INDUSTRIAL ECONOMICS AND

MANAGEMENT LAB

UTTAM DEVI MOHAN LAL

COLLEGE OF ENGINEERING

Submitted to: SubmittedBy:

Ms Anuradha Sen Sushant Sharma
Lecturer IEM EC-8 TH SEM
07EUDEC050
 INDEX
1. Project 1:
Study of the profile of a company of your choice and
relevant to your field of study.

2. Project 2:
Development of banking in India from the post-
independence period till the present time.
Project 1:
Study of the profile of a company of your choice

and relevant to your field of study.

Samsung company profile

The Samsung Philosophy

At Samsung, we follow a simple business philosophy: to devote our

talent and technology to creating superior products and services
that contribute to a better global society.

Every day, our people bring this philosophy to life. Our leaders
search for the brightest talent from around the world, and give them
the resources they need to be the best at what they do. The result is
that all of our products—from memory chips that help businesses
store vital knowledge to mobile phones that connect people across
continents— have the power to enrich lives. And that’s what making
a better global society is all about
.
 AFILIATED COMPANIES
Samsung is comprised of companies that are setting new standards in a
wide range of businesses, from consumer electronics to petrochemicals,
from advertising to life insurance. They share a commitment to creating
innovative, high quality products that are relied on every day by millions
of people and businesses around the world.

 Samsung Electro-Mechanics
 Samsung SDI
 Samsung Corning Precision Materials
 Samsung SDS
 Samsung Techwin
 Samsung Mobile Display
 Samsung Digital Imaging

 Samsung Heavy Industries

 Samsung Total Petrochemicals

 Samsung Petrochemicals
 Samsung Fine Chemicals
 Samsung BP Chemicals

 Samsung Life Insurance

 Samsung Fire & Marine Insurance
 Samsung Card
 Samsung Securities
 Samsung Investment Trust Management
 Samsung Venture Investment

 Samsung C&T Corporation

 Samsung Engineering
 Cheil Industries
 Samsung Everland
 The Shilla Hotels & Resorts
 Cheil Worldwide
 S1 Corporation
 Samsung Medical Centre
 Samsung Economics Research Institute

 Samsung Human Resources Development Centre

 Samsung Lions
 The Ho-Am Foundation
 Samsung Foundation of Culture
 Samsung Welfare Foundation
 Samsung Life Public Welfare Foundation

Samsung Business
Through innovative technology, distinctive designs, and a dual focus on
convenience and value, Samsung has remained at the forefront of the
digital revolution we helped launch. We lead the global digital
marketplace by continually launching new products that not only meet-
but also anticipate- customers' demands.
Our mobile phones, admired by customers around the world, enhance
mobile lifestyles while meeting the diverse needs of the mobile
marketplace. We've led the standardization of next- generation mobile
phone technologies such as Mobile WiMAX and High-Speed Downlink
Packet Access (HSDPA) to solidify our alliances with phone carriers
around the world.

The business also comprises personal computers and MP3 players,

creating synergies across platforms. We merge the latest mobile
technology with core computing technology for the PC business, while
mobile technologies - also combine with our world-leading power
efficiency and design to enhance MP3 player capabilities. Our goal is to
use our leadership in technological convergence to guide the industry as
it takes mobility to the next level.

The TV business is a key driver in in the Samsung Set Business

portfolio, along with the Mobile phone business. The TV business
enjoys the top position in the current market. LED TVs, which have
shown explosive growth in the latest market is a flagship product within
the TV business. LCD TV and Monitors have also maintained top
positions in their respective categories. We seek to sustain our leadership
through constant innovation and development in new technology such as
3D.

A premium brand image has powered Samsung's growth in the

telecommunications category. We lead the global telecommunication
industry with the widest range of mobile phones on the market today -
including 3G and multimedia phones - in addition to telecommunication
systems.

Our printer and camera businesses are also receiving positive responses
in the market and we continue to innovate in technology to increase our
competitiveness in these segments. Finally, Samsung’s Set Business also
encompasses world-leading, premium home appliances that are stylishly
designed, equipped with convenient digital features, and
environmentally friendly. Our lineup includes refrigerators, air
conditioners, washers, ovens, vacuum cleaners and other appliances that
are indispensable in today's households

Component Business

Samsung's Component Business leads the world's memory and LCD

markets in product and technology development. Our component
business is divided into semiconductors and LCD. The Semiconductor
business consists of the Memory Division which enjoys a global number
1 position, the System LSI Division, which has experienced huge
growth in the market and the Storage Systems Division. In a fast-paced
electronic components industry, marked by intense competition and
market volatility, clearly differentiated products from each of these
divisions have helped spur continued growth.

Samsung's Memory Division designs and manufactures integrated

circuits for storing digital information. It is the market leader in dynamic
random access memory (DRAM), static random access memory
(SRAM), NAND flash memory and Solid State Drives (SSDs). In
addition, the Division has been setting an aggressive pace for developing
new memory devices and multichip packages, as well as pioneering
fusion memories and commercialising nanotechnology.

The System LSI Division designs and manufactures logic and

analog integrated circuit devices. It is comprised of 3 major areas of
business concentration - mobile solutions, home & media solutions, and
ASIC & foundry services. The Division focuses its efforts in five
strategic products areas - display driver IC (DDI), CMOS image sensor
(CIS), mobile application processor (AP), smart card IC and media
player SoC. System LSI holds the number one market share in DDI,
Navigational AP and MP3 SoC.

The Storage Systems Division is a leading producer of high-

capacity, high-performance hard disk drives for notebook and desktop
PCs, as well as digital camcorders, MP4 players and a wide range of
other consumer electronics and mobile devices. Just recently, it
introduced a new line-up of ultra-compact, high-capacity external hard
drives. It has made significant advances in hard disk drive technologies
leading to lighter, quieter and more energy-efficient drives.

Samsung's LCD business produces panels for TVs, digital

information displays (DIDs), notebook PCs and desktop monitors. It is
the market leader in developing next-generation, premium products such
as ultra-slim, edge-lit LED-backlit LCD panels, and is at the forefront of
creating new markets with advancements in LED-backlit panel design
and 240Hz LCD technology. The Division also is leading the LCD
industry in its transition to the 16:9 widescreen aspect ratio, as well as in
the introduction of high-value-added products such as 20-inch and larger
slim-panel monitors and super-bright DID panels.

Purchasing Ethics Charter

We, the purchasers of the Samsung Electronics, realize and accept our
critical role in enhancing values for our customers.

In this important endeavour, we will conduct all dealings with our

suppliers with honesty and integrity for mutual growth and prosperity.
We will also understand and comply with law, regulation, and codes
governing the conduct of our business.
 Purchasing Emblem

Samsung Electronics and Suppliers will cooperate to make the best

performancetoward the Global Top Tier on the basis of "Win-
Win"ideology of co-existence andco-prosperity between Samsung
Electronics and our valued Suppliers

FINANCIAL NEWS
STOCK INFORMATION
887,000   ▼ 14,000

 open 900,000
 high 900,000
 low 884,000
 volume 329,814

2,120.90 KOSPI -1.02(-0.05%)

530.46 KOSDAQ +1.76(0.33%)

Volume / 329,814 /
Change ▲ 106,117
Trade in
293,471
price(M)
Ask /Size Volume 888,000 / 2,109
Bid /Size Volume 887,000 / 1,879
Daily Upper
1,036,000 /
Limit/
766,000
Lower Limit
 Ti Chang Trade. Volu
Price
me e Vol. me
14: 887,0 ▼ 14,0 329,8
5
06 00 00 27
14: 887,0 ▼ 14,0 329,8
1
06 00 00 22
14: 887,0 ▼ 14,0 329,8
1
06 00 00 21
14: 888,0 ▼ 13,0 329,8
5
06 00 00 20
14: 887,0 ▼ 14,0 329,8
1
06 00 00 15
14: 887,0 ▼ 14,0 329,8
1
06 00 00 14
14: 887,0 ▼ 14,0 329,8
2
06 00 00 13
14: 887,0 ▼ 14,0 329,8
1
06 00 00 11
14: 887,0 ▼ 14,0 329,8
1
06 00 00 10
14: 887,0 ▼ 14,0 329,8
1
06 00 00 09
14: 887,0 ▼ 14,0 329,8
5
06 00 00 08
14: 887,0 ▼ 14,0 329,8
1
06 00 00 03
Ask Size A&B () Bid Size
1,288 892,000
1,722 891,000
311 890,000
1,699 889,000
2,109 888,000
887,000 1,879
886,000 2,397
885,000 3,638
884,000 4,779
883,000 3,967
Total Ask B-A Size Total Bid
12,355 -28,845 41,200
High in 52wks 1,014,000
Change(%) -12.52%
Date 2011-01-28
Low in
735,000
52wks
Change(%) 20.68%
2010-10-
Date
20
Year High 1,014,000
Change(%) -12.52%
2011-01-
Date
28
853,00
Year Low
0
Change(%) 3.99%
2011-
Date
03-14
Setting
12
Month
Capital(100M
7,780
)
Listed 147,29
Stock(K) 9
Market
130,654,512
Cap(M)
Foreigners 50.85
 (%)
PER/EPS 13.54/65,499

Samsung Profile 2010

Wherever you are... in the hustle of the streets or the comfort of
the home...Samsung is part of the fabric of your life. As a global
leader we are at the forefront of change, anticipating today what
our customers around the world will want tomorrow.
 Vision 2020
As stated in its new motto, Samsung Electronics' vision for the
new decade is, "Inspire the World, Create the Future."

This new vision reflects Samsung Electronics’ commitment to

inspiring its communities by leveraging Samsung's three key
strengths: "New Technology," "Innovative Products," and
"Creative Solutions." -- and to promoting new value for Samsung's
core networks -- Industry, Partners, and Employees. Through
these efforts, Samsung hopes to contribute to a better world and
a richer experience for all.

As part of this vision, Samsung has mapped out a specific plan of

reaching $400 billion in revenue and becoming one of the world’s
top five brands by 2020. To this end, Samsung has also
established three strategic approaches in its management:
"Creativity," "Partnership," and "Talent."

Samsung is excited about the future. As we build on our previous

accomplishments, we look forward to exploring new territories,
including health, medicine, and biotechnology. Samsung is
committed to being a creative leader in new markets and
becoming a truly No. 1 business going forward.

ACHIEVEMENTS
1. Won/U.S. Dollar yearly average exchange rate 1,276.40/1$,
Won/Euro : 1,606.77/1
2. Won/U.S. Dollar as of the end of December 31, 2009:
1,167.60/1$, Won/Euro : 1,776.22/1
 PROJECT 2:
Development of banking in India from the
post-independence period till the present time.

At the time of independence, Indian Banking system inherited a fairly

diversified set up.    It was felt that there is a a need for close integration
between the policies of the government and banking sector.  Thus, 
Reserve Bank of India was made a state owned institution w.e.f. 1st
January, 1949.   In the same year, Banking Regulation Act, 1949 was
also passed so as to provide the country with the much needed
framework for regulation and supervision of the commercial banking
activity.  

 The post independence can be broadly categoried into two phases,

namely (a) Pre-Reforms Phase and (b) Post Reform Era.

Pre-Reform Era :
 The period between 1947 and 1991 is considered as the pre-reform era
for Indian banking.  This period witnessed many upheavals and is
sometimes divided into different phases like social banking phase,
natiojnalisation phase etc.   However, one thing common to this period
was that it saw a gradual increase in State control over the financial
systems.    Under State control there was a tremendous increase in the
spread of financial services across the economy.

 The period till 1969 can be termed as a transitory period when we

moved towards social banking and nationalization.   During the period
till 1969, the Indian banking system made considerable progress both
functionally and in terms of geographical coverage, but there remained a
large number of un-banked areas especially,  rural and semi-urban
areas.     A large portion of the credit facilities were still the prerogative
of  large industries and big and established business houses.   The
sectors now well known as Priority Sector,  such as agriculture, small-
scale industries and exports remained the last priority of the banking
sector.    During 1962, Deposit Insurance corporation was established
with aim to provide insurance cover to depositors, thereby protecting
deposits of common man.   In February, 1966, the government lauched
Scheme of Social Control, with the main aim to assess the demand for
bank credit from various sectors of the economy and deploy the loans
and advances in such way as to ensure optimum and efficient utilization
of resources.   However, this experiment was not very successful.  

 On 19th July, 1969, the Government of India 14 largest commercial

banks were nationalised by promulgating Banking Companies
(Acquisition and Transfer of Undertaking) Ordiance 1969.    This was
followed by the lunching of Lead Bank Scheme in December, 1969.    
The nationalization of the banks is considered as a historic step taken to
ensure adequate credit flow into genuine productive areas in conformity
with Plan priorities.    The major aims of the nationalisation were :-

(i)                  rapid branch expansion; and

(ii)                channelling of credit according to Plan priorities.

 Thus, the following years saw expansion of banking facilities in hitherto
uncovered areas, with the main objective as to mop up potential savings
in unbanked areas and thereby meet the credit gaps in agriculture and
small-scale industries.   Thus, the country witnessed  large areas of
economic activities being brought under the banner of public sector
banking system.    This phase witnessed the primacy of the need of the
borrower over commercial considerations in the banking sector.     

 However, soon it was realized that the task of providing agricultural

credit on the requisite scale could not be met by commercial banks as
they lacked the specialized knowledge of the rural settings and were
reluctant to open branches in deep interiors due to various reasons.  Thus
in 1975,  Regional Rural Banks (RRBs) were set up to fill this gap in
financing the agriculture sector in rural areas.

 In April 1980, six more private sector banks were nationalised, thus
extending the domain of public control over still larger part of the Indian
banking system.

 However, soon it was realized that this uncontrolled mushrooming of

the branches is weakening the financial strengths of the banks and the
central bank is loosing it edge to control such a large network of
branches.   It was felt there was a need for consolidation.   Thus, from
1984 onwards started a period, when RBI stressed the need for
consolidation of the branches, toning up of the house keeping and ensure
that profitability remains a concern of the banks.    However, the
frequent Loan Melas and waiving of the small loans from 1986 to 1991,
further eroded the creditability of the banking sector and borrowers
started getting a feeling that they can easily get away by not paying back
the borrowed sums.

 Some of the important features of this era, which needs to be kept in

mind are summed below :- 

 There was complete dominance of the public sector during this

period,  and state ownership was the buzz word;
  The Banks worked with the main aim to mobilize savings at low
cost and deploy them into the areas specified by the Government at
a subsidized rates
 Government securities market was merely a captive market and
was used by the Government to raise the funds at the rates they
wished to pay;
 The interest rate structures of deposits, loans, money market were
controlled and Banks had no liberty in these matters;
 CRR and SLR requirements touched all time highs and banks were
required to keep upto 63.5% of the demand and time liabilities in
such reserves;

Post Reform Era :

1980s saw Indian economy growing at an annual average rate of about
5.5 per cent.   This period also witness the trend of globalisation
emerging around the globe.  However, certain international
developments like Gulf War of 1990, brought a serious balance of
payment crisis in Indian in 1991.  It was felt that country’s financial
structure may crumble if immediately some extensive steps are not
initiated in financial sector.   Thus, started the reforms in June, 1991, and
the period from then onwards is considered as Post Reform era.

The year 1991 marked a decisive changing point in India's economic

policy since Independence in 1947.Following the 1991 balance of
payments crisis, structural reforms were initiated that fundamentally
changed the prevailing economic policy in which the state was supposed
to take the "commanding heights" of the economy. After decades of far
reaching government involvement in the business world, known as the
"mixed economy" approach, the private sector started to play a more
prominent role

   This era has witnessed radical changes in the Indian financial

system.  These  reforms have considerably changed the objectives and
working ethos in banks.  The reforms in the financial sector have
 brought efficient and stable financial institutions and markets.   The
main thrust of the reforms in the banking and non-banking sector has
been on  (i) creating a deregulated environment, (ii) strengthening the
prudential norms and the supervisory system, (iii) changing the
ownership pattern, and (iv) increased competition; (v) massive
introduction of IT etc.

The Reserve Bank, along with the Government, has initiated

several institutional measures to contain the levels of NPAs.
Notable among these include establishment of Debt Recovery
Tribunals, Lok Adalats (people’s courts), Asset Reconstruction
Companies (ARCs) and Corporate Debt Restructuring (CDR)
mechanism. Settlement Advisory Committees have been formed
at regional and head office level of commercial banks. Enactment
of the Securitisation and Reconstruction of Financial Assets and
Enforcement of Security Interest (SARFAESI) Act, 2002 has
helped in improving the recovery climate in the country. The
Government amended the relevant provisions of the Act to
address the concerns expressed by the Supreme Court regarding
a fair deal to borrowers through an ordinance dated November
11,2004. The declining trend in gross and net NPLs for scheduled
commercial banks has continued despite the adoption of 90-day
delinquency norm and unprecedented surge in growth of
advances.

Legislation has since been enacted to facilitate the compilation

and dissemination of credit information including data on defaults
to the financial system by the Credit Information Bureau of India
Ltd. (CIBIL). The legal provisions and practice in bankruptcy of
the real sector are however still inadequate and need further
reform.

The Reserve Bank is also making efforts to formulate policies to

deal with risks arising on account of operations of large and
complex financial institutions as these pose a systemic risk. As a
first step in this direction, an inter-agency Working Group on
Financial Conglomerates (FC) comprising three supervisory
bodies, viz., the Reserve Bank, the Securities and Exchange
Board of India and Insurance Regulatory and Development
Authority, in June 2004, identified 23 FCs and a pilot process for
obtaining information from these conglomerates has been
initiated.

Interest rate liberalization

Prior to the reforms, interest rates were a tool of cross-subsidization

between different sectors of the economy. To achieve this objective, the
interest rate structure had grown increasingly complex with both lending
and deposit rates set by the RBI. The deregulation of interest rates was a
major component of the banking sector reforms that aimed at promoting
financial savings and growth of the organized financial system The
lending rate for loans in excess of Rs200,000 that account for over 90%
of total advances was abolished in October 1994. Banks were at the
same time required to announce a prime lending rate (PLR) which
according to RBI guidelines had to take the cost of funds and transaction
costs into account. For the remaining advances up to Rs200,000 interest
rates can be set freely as long as they do not exceed the PLR On the
deposit side, there has been a complete liberalization for the rates of all
term deposits, which account for 70% of total deposits. The deposit rate
liberalization started in 1992 by first setting an overall maximum rate for
term deposits. From October 1995, interest rates for term deposits with a
maturity of two years were liberalized. The minimum maturity was
subsequently lowered from two years to 15 days in 1998. The term
deposit rates were fully liberalized in 1997. As of 2004, the RBI is only
setting the savings and the non-resident Indian deposit rate. For all other
deposits above 15 days, banks are free to set their own interest rates
 CONCLUSION
This paper attempted to evaluate the reforms that have occurred in the
Indian banking sector by focusing on the changes in three policies that
are commonly associated with financial repression, namely interest
rate controls, statutory pre-emptions, and directed credit. For these three
policies, indices of financial repression were constructed. The indices
were then used to evaluate the changing intensity of repressive
policies, and to test if the reduction of repressionist policies had a
positive impact on savings, capitalformation and financial development.
Concerning the changing intensity of repressive policies in India, the
indices showed that the degree of financial repression has steadily
increased from 1960 to 1980, decreased somewhat at the beginning of
the 1980s, before reaching a second peak towards the end of the 1980s.
Since then, the degree of financial repression has steadily declined in
India.
The evaluation of the relationship between financial repression and the
associated effects of financial liberalization led to mixed results. The
relationships are statistically significant for India over the 1981 to
2004 period. However, in the 1960 to 1980 period, the indicators have
despite the increase in repressionist policies shown an upward trend. In
fact, here as well, statistically significant relationships can be found
that suggest that the indicators have increased because of the increase in
financial repression, which is contrary to the predictions of the financial
liberalization literature.
The chosen research approach is not without limitations. First, the focus
is on a narrow albeit important set of indicators of financial repression.
For example effects from the nationalization of large parts of the
banking system are not taken into account. Second, the aggregation of
the variables to indices is certainly a simplification of the real nature of
the policies. Other important aspects of the policies, such as the
definition of priority sectors or interest rate restrictions for priority
sector advances, are neglected.
Furthermore, the three variables enter into the index with equal weights,
which is clearly a simplification since the impact of the policies is likely
to be different. However, despite this simplification the aggregate
results capture the changing nature of government intervention in the
Indian banking sector over time fairly well. Third, the statistical tests of
the effects of the removal of repressionist policies focus largely
14 on the mobilization of resources. An aspect that is somewhat
neglected and should be further tested is the efficiency with which these
resources are allocated. A further avenue for future research is
conducting a detailed factor analysis to identify the policy variables that
are associated with the mobilization of resources in India.
Despite these limitations, it can be concluded that the predictions of the
financial liberalization literature should be refuted for India even if
structural changes since 1980 are assumed. India's banking sector was
able to fulfill its functions under both a more state-directed and a
market-based system. The policy implication from this result is that it is
less important under which system – state or market – the banking
sector is coordinated, but how coherently the overall system is managed.
The experiences from countries like South Korea and Taiwan point in a
similar
Since India has decided to move toward a more market-based system, it
is now important for policy makers to create the conditions for the well-
functioning of a market based banking system. Among the necessary
tasks are the building and strengthening of the necessary institutions like
oversight bodies, accounting standards and regulations as well as the
further restructuring and privatization of PSBs. If India continues on its
current path of banking sector liberalization, it should be in a position to
further strengthen its banking system, which will be vital to support its
economic growth in the years to come.