Running Head: SAMSUNG GROUP 1   SAMSUNG GROUP 2             SAMSUNG GROUP Blanca Luz Benavidez García BU-695 Dr

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Running Head: SAMSUNG GROUP 1

 

SAMSUNG GROUP 2

 

 

 

 

 

 

SAMSUNG GROUP

Blanca Luz Benavidez García

BU-695

Dr. Pesakovic

Herzing – Atlanta

 

 

 

 

 

 

 

Samsung Group – Capstone Project

Samsung Company one of the world’s largest producers of electronic devices. The success of the company has been facilitated by the different structures put in place. For the past 10 years, the management of the company has been innovative therefore coming up with mechanisms therefore coming up with devices which have occupied the largest percentage of the world’s market. The company’s vision is to inspire the world with innovative technologies, products and design for the purposes of ensuring that the lives of the people are enriched hence contributing to the social prosperity through the creation of a new future (Almeida, 2021). As a result of this vision, the employees have been motivated to work towards achieving the goals and the objectives of the company in the stipulated time. The leadership of the company has introduced measures of ensuring that the vision statement is used in the maintaining of the profitable technology business operations that contributes positively to the success of the economy of different countries.

On the other hand, the mission of the company is to devote the human resources and the available technology to ensure that superior products and services are created. The creation of superior products and services by the company has helped in ensuring that the market share is improved. Moreover, the efforts by the management of the company to safeguard the mission statement have played a role in the facilitation of a better global society. The corporate mission statement of the company was published in the year 1990. It is during this period whereby the company was experiencing global expansions in different semiconductors and electronics.

As far as the organization's structure of Samsung Company is concerned, it is divisional and the company has three different divisions which have contributed to its success. Some of the divisions of the company include; consumer electronics, devices solutions and information technology and mobile communications. As a result of these divisions, the company’s management has been able to come up with the right decisions which bring in place the satisfaction of the customers. In different cases, the divisions are focused in ensuring that the needs of the customers are addressed in a short time. As a result of the divisional organizational structure used by the company, product categorization has been facilitated (Elain, 2021). However, this has enabled the management of the company to determine the resources and the operations which should be carried out in the divisions. On the other hand, the company has used the divisional organizational structure for the purposes of ensuring that the large sections are segregated into small autonomous groups for the right decisions to be made effectively. The company compares with the competitors in different ways. One of the ways in which the company compares with the competitors is its ability to use policies which bring in place the differences. As a result of the policies, the company’s management has ensured that the products are differentiated in three categories. The three categories to which the products are differentiated include; firm customer relationship, product attributes and firm linkages.

Based on the divisional organizational structure of the Samsung Company, the company is receptive to change will be positive. The divisional organizational structure enables the company and the employees in each division to detect the changes experienced in the entire world hence implementing them in the shortest time possible. Again, the divisional organizational structure makes it easy for the changes to be brought in each of the divisions without subjecting the organization to unnecessary risks. Each division of the organization is equipped with skilled human resources and technologies which have helped in ensuring that the changes experienced are embraced according for the goals and the objectives of the company to be achieved (Oktavianti, 2021).

Samsung Company is a matrix organization. This is due to the fact that it has multiple managerial accountability and responsibility. Moreover, the company has two chains of command which occur based on the projects carried out and the other along the functional lines of the employees. The matrix nature of this organization has played significant roles in ensuring that effective decisions are made for the success of the business to be achieved. The decision to come up with the matrix organization structures is again important in the risk management as it provides the employees with opportunities to share ideas which make it easy for the success of the company to be achieved.

The company hires skilled and experienced employees for different tasks to be carried out accordingly. For the diversity in the workforce to be achieved, social media recruitment is used. This has enabled the company to employ workers from different parts of the world. The diverse workforce in the company has played important roles in ensuring that new ideas and knowledge is brought in the company. As far as the leadership of the company is concerned, the leaders are hired from different social groups and races. Through that, the company is encouraged come up with effective decisions (Park, 2021).

The diversity in the company is wide. The wide diversity in the organization has helped in ensuring that the employees remain creative. The creativity brought by the diverse workforce in the company contributes to the innovative nature of the business. Moreover, the wide diversity in the company has been used in facilitating faster decision making processes. The different positions in the business are held by workers from different parts of the world hence contributing to the company’s increased production.

For concepts such as leadership, management and theories, the company has ensured that transformative leadership is in place. This leadership has played significant roles in ensuring that changes are brought in the operations carried out. Again, the management of Samsung Company is experienced enough to facilitate the growth and the development of the company. However, this has enabled the company to consider the needs of the customers therefore coming up with projects which address the needs of the customers. These concepts are reflected in the organization by ensuring that collaborations are enhanced for the success of the organization to be achieved (Shala, 2021).

Samsung Group Financial Analysis

Financial management is an important aspect in different businesses which should be considered in ensuring that companies are enabled to finance the different projects carried out. Samsung Company is one of the companies with an effective financial performance which has been brought by the structures put in place by the management. The success of the company is achieved due to the effective financial management. The proper financial performance of the company is as a result of the effective management of the financial issues experienced. The company has employed experts in the financial management as a way of ensuring that the right tasks are carried out. This has helped in the reduction of the losses experienced in the business. The financial experts have again ensured that the financial risks experienced are managed effectively and the right strategies put in place to address the different issues affecting the finances in the company (Allee, 2021).

Financial ratios in Samsung Company

On the other hand, financial ratio analysis is an important aspect in the company as it ensures the right strategies are put in place in ensuring that the success of the company is achieved. The financial ratios in the company have been used in improving the future financial performance of the business. For the success of the company to be achieved, effective financial management is required therefore enabling the company to perform effectively. The following are financial ratios of the company:

Comparison of financial performance over time – a minimum of three years

Comparing the financial performance of the company over a period of 5 years, the company is likely to experience the needed growth and development due to the different structures put in place. Moreover, the company has come up with innovations which have helped in the improvement of the finances in different departments. Through the innovations, quality products are produced in the shortest time possible therefore making it easy for the company to increase the profits earned. On monthly basis, Samsung Company has been able to increase the profits hence increasing its sustainability. The increased profits have played significant roles in the funding of the projects which are meant in ensuring that the financial performance of the company is improved. Compared to the other years, the company has brought improvements and changes which have enabled it to increase its financial performance in a short time. This has motivated the workers to work towards ensuring that the continued improvements are experienced on daily basis. The divisions in the company’s structures are important in ensuring that changes are implemented in the shortest time possible. This has helped in the improvement of the financial performance of the business. Over a period of time years, high profits have been earned therefore contributing to the success of the company (Frasca, 2021).

Comparison with other competitive firms

Comparing the financial performance of Samsung Company with the financial performance of a company such as Sony, Samsung has an improved financial performance which has been facilitated by the structures put in place. The structures in Samsung Company have played important roles in ensuring that it is enabled to perform in the expected manner for the needs of the customers to be addressed. Through the structures, the employees are encouraged to engage the customers effectively. This has played important roles in the attraction of more customers compared to the competing companies in the entire world.

On the other hand, Samsung Company has an improved financial performance than Techno Company which is among the successful electronic companies in the entire world. The improved financial performance of the company is contributed by the fact that the company’s products are affordable to large numbers of the customers in the market. The affordability of the products by the company has enabled the company to reduce the competition in the market. However, the customers are encouraged to purchase large volumes of products from the company. Finally, the improved financial performance of the company has helped in ensuring that different projects are funded effectively. This has ensured that the competition is managed effectively for the goals and the objectives of the company to be achieved in the stipulated time.

Financial issues that have impacted the organization

There are different financial issues which have impacted the company. One of the financial issues is the accountability issues of the financial officer. This has contributed to continued loss of money in the company due to the fact that the financial officers engage in the poor handling of the company’s finances. Moreover, the lack of accountability amongst the financial officers has impacted the financial performance of the business in a negative way.

The other financial issue in the company is the unforeseen expenses which have made it hard for the company to address the different issues experienced. This financial issue has brought different risks in the company therefore affecting the delivery of services to the customers in the market. The unforeseen expenses are as a result of the continued theft of the organization’s resources by the different employees (Lokanan, 2021).

On the other hand, marketing is the other financial issue in the company has affected the effective operations of the business. The poor marketing strategies used by the employees have lowered the financial performance by a certain ratio. For the marketing issues to be addressed, the employees should be encouraged to come up with the right marketing strategies which will ensure that large numbers of customers are attracted. When large customers are attracted, the organization is enabled to record high sales which contribute to the improved financial performance. Moreover, the company should come up with policies and programs which will ensure that the marketing processes are made effective. It is through that whereby the cash flow in the business will increase. Again, the marketing issues in the company should be addressed by ensuring that the employees are motivated to address the issues experienced by the customers effectively (Shala, 2021). When the customers are handled accordingly, they get encouraged to purchase the products of the company in bulk therefore ensuring that the finances in the business are increased.

Lack of cash flow is the other financial issue experienced by the company therefore affecting how the tasks are carried out. The lack of the cash flow is as a result of the poor marketing strategies applied by the management of the company. For the cash flow to be improved, the company has a role of ensuring that different strategies are used hence ensuring that the numbers of the customers in the company are increased. The lack of cash flow is again experienced due to the poor handling of the finances by the organization’s employees.

The management of the company should focus in addressing the financial issues affecting the performance of the business. The ability of the company to focus in ensuring that the financial issues are addressed helps in ensuring that the set goals and objectives are achieved in the shortest time possible. On the other hand, the company should ensure that the financial officers have the right skills in the financial management for the purposes of ensuring that the risks experienced in the department are addressed. The ability of the company to employ professionals is important in ensuring that the unnecessary losses in the company are reduced in the best way possible. Through that, the normal operations of the company are enabled to go on as expected therefore ensuring that the company experiences the needed growth and development. Finally, the management of the company should ensure that the employees understand the different financial aspects as that will make it easy for the success of the business to be achieved (Werner, 2021).

Samsung Marketing Strategy

The Samsung brand has progressed so much over the past years to Apple Inc.’s main competitor. The company’s marketing strategy made it become an industry leader in technology. The strategy helped the company change its structure from a cost-driven entity and become a leading manufacturer in electronics. Samsung adapted the dynamic consumer preferences in technology to offer progressive and progressing gadgets. Samsung’s marketing plan incorporates diverse forms of advertising, direct marketing, and public associations. The company has the most extensive marketing budget, a reason for its leadership in terms of market share. The South Korean tech giant spend 10.2 billion dollars in 2016 on marketing alone (“Samsung spent over $10 billion on marketing last year,” 2017).

Samsung’s marketing communication strategy comprises two major steps: production and execution, with each stage consisting of different activities. A legal review process is crucial in both steps since neglecting legal implications can cause significant damage to the brand image with severe financial implications (Ertekin et al., 2018). The marketing communication department uses several communication channels such as print and media advertising and sales promotion. During advertising, the company usually advertises its specific products, but not much is publicized on the brand in general. Commonly used sales promotion programs include free gifts when a customer makes a particular purchase, point of sale materials designed with attractive displays, and reward programs where a point-based system awards a certain number of points for a purchase.

Samsung’s Main Products

Samsung offers a wide range of products to its customers. The product list includes household appliances such as television sets, refrigerators, microwaves, and washing machines. They also manufacture handheld devices such as smartphones. Other products include cameras, printers, speakers, hard drives, and LCD panels.

Marketing Mix

Samsung incorporates the 4Ps in its marketing mix. The marketing mix is widely used as a framework to define the marketing strategy that helps a company achieve its business goals and objectives. The marketing mix comprises four elements: price, place, promotion, and product, which should be viewed as one unit.

Product

Samsung invests significantly in research and development to deliver excellent products to its diverse customer base (“Strategic analysis of Samsung,” 2020). Even though product diversification is one of the powerful aspects of its marketing mix, Samsung has one of the best customer services. The company’s vast product portfolio can be divided into five categories. The first category consists of Handheld devices such as Samsung Galaxy series smartphones, Tablets, Samsung note series, and accessories. The second category is home appliances which include vacuum cleaners and air conditioners. The third category is TV/AV comprising of television, audion, video, and accessories. The fourth category is storage consisting of memory cards, Portable SSD, and USB flash drives. Information technology is the final category which comprises laptops, printers, and monitors.

 

Pricing

Pricing plays a vital role in the company’s marketing mix due to its extensive range of products. The company applies two major pricing strategies. The first strategy is the skimming price approach, where products are priced higher to break even before other competitors begin to launch similar products. After some time, when an opponent unveils a related product with identical features, Samsung lowers the selling price to avoid market share reduction due to competition. This pricing strategy is commonly used on smartphones (Simonin, 2014), which constantly compete with iPhones for market share. Competitive pricing is the second pricing policy applied to other products to compete with brands such as LG based on brand value, price, and features. Even though Samsung is a trustworthy brand, it has not succeeded in becoming a market leader in home appliances. Therefore, to prevent attacks from competitors in the market, it uses competitive pricing.

Place

Samsung’s presence is evident in various marketing and distribution networks. The channel marketing model has three sections: The sales and service traders, retailers, and distributors. Service dealers are involved in corporate sales. Retailers in the technology chain are active in the modern retail chain and take advantage of the Samsung brand to serve their customers. Distributors are used to moving products across the globe. A distributor buys large amounts of products directly from Samsung and sells them to retailers.

Promotion

Promotion plays a critical role in creating awareness about a new product. Like any other company, Samsung uses multiple forms of promotion to attract customers and improve its brand’s image. The company carries out the promotion of new products using print and digital platforms. Taking advantage of social media marketing and influencers, Samsung has invited many celebrities and capitalized on their huge following to promote their products and be brand ambassadors. Also, Samsung has applied different promotional tactics outside advertising to influence their customers. Such tactics include sponsoring charitable activities with the communities of its operation and events such as Olympics and festivals. Additionally, the company gives discounts to attract customers. For instance, during festive seasons such as Christmas, Easter, and Idd, customers are encouraged to participate in where winners are rewarded with a product.

Product Strategy

Samsung has had a tremendous shift from a follower to an industry shaper. This strategic shift has been made possible through product innovation based on consumer needs (Simonin, 2014), product differentiation, and diversification. The company has shifted its perception from a value brand to a premium brand targeting high-life seekers. The whole Samsung product line is varied, with each product classification catering to a certain sociodemographic group. For example, under the brand, there are smartphones designed and marketed for a specific high-end client base while other models target budget-conscious consumers. Also, some consumers prefer big display screens, while other products appeal to consumers who prefer higher image resolution.

The company has leveraged technological advancements and massive investment in Research and Development to remain competitive through the provision of awareness into the market trends and development of new products while refining existing ones. Through the years, the market has made innovations that have shaped the market for smartphones and tablets. Display technology has resulted in camera phones with high pixel density and better image color reproduction. Other added features include face recognition, fingerprint scanner, fast charging technology, and heartrate sensors. These new technological features have benefited the company’s overall marketing strategy, giving it a competitive advantage in driving and leading market trends. Moreover, partnership with prominent tech leaders such as IBM has brought new ideas and innovations to existence.

Sales Method

Being the best-known manufacturer of consumer electronic products, Samsung faces competition from Apple and LG in smartphones and electronic appliances. To dominate the market, the company depends on its advertising strategy to persuade customers to buy their products. Through an advertising plan, the company is able to make its products known to consumers, and they emphasize the benefits of the products, which drives successful sales. Samsungs advertising strategy uses both a pull and push approach.

The push strategy involves paid advertisement and sales strategies. Samsung invests heavily in advertisement through traditional mediums such as print and broadcast media. It also engages on spot placement in major events such as entertainment and sports shows. The company also has a strong social media presence on Facebook and Twitter platforms as part of its digital marketing initiative. On the other hand, the pull marketing approach’s ideology is establishing a loyal customer base and creating a strong brand image. Samsung uses its online presence to build and maintain a customer relationship and uses social media to create new product announcements and customer experience discussions and feedback. The pull ad push strategies work simultaneously to stir interest and maintain product visibility.

Ethics, social responsibility and Concentration

Samsung’s integrity and ethic behaviors focuses on employee training and also respect code of conduct across the globe, promote fair market and embrace legal practices to avoid discrimination or labor abuse. The company also embraces a corporate program ensuring ethical business practices. The company has workplace policies that it follows the audit system, audit committee, cyber audit program, integrity training and Global code of conduct.

According to Samsung (2021), Samsung Company complies with laws and ethics standards. Samsung respect the dignity and diversity of people. The company respects human rights of the employees and does not allow forced labor, child slavery, or exploitation of wages under any circumstance. Samsung Company does not discriminate against any group of stakeholder such as employees and customers on bases on gender, nationality religion, race or other characteristics protected by the law. The company promotes equality and inclusion of minorities. According to Samsung (2021), the company has been increasing the number of disabled people being hired over. For instance, in 2013, the company has employee 1.6 percent and it increase to 1.68 and 1.7 in 2014 and 2015 respectively. The use of female employees has also been increasing over years.

The company also recognizes that it works in a competitive world which requires it adhere to laws and ethics regulating business competition. The company accurately records and manages its transaction to enables stakeholders understand the business activities. Samsung does not gains or obtain illegally because it avoids acting against business activities. The company does not permit accepting or giving money, entertainment, goods or economic benefits when doing business at the expense of its competitors (Samsung, 2021). The company upholds the ethics of transparency. Samsung complies with both national and international accounting laws and policies by adapting accepted accounting standards. It discloses major business issues as well as corporate information such as financial status chance with due diligence as required but the law.

According to Samsung (2021), Samsung Company does not engage in politics and it strives to maintain neutrality. It respects the political opinions and political rights of individuals and does not allow its employees to perform political activities in the company. Samsung doe note utilize its resources such as finance, facilities, and manpower to pursue political goals. It refrains from illegal donations and giving money as a form of political support. The company strives to maintain independence from unlawful practices and avoid outside pressure.

The company also protects the employees from any harm or injuries while within and outside in the workplace. The company pursued environmental friendly management. It observes and complies with international environmental standards, national and international regulation, as well as policies and internal rules related to environmental protection. The company uses utmost efforts to ensure protection of environment through waste recycling. The company also operates in a greed workplace whereby they is reduced greenhouse emission, increased waste recycling and reduced water usage. In addition, the company values people’s health and safety by complying with international safety and standards, laws and regulation relating to safety (Samsung Electronics, 2020). It prevents safety accidents by complying with safety rules and creating a clean working area. Samsung make efforts to ensure it provided productive and services that will not cause harm to people.

The social responsibility aspect of Samsung Company is managed by the Samsung CSR committee. The company develops a responsibility progress report every year which includes a detailed CSR initiative and program it has engaged in. Samsung supports the local community as one of the social responsibility initiatives. The Samsung Tec institutes promote independence as well as self-reliance among the adult through systematic vocational education. The program had reached 38659 people by 2015. Samsung SMART schools strive to address existing gaps in global education through improvement of education environment for students living in impoverished areas. The schools have a managed to reach 224753 students who attend Samsung SMART School (Dudovskly, 2017). The company also has the Solve for Tomorrow program that focuses on tackling essential social issues. This program engages non-profit organization and students to identify pressing social problems in the community determine how they can be solves and implement the solution to addresses the problem. The Samsung Care Drive provided various healthcare programs using technology such that it has 30 active programs in Russia, China and Africa. In Korea, the company opened sixth house for /Hose with aim of improving the conditions of the children in the local community.

Samsung has a program of empowering and educating its employees. The company has provided support to employees through training abroad using 3.853 billion. The Samsung Career consulting center has provided service to about 5,500 people. Samsung Talent Review sessions are conducted in collaboration with Expertise development process per year. The program is a talent nurturing process supporting employees to design their career paths and develop a clear vision (Dudovskly, 2017). In 2020, the company launched a labor and humans right training programs in association with business Social responsibility targeting the employees in Samsung Company including managers, supervisors and workers. The training concept depended on the position but its main focus was to address human and labor rights issues.

The company also used slogans that are established to demonstrate the commitment of the company in preservation and sustainability of water resources and a corporate culture, assist employee understand their responsibilities in managing water resources and consider their impact in the environment and local community (Samsung, 2019). The company has also focus on waste reduction as well as recycling. In 2020 the company was targeting to collect 3.8 tons of waste products. The company also focuses on recycling plastic whereby a total of 34,322 tons were recycles to monitors, refrigerators vacuum cleaners, washing machines and earphones.

The social responsibility promotes environment protection. The company worked in line with the 2020 Scope of Eco-Management as well as Planet First initiative to introduce greenhouse emission reduction in Samsung which led to 70 percent reduction of carbon emission (Chang, Zhang, & Xiong, 2019). The Green communication initiative in the company strive to share the value of green management implemented on the projects across the globe including environmental education course and event and allowed the employee to participate ins such programs.

The company has also been concentrating on solving social problem experience by the people using their products. For instance, there have been numerous cases of children using phones to access immoral sites. The company has developed new products well digital wellbeing and parental control setting to allow parents block apps they find distracting to their children. A parent can regulate the type of information their children will access by displaying them permanently of temporal.

Therefore, the company used it ethical social responsibilities and concentrate to improve its service and products. The company focuses of achieving sustainable developments. The company strives to work in in compliance with the law and observing code of conduct. In addition the company provides service to the community, customer and employees as well as other stakeholder to help them deal with existing problem. The company initiates programs that target to assist the poor in develop their skills so that they can acquire skilled in position in futures. Thus, the initiative and program used by the company shows that it is concerned absolute the environment in which in operate and strive to ensure it improves.

Recommendation

Investors should invest in the company due to the fact that the leadership in place is in a position to come up with programs and policies which ensure that the changes are in place. The company’s leadership has in the past ten years come up with strategies which have played important roles in addressing the needs of the customers. Moreover, investors should invest in the company as that will increase the rates of production within a certain period of time. The increment in the rates of production will again increase the profits earned within a certain period of time. On the other hand, investors should invest in the company as that will ensure that the projects in place are effectively funded therefore contributing to the growth and the development of the business. The contribution of the investors will again offer solutions to the different problems encountered hence making it easy for the set goals and objectives to be achieved.

The reasons why investors need to invest in the company are that the investment in the company will ensure that the decision making processes are made effective. The effective decision making processes will help in ensuring that different strategies are brought in the company so as to ensure that the management is carried out effectively. Again, the effective decision making brought by the ability of the investors to invest in the company will reduce the risks which might affect the growth and the development of the organization. The other reason why investors should invest in the company is that proper utilization of the available resources will be enhanced. As a result, the company will reduce the different risks and threats which might affect the performance negatively.

Finally, investors should invest in the company as that will ensure that different talents are brought in different departments of the company. The introduction of the talents will play significant roles in the improvement of the company’s performance as well as that of the employees. Through that, the rates of the production will improve the customers in the market provided with quality products. The contribution of the investors to the operations of the company will therefore help in ensuring that market share of the business is improved. However, this will enable the company to experience the needed growth and development within a short period.

What the investors should for in future is the levels of the company’s growth. This will ensure that the right resources are brought in place for the company to experience the needed growth and development. The other thing the investor should look for in future is the market growth of the company. The company should be in a position to attract large numbers of customers as that will make it easy for the set goals and objectives to be achieved. As far as I am concerned, investment in the company is not a risk investment. This is because the company has been able to record increased sales of the products in different parts of the world. In the past years, the management of the company has ensured that increased sales are made by ensuring that the employees are motivated in the best way possible. The motivation of the employees has therefore contributed to the success of the company due to the fact that the workers have been enabled to engage the customers effectively hence coming up with quality products. The investor will know when to sell the shares by consulting the other stakeholders in the company. This will provide the investor with the needed information on matters related to sharing of the shares.

Conclusion

The purposes of the paper are to analyze the performance and the operations of the company. This provides different people with the needed information on how different aspects of organizations should be improved. The company should come up with strategies which will improve the performance and the rates of production. However, this should be accompanied by an effective collaboration of the workers as that will ensure that ideas are shared on how the different issues experienced are addressed. The introduction of different strategies in the company will address the needs of the customers hence contributing to the growth and the development of the organization. On the other hand, talented employees should be employed in the company for the purposes of ensuring that the rates of production are improved. The ability of the organization to hire talented employees will again ensure that risks and threats are reduced. This is an important aspect which will improve the performance of the company therefore contributing to the success of the processes carried out. Finally, the management of the company should ensure that the right investors are attracted so as to ensure that the projects carried out are funded effectively. This will ensure that the company is able to address the issues experienced in the shortest time possible. The attraction of the investor will again ensure that decisions are made effectively.