Samsung Electronics Co., Ltd.

is a South Koreanmultinational electronics company

headquartered in Suwon, South Korea.
[2]
It is the flagship subsidiary of the Samsung Group,
amounting to 70% of the groups revenue in 2012
[3]
, and has been the world's largest information
technology company by revenues since 2009.
[4]
Samsung Electronics has assembly plants and
sales networks in 80 countries and employs around 370,000 people.
[5]
For 2012 the CEO is Kwon
Oh-Hyun.
[6]

Samsung has long been a major manufacturer of electronic components such as lithium-ion
batteries, semiconductors, chips, flash memory and hard drive devices for clients such
as Apple,Sony, HTC and Nokia.
[7]

[8]

In recent years, the company has diversified into consumer electronics.
[9]
It is the world's largest
manufacturer of mobile phones and smartphones fueled by the popularity of its Samsung Galaxy
line of devices.
[10]
The company is also a major vendor of tablet computers, particularly its Android-
powered Samsung Galaxy Tab collection, and is generally regarded as pioneering the phablet
market through the Samsung Galaxy Note family of devices.
[11]

Samsung has been the world's largest maker of LCD panels since 2002, the world's largest
television manufacturer since 2006,
[12]
and world's largest manufacturer of mobile phones since
2011.
[13]
Samsung Electronics displaced Apple Inc. as the world's largest technology company in
2011 and is a major part of the South Korean economy.

The Samsung Philosophy

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

Five Samsung Business Principles

In an expression of its commitment to corporate social responsibility as a world leading company,
Samsung Electronics announced the Five Samsung Business Principles in 2005. The principles
serve as the foundation for its global code of conduct in compliance with legal and ethical standards
and the fulfillment of its corporate social responsibilities.
1. We comply with laws and ethical standards.
2. We maintain a clean organizational culture.
3. We respect customers, shareholders and employees.
4. We care for the environment, safety and health.
5. We are a socially responsible corporate citizen.


Management

Core Elements of Management

1. Make the extension of human resource development and technical superiority with
management principles
2. Increase the synergy effect of the whole management system through human resources and
technologies



Samsung looks for creative and collaborative visionaries to run their companies. By attracting
talented managers and evolving their organizations culture to support them, they foster innovative
ideas that advance technology, produce new products and improve the everyday lives of their
customers.

Samsung Electronics has established a new compliance system designed to minimize business
risks and ensure compliance with applicable laws. They have instituted a compliance program that
includes preemptive and year-round training, control and supervision in order to ensure adherence
to pertinent laws by the company and all employees and mitigate risks related to violation of laws
and regulations. Our compliance activities are broadly classified into prevention, monitoring and
follow-up processes. Prevention activities include employee education, distribution of manuals on
compliance, system-based self-inspections, and operation of a help desk to respond to questions
on compliance matters. They also keep up to date with the introduction and revision of various laws
and regulations. There is a separate team dedicated to monitoring activities. After dealing with a
compliance issue, they analyze the related process and outcome to find the fundamental cause and
pursue improvement measures. Real life examples are used in training programs as a way of
preventing recurrence of any compliance problems that arise.

Best Practice
The secret sauce behind Samsung's supply chain success is definitely "Best Practice Analysis".
They study how other world's leading companies manage business and choose to adapt these best
practices gradually

7 Supply Chain Transformations
1. Listen to Voice of Customer: At the macro level, Samsung tries to understand behavior of
consumers in particular country by sending staffs to attend MBA programs at local universities.
These Country Specialists also establish connection with business leaders and potential
business partners. At micro level, they gather customer preferences and incorporate them into
product design through a method called Quality Function Deployment.
2. Adopt Six Sigma Methodology: Based on quality movement in electronics industry,
Samsung believes they can improve internal operations drastically using Six Sigma. Then they
study various Six Sigma approaches from GE, Dupont and Honeywell. Later, they create a
methodology based on GE approach called DMAEV (define, measure, analyze, enable and
verify).
3. Utilize APS system: Since electronics market changes quickly, they need to be able to create
flexible production plan. So they implement APS system which brings remarkable success.
4. Setup Cross Functional Team: In order to bring internal departments closer, they use the
system called Voice of Business. What they do is to gather internal requirements and establish
action plans based on collective decision.
5. Streamline Performance Evaluation System: The classic problem of many organizations Asia
is seniority based performance evaluation system. Samsung thinks they wont be able to attract
the best and the brightest to help them grow if there is no performance based system in place.
Then they gradually integrate merit-based system and allow high performers to have fast track
career path.
6. Standardize Processes and Parts: To achieve economy of scale, Samsung standardize
processes and parts and majority of components are produced in Korea. This also enables them
to manage product quality more effectively due to ease of control.
7. Establish Risk Management System: They realize that risks are the fact of life. So they
implement very comprehensive risk management system and their risk mitigation strategies are
low inventory level, flexible capacity and redundant suppliers.