Samsung Company

Timeline and Structure

15/11/2013 Submitted by: Priyanka Pandya (A-30)

INTRODUCTION:
From its inception as a small export business in Taegu, korea, Samsung has grown to become one of the world`s leadingelectronics companies, specialising in digital appliances and media, semiconductor, memory, and system integration. Today Samsung`s innovative and top quality products and processes are world recognised. This timeline captures the major milestones in Samsung`s history, showing how company expanded its product lines and reach, grew its revenue and market share, and has followed its mission of making life better for consumers around the world. Present 2000 1997 1994 1990 1980 1970 1938

1938-1969-Samsung`s Beginning
On March 1, 1938, founding chairman Byung-Chull Lee started a business in Taegu, Korea, with 30,000 won. At the start, his business focused primarily on trade export, selling dried Korean fish, vegetables, and fruit to Manchuria and Beijing. In little more than a decade, Samsung which means "three stars" in Koreanwould have its own flour mills and confectionery machines, its own manufacturing and sales operations, and ultimately evolve to become the modern global corporation that still bears the same name today.

Timeline:
1970 1969 1966 1963 1958 1954 1951 1938

Black-and-white TV (model: P-3202) production started by Samsung-Sanyo Samsung-Sanyo Electronics established (renamed Samsung Electro-Mechanics in March 1975 and merged with Samsung Electronics in March 1977) Joong-Ang Development established (known today as Samsung Everland) DongBang Life Insurance acquired (renamed Samsung Life Insurance in July 1989) Ankuk Fire & Marine Insurance acquired (renamed Samsung Fire & Marine Insurance in October 1993) Cheil Industries Inc. founded Samsung Moolsan established (now Samsung Corporation) Samsung founded in Taegu, Korea

Simple structure:

Simple Structure:
As seen from organizational chart, company possess simple structure initially. Simple structure is not elaborated. It is low in complexity, has little formalization and has authority centralized in single person. The simple structure is depicted best as a flat organization, with an operating core and almost everyone reporting to one person strategic apex where the decision-making power is centralized.Often employees work in all parts of the business and dont just focus on one job creating little if any departmentalization. In this type of design there are usually no standardized policies and procedures.

1970-1979-Diversifying in Industries and Electronics

In the 1970s, Samsung laid the strategic foundations for its future growth by investing in the heavy, chemical, and petrochemical industries.During this time, the company also took steps to enhance its competitive position in the world's textile industry, integrating its manufacturing processes from raw materials to end products. As a result, many new companies were created, including Samsung Heavy Industries Company in 1974 and Samsung Shipbuilding and Samsung Precision Company (now Samsung Techwin) in 1977.Another burst of growth for Samsung came from the burgeoning home electronics business. Samsung Electronics, already a major manufacturer in the Korean market, began to export its products for the first time during this period. Samsung also acquired a 50 percent stake in Korea Semiconductor, further solidifying Samsung Electronics' position as a leader in semiconductor manufacturing.

Timeline:
1979 1978 1977

Began mass production of microwave ovens 4 millionth black-and-white TV (most in the world) produced Samsung Precision Co. established (now Samsung Techwin) Started export of colour televisions Samsung Fine Chemicals established Samsung Construction established 1 millionth black-and-white TV produced Samsung Heavy Industries incorporated Samsung Petrochemical established Began washing machine and refrigerator production Began production of black-and-white televisions for domestic sale

1976 1974 1972

Structure:
Structure will be simple here also. Only difference is complexity will slightly increase, has little formalization and has authority centralized in single person. Span of control will increase as more departments are added to the company.

1980-1989 Entering the Global Marketplace

Samsung's core technology businesses diversified and expanded globally during the late 1970s and early 1980s.In 1978, Samsung Semiconductor and Samsung Electronics became separate entities. Samsung Aerospace Industries (now Samsung Techwin) was launched in February 1987, and Samsung has been developing its aerospace capabilities with unprecedented speed ever since. Samsung also entered the systems development business, establishing Samsung Data Systems in 1985 (now Samsung SDS) as a leader in information technology services, including systems integration, systems management, consulting, and networking services. Samsung's increasing focus on technology led to the creation of the company's two research and development (R&D) institutes that helped expand its reach even further into electronics, semiconductors, high polymer chemicals, genetic engineering, optical telecommunications, aerospace, and new fields of technology innovation from nanotechnology to advanced network architectures. In 1987, Samsung's founding Chairman Byung-Chull Lee passed away after almost 50 years at the helm of the company. His son, Kun-Hee Lee, succeeded him as the new Chairman. During this period, Samsung challenged itself to restructure old businesses and enter new ones with the aim of becoming one of the world's top five electronics companies.

Timeline:
1989 1988

Samsung BP Chemicals founded. Samsung Semiconductor & Telecommunications Co merged with Samsung Electronics. Home appliances, telecommunications, and semiconductors selected as core business lines Samsung Advanced Institute of Technology opened for R&D purposes Developed the world's smallest, lightest 4mm video tape recorder

1987 1986 1984 1983 1982 1981 1980

First VCRs exported to the US Began production of personal computers (PCs) Name changed from Korea Telecommunications Corp. to Samsung Semiconductor & Telecommunications Co. First microwave ovens (model: RE-705D) exported (to Canada) Began producing air conditioners

Professional Bureaucracy:

Professional Bureaucracy:
Above chart illustrates the configuration for professional bureaucracy. The power rests with operating core because they have the critical skills that the organization needs, and they have the autonomy-provided through decentralization-to apply their expertise. The structure is high in complexity and there is lots of rules and regulations; however the formalization is internalized rather than imposed by organization.

1990-1993-Competing in a Changing Tech World

The early 1990s presented tremendous challenges for high-tech businesses.Mergers, coalitions, and buy-outs were common while competition and consolidation flourished. Companies were pressed to rethink their technology and services offerings. Business began to flow across borders between countries and companies. Samsung made the most of these opportunities by refocusing its business strategy to better respond to market demands.

Timeline:
1993 1992

Samsung Advanced Institute of Technology (SAIT) developed first-ever digital video disk recorder (DVD-R)Samsung Electronics acquired U.S. firm HMS Developed mobile phone system Development of 250MB hard disc drive completed Development of world's first 64M DRAM completed Acquired Kukje Securities Co., today known as Samsung Securities Co., Ltd. 10 millionth industrial robot produced Began manufacturing in China World's first 64M DRAM completed Samsung supported installation of Korean Pavilion at the Royal Museum of England Development of mobile phone handset completed

1991

Divisional Structure:

Divisional Structure:
The power in divisional structure lies with middle management. The reason is that the divisional structure is actually a set of autonomous; it allows middle management the division management-a great deal of control. A closer look at divisional structure reveals typically that the divisions represent a set of little companies. The divisions tend t o be organized into functional groups, with high division of labour, high formalization, and centralized authority in division managers.

1994-1996-Becoming a Global Force

In the mid-1990s, Samsung revolutionised its business through a dedication to making world-class products, providing total customer satisfaction, and being a good corporate citizen all under the vision of "quality first."During this period, 17 different products from semiconductors to computer monitors, TFT-LCD screens to colour picture tubesclimbed into the ranks of the top-five products for global market share in their respective areas, and 12 others achieved top market ranking in their areas. Being No.1 also means fulfilling corporate social obligations, whether the cause is social welfare, environmental conservation, cultural events, or sports. To that end, Samsung actively participated in sports marketing, and as a result of its intensive efforts, its then-chairman, Kun-Hee Lee, was selected as a member of the International Olympic Committee (IOC) in July 1996, greatly enhancing the company's image as a key contributor to world athletics .

Timeline:
1996

1995

1994

Development of 1G DRAM completed Developed world's fastest CPU (central processing unit), the Alpha chip Began mass production of 64M DRAMs Samsung Entertainment Group started Samsung Advanced Institute of Technology developed world's first real-time MPEG-3 technology World's first 33" double-screen TV introduced Samsung Heavy Industries developed first Korean-built electric car (SEV-III) Development of world's first 256M DRAM completed 30 millionth microwave oven produced Samsung Aerospace developed the world's first four-power zoom camera

1997-1999-Advancing the Digital Frontier

Despite the 1997 financial crisis that affected nearly all Korean businesses, Samsung was one of few companies that continued growing, thanks to its leadership in digital and network technologies and its steady concentration on electronics, finances and related services.Samsung responded to the crisis by reducing the number of its affiliated companies to 45 (according to the Monopoly Regulation and Fair Trade Act), decreasing personnel by almost 50,000, selling 10 business units and improving the soundness of its financial structure, lowering its 365 percent debt ratio in 1997 to 148 percent by late 1999.

Timeline:
1999

1998

1997

Samsung Aerospace (known today as Samsung Techwin), Daewoo Heavy Industries, and Hyundai Space and Aircraft formed a single business entity, Korea Aerospace Industries First in the world to mass-produce and offer a full line up of digital TVs Developed the world's first 3D TFT-LCD Monitor Developed wireless Internet phone (Smartphone), a small, multi-function phone Achieved top share of worlds TFT-LCD market Mass production of world's first digital TV begun Began mass production of the worlds first digital TV Development of completely flat-screen TV completed Served as Olympic Partner at Nagano Winter Olympics World's first 128M SDRAM introduced Developed world's first 128MB Synchronous DRAM and 128MB Flash memory Became a Worldwide Olympic Partner (TOP) in the wireless communications category Signed contract to become an Olympic Partner in wireless equipment category for Nagano Winter Olympics Developed world's lightest PCS (105g) Developed world's largest TFT-LCD (30) Development of world's first 30" TFT-LCD completed Announced 2nd phase of New Management

Structure:
Structure here is also divisional that is high on complexity, high formalization and decision is centralized with division managers. Here more divisions like entertainment group.

2000-Present Pioneering the Digital Age

The digital age has brought revolutionary change and opportunity to global business, and Samsung has responded with advanced technologies, competitive products, and constant innovation.At Samsung, we see every challenge as an opportunity and believe we are perfectly positioned as one of the world's recognized leaders in the digital technology industry. Our commitment to being the world's best has won us the No.1 global market share for 13 of our products, including semiconductors, TFT-LCDs, monitors and CDMA mobile phones. Looking forward, we're making historic advances in research and development of our overall semiconductor line, including flash memory and non-memory, custom semiconductors, DRAM and SRAM, as well as producing best-inclass LCDs, mobile phones, digital appliances, and more.

Timeline:
2010

2009

2008

2007

2006

Samsung Electronics Held the 4th Samsung Young Design Award in Italy Samsung Electronics Introduced Samsung Galaxy Tab to U.S. Market Samsung Mobile Display developed flexible AMOLED panel with four times clearer WVGA resolution Samsung Electronics honoured with 37 CES 2011 Innovation Awards Opened the visual mobile era with its third generation full touch Haptic AMOLED Released the worlds first infrared video phone Became the first in the industry to acquire TCO 3.0 certification for its notebook computers Announced its Green Management strategy Launched OMNIA phone Completed establishing TV manufactory in Russia Kaluga Became the official sponsor of 2010 Guangzhou Asian Game Developed the world's first 2Gb 50 NANO Developed the world's first 30nm-class 64Gb NAND Flash memory BlackJack bestowed the Best Smart Phone award at CTIA in the U.S. Attained No.1 worldwide market share position for LCD for the sixth year in a row Developed the worlds' first 50nm 1G DRAM Unveiled 10M pixel camera phone Launched "Stealth Vacuum," a vacuum cleaner with the

2005

2004

2003

2002

2001

2000

world's lowest level of noises Launched the worlds' first Blu-Ray Disc Player Developed the largest Flexible LCD Panel Ranked 27th in "the World's Most Admired Company" of Fortune Became the official sponsor of Chelsea, the renowned English soccer club Released the world's first 7 mega pixel camera phone Developed the world's first 60-nano 8GB NAND Flash memory chip Ranked top in mobile phone sales in Russia Released new PDP TV featuring the highest contrast ratio in the world Samsung brand value ranked 25th in the world by Interbrand Ranked 5th on the "Most Admired Electronics Company" list released by the Fortune MagazineReleased the first HD DVD combo Development of the 54"TFT-LCD, the largest digital TV monitor in the world Launches PDP-TV, the slimmest in the worldLaunch of colour mobile phones in which the new concept UFB-LCD is introduced Ranked No. 1 of world's Top 100 IT Companies by BusinessWeek Unveils 16 Chord Progression Melody Phone Begins Mass Production of 512Mb Flash Memory Device Unveils TFT-LCD with Record-breaking Definition Launches PDA phone Samsung Olympic Games Phone selected as the official mobile phone of the Sydney 2000 Olympic Games TV Phone and Watch Phone Make Guinness Book of World Records

Divisional Structure:

Divisional Structure:
Figure shows how divisional structure is utilized at Samsung company. Each of its major chains-groups headed by CEO represents a separate division. As with all division structures, each division is generally autonomous, with the divisional managers responsible for performance and holding complete strategic and operating decisions making authority. This form has central headquarters that provides support services to the divisions. Divisional managers are free to direct their divisions any way they see fit as long as it is within the overall guidelines set down by headquarters. The divisions are organized, with high division of labour, high performance, and centralized authority in the division managers.