SUMMER INDUSTRY INTERNSHIP REPORT

IN MANUFACTURING SECTOR/SERVICE SECTOR/NGO

SUBMITTED IN PARTIAL FULFILMENT OF

THE REQUIREMENTS FOR THE DEGREE OF
BACHELOR OF BUSINESS ADMINISTRATION (BBA)

DONE BY
R RAHUL
17BBA0054

IN
RR ENTERPRISES – SAMSUNG

UNDER THE GUIDANCE OF

Dr. SUSAN CHIRAYATH
Professor

Business School

JULY 2019
 CERTIFICATE

This is to certify Summer Industry Internship report submitted by R Rahul [17BBA0054] to

VIT Business School, VIT University, Vellore in partial fulfilment of the requirements for the
degree of Bachelor of Business Administration is a bonafide record of work carried out by him
/ her under my supervision. The contents of this report, in full or in parts have not been
submitted in any form to any other institute or university for the award of any degree or
diploma.

Faculty Guide Programme Coordinator

Examiner 1 Examiner 2

ii
Insert the Certificate from the organization at this page no.

iii
 DECLARATION

I, R Rahul (17BBA0054), a Bonafide student of VIT Business School, VIT University, Vellore,
hereby declare that the Summer Industry Internship report submitted in partial fulfilment of the
requirements for the Degree of Bachelor of Business Administration of the VIT University, is
my original work.

Date:

Place: Vellore

R Rahul

iv
 ACKNOWLEDGEMENT

I place on record my sincere thanks to the Management of VIT for providing an opportunity to
connect with industries that has supplemented the class-room learning. I place my sincere
thanks to Dr. Subhashree P, Dean, VIT Business School and Jose S, assistant Dean, VIT
Business School, for their support and encouragement in carrying out this Training
successfully.

I would like to extend my sincere thanks to Prof. Indra Devi R, Programme Coordinator -
BBA, and all other faculty and staff members of VIT Business School for their support and
assistance.

I would like to express my sincere gratitude to my company guide Raghava [Asst. Manager]
for guiding me throughout my summer internship. His encouragement, time and effort are
greatly appreciated.

I would like to thank my faculty guide, Dr. Susan Chirayath, [Professor], VIT Business
School for all his valuable inputs and constant support towards me throughout my
institutional training period and providing me an opportunity to learn outside the class room
and constantly motivating me to give my best. It was a truly wonderful learning experience

I would like to extend my sincere thanks to Dr. Susan Chirayath (Professor) and T.N.V.R.L
Swamy, Internship Coordinator of VIT Business School.

I would also like to thank my parents for supporting and encouraging me to complete this
training.

Date:

Place: Vellore

R Rahul

v
 CONTENTS

Certificate ----------------------------------------------------------------------- ii
Declaration --------------------------------------------------------------------- iv
Acknowledgement -------------------------------------------------------------- v
Table of contents --------------------------------------------------------------- vi
List of Charts------------------------------------------------------------------- vii

TABLE OF CONTENTS

Chapter No. Description Page No.

1. Introduction --------------------------------------------------------------- 1
Company Overview ----------------------------------------------------- 1
Vision & Mission -------------------------------------------------------- 2
2. Organizational Profile --------------------------------------------------- 3
Location -------------------------------------------------------------------- 4
Organizational Chart --------------------------------------------------- 5
3. Products and Services -------------------------------------------------- 6
4. Key Functional Departments----------------------------------------- 11
 Human Resource Department --------------------------------- 12
 Marketing Department------------------------------------------ 13
5. Best practices of the Company-------------------------------15
6. SWOT Analysis------------------------------------------------17
7. CSR/Social inclusion activities/ any other initiatives ---- 19
Amount Spent ----------------------------------------------- 20
Beneficiaries ------------------------------------------------ 20
8. Summary ------ ------------------------------------------------------- 22
a) My Learning Experience
b) Conclusion

vi
 LIST OF TABLES & CHARTS

Chart No. Description Page No.

1. Organization Structure ------------------------------------------------- 5

2. Product & Services ---------------------------------------------- 6,7,8,9

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 Chapter – I

INTRODUCTION

INTRODUCTION

Samsung is a South Korean multinational conglomerate headquartered in Samsung

Town, Seoul. It comprises numerous affiliated businesses, most of them united under
the Samsung brand, and is the largest South Korean chaebol(business conglomerate).

Samsung was founded by Lee Byung-chul in 1938 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 1990, Samsung has increasingly globalised its
activities and electronics; in particular, its mobile phones and semiconductors have
become its most important source of income. As of 2017, Samsung has the 6th highest
global brand value.

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 South Korea's $1,082 billion GDP.

SAMSUNG LOGO
Evolution of Logo
Current Logo

MISSION

Samsung’s mission statement is “We will devote our human resources and
technology to create superior products and services, thereby contributing
to a better global society.”

Samsung focuses on the following components in its corporate mission:

 Human resources and technological resources

 Superiority of products and services
 Improvement of the global society

VISION

Samsung’s corporate vision is to “Inspire the world with our innovative

technologies, products and design that enrich people’s lives and
contribute to social prosperity by creating a new future.”

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 Chapter II

ORGANIZATIONAL PROFILE

Samsung India is the hub for Samsung's South West Asia Regional
operations. The South West Asia Headquarters, under the leadership of Mr. J S Shin,
President & CEO, Samsung India which commenced its operations in India in
December 1995 enjoys a sales turnover of over US$ 1Bn in just a decade of operations
in the country.

Headquartered in New Delhi, Samsung India has widespread network of

sales offices all over the country. The Samsung manufacturing complex housing
manufacturing facilities for Color Televisions, Mobile phones, Refrigerators and
Washing Machines is located at Noida, near Delhi. Employing approximately 138,000
people in 124 offices in 56 countries,

Company consists of five main business units:

 Digital media Business

 LCD Business
 Semiconductor Business
 Telecommunications
 Digital Appliance Business

RR ENTERPRISES – SAMSUNG is located in Chittoor district, Andhra Pradesh.

This company takes major part in the marketing department. They has the direct contact
with the head office of Andhra Pradesh at Vijayawada. The company strive to delight
the customer by providing high quality products. The company support this by
proactive organization climate that will encourage creativity innovation and continual
improvement.

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Company Location:

Vepamanu Street,

Chittoor-517001,

Chittoor District,

Andhra Pradesh.

Objectives of Marketing:

Samsung is recognized as a quality and reliable smartphone

manufacturer due to its innovative products. The company manufactures phones
according to dynamic customer requirements. The South Korean conglomerate has
earned unbelievable fame and profit due to its smartphones. Its smartphones have
become a symbol of quality. When it comes to buying an Android phone people prefer
to buy Samsung phones. The company isn’t only known for its products but it is famous
for its supreme customer services as well. It has a faster customer service so people buy
its products. The most powerful and influential aspect of the marketing mix is the
product variation. Previously, the company worked hard and faced many difficulties as
compared to its competitors. Samsung Company is a relatable and authentic brand
but when it comes to buying home appliance it can’t beat LG. The market, quality,
and service of LG are better than Samsung. LG is the first company to introduce
something unique and innovative while Samsung also tries to provide excellent
products by using the latest technology.

There are many direct and indirect retailers working with Samsung and they sell
its products. They have included Samsung in their list because the company is
known as a world’s famous brand. The company serves as the best alternative for
consumers and it offers different electronic products including LCDs and laptops.
Customers like to buy products from Samsung because the company offers discounts,
less concentration is required for monitoring of distribution channels, and they pay the
minimum to distribution channels. For example, Samsung offers discounts every now
and then, hold sponsor events, and engage with national and international events and
festivals.

4
ORGANIZATION STRUCTURE

Fig. 2.1 Organization Structure

5
 Chapter – III

PRODUCTS AND SERVICES

The benefit of Samsung in terms of its product is that there is a trust on all
Samsung products because of the way Samsung products have performed in the last
few years. Problems with the products has been negligible. And with its Smart phones,
Samsung has achieved a status symbol for its customers. At the same time, Samsung is
known for its service and people know that Samsung gives a very fast service for any
of its product. Thus in the marketing mix of Samsung, the product portfolio is one of
the strongest point for Samsung.

Products in the marketing mix of Samsung:

 Tablets
 Televisions – LEDs, LCDs. Plasma TV, SMART TV, HDTV etc
 Cameras and Camcorders
 Refrigerators
 Air conditioners
 Washing machine
 Microwave ovens
 IT – Laptops, printers and accessories
 Mobile phones – Smart phones, normal phones.

Tablets:

Fig. 3.1 Tablets

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Televisions:

Fig. 3.2 Television

Cameras:

Fig. 3.3 Cameras

efrigerators:

Fig. 3.4 Refrigerators

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Air Conditioners:

Fig. 3.5 Air Conditioners

Washing Machine:

Fig. 3.6 Washing Machine

Microwave ovens:

Fig. 3.7 Microwave oven

8
IT-Laptops, Printers and accessories:

Fig. 3.8.1 Laptops

Fig. 3.8.2 Printers

Mobile Phones- Smart Phones, normal phones:

Fig. 3.9 Mobile Phones

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Samsung's Global Service offers solutions from professional service and
network deployment to maintenance.
 Network Deployment: Samsung service experts ensure smooth and efficient
network deployment in a cost-effective and timely manner with the best quality
of service. Samsung always does its best to provide operators with
telecommunications systems.

 Maintenance: Samsung helps operators sustain a high-performance network

for the best end-user experiences with proactive and reactive care. Samsung
Maintenance Service provides processes and policies based on deep
understanding of customer's needs and requirements at a practical level.

 Professional Service: Samsung service professional's experiences from the

world's most data-intensive markets and complicated network environments
help operators meet their needs in an efficient and effective manner.

 Technology Consultation
 Radio Network Design
 System Integration
 Optimization

 Cognitive Analytics: Samsung’s Cognitive Analytics platform taps into

elements throughout the network, as well as important radio performance
information from user devices themselves in order to collect a vast amount of
network-relevant data in real time.

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 Chapter - IV

DEPARTMENTS AND FUNCTIONS

Functional Departments:

There are Seven major key functional departments of a company. They are:

 Strategy
 Marketing
 Finance
 Human Resource
 Technology and Equipment
 Operation
 Corporate Social Responsibility

Human Resource Management:

In this company more than 180 employees were continuing their works from start of
the company. This company (RR Enterprises) where established at 2007. They used to
recruit employees for the purpose of marketing department.

Leadership development center aims at training leadership skills for manger to

executive so as to settle down world-class culture for the whole corporation.

Samsung Institute of Global Marketing: nourishes professional marketing human

power carries out marketing education course by capacity to accomplish MDC.

Samsung Advanced Technology Training Institute: nourishes professional

engineering human power carries out the education with specialization such as high end
technology, core technology, basic (foundation) technology and R&D technology
education.

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Marketing Department:

Consumers were never attached with certain technology products, they

always strive to have the best. Such situation has obliged technology manufacturers to
rapidly create new gadgets that would satisfy the needs of customers, and for several
years, Samsung has never failed in this component.

Today, Samsung has sparked in terms of innovation and instead of

satisfying the needs of the society, they have literally started to create the need for
people.

Besides, Samsung has an interesting and vast product portfolio. Their

product range includes laptops, tablets, smartphones, TVs, cameras, Refrigerators, etc.

By this, I mean that the Samsung marketing strategy has helped the firm
to build trust on every product they manufacture.

Samsung Marketing Mix Pricing Strategy – Samsung marketing strategy involves

two pricing strategies and let’s see for what goals are they used.

 Skimming Price – Smartphones of Samsung are leading the market

with Apple’s iPhone. As Apple, Samsung also uses skimming price to gain the
upper hand over their competitors. For instance, Galaxy S6 and S6 Edge are the
brands new products of Samsung carrying the slogan “Next is Now” and claiming
that they are the most beautiful smartphones ever created. Without a doubt, S6
Edge (64 GB) that costs 1 180$ will brilliantly/smoothly sell around the globe.
But, what will happen when other competitors will launch a smartphone with
identical features? Simple. Samsung will lower the price and easily steal
customers from the competitor.
 Competitive Pricing – One of my favorite parts of Samsung marketing strategy.
Due to the fact, that unlike smartphones, Samsung has difficulties in gaining an
edge over its competitors with other products (for example, Samsung has trouble
keeping up with robotic vacuums like the Roomba 650 and 880). Surely,
Samsung is an authentic brand, but in terms of home appliance, it can’t possibly

12
 surpass LG. Furthermore, in Cameras Cannon and Nikon are leading the market.
So, for Samsung to withstand this fierce competition, it’s vital to use competitive
pricing. Also, Samsung never is a late comer in production and non-innovative,
but they are mostly the first ones to introduce a change.

Promotion in the 4Ps of Samsung – Samsung marketing strategy uses diverse forms
of promotion. As Coca-Cola and Nike, Samsung is convinced that advertising is one of
the best forms of promotion to engage potential consumers. Besides advertising,
Samsung approaches different promotional tactics to make customers buy the product.
For instance, quite often, Samsung introduces discounts, sponsors events, engages with
national and worldwide festivals, etc.

 Hence, the Samsung marketing strategy simultaneously helps the organization

progress in different aspects.

Sponsorship: Samsung is one of the largest companies in the world. Today, they have
150,00 employees worldwide. Samsung is mostly famous for its product quality, but
besides the gadgets, Samsung is known for being a sponsor giant. Current sponsorship
of Samsung is IPL, Sydney Opera House, Australian Olympic Team, NSWIS
Awards, Oceania Foundation, etc.

Advertising: Samsung doesn’t concentrate on commercials like Coca-Cola or Pepsi,

but they always promote their most important products.

Targeting: After making market segments on the basis of different classes and groups,
the targets need to be identified and chosen. The company targets various customers
and some of them are young people who adopt fashion and latest technology quickly,
executives, business owners, professionals, students, and other common users of
mobiles. Every kind of company can use mobiles of Samsung because they have a user-
friendly interface. Moreover, the company offers discounts as well through its
promotions. The target of the company is not only attracting more customers but
retaining loyal customers as well.

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Positioning: Positioning refers to the customer awareness about a brand and its
uniqueness as compared to others. Products can be positioned on the basis of product
attributes and features. The company has adopted different strategies for positioning
itself in the smartphone market and some of these strategies are subsequent,

 Samsung put emphasis on the real margin that is generated especially from mid-
end and high-end customer segments.

 Promote products through Samsung concept stores.

 Devices have categorized in the market according to features, functions, and

price.

 The care network of the company is wider.

 The company offers access to its care line to its valuable customers.

 It is the pioneer company who introduced 3G into smartphones, the company

brings innovative products with the latest technology.

 The major objective of the company is to brand itself as a synonym for quality
so when it comes to buying quality products customers choose Samsung. The
firm has created worth of its products by giving importance to quality.

 It has created an image of a unique brand and people know it as a high-end

brand.

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 Chapter – V

BEST PRACTICES OF THE COMPANY

8 Best Practices in Business Management

1. Engage Workers. Alienated workers do not care about performing their jobs.
2. Reward Effort. No one likes their work to go unrecognized.
3. Be Vulnerable.
4. Stay Committed.
5. Seek Clarity.
6. Create Cultural Cohesiveness.
7. Focus Team Effort.
8. Hold Regular Meetings.

The best practices in Samsung Company is

 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”.

 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).

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 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.

 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.

 Streamline Performance Evaluation System: The classic problem of many

organizations Asia is seniority based performance evaluation system. Samsung
thinks they won’t 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.

 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.

 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.

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 Chapter - VI

SWOT Analysis

Strength:

 Samsung is the world’s most successful electronics manufacturer. It is the

world’s largest manufacturer of television sets, liquid crystal display (LCD)
panels, mobile phones and smartphones.
 Samsung is the world’s number one marketer of mobile phones with 21.4% of
the world’s largest market share in the second quarter of 2015. Apple is number
two with 13.9%.
 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.
 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.

Weakness:

 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, Apple’s share price grew by 34.9%.
 Some Chinese competitors are catching up to Samsung in the smartphone
market. Between 2014 and 2015 Huawei’s share grew by 48.1%, and Xiaomi’s
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.
 Samsung’s devices use the Google Android open source operating system.
Many consumers seem to view Android as an inferior product to Apple’s iOS.
The public has not been as accepting of Android as the tech community has.

17
  Some consumers view Apple products as more advanced and dependable than
Samsung products.
 Samsung’s marketing efforts are not as sophisticated as Apple’s.

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 2015.
 Increased demand for tablet and smartphone-based solutions such as Samsung
Pay.
 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
Apple’s reputation for reliability.
 Apple’s 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 growing while Samsung’s 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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 Chapter - VII

CSR/Social inclusion activities/ any other initiatives

Corporate Social Responsibility:

 Samsung has been helping the world create a sustainable and green environment
 Promote and use sources and renewable energy such as solar power, wind
power, and hydrogen fuel cells
 Participates in global recycling
 Samsung launched the Hope for Children program to raise awareness for
childhood education and healthcare.
 Samsung's solve for Tomorrow program also helps the National Education for
Assistance Dog Services
 Samsung will donate $3million to America Red Cross to aid in the Hurricane
Sandy relief.
 Samsung provides free Medical camp in rural areas twice a year.
 Helps for the construction of road facility at rural areas.
 Samsung company has been planting more than 40-50 plant every year.
 They offers job opportunity to whom unemployed under the poverty line.
 Compliance with laws and ethical Standards.
 Maintenance of clean organizational structure.
 Respecting customers, shareholders and employees.
 Caring for the environment, health and safety.
 Being socially responsible corporate citizen.

CSR aspect of the business is managed by Samsung CSR Committee. The company
releases Supplier Responsibility Progress Report annually and it includes the details of
CSR programs and initiatives engaged by the company. Samsung Electronics addresses
CSR aspects of the business in four directions:

 Social contributions,
 Green Management
 Health and Safety and
 Sharing growth.

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Money Spent on CSR Activities:

 The Board shall ensure that in each financial year, Samsung spends at least 2
per cent of the average net profit made during the three immediately preceding
financial years.
 The computation of average net profits will be carried out in accordance with
the provisions of Section 198 of the Companies Act, 2013.
 The unutilized CSR budget from the 2 per cent of the average net profit will be
put back into CSR activities of the succeeding year.
 The surplus arising, if any, out of the CSR projects or programs or activities
shall not form part of the business profit of a company.
 Samsung may collaborate or pool resources with other organizations (its
subsidiary companies and NGO’s) to plan, implement, monitor and report CSR
activities.

Beneficiaries:

Building Libraries:

Children ought to have a clean, safe, well-lit environment in which to learn,

but for many communities around the world, the resources necessary to make that
happen are simply too scarce. Realizing this need, Samsung Engineering has been
transforming neglected schools and community centers into children's libraries at sites.
The project, which began in 2012, has become a huge success, and since 2014, it has
been combined with the scholarship and Eco-Generation program, environmental
education for children, in order to contribute to the development of local community.

Book Donation:

With library buildings being refurbished all around the world, the next task
for Samsung Engineering was to fill those libraries with books, so we run a parallel
program through which we donate books in the names of guests who visit Samsung
Engineering's corporate promotion center located at the head office in Seoul. By
building libraries and filling them with books, we can invest in the future.

20
Technical School:

Samsung Engineering will begin building technical schools near some

of our major project sites in order to train local men and women in basic technical skills,
such as welding and carpentry. After the schools are built, we will then offer
employment opportunities to graduates. By providing people with the skills to earn a
living, creating jobs where they are needed, and securing a global network of qualified
human resources, Samsung Engineering is able to benefit the communities we work in
while strengthening our corporate standing in the region.

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 Chapter - VIII

SUMMARY

a) My Learning Experience:

Through this summer internship, I have learnt the process of marketing department
works of Samsung Company. The CSR activities of Samsung company is very much
helpful to the public and also for environment as they contribute huge money on
plantation purpose. Similarly Samsung company takes care of education of Samsung
employees. Finally, Samsung Company Produces Quality products as well as Quality
service to the society.

b) Conclusion:

With the ever growing threats in the smartphone industry, companies

must learn to predict and adapt to their consumers and their environments in order to
remain a competitive force in this market. As a team, we have learned that in order for
Samsung and the smartphone industry to grow and succeed together, they must focus
on the users of their technology and cater to their constantly evolving wants and needs.
In order to be successful, companies will need to engage in strategic business planning
and be proactive in adapting to the consumer. One way this can be achieved is by
developing a unique brand community.

They must take their current innovations, and simply them, to develop
products that have similar features and benefits at a fraction of the price to consumers.
Research and development along with innovation are clearly necessary to companies
that have the desire to continue being a staple in the smartphone industry.

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 REFERENCES

www.wikipedia.com

www.samsungengineering.com

www.samsung.com

www.samsung.com/information

www.academia.edu

www.slideshare.com

www.samsunginfo.com

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