Samsung

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Student Names:

Azlan Luqman
Hassan Abrar
Rana Ali Raza

Class:
BBA-3(A) Evening

Subject:
Micro-Economics

Submitted To:
Sir Muhammad
Imran
Department Of Management And Sciences
Introduction:
The 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).

Founder Of Company Samsung:


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 five business groups Samsung
Group, Shinsegae Group, CJ Group and Hansol Group, and Joongang 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 2020,
Samsung has the 8th highest global brand value.

Samsung industrial affiliates:


Notable Samsung industrial affiliates include Samsung Electronics (the world's largest
information technology company, consumer electronics maker and chipmaker measured by 2017
revenues). Samsung Heavy Industries (the world's 2nd largest shipbuilder measured by 2010
revenues) and Samsung Engineering and Samsung C&T Corporation (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) and Cheil Worldwide (the world's 15th
largest advertising agency, as measured by 2012 revenues).

Cost Production Of Samsung:


Low-cost structure of Samsung and high responsiveness to economic events has made Samsung
more competitive. For example, initially Samsung focused more on volume and domination on
market rather than increasing profitability. However, in 1990s, during the Asian financial crisis,
Samsung cut costs and reemphasized product quality and manufacturing flexibility, which
allowed its consumer electronics move from project phase to store shelves within next six
months.

Under the resources-based view of strategic management, effective resources available to a firm,
as well as the competency of a firm is responsible in affecting competitive advantage received by
a firm. The competitive advantage received by a firm will likely.
• That is comparatively more from last year's Galaxy S7 Edge which costs $271.20 to
produce.
Activities at Samsung:

Samsung has aimed to carry out various environmentally focused campaigns in all corners of the
globe. Samsung’s campaign includes directing the earth a cleaner, healthier place to live for e.g.,
Samsung employee around the world have personally participated in environmental cleanups,
end of life EOL) recovery campaign and community tree plantings.

Samsung Engineering seeks to make better conditions around the globe through our various
social contribution programs. Company-wide, Samsung utilize their strengths and resources to
benefit local communities and help children and families who are in need. Individually,
employees of Samsung are encouraged to take part in the many volunteer programs offered by
the company.

Production Process Of Samsung:


In order to perform manufacturing processes effectively and completing the entire development
cycle for the electronics products. Samsung Electronics use several well-planned stages. These
stages are arranged in such a fashion that the product development can be time and cost
effective. The major stages used in Samsung Electronics are described below.
Conceptualization:
Samsung Electronics continuously attempt to formulate a new concept of products based on
advanced technologies. It can be a new product or development of variances of the existing
products in the market.
Research:
After developing the product concept, Samsung Electronics greatly emphasizes on the
identification of suitable technology, vendors as well as methods for the production of the
products
Circuit Design:
Samsung Electronics uses several computers drafting software in order to develop a schematic
diagram. In addition to that, the company also generates a preliminary parts list for prototyping
as well as costing the product.
Market Structure Of Samsung:
The first decision in Samsung's marketing strategy was to develop new competitive and
promotional strategies. Mr. Yun initiated a new competitive strategy with the goal of developing
and marketing superior products while also building an image of Samsung as a stylish, high-
quality brand worthy of a premium price.

Samsung’s organizational structure is designed to promote technological innovation throughout


the enterprise. Considering its organizational structure’s involvement in diverse operations,
Samsung employs various operations management strategies for different markets and industries.
The conglomerate’s organizational design and structural system covers various markets and
industries related to the development and utilization of technologies, such as computing
technologies. Effective market penetration and market development strategies are enabled
through Samsung’s corporate structure, which also empowers competitive advantages to support
business continuity and success in an increasingly saturated and aggressive competitive
landscape.
Samsung Electronics Co., Ltd. and sister companies and subsidiaries form the organizational
structure of the Samsung Group. In this internal analysis, it is illustrated that the corporate
structure of the technology conglomerate is applied throughout its operations. For example, the
organizational structural characteristics of Samsung Electronics are the same as the structural
characteristics of the conglomerate. This consistency in the corporate structure helps streamline
the company’s operations, especially in keeping its competitive advantages against many
aggressive firms, including Apple, Google, Sony, Intel, Dell, Acer, and Lenovo.

Effects Of COVID-19 On Company Samsung:


Samsung Electronics has seen its earnings soar as sales were boosted by millions working and
learning from home during the virus pandemic. The world’s largest maker of smartphones said
second quarter operating profits rose 23% compared to last year. The results were helped by
strong demand for computer chips, which pushed up prices on the global market.
Data centres have expanded capacity to support home working and schooling.
"The Memory Business saw robust demand for cloud applications related to remote working and
online education as the impact from Covid-19 continued, while demand for mobile was relatively
weak," the South Korean company said in a statement.

Facts:
 Tech bosses grilled over claims of 'harmful' power
 Apple announces new iPhone SE
 Smartphone sales collapse amid coronavirus crisis
Other major memory chip makers, including rival Korean producer SK Hynix and US firm
Micron Technology, have also been boosted by people staying at home and consuming internet-
based services like video conferencing and movie streaming.

Last week, SK Hynix said its operating profit had tripled in the second quarter from a year ago as
server operators ordered memory chips and prices rose. In June, Micron Technology forecast
higher-than-expected revenue this quarter due to strong demand for its chips that power
notebooks and data centres. "Many enterprises are moving their operations to the cloud, and the
server computing segment is on the rise," Prachir Singh, a senior analyst at Counterpoint market
research firm told the BBC.

New models:
"The smartphone market is expected to witness intensifying competition amid a gradual recovery
in demand in the second half of the year," it said. Despite Covid-19 causing lower demand
technology brands continue to release new handsets. In April, Apple announced a new iPhone
SE, reviving a mid-market model it had discontinued in 2018. A week earlier OnePlus unveiled
new models, while the previous month Huawei launched its flagship P40 range. Meanwhile,
Apple's IPhone 12 and the Google Pixel 5 and 4A are expected to be released later this year.
Samsung shares were a little higher in Seoul trading on Thursday and have gained around 10%
this week.
Samsung, which is set to launch its new Galaxy Note and Galaxy Z Fold handsets, also predicted
that the market for smartphones will improve in the coming months as well as seeing it becoming
increasingly competitive.

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