Chapter 1

INTRODUCTION
Samsung Group is a South Korean multinational conglomerate company headquartered in Samsung Town, Seoul. It comprises numerous subsidiaries and affiliated businesses, most of them united under the Samsung brand, and are the largest South Korean chaebol (business conglomerate). Samsung was founded by Lee Byung-chul in 1838 as a trading company. Over the next three decades the group diversified into areas including food processing, textiles, insurance, securities and retail. Samsung entered the electronics industry in the late 1960s and the construction and shipbuilding industries in the mid-1970s; these areas would drive its subsequent growth. Following Lee's death in 1987, Samsung was separated into four business groups Samsung Group, Shinsegae Group, CJ Group and Hansol Group. Since the 1990s Samsung has increasingly globalized its activities, and electronics, particularly mobile phones and semiconductors, have become its most important source of income. Notable Samsung industrial subsidiaries include Samsung Electronics (the world's largest information technology company measured by 2012 revenues, and 4th in market value),Samsung Heavy Industries (the world's 2nd-largest shipbuilder measured by 2010 revenues), and Samsung Engineering and Samsung C&T (respectively the world's 13th and 36th-largest construction companies).Other notable subsidiaries include Samsung Life Insurance (the world's 14th-largest life insurance company),Samsung Everland (operator of Everland Resort, the oldest theme park in South Korea),[ Samsung Techwin (an aerospace, surveillance and defense company) and Cheil Worldwide (the world's 16th-largest advertising agency measured by 2011 revenues). 1

Samsung has a powerful influence on South Korea's economic development, politics, media and culture, and has been a major driving force behind the "Miracle on the Han River".Its affiliate companies produce around a fifth of South Korea's total exports. Samsung's revenue was equal to 17% of the South Korea's $1,082 billion GDP.

Chapter 2

HISTORY OF SAMSUNG
1938 to 1970 The headquarters of Samsung Sanghoes in Daegu in the late 1930s In 1938 Lee Byung-chull (19101987) of a large landowning family in the Uiryeong county came to the nearby Daegu city and founded Samsung Sanghoe a small trading company with forty employees located in Su-dong (now Ingyo-dong). It dealt in groceries produced in and around the city and produced its own noodles. The company prospered and Lee moved its head office to Seoul in 1947. When the Korean War broke out, however, he was forced to leave Seoul and started a sugar refinery in Busan named Cheil Jedang. After the war, in 1954, Lee founded Cheil Mojik and built the plant in Chimsan-dong, Daegu. It was the largest woolen mill ever in the country and the company took on the aspect of a major company. Samsung diversified into many areas and Lee sought to help establish Samsung as an industry leader in a wide range of enterprises, moving into businesses such as insurance, securities, and retail. Lee placed great importance on industrialization, and focused his economic development strategy on a handful of large domestic conglomerates, protecting them from competition and assisting them financially. In 1948, Cho Hong-jai (the Hyosung groups founder) jointly invested in a new company called Samsung Mulsan Gongsa, or the Samsung Trading Corporation, with the Samsung Group founder Lee Byung-chull. The trading firm grew to become the present-day Samsung C&T Corporation. But after some years Cho and Lee separated due to differences in management 3

between them. He wanted to get up to a 30% group share. After settlement, Samsung Group was separated into Samsung Group and Hyosung Group, Hankook Tire, and others. In the late 1960s, Samsung Group entered into the electronics industry. It formed several electronics-related divisions, such as Samsung Electronics Devices Co., Samsung ElectroMechanics Co., Samsung Corning Co., and Samsung Semiconductor & Telecommunications Co., and made the facility in Suwon. Its first product was a black-and-white television set. 1970 to 1990 The SPC-1000, introduced in 1982, was Samsung's first personal computer (Korean market only) and uses an audio cassette tape to load and save data the floppy drive was optional In 1980, Samsung acquired the Gumi-based Hanguk Jeonja Tongsin and entered the telecommunications hardware industry. Its early products were switchboards. The facility were developed into the telephone and fax manufacturing systems and became the center of Samsung's mobile phone manufacturing. They have produced over 800 million mobile phones to date. The company grouped them together under Samsung Electronics Co., Ltd. in the 1980s. After Lee, the founder's death in 1987, Samsung Group was separated into four business groups Samsung Group, Shinsegae Group, CJ Group and Hansol Group.Shinsegae (discount store, department store) was originally part of Samsung Group, separated in the 1990s from the Samsung Group along with CJ Group (Food/Chemicals/Entertainment/logistics) and the Hansol Group (Paper/Telecom). Today these separated groups are independent and they are not part of or connected to the Samsung Group. One Hansol Group representative said, "Only people ignorant of the laws governing the business world could believe something so absurd," adding, "When Hansol separated from the Samsung Group in 1991, it severed all payment guarantees 4

and share-holding ties with Samsung affiliates." One Hansol Group source asserted, "Hansol, Shinsegae, and CJ have been under independent management since their respective separations from the Samsung Group." One Shinsegae department store executive director said, "Shinsegae has no payment guarantees associated with the Samsung Group." In the 1980s, Samsung Electronics began to invest heavily in research and development, investments that were pivotal in pushing the company to the forefront of the global electronics industry. In 1982, it built a television assembly plant in Portugal; in 1984, a plant in New York; in 1985, a plant in Tokyo; in 1987, a facility in England; and another facility in Austin, Texas in 1996. As of 2012, Samsung has invested more than US$13 billion in the Austin facility, which operates under the name Samsung Austin Semiconductor LLC. This makes the Austin location the largest foreign investment in Texas and one of the largest single foreign investments in the United States. 1990 to 2000 Samsung Group headquarters at Samsung Town, Seoul Samsung started to rise as an international corporation in the 1990s. Samsung's construction branch was awarded a contract to build one of the two Petronas Towers in Malaysia, Taipei 101 in Taiwan and the Burj Khalifa in United Arab Emirates.[25] In 1993, Lee Kun-hee sold off ten of Samsung Group's subsidiaries, downsized the company, and merged other operations to concentrate on three industries: electronics, engineering, and chemicals. In 1996, the Samsung Group reacquired the Sungkyunkwan University foundation. Samsung became the largest producer of memory chips in the world in 1992, and is the world's second-largest chipmaker after Intel (see Worldwide Top 20 Semiconductor Market Share 5

Ranking Year by Year). In 1995, it created its first liquid-crystal display screen. Ten years later, Samsung grew to be the world's largest manufacturer of liquid-crystal display panels. Sony, which had not invested in large-size TFT-LCDs, contacted Samsung to cooperate, and, in 2006, S-LCD was established as a joint venture between Samsung and Sony in order to provide a stable supply of LCD panels for both manufacturers. S-LCD was owned by Samsung (50% plus 1 share) and Sony (50% minus 1 share) and operates its factories and facilities in Tangjung, South Korea. As on 26 December 2011 it was announced that Samsung had acquired the stake of Sony in this joint venture. Compared to other major Korean companies, Samsung survived the 1997 Asian financial crisis relatively unharmed. However, Samsung Motor was sold to Renault at a significant loss. As of 2010, Renault Samsung is 80.1 percent owned by Renault and 19.9 percent owned by Samsung. Additionally, Samsung manufactured a range of aircraft from the 1980s to 1990s. The company was founded in 1999 as Korea Aerospace Industries (KAI), the result of merger between then three domestic major aerospace divisions of Samsung Aerospace, Daewoo Heavy Industries, and Hyundai Space and Aircraft Company. However, Samsung still manufactures aircraft engines and gas turbines. 2000 to 2013 The Samsung pavilion at Expo 2012. In 2000, Samsung opened a computer programming laboratory in Warsaw, Poland. Its work began with set-top-box technology before moving into digital TV and smartphones. As of 2011, the Warsaw base is Samsung's most important R&D center in Europe, forecast to be recruiting 400 new-hires per year by the end of 2013. 6

In 2001 Samsung Techwin became the sole supplier of a combustor module for the Rolls-Royce Trent 900 used by the Airbus A380, the world's largest passenger airliner.[30] Samsung Techwin is also a revenue-sharing participant in the Boeing's 787 Dreamliner GEnx engine program.

The prominent Samsung sign in Times Square, New York City In 2010, Samsung announced a 10-year growth strategy centered around five businesses. One of these businesses was to be focused on biopharmaceuticals, to which the company has committed 2.1 trillion. In December 2011, Samsung Electronics sold its hard disk drive (HDD) business to Seagate. In the first quarter of 2012, Samsung Electronics became the world's largest mobile phone maker by unit sales, overtaking Nokia, which had been the market leader since 1998. In the August 21 edition of the Austin American-Statesman, Samsung confirmed plans to spend 3 to 4 billion dollars converting half of its Austin chip manufacturing plant to a more profitable chip. The conversion should start in early 2013 with production on line by the end of 2013. On March 14, 2013, Samsung unveiled the Galaxy S4. On 24 August 2012, 9 U.S jurors ruled that Samsung had to pay Apple Inc. US$1.05 billion in damages for violating six of its patents on smartphone technology. The award was still less than the US$2.5 billion requested by Apple. The decision also ruled that Apple didn't violate five Samsung patents cited in the case. Samsung decried the decision saying that the move could harm innovation in the sector. It also followed a South Korean ruling stating that both companies were guilty of infringing on each other's intellectual property. In the first trading after the ruling, Samsung shares on the Kospi index fell 7.7%, the largest fall since October 24, 2008, to 7

1,177,000 Korean won. Apple then sought to ban the sales of eight Samsung phones (Galaxy S 4G, Galaxy S2 AT&T, Galaxy S2 Skyrocket, Galaxy S2 T-Mobile, Galaxy S2 Epic 4G, Galaxy S Showcase, Droid Charge and Galaxy Prevail) in the United States which has been denied by the court. On 4 September 2012, Samsung announced that it plans to examine all of its Chinese suppliers for possible violations of labor policies. The company said it will carry out audits of 250 Chinese companies that are its exclusive suppliers to see if children under the age of 16 are being used in their factories. In 2013 news outlets in Australia and New Zealand reported a number of Samsung washing machines spontaneously catching on fire.

Chapter 3

ORGANISATIONAL DEVELOPMENT AN ACQUISITIONS

Organization development (OD) is a deliberately planned, organization-wide effort to increase an organization's effectiveness and/or efficiency. OD theorists and practitioners define it in various ways. Its multiplicity of definition reflects the complexity of the discipline and is responsible for its lack of understanding. For example, Vasudevan has referred to OD being about promoting organizational readiness to meet change,[citation needed] and it has been said that OD is a systemic learning and development strategy intended to change the basics of beliefs, attitudes and relevance of values, and structure of the current organization to better absorb disruptive technologies, shrinking or exploding market opportunities and ensuing challenges and chaos. It is worth understanding what OD is not. It is not training, personal development, team development, HRD (human resource development), L&D (learning and development) or a part of HR although it is often mistakenly understood as some or all of these. OD interventions are about change so involve people - but OD also develops processes, systems and structures. The primary purpose of OD is to develop the organization, not to train or develop the staff. Samsung's R&D organization has three layers. The Samsung Advanced Institute of Technology (SAIT), Samsung's technology competitiveness in core business areas, identifies growth engines for the future, and oversees the securing and management of technology. The R&D centres of each business focus on technology that is expected to deliver the most promising long-term results. Division product development teams are responsible for commercialising products scheduled to hit the market within one or two years.

Samsung has made the following acquisitions and attempted acquisitions: Rollei Swiss watch battle Samsung Techwin acquired a German camera-maker Rollei in 1995. Samsung (Rollei) used its optic expertise on the crystals of a new line of 100% Swiss-made watches, designed by a team of watchmakers at Nouvelle Piquerez S.A. in Bassequort, Switzerland. Rolex's decision to fight Rollei on every front stemmed from the close resemblance between the two names and fears that its sales would suffer as a consequence. In the face of such a threat, the Geneva firm decided to confront. This was also a demonstration of the Swiss watch industry's determination to defend itself when an established brand is threatened. Rolex sees this front-line battle as vital for the entire Swiss watch industry. Rolex has succeeded in keeping Rollei out of the German market. On March 11, 1995 the Cologne District court prohibited the advertising and sale of Rollei watches on German territory. Fokker, a Dutch aircraft maker Samsung lost a chance to revive its failed bid to take over Dutch aircraft maker Fokker when other airplane makers rejected its offer to form a consortium. The three proposed partners Hyundai, Hanjin and Daewoo have notified the South Korean government that they will not join Samsung Aerospace Industries Ltd. AST Research Samsung bought AST (1994) and tried to break into North America, but the effort floundered. Samsung was forced to close the California-based computer maker following mass defection of research staff and a string of losses.

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FUBU clothing and apparel In 1992, Daymond John had started the company with a hat collection that was made in his house in the Queens area of New York City. To fund the company, John had to mortgage his house for $100,000. With his friends, namely J. Alexander Martin, Carl Brown and Keith Perrin, half of his house was turned into the first factory of FUBU, while the other half remained as the living quarters. Along with the expansion of FUBU, Samsung invested in FUBU in 1995. Lehman Brothers Holdings Asian operations Samsung Securities was one of a handful of brokerages looking into Lehman Brothers Holdings. But Nomura Holdings has reportedly waved the biggest check to win its bid for Lehman Brothers Holdings Asian operations, beating out Samsung Securities, Standard Chartered, and Barclays. Ironically, after few months Samsung Securities Co., Ltd. and City of London-based N M Rothschild & Sons (more commonly known simply as Rothschild) have agreed to form a strategic alliance in investment banking business. Two parties will jointly work on cross border mergers and acquisition deals. MEDISON Co., Ltd. Ultrasound Monitors In December 2010, Samsung Electronics Co. bought MEDISON Co., Ltd., a South Korean medical-equipment company, the first step in a long-discussed plan to diversify from consumer electronics.

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Grandis Inc. memory developer In July 2011, Samsung announced that it had acquired spin-transfer torque random access memory (MRAM) vendor Grandis Inc. Grandis will become a part of Samsung's R&D operations and will focus on development of next generation random-access memory. Samsung and Sony joint venture LCD display On December 26, 2011 the board of Samsung Electronics approved a plan to buy Sony's entire stake in their 2004 joint liquid crystal display (LCD) venture for 1.08 trillion won ($938.97 million). mSpot, Inc Music Service On May 9, 2012, mSpot announced that it had been acquired by Samsung Electronics with the intention of a cloud based music service. The succeeding service was Samsung Music Hub. NVELO, Inc. Cache Software Developer In December 2012, Samsung announced that it had acquired the privately held storage software vendor NVELO, Inc., based in Santa Clara, California. NVELO will become part of Samsung's R&D operations, and will focus on software for intelligently managing and optimizing nextgeneration Samsung SSD storage subsystems for consumer and enterprise computing platforms. NeuroLogica Portable CT scanner In January 2013, Samsung announced that it has acquired medical imaging company NeuroLogica, part of the multinational conglomerates plans to build a leading medical technology business. Terms of the deal were not disclose.

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Chapter 4

BOARD OF DIRECTORS OF SAMSUNG

Gee-Sung Choi

Head, Corporate Strategy Office (2012~Present) Vice Chairman & CEO, Samsung Electronics (2010~2012) President & CEO, Samsung Electronics (2010~2010) President & Head, Digital Media & Communications Business, Samsung Electronics (2009~2009) Head, Telecommunications Networks Business, Samsung Electronics, Head, Mobile Communications Division, Head, Corporate Design Center (2007~2009) Head, Digital Media Business, Samsung Electronics (2003~2007) Head, Visual Display Division, Samsung Electronics (1998~2003) Head, Memory Sales and Marketing, Semiconductor Business, Samsung Electronics (1994~1998)

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Ju-Hwa Yoon President & CFO, DMC Management Office, Samsung Electronics, President & CFO, Corporate Management Office, Samsung Electronics (2011~Present) President & CFO, Corporate Management Office, Samsung Electronics (2010~2011) President & Head, Corporate Auditing Team, Samsung Electronics (2009~2009) Head, Management Support Team, Corporate Executive Staff, Samsung Electronics, Head, Global ERP Task Force, Corporate Executive Staff, Samsung Electronics (2007~2009) Head, Management Support Team, Corporate Executive Staff, Samsung Electronics, Head, Management Innovation Team, Corporate Executive Staff, Samsung Electronics (2004~2007) Head, Management Support & Innovation Team, Corporate Executive Staff, Samsung Electronics (1998~2004)

Head, Management Support & Innovation Group, Corporate Executive Staff, Samsung Electronics (1996~1998)

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Dong-Min Yoon

Attorney at Law, Kim & Chang Law Office (1999~Present) Director, Social Protection and Rehabilitation Bureau at the Ministry of Justice (1998~1999) Chief, Planning Management Department at the Ministry of Justice (1997~1998) Public Prosecutor, Daejeon Supreme Public Prosecutor's Office (1995~1997)

In-Ho Lee

Corporate Advisor, Shinhan Bank (2009~2011) Chief Executive Officer, Shinhan Financial Group (2005~2009) President & Chief Executive Officer, Shinhan Bank (1999~2003) Director & Deputy President (Executive Vice President), Shinhan Bank (1991~1999)

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Han-Joong Kim

Professor Emeritus, Yonsei University (2012~Present) Chairman, Korea University Sport Federation (2010~2012) Trustee, Korean Council for University Education (2008~2012) President, Yonsei University (2008~2012) Chairman, Board of Directors, The Korean Society for Preventive Medicine (2006~2008) Professor, Department of Preventive Medicine & Public Health (1982~2012)

Byeong-Gi Lee

Professor of Electrical Engineering, Seoul National University (1986~Present) President, IEEE Communications Society (2010~2011) Commissioner, Korea Communications Commission (2008~2010)

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 President, Korea Information and Communication Society(KICS) (2007~2007) President, Korea Society of Engineering Education(KSEE) (2003~2004) Vice Chancellor for Research Affairs, Seoul National University (2000~2002) Member of Technical Staff, AT&T Bell Laboratories (1984~1986)

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Chapter 5

VISION AND MISSION STATEMENT OF SAMSUNG

"We will devote our human resources and technology to create superior products and services, thereby contributing to a better global society." Since its founding in 1938, SAMSUNG has maintained a mission statement that responds both to its own change, and to new developments in the world: "Economic contribution to the nation", "Priority to human resources", "Pursuit of rationalism". Each slogan represents significant moments in SAMSUNG's history, reflecting different stages of the company's growth from a domestic industrial leader into a global consumer electronics powerhouse.

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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 worlds 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.

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Chapter 6

CHALLENGES FACED BY SAMSUNG

1. NOKIA

Nokia Corporation is a Finnish multinational communications and information technology corporation that is headquartered in Espoo, Finland. Its principal products are mobile telephones and portable IT devices. It also offers Internet services including applications, games, music, media and messaging, and free-of-charge digital map information and navigation services through its wholly owned subsidiary Navteq Nokia owns a company named Nokia Solutions and Networks, which provides telecommunications network equipment and services. As of 2012, Nokia employs 101,982 people across 120 countries, conducts sales in more than 150 countries, and reports annual revenues of around 30 billion. By the fourth quarter of 2012, it was the world's second-largest mobile phone maker in terms of unit sales (after Samsung), with a global market share of 18.0%. Now, Nokia only has a 3% market share in smartphones. They lost 40% of their revenue in mobile phones in Q2 2013. Nokia is a public limited-liability company listed on the Helsinki Stock Exchange and New York Stock 20

Exchange. It is the world's 274th-largest company measured by 2013 revenues according to the Fortune Global 500. Nokia was the world's largest vendor of mobile phones from 1998 to 2012.However, over the past five years its market share declined as a result of the growing use of touchscreen smartphones from other vendorsprincipally the iPhone, by Apple, and devices running on Android, an operating system created by Google. The corporation's share price fell from a high of US$40 in late 2007 to under US$2 in mid-2012. In a bid to recover, Nokia announced a strategic partnership with Microsoft in February 2011, leading to the replacement of Symbian with Microsoft's Windows Phone operating system in all Nokia smartphones. Following the replacement of the Symbian system, Nokia's smartphone sales figures, which had previously increased, collapsed dramatically. From the beginning of 2011 until 2013, Nokia fell from its position as the world's largest smartphone vendor to assume the status of tenth largest.

2. SONY

Sony Corporation, commonly referred to as Sony, is a Japanese multinational conglomerate corporation headquartered in Knan Minato, Tokyo, Japan.Its diversified business is 21

primarily focused on the electronics, game, entertainment and financial services sectors.The company is one of the leading manufacturers of electronic products for the consumer and professional markets. Sony is ranked 87th on the 2012 list of Fortune Global 500. Sony Corporation is the electronics business unit and the parent company of the Sony Group, which is engaged in business through its four operating segments Electronics (including video games, network services and medical business), Motion pictures, Music and Financial Services.These make Sony one of the most comprehensive entertainment companies in the world. Sony's principal business operations include Sony Corporation (Sony Electronics in the U.S.), Sony Pictures Entertainment, Sony Computer Entertainment, Sony Music Entertainment, Sony Mobile Communications (formerly Sony Ericsson), and Sony Financial. Sony is among the Worldwide Top 20 Semiconductor Sales Leaders and third-largest television manufacturer in the world, after Samsung Electronics and LG Electronics. The Sony Group is a Japan-based corporate group primarily focused on the Electronics (such as AV/IT products and components), Game (such as PlayStation), Entertainment (such as motion pictures and music), and Financial Services (such as insurance and banking) sectors. The group consists of Sony Corporation (holding and electronics), Sony Computer Entertainment (games), Sony Pictures Entertainment (motion pictures), Sony Music Entertainment (music), Sony/ATV Music Publishing (music publishing), Sony Financial Holdings (financial services) and others.

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3. L.G.

LG Corporation is a South Korean multinational conglomerate corporation. It is the fourthlargest company of its kind in South Korea, following Samsung Group, Hyundai Motors Group and SK Group. Its headquarters are situated in the LG Twin Towers building in Yeouido-dong, Yeongdeungpo-gu, Seoul. LG makes electronics, chemicals, and telecom products and operates subsidiaries such as LG Electronics, Zenith, LG Display, LG Telecom and LG Chem in over 80 countries. LG Corp. founder Koo In-Hwoi established Lak-Hui Chemical Industrial Corp. in 1947 In 1952, Lak-Hui (pronounced "Lucky", currently LG Chem) became the first Korean company to enter the plastic industry. As the company expanded its plastic business, it established GoldStar Co. Ltd. (currently LG Electronics Inc.) in 1958. Both companies Lucky and GoldStar merged and formed Lucky-Goldstar. GoldStar produced South Korea's first radio. Many consumer electronics were sold under the brand name GoldStar, while some other household products (not available outside South Korea) were sold under the brand name of Lucky. The Lucky brand was famous for hygiene products such as soaps and HiTi laundry detergents, but the brand was mostly associated with its Lucky

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and Perioe toothpaste. Even today, LG continues to manufacture some of these products for the South Korean market, such as laundry detergent.

4. APPLE

Apple Inc., formerly Apple Computer, Inc., is an American multinational corporation headquartered in Cupertino, California that designs, develops, and sells consumer electronics, computer software and personal computers. Its best-known hardware products are the Mac line of computers, the iPod music player, the iPhone smartphone, and the iPad tablet computer. Its consumer software includes the OS X and iOSoperating systems, the iTunes media browser, the Safari web browser, and the iLife and iWork creativity and productivity suites. The company was founded on April 1, 1976, and incorporated as Apple Computer, Inc. on January 3, 1977.The word "Computer" was removed from its name on January 9, 2007, the same day Steve Jobs introduced the iPhone, reflecting its shifted focus towards consumer electronics. Apple is the world's second-largest information technology company by revenue after Samsung Electronics, and the world's third-largest mobile phone maker after Samsung and Nokia. Fortune

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magazine named Apple the most admired company in the United States in 2008, and in the world from 2008 to 2012. However, the company has received criticism for its contractors' labor practices, and for Apple's own environmental and business practices. As of May 2013, Apple maintains 408 retail stores in fourteen countries as well as the online Apple Store and iTunes Store, the latter of which is the world's largest music retailer. Apple is the largest publicly traded corporation in the world by market capitalization, with an estimated value of US$415 billion as of March 2013. As of Sept 29 2012, the company had 72,800 permanent full-time employees and 3,300 temporary full-time employees worldwide. Its worldwide annual revenue in 2012 totalled $156 billion. In May 2013, Apple entered the top ten of the Fortune 500 list of companies for the first time, rising 11 places above its 2012 ranking to take the sixth position.

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Chapter 7

ACHIEVEMENTS OF SAMSUNG
On Dec. 30, 1968, Samsungs founding Chairman Byung-chull Lee and other executives gathered for a meeting where a crucial decision to enter the electronics business was made. Thus on Jan. 13, 1969, Samsung Electronics was born. By November 1970, Samsung succeed in producing 12-inch black-and-white TVs, and just two months after the production it exported the TV sets to Panama. In 1972, Samsung set up a Braun-tube bulb factory and after extensive investment and expansion of production lines, it also established two black-and-white TV lines with a capacity to produce 480 thousand TVs a year. As Samsung established its own production system and accumulated technology, it pushed to produce its own TV model. And in April 1973, the first Samsung-developed TV product was born: the 19-inch transistor black-and-white Maha 506. Following the success of the Maha 506 TV, Samsung expanded into other electronics categories such as refrigerators, air conditioners, washing machines, fans, electric stoves and more. Samsung reached the 5 million milestone in the number of TVs produced in December 1978. In May of the same year, Samsung had already expanded its black-and-white TV lines to become the worlds No. 1 manufacturer. Also in December 1978, Samsungs overall exports reached 100 million dollars. Samsung Electronics merged Samsung Semiconductor in January 1980 in a combination that helped create synergies in production of both electronics and semiconductor parts. The merger set the foundation for Samsung to become a global leader that it is today in semiconductors. 26

Samsung Electronics America was established in July 1978 as Samsung Electronics whollyowned subsidiary and set up its own service system in the country. Samsung Electronics first overseas manufacturing subsidiary was set up in Portugal in 1982. The global manufacturing network expanded to include the U.S. in 1984, the U.K. in 1987 and Mexico in 1988.

n October 1984, Samsung introduced the industrys first 256K DRAM, just three months after it successfully developed the 64K DRAM. Production of the 256K DRAM a technological breakthrough only a handful of companies globally were able to muster marked a defining moment for Samsung in its growth as a leading semiconductor manufacturer.

You can find more details by clicking the following links. More of Samsung Electronics success stories are to come, so please visit us or the Samsung Tomorrow blog again soon!

On December 30th, 1968, 7 promoters, including founding Chairman ByungChull Lee, were gathered. It was decided they wanted to enter an entirely new field and also to elect executives and set their purpose of the business. At this meeting, SangHee Jung was appointed as a first representative director. For the name of the business, there were many candidates on their lists including Cheil Electronics, Samsung Electronics, and Samsung Electric. At that time, their prominent businesses such as Cheil Jedang (Sugar Manufacturing Co.) and Cheil Mojik used Cheil and Samsung Moolsan (Known today as Samsung C&T Corporation) used Samsung.

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So it was to be decided by vote and Samsung and Electronics won the most votes. Therefore, it was decided to name their corporation Samsung Electronics, so January 13th, 1969, Samsung Electronics Corporation was born.

Samsung Electronics recruited 137 trainees in 1969. They were sent to Sanyo Electric Co. and NEC Corporation in 1970. There they learned about producing radio condenser speakers, deflecting coils (DY), transformers (FBT) from Sanyo while they learned about Braun tube, vacuum tube, discharge tube and others from NEC. After their training, they worked as technical professionals at Samsung Electronics.

As Confucius said, study the past, if you would divine the future. Maybe learning about the history of Samsung Electronics could offer hints to where the company is headed for the future.

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Chapter 8

SWOT ANALYSIS
SWOT analysis (alternatively SWOT Matrix) is a structured planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. A SWOT analysis can be carried out for a product, place, industry or person. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieving that objective. The technique is credited to Albert Humphrey, who led a convention at the Stanford Research Institute (now SRI International) in the 1960s and 1970s using data from Fortune 500 companies.[1][2] The degree to which the internal environment of the firm matches with the external environment is expressed by the concept of strategic fit. Setting the objective should be done after the SWOT analysis has been performed. This would allow achievable goals or objectives to be set for the organization. Strengths: characteristics of the business or project that give it an advantage over others Weaknesses: are characteristics that place the team at a disadvantage relative to others Opportunities: elements that the project could exploit to its advantage Threats: elements in the environment that could cause trouble for the business or project Identification of SWOTs is important because they can inform later steps in planning to achieve the objective.

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First, the decision makers should consider whether the objective is attainable, given the SWOTs. If the objective is not attainable a different objective must be selected and the process repeated.

Users of SWOT analysis need to ask and answer questions that generate meaningful information for each category (strengths, weaknesses, opportunities, and threats) to make the analysis useful and find their competitive advantage. Samsung is ranked the 7th in global major appliances. India remained the biggest market for Samsungs major appliances, especially refrigeration and home laundry appliances. Due to the intense competition in India where Panasonic and LG are attempting to grab market share, Samsung is trying to gain share in Eastern Europe, with new production facilities in Poland. However, it is recommended that Samsung should give more attention to Brazil due to high CAGR over 2012-2017 for major appliances.

A detailed SWOT analysis of Samsung Corp provides strategic intelligence on:

Strengths and weaknesses Category and country opportunities for growth Challenges and threats from current competition and future prospects Global and regional market positions

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Chapter 9

HUMAN RESOURCE STRATEGY OF SAMSUNG

Human resources is the set of individuals who make up the workforce of an organization, business sector, or economy. "Human capital" is sometimes used synonymously with human resources, although human capital typically refers to a more narrow view (i.e., the knowledge the individuals embody and can contribute to an organization). Likewise, other terms sometimes used include "manpower", "talent", "labor", or simply "people". The professional discipline and business function that oversees an organization's human resources is called human resource management. From the corporate objective, employees are viewed as assets to the enterprise, whose value is enhanced by development. Hence, companies will engage in a barrage of human resource management practices to capitalize on those assets. In governing human resources, three major trends are typically considered: Demographics: the characteristics of a population/workforce, for example, age, gender or social class. This type of trend may have an effect in relation to pension offerings, insurance packages etc. Diversity: the variation within the population/workplace. Changes in society now mean that a larger proportion of organizations are made up of "baby-boomers" or older employees in comparison to thirty years ago. Advocates of "workplace diversity" advocate an employee base

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that is a mirror reflection of the make-up of society insofar as race, gender, sexual orientation etc. Skills and qualifications: as industries move from manual to more managerial professions so does the need for more highly skilled graduates. If the market is "tight" (i.e. not enough staff for the jobs), employers must compete for employees by offering financial rewards, community investment, etc. In regard to how individuals respond to the changes in a labor market, the following must be understood: Occupational structure: the norms and values of the different careers within an organization. Mahoney 1989 developed 3 different types of occupational structure, namely, craft (loyalty to the profession), organization career (promotion through the firm) and unstructured (lower/unskilled workers who work when needed). Generational difference: different age categories of employees have certain characteristics, for example, their behavior and their expectations of the organization. In the recent time human resource management (HRM) has assumed new prominence because of continuing concerns about global competition, the internationalisation of technology and the productivity of labour. It is argued that these market imperatives require manager to change the way in which they manage the employment relationship in order to allow for the most effective utilization of human resources (HR). Managers and academics argue that the traditional approaches to managing workers are inappropriate and can no longer deliver the goods (Betcherman et al., 1994, p. 2). Harnessing workers full potential and producing the attitudes and behaviour considered necessary for a competitive advantage require three aspects of 32

managerial control to change: organisational design, culture, and HR policies and practice. Current managerial orthodoxy therefore argues the need for a restructuring towards flat hierarchical structures, an enlargement of job tasks with greater employee autonomy and managerial leadership to shape the more intangible aspects of the workplace, for examples beliefs, norms and values. (Bratton and Gold, 2003, p. 4)

In the first part of this paper, I will discusses strategic human resource management (SHRM) and its practice in the one of the worlds biggest company Samsung group. And evaluate how Samsung is practicing human resource management.

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STRATEGIC REPORT OF SAMSUNG

1. Abstract Samsung is best known as one of the worlds biggest sellers of smart TVs, it is also the worlds second biggest handset seller after Nokia. To explore Samsungs success this report develops a theoretical framework for analyzing their strategies in UK market, it first explores the external conditions for Samsung Company and their competitors. A major part of the report is devoted to analyzing Samsungs resent strategies and perceiving the strategic issue they have. The strategy suggestion is applied in the last past of the report to solve the strategic issue.

2. Samsungs Mission and Vision Samsung mobiles vision is guided by a extraordinary vision that to lead the digital convergence movement. Samsung believe that through technology development today, they find the solutions address the challenges of tomorrow. They also aim to develop innovative technologies and efficient processes that create new markets, enrich peoples living and continue to make Samsung a market leader with high reputation. All they do is leaded by their mission: to be the best Digital-Company. Samsung became a global corporation by facing challenges. In past years, their dedicated people would keep to embrace many challenges and come up with new ideas to develop products and services that lead in their markets (Samsung UK website, 2010).

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3. External Analysis External analysis is very important to the firm to understand the market environment and find their opportunities and threats.

4. PEST Analysis Political, economic, social and technological factors can direct and indirect affects Samsung. Political: Confusion over the rate of growth for short-term future, plus confusion as result of different policies from political parties. They announced reduction of import tax for international company therefore if they win the election Samsung can have incentive tax.

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CHAPTER 10

CORPORATE STRATEGY OF SAMSUNG

Just a few years ago Samsung was struggling to catch up in the smartphone market. Now it makes more of them than anybody else and has Apple on the back foot, in addition to being the world's largest technology company by revenue.

The heavily hyped launch of its flagship Galaxy S4 smartphone is the latest step as it tries to overtake Apple, and they've gone all out with a massive screen and impressive new features.

Here are some of the core pillars of Samsung's strategy. The ultimate fast follower Samsung is better than anybody else at learning from its competitors. "A market reader is sort of the classic fast follower," explains Barry Jaruzelski, senior partner at Booz&Co and the co-author of the Global Innovation 1000. "It doesn't mean they ignore their customers, but they're very attuned to what competitors are doing and what other people are bringing to market first and observing what seems to be gaining traction, then very rapidly coming up with their own version of that innovation."

Samsung's aggression has gotten it into trouble in the past, losing a high profile case to Apple for imitating its design. But the reputation hit and the fine were a small price to pay. 36

The company pivots and produces quickly, coming out with a variety of devices. It sees what the market responds to, pushes successes, and kills failures. And now, rather than just providing a cheaper and lesser iPhone, it's differentiated itself with larger screens, different features, successful marketing, and delivering what consumers want. The Note is a perfect example. The company found through market research that Asianlanguage speakers in particular wanted a device that they could hand-write on, because drawing characters is easier with a pen. The result was a combination phone/tablet ("phablet") that's been an unexpected hit. The company combines market research and unparalleled execution with, despite its reputation, a lot of innovation of its own. Samsung was second only to IBM in the number of U.S. patents filed last year, and filed 150 patents related to the new technology in the Galaxy S4. When you've got cash, use it aggressively, or risk falling behind Apple has a huge cash pile, but Samsung seems to be more willing and able to put their money to use. Samsung's research spend is 5.7 percent of its revenue, compared to 2.4 percent for Apple. Samsung is a diverse business with chips, displays, and other technology. This pays dividends, allowing it to compete on price and increasingly, offer features Apple hasn't gotten too. Although, many would argue that Apple chooses not to include certain features Samsung offer. When Samsung wants to get behind something, it can do so with considerable weight.

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That's certainly been the case for its flagship Galaxy phones. Samsung's advertising push has been absolutely massive. In the U.S., where the iPhone is still pretty dominant, last year the company increased its advertising budget five-fold, to $401 million from $78 million. That's $68 million ahead of Apple, and more than $200 million ahead of its nearest competitor in the Android market. And that's only a fraction of its ad budget. This push has paid off too, with Samsung scoring many points at Apple's expense.

Supply chain and distribution Samsung is so much more than a smartphone-maker. It is a conglomerate, a manufacturer, and the world's largest chip-maker. It makes many of the components that go into its smartphones giving it a cost advantage and allowing it to be much more flexible in terms of what it produces and when.

This table from JP Morgan makes it clear how much Samsung produces on its own. SEC stands for Samsung Electronics Corporation and SDC for Samsung Display Corporation (click to expand):

Apple, on the other hand, though it has a diverse, well-managed, and futuristic supply chain, relies on external partners, which can lead to delays and difficulties. And though Apple is trying to move away from Samsung chips, the company's smartphone competitors still have to buy them. In a way, they help finance its cost advantage.

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As Christopher Mims at Quartz points out, the company also has a huge advantage in distribution. The company's new Galaxy S4 will be available on 36 percent more carriers and in 55 percent more countries than the iPhone 5. Samsung's in more places than Apple with a brand new phone, as well as lower end options for the developing world.

The management lesson: You have to commit Samsung is very much a Korean company, and has been, at times, accused of being overly hierarchical and dominated by its founding family. That also provides some advantages. You can fault some things the company does, but not its ambition or commitment. When Samsung decides to get into a business, it goes hard. Within the past decade, it went from just beginning to invest in making batteries for digital devices and flash memory to being a global leader. Former P&G CEO A.G. Lafley argues that companies fail because they're hesitant to make decisions and hesitant to commit because they fear failure and want simply to play rather than win. Samsung wants to be the dominant player in the smartphone market, it has a strategy to do so, and it's using every tool it has as it attempts to succeed at it.

The future The key test of whether Samsung can move from a close-and-gaining second to becoming truly dominant is whether it can deliver products that are truly game-changing.

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To really start pulling customers away from iPhones in droves, it needs to differentiate itself beyond marketing and a bigger screen. It's aggressively investing in Silicon Valley with several big campuses to help it start to lead in software as it already does with hardware.

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CHAPTER 11 CONCLUSIONS

During visit in Samsung company, I learned that how can management be effective in organization. How it can help its employees in their professional and also in social life. Samsung company should take into consideration the opportunities and threats as discuss in SWOT analysis. This will help the company to maintain its brand image for long time. I want to conclude my project by saying that marketing strategy is 4Ps such as Product, Promotion, Price, & Place. These are all important aspects of marketing strategy, without these aspects of marketing strategy marketing is not possible. Marketing Strategy is all about marketing a product. In these marketing-mix sellers, retailers, buyers, & wholesalers plays an important role.

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