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ACCOUNTING
Samsung Electronics Ltd. (Balanced Scorecard
Analysis)
Compiled by:
Bernardus Alan Handoko 11/311392/EK/18212
Aya Putri Argatika 11/320288/EK/18685
Reza Mediar 11/320298/EK/18695
Novi Prastia 11/320299/EK/18696
SAMSUNG’s Products
Samsung SCX-3406FW
Samsung’s financial perspective emphasizes the stakeholder concern about how efficient and effective the
unit is at using its resources. Its balanced scorecard in the financial perspective serves one objective which is
Maximize Return to Shareholders.
Maximize Return to Shareholders
The Company will actively pursue increases in investment return for shareholders by maximizing
profits through transparent and sound management. The Company will honor its responsibility to
shareholders and interested parties by announcing major financial and corporate information in good
faith and in a timely fashion. The Company will accept and sincerely consider legitimate petitions from
external shareholders
In increasing the shareholder value, Samsung tends to improve its productivity and revenue growth:
High Earnings Results by Strengthening Competitiveness
Recently, we often heard about Samsung product including Mobile phone, Televisions, Camera,
Refrigerators, and so on. By developing and expanding market leadership through electronic products
such as Mobile phones, Televisions, and so on, Samsung reaches enhancement in revenue. In 2013, we
delivered record sales of KRW 229 trillion, up 14% from the previous year, and both operating profit
and net profit increased by 27% and 28%, respectively, over the year to KRW 37 trillion and KRW 30
trillion.
Developing Key Competitive Advantages
Samsung is currently focusing effort in developing key competitive advantages such as technology and
brand image, and expanding a foundation for a new growth engines. Amid revolutionary changes
recently seen in the IT industry, Samsung focused efforts to enhance the R&D capabilities by increasing
R&D personnel and revamping the organization structure. It expanded partnership with external
research institutions by establishing an open innovation system, newly built internal research centers
including SofTech and Big Data Center to strengthen the software capabilities, and also plan to open
a material and future technology R&D center going forward. To expand the base for future growth
engines, Samsung is focusing its resources and competencies onto not only existing medical devices,
LED, and B2B businesses, but also on Smart Home, mobile health, and other life-care areas, which
could improve quality of life.
Increasing Profitability
Currently, Samsung tends to increase profitability through enhanced business competitiveness and
sound business management. Not only that, Samsung also tries to solidifying its leadership in IT
business. In addition, Samsung also willing to improve efficiency of the company-wide resource
management including investment and continue efforts to enhance our global SCM capability.
Samsung then regularly prepares the tracked report about their repeat customers using the data and
information gathered through marketing department. Then the report will be reviewed annually. The report
might consist about repeating or supposed to be loyal customers who kept buying Samsung products compare
to the other brands because they thought that Samsung has something more (advantage) and has unique style
(differentiation) than the other brands. Since Samsung is currently in the top level of market share, Samsung
usually only think that Apple (with iPhone) is their main competitor over competing substitutes, so the report
might benchmarking the customers satisfaction between this two companies.
In conclusion, the customer perspective of Samsung’s balanced scorecard may focuses on improving
the customer satisfaction level to get or increase more loyal customers. Meanwhile, the customer perspective’s
objective is an important factor that lead to improvement in the financial perspective objectives for growth in
revenues and profits and determines the success of the company.
Samsung’s internal perspective gives more on all activities and processes in the company in order to
maintain the outcomes for customers.
Here are the objectives of Samsung’s internal perspective:
Quality Control
As we know, Samsung is a worldwide branch. It is one of the largest brands in the world. Customers
are million. From that point of view, Samsung ensures a level of quality of product by examining and
testing the quality of product. It is more to maintain or raise the level of products. Samsung ensures
the products that are provided meet the specific requirements and characteristics, such as being
dependable, safe, and satisfactory.
Speed to Market
Samsung understands the important of market for company. In this objective, Samsung injects new
innovations and more commercialization.
- Innovation
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. One of new innovations that Samsung made is new feature on the product S5 Samsung
Smartphones.
- Commercialization
Business industry is growing rapidly. One of the reasons is because these days, customers rely too
much on commercialization. As a big company, Samsung knows the importance of
commercialization. With technology developing as quickly as it is across the world, Samsung needs
to survive. Knowing that in Asian they are on of the best, now they try to commercialize the brands
over Europe and America. As World Cup 2014 is approaching, Samsung moves quickly to become
one of the official partners of World Cup 2014. It is the agenda of Samsung that has been planned
relying on Balanced Scorecard as well.
Marketing
In few years ago, Samsung was struggling to catch up mostly in smartphone market. Market is
important way to increase the number of customers. By increasing the number of customers, it means
the revenue will be increased as well. Samsung did a market research in order to compete with the
other technology companies. For example, before producing smartphone, Samsung made a research.
They found through market that Asian-language speakers in particular wanted a device that they could
In conclusion, internal perspective of Samsung’s Balanced Scorecard may focuses on all activities and
key processes in order for company to excel at providing value expected by the customers. Samsung believes
that internal processes are lead indicators where management intervention is possible to affect customer and
financial outcomes. Samsung undoubtedly preserve the best outcomes as they are considering the best product
for the customers.