Pre-MBA Internship ON Organisational Structure Training At Samsung Electronics India Ltd.

(Department Of Management Studies)

CHRIST UNIVERSITY

Submitted by: Rushank Joseph Re ! No!" #$%$&#'

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#st MBA- I!B

Contents

History...1 Profile of the Produ ts...................! Mission" #ision..........$ Ob%e ti&es.....1' Strategies......1! #alues.......1( Organisation Stru ture ....1$ Poli ies ) Pro edures......'1 S*O+ ,nalysis...!.ey /esult ,reas.!1 Signifi ant 0a tors for Su ess...!' Produ t Promotional Measures...!1 Manager De&elopment Pro ess ) +raining....21 +he ,ppraisal Pro ess.2' System follo3ed for pur hase of /a3 Material..2! 0inan ial Highlights....24 0uture Plans.....4' ,d&antages5 Dra3ba 6s and /e ommendations.4! ,nne7ure.42

AC(NO)*E+,EMENT

On ompleting this pro%e t it is my pleasure to than6 to a 6no3ledge and e7tend my heartfelt gratitude to the follo3ing people 3ho made the ompletion of this pro%e t possible: My tea hers Prof. 8. /ama handran and Prof. #edanta for their &ital en ouragement and support. Mr. De&ender Sharma (8.M9 H./ ) ,dmn.)5 Samsung :le troni s ;ndia <td5 for his in&aluable ontribution and support and all the employees of Samsung 3ho helped me in this pro%e t. ,t last but not the least ; 3ould li6e to than6 =hrist >ni&ersity ;nstitute. Of Management5 ?angalore for gi&ing me the opportunity to learn and e7plore &arious fields.

/ushan6 @oseph

CERTI-ICATE"

+his is to ertify that /ushan6 @oseph student of 1st M?,9 ;.? of =hrist >ni&ersity5 ?angalore ha&ing /eg. Ao. 1-'-$1B has undergone his O.S.+ 3ith Samsung :le troni s ;ndia <td. under my guidan e. ; am satisfied 3ith his efforts.

8. /ama handran

(Mentor)

HISTORY

+he brand S,MS>A8 started on Mar h 15 1$!B 3hen ?yung9=hull <ee5 the founding hairman of Samsung initiated a business in .orea 3ith a apital of only !-5--- 3on. +he primary produ ts of 3hat 3as then Samsung 3ere dried .orean fish5 fruits5 and &egetables traded from ?ei%ing and Man huria. +he ompany prospered and <ee made business starting the first South .oreaCs sugar manufa turing fa ility mo&ed its head offi e to Seoul in 1$2(. ;n 1$425 <ee built the largest 3oolen mill e&er in the ountry and the ompany too6 on an aspe t of a ma%or ompany. Samsung di&ersified into many areas and <ee sought to establish Samsung as Mr. Byung-Chull Lee an industry leader in a 3ide range of enterprises. +he ompany started mo&ing into businesses su h as insuran e5 se urities5 and retail. ;n the late 1$1-s5 Samsung 8roup began the ele troni s industry. ;t formed se&eral ele troni s9related di&isions5 su h as Samsung :le troni s De&i es =o.5 Samsung :le tro9Me hani s =o.5 Samsung =orning =o.5 and Samsung Semi ondu tor ) +ele ommuni ations =o.5 and made the fa ility in Su3on. ;ts first produ t 3as a bla 69and93hite tele&ision set. ;n 1$B-5 the ompany started to build tele ommuni ations de&i es. ;ts early produ ts 3ere s3it hboards. +he fa ility 3ere de&eloped into the telephone and fa7 manufa turing systems and be ame the entre of SamsungDs mobile phone manufa turing. +he ompany grouped them together under Samsung :le troni s =o.5 <td. in the 1$B-s. ;n the late 1$B-s and early 1$$-s5 Samsung :le troni s in&ested hea&ily in resear h and de&elopment5 in&estments that 3ere pi&otal in pushing the ompany to the forefront of the global ele troni s industry. ?y the 1$B-s Samsung 3as manufa turing5 shipping5 and selling a 3ide range of applian es and ele troni produ ts throughout the 3orld. +he 1$$-s sa3 Samsung rise as an international orporation. Aot only did it a Euire a number of businesses abroad5 but also began leading the 3ay in ertain ele troni omponents. Samsung entered ;ndia in De ember 1$$4 as a 41:2$ %oint &enture 3ith /easonable =omputer Solutions P&t <td (/=SP<)5 o3ned by #enugopal Dhoot of the #ideo on group. ;n 1$$B5 /=SP< diluted its sta6e in Samsung to '1F and in Ao&ember '--'5 the 0oreign ;n&estment Proposal ?oard (0;P?) leared SamsungDs proposal to buy /=SP<Ds remaining ('!F) sta6e. *ith Samsung buying the total sta6e of /=SP<5 it be ame a 3holly9o3ned subsidiary of its South .orean parent ompany. ;nitially5 Samsung laun hed is operations in Aorth ;ndia5 and then slo3ly e7panded its operations. ?y @anuary 1$$B5 the ompany had a presen e all o&er the ountry. Samsung announ ed profits of /s.4million on a turno&er of /s. 4.2- billion for the alendar year 1$$B. ;n '---5 Samsung set up an /)D enter for the manufa ture of =+#s at Aoida (>ttar Pradesh) 3ith a total in&estment of >SG4 million. +his enter be ame SamsungDs regional hub atering to the design reEuirements in ;ndia5 Middle :ast and South :ast ,sia. ;n '--'5 Samsung established manufa turing fa ilities for olour tele&isions5 mi ro3a&e o&ens5 3ashing ma hines and air onditioners at Aoida5 >ttar Pradesh. ;t also had a presen e in onsumer ele troni s5 information te hnology produ ts5 mobile phones and home applian es. SamsungDs flagship businesses 3ere onsumer ele troni s and home applian es5 3hi h ontributed more than 1-F of its re&enues. ;n Ao&ember '--(5 Samsung ommen ed the manufa ture of =olour tele&isions and <=D tele&isions at its stateHof9the9art manufa turing fa ility at Sriperumbudur5 +amil Aadu. +he =ompany is also manufa turing fully automati front loading 3ashing ma hines at its Sriperumbudur fa ility. ?esides5
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Samsung :le troni s ;ndia Soft3are Operations (S;SO) is one of the ele&en /esear h ) De&elopment enters of Samsung :le troni s =o. <td.5 housed in the ;+ hub of ;ndia5 ?angalore. *ith its in eption dating ba 6 to 0ebruary 1$$15 as a liaison offi e5 today it has gro3n in magnitude and proportions as a enter of e7 ellen e in resear h and soft3are de&elopment en ompassing a 3ide range of te hnology domains. Samsung ;ndia is the hub for SamsungDs South *est ,sia /egional operations.

PRO-I*E O- THE PRO+UCTS

A! Mo.i/e phones Tou0h Phone St1/e Phone Mu/ti2e3ia Phone Business Phone ,uru series +ua/ si2 Phone C+MA Phone Mo.i/e Phone A00essories

A! T!V! 4 Au3io 4 Vi3eo Te/e5ision

Samsung TVs offer world-class picture quality, design and energy efficiency.

LED TV edefine the way we watch tele!ision. LCD TV "ll the purity of liquid crystal. Plasma TV #n$oy the Superior cinematic e%perience. Ultra SlimFit TV &'( slimmer and )'( lighter. Flat TV Technology and style com*ine for capti!ating entertainment.

 B/u-ra1
Best-in-class picture, sound and wireless streaming, Thrilling +igh ,efinition -mages, +eart pounding audio and a *la.ing fast /i-0i connection for a wireless streaming of data from 1C to the player.

+V+ P/a1er
Samsung ,V, 1layers with B, wise and Best 1laya*ility Samsung offers e%cellence in standard and +, ,V, players ali2e *oasting features li2e 3'4'p upcon!ersion and Touch of Colour design. HD DVD Player Samsung offers e%cellence in +, ,V, player with *oasting features li2e +,M-, 3'4'p upcon!ersion, Touch of Coluor design and 5SB for easy connection and C,- ipping. Standard DVD Player Samsung Standard ,V, players can play any ,V,, regardless of its condition. -ts rolling actuator technology automatically ad$ust the lens angle so that it can read the information stored in the disc with 3''( accuracy.

Ho2e Theater
6i!es ,V,s an upgrade with crystal clear detail and cinema- quality sound.

Mu/ti2e3ia P/a1er
The Samsung series of M17 1layers were *uilt specifically for the /indows-saa!y user, offering drag-and-drop capa*ilities. 0or those who prefer to sync up playlists, an interface within /indows Media 1layer was already *uilt-in, ensuring that nearly e!ery 1C user in the world had the software necessary.

A! Ca2era 4 Ca20or3er

 +i ita/ Ca2era

Samsung Digital SLR Series ange of professional ,igital Single Lens efle% cameras. Samsung High-End Series +igh .oom digital camera range. Samsung NV Series True premium digital camera range that represents your !alues. Samsung i Series /ith slim and stunning designs, a te%t !iewer, mo!ies, music and a tour guide function. Samsung S Series " con!enient point and shoot digital camera range, ease to use and has afforda*le price. Samsung L Series Slim, lightweight and ad!anced features *ring a relia*le photo world.

+i ita/ Ca20or3er

DVD Camcorder Capture the picures straight onto ,V, and play them *ac2 from your ,V, player. Flash emory Camcorder shoots for as long as one li2e with the Samsung flash memory camcorder. -ts ad!anced integrated image chip efficiently reduces power consumption, ena*ling longer *attery life and recording time.

A! Ho2e App/ian0es Re6ri erator

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Samsung R -!"D#SH the 3st four-door refrigerator in the world.

The Samsung Frost-Free re$rigerator models ha!e Coole!er .one and cool *ooster technology that pro!ide 7-, cooling to the food and !egeta*les there*y maintaining the nutrition. They are also the most energy efficient and do not need a sta*ili.er.

Air Con3itioner

S%lit &ir Conditioner designed for larger rooms and halls where a single window "C in ineffecti!e. Samsung pro!ides with a !ariety of air conditioners with stylish, sophisticated design, while paying attention to high performance and health. 'indo( &ir Conditioner -deal for small rooms or in a room where e%tra cooling is required for e.g. 2itchen 1ro!ides cool, clean, healthy and fresh en!ironment with utmost comfort in the hottest of weather. Some special features a!aila*le in different Samsung window and split "Cs include "nti0ungus or Bacterial 0ilters incorporated within the air conditioner that purify the air there*y lea!ing the air fresh for people with respiratory pro*lems

)ashin Ma0hine
Front Loading Samsung front loading washing Machines incorporate a host of futuristic inno!ation li2e Ceramic +eater. -t pro!ides the con!enience of washing clothes with technologically washing machine that understands washing requirement of different clothes. To% Loading 1ower-pac2ed pure strength com*ined with the touch of gentle care.

Semi &utomatic Samsung Semi "utomatic /ashing Machines are specially de!eloped for the distinct -ndian conditions. These technologically ad!anced machines incorporate ,ou*le Storm washing system that remo!es dirt and dust from clothes, there*y lea!ing them clean.

Mi0ro7a5e O5en
S"MS586 manufactures !ariety of microwa!e o!ens with different features and si.e suita*le for e!ery household.
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-mportant attri*ute includes9 1) Con!ection Microwa!e which can *e used to coo2 food which is crispier from inside as well as outside. -t uses a fan and a heating element to create air flow patterns inside the microwa!e o!en ): 6rill Microwa!es which can *e used to coo2 food which is crispier from outside and $uicer from inside. 3) The Samsung Solo which pro!ides uniform heat distri*ution, multiple power le!els and a host of other features, it is ideal for tas2s li2e defrosting, reheating and coo2ing.

S2art O5en
1) 0eatures the optimum mi% of fan o!en coo2ing with microwa!es to deli!er food in record

time. 2) -deal for *a2ing, roasting, reheating and defrosting meals. 7: "nother ad!anced feature is the *uilt in scanner that reads *ar code information from instant and pac2aged meals, ad$usting coo2ing time and temperatures according. &: Microwa!e -;''/, grill -3)<'/, con!ection power-)'<'/

A! PC 4 Periphera/s4 Printer Note.ook Monitor

,es2top Monitor Large 0ormat Monitor 8etwor2 Monitor

Opti0a/ +is0 +ri5e

Samsung offers !arious =ptical Media Solutions9 CD R) Dri*es ,V, /riter ,ri!e is a!aila*le in 6alf-+eight form factors in spped ranging up to 3>? ,V,@ /riting, 3>?,V,- /riting, 4? ,ou*le Layer ,V,@ /riting and &? ,ou*le Layer ,V,- /riting, 4? ,V,@ / /riting and >? ,V,- / /riting. DVD 'riters ,om*o ,ri!e is a!aila*le in +alf-+eight form factors in speed ranging up to <)? /riting, 7)? ewriting, and <)? eading. -t com*ines C,- om, ,V- / and ,V,- om ,ri!e into one mechanism.
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C) +) Dri*es ,V,- =M ,ri!e is a!aia*le in +alf-+eight form factors in spped of 3>?.

*aser Printer 4 Mu/ti6un0tion

Colour Laser Printer ono Laser Printer ,n-.et Fa/ achine

MISSION 4 VISION
" mission statement articulates the philosophy of the company with respect to the *usiness in specific and society in general. =nce the mission statement of the company is finali.ed and adapted, it pro!ides a readymade guideline to employees of the organi.ation a*out its principles, policies and practices. /hile Vision is often referred to as As2yhoo2s for the soulA. -n fact, !ision is that igniting spar2 that can inspire and energise people to do *etter. The focus of !ision is to reach out hungrily for the future and drag it into the present.
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The latest trend in many organisations is to apply the AV-1A approach i.e. AVision -ntegrated 1erformance.A

MISSION" Sa2sun
%$#$ Mana e2ent Po/i0ies
A00e/erate ro7th throu h 3ri5in 0o2petiti5e a35anta e 8 3e5e/opin ne7 2arket! Mar6et leadership 3ith proa ti&e business management poli ies De&elop future gro3th engine Operational e7 ellen e on9 synergy5 speed and effi ien y +e0/aration o6 9ua/it1 Vision- Perfe tion in Euality beyond your imagination. 1ledge =ustomer =entri Professionalism Iuality *or6manship =reating =ustomers for <ife Mana e2ent Phi/osoph1 *e 3ill de&ote our human resour e and te hnology to reate superior produ t ) ser&i es thereby ontributing to better global so iety. Spirit o6 Sa2sun One 3ith =ustomers =hallenge in the *orld =reating the 0uture

VISION" Sa2sun
,ro7in to .e the .est
Samsung ;ndia aims to be the D?est =ompanyD in ;ndia. J?est =ompanyD in terms of the internal 3or6pla e en&ironment5 their manpo3er5 their produ ts as 3ell as their efforts to ma6e the ustomers happy through their produ ts and ser&i es. Samsung aims to gro3 in ;ndia by ontributing to the ;ndian e onomy and ma6ing the li&es of their onsumers simpler5 easier and ri her through our superior Euality produ ts. KOur aim is to gain te hnologi al leadership in the ;ndian mar6etpla e e&en as our goal is to earn the lo&e and respe t of more and more of our ;ndian onsumers.K
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Mr! J S Shin President ) =:O Samsung South *est ,sia Head Iuarters

Vision %$%$
,s stated in its ne3 motto5 Samsung :le troni sD &ision for the ne3 de ade is5 K;nspire the *orld5 =reate the 0uture.K +his ne3 &ision refle ts Samsung :le troni sC ommitment to inspiring its ommunities by le&eraging SamsungDs three 6ey strengths: LAe3 +e hnology5M L;nno&ati&e Produ ts5M and L=reati&e Solutions.M 99 and to promoting ne3 &alue for SamsungDs ore net3or6s 99 ;ndustry5 Partners5 and :mployees. +hrough these efforts5 Samsung hopes to ontribute to a better 3orld and a ri her e7perien e for all.

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,s part of this &ision5 Samsung has mapped out a spe ifi plan of rea hing G2-- billion in re&enue and be oming one of the 3orldCs top fi&e brands by '-'-. +o this end5 Samsung has also established three strategi approa hes in its management: L=reati&ity5M LPartnership5M and L+alent.M

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OBJECTIVES

Mission, purpose, or standard that can *e reasona*ly achie!ed within the e%pected timeframe and with the a!aila*le resources. -n general, an o*$ecti!e is *road in scope, and may comprise of se!eral different goals. =*$ecti!es are the most *asic planning tools underlying all planning and strategic acti!ities. They ser!e as the *asis for policy and performance appraisals, and act as glue that *inds the entire organi.ation together.

OBJECTIVES" Sa2sun
,ro7 0ore .usiness in In3ia! E:pan3 the 0ore .usiness outsi3e In3ia! Maintain 2arket /ea3ership an3 in0rease 2arket shares! *o1a/t1 an3 0o22it2ent to the Custo2ers! Bui/3 a//ian0es 7ith the /ea3in 2anu6a0turers in the in3ustries the1 ser5e!

(eep in5estin in Peop/e; S1ste2s; -a0i/ities an3 +istri.ution S1ste2s 7ith a /on ter2 5ie7!

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STRATE,IES

AStrategy is the direction and sco%e of an organisation o!er the long-term0 which achie!es ad*antage for the organisation through its configuration of resources within a challenging en*ironment, to meet the needs of mar-ets and to fulfil sta-eholder e%pectationsA. ;n other 3ords5 strategy is about: N *here is the business trying to get to in the long9term (3ire0tion< N *hi h mar6ets should a business ompete in and 3hat 6ind of a ti&ities are in&ol&ed in su h mar6etsO (2arketsP s0ope) N Ho3 an the business perform better than the ompetition in those mar6etsO (a35anta e)O N *hat resour es (s6ills5 assets5 finan e5 relationships5 te hni al ompeten e5 fa ilities) are reEuired in order to be able to ompeteO (resour0es)O N *hat e7ternal5 en&ironmental fa tors affe t the businessesD ability to ompeteO (en5iron2ent)O N *hat are the &alues and e7pe tations of those 3ho ha&e po3er in and around the businessO (stakeho/3ers<

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STRATE,IES" Sa2sun
;n the fast9pa ed business of ;nformation +e hnology5 it is imperati&e to be on the mo&e so that te hnology and the mar6et stay 3ithin rea h. ;t is not %ust the te h firms and high9te h produ ts that need to be abreast of de&elopment in the industry. Ho3e&er5 3hen it omes to su h produ ts as mobile phones or <=D tele&ision5 ompanies ha&e no other option but to be on their toes. +he mar6et is flooded 3ith produ ts and brands &ying for mar6et share5 te hnology 6eep mutating onstantly and the business en&ironment is e7tremely &olatile5 3hi h ma6es onsumers sus eptible to hanging tastes and preferen es pretty fast. SamsungCs &ision is to be ome a leader of the digital on&ergen e re&olution. +o a hie&e this goal5 the ompany has transformed its operations5 putting digital te hnology at the ore. +he underlying strategy for this &ision is the ompanyCs mission to be a LDigital JeC =ompany.M +his &ision is di&ided into three elements:

The 6irst .ein =+i ita/> Samsung is ommitted to being a mar6et9dri&en solutions pro&ider and leader in the digital on&ergen e mar6etpla e. The se0on3; =e> ho3 the ompanyCs entire supply hain5 from sales5 mar6eting5 and ommuni ations to resear h5 manufa turing and distribution5 is ondu ted ele troni ally through an elaborate ;nternet9based net3or6. +his Lspeed and simpli ityM model has in reased produ ti&ity and ensured that ser&i es and produ ts are ustomer9oriented. *ast/1; =Co2pan1M refle ts ho3 SamsungCs ore ompeten ies in semi ondu tors5 mobile ommuni ations and onsumer ele troni s te hnologies enable Samsung :le troni s to reate digital solutions for the home5 mobile user5 and offi e that enable seamless ommuni ations5 fa ilitate business transa tions5 pro&ide a ess to the ;nternet5 and offer digital entertainment. Enhan0e .ran3 5a/ue! In0rease top 2arket share pro3u0ts in ea0h 0ountr1 an3 e:pan3 sa/es o6 hi h-en3 pro3u0ts! Supp/1 aspe0t ?pro3u0tion 0osts< @ +e2an3 aspe0t ?2arket an3 earnin opportunities< Enhan0e s1ner 1 e66e0t o6 a66i/iate3 0o2panies! Intro3u0e inno5ati5e pro0esses an3 i2p/e2ent .en0h 2arkin a2on a66i/iate3 0o2panies! Con3u0t Aoint sa/es a0ti5ities! Se0ure hi h-9ua/it1 hu2an resour0es!

+he ?asi strategies follo3ed at Samsung ele troni s are

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Moreo&er5 Samsung :le troni s belie&es that rises are opportunities for inno&ation and that hange is about a tion. ;t ta6es a different 6ind of strategy to na&igate tough e onomi times and be ome one the *orldCs leading ompanies. .no3ing ho3 to lead is one thing. ?eing able to sustain that leadership is an entirely different one. So here are the uniEue 3ays that help Samsung lead its 3ay in brand mar6eting5 manufa turing5 resear h and de&elopment5 and design 3hi h ontributes to its Su ess.

Un3erstan3in to2orro7Bs Markets an3 Consu2ers

*hen it omes to de&eloping premium home applian es for spe ifi regions5 itCs essential to ha&e detailed data and resear h on those mar6ets and onsumers. +he reason SamsungCs front9loading 3ashers 3ith &ibration9redu tion te hnology and 0ren h9door refrigerators top their respe ti&e ategory is a dire t result of their robust mar6et9 and onsumer9fo used mar6et9sensing apabilities. ,nd the insights they gain are helping us lead the 3ay to a more on&enient5 omfortable future.

Co//a.oratin -or ,reater S1ner 1

Sin e '--(5 theyC&e operated an inno&ati&e L ell9basedM manufa turing system that has doubled produ ti&ity for entire Digital Media ) =ommuni ations ?usiness produ t portfolio. +hese remar6able gains ha&e been made possible by lose ollaboration bet3een ea h departmentQfrom manufa turing and de&elopment to mar6eting and pur hasing. ,nd the greater synergy this ollaboration enable is helping Samsung lead the 3ay to a more produ ti&e ) profitable future.

Thinkin outsi3e the Bo:

+he most important prin iple in any /)D pro ess is thin6ing outside the bo7. +hatCs 3hat Samsung did 3hen they set out to de&elop a small but &ery important omponent of smart ard information se urity. ;n addition to signifi antly lo3er fabri ation osts5 the resulting all digital solution has the added benefit of easing migration to different platforms5 te hnologies5 and mar6ets. ,nd the ability to step ba 6 and hallenge the on&entional is helping them lead the 3ay to a more se ure digital future.

Arri5in -irst )ith Spee3 An3 E66i0ien01

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+he thing thatCs helped Samsung rise abo&e their ri&als in the ultra9 ompetiti&e <=D panel industry has been its ability to onsistently de&elop te hnologies and ship produ ts ahead of the rest. +he utting9edge /)D apabilities enabled them to seiRe the first9 mo&er ad&antage in a ne3 produ t ategory at =:S '--$ 3hen they un&eiled a ready9for9 produ tion HD <=D +# 3ith edge9lit <:D ba 6lighting 3hen others 3ere %ust sho3ing mo 6ups. ,nd this ability to onsistently be first to mar6et is helping Samsung lead the 3ay to a greener5 more profitable future.

Conne0tin )ith Consu2er *i6est1/es

,t the Samsung5 &isitors an en%oy an engaging and memorable hands9on e7perien e 3ith o&er !-- of the latest and greatest Samsung produ ts. +he staff of Lbrand ambassadorsM stri&es to pro&ide e7 eptional ser&i e to ea h ustomer 3hile del&ing deeper into their needs to help them ma6e the onne tion 3ith Samsung produ ts that fit their lifestyles. ,nd those lasting impressions are helping Samsung lead the 3ay to a ri her5 more en%oyable future.

Makin S2art Choi0es That ,ro7 Markets

One of SamsungCs strategi goals in '--B 3as to gro3 mobile phone mar6et share in emerging mar6ets. *hile many of their ri&als lost ground in last yearCs mar6et do3nturn5 their smart5 fo used produ t line and resour e allo ation hoi es enabled them to a hie&e dramati gains ; both sales and brand a3areness a ross the ountry. ,nd those are the 6ind of hoi es that are helping Samsung lead the 3ay in more mar6ets e&ery3here.

Creatin Va/ue That CanBt Be Tou0he3

+he inspiration for +# designs omes out of a produ t de&elopment pro ess that in ludes e7tensi&e resear h on the user e7perien e5 meti ulous onsideration of ea h pro ess step5 and ountless de&elopment and mar6eting dis ussions. +heir sophisti ated LliEuid rystalM beRel design 3as the fruit of this e7hausti&e in&estigati&e and ollaborati&e pro ess5 transforming +#s into &eritable ob%e ts of art. ,nd that uniEue design tou h is helping Samsung lead the 3ay in li&ing rooms around the 3orld

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VA*UES
Values define the group *eliefs, and rules that control the management of the company. -t represents the institutional philosophy and the support to the cultural organi.ation. The main o*$ecti!e of corporati!e !alues is to ha!e a framewor2 of reference that inspire and control the life of our company.

VISION
Samsung belie&es that li&ing by strong &alues is the 6ey to good business. ,t Samsung5 a rigorous ode of ondu t and these ore &alues are at the heart of e&ery de ision they ma6e.

Peop/e
Iuite simply5 a ompany is its people. Samsung is dedi ated to gi&ing its people a 3ealth of opportunities to rea h their full potential.

E:0e//en0e
:&erything done at Samsung is dri&en by an unyielding passion for e7 ellen eQand an unfaltering ommitment to de&elop the best produ ts and ser&i es on the mar6et.

Chan e
;n todayCs fast9pa ed global e onomy5 hange is onstant and inno&ation is riti al to a ompanyCs sur&i&al. ,s the ompany has done for (- years5 they set sights on the future5 anti ipating mar6et needs and demands so they an steer the ompany to3ard long9term su ess.

Inte rit1
Operating in an ethi al 3ay is the foundation of business. :&erything done is guided by a moral ompass that ensures fairness5 respe t for all sta6eholders and omplete transparen y.

Co-prosperit1
, business annot be su essful unless it reates prosperity and opportunity for others. Samsung is dedi ated to being a so ially and en&ironmentally responsible orporate itiRen in e&ery ommunity 3here they operate around the globe.

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OR,ANISATION STRUCTURE
"n organi1ational structure is a mainly hierarchical concept of su*ordination of entities that colla*orate and contri*ute to ser!e one common aim. Or aniCations are a &ariant of 0/ustere3 entities. ,n organiRation an be stru tured in many different 3ays and styles5 depending on their ob%e ti&es and ambien e. +he stru ture of an organiRation 3ill determine the modes in 3hi h it operates and performs. OrganiRational stru ture allo3s the e7pressed allo ation of responsibilities for different fun tions and pro esses to different entities su h as the .ran0h5 3epart2ent5 7ork roup and in3i5i3ua/! ;ndi&iduals in an organiRational stru ture are normally hired under ti2e-/i2ite3 7ork 0ontra0ts or 7ork or3ers; or under per2anent e2p/o12ent ontra ts or program orders.

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OR,ANISATION STRUCTURE

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PO*ICIES AN+ PROCE+URES

Policies are %rinci%les, rules, and guidelines formulated or adopted *y an organi1ation to reach its long-term goals. They are designed to in$luence and determine all ma$or decisions and actions, and all acti*ities ta-e place within the *oundaries set *y them. Procedures are the specific methods em%loyed to e%press policies in action in day-to-day o%erations of the organi.ation. Together, policies and procedures ensure that a point of *ie( held *y the go!erning *ody of an organi.ation is translated into steps that result in an outcome com%ati2le with that !iew. They are a !ital part of *usiness management *ecause they pre!ent each employee from ha!ing to rein!ent the wheel and they pro!ide a standard against which indi!idual performance can *e $udged.

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PO*ICIES" Sa2sun D
,/o.a/ Co3e o6 Con3u0t
A. )e respe0t 3i nit1 an3 3i5ersit1 o6 in3i5i3ua/s!

Prin0ip/e#! )e 0o2p/1 7ith /a7s an3 ethi0a/ stan3ar3s!

+he =ompany 3ill respe t the human rights of all employees and 3ill not dis riminate against on the basis of ra e5 olor5 reed5 national origin5 gender5 age5 itiRenship5 religion5 regional ba 6ground5 physi al disability5 marital status5 or any other hara teristi s prote ted by la3. +he =ompany 3ill not employ underage persons5 as ommonly defined by international standards and rele&ant national la3s. +he =ompany 3ill determine onditions of employment and ompensation for personnel in a fair and non9dis riminatory manner5 ta6ing into onsideration rele&ant international standards and national5 lo al or state la3s5 3ith the la3s of host %urisdi tion pre&ailing. +he =ompany 3ill ensure that 3or6ing hours of personnel 3ill be in a ordan e 3ith the spe ifi nature of their duties and omply 3ith national5 state and lo al la3s. +he =ompany 3ill ensure that management 3ill not (i) engage in abusi&e beha&iorP (ii) en ourage or ondone ondu t that &iolates the =ompanyCs =ode of =ondu t5 poli ies or pro eduresP or (iii) impose non93or69related duties upon employees.

A! )e 0o2pete in a00or3an0e 7ith /a7s an3 .usiness ethi0s

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+he =ompany 3ill ompete freely and fairly at all its business sites around the 3orld5 abiding by rele&ant international standards and national5 state and lo al la3s5 3ith the la3s of the host %urisdi tion pre&ailing. +he =ompany 3ill not abuse a dominant mar6et position nor use oer ion to ause in lusion of un3anted items in any sales transa tions (tying). +he =ompany 3ill not enter into pri e fi7ing5 bid ollusion5 mar6et ollusion or redu ed produ tion agreements 3ith ompetitors5 and 3ill not dis uss 3ith ompetitors pri es5 bids5 ustomers5 sales territories and onditions in luding pri e onfirmation. +he =ompany 3ill not permit the a eptan e of money5 goods5 entertainment and"or share offers of sto 6 from ustomers or e7ternal interested parties5 nor allo3 any improper a ti&ities that &iolate la3s and fair trade prin iples. +he =ompany shall not illegally obtain or use ompetitorCs trade se rets or onfidential information. +he =ompany shall not demand5 or use oer ion to obtain any ad&antage detrimental to the interest of ustomer or partner ompanies.

A. )e 2aintain transparen01 o6 a00ounts 7ith a00urate re0or3in o6 transa0tions!

+he =ompany 3ill a urately re ord and manage all transa tions in omplian e 3ith international standards and national a ounting regulations5 and 3ill be sub%e t to a ounting audits by outside parties at regular inter&als. +he =ompany 3ill ma6e e&ery effort to refrain from entering into a business relationship 3ith ustomers of un ertain identity5 and 3ill not parti ipate nor ooperate 3ith illegal5 false5 or irregular transa tions.

A. )e 3o not et in5o/5e3 in po/iti0s an3 2aintain neutra/it1!

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:mployees shall not attribute their personal politi al opinions and ondu t to the =ompany5 or ause su h opinions or ondu t to be attributed to the =ompany. +he =ompanyCs resour es5 in luding finan ial resour es5 manpo3er5 and fa ilities shall not be used to further politi al goals. +he =ompany 3ill refrain from illegal donations and improper dealings 3ith go&ernments5 and 3ill respe t related national5 state and lo al la3s of the host %urisdi tion.

A! )e prote0t in6or2ation on in3i5i3ua/s an3 .usiness partners

+he =ompany and its employees 3ill abide by the national5 state and lo al la3s relating to prote tion of the pri&a y of its employeesC personal and onfidential information. +he =ompany 3ill obtain5 through normal business pro esses5 information relating to indi&iduals5 orporate ustomers5 or business partners and 3ill use su h information for business purpose only. +he =ompany 3ill ensure that the means for obtaining su h information and its use omply 3ith national5 state and lo al la3s. +he =ompany 3ill not dis lose su h information to third parties.

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A!

)e

Prin0ip/e%! )e 2aintain a 0/ean or aniCationa/ 0u/ture

2ake a stri0t 3istin0tion .et7een pu./i0 an3 pri5ate a66airs in our 3uties

+he =ompany 3ill not permit any illi it a ti&ity for the pursuit of personal gain5 su h as irregular treatment of e7penses5 using oneCs position for pri&ate gain5 or the embeRRlement of orporate assets. +he =ompany 3ill not permit any a ti&ity that utiliRes proprietary information of the =ompany for pri&ate gain5 for e7ample insider trading5 irrespe ti&e of 3hether or not this a ti&ity 3as ondu ted by an employee dire tly or indire tly &ia third parties. ,ll business de isions must be made and all business a ti&ities must be ondu ted5 in the best interests of the =ompany. :mployees should a&oid any a tion 3hi h may in&ol&e5 or may appear to in&ol&e5 a onfli t of interest 3ith the =ompany. Ao employees may ha&e any finan ial or other business relationships 3ith suppliers5 ustomers or ompetitors that might impair5 or e&en appear to impair the independen e of any %udgment they may need to ma6e in the best interests of the =ompany.

A! )e prote0t an3 respe0t inte//e0tua/ properties o6 the Co2pan1 an3 others

+he =ompany 3ill ensure that its employees 3ill not dis lose the intelle tual property of indi&iduals5 orporate ustomers and business partners to third parties 3ithout the o3nerCs prior onsent. +he =ompany 3ill ensure that any proprietary information a Euired through its business a ti&ities shall be re orded and safely 6ept and managed as intelle tual property. +he =ompany 3ill respe t the intelle tual property rights of third parties5 su h as patents5 opyrights and trademar6s5 and shall not intentionally infringe or improperly use su h intelle tual property. +he =ompany 3ill ensure that due attention is paid to the se urity of its intelle tual property during the ourse of telephone or other ommuni ation 3ith e7ternal parties5 and in the management of &arious data storage fa ilities.

A! )e 0reate a soun3 or aniCationa/ at2osphere

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+he =ompany has Rero toleran e for any type of beha&ior that may offend or ause unpleasantness to other employees. Su h beha&ior in ludes5 but is not limited to se7ual harassment5 as 3ell as all other forms of harassment5 physi al assault5 or any personal reEuest or ondu t that onfli ts 3ith national5 state or lo al la35 or the =ompanyCs poli ies and pro edures. +he =ompany 3ill endea&or to maintain and de&elop a mutually ooperati&e relationship bet3een management and employees5 based on la35 business ethi s and mutual respe t.

A! )e 2aintain the 3i nit1 o6 Sa2sun E/e0troni0s in our e:terna/ a0ti5ities! During the term of employment at the =ompany5 an employee is not permitted to simultaneously maintain employment 3ith a third party or other3ise be engaged in outside business a ti&ities 3hen su h employment or a ti&ities pre&ent the employee from fully performing 3or65 in luding o&ertime assignments5 for 3hi h he or she is employed5 unless other3ise agreed by prior onsent. +he =ompany reEuires that employees obtain the =ompanyCs prior appro&al before dis losing the =ompanyCs onfidential proprietary information to third parties. +he =ompany 3ill not allo3 its offi ers and employees5 3hile in offi e5 to a t as members of boards of ompanies 3ith onfli ts of interest or parti ipate in ompetiti&e business a ti&ities.

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A!

)e

Prin0ip/eE! )e respe0t 0usto2ers; shareho/3ers an3 e2p/o1ees

put priorit1 on 0usto2er satis6a0tion in 2ana e2ent a0ti5ities

+he =ompany 3ill endea&or to refle t and gi&e priority to the reEuirements and re ommendations of ustomers for the impro&ement of produ t design5 distribution5 and ser&i e. +he =ompany 3ill ma6e e&ery effort to engage 3ith its ustomers in a polite and eEuitable manner based on its belief that LSamsung :le troni s e7ists be ause of its ustomersM. +he =ompany 3ill respe t the ustomerCs right to hoose by refraining from e7aggerated ad&ertisements or oer i&e sales te hniEues5 3hi h ould mislead ustomers 3ith regard to the Euality5 fun tion and spe ifi ations of produ t or ser&i e.

A! )e pursue 2ana e2ent 6o0use3 on shareho/3er 5a/ue +he =ompany 3ill a ti&ely pursue in reases in in&estment return for shareholders by ma7imiRing profits through transparent and sound management. +he =ompany 3ill honor its responsibility to shareholders and interested parties by announ ing ma%or finan ial and orporate information in good faith and in a timely fashion. +he =ompany5 in a ordan e 3ith appli able la35 3ill a ept and sin erely onsider legitimate petitions from e7ternal shareholders.

A! )e en3ea5or to i2pro5e our e2p/o1eesB 9ua/it1 o6 /i6e +he =ompany 3ill offer eEual opportunities to all employees and treat them %ustly based on their ability and a hie&ement. +he =ompany 3ill support ontinuous learning and employee de&elopment. +he =ompany 3ill pro&ide a 3or6ing en&ironment in 3hi h personal initiati&e and reati&ity are en ouraged.

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Prin0ip/e F! )e 0are 6or the en5iron2ent; hea/th; an3 sa6et1

A! )e pursue en5iron2ent 6rien3/1 2ana e2ent

+he =ompany 3ill ma6e e&ery effort to omply 3ith international en&ironmental standards5 national5 state and lo al la3s and regulations relating to the en&ironment and internal en&ironmental regulations 3ithin all of its global business operations. +he =ompany 3ill a ti&ely attempt to minimiRe the generation of harmful materials5 utiliRe resour es effi iently and re y le 3aste produ ts for the benefit of the en&ironment. +he =ompany 3ill do its best to ondu t en&ironmental impro&ement a ti&ities throughout the 3hole pro ess of produ t de&elopment5 produ tion5 distribution5 sales and disposal.

A! )e 5a/ue the hea/th an3 sa6et1 o6 hu2an .ein s

+he =ompany 3ill omply 3ith international standards5 related la3s and regulations5 and internal regulations go&erning the health and safety of its employees by pro&iding safety edu ation and training at regular inter&als. +he =ompany 3ill onsider to the health and safety of ustomers in all business a ti&ities in luding produ t de&elopment5 produ tion5 distribution5 sales and disposal. +he =ompany 3ill learly inform ustomers regarding the safe usage and operation of its produ ts or ser&i es. +he =ompany 3ill endea&or to deal promptly 3ith the dis o&ery of any fault in a produ t5 3hi h ould pose a threat to the safety of ustomers. +he =ompany 3ill ma6e e&ery effort to identify and eliminate any safety haRard found at any of its business sites5 and 3ill maintain a lean and safe en&ironment.

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A!

Prin0ip/e G! )e are a so0ia//1 responsi./e 0orporate 0itiCen

e sin0ere/1 e:e0ute our .asi0 responsi.i/ities as a 0orporate 0itiCen

+he =ompany 3ill endea&or to reate stable employment and to faithfully fulfill its ta7 and other legal obligations. :mployees are en ouraged to ethi ally and ons ientiously arry out their %ob duties and responsibilities. ?y doing so5 employees 3ill assist the =ompany in establishing itself as a responsible and trust3orthy orporate itiRen. :mployees are en ouraged to endea&or to build trust 3ithin the lo al ommunity by fulfilling their duties and responsibilities.

A! )e respe0t the so0ia/ an3 0u/tura/ 5a/ues o6 /o0a/ 0o22unities an3 pra0ti0e 0oe:isten0e

+he =ompany 3ill respe t the la3s5 ulture5 &alues and beliefs of the lo al ommunities in 3hi h it operates5 and shall ontribute to the impro&ement of the Euality of life of lo al residents. +he =ompany5 as a global orporate itiRen5 3ill ontribute to promote and support publi 9 interest a ti&ities su h as a ademi ad&an ement5 art5 ulture and sports. +he =ompany 3ill a ti&ely parti ipate in so ial ser&i es su h as &olunteer a ti&ities and disaster relief.

A! )e .ui/3 up re/ationships o6 0o-e:isten0e an3 0o-prosperit1 7ith .usiness partners

+he =ompany 3ill a 6no3ledge its business partners as strategi partners based on mutual trust5 and 3ill pursue the shared &alue of ustomer satisfa tion. +he =ompany 3ill sele t business partners in a ordan e 3ith business ob%e ti&es by applying fair standards 3ithout dis rimination. +he =ompany 3ill ma6e efforts to support the gro3th of business partnersC ompetiti&eness and de&elopment.

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S)OT ANA*YSIS
S')T analysis is a strategic planning method used to e!aluate the Strengths, 'ea2nesses, )pportunities, and Threats in!ol!ed to a *usiness organisation. -t in!ol!es specifying the o*$ecti!e of the organisation and identifying the internal and e%ternal factors that are fa!ora*le and unfa!ora*le to achie!e that o*$ecti!e.

Strengths9 attri*utes of the person or company that are helpful to achie!ing the o*$ecti!eBs:. 'ea2nesses9 attri*utes of the person or company that are harmful to achie!ing the o*$ecti!eBs:. )pportunities9 e%ternal conditions that are helpful to achie!ing the o*$ecti!eBs:. Threats9 e%ternal conditions which could do damage to the o*$ecti!eBs:.

-dentification of S/=Ts are essential *ecause su*sequent steps in the process of planning for achie!ement of the selected o*$ecti!e may *e deri!ed from the S/=Ts.

S)OT" Sa2sun D

(EY RESU*T AREAS

CDey esult "reasE or D "s refer to general areas of outputs or outcomes for which the departmentFs role is responsi*le.

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-mportance of D "s. G Set goals and o*$ecti!es G 1rioriti.e their acti!ities, and therefore impro!e their timeHwor2 management G Ma2e !alue-added decisions G Clarify roles of department or indi!idual G 0ocus on results rather than acti!ities G "lign their roles to the organi.ationFs *usiness or strategic plan G Communicate their roleFs purposes to others Dey result areas BD "s: capture a*out 4'( of the departmentFs wor2 role. The remainders are usually de!oted to areas of shared responsi*ility.

#!,reat )ork P/a0e #! A35ertise2ent a.Moti&ational +rip %! Sa/es b.Home #isit E! Custo2er Care .8*P MagaRine F! Spare Parts %! Har2onious E2p/o1ee Re/ations a.Manage =ontra t <abour
b.Dis iplin .=ounselling +rouble Ma6ers

#! Au3it #!Manu6a0turin %! P 8 * State2ent %! Hua/it1 Che0k E! Ba/an0e Sheet E! Manu6a0turin F! -inan0ia/ Ana/1sis- F! Pur0hase o6 3e.t- e9uit1 ratio Ra7 Materia/ G ! In5entor1
Contro/

E! E66e0ti5e ,rie5an0es Han3/in a.Handel issues li6e staff5 produ tion5 salary F!S2ooth H!R operations a.Performan e ,ppraisal b.+raining ) Iuality =ir le .*ages ) Salary

SI,NI-ICANT -ACTORS -OR SUCCESS

Samsung ;ndia is re ognised as a leading brand of high te h =onsumer :le troni s and Home ,pplian e Produ ts in the ountry. Samsung fa ed the follo3ing hurdles in ;ndia 3hen it entered the mar6et in 1$$4: <o3 re ognition of Samsung ?rand among ;ndian =onsumers +ough ompetition from lo al and MA= brands #alue and pri e sensiti&e ;ndian onsumers. High import duty

-a0tors 6or Su00ess

36

 Inno5ati5e pro2otion an3 a35ertisin initiati5es

+o establish trust and onfiden e among ;ndian onsumers5 Samsung did a ti&e promotion and ad&ertising by ta6ing the follo3ing initiati&es.

Samsung ;ndia asso iated itself 3ith the ruling passion of the ;ndian mass ons iousness: =ri 6et. Samsung laun hed the +eam Samsung ampaign 3ith the stars of the ;ndian ri 6et team5 3hi h aught the imagination of an entire nation. Samsung sponsors the ;ndian ontingent to the Olympi s and the ,sian 8ames. ;t also ran training programmes for deser&ing ;ndian athletes under the Olympi /atna banner. Samsung has also helped bring to ;ndia5 for the first time5 the Olympi tor h relay. Samsung also brings e&ery year to ;ndia 9 the *orld =yber 8ames5 3hi h is regarded as the Olympi s of the =yber *orld Samsung also laun hed a series of inno&ati&e belo39the9line a ti&ities. ;n mobile phones5 Samsung tied up 3ith noted painter Satish 8u%ral for his paintings to be a&ailable as do3nloads on Samsung mobile phones. Produ t pla ement5 3as done in mo&ies and popular tele&ision serials li6e J@assiC 3here Samsung produ ts 3ere set in lifestyle en&ironments. 0or Mi ro3a&es5 Samsung ran a .it hen9on9*heels programme 3here mobile 6it hens 3ith mi ro3a&e o&ens 3ent to &arious lo alities demonstrating the ad&antages of mi ro3a&e oo6ing.

?randed its produ ts as superior te hnology and en&ironment friendly ones. +he Samsung refrigerators and ,=s in orporate a re&olutionary ne3 te hnology alled Sil&er Aano Health System that ensures freshness and ba teria free en&ironment. ;t laun hed

the L?ioM range of produ ts. ;n mi ro3a&e o&ens5 features li6e the bio9 erami and !D sho3er 3a&es 6eep in mind the health ons ious publi of today.

oating

<aun hed a spe ial mar6eting ampaign for 0lat +#s in luding a fo used ad&ertising ampaign JDuniya Hai 8ol5 +# 0latC and attra ti&e e7 hange offers. ,s a result5 flat9 s reen +#s ma6e up o&er 4- per ent of SamsungCs +# sales ompared to an industry a&erage of 1( per ent.

*aun0hin the .est in 3esi n an3 te0hno/o 1 in In3ia

+o differentiate its produ ts from the ompetition5 Samsung follo3ed a deliberate strategy of bringing in the 3orldCs best design and te hnologies to ;ndia from its parent. ;t laun hed its produ ts in ;ndia around the same time as the global laun h of produ ts.
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Samsung pioneered the introdu tion of se&eral 3orld first features in its mobile phones li6e the first Dual S reen Phone5 the first 14. +0+ " <=D =olour Phone5 the first Phones 3ith Polyphoni /ingtones5 the first phones 3ith rotating lens amera and the first gender on ept phones. ;n ;+ produ ts5 Samsung introdu ed the thinnest and lightest Aote P=s in the 3orld5 the 3orldCs smallest MP! players and ;ndiaCs first 1(K +0+9<=D +#9Monitor that omes 3ith the uniEue J3ise9lin6C Samsung te hnology 3here &arious digital gadgets an be onne ted dire tly to the Display. ;t also laun hed the 3orldCs smallest Digital multi fun tion de&i e that s ans5 prints and opies at the same time. Samsung 3as the first to introdu e the follo3ing in ;ndia at the same time as the global laun h: D<P tele&isions. 0uRRy logi based 3ashing ma hines5 Sil&er Aano /efrigerators5 flat s reen +#s and mi ro3a&e o&ens.

Samsung has 3on o&er 14- a3ards in ;ndia for its te hnology and design based produ ts.

Custo2ise3 pro3u0ts 6or In3ian Consu2ers

Samsung understands the lo al ultural sensibilities to ustomise its produ ts a ording to the ;ndian mar6et.

Samsung phones support fi&e ;ndian languages 9 Hindi5 Marathi5 ?angla5 Pun%abi and +amil. +he phones supports phone menu5 fonts and SMS in these fi&e languages. Samsung is the first ompany in the 3orld to introdu e a ?angla menu.

;t has set up a Lusability labM at the ;ndian ;nstitute of +e hnology in Ae3 Delhi to ustomise Samsung produ ts to meet the spe ifi needs of ;ndian onsumers. +his industry9institute partnership is helping Samsung to study and analyse onsumer response in aspe ts of produ t design5 in luding aestheti s5 ergonomi s and interfa e.

38

+hrough its resear h done on onsumer preferen es in ;ndia5 Samsung has on luded that ;ndian onsumers 3ant more soundoriented produ ts. +hus5 the Samsung tele&isions of ;ndia ha&e a higher sound apa ity than their foreign ounterparts. 0or the semi9automati segment of Samsung 3ashing ma hines5 Samsung has introdu ed for the first time in ;ndia a feature alled Super Dry. ;t is present in three of SamsungCs semi automati models and dries the lothes better than the rest. Samsung 3ashing ma hines ha&e an additional menu that ta6es are of the lo al ;ndian 3ardrobes. +hey also ha&e a Jmemory re9startC that ta6es are of the freEuent po3er failures in ;ndia.

Manu6a0turin P/ant an3 *o0a/isation

Samsung ;ndia set up manufa turing fa ilities for olour +#s in 1$$(P for mi ro3a&e o&ens in 1$$$P for 3ashing ma hines in '--1 and for ,ir9 onditioners in '--' at Aoida in the state of >ttar Pradesh. +he Samsung ;ndia Digital Media fa ility (=+# and =olour Monitors) is the most produ ti&e of all Samsung digital media fa tories globally. ;t re ei&ed ;SO $--'5 3ithin ele&en months of ommen ing produ tion. *ith the latest manufa turing eEuipment li6e ,uto ;nsertion Ma hines5 ,utomati Module =on&eyor5 High temperature +esting5 /eliability test5 pre ision measurements of =olour tele&ision (=+#s)5 the Samsung =+# fa ility is fully geared for high speed5 high &olume and &ery high Euality produ tion. :<=;A,5 the ape7 body in ;ndia of :le troni s manufa turers5 has gi&en a spe ial a3ard to Samsung for Lsignifi ant ontribution to the de&elopment and gro3th of ;ndiaCs :le troni s Hard3are and ;+ industry.M

Resear0h an3 +e5e/op2ent Potentia/

Samsung has set up t3o /)D entres in ;ndia5 at ?angalore and Aoida. ?oth the /)D entres are in&ol&ed in utting edge resear h and de&elopment. +he Aoida entre is in&ol&ed in the business of de&eloping embedded soft3are for Samsung :le troni s =orporation in a &ariety of areas related to Digital +# and other Multimedia te hnologies. +he entre has su essfully ompleted more than a hundred pro%e ts in ollaboration 3ith Samsung HeadEuarters #isual Display and Digital Media di&isions. ;ts engineers ontinuously stri&e to impro&e performan e and introdu e inno&ati&e features to ma6e the end produ ts more effi ient and user friendly. ;t designs and implements some of the riti al soft3are omponents for produ ts su h as ne7t generation =/+ and Pro%e tion +#s5 Plasma and <=D +#s5 D<P +#s5 Digital +# Set +op ?o7es5 D#D Players5 MP! players5 PD,s5 'D"!D 8raphi s :ngines5 #ideo editing
39

and playba 65 Multimedia appli ations et . +he ?angalore operation is in&ol&ed in the business of de&eloping soft3are for Samsung :le troni s =orporation te hnology solutions in a &ariety of different areas. ;t is 6no3n for the e7pertise that it possesses in ertain 6ey te hnology domains. ;ts ontributions ha&e been in &ery 6ey 6no3ledge based areas of ne3 and e&ol&ing te hnologies li6e !85 >M+S5 =DM,'---5 Multimedia5 Home Aet3or6ing5 Digital Media5 System <S;5 Aet3or6 Proto ols5 *ireless terminals to mention some. +he entre boasts of a highly talented and moti&ated 3or6 for e 3ho ha&e been onstantly enri hing their 6no3ledge and s6ills

Corporate So0ia/ Responsi.i/it1

Samsung has also made its mar6 as a ompany 3ith a ons ien e and an organisation 3ith so ial responsibilities. ;n '--25 Samsung 3on the 8olden Pea o 6 Spe ial =ommendation for =orporate So ial /esponsibility. +his a3ard 3as gi&en by the ;nstitute of Dire tors and the *orld =oun il for =orporate 8o&ernan e. Samsung runs the Digital Hope programme5 supporting organisations that promote the use of te hnology to impro&e the li&es of youth5 empo3er them and help bridge the Jdigital di&ideC. Organisations supported by this programme in lude De&elopment ,lternati&es and the Aational =entre for Promotion of :mployment of Disabled People (A=P:DP).

PRO+UCT PROMOTIONA* MEASURES

0rom being a &irtually un6no3n entity in the Sear 1$$45 brand Samsung today en%oys an a3areness le&el of o&er 14F and a positi&e opinion of o&er B-F in the ountry today (sour e: ?,S '--(). +he introdu tion of *orld 0irst5 *o35 leading te hnology produ ts in the ;ndian mar6et oupled 3ith the =ompanyCs efforts to ustomise produ ts for the ;ndian onsumers5 ha&e ontributed to the su ess of the brand in the ;ndian mar6et. +e hnology <eadership5 Produ t design and inno&ati&e mar6eting ha&e all ontributed to ma6ing Samsung a household name in the ;ndian mar6et. +he =ompany has arried out o&er 1(- Dream Home /oad Sho3s 9 a four day e7hibition of its ne3 produ ts and te hnologies 9 in the metros and smaller mar6ets to reate onsumer a3areness.

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+o display Samsung produ ts in a more lifestyle ambien e and to ommuni ate the produ t benefits in a more intera ti&e manner5 Samsung ;ndia has set up a 3idespread net3or6 of Samsung Digital PlaRas all o&er the ountry.

+he Samsung ?rand shop net3or6 omplements the o&er B4-- retail points for Samsung produ ts lo ated a ross the length and breadth of the ountry. Samsung plans to ontinue enhan ing its penetration le&els in the ountry to rea h out to more and more ;ndian onsumers.

41

Inno5ati5e pro2otion an3 a35ertisin initiati5es

+o establish trust and onfiden e among ;ndian onsumers5 Samsung did a ti&e promotion and ad&ertising by ta6ing the follo3ing initiati&es. Samsung laun hed a series of inno&ati&e belo39the9line a ti&ities. ;n mobile phones5 Samsung tied up 3ith noted painter Satish 8u%ral for his paintings to be a&ailable as do3nloads on Samsung mobile phones. Produ t pla ement5 3as done in mo&ies and popular tele&ision serials li6e J@assiC 3here Samsung produ ts 3ere set in lifestyle en&ironments. 0or Mi ro3a&es5 Samsung ran a .it hen9on9*heels programme 3here mobile 6it hens 3ith mi ro3a&e o&ens 3ent to &arious lo alities demonstrating the ad&antages of mi ro3a&e oo6ing. ?randed its produ ts as superior te hnology and en&ironment friendly ones. +he Samsung refrigerators and ,=s in orporate a re&olutionary ne3 te hnology alled Sil&er Aano Health System that ensures freshness and ba teria free en&ironment. ;t laun hed the L?ioM range of produ ts. ;n mi ro3a&e o&ens5 features li6e the bio9 erami oating and !D sho3er 3a&es 6eep in mind the health ons ious publi of today. <aun hed a spe ial mar6eting ampaign for 0lat +#s in luding a fo used ad&ertising ampaign JDuniya Hai 8ol5 +# 0latC and attra ti&e e7 hange offers. ,s a result5 flat9s reen +#s ma6e up o&er 4- per ent of SamsungCs +# sales ompared to an industry a&erage of 1( per ent.

Samsung ;ndia asso iated itself 3ith the ruling passion of the ;ndian mass ons iousness: =ri 6et. Samsung laun hed the +eam Samsung ampaign 3ith the stars of the ;ndian ri 6et team5 3hi h aught the imagination of an entire nation. ;n '--25 Samsung also brought to ;ndia 3hat 3as possibly the biggest ri 6eting spe ta le of this de ade5 the histori ;ndia &s. Pa6istan ri 6et series 9 J+he Samsung =upC.

42

Team Samsung -ndia

Aot onfining itself to ri 6et5 Samsung brings e&ery year to ;ndia 9 the *orld =yber 8ames5 3hi h is regarded as the Olympi s of the =yber 3orld.

Samsung 1resenting /C6 )''4

Samsung sponsors the ;ndian ontingent to the Olympi s and the ,sian 8ames. ;t also ran training programmes for deser&ing ;ndian athletes under the Olympi /atna banner. Samsung has also helped bring to ;ndia5 for the first time5 the Olympi tor h relay. Samsung ;ndiaDs asso iation 3ith the ;ndian Olympi ,sso iation ommen ed 3ith the 1$$B ?ang6o6 ,sian 8ames and e&er sin e the =ompany has supported the ;ndian =ontingent to the S'--- Sydney Olympi s5 S'--' ?usan ,sian 8ames5 the S'--2 ,thens Olympi s and the '--B ?ei%ing Olympi s.
43

Patterned on the Olympi Solidarity 0und5 the Samsung S holarship Programme supported the training e7penses of these players for a period of one year5 bet3een O tober '--( and September '--B. +he ompany has also announ ed its support for the Olympi Mo&ement o&er the ne7t eight years5 till the '-11 Olympi 8ames.

"thletes at the =lympic atna "wards

/e ently5 Samsung ;ndia :le troni s P&t. <td. signed an Mo> 3ith the ;ndian Olympi ,sso iation to be ome the Sponsor of the ;ndian =ontingent to the 11th ,sian 8ames being held at 8uangRhou5 =hina bet3een Ao&ember 1'9'(5 '-1-. ;n addition to supporting the ;ndian =ontingent to the ,sian 8ames5 Samsung 3ill also be pro&iding S holarships to ten top ran6ing players a ross indi&idual sporting dis iplines to support their training e7penses.

;n Mar h '--B5 ;n syn 3ith its thrust on introdu ing inno&ati&e produ ts5 Sa2sun Te/e0o22uni0ations In3ia (S+;)5 appointed a tor Aa2ir (han as its brand ambassador for Sa2sun 2o.i/e phones5 3hi h is refle ted in its ne35 spun6y5 tagline H Jne:t is 7hatIJ being used in all its ommuni ation material for mobiles.

44

""mir Dhan as Samsung Mo*ile Brand "m*assador

;n O tober '--B5 Samsung announ ed the appointment of Olympi 8old Medalist ,bhina& ?indra as ?rand ,mbassador for its =onsumer :le troni s business in ;ndia.

45

"*hina! Bindra as Samsung -ndia BC#: Brand "m*assador

46

+he managerCs are gi&en training on the basis of e&aluation of the gap bet3een their present %ob or the future %ob 3hi h 3ill be appointed to them. +he gap sho3s the differen e bet3een the a tual performan e and the reEuired performan e. +he training an be either a personality de&elopment training or te hni al.

47

+he appraisal pro ess happens at the end of e&ery year 3here the performan e of the employees is e&aluated on the basis of the M?OCs gi&en to them. +he grading is done on the s ale of 194. People 3ho get 1 are re3arded 3here as people 3ith a s ore of 2 are gi&en a 3arning. ?ut people 3ho s ore 4 are as6ed to lea&e the organiRation.

48

49

Pur0hasin Ethi0s Charter

L*e5 the pur hasers of the Samsung :le troni s5 realiRe and a ept our riti al role in enhan ing &alues for our ustomers. ;n this important endea&or5 3e 3ill ondu t all dealings 3ith our suppliers 3ith honesty and integrity for mutual gro3th and prosperity. *e 3ill also understand and omply 3ith la35 regulation5 and odes go&erning the ondu t of our business.M

Pur0hasin E2./e2
Samsung :le troni s and Suppliers 3ill ooperate to ma6e the best performan e to3ard the 8lobal +op +ier on the basis of K*in9*inK ideology of o9e7istense and o9prosperity bet3een Samsung :le troni s and our &alued Suppliers.

50

-inan0ia/ Hi h/i hts

Samsung :le troni s a hie&ed an histori 5 re ord brea6ing sales re ord in '--B of ./* 1'1.! trillion on a onsolidated basis5 up '!.1F from the pre&ious year. Despite the ontinued drop in memory hip pri es and sagging semi ondu tor sales5 the sales gro3th an be attributed to the e7panded mar6et dominan e of ma%or pro%e ts su h as +#s5 mobile phones and <=Ds. Operating profits and net in ome re orded ./* 1 trillion and ./* 4.4 trillion5 respe ti&ely5 3ith :?;+D, oming in at ./* 11.1 trillion.

Sa/es; Operatin Pro6it; Net In0o2e; an3 EBIT+A

(>nit: ./* trillion)

'--1

'--(

'--B

Sales Operating Profit Aet ;n ome :?;+D,

B4.B $.1 (.$ 11.-

$B.4 $.(.2 1(.4

1'1.! 1.4.4 11.1

N Aet in ome figures represent the net in ome of the holding ompany.

Performan e by ?usiness
Samsung :le troni s operates Digital Media5 +ele ommuni ations5 Semi ondu tor and <=D businesses. +he reorganiRation in May '--B integrated our related Home ,pplian e business se tors into a Digital Media business di&ision and the P= and MP! businesses 3ere merged into an +ele ommuni ations business di&ision. +he @anuary '--$ reorganiRation5 again5 integrated the Digital Media and +ele ommuni ations business di&isions into a DM= business unit and the Semi ondu tor and <=D business di&isions into a DS business unit.

51

Sa/es .1 Business +i5ision

(>nit: ./* trillion)

(>nit: ./* trillion)

+he Digital Media business di&ision realiRed a ./* 11.( trillion sales gro3th o&er the pre&ious year than6s to the in reased +# sales in the :uropean and Aorth ,meri an mar6ets. +he +ele ommuni ations business di&ision also generated a ./* (.$ trillion sales gro3th year o&er year5 boosted by the booming premium produ t sales and lo39pri ed produ t mi7 strategies. +he Semi ondu tor business di&ision sales 3ere relati&ely stable in the system <S; and storage se tors. Ho3e&er5 the o&ersupply in the memory mar6ets and e onomi re ession left the o&erall sales un hanged from '--B. +he <=D business di&ision also a hie&ed a ./* 2.4 trillion gro3th in sales from the pre&ious year than6s to the e7panded sales of high &alue9added large9siRed panels for +#s.

Conso/i3ate3 Ba/an0e Sheet

De ember !15 '--B5 '--( and '--1
(;n millions of .orean 3on)

%$$'

%$$K

%$$L

Assets =urrent ,ssets =ash and =ash :Eui&alents Short9+erm 0inan ial ;nstruments B5B1251!B !54$15!!( 45B!15$B$ 45-115B$B 25'''5-'( !54-25112

52

Short9term a&ailable9for9sale se urities +rade a ounts and notes re ei&able5 net of allo3an e for doubtful a ounts Other a ounts and notes re ei&able5 net of allo3an e for doubtful a ounts ;n&entories Short9term finan ing re ei&ables5 net Short9term deferred in ome ta7 assets Prepaid e7penses and other urrent assets Tota/ Current Assets

$B'5-1(

$''5B!!

'5-4B5(B1

1'5-2!5$($

1151'451!'

$5-B$524'

1544B5'($

$B$512!

$('52'1

$52$'51-( 15'11541' '51!45-1B 25-B25-1$ F';&L';GGL

(5$1B5B-! 454(45--1 154!(5$21 '5BBB5'12 F#;&$#;$#F

15(4!5224 254B15$(' 1521$5$(! '5!!15'14 EF;&'';&$G

Property5 plant and eEuipment5 in luding re&aluations5 net of a umulated depre iation <ong9term a&ailable9for9sale se urities <ong9term held9to9maturity se urities :Euity9method in&estments Deferred in ome ta7 assets ;ntangible assets5 net of a umulated amortiRation <ong9term finan ing re ei&ables5 net of allo3an e for doubtful a ounts <ong9term deposits and other assets Tota/ assets

2'52$15!11

!(5!B-5122

!!5(B25114

'511B5'1' !!252125!415B1' !($5-B( (B(5'2$

!5(1'5!'' 12(5'B( !5(B'521! '115'B(-251'(

'544(5--2 1$(51B!5!$!511( !4!5-'( 14B5!B4

!5(-25($'

!5($$5$44

!5B-154!4

151445-(1 #$G;E$$;LG$

151B-54$2 &E;EKG;#EL

151'152!B '#;ELL;%$L

53

(;n millions of .orean 3on)

%$$'

%$$K

%$$L

*ia.i/ities an3 E9uit1 =urrent <iabilities +rade a ounts and notes payable Short9term borro3ings =urrent maturities of long9term debts Other a ounts and notes payable , rued e7penses ;n ome ta7es payable Other urrent liabilities Tota/ 0urrent /ia.i/ities 454B(51!( $5-'151!'5'1!5!B45112541( (5$-(51$( 1(4544! 151!'51-1 E%;%$K;$K$ 15-!(5B12 B524!5-$$ 15$B(512B !5B115111 15(((5$!1 15!2!5$21 15!!25!'( %&;K&G;&KL 254(B5$14 (5!1-5((B '5((15B11 !51-$521$ 45-115(44 15'1!5-BB $'(5-4%G;G%%;'K#

<ong9term debts 0oreign urren y notes and bonds <ong9term a rued e7penses <ong9term ad&an es re ei&ed , rued se&eran e benefits Deferred in ome ta7 liabilities Other long9term liabilities Tota/ /ia.i/ities

45((!5$4( !$-51$! 1((5((2 9 B4-5'!! 152B15'B( 152$-51B' F%;EKL;L&L

!5B2!5('B ''B514B 2!5--4 9 (!$5$!1 152145444 15'B15!(EK;F$E;%%'

25'1-511$ 1!!5($( '(15-1$ !2152!B ('15'-4 151B'5'1' 15-!B5-(B EE;F%L;EE&

=ommitments and ontingen ies :Euity =apital sto 6

54

Preferred sto 6 =ommon sto 6 =apital surplus =apital ad%ustments +reasury sto 6 Others , umulated other omprehensi&e in ome /etained earnings Tota/ Shareho/3ersB e9uit1 Minority interests Tota/ e9uit1 Tota/ /ia.i/ities 8 e9uit1

11$521( ((B5-2( 154BB5B11

11$521( ((B5-2( 154(25$$4

11$521( ((B5-2( 15!1251-2

(B5$1-51!4)

($514(52$')

((54'-5-'!)

!5B-B5-(1 44521$54(1 G';##K;$$& 25B-15$24 L%;&%E;&GF #$G;E$$;LG$

15B(45!B4 415-1451(2 G#;LLG;L'K 25!-15''1 GG;&K#;&$' &E;EKG;#EL

9 22521!51B! FG;%LF;F## '51(45241 FK;&E&;'LK '#;ELL;%$L

Sears ended De ember !15 '--B5 '--( and '--1

(;n millions of .orean 3on)

Conso/i3ate3 State2ent o6 In0o2e

%$$' %$$K

%$$L

Sa/es =ost of Sales ,ross Pro6it Selling5 general and administrati&e e7penses Operatin pro6it

#%#;%&F;E#& B$5(1'5!44 E#;GE#;&LF '454--51-1 L;$E#;'LE

&';G$K;'#K (-5BB-5$1' %K;L%L;&$G 1B514!511$ ';&KE;%'L

'G;F%G;L%L 4$514'5'1' %G;KKE;ELF 115(14544! &;$$K;'##

Non-operatin in0o2e ;nterest and di&idend in ome 0oreign e7 hange gains 1!$52!$ (5'!B51!( 2B!51-2 15B!151'$ !$15(2' 15!!!5''-

55

8ain on foreign urren y translation 8ain on &aluation of eEuity method in&estments /e&ersal of impairment losses on in&estments Others

222511! '1251B1 9 152425!-( #$;'%F;%K$

1'(5B$1 14'54-9 15-2$5!14 F;#FF;&E&

'1251B1 4415-4( $'5'11 B''5!-E;F#$;%#L

Non-operatin e:penses ;nterest e7pense 0oreign e7 hange losses <oss on foreign urren y translation <oss on &aluation of eEuity method in&estments ;mpairment losses on in&estments Others 1(-5'(1 (54$(512$!!5$2'-$5!4( 9 B1(514#$;%K';EG' 154((5((4 1B(5411 G;'&$;%#F 4$-5414 15B2$5--' 1115'!1 '(25B(2 9 1425(!E;F'G;EG% $51!'5B(! 15(-$5B$' K;&%%;&'# '$2522$ 15'4(5'(1-$52$2 !15!$1 1252$$ BB!5'(! %;G&$;E'# $5B'(5121 151!!5$B( ';#&E;LG&

Aet in ome before in ome ta7 ;n ome ta7 Net In0o2e

56

-uture P/ans
T Samsung plans to reate an aspirational digital lifestyle for the a&erage ;ndian onsumer 3ith the introdu tion of inno&ati&e digital produ ts5 that represent the absolute high end of te hnology and design. T +he ompany also plans to re&olutionise retail in the ountry by laun hing a massi&e retail roll9out of its e7 lusi&e outlets 9 Digitall *orld5 Digitall Homes and Digitall PlaRa. +he ompany belie&es that 3ith an in reasing footprint of Samsung Digitall *orlds and Samsung Digitall Homes5 ;ndian onsumers today an e7perien e the finest in te hnology in a 3orld lass en&ironment. T +he ompany also plans to set up 1-- te hnology retail ounters to bring te hnology loser to the onsumers5 allo3ing them to tou h5 feel and e7perien e the same. T Samsung is also in&esting in setting up the Samsung Mar6eting , ademy to train sales personnel to engage in lifestyle selling. +he emphasis is learly on pro&iding ustomers a ri her and more informed buying e7perien e.

57

A35anta es; +ra7.a0ks an3 Re0o22en3ations"

A35anta es"
+all organisation stru ture helps in easy flo3 of ommand. ,uthority and responsibility an be delegated easily as it is a simple stru ture. =han es of romours is less as the organisational stru ture is staight.

+isa35anta es"
0lo3 of ommand is time onsuming 3hi h an lead to delay in de ision ma6ing. +he ompany does not gi&e mu h of importan e to the rural mar6et.

Re0o22en3ations"
+he ompany should redu e the hierar hial le&el so that the flo3 of ommand is faster. ,uthority to ta6e di isions should be also gi&en at lo3er le&el also so that Eui 6 de ision ma6ing an be done for day to day operations. +he ompany should try and on entrate on the rural mar6et as 3ell.

58

,nne7ure
1. =ertifi ate from the =ompany. '. /e&ie3s of the M?,Cs 3or6ing !. 0ormat of Manpo3er report and M?OCs

59