In Partial

Fulfillment in the
course of ECO 3
Macroeconomics
5

Samsung,
technology of a
new era
Submitted by:
Kunal Sajnani
Niel Arcay

10

Venjie Biadnes
Jeckon Mark Cayacap
Nanessa Ontolan
Kimston Edis
Marianne Sanoy

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April Caingles
Lorelyn Fat

Submitted to:
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Mr. Jessril D. Ruales, MBA

Instructor

Noted by:

Robinson D. Berhay, CPA,MBA

DEAN, College of Accountancy and
Accounting Technology
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History

1938 to 1970
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The headquarters of Sanghoes in Daegu in the late 1930s

In 1938, Lee Byung-chull (19101987) of a large landowning family in the Uiryeong county
moved to nearby Daegu city and foundedSamsung Sanghoe (, ). Samsung
started out as a small trading company with forty employees located in Su-dong (now Ingyodong).[17] It dealt in locally-grown groceries and made noodles. The company prospered and
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Lee moved its head office to Seoul in 1947. When the Korean War broke out, he was forced
to leave Seoul. He started a sugar refinery in Busan named Cheil Jedang. In 1954, Lee
founded Cheil Mojik and built the plant in Chimsan-dong, Daegu. It was the largest woollen
mill ever in the country.
Samsung diversified into many different areas. Lee sought to establish Samsung as leader in

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a wide range of industries. Samsung moved into lines of business such as insurance,
securities and retail. President Park Chung Hee placed great importance on industrialization.
He focused his economic development strategy on a handful of large domestic
conglomerates, protecting them from competition and assisting them financially.[18]
In 1947, Cho Hong-jai, the Hyosung group's founder, jointly invested in a new company

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called Samsung Mulsan Gongsa, or the Samsung Trading Corporation, with the Samsung's
founder Lee Byung-chull. The trading firm grew to become the present-daySamsung C&T
Corporation. After a few years, Cho and Lee separated due to differences in management
style. Cho wanted a 30 equity share. Samsung Group was separated into Samsung Group
and Hyosung Group, Hankook Tire and other businesses.[19][20]

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In the late 1960s, Samsung Group entered the electronics industry. It formed several
electronics-related divisions, such as Samsung Electronics Devices, Samsung ElectroMechanics, Samsung Corning and Samsung Semiconductor & Telecommunications, and
made the facility in Suwon. Its first product was a black-and-white television set.

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1970 to 1990
The SPC-1000, introduced in 1982, was Samsung's first personal computer (Korean market only)
and used an audio cassette tape to load and save data the floppy drive was optional[21]

In 1980, Samsung acquired the Gumi-based Hanguk Jeonja Tongsin and entered
telecommunications hardware. Its early products were switchboards. The facility was
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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.[22] The company grouped them together under Samsung Electronics in the
1980s.
After Lee, the founder's death in 1987, Samsung Group was separated into four business
groupsSamsung Group, Shinsegae Group,CJ Group and the Hansol Group.[23] Shinsegae
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(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.[24] One Hansol Group representative said, "Only people ignorant of the laws

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governing the business world could believe something so absurd", adding, "When Hansol
separated from the Samsung Group in 1991, it severed all payment guarantees and shareholding 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

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said, "Shinsegae has no payment guarantees associated with the Samsung Group". [24]
In 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

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in Austin, Texas, in 1996. As of 2012, Samsung has invested more than US$13,000,000,000
in the Austin facility, which operates under the name Samsung Austin Semiconductor. This
makes the Austin location the largest foreign investment in Texas and one of the largest
single foreign investments in the United States.[25][26]

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1990 to 2000
Samsung started to rise as an international corporation in the 1990s. Samsung's construction
branch was awarded contracts to build one of the two Petronas Towers in Malaysia,Taipei
101 in Taiwan and the Burj Khalifa in United Arab Emirates.[27] In 1993, Lee Kun-hee sold off
ten of Samsung Group's subsidiaries, downsized the company, and merged other operations

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to concentrate on three industries: electronics, engineering and chemicals. In 1996, the

Samsung Group reacquired the Sungkyunkwan University foundation.
Samsung became the world's largest producer of memory chips in 1992 and is the world's
second-largest chipmaker after Intel (see Worldwide Top 20 Semiconductor Market Share
Ranking Year by Year).[28] In 1995, it created its first liquid-crystal display screen. Ten years

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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 one share) and Sony (50% minus one share) and operates its

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factories and facilities in Tangjung, South Korea. As of December 26, 2011, it was announced
that Samsung had acquired the stake of Sony in this joint venture. [29]
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
5

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still manufactures aircraft engines and gas turbines.[30

2000 to 2015
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. [31]

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The prominent Samsung sign in Times Square, New York City

In 2010, Samsung announced a ten-year growth strategy centered around five businesses.
[32]

One of these businesses was to be focused on biopharmaceuticals, to which the company

has committed 2,100,000,000,000.[33]

In December 2011, Samsung Electronics sold its hard disk drive business to Seagate.[34]
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In 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. [35][36] On
21 August's 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.[37] The conversion should start in early 2013 with production on line by the end of 2013.

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On 14 March 2013, Samsung unveiled the Galaxy S4.

On August 24, 2012, nine American jurors ruled that Samsung had to pay Apple $1.05 billion
in damages for violating six of its patents on smartphone technology. The award was still less
than the $2.5 billion requested by Apple. The decision also ruled that Apple did not violate
five Samsung patents cited in the case.[38] Samsung decried the decision saying that the

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move could harm innovation in the sector.[39] It also followed a South Korean ruling stating
that both companies were guilty of infringing on each other's intellectual property. [40] In first
trading after the ruling, Samsung shares on the Kospi index fell 7.7%, the largest fall since
24 October 2008, to 1,177,000 Korean won.[41] Apple then sought to ban the sales of eight
Samsung phones (Galaxy S 4G, Galaxy S2 AT&T, Galaxy S2 Skyrocket, Galaxy S2 T-

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Mobile, Galaxy S2 Epic 4G, Galaxy S Showcase, Droid Charge and Galaxy Prevail) in the
United States[42] which has been denied by the court.[43]
On September 4, 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

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are being used in their factories.[44]

In 2013, a New Zealand news outlet reported a number of Samsung washing machines
spontaneously catching on fire.[45] The corporation is expected to spend $14 billion on

advertising and marketing in 2013, with publicity appearing in TV and cinema ads, on
billboards and at sports and arts events. In November 2013, the corporation was valued at
$227 billion.[46]
In May 2014, Samsung announced it will be shutting down its streaming service on 1 July
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2014, also meaning the end of the Samsung Music Hub app that typically comes installed on
its Android phones.[47]
On September 3, 2014, Samsung announced Gear VR, a virtual reality device in
collaboration with Oculus VR and developed for the Galaxy Note 4.[48]
In October 2014, Samsung announced a $14.7 billion investment to build a chip plant in

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South Korea. Construction will begin next year with production beginning in 2017. The
company has not yet decided the type of chips to be produced. [49]
In October 2014, Samsung also announced it would invest 633 billion South Korean won
($560 million USD) in the construction of a new 700,000 square metre production complex in
Vietnam.[50]

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Samsung plans to launch a new set of services beginning early 2015. The goal of this new
suite of business offerings, dubbed Samsung 360 Services, is to become a help desk of
sorts for businesses IT departments. The customizable services range from technical support
to security solutions for having a Samsung employee embedded in a client's business as an
on-site support manager or technology consultant. [51]

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On December 2, 2014, Samsung announced it will sell Fiber Optics to U.S. speciality glass
manufacturer Corning Inc.[52]
Samsung Electronics Inc. is expanding in Silicon Valley with a $300 million facility in San
Jose, California. The 10-story complex will include 1.1 million square feet of floor space, a
clean room for semiconductors and a "fitness center in the sky". The facility will be split

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between semiconductor research and development and other sales and marketing functions.
It will serve as the North America headquarters for semiconductor operations. [53]
In 2015, Samsung has been granted more U.S. patents than any other company - including
IBM, Google, Sony, Microsoft and Apple. The company received 7,679 utility patents through
Dec. 11.[54]

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2016
In January 2016, Samsung announced it will be working with Microsoft to develop IoT
devices based on Windows 10, where the companies will work together to develop products
that will run on the platform, as well as integrate with other companies developing hardware
and services on Microsoft's OS.[55]

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Samsung released a fitness smartwatch called the Gear Fit 2 and a brand of wireless
earbuds called Gear Icon X.[56]

Background
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From its inception as a small export business in Taegu, Korea, Samsung has
grown to become one of the world's leading electronics companies, specializing in digital
appliances and media, semiconductors, memory, and system integration. Today
Samsung's innovative and top quality products and processes are world recognized. This

timeline captures the major milestones in Samsung's history, showing how the company
expanded its product lines and reach, grew its revenue and market share, and has
followed its mission of making life better for consumers around the world.

Introduction to Macro Company

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A Macro Company,from the word macro,meaning big, is a company that has

branches or offices all around the globe, generating profits of up to billions and
employing ton of workers to meet demands.Samsung Corporation is one of those
companies due to having these basic characteristics and more. Samsung has
numerous businesses like construction,shipping,theme parks and etc. but it is
most notable for technology.

Objectives

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To learn about a macro corporation

To learn the how they manage a company
To learn how samsung is ahead of the tech market of today

Body

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Samsung is mostly well known for producing smart phones, tvs, air cons and similar
tech,although it has multiple subsidiaries ,its tech department is famous all
around.Samsung Electronics was founded in South Korea in 1938 and only entered the
electronics industry in the 1960s. Today it is the Samsung Group, and it has several
subsidiaries in the shipbuilding and construction industries,

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life insurance, aerospace, advertising and theme parks. In

2012, the information technology arm of the Samsung Group
had more revenue than any other electronics company.
Samsung Electronics is the largest part of Samsung, a
conglomerate that accounts for 17 percent of South Koreas

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gross domestic product. It employs 370,000 people in

more than 80 countries, but nowhere can its presence be felt more acutely than in its
native country, where its so dominant it may as well be a second government.Samsung
became the worlds no. 1 smartphone maker since 2013 after introducing the S series of
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high end smart phones.

Samsung is having a moment. Its dominant in TVs

and sells a lot of washing machines, but its smartphones
that made Samsung as recognizable a presence around
the world as Walt Disney and Toyota Motor. If Samsung
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isnt yet as lustrous a brand as Apple, its finding success

as the anti-AppleGalaxy smart phones outsell iPhones.
And Samsung is probably the only other company that can throw a product introduction
and have people line up around a city block, as they did in New York City on March 14
for the launch of the Galaxy S4. That never used to happen when Samsung unveiled a

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refrigeratoralthough the kimchi-specific models made for the Korean market are really
quite impressive.
Aside from the Flagship S7 edge model(picture above right), Samsung has been
releasing phones of different series with different prices unlike apple so people can
choose what fits their budget like the galaxy J5,A7,Note 7 and many more.

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Samsung has offices in across seven continents but its hq is located in Suwon,
South Korea.
Mission

Samsungs mission seems focused in

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building its brand and

becoming a creative leader in new markets.
It looks like Samsung is set to change its reputation of being fast followers, a company
that succeeds through watching others pioneer new technologies and markets and then
rush in behind,but now its one of the leading innovators of technology by doing R&D,

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Samsung is controlling its destiny.

Vision

Inspire the world, create the future, Is Samsung mission

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statement in its vision 2020. With this new vision, Samsung commitment is to inspire
its communities by taking advantage of its key strength, creative solutions, innovative
products and new technology,as they continue to promote its new values for Samsung
core networks.This includes industry, partners and employees. Samsung hopes to
contribute a better world and rich experience for all, using this efforts.Also as part of its

vision, Samsung has a plan to reach $400 billion in revenue and be classified as worlds
top five brands by 2020.As of 2014, Samsung's mission statement is "Inspire the world,
create the future." As one of the leading electronics companies in the world, Samsung
Electronics is characterized by new technology, creative solutions and innovative
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products. Its mission statement changes every decade to match the current business
and technology climate.

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SWOT analysis of Samsung

Strengths

Samsung is the worlds most successful electronics manufacturer. It is the worlds

largest manufacturer of television sets, liquid crystal display (LCD) panels, mobile

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phones and smartphones.

Samsung is the worlds number one marketer of mobile phones with 21.4% of the
worlds largest market share in the second quarter of 2015. Apple is number two
with 13.9%[2]

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Samsung has impressive research and design capabilities. It was able to create
and roll out Samsung Pay, a payment app with similar capabilities to Apple Pay, in
less than a year. Samsung has been able to replicate many of the capabilities of
both Apple Inc.s phones and Google Inc.s Android operating system for mobile
devices.

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Samsung has strong manufacturing and marketing capabilities.

Samsung has long-standing relationships with retailers in the United States and
Europe that provide a steady sales channel for its products.

Weaknesses

Samsung has not been able to match Apple Inc.s marketing capabilities for
smartphones. Its share of the U.S. smartphone market fell by 2.3% between 2014
and 2015. In contrast, Apples share price grew by 34.9%.

Some Chinese competitors are catching up to Samsung in the smartphone

market. Between 2014 and 2015 Huaweis share grew by 48.1%, and Xiaomis

share grew by 29.4%.

Samsung is heavily dependent upon consumer electronics sales in markets with

limited potential for growth, such as the United States and Europe, for much of its
revenue.

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Samsungs devices use the Google Android open source operating system. Many
consumers seem to view Android as an inferior product to Apples iOS. The public
has not been as accepting of Android as the tech community has.

Some consumers view Apple products as more advanced and dependable than
Samsung products.

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Samsungs marketing efforts are not as sophisticated as Apples.

Opportunities

Growing market for smartphones, tablets and other mobile devices, especially in
developing regions such as Africa and India, where consumers are unfamiliar with
PCs. Sales of tablets finally overtook sales of traditional personal computers in

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2015.[3]

Increased demand for tablet and smartphone-based solutions such as Samsung

Pay

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New technologies such as wearable tech

Growing middle class in developing world will increase market for consumer
electronics.

Growing online market from sales channels such as Amazon.com

Threats:

Apple has emerged as the dominant smartphone and tablet brand in some
markets, such as the United States. Samsung has not been able to overcome
Apples reputation for reliability.

Apples reputation for quality, reliability and sophistication seems to be growing.

The Google Android operating system, which Galaxy devices depend upon, is not
as popular with average people as iOS is.

Declining or stagnating middle-class incomes in North America and the United

States could reduce consumer buying power in those key markets for Samsung.

Chinese manufacturers such as Huawei and Xiaomi could emerge as serious

rivals to Samsung. These companies share of the critical mobile device market is

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growing while Samsungs is falling.

Apple could enter more consumer products areas such as home appliances and
cameras and directly compete with Samsung in those markets.

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Conclusion
Samsung maintains impressive research, design and manufacturing capabilities,
but it appears to have lost its edge in marketing. This company may need to revamp its
smart phone marketing and perhaps design efforts in order to maintain market share in
critical arenas like the U.S.Samsung being the top smart phone maker needs to be

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more aggressive in its product promotion.

References

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https://www.reference.com/business-finance/samsung-mission-statementde5ba9ad67ad2ef
https://en.wikipedia.org/wiki/Samsung
https://www.scribd.com/doc/216764180/Samsung-Mission-and-Vision
http://pestleanalysis.com/swot-analysis-of-samsung/

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Table of Contents
History..1
Background4
Introduction to Macro Company.5
10

Objectives5
Body..5
15

Conclusion8
References.8