“MARKETING STRATEGIES OF SAMSUNG”

A project submitted to
University of Mumbai for partial completion of
the degree of
Bachelor of Management Studies
Under the faculty of commerce
By
MUTHULAXMI RAJA DEVAR
Under the Guidance of
Mrs. Jisha Alwin
N.E.S. RATNAM COLLEGE OF ARTS, SCIENCE
AND COMMERCE
N.E.S. COMPLEX, NATIONAL HIGH SCHOOL MARG
BHANDUP, MUMBAI – 400078
2021-2022
 ACKNOWLEDGEMENT
To list who all have helped me in difficulty because they are 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 Principal Dr. Mrs. Mary Vimochana for providing the
necessary facilities required for completion of this project.

I take this opportunity to thank our Coordinator Mrs. Riya Rupani , for her
moral support and guidance.

I would also like to express my sincere gratitude towards my project guide

Mrs. Jisha Alwin whose guidance and care made the project successful.

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 Parent and Peers who
supported me throughout my project.
 Declaration

I the undersigned Ms. Muthulaxmi Raja Devar here by, declare that the work
embodied in this project work “Survey of Samsung products” forms my own
contribution to the research work carried out under the guidance of Mrs. Jisha
Alwin is a result of my own research work and 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, here by further declare that all information of this document has been
obtained and presented in accordance with academic rules and ethical conduct.

MUTHULAXMI RAJA DEVAR

 INDEX

Sr. No. Particular Pg. No.

1 Introduction

2 Literature Review

3 Research Methodology

4 Data Analysis and interpretation

5 Summary and conclusion

6 Bibliography

7 Appendix
 CHAPTER 1
INTRODUCTION
 1.1 Introduction
Samsung ( means "three stars" in English) is a South Korean multinational
conglomerate headquartered in Samsung Town, Seoul. It comprises numerous
affiliated businesses, most of them united under the Samsung  brand, and is the
largest South Korean chaebol (business conglomerate).

Samsung was founded by Lee Byung-chul in 1938 as a trading company. Over

the next three decades, the group diversified into areas including food
processing, textiles, insurance, securities, and retail. Samsung entered
the electronics industry in the late 1960s and the construction and shipbuilding
industries in the mid-1970s; these areas would drive its subsequent growth.
Following Lee's death in 1987, Samsung was separated into four business
groups – Samsung Group, Shinsegae Group, CJ Group and Hansol Group. Since
1990, Samsung has increasingly globalised its activities and electronics; in
particular, its mobile phones and semiconductors have become its most
important source of income. As of 2017, Samsung has the 6th highest
global brand value.

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

largest information technology company, consumer electronics
maker and chipmaker measured by 2017 revenues), Samsung Heavy
Industries (the world's 2nd largest shipbuilder measured by 2010 revenues),
and Samsung Engineering and Samsung C&T (respectively the world's 13th and
36th largest construction companies). Other notable subsidiaries
include Samsung Life Insurance (the world's 14th largest life insurance
company), Samsung Everland (operator of Everland Resort, the oldest theme
park in South Korea) and Cheil Worldwide (the world's 15th largest advertising
agency, as measured by 2012 revenues).

In 1938, Lee Byung-chul (1910–1987) of a large landowning family in

the Uiryeong county moved to nearby Daegu city and founded Samsung
Sanghoe . Samsung started out as a small trading company with forty
employees located in Su-dong (now Ingyo-dong). It dealt in dried-fish, locally-
grown groceries and noodles. The company prospered and Lee moved its head
office to Seoul in 1947. When the Korean War broke out, he was forced to leave
Seoul. He started a sugar refinery in Busan named Cheil Jedang. In 1954, Lee
founded Cheil Mojik and built the plant in Chimsan-dong, Daegu. It was the
largest woollen mill ever in the country.
Samsung diversified into many different areas. Lee sought to establish Samsung
as leader in a wide range of industries. Samsung moved into lines of business
such as insurance, securities and retail.
In 1947, 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's founder Lee Byung-chull. The trading firm
grew to become the present-day Samsung C&T Corporation. After a few years,
Cho and Lee separated due to differences in management style. Cho wanted a
30 equity share. Samsung Group was separated into Samsung Group
and Hyosung Group, Hankook Tire and other businesses.
In the late 1960s, Samsung Group entered the electronics industry. It formed
several electronics-related divisions, such as Samsung Electronics Devices,
Samsung Electro-Mechanics, Samsung Corning and Samsung Semiconductor &
Telecommunications, and made the facility in Suwon. Its first product was a
black-and-white television set.
In 1980, Samsung acquired the Gumi-based Hanguk Jeonja Tongsin and entered
telecommunications hardware. Its early products were switchboards. The
facility was 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 in the 1980s.
After Lee, the founder's death in 1987, Samsung Group was separated into four
business groups—Samsung Group, Shinsegae Group, CJ Group and
the Hansol Group. Shinsegae (discount store, department store) was originally
part of Samsung Group, separated in the 1990s from the Samsung Group along
with CJ Group (Food/Chemicals/Entertainment/logistics), and the Hansol Group
(Paper/Telecom). Today these separated groups are independent and they are
not part of or connected to the Samsung Group. One Hansol Group
representative said, "Only people ignorant of the laws governing the business
world could believe something so absurd", adding, "When Hansol separated
from the Samsung Group in 1991, it severed all payment guarantees and share-
holding ties with Samsung affiliates." One Hansol Group source asserted,
"Hansol, 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 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$13,000,000,000 in the
Austin facility, which operates under the name Samsung Austin Semiconductor.
This makes the Austin location the largest foreign investment in Texas and one
of the largest single foreign investments in the United States.
Samsung started to rise as an international corporation in the 1990s. Samsung's
construction branch was awarded contracts to build one of the two Petronas
Towers in Malaysia, Taipei 101 in Taiwan and the Burj Khalifa in United Arab
Emirates. In 1993, Lee Kun-hee sold off ten of Samsung Group's subsidiaries,
downsized the company, and merged other operations to concentrate on three
industries: electronics, engineering and chemicals. In 1996, the Samsung Group
reacquired the Sungkyunkwan University foundation.
Samsung became the world's largest producer of memory chips 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 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 one share) and Sony (50% minus one
share) and operates its factories and facilities in Tangjung, South Korea. As of
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 a merger
between then three domestic major aerospace divisions of Samsung Aerospace,
Daewoo Heavy Industries and Hyundai Space and Aircraft Company. However,
Samsung still manufactures aircraft engines and gas turbines.
In 2000, Samsung opened a development center in Warsaw, Poland. Its work
began with set-top-box technology before moving into digital TV and
smartphones. The smartphone platform was developed with partners, officially
launched with the original Samsung Solstice line of devices and other
derivatives in 2008, which was later developed into Samsung Galaxy line of
devices including Notes, Edge and other products.
In 2010, Samsung announced a ten-year growth strategy centered around five
businesses. One of these businesses was to be focused on biopharmaceuticals, to
which has committed ₩2,100,000,000,000.
In 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.
On 24 August 2012, nine American jurors ruled that Samsung Electronics had
to pay Apple $1.05 billion in damages for violating six of its patents
on smartphone technology. The award was still less than the $2.5 billion
requested by Apple. The decision also ruled that Apple did not 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 first trading after the ruling, Samsung shares on
the Kospi index fell 7.7%, the largest fall since 24 October 2008, to
1,177,000 Korean won. Apple then sought to ban the sales of eight Samsung
phones (Galaxy S 4G, Galaxy S2 AT&T, Galaxy S2 Skyrocket, Galaxy S2 T-
Mobile, Galaxy S2 Epic 4G, Galaxy S Showcase, Droid Charge and Galaxy
Prevail) in the United States which has been denied by the court.
In 2015, Samsung has been granted more U.S. patents than any other company
– including IBM, Google, Sony, Microsoft and Apple. The company received
7,679 utility patents through 11 December.
On 2 August 2016, Samsung Electronics unveiled the Galaxy
Note7 smartphone, which went on sale on 19 August 2016. However, in early
September 2016, Samsung suspended sales of the phone and announced an
informal recall. This occurred after some units of the phones had batteries with
a defect that caused them to produce excessive heat, leading to fires and
explosions. Samsung replaced the recalled units of the phones with a new
version; however, it was later discovered that the new version of the Galaxy
Note 7 also had the battery defect. Samsung recalled all Galaxy Note7
smartphones worldwide on 10 October 2016, and permanently ended production
of the phone the following day.
Samsung Electronics spent an estimated $14 billion (U.S.) on advertising
and marketing in 2013. At 5.4% of annual revenue, this is a larger proportion
than any of the world's top-20 companies by sales (Apple spent 0.6%
and General Motors spent 3.5%). Samsung became the world's biggest
advertiser in 2012, spending $4.3 billion, compared to Apple's $1 billion.
Samsung's global brand value of $39.6 billion is less than half that of Apple.
On 19 October 2011, Samsung companies was fined €145,727,000 for being
part of a price cartel of ten companies for DRAMs which lasted from 1 July
1998 to 15 June 2002. The companies received, like most of the other members
of the cartel, a 10-% reduction for acknowledging the facts to investigators.
Samsung had to pay 90% of their share of the settlement, but Micron avoided
payment as a result of having initially revealed the case to investigators.
In Canada, during 1999, some DRAM micro chip manufacturers conspired to
price fix, among the accused included Samsung. The price fix was investigated
in 2002. A recession started to occur that year, and the price fix ended;
however, in 2014, the Canadian government reopened the case and investigated
silently. Sufficient evidence was found and presented to Samsung and two other
manufacturers during a class action lawsuit hearing. The companies agreed
upon a $120 million agreement, with $40 million as a fine, and $80 Million to
be paid back to Canadians who purchased a computer, printer, MP3 player,
gaming console or camera from April 1999 to June 2002.

Objectives
 To know about the SWOT analysis of Samsung.
 To get to know about different strategies of Samsung.
 To know the scopes and limitations of Samsung.
 To know about the customers reviews about Samsung.

Limitations
 Main competitors are also largest buyers.
 Lack its own OS and software.
 Focus on too many products.
 Chinese low price market.
 Too low profit margin.

Scope
 Growing demand for quality application processors.
 Product variation.
 Samsung new product
 CHAPTER 2
LITERATURE REVIEW
Samsung UND6400 review: We performed a hands-on evaluation of the 46-
inch SamsungUN46D6400, but this review also The companys literature
Everything you need to know about the Samsung UNEH5300, including
impressions and analysis, photos, video, release date, prices, specs, and
predictions from CNET.LG LM9600 review: But as Samsung has shown this
year with its gimmicky Smart Interaction, streaming media, movies, literature,
Smart Home reviews, ratings, user reviews, and prices at CNET. Find the Smart
Home that is right for you Everything you need to know about the
SamsungUNS9 series, including impressions and analysis, photos, video,
release date, prices, specs, and predictions from CNET .YotaPhone 2 review:
CNET; Mobile; Phones; YotaPhone 2 giving access to a far wider selection of
literature than was available using only Yotas e Samsung Pay: What you need
to know (FAQ) Samsung Pay is now available literature review product life
cycle in the US. Heres how it works and what you need to use the mobile
payment system. Everything you need to know about the LG 50LB6500,
including impressions and analysis, photos, video, release date, prices, specs,
and predictions from CNET .Entourage Edge review: If e-books are the future
of literature, Samsung Galaxy Tab S3. Starting at: $539.99 Samsung essay on
swami vivekananda in Hindi language Wikipedia M7 review: The M7 acts as a
Sound Share device and can stream Bluetooth audio from Samsung Smart TVs.
Sarah Tew /CNET media, movies, literature, Essays - largest database of quality
sample essays and research papers on Literature A Study on Customer
Satisfaction towards Samsung Mobile Phone in Erode City Elizabeth Wambui .
SAMSUNG I am terrible at writing essays SMARTPHONE MARKETING the
story of Samsung Phone reviews, ratings, user reviews, and prices at CNET.
Discover a galaxy of possibilities with the line of mobile phones from LG
BP350 review: its worth paying a bit more for something like the $80 Sony
BDP-S3700 or the $100 SamsungBD-J9500. media, movies, literature, Linksys
NMH405 Media Hub review: Samsung today announced the 2TB capacity of its
popular solid-state drive streaming media, movies, literature, App Radio 3 SPH-
DA210 features a hidden DVD player behind its motorized face
LG LM9600 review - CNET
An tuan Goodwin/CNET On the receiver Seagate Free Agent Pro review: all of
the online literature talks about accessing your Samsung today announced the
2TB capacity of its Sony Cyber-shot DSC-HX20V review: Sony Cyber-shot
DSC-HX20V. Sony’s sales literature claims that the HX20V features 40x Clear
Image Zoom which, Everything you need to know about the Samsung
UNEH5000, including impressions and analysis, photos, video, release date,
prices, specs, and predictions from CNET .Sony KDL-Z4100/B (black) review:
Sony and Samsung have established dubbed Motion Enhancer in the menu and
Motion Flow in Sony’s literature Anki Drive review: Each car takes about 8 to
10 minutes to charge, according the the included literature, Samsung Galaxy
S7.Mobile; Photography; Security; Samsung Galaxy S7 review: Nailed it hi-fi,
streaming media, movies, literature, and cycling. Samsung SmartThings; Wink;
your thermostat to the Web and mobile apps and enjoying the full home tech
and appliances for CNET Reviews. Literature Review On Samsung Mobile(195
ads) Samsung galaxy i9192A Study on Customer Satisfaction towards Samsung
Mobile Phone in Erode City Read and write consumer review sand ratings on
SAMSUNG MOBILEPHONES. Get Literature review on Samsung mobile.
Learn how to write a review of Digital Photography Review: All the latest
digital camera reviews and Samsung UND6400review- CNET Samsung
UNEH5300Release Date, Price and Specs - CNETLG LM9600 review- CNET
Smart Home Reviews- CNETSamsungUNS9 series Release Date, Price and
Specs – CNET YotaPhone 2 review- CNET Samsung Pay: What you need to
know (FAQ) - CNETLG 50LB6500 Release Date, Price and Specs – CNET
Entourage Edge review- CNET Samsung M7 review- 10 reasons to do your
homework CNET Literature Review On Samsung Mobile Free Essays A Study
on Customer Satisfaction towards Samsung Elizabeth Wambui SAMSUNG
SMARTPHONE MARKETING STRATEGY Samsung - Phone Reviews-
CNET Samsung Mobile Phones: Android Galaxy Smartphones.
SUCCES OF DECISION MAKING
Conditions for decision making
Based on their characteristics, it is evident that Samsung followed some
conditions needed to conduct effective decision making:
 The type of decision to be made
 amount of time & resources nature of task being worked on
 type of setting
Method of Decision Making Used
It can be noted that Samsung implemented the "Decision by Authority After
Group Discussion" method in which:
 Leader calls a meeting
 listens to the issues and ideas of innovation
 deliberated until he/she is sure of the decision
 decision is announced to the group
This method is employed by many businesses & government agencies
Conclusion
 Samsung Electronics has been consistent in maximizing long-term
growth by entering new markets.
 Samsung has developed creative advertisement campaigns, strong in-
store programs and high-profile sponsorships.”
Background Info
 Founded by Lee Byung-Chul in 1938 as a trading company
 Samsung means "three stars". "three" represents something "big,
numerous and powerful"
 Samsung is by far the most profitable company is South Korea
 Largest smartphone maker in the world.
 Revenue: $216.6 billion
 sales of smartphones accounted for 25% of the global market in 2014
Conclusion
Characteristics of their Success
"Samsung is giant, but it is a rapid organization. It is well diversified by field
and boasts of top-class global competitiveness in each sector. Its most powerful
strongpoint is its managerial system that has optimized merits of the Japanese
and American-style managerial systems."
Talent-oriented management and high-speed decision-making has led to
Samsung's success with these characteristics:
 speed management
 time management
 removal of unnecessary business processes
 pursuing perfection
 talent-oriented management
 CONSOMER DECISION MAKING
    Consumers go through several steps before purchasing products or services.
    Need recognition is the first step which is very important because it leads
consumers to buy products or services. Smart phone has became a necessity of
morden society. People communicate and obtain information through apps by
using smart phone. Unlike desk top or lap top, smart phone has the advantage of
transportability. Most places offer free wi-fi so that you can access to internet
with your smart phone. It means you can obtain information that you want to
know wherever and whenever you want with your smart phone.
    The second step of consumer decision making is information gathering and
searching. When an individual recognizes his or her need for a particular
products or services he tries to gather as much information as he can. People
can acquire information trough several sources which are personal, commercial,
public and experiential source. You might discuss your need with your peers,
family or co-workers. You can also obtain information through advertisements,
sales people, newspaper, radio, magazine and television. For these reasons,
Samsung Electronics Inc spends their one of the majority budget in
advertisement on televison, radio, newspaper, magazine and so on. You can find
the advertisement of Samsung Galaxy S series every where and thus you can
learn about the products of Samsung Electronics easily. Good warranty is one
of Samsung Electronics'  key of success.  Once you get a good warranty service,
you will think the company in positive way. And it reminds you the product of
company when you decide to buy a new product.
    After gathering the information, an individual may evaluate
alternatives before purchasing products. There are several major smart phone
companies such as Apple, Samsung Electronics, and Black Berry for
satisfying needs of consumers. Samsung Electronics Corporation invests a lot of
money in designing department and advertisement to attract young people in
order to break through give the company an advantage over those strong
competitors.
    After going through all the above steps, customer finally purchases the
product. This process is followed by post purchase evaluation which  refers to a
customer’s analysis whether the product was useful to him or not, whether the
product fulfilled his need or not. According to a website which evaluates
various products, products of Samsung Electronics are evaluated positively by
consumers. In addition, many existing buyers of Samsung Galaxy S series show
high repurchase intention because of good experience with previous products of
the company.
 MANAGEMENTS AND OPERATIONS

“Samsung Electronics Co., Ltd. is a world leader in digital media and digital
convergence technologies” Samsung is society more great world with the
greatest value of the brand. Samsung is operating in over 50 countries
worldwide. The headquarters of Samsung is the capital of Seoul, South Korea.
President of Samsung Group is Mr. KUN HEE LEE. Samsung’s name literally
means “Tri-Star ‘ Korean.” Today Samsung invests in concrete and buildings
under the Samsung brand Foundation sector. The Samsung electronics Word is
written in white on a blue background. It represents the stability, reliability, and
heat. Manufacturers Samsung electronic goods like TVS, computers, laptop
computers, washing machines, microwaves, mobile device usb, boys, cameras,
cd players etc. The other production groups of Samsung is in the construction
sector in real estate, for example, but it specializes in electronic log pipe, tube
pipe, phone (which are made in concrete and iron) log .Samsung is plus brand
credit support cost value. Most of the Samsung Electronics company had moved
in China and other countries in Asia such as Vietnam, the Philippines and India.
The reasons for its transfer were low cost labour and raw materials. These Asian
countries are a much cheaper than the US, Canada and the United Kingdom
way.

Samsung is the third South Korean company that was founded in 1969 as the
flagship of the Group Samsung or Samsung Corporation Company. Samsung
achieved rapid growth through exports. Samsung decided to venture on the
market for television. He started the production of black and white televisions
for local markets in 1972. However, Samsung has done it can become a global
brand. They searched and examined the global market opportunities and
challenges to feedback from customers and employees. Samsung decided to
amend its .Impossible brand concept was to change the perceptions of
consumers with a new brand image. During the Olympic Games in Seoul, Korea
South, in 1988, Samsung decided to become an official sponsor for wireless
technology to combine global sports brand. Thanks to the promotion and proof
hardware Samsung is currently recognized as a mark in the world. Each
country, in particular the Member of the Olympic Games, is now known brand.
In this way, Samsung has managed to change the concept of brand and now has
a good customer. Today, Samsung has 25 production base in the world and
more than 50 sales subsidiaries in almost 50 countries. Their strategy includes
eight major regions of the Southeast Asian, Central Asia, Africa, Middle East,
China, North America, Europe and Latin America

Samsung brand vision is completely different and unique from other brands as:
Sony, LG and Panasonic. “Leading the digital convergence revolution” is the
vision of the Samsung brand. This case study is based entirely on the side of the
Samsung brand electronics.

Electronic management of Samsung operation

Management of the operation is managing product process and distributes

service .Basically, and processes in operation management process include the
creation of products, development, production and distribution. All the
functioning of the Organization has managed operation management .As
Manager Operation; they manage the control quality and quantity of purchase,
storage, logistics and evaluation. Management of the operation depends on
products and services. It is the combination of management services and
products.

Strategic management is the combination of decision and action direction which

determines the long range performance of employers. Management operation is
most important for each enterprise and it determines the success of the
company. After the analysis any company must make a separate and unique
operation strategic company. They know that competition in all national and
international markets appeared again challenge of markets and the new phase.
Whenever the business performance, company brands and quality products are
becoming more important for customers and consumer price and product, the
product development and strategic promotion is the essence of the competitive
advantage.

Samsung electronics operation Manager

      Samsung electronics operations Manager are:

1. They are responsible for managing the business of the day by day with the
supply

Chain, sales and marketing of Chanel

2 They are individual responsible for management plans, stock levels and sell
through

the inventory to different accounts.

(3) They are also responsible for the direct use of financing and procurement.

 Operation and analysis Samsung electronics management strategy

           Management of the operation is any company that manages all internal
factors management process. It’s like a deck of employers and clients. It
manages finance, marketing, skills employers shows as good employees,
employee insurance etc. It also manage capacity product, customer
requirements and

satisfactions. It creates and manage rule and regulation and the agreement
between employers, employees that while customer.

Management of the operation is the field that direct concerned and deals with
the production of goods and services. Operation strategy is functional strategy;
it should assist and provide the guide line and route for the operation and
management for any business journal. It is guided by strategic business

The goal of operational management of the company Samsung is to earn more

money, and objectives are cost, quality, delivery, flexibility and customer
satisfaction. Samsung electronics focuses on five business sectors ‘they are
semiconductor, multimedia, digital applications, LCD network and
telecommunications, globalization and new trends in commercial operation of
Samsung electronics in ten years, shows it means from 1993 to 2003, there were
totally changes employers who operate successfully developments.

In 2007, Samsung electronics becoming the second largest mobile phone

factory in the world. Strategic success is a direct concern for the different actors
of the market and customers. It creates the possibility of skills in management
and marketing, product management design electronic .Samsung DRM product
development creates impacts on their progress, when sales company .If the
some Chinese society as popular electronics in the global market due to the low
cost effects of learning to make DRM products directly as well as quality, this
Samsung Manager time was quite afraid about competitors forecasts Micron
electronic innovate .Samsung Chinese strategic since these new entries in the
Chinese society and attacking Samsung electronic this DARM performances of
vital income from other competitors market.

They improved extensive red to maintain profitable production and product

management. Their plan success and operation management of innovation in the
DRAMS capacity is one of the satisfactions and benefit cost employers. the
quality of products and Samsung original electronic mark on the world market
and goods image and you want outstanding clients are one of the sources of
their premium prices. Today there are many approaches and systems to the
innovation process.
Samsung electronics wants to know the test and desired customer diversity,
because they need to develop products that adapt client diversity lifestyle and
environment. Samsung has been developed, physical design, but now a day in
the past and future come that interface user will be emphasized more. Samsung
is one of the most respected worldwide for its design and its quality.

Recommendation

Samsung company may sell its consumer products and the customer. People can
buy its direct goods on internets also. Samsung groups have direct selling
models, and the telephone network. They may also maintain negative
conversation cash cycle of this model. The company must receive payment
before when what they have to pay for new raw materials. They can also use
just in time management. They must be able to provide their products
(electronic goods) in the right time, right and reasonable prices on track
locations. By JIT approaches can make computers and other electronic goods
only after the customer LAN commands and requesting materials of interest
directly to the needs of customers and satisfaction.

Samsung electronics should maximize their financial shareholders by marketing

to their side’s equilibrium value. They should emphasize their standardized
services customer and client technologies that you want. They propose skims
more guaranteed as warranty. customer insurance, insurance of electronic
equipment.

They should develop strategic marketing based on diversity and different

economic environments. Their strategic activities should focus on their business
activities. Should they produce their electronic products based on customer
want, needs and time requirements. This means that they must change their
basic markets required and new design technologies and marketing strategy. If
they want to become the world leader and largest electronic measurement of
quality marks, they should adopt TOYTA SONEY, LG and PANASONIC
groups also.

It is better for them, they should produce their goods as the same quality but at
different prices, and average as well as electronic Chinese markets, and this
means that they should concentrate they’re not only high market and the rich
but also poor person. They can produce their products in different quality and
different prices on the basis of their capacity and design. They should manage
their recruitment and selection process. They should concentrate their
recruitment and selection of employees on flexibility, diversity, equal
opportunities, etc. sample selection. They should motor employees on the basis
of their performance and efficiency of work. They should improve their market
and the marketing strategy. They should increase their shareholders, as well as
shareholders.

The employee base, skillful standard and best performance shows that they can
able successfully to become electronic brand world leader. Samsung electronics
process design is a good thing. The product has so many designs on the basis of
price and quality customer desired, different diversity. Supply network design is
also a good thing. People can also purchase through the line. Using the
Samsung

Web site, we can find many of Samsung electronics, its goods, management
system and supply chain information. The company must own websites. We can
apply to work through the line.

Conclusion

Samsung brand is famous worldwide for its service and design, the excellent
employees, reliable product innovation. A responsible approach to enterprise
and global citizenship and globalization with partners and customers, Samsung
takes the world in a progressive direction for the next generation.

Samsung’s mission is to be the best ‘digital electronics company’. It complies

with the low and ethical care standard s environmental health and safety.
Mention an eigenvalue organized culture and as to the holders of shares of
client, stakeholders, employees, citizens of socially responsible co device. It
tries so is best marks in the domain electronic materials in the world by
improving its size, quality price, capacity or power devices.
 MARKETING PLANS

Introduction

For any organization to thrive and grow in the competitive market there is a
need to be aware of the external and the internal market conditions. Any
successful organization should start from the scratch by deciding the main
objectives and goals of the organization, then move forward to external market
research, and launch the business (Homburg, Kuester and Krohmer 2013).

The report will mainly evaluate the steps taken by Samsung to become
successful and rule the market. The report will first look into the mission,
visions and objectives of the company. It will then move on to evaluate the sales
trends of the organization. Any big organization will face issues as far as 
economic perspective is concerned and Samsung is no different. The macro and
micro–environmental issues will make the readers aware of the challenges faced
by the organization (Peñaloza, Toulouse and Visconti 2013). It will help in
getting an idea about the types of issues one can face from the market. The
report will further evaluate the marketing objectives of Samsung and will carry
out the SWOT analysis to know the internal strength and weakness of Samsung.
4Ps is another essential factor of marketing that will help the organization to
develop the product, give proper price and promote it in the market (Homburg,
Kuester and Krohmer 2013). The 4Ps is the indicator for the organization to tell
them about how the product will fare in market. The perceptual mapping will
help the company to check the competitors. The position of the competitors in
the market will help Samsung to evaluate the proper positions where the
company will be placed so that it is able to fare well than the competitors. The
marketing pan also involves the planning of the expenditures of the company
that will be required for promoting the company and hence, it should not be
overlooked by any organization (Sheth and Sisodia 2015).
Brief Background Of Samsung Company

Mission Statement Of Samsung Company

The mission statement of Samsung is to innovate new technologies, designs and

products that will help in the enrichment of the life of the people and help in
bringing a sustainable future that will be socially responsible (Jeston and Nelis
2014).

Vision Statement Of Samsung Company

The mission statement of Samsung of Samsung is “inspire the world and create
the future’ (Samsung.com 2016).

The vision statement of Samsung can be explained by the vision 2020. It aims at
innovation in the field of technology, solution and products. The organization
invites the community to join them in this approach so that they are able to give
better and richer experience of digital experience (Homburg, Kuester and
Krohmer 2013). By the year, 2020, Samsung aims at attaining an annual sale of
USD 400 billion and place Samsung in the number one position among of the
top 5 positions as far as overall brand value is concerned. The three strategic
pillars will be able to better explain the business operation, management and
culture of Samsung (Peñaloza, Toulouse and Visconti 2013). The three pillars
are:

 Creativity
 Partnership
 Great people
 

Objectives Of Samsung Company

The objectives of Samsung can be divided into quantitative goals and

qualitative goals.

The quantitative goals include the achievement of USD 400 bullion as far as the
sale is concerned. Moreover, be the number one in the global top 5 and the
internal IT industry (Homburg, Kuester and Krohmer 2013)
The qualitative goals are to be an innovative and respected company. In
addition to this, the objectives include to get a position among the top ten best
workplaces, be the creative leader when it comes to build new markets and be
the global enterprise that will attract the best talent of the world (Choi et al.
2012).

Sales Records Of Last 2 To 3 Years Versus Market Spending Of Samsung

Company Spot Trend

The sales record of Smartphone, one of the most dependent product line of
Samsung has been slow since 2013 until the second quarter of 2015 (Homburg,

Kuester and Krohmer 2013). However, there has been a growth in the sale in the
year 2014 as compared to the sale of the year, 2013.

Number of units sold by Samsung in the year 2014 is 76,129.2 and the market
share 26.2 percent. In the year, 2015, the sale of units fell down to 72072.5 units
and the market share decreased to 21.9 percent (NDTV Gadgets360.com 2015).
Hence, it can be seen that the sales of Samsung hugely varied from the year,
2014 and in the year 2015. The main reason for the fall has been estimated to be
the rise of cheaper 3G and 4G Smartphone in the market and the popularity of
those phones among the consumers (Lusch and Vargo 2014).

Identification Of Product Line Of Samsung Company

Two Other Organizations In Close Substitution With Samsung

The main product line of Samsung is the Smartphone. The market of Samsung
is hugely depended on this product line. The two closest competitors of
Samsung in the field of Smartphone are Apple and Huawei. However, the
position of Samsung is strongest than the position of the two competitors. When
on one hand, Samsung recorded a sale of 72.072.5 units, on the other hand,
Apple recoded a sale of 48,085.5 units and Huawei a sale of 25,085.8 units in
the same year (Homburg, Kuester and Krohmer 2013). The market share of
Samsung was 21.9 percent in the year 2015, whereas the market share of Apple
and Huawei was 14.6 percent and 7.8 percent respectively. The difference in the
units and market share was no different for the year 2014. Samsung recorded a
sale of 76,129.2 units in the year 2014, while Apple and Huawei recorded a sale
of 35,345.3 units and 17,657.7 units respectively. Samsung had  market share of
26.2 percent in the year 2016, whereas apple had a market share of 12.2 percent
and  Huawei had a market share of 6.1 percent (Homburg, Kuester and Krohmer
2013).

Samsung took huge lead in the year 2016 over Apple (Stevens 2016). In spite of
the introduction of the latest iphone 7 of the iphone family, Apple was not able
to make the consumer attract towards them. The introduction of Samsung S6
edge and S7 edge was enough to attract the customers towards Samsung
(Peñaloza, Toulouse and Visconti 2013).

Competitor Information

Apple has its headquarters in Cupertino of California. The company started its
journey in the year, 1976 under the supervision of Ronald Wayne, Steve Jobs
and

Steve Wozniak (Apple.com 2016). It started working as a company that develop

and sells personal computers. Apple was renamed Apple Computers Inc. In the
year, 1977 and was again renamed as Apple Inc. in the year 2007. The latest
production of Apple iphone is the most sought after product among the
consumers. The latest release of apple is the iphone 7 (Peñaloza, Toulouse and
Visconti 2013).

Ren Zhengfei, who was an ex-military officer, founded Huawei. The company
started operating in the markets of China as a private firm (huawei 2016). The
initial aim of the organization is to provide operations services and consulting
services to the organizations in China. Currently, Huawei is having more than
140,000 employees working for it. Out of the huge number of employees 46
percent of them in involved in research and development of the products (Sheth
and Sisodia 2015).

Discussion On Micro And Macro Environment Issues Of Samsung

Company

Micro Environment Factors

Microanalysis defines as the scanning of internal factors for any business

organization that majorly affects the working of a company (Wilson and
Gilligan 2012). If a particular company has favourable internal environment,
then it is an asset to the company as well as leads towards increase in
productivity and further growth opportunities at the same time. Samsung
Company faces stiff competition on global economy especially in India. There
is availability of cheap quality affecting business in the most appropriate way. It
involves constant competitors for innovating in advancement of new technology
(Sheth and Sisodia 2015). Samsung Company focus mainly on customer
services as well as diversification on other segments in an overall manner.
Bargaining power of buyers is higher in this case. There is large availability of
choices that are provided to the potential buyers. Pricing requires to be kept
depending upon the customer needs and expectations and demand at the same
time (Peñaloza, Toulouse and Visconti 2013). It requires adopting innovating
marketing strategy for attracting the potential customers. Good market share
considers as second option in comparison with Nokia and Sony. Buyers has
misconception that Samsung is a Chinese brand It can be noticed that there is
even availability of cheap Chinese electronic products that largely affects the
market share of Samsung Company (Mudie and Pirrie 2012). There is even
delay caused in technological innovation helping other competitors named as
Apple Inc. It is saturated mainly on multimedia as well as communication field
at the same time (Peñaloza, Toulouse and Visconti 2013).

Some of the major international environmental factors are as follows:

Innovation

Innovation is one of the microanalysis factors for the company named as

Samsung. Samsung believes in innovation as well as creativity in their business
operations (Marshall 2014). This is major reason why Samsung is there in news
for good reasons. Until now, Samsung has worked great with the association
with Android. Samsung believes in upgrading their mobile phones and attain the
needs of the potential customers (Lee and Carter 2012). Nexus, which is popular
among the users in and across the globe

Market Size

Android Platform is open for all the major players as well as there is increase in
the Smart phones users as viewed from past few years (Kotler et al. 2015).
Market has considerable shown growth in tern of volume as well as users. It has
been noticed that there is large market for the smart phone users. These phones
are rendering access to millions of users who will get applications as well as
features. As far as perception is concerned, Market demand will grow in the
upcoming years in terms of quality as well as quantity (Hutt and Speh 2012).
Demand and Supply

Samsung Brand has performed successfully well in the current years when it is
discussed regarding high-end smart phones (Homburg, Kuester and Krohmer
2013). Samsung plays major role, as there is high-end smart phones and
supplied in the present global marketplace. This is being supplied by balancing
with the forces of supply as well as demand. Samsung business strategy is well
planned as well as better executed in desired way. It is for this reason when a
particular model demand falls; Samsung comes out with latest version and
launches with updated features and better performance (Hollensen 2015).

Opportunity Cost

Samsung Company analyzes the opportunity cost as it refers to the loss of

potential gain. Samsung moves around in planned ways from the past years as
well as working at a minimum opportunity cost (Goworek and McGoldrick
2015). The company does this by accurate scan as well as research. This helps
the company in making decision in the most appropriate way. Samsung
launches some new product in the market and this gives rise to range of
excitement among the minds of potential customers (Fox all 2014). Samsung
users are on excitement phase for getting new as well as updated mobile phones.

Macro Environment Factors

Samsung business environment is largely affected by both external as well as

internal influences. This majorly affects both local as well as global
performance of close products. Macro environment can be easily understood
with the help of PESTEL analysis for gaining understanding of the external
analysis (Chan, He and Wang 2012).

PESTEL Analysis

Political Environmental Factors

These factors point out the government guidelines involving the intensity of
economy intervention as well as types of goods and services at the same time.
Investors are required to offers its citizens as well as priorities in stipulated time
in case of providing business support. According to Best (2012), country
political legislation affects various fundamental areas like education of the
workforce as well as level of infrastructure and health of the nation. Samsung
Company is subjected in viewing at the political risk’s levels for operational
attributes (Peñaloza, Toulouse and Visconti 2013). Level of political risks varies
from one country to other and considers as one of the tormenting factors.
Samsung Company now faces political instability especially at home country.
Situation of home country is quite dissimilar as well as not intense in measuring
attributes in and against other countries. Samsung experiences inconvenient
business environment in countries like Africa and South East Asia. The business
environment in these countries is hostile in nature possessing negative impact
on Samsung Company. Countries like China as well as India offers
advantageous business environment that majorly focus on markets in an overall
manner (Penalize, Toulouse and Visconti 2013).

Economic Environmental Factors

Economic factors include interplay between finance as well as resources of a

particular country. This factor consists of interest taxes, economic development
and growth, taxation dynamics as well as inflation and foreign exchange rates.
These factors mainly posse’s remarkable impact on the business operations of
Samsung Company (Goworek and McGoldrick 2015). High interest rates
majorly have tendency in reducing the borrowing capability for future analysis
purpose. Inflation majorly affects higher salaries by employees that increase
operational cost. This particular economic situation influencing decisions of
Samsung Company

Social-Cultural Environment Factors

Social environmental factors involve customs, practices as well as tradition

varying from one social group to other (Peñaloza, Toulouse and Visconti 2013).
This revolves around variations for checking the social status affecting demand
for a particular product. Readiness of people deals directly with work. Ageing is
one of the social factors that posses tendency for increasing the pension
payments by business firms. Samsung has succeeded in overcoming the social
challenges by incorporation especially in new markets (Sheth and Sisodia
2015).

Technological Environment Factors

Technological factors involve inventions change products as well as production

process. One of the instance of innovation means online market as well as bar
coding and other computer aided designs in advancement of technology (Sheth
and Sisodia 2015). One of the benefits of technology is the ability in cutting
down production costs as well as improving quality at the same time. Samsung
Company has strong usage of technology and ability in graining towards culture
of innovativeness. Samsung believes in technological inventions that employs in
introduction of new products in global marketplace (Peñaloza, Toulouse and
Visconti 2013).

Environmental Factors

Environmental factors involve weather as well as climate variations that

influences over business operations. It means that increased ways for
safeguarding the environment for creation of impact on given industries like
transportation industry (Homburg, Kuester and Krohmer 2013). In case of
current climate change, spreadsheets by global warming affecting the business
largely.

Legal Environment Factors

Legal factors associates with operations with the company. Legal constraint
influences over business operations as well as demand characteristics of
consumers. Adopting minimum wage rate policy by government largely affects
business firm as increasing the cost of production (Lee and Carter 2012).

CHANGE MANAGEMENT

VBi Ltd, UK

Change management, employees and sound structures  

In 2003 VBi Ltd faced considerable financial risk particularly at the time it was
formed out of a merger; however the organisation had a strong customer base
and a good trading history. The biggest threat to success was the incumbent
workforce who needed to be treated sensitively during the times of change. The
cooperation of the organization’s best workers needed to be secured to bring
about a complete change of culture. VBi had 150 employees and shed 20 in
initial restructuring, and while some of the staff embraced the prospect of
change others were hostile. VBI's management underwent a steep learning
curve about change management resulting in a new understanding of the need to
be inclusive, ask employees for feedback and ideas, and involve them in
implementation giving them a sense of ownership. A senior team was appointed
to work across all disciplines which provided much needed managerial and
strategic direction. At the conclusion of the reorganisation process VBi had
modernised its manufacturing practices, achieved a major cultural shift, and
reduced its employee size to 115 people. At the time of writing in 2006 VBi
enjoyed a healthy annual turnover of £9m  
Anonymous - Large UK building contractor

Change management and local conditions

An anonymous UK organisation *Alpha Build" was compared with three others

and it was found that traditional project management routines had hampered
initiatives to introduce new practices. This led to a new tool being introduced to
help project managers formalise planning processes and to score ongoing
project achievements. Unfortunately the initiative interfered directly with
current project management routines which depended heavily on local
conditions. Hence the attempt to standardise project management
methodologies created a conflict between head office and project managers at
remote sites. The study concluded that when managing change in project-based
organisations it was important to locate the scope, and the impact, of change
initiatives in terms of the degree to which they interfered with existing project
management practices, and the degree to which they disrupted the balance of
knowledge and power within organisations.

Lever Faberge, UK
Change Management brings dramatic turnaround
Subsequent to a major Lever Faberge restructuring exercise performance
challenges were approached by developing a "strategy into action" philosophy.
The corporate strategy was shared among the core leadership team and then
cascaded throughout Lever Faberge.  Key performance indicators (KPI) and
scorecards were used to measure individuals, teams, and departments and
results were communicated in such a way that every employee understood their
part in achieving the desired objectives. KPIs also related to employee reviews
and bonuses. The programme was treated like a marketing campaign with each
of the key improvement areas branded and given a logo. The programme was
communicated to employees through a number of channels including the
factory's intranet, team and departmental meetings, and posters and leaflets
located around the factory. As a result of this a dramatic turnaround was
experienced in customer service performance, manufacturing innovation, and in
the culture of the organisation.
Samsung Group, Korea
Change management improves value creation
Significant organisational changes were carried out at Samsung's corporate
R&D centre. The changes involved:
 Clear strategic direction being provided along with the establishment of
close relationships between business divisions, from planning, through
ongoing management, and commercialisation of R&D projects.
 R&D projects being restructured around core technology areas e.g. digital
technology, nanotechnology, optoelectronics, energy, and biotechnology, al
of which were closely linked with Samsung's business opportunities.
 Sophisticated R&D management processes being developed using Design
For Six Sigma (DFSS) which enabled Samsung's Development and
Manufacturing groups to communicate efficiently and to share DFSS
documentation forms and terminology.
 The use of Matrix management systems.

 Researchers being armed with both technological expertise and business

acumen. The R&D centre was thus better aligned with Samsung's business
units which improved value creation leading to 80% of R&D projects
reaching commercialisation in 2004, compared with 61% in 2002 and 18%
1997.
Pacific Gas and Electric Co, US
Change Management and an extended leadership team
At Pacific Gas and Electric Co., fundamental organisational and cultural
changes were initiated which affected almost every aspect of PG&E operations.
An Extended Leadership Team (ELT) was formed to cascade communications
out to all employees. The ELT members, which were made up of directors
through to supervisors, served as informal opinion leaders and were a critical
part of the success of the organisation-wide changes. The ELT communications
programme included:
Field Forums held  twice yearly for sharing ideas;
 Quarterly teleconference meetings focusing on current priorities/pressing
issues;
  Organised, informal lunches that paired officers (vice presidents, senior
vice presidents and the CEO) with local ELT members;
 News Flashes/E-mails: providing updates and talking points to answer
employee questions;
 Web Site for ELT members, providing timely and consistent information
about critical company issues and transformation updates. These
initiatives increased employee engagement in PG&E's change
communication process.

THE SAMSUNG WAY

“Samsung went from a no-name company in the global market of the early
1990s to a world-class corporation in the second millennium,” explains Dr.
Jaeyong Song, lead author of the just released book The Samsung Way.

How did Samsung became a household name? “Samsung went from a no-name
company in the global market of the early 1990s to a world-class corporation in
the second millennium,” explains Dr. Jaeyong Song, lead author of the just
released book The Samsung Way.

In 2013 Samsung Electronics (IW 1000/14), the flagship company of the

Samsung Group, had revenues of $34 billion. Song points out that this revenue
surpasses HP ( IW 500/9), Siemens (IW 1000/35) and Apple (IW 500/4).

Additionally, since 2006 the company has ranked second, only behind IBM (IW
500/11), in patent registration.
And in brand recognition (Interband’s Global Brand Rankings), Samsung is the
highest-ranking non-American company.

IndustryWeek posed a few questions to Dr. Song to understand the

underpinnings of this transformation so that other manufacturers might replicate
the success.

IW: How did Samsung transform itself from a mediocre OEM manufacturer to a
world-class performer in just 20 years?

JS: The most important factor in Samsung's success was the New Management
Initiative Chairman Lee proposed in 1993. At the time, Chairman Lee was very
concerned about Samsung’s lack of competitiveness in the global marketplace.
The emerging trends in the 1990s, such as globalization, Korea’s
democratization, and digitization encouraged Chairman Lee to take a bold
transformation initiative.

Most importantly, Chairman Lee viewed the emerging digital revolution as a

golden opportunity to get ahead of Japanese electronics giants such as Sony.
These Japanese companies were winners in the existing analog technologies and
were thus reluctant to adopt disruptive digital technologies quickly.

The New Management Initiative had the ambitious goal of making Samsung
one of the leading global companies of the twenty-first century. In order to
achieve this goal Chairman Lee spearheaded a complete corporate
transformation of Samsung. Chairman Lee proposed a famous New
Management slogan, “Change everything except your wife and children.”

Initially, most Samsung employees did not understand why Samsung had to
change so radically. So they only wanted to change their wives. But Chairman
Lee was persistent enough to push forward massive change management
throughout the 1990s, re-aligning every aspect of Samsung’s management
system to its new quality-driven goal. In particular, Chairman Lee pushed
Samsung to invest preemptively in R&D, brand marketing, and design
capabilities for emerging digital products.

The outcomes of the New Management initiative were astounding. Since 2004,
the operating profits of Samsung Electronics have consistently been higher than
the sum of the annual operating profits of Japan’s five major electronics
companies, including Sony and Panasonic.
Role of Partnerships

IW: Part of the company's success was to move into partnerships with other
large companies such as HP and IBM and take an equal partnership role. Why
was this decision made and what was the affect in terms of the company's
competitive position?

JS: Since Samsung was a latecomer which lacked core technologies, the

company had strong incentives to form partnerships with industry leaders such
as HP, IBM, and Microsoft to get access to technologies. Relying solely on
internal development was not a viable option.

However, Samsung absorbed technologies from its partners quickly and

developed its own technologies by making aggressive investments in its internal
R&D capabilities.

As Samsung developed its own world-class competencies that turned out to be

valuable for these industry leaders, it has taken an equal partnership role over
time. The equal partnership with these global leaders enhanced Samsung's status
to the global premier level. Moreover, by signing cross licensing agreements of
patents with these global firms, Samsung was able to develop and sell premium
products.

Hybrid Management System

IW: In the process of creating a hybrid management system that incorporates

Japanese, U.S. and Korean styles of management, what strengths of each were
ultimately chosen?

JS: Samsung’s management style is a hybrid of the best from the Japanese and
American approaches to management (Korean style of management in the early
1990s was very similar to Japanese style of management). The company’s
excellent learning capabilities have been used to optimize the best aspects of
both management styles for many years.

Generally, Japanese management is characterized by market share orientation,

unrelated diversification, vertical integration, emphasis on manufacturing
competitiveness and operational efficiency, strict organizational discipline,
emphasis on employee loyalty, internal and seniority-based promotion and
rewards, and participation of both workers and shareholders in management.
The American management style, on the other hand, emphasizes profits and
revenue, focusing on relevant industries and frequently restructuring businesses
and products. American companies also tend to outsource manufacturing or
move abroad, finding the source of their core competencies in soft capabilities
or intangible assets such as technological innovation, brand marketing
capabilities, and design capabilities.

Compared to Japanese companies, American businesses are typically more

centralized, and because they value core talent with differentiated competencies
more than the loyalty of executives and employees, they depend more on
external labor markets than on internal cultivation of labor. As a result, short-
term employment, thorough assessments and promotions, and employees who
specialize in a particular area, are common in U.S. workplaces.

Samsung’s vertical and horizontal diversification, emphasis on manufacturing

competitiveness and product quality, open competitive recruitment for entry-
level positions, intensive employee training to develop a standardized
workforce, strict organizational discipline, and emphasis on organizational
loyalty all resemble Japanese-style management.

However, Samsung’s management style also resembles American-style

management in many ways. The strategies and personnel policies of Samsung
headquarters exemplify this similarity. Frequent restructuring, emphasis on soft
capabilities (technology, brand, and design), talent recruitment, excellent
performance-based compensation, and risk-taking CEOs are all evident in
Samsung businesses. These are all characteristic of American management.

Samsung incorporated the strengths of both the Japanese and American styles
into its own management system through vigorous benchmarking. After a
lengthy process of research and experimentation, Samsung then tailored both
management styles for its own management system to create a form of
management that is unique to Samsung.

This process has been an ongoing effort for decades as Samsung has grown. It is
difficult to accommodate the elements of both the Japanese and American
management styles into a single company. This is because the elements of either
style are organically connected, and cannot be easily disassembled and grafted
onto the other.

The co-existence of these two styles within Samsung directly stems from the
fact that it runs a business with huge strategic uncertainty while maintaining
massive manufacturing facilities. Its flagship IT business is in an industry noted
for sharp swings in demand and rapidly changing technologies, thus requiring a
high level of strategic foresight.

To survive in such an environment, Samsung has adopted the elements of

American management style like bold risk taking, securing core talent, strong
performance-based incentives, creative organizational culture, and high speed.

At the same time, Samsung strenuously strives to reduce costs based on the
massive manufacturing facilities it has built around the world. Such efforts are
powered by the Japanese management style that Samsung built for decades
before New Management.

As a result, Samsung’s strategic planning, focused on its CEO system, now

mainly uses American practices, while its operations mainly rely on Japanese
management practices.

Intangible assets, including technology, branding, and design, have grown in

importance in the knowledge-based economy of the 21st century. Reflecting this
change, Samsung has reduced its reliance on the Japanese models it adopted in
the past, including an emphasis on standardized talent and seniority based
compensation, while greatly increasing its use of American practices like an
emphasis on core talent, and competencies and performance-based
compensation and promotion.

Nonetheless, rather than complete abandonment of existing practices like open

recruitment, seniority-based compensation and promotion, and long-term
employment, Samsung has maintained their framework to some degree while
transplanting American customs of core talent and performance based pay onto
the previous structure.

The following table summarizes Japanese, American, and Samsung-style

management. This table summarized what strengths of Japanese and U.S.
management styles Samsung has ultimately chosen as a basis of Samsung style
management.

Japanese, American, and Samsung Style Management

Employee Training Program

IW: As manufacturing companies are trying to retain good workers and attract
others, could you talk about the training program at Samsung?

JS: Samsung Human Resource Development Center (SHRDC) has played a

critical role in training Samsung's employees. In 2009, the annual budget of the
center was about $70 million  employing 62 full-time HRD specialists. The
center provided 19,620 man/days of training and education to 3105 SEC
employees. The number of educational programs, which span foreign
languages, business administration, technology, business etiquette, Chinese
characters, etc, was over 1000.

SHRDC has also played a crucial role in not only imbuing employees with
management practices of world-class companies but also disseminating new
management practices. Training and education programs provided by SHRDC
have nurtured key managers and executives at Samsung.

For instance, every step forward promotion ladder, candidates who are eligible
for promotion usually got one-month, full-time training and education at
SHRDC. Each year, about 50 candidates for executive positions for affiliate
companies of Samsung went through five month long intensive education
program and learnt management practices of world-class companies.

After they are promoted to executive positions, they become agents of

implementing new management practices authorized by top management teams
and creating culture that is prone to accept westernized management practices.

IW: Could you highlight some specific improvements in manufacturing

processes that accounts for the company's success?

JS: Samsung Electronics’ manufacturing efficiency is a major source of its

product competitiveness. The starting point of Samsung’s manufacturing
capabilities is Samsung’s SCM system and the Global Operations Center (GOC)
at each business division.

Since sales and production plans are developed on a 20-week rolling basis,
plans are made 20 weeks in advance, and adjustments are made weekly. Every
Tuesday afternoon, the GOC sets or revises production plans for each plant,
confirming the type and quantity of products to be produced by each worker at
each production line and plant three days in advance. This system is strictly
followed, as changes in production plans after the three-day lead inevitably
cause confusion among partners and undermine efficiency in the entire value
chain.

In principle, plants are required to meet the sales offices’ demands when it
comes to the types and quantities of products made. However, because it is too
complex to decide what 36 plants across the world can produce and what 63
sales offices can sell, Samsung’s production sites are required to meet the
demands of the sales offices no matter what they are. More important,
Samsung’s underlying philosophy is to strictly follow the needs of the market
and of customers. After six months of applying this philosophy, Samsung
Electronics was able to supply 98% of the sales offices’ requests, while the sales
offices made efforts to forecast sales more accurately.

Samsung’s production motto is “by the book,” meaning that it produces the
allotted number of products in the allotted time, and then ships them on the
same day. This proved to be an easy goal to meet at the outset, as employees
were eager to work overtime to meet production targets. However, since
overtime allowances raised labor costs, Samsung set the reduction of overtime
as an evaluation criterion the following year. By doing so, Samsung was able to
increase its ability to produce the targeted quantity within the allotted time.

Another defining characteristic of Samsung Electronics’ production is its ability

to quickly adjust output to meet changing demand for an item. To this end,
Samsung has decreased its dependence on traditional fixtures of mass
production like the conveyor belt and introduced new production systems like
flexible manufacturing that enable the company to produce numerous types of
products on a single line, “Lego”-style production (referring to the modular
disassembly and reassembly of production lines), and “cell production,” where
one worker does all the assembly and quality inspection for a finished product.

Samsung used one-person cell production to particularly strong effect in mobile

phones. This process, in which a single worker performs the entire assembly
and testing of a smartphone, is used by companies with exceptionally competent
workers. Each worker is given a quota based on his or her abilities, and the
types of products that the worker is assigned can be changed hourly. Parts are
supplied by robots located in the production process as needed to meet the
production schedules of workers. Samsung’s integrated production system
ensures that parts are supplied and classified based on the individual production
schedule of each worker via an automated process, leading to higher
productivity and fewer defects compared to competitors who use assembly
contractors that rely more on manual labor.
Samsung also uses a block cell production system, in which four to eight
workers collectively assemble and test a smartphone. Most of the employees in
Samsung’s Vietnam plant work under this system, as they are semiskilled as a
result of high offices no matter what they are. More important, Samsung’s
underlying philosophy is to strictly follow the needs of the market and of
customers. After six months of applying this philosophy, Samsung Electronics
was able to supply 98% of the sales offices’ requests, while the sales offices
made efforts to forecast sales more accurately.

Samsung’s production motto is “by the book,” meaning that it produces the
allotted number of products in the allotted time, and then ships them on the
same day. This proved to be an easy goal to meet at the outset, as employees
were eager to work overtime to meet production targets. However, since
overtime allowances raised labor costs, Samsung set the reduction of overtime
as an evaluation criterion the following year. By doing so, Samsung was able to
increase its ability to produce the targeted quantity within the allotted time.

Another defining characteristic of Samsung Electronics’ production is its ability

to quickly adjust output to meet changing demand for an item. To this end,
Samsung has decreased its dependence on traditional fixtures of mass
production like the conveyor belt and introduced new production systems like
flexible manufacturing that enable the company to produce numerous types of
products on a single line, “Lego”-style production (referring to the modular
disassembly and reassembly of production lines), and “cell production,” where
one worker does all the assembly and quality inspection for a finished product.

Samsung used one-person cell production to particularly strong effect in mobile

phones. This process, in which a single worker performs the entire assembly
and testing of a smartphone, is used by companies with exceptionally competent
workers. Each worker is given a quota based on his or her abilities, and the
types of products that the worker is assigned can be changed hourly. Parts are
supplied by robots located in the production process as needed to meet the
production schedules of workers. Samsung’s integrated production system
ensures that parts are supplied and classified based on the individual production
schedule of each worker via an automated process, leading to higher
productivity and fewer defects compared to competitors who use assembly
contractors that rely more on manual labor.

Samsung also uses a block cell production system, in which four to eight
workers collectively assemble and test a smartphone. Most of the employees in
Samsung’s Vietnam plant work under this system, as they are semiskilled as a
result of high turnover rates. Samsung has also outsourced production to
independent manufacturers who used the conveyor belt production system.

Dr. Jaeyong Song, and Kyungmook Lee are the authors of the The Samsung
Way.

NEW ORGANISATIONAL CHANGE

Samsung Electronics is preparing to announce follow-up organizational

reshuffles of executives and employees possibly Tuesday with a focus on
collaborative research and development across different divisions in order to
accelerate synergy, according to company officials Friday.

After promoting 221 executives -- 27 executive vice presidents, 60 senior vice

presidents, 118 vice presidents and one fellow and 15 masters -- Thursday, the
South Korean tech titan is continuing to work on the formation of an
organizational structure that will reflect the company’s plan for next year.

“Considering the belated promotions and reshuffles, any changes in the

organizational structure should be announced by Tuesday at the latest,” said a
Samsung official.
An unprecedentedly large number of promoted executives in the R&D units
may suggest that Samsung is making a vast change towards enhancing the
research power and converging development capabilities of different
technologies, according to industry watchers.

In an earlier appointment of key executives on Oct. 31, Samsung hinted at a

launch of a new research center, tentatively dubbed “Samsung Research,” which
is going to incorporate the Digital Media & Communications R&D Center
under the Consumer Electronics Division with Software Center under the IT &
Mobile Communications Division.

The new research organization is expected to oversee integrated development of

leading technologies for smartphones, TV sets and mobile devices and
development of needed software, including artificial intelligence algorithms and
Internet of Things platform and services.

The consumer electronics division is expected to be slimmed down to a lighter

organization by combining the home appliance unit and visual display unit
under a common vision for the smart home.

The IT & mobile division is likely to hand over its software development unit to
the new Samsung Research Institute, and provide greater support for software
development in order to empower its flagship AI program Bixby, and expand
appliance of the program to more Samsung products. 

“Samsung officials are aware of such upcoming organizational changes,” an

insider said. “Rather than which division we belong to, what service or
technology we will be developing will be the matter of pride (for Samsung
employees) from now on.”

Samsung’s personnel and organizational reshuffles gained have traction since

Kwon Oh-hyun, who used to represent the tech giant’s most lucrative chipset
unit, stepped down from the vice chairman position last month and was
promoted to chairman of Samsung Advanced Institute of Technology,
demanding a change in leadership for future businesses.

Samsung carried out the largest scale of promotions since 2014 after refraining
from such changes due to Chairman Lee Kun-hee’s hospitalization and Vice
Chairman Lee Jae-yong’s alleged bribery of former President Park Geun-hye. 

Considering the dire situation, the company held the 30th memorial ceremony
for the late Samsung founder Lee Byung-chull with the smallest number of
participants at Hoam Art Museum in Yongin, Gyeonggi Province.
 CHAPTER – 3
RESEARCH METHODOLOGY
 Research Methodology
Research Methodology is the process of systematic investigation of any
management problem. It deals with research design, data collection method,
sampling plan, sampling method. “Research” means a specific and systematic
search for pertinent information on a specific topic. Research is investigation or
inquiry especially through search for new facts in any branch for knowledge.
Research comprises defining and redefining problems, formulating hypothesis
of sted solution; collecting, organizing and evaluating data, making deductions
and reaching solution; and at last carefully testing the conclusion to determine
whether they fit the formulating hypothesis, “Methodology” is defined as the
study of methods by which we gain Knowledge. It deals with cognitive process
imposed on research to the problem arising from the nature of subject it matter.

1. RESEARCH DESIGN: The study is to measure effectiveness of the

welfare measures through statutory provisions that is laid by the
organization to be provided to the employees. Descriptive research is also
called as statistical research. The main goal of this type of research is to
describe the data and characteristics about what is being studied. The idea
behind this type of research is to study frequencies, averages and other
statistical calculations. Although this research is highly accurate, it does
not gather the causes behind situation. Descriptive research is mainly
done when a research wants to gain a better understanding of a topic.
Descriptive research the who, where, when and how.
2. SOURCES OF DATA COLLECTION: The research study was done by
collecting of both the sources of data, that is primary data and secondary
data.
 PRIMARY DATA: Primary data is known as data collected for the
first time through field survey. Such data are collected with specific
set objectives. Primary data always reveals the cross section picture
of anything studied. This is needed in research to study the effect or
impact of any policy.
  SECONDARY DATA: Secondary data refers to the information or
facts already collected with the objectives of understanding the past
status of any variable data.

Collected and reported by some source is accessed and used for the objectives
of the study. The secondary data were collected from:

- Books
- Journals
- Records maintained by HR department
- Company websites
- Magazines

3. RESEARCH INSTRUMENT.

QUESTIONNAIRE: The data has been collected from two sources of data that
is primary data and secondary data. Primary data usually consists of
questionnaire methods that are used to obtain the information from the
customers. Primary data are those data which are gathered specially for the
purpose of making the project at hand, by the means of questionnaires and one
to one sessions or personal interactions. A questionnaire was prepared
consisting of 10 questions regarding the marketing strategies of Samsung
company. The questionnaire was prepared on a MCQ format and the customers
only needed to put a tick mark on the option that they felt was right.

This research was mainly undertaken to understand what all welfare facilities
have Samsung company provided to their customers and also to know whether
the customers are satisfied with the same.

The study was taken on 100 respondents who has used or seen the Samsung
products and tried to get feedback from them. Once all the questionnaires were
filled, it was deeply studied and analyzed. Questionnaire was designed in such a
way that it covers all the aspects of problems under the study. The questions
included in the questionnaire were closed ended to tick their options and some
open ended to show their review. All possible ways were taken to keep the
questions simple and unambiguous.
SAMPLE SIZE: Due to time and resource constraint the sample size is taken as
100 for the survey from the population of customers who has used the product
or experienced it atleast once.

SAMPLE DESIGN: A sample design is a definite plan determined before any

data which is collected for obtaining a sample from a given population.
Sampling is used to collect from limited numbers whereas census is used for
large numbers. For the research, sampling design was being used. There are
different types of sample design based on two factor namely representation
basis and the element selection technique. There are two main categories which
various sampling method can be put in. they are:

1. Probability sampling
2. Non probability sampling

In this particular research, the study is on probability sampling and simple

random sample method is used to analyze the problem

PROBABILITY SAMPLING: Probability sampling is based on the concept of

random probability sampling election. The sample may be either unrestricted or
restricted. When each sample element is drawn individually from the population
at large, then the sample so drawn is known as restricted sample. Whereas all
other forms of samplings are covered under the term Restricted sample. The
most frequently used probability samples are:

1. Simple random sample

2. Systematic sample
3. Stratified sample (proportionate & disproportionate)
4. Cluster sample

NON-PROBABILITY SAMPLING: Non-probability sampling is that sampling

procedure which does not afford on any basis for estimating the probability that
each item in the population has been included in the sample. Some of the Non-
probability sampling are as follows:

1. Judgment sampling
2. Convenience sampling
3. Quota sampling
4. Snow ball sampling
TYPES OF QUESTIONS: The following are the types of questions, which are
used in this research. They are: a) Open ended questions b) Close ended
question

a) Open ended questionnaire: An open ended question gives the

respondents complete freedom to decide the form length and detail of the
form
b) Close ended questionnaire: The close ended question is of two types
they are as follows:
1. Dichotomous question: This type has only two answers in the form of
‘Yes or No’, ‘True or False’ etc.
2. Multiple choice questions: In this case the respondents are offered two
or more choices and indicate which is applicable in the following cases

SOME STATISTICAL TOOLS

1. Percentage analysis
2. Weighted average

FORMULA: Number of respondents

Percentage=_________________x 100

Total no. of respondent

PERCENTAGE ANALYSIS: Percentage refers to a special kind of ratio.

Percentage analysis is done to find out the percentage of the response of
the respondents in these tools various percentage are presented by the
way of Bar- diagram, Pie charts in order to have better understanding of
the analysis.

WEIGHTED AVERAGE: Mean in which each item is being average is

multiplied by a number (weight) based on the item’s relative importance.
The result is summed up and the total is divided by the sum of weights.
Weighted averages are used mostly in descriptive statistical analysis such
as index numbers. Also it is called as weighted mean.

LIMITATIONS OF STUDY

1. Time is the important limitation. Due to time constraints only limited

population is taken for the study.
2. Findings based on this study cannot be used in other organizations.
3. There are chances of misrepresentation responses.

DATA ANALYSIS AND

INTERPRETATION
 1. Gender

Gender

1%
Male
34% Female
Transgender
4th Qtr

65%

ANALYSIS: From the above pie chart the gender ratio is 65% are male and
34% are female and there is 1% transgender.
 2. Age group

Age Group

9% 1%
Below 20
21 to 35
36 to 50
50% Above 50
40%

ANALYSIS: From the above pie chart the age ratios are 50% below 20, 40%
from age 21 to 35, 9% from age 36 to 50 and 1% is above age 50.
 3. Do you like Samsung brand ?

7%

Yes
No
4th Qtr

93%

ANALYSIS: From the above pie chart we can analyze that the ratio of
customer who like the Samsung brand are 97% and the customer who don’t like
the brand are 3%.
 4. Why do you like Samsung brand ?

12% 8%

5%
21% Price
Appearance
Functions
Service
Other

54%

ANALYSIS: The above pie chart shows us the ratio of the features of Samsung
brand: 54% are for functions, 21% for appearance, 8% for price, 5% for service
and rest are others.
 5. Which product do you use ?

5%
6%

13%
Moblie
Television
Refrigerator
Other

76%

ANALYSIS: The above pie chart states the ratio of the products used by
customer of Samsung brand: 76% are mobile, 13% are television, 6% are
refrigerator and 5% other.
 6. What influenced you to buy this product?

33%
Television
Newspaper
Magzine
56%
Other

7%
4%

ANALYSIS: The above pie chart shows how the customers were influenced to
buy Samsung products (advertisement): 33% are television, 7%are newspapers,
4% are magazine and rest 56% are others.
 7. What do you think in which product the Samsung brand is well known
for?

6%
3%
10%

Mobile
Television
Refrigerator
Other

81%

ANALYSIS: From the above pie chart we can see the ratio of the most well-
known product in Samsung brand: 81% are mobile, 10% are television and 3%
are refrigerator and 6% are others.
 8. What is the image of Samsung in your mind?

16% 16%

Economical
Durable
Safe
Other
35% 33%

ANALYSIS: The above pie chart shows the ratio of the image of Samsung in
customer’s mind: 33% are durable, 16% are economical, 35% are safe and rest
16% is other.
 9. What do you feel about purchasing Samsung product worthy?

11%

Yes
No

89%

ANALYSIS: The above pie chart shows the worthiness of purchasing Samsung
product for customers: 89% say yes and 11% say no.

10. Are you satisfied with Samsung brand?

 12%

Yes
No

88%

ANALYSIS: The above pie chart refers to the satisfaction of customers with
the Samsung brand: 88% are satisfied and 12% are not satisfied.
SUMMARY AND
CONCLUSION
CONCLUSION:
Compared to other major Korean companies, Samsung survived the 1997 Asian
financial crisis relatively unharmed. The vision statement of Samsung can be
explained by the vision 2020. It aims at innovation in the field of technology,
solution and products. From this we can make out Samsung brand has put up
their full efforts to be in the market with a good image and reputation in the
minds of the customers and has a good place it the market. They are bringing up
new ideas and innovations to exist in the market which brings a fame to their
company in the market in the minds of customers.
BIBLIOGRAPHY
Book reference:

 The Samsung Way: Transformational Management Strategies from the

World Leader in Innovation and Design-2014
 Samsung Rising- 2020

Websites:

 www.wikipedia.com
 www.samsung.com
APPENDIX
 QUESTIONNAIRE
1.Gender

-Male

-Female

-Transgender

2. Age group

-below 20

-21 to 35

-36 to 50

- above 50

3. Do you like Samsung brand?

- Yes

- No

4. Why do you like Samsung brand?

-Price

-Appearance

-Functions

-Service

-Other

5. Which product do you use?

-Mobile

-Television

-Refrigerator

-Other
6. What influenced you to buy this product?

-Television

-Newspaper

-Magazine

-Other

7. What do you think in which product the Samsung brand is well known for?

-Mobile

- Television

-Refrigerator

-Other

8. What is the image of Samsung in your mind?

- Economical

-Durable

-Safe

-Other

9. What do you feel about purchasing Samsung product worthy?

-Yes

-No

10. Are you satisfied with Samsung brand?

-Yes

-No