By Khairi Mohamed Omar Doctor Of Business Administration

1 / 15

Samsung Group
Founded in 1938 exporter of dried fish, vegeta bles, and fruits flour mill and confectionery machines
1950s Economic Stabilization

Korean War Samsung lost all assets aimed to help rebuild Korean economy; entered the manufacturing industry (sugar , fabrics) became a leader in modern The headquarters of Samsung Sanghoein Daegu in the late 1930s business practices (recruiting from outside) 1960s Expansion of Key Industries
entered electronics and chemical industries1969 established Samsung Electronics Co.Established in 1969 to manufacture black and white TV sets

2 / 15

3 / 15

Samsung Electronics Established in January, 1969 1970s: Bet the future on electronics
laid the groundwork for electronics in Korea helped the domestic economy grow paved the way for exports

1980s: A more comprehensive electroni cs company

established plants in Portugal and US established Semiconductor and Communicati on corporation began memory chip business

Early 90s: Integration and Globalization Mid-Late 90s: Implementing new mana gement strategies New Millenium: Digital Vision

The Samsung pavilion at Expo 2012

4 / 15

Business overview
Visual Display Business Digital Appliances Business Mobile Communications Business IT Solutions Business Telecommunication Systems Business Digital Imaging Business Memory Business System LSI Business LED Business

5 / 15

Organization Structure

4 main groups with 14 divisions

Samsung Electronics

Digital Media

Information & Communications

Semiconductors

Home Appliances

6 / 15

Focus: 4 Core Markets

Home Multimedia

Mobile Multimedia

Personal Multimedia

Core Components

7 / 15

Vision:
Samsung is dedicated to developing innovative technologies and efficient processes that create new markets, enrich people's lives, and continue to make Samsung a digital leader.

Mission
To devote their talent and technology to creating superior products and services that contribute to a better global society.

8 / 15

Mobile vendors market share 2011

TV MARKET SHARE REPORT 2011

Source: Displaybank

9 / 15

Samsung Electronics

% Sales ($27B)

% Operating Profit
Digital Media 6% Telecommunications 12% Home Appliances 3%

Semiconductors 40%

Digital Media 29%

Home Appliances 8%

Telecommunications 23%

Semiconductors 79%

10 / 15

11 / 15

 In 2011, achieved sales revenue of KRW 165 trillion with an operating income of KRW 16 trillion ,an increase of 6.7% in sales over 2010. Samsung financial structure remains robust, with 32.1% liability ratio, 75.7% capital adequacy ratio and KRW 10 trillion in cash after deducti ng outstanding loans.

At the end of 2011, Samsung Electronics recorded a rise in share price of 11%, or KRW 1,058,000, compared to 2010, exceeding the marke t return. Shareholders were paid an interim dividend of KRW 500 per share and a year-end dividend of KRW 5,000 per share. Investment in facilities totaled KRW 20.9 trillion in 2011 and is expecte d to increase to KRW 24.2 trillion in 2012.
Samsung Electronics ranked 17th on the Interbrand Best 100 Global Br ands 2011, with an estimated brand value of USD 23.4 billion, a 20% i ncrease over 2010.

12 / 15

Year 2011
2006 2005 2004 2003 2002 2001 2000 1999

Net sales 220.1

158.9 140.9 121.7 101.7 116.8 98.7 119.5 93.5

Total Assets

Total liabilities

Total stockholders Equity

Net income

343.7
280.8 233.8 209.4 170.4 156.1 124.3 113.7 116.7

202.6
181.7 153 137.2 113.9 110.3 88.8 84.8 88.5

141.1
99.1 80.8 72.2 56.5 45.8 35.5 28.9 28.2

21.2
12.9 9.4 11.8 5.6 8.9 4.5 7.3 2.2

13 / 15

Financial Overview
Revenue (billion Won) 37,869

26,118 11,518
16,190 15,875

1994

1995

1996

1999

2011

Stock Performance Samsung Electronics Co. Ltd. 005930 (KRX)

1,336,000 KRW +6,000(0.45%)

14 / 15

Management & Employees

222,000 employees in 2011 Development of employees strategic to success Making rounds encouraged as a key management practice

15 / 15

16 / 15

Strengths
Existing knowledge and experien ce of electronics market Strong global presence with stron g brand and customer base, in Q1 of 2012 according to Inter brand ,Global value of Samsungs brand is US$ 32,893 million comp are its competitor, Nokia US$ 21, 009 and Sony, which is US$ 9,11 1 million.

17 / 15

18 / 15

Contd
Well diversified and differentiated product line, to meet changing customer needs. Samsung electro nics has 4 business areas to cover customer elect ronic needs. Design with an attractive styling that catching the pulse of customer, as the result of the development of Samsungs new products that involve team of product designers.

19 / 15

Contd
Market share: global mark et share of mobile phone i ncrease from 16% in 2011 TV market share report 20 % in 2011 . It is the biggest manufactu rer of liquid-crystal display panels with 23% share in 2005, increase to 26.2% in q1 of 2009.

20 / 15

 Different perception on worth the price product on each person that difficult to cover. Not pro-active coming out with unique and leading model Focus on mass market instead of niche market Huge investment on Research & Development Samsung has a high commitment to corporate citizenship and environ mental initiatives, but this isnt broadly known by consumers, and that lack of awareness around its efforts may present a hurdle.
2007 (Mill won) 2006 (Mill won) 2010 (Mill won) 2011(Mill won)

weakness

Sales

98,507,817

85,834,604

9,895,079

11,945,495

Total R&D
R&D/Sales

6,073
6.17 %

5,714
6.66%

60,210
6.10%

620,666
6.11%

Consolidated Financial Statement years ended Dec 31, 2011 (audited report) . nowadays rate 1 US$ = 1,104.42004 WON

21 / 15

Opportunities
Strong customer demand for innovative products & value-added features

High % of younger population, which can be expand a new market now and in the future
22 / 15

Threats
Increasing competition
Source: Displaybank Mobile vendors market share 2011
TV MARKET SHARE REPORT 2011

23 / 15

 Increasing competition
Mobile phone (Q3-2012)

No 1 2 3 4 5 6 7 8 9 +8%$77,839 $m +129%$76,568 $m +8%$75,532 $m +26%$69,726 $m -2%$57,853 $m +2%$43,682 $m +13%$40,062 $m +12%$39,385 $m +40%$3m

24 / 15

 Strong competition Samsung Electronics' faces strong competition from the other Korean industrial groups, such as Matsus hita, Micron Technology ,Sony and LG Group . and globally Nokia and Apple.

25 / 15

Current Challenges
Abandon dependence on cheap commodity products Emphasis on goods developed in-house Rivals are outsourcing production and design Guide the company into the global electronics elite Cross-shareholding among affiliates Shift funds among subsidiaries Outside directors appointed by family

26 / 15

Conclusion
The conclusions drawn from the SWOT analysis were that Samsungs strengths carry more weight than its weaknesses. If Samsung can properly exploited opportunities that exist, it will navigate the threats with no significant difficulties .

27 / 15

Recommendations & Suggestions

Become leader of environmental initiatives to provide more environmental friendly electronic products Enhance their advertisement campaign to create greater brand awareness
As a Corporate Social Responsibility Samsung needs to enhance their bran d image by indulging in more social causes because a good corporate not only takes from people but also returns to them. Improve After Sales Service because satisfaction helps in retaining custom ers Make their R&D more efficient

28 / 15

Thank you !
29 / 15