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Running head: SAMSUNG

Samsung

Fazila Zavqibekova

Herzing University

BU695 – Graduate Capstone Project

Dr. Gordon
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Abstract

(The Abstract will appear here) …

This paper will…


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TABLE OF CONTENTS

Title Page No.

Abstract 1

Introduction 3

Mission Statement 5

A. 14

B. 14

Marketing 9

A. Error! Bookmark not defined.

Financial Analyses and Accounting 11

Business LAw, Social Responsibility, and Ethics


14

Conclusion and Recommendations 19

References 22

Appendix 19
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Introduction

According to Samsung electronics co ltd files patent application for electronic device and

method for analyzing face information in the electronic device (2017), Samsung Electronics is a

South Korean international company, specializing in Information Technology and Electronic.

The study further suggested that SEc is the flagship branch of Samsung Group which includes

sales networks in 61 countries and has roughly 160,000 employees. In 2009 Samsung Company

turn into the globe biggest IT manufacturers. Its income from the display device and memory

chips is the highest in the world (Kim, 2017). Moreover, SEC from 2006 to 2010 have sold the

most televisions globally, and in 2010 it was estimated that this trend would continue.

Furthermore, with the Introduction of the Samsung galaxy s cell phone, for a significant period,

the organization was in second place regarding global sales figure (Lewin, 2015). Also,

Samsung has set up a noted position in the tablet market by creating the Android-powered

Samsung Galaxy Tab to rival with the APPle"s iP Apple is the leading organization in the

electronic market yet for the extended time Apple and Samsung have faced in every manner that

matters rare in business history (Kim, 2017). For instance, their blue war costing more than a one

billion dollars and distributing more than four continents. Samsung was giving rivalry the

dominant organizations such as apple that is the significant subject to come in a year. In the

1960s and 1970s, Samsung concentrated get together and era capability, and in the 1980s and

1990s, the conferences moved to the accompanying level to expand the devices and moreover its

overall quality (Lewin, 2015).

According to Tod Pike, senior vice president at Samsung Enterprise Business

Division, Samsung company is devoted to assisting enterprise customer with products that offer

business
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across vertical markets like education, banking/finance, and the federal government. He further

suggested that Samsung with providing NB-HN Cloud Stand that enables the business to more

easily maintain, deploy and manage user environments which are less vulnerable to security

risks. (Samsung introduces zero client cloud stand and 21.5" zero client cloud display at

VMworld 2013).

Mission and Vision


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Vision and Mission statements are the most powerful and essential tool for company

prosperity. Organizations with the most excellent brand have a strong and efficient vision and

mission statements (Visinski, 2013). Ashta (2018), supported Visinski's (2013) view and stated

that the vision and mission statements are crucial to organization's growth because they will

reflect the stories and the principles that a company believe in. According to Kopaneva (2013),

company’s Mission and Vision play vital roles in the life of the company and wellbeing of its

staff. Guilty (2015) stated that the company mission set by founding members and gives

company main objectives. Concerning vision, it provides a future picture of the company, and it

must be innovated to face altering needs of the environment.

Asia-pacific patient monitoring market outlook to 2018 - fetal monitors,

multiparameter patient monitoring, neonatal monitors, non-invasive blood pressure monitors and

others (2012), stated that Samsung at the 2018 Consumer Electronic show defined its vision for

Intelligent Internet broadcasting. It was further suggested Samsung show its capacity to advance

Lot adoption through the transparent, constant, and intelligent platform. Hyunsuk Kim CEO of

Samsung claims that lot should be as easy as clicking a switch. This progresses will assists

customer comprehend the benefit of seamless and easy linked life. Also, he mentioned that the

Vision of the company is to "Inspire the world, create the future." With this vision, Samsung

stimulates its group by taking advantage of its main strength, original solution, advanced

product, and technology. Furthermore, the vision of Samsung to reach $400 billion in revenue by

2020 and will be ranked the globe's top five brands.

According to Shin and Kim (2015), Samsung new Mission Statement is “We will devote our

human resources and technology to creating superior products and services, thereby contributing

to a better global society." They further pointed out that Samsung Mission statement stresses
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technology and human resources. That is people who comprehend their social accountabilities,

who use their full capabilities to assist in creating a better future for everyone. Moreover,

Samsung willingly confesses that its final objectives to produce incomes so it can contribute to

social and economic progress. They further reported that Samsung Mission Statement

concentrated in improving its brand and becoming the leader in the future markets. It seems that

Samsung is going to change its standing of being an organization which observing another

producer of new technologies and demand and follows them. This was visible when Samsung

was accused of iPhone rip-offs which breached several patents (Shin and Kim, 2015).

Organization Structure

According to Samsung electronics co., (2016), Samsung is one of the popular

electronic brands in the world. The company works in Europe, Asia, and the Americas. It Main

office is in Gyeonggi-do, South Korea and hired 96,898 people as of December 31, 2015. It’s

further suggested that in 61 countries Samsung Company has plants and sales. Moreover,

Samsung companies have set up leadership comprising high capacity memory, the next-

generation display device, and electromechanical component, Biotech Business Week.

According to Shin and Kim (2015), "Samsung turn into a compound management

scheme by using the western method of administration." Furthermore, he states that it has raised

its productivity by combining its products. Based on research of Shin and others the

management in the Samsung followed a stimulating direction in the organization. It hired more

workers and preserved a good quality by encouraging them with new motivations and new ways

of operating that produced excellent surroundings for them.

According to Shin and Kim (2015), Samsung has different concepts in separating its

departments. They are Qualitative administration, persuading representatives, approaches,


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preemptive needs and critical exercises in the field administration. Additionally, it has

accomplished a creation framework in which an item can be performed in 2 days by generation

choice framework and generation brilliance framework.

Company Analyses

Leadership character at the Samsung Company concentrated on the main choices and

people. The founder Byung- Chul Lee in 1960s ascended the significance of human resources.

He claimed that the main success of the company is its employees and they can define the fate

of the company (Shin and Kim, 2015). It further suggested that Samsung classifies quality

problems into the quality of output, staff and the quality of administration. It is a common belief

that the product quality directly influences the survival of a company in the market. Whereas,

Samsung has controlled according to the thought that improving the quality of employees and

management can improve the product and service quality. Based on Shin and Kim (2015),

research another quality of Samsung is making a significant decision at the correct time as

Samsung built Samsung electronics Express Belt, where units are interconnected with one

another so they can cooperate promptly. The time take to produce goods, create production

system, increase production can be decreased significantly in comparison to rivals due to fast

and regular communication amongst Production Sectors and Research and Development

Sectors.

Regarding motivating people to reach a better quality, the double sourcing of

Samsung is a valid example. Elements manufactured in the company are bought from outside

companies at the same time. This method improves productivity and cuts cost (Shin and Kim,

2015). They further acknowledged that Samsung Electronics did his accent on the business
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management framework of forecasting and preparing for future changes. The corporation has

dynamically attempted to increase business management speed via Global SCM system.

Marketing

According to Kotler and Keller (2012), Marketing Strategy is not easy, and it comprises

decisions of the product line, price setting, location for product sell and how much it should

spend on advertising. Morgan and Vorhies (2012), acknowledged that efficient execution

marketing strategy is the primary determinant of the execution of a company working in


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international markets. It further suggested, effective implementation of marketing strategy

facilitates export demand and financial performance. Moreover, marketing capabilities play a

vital role in accomplishment in export venture operations. Kim (2017), states that advantage of

Samsung regarding its products is that customer trust on it due to the way it had performed in the

past years. Issues with its products have been insignificant. Kim study further stated that the

service that Samsung provides is very fast. As a result of the Marketing Mix of Samsung, one of

the compelling points is the product portfolio.

Price and the Marketing Mix of Samsung

According to Shin and Kim (2015), due to the presence in diverse product categories,

Samsung has different pricing strategies. It required to divide the pricing strategy and match it

with the items that are used for. Kim (2017), the states Samsung smartphones are the market

leader regarding the feature Nad USP they provide. The new Samsung Note 3+ Gear is another

entrant in the market which is attractive for people. Therefore utilizes Skimming Price for this

items to obtain high value in the beginning before rivals overtake. After the item become old or

rival produced the same product, it decreases the cost immediately (Morgan and Vorhies, 2012).

Eric (2014), states that Samsung uses a different kind of promotions. As a company, it believes

in attracting customer through advertising and at the same time via sales promotion it pushes the

item to the consumers. Samsung uses diverse marketing strategies as well as gives numeral

offers and discount to bit its rivals. It further suggests that Samsung's Marketing mix is a good

example for marketers as this company is advancing as it has multiple products at once as all

these items may turn into income drivers for an organization. Moreover, Pull technique

beneficial for a long time.

Advertising
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Fedorenko (2012), acknowledged that Samsung Electronic uses print and mass media

advertising broadly. One of the most important media advertising was promoting Samsung

Galaxy S 3 device on a famous Jimmy Kimmel Live show. Also, cooperation with Fox channel

in the Us run throughout the National football league. Morgan and Vorhies (2012) suggested that

Viral marketing as well broadly utilized by Samsung. For instance, the new 60- second viral

marketing clip named as "Anticipation" is a successful effort to associate Samsung brand with a

sense of progress and a to associate Samsung Galaxy S6 with excitement and a sense of

achievement. In comparing to its rival Samsung utilizes marketing tool more widely (Fedorenko,

2012). It has been evaluated that Samsung Corporation only in 2013 had spent $4.6 billion on

sales promotion. It is essential to elucidate that this money is separate from marketing Budget.

Samsung official website, also comprise sales promotion advertising on cell phones, watches and

bundle offers.

Financial Analyses

Monea (2013), acknowledged Financial Analyses provides data for decision making and

assists external users as well as internal users. Pur & Horák (2015), stated financial analysis is

the engine utilized for assessing the productivity and economic status of organizations. The

financial analysis provides data which is required for decision making. The outcomes of financial
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analysis work are conditional to the quality, correctness, relevance, and efficiency of the

information gathered (Monea, 2013). According to Pur & Horák (2015), financial analysis is one

of the tools utilized by corporate management. By using specific procedures and methods, it

deals with evaluating the economic situation of a company and makes a complex assessment of

the financial situation of a company. It further suggested that financial analyses have to proceed

in the frame of particular principles to find out the correct results.

According to Pur & Horák (2015) Samsung Card is a financial service provider. The

company's product offering comprises credit cards, debit cards, and cards loan. The company

service comprises lease and rental services, cash advance services and fraud protection services.

Samsung Card offers it services to both, individual and corporate customers. The organization

shares its services and products via direct marketing channels, digital platforms classical

distribution channels. The headquarter office of Samsung Card is in Seoul, South Korea and it

has its presence in the US and Japan (Samsung card co., Ltd: Financial services - company

profile, SWOT & financial analysis,2016). Financial Services (2016), acknowledged Samsung

Card Company categorizes its business in three main divisions, Installment, Credit Card and

Leasing. Via the Credit Card Division, the organization provides credit cards to its customers.

Moreover, it offers commercials services that comprise credit card loans. According to Financial

services (2016), the company reported revenue of US$3,005 million during the fiscal year 2015

(2015). The company's revenue grew at a CAGR of 0.91% during 2011–2015, with an annual

decline of 6.24% over 2014. During 2015, the operating margin of the company was 11.63% in

comparison with the operating margin of 24.57% in 2014. In 2015, the organization recorded a

net profit margin of 10.11% compared to a net profit margin of 18.63% in 2014.
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Ratio Analysis of the company Samsung


According to research on Samsung C&T Corporation (2017), the following table illustrates

the ratios for the organization during the last five years. The various ratios seen in the table are

ROE in which there are ratios of Profitability, assets turnover ratio and leverages are comprised,

and there is an average ratio of ROE is given. For the next, there is a Debt/ equity ratio for the

five years followed by the Net debt/equity ratio, and in the last column, there is overall profits

per share are provided. The ratios are counted from the balance sheet and income statements for

the last nine years of the organization. The ratios calculated are illustrated in the following table

for the years 2011-2015.

Table1
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Operations/Information Systems/Law/Ethics/Social Responsibility

Chang (2015), asserted that Samsung Electronics integrity and ethic action are concentrated on

staff training and consideration of the Code of conducts worldwide, contributing a fair market

and legal operations so to evade discrimination and child labor. Based on Samsung Integrity

Highlights reports roughly 8,347 employees received training in 2009, amount of reports on

irregularities was only 417(Samsung C&T Corporation (000830) - alternative energy - deals and

alliances profile,2017). Lewin (2015), noted that Samsung corporation embraces a corporate

program which guarantees the ethical business practices, such as audit committee, audit systems,

Integrity Trainings, Cyber Audit. The most vital one is the Samsung Electronics global Code of

Conduct which described in five simple principles:

● comply with the law and ethical standards

● maintain a clean company culture

● respect consumers, shareholders, and staff

● care for the environment, health, and safety


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● socially responsible corporate citizen

Social Responsibility

According to Visniski (2013), Samsung Enterprise takes very seriously being a part of society as

the main contributor. Citizenship is a Samsung social program, and it divided into many

branches:

1. Citizenship focus: functioning as a responsible citizen include following: Social

welfares; Cultural and arts, and Volunteer services; Samsung started the Social

contribution crops in 1995 where its staff collaborated with their communities.

2. Companions for a better life: connecting people with their pets. the program comprises

the employee dog adaptation center; guide dog school; working dog breeding center; and

Center of for companionship http://mydog.samsung.com/

Risk Management

Fedorenko (2012), reasoned that it is essentially important for Samsung Enterprise to stay on the

top of threats and disaster, externally and internally with the advancement of new technologies

and the wrongdoing of others. He further suggested that risk management has become the main

priority of a company. Kim (2017), insisted that the Samsung corporation avoids both external

and internal financial and nonfinancial risk factors through its business area by having a wise

company system and routinely reviewing it. Lewin (2015), said that Samsung's Business

Continuity Plan is the emergency plan established to decrease possible damage to the

organization throughout the massive disaster. This plan is used to avoid huge catastrophes,

achieving targets for recovery and maintaining the performance of the business in case an

emergency can happen. For instance, a fire, explosions, and power outages are comprised in the
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emergency plan. Moreover, Samsung guarantees that their employees are conscious of these

plans and implements routine training.

Retrieved from: http://team5samsung.blogspot.com/2010/07/ethics-social-responsibility-and-

risk.html

According to the Samsung official website it business spn across several countries all over the

world. Thus the company recognizes and analyze diversity in laws, regulations, and practice in

respective countries while running a business legitimately and ethically (Lewin, 2015).

Moreover, Samsung evolves and apply global personal data security policies to esteem the

privacy of its consumers and staff and to keep safe their personal information (Kim, 2017).

Samsung's aspirations to consistently control compliance and ethical risk are operated by

Samsung Global Code of Conduct and the Business Conduct Guidelines which direct all staff in

taking action (Monea, 2013). He further suggested that Samsung's Corporate Legal Office,

under the management of the CEO, works the Compliance team and Privacy Steering Committee

so to promote compliance control, and privacy Steering Committee helps top management n their

decision making procedure. Under this committee, every Business Division and Regional

Offices, dedicated to Compliance and Privacy Organization, are running respond to working

compliance administration and working compliance agent for local subordinate companies and

subsidiaries (Lewin, 2015).

Figure 1.Fair and Transparent Corporate Culture,2018,https://www.samsung.com/us/about

Samsung/sustainability/ethics/

According to Lewin (2015),Samsung unfolds its Business Principles to its suppliers, clients, and

both, external shareholders and staff via its ethics management websites, and supply a channel to

report any breach of ethical standards for its staff translated Kim (2013), speculated that
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Samsung reveals its Global Code of Conduct to our suppliers, customers, and other external

stakeholders as well as to its employees via its ethics management website, and provide a

channel to report on any violation of ethical standards. Visniski (2013), added that the

‘Employee Business Conduct Guidelines' that serve as the ethical standards for our employees

are translated into 15 languages

Figure 1.Fair and Transparent Corporate Culture,2018,https://www.samsung.com/us/about

Samsung/sustainability/ethics/

According to Lewin (2015),Samsung unfolds its Business Principles to its suppliers, clients, and

both, external shareholders and staff via its ethics management websites, and supply a channel to

report any breach of ethical standards for its staff translated Kim (2013), speculated that

Samsung reveals its Global Code of Conduct to our suppliers, customers, and other external
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stakeholders as well as to its employees via its ethics management website, and provide a

channel to report on any violation of ethical standards. Visniski (2013), added that the

‘Employee Business Conduct Guidelines' that serve as the ethical standards for our employees

are translated into 15 languages comprising Korean. Applicable details are spread and shared

between all its workers all over the world via collective, online, and audio training suggested

annually or more. Also, separate Business Guidelines provided to suppliers, to set up transparent

business practice.

Visniski (2013), reported that Samsung's compliance program aspire to set up a compliance-

driven organization culture so to reduce the business risk that can happen because of price-fixing

or the violation on intellectual property rights and to take stronger accountability in the scope of

human rights, health, safety, and environment. Lewin (2015), wrote that the compliance program

Management System and IT system developed to control compliance- associated risks, provides

its area-specific policies and the specification of regional problem monitoring. Samsung's

Helpdesk is running to help its staff in receiving an individual request to professionals whenever

they have questions related to their work. According to Kim (2013), Samsung officially

announced its comprehensive privacy policy and advanced applicable policies which represent

region-specific conditions and local features. As a result of this efforts, Samsung's employees

are granted with the Global Personal Information Guide.


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Recommendation

The Samsung corporation should guarantee that it has a leadership model which

facilitates light information flows from the individual who decides the executors. When the

organization observes this, it will be easier to make an important decision and implement it

which will meet them at the edge of their competitors (Avoiloet, 204). The organization should

try to develop their management comprising diversity management. Many organizations, which

are which are aiming at winning the global market have the requirement of ensuring that they

combine diversity management (Chang, 2015).

According to Lewin (2015), technology is constantly in a condition of progress, and

besides, it is essential to adopt to proceed to succeed in the consumer electronics industry. This is

especially true in the case of Samsung, which is facing some of the most brutal competition.

Avoiloet (2014), noted that there are several changes which Samsung should take into

consideration making to keep its competitive advantage. First of all, Samsung has already started

implementing on a select of few products; raising the quality of their of their offerings. Samsung

has a rather similar pricing structure than Apple though the vast majority of their products do not

feel almost as "premium" as Apple. A rising emphasis on build quality could go a long way, a

fact that Samsung conscious of, considering its latest flagship phones has a striking resemblance

to the iPhone. Though this is also one of Apple's powerful areas, thus it can be hard to remain

competitive in this department.


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Kim (2013), countered that second choice that Samsung has to set apart itself from

such close competition as Apple and concentrate on reducing costs to compete more directly

with Dell and HP companies. He further suggested that Albeit they may not be able to reduce

the prices as much as of these organizations, they own most of their supply chain. Thus they

should have no issue pricing somewhere in the middle. Undoubtedly, the average customer

would be splendidly willing to spend a lit a bit more on the Samsung phone unlike a comparable

phone made by a lesser-known company. Presently Samsung is performing well in the television

market. Although they charge a premium, TV is one of the divisions where Samsung's quality

has always shined (Morgan, Katsikeas and Vorhies, 2012).

Conclusion

After achieving top position by developing for the last years, Samsung was in a very good

position. It utilized quality leadership in achieving the huge success it has in the years. Apart

this technological development id did in the past 30 decades in the mobile world is unbelievable.

As everyone assumed that Samsung is a company that provides reasonable mobile handsets it

also comes with premium handsets by providing its creativity in the area of innovation.

Moreover, its efforts in the designing new parallel systems and also factories with structured

assembling describes its strategy to maintain premium quality to the products. This how

Samsung from the past step by step increased and topped competitive word. To respond to the

rapidly altering competitive environment, Samsung investigated technological progress and

developed technological Adams in multimedia scopes in collaboration with business units


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comprising digital television, mobile handsets, and display. As only standardization patent

holders can obtain a competitive advantage in this area, Samsung participated in international

expert forums and meetings. Moreover, it updated technology roadmaps regularly and

coordinated improvement schedules with the standardization meeting schedules.


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