and the SAMSUNG’s strategy
would not be implemented properly & eventually it will be failed.

Conclusion & Recommendation

We have tried to gather data from the current market and ended up with a overview
of Samsung mobile market is highly competitive any delay in taking any initiative can
bring loss for the company. Proper implementation of strategy is needed to be
measured too. If there is failure of any strategy then a different strategy should be
taken immediately for that particular event. So we recommended to follow the below
activities in conclusion:

1. Ensuring effective budget in every initiatives.

2. Feedback should be measured after implementation of any strategy.

3. If needed new strategy should be taken.

References:
 Annual report (2019) Samsung electronics Ltd.
 Kaplan & Norton (2004) Strategy Maps, Harvard Business School Publishing
Corporation
 Norton & Russell (2005) Balanced Scorecard Insight, Harvard Business
School Publishing Corporation
 Text Book- Translating strategy into action THE BALANCED SCORECARD
(Robert S. Kaplan, David P. Norton)
 Websites related to Balanced scorecard system.

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