TUMKUR UNIVERSITY

MINI-PROJECT ON FUNCTIONAL ANALYSIS OF

SAMSUNG COMPANY

MASTER OF BUSINESS ADMINISTRATION

SUBMITTED BY:

GOWTHAM GOWDA R

1ST SEMESTER MBA ‘A’ SECTION

REG NO: P11AZ23M015001

DEPARTMENT OF STUDIES AND RESEARCH IN

BUSINESS ADMINISTRATION TUMKUR UNIVERSITY, TUMKUR

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 INDEX

Sl. No Contents Page No.

1. Introduction
 Industry History
3-7
 Evolution of Organisation
 Organisational Structure
 Board of Directors
2. Functional Analysis of departments
 Product
8-13
 Marketing Strategy
 Finance Department
 Technology
3. Learning Outcome
14

4. Conclusion
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 INTRODUCTION

Before the liberalization of the Indian economy, only a few

companies like Kelvinator, Godrej, Alwyn, and Voltas were the major
players in the consumer durables market, accounting for no less than 90%
of the market. Then, after the liberalization, foreign players like LG,
Sony, Samsung, Whirlpool, Daewoo, and Aiwa came into the picture.
Today, these players control the major share of the consumer durables
market. Consumer durables market is expected to grow at 10-15% in
2007-2008. It is growing very fast because of rise in living standards,
easy access to consumer finance, and wide range of choice, as many
foreign players were entering in the market with the increase in income
levels, easy availability of finance, increase in consumer awareness, and
introduction of new models, the demand for consumer durables has
increased significantly. Products like washing machines, air conditioners,
microwave ovens, color televisions (C-TV) were no longer considered
luxury items. However, there were still very few players in categories like
vacuum cleaners, and dishwashers Consumer durables sector is
characterized by the emergence of MNCs, exchange offers, discounts,
and intense competition. The market share of MNCs in consumer
durables sector is 65%. MNC's major target is the growing middle class
of India. MNCs offer superior technology to the Consumers whereas the
Indian companies compete on the basis of firm grasp of the local market,
their well- acknowledged brands, and hold over wide distribution
network..

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 SAMSUNG HISTORY

1. Founding (1938):
Samsung was founded by Lee Byung-chul as a small trading company in Su-dong,
South Korea.

2. Diversification (1960s):

In the late 1960s, Samsung diversified into industries such as textiles, insurance, and
food processing.

3. Electronics Entry (1970s):

Samsung entered the electronics industry, initially focusing on black-and-white
televisions, refrigerators, and washing machines.

4. Global Expansion (1980s):

In the 1980s, Samsung started its global expansion, establishing overseas

manufacturing plants and offices.

5. Semiconductor Business (1990s):

Samsung became a major player in the semiconductor industry, producing memory
chips and other electronic components.

6. Mobile Phones (late 1990s):

Samsung entered the mobile phone market, initially with basic feature phones, before
becoming a major competitor to Apple with its Galaxy smartphones.

7. Innovation and Growth (2000s-present):

Samsung continued to innovate and diversify, introducing products such as OLED
displays, home appliances, and expanding its presence in areas like healthcare and
biotechnology.

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 EVOLUTION OF COMPANY

Samsung, a South Korean multinational corporation, has evolved from a grocery trading store
founded in 1938 by Lee Byung-Chull to a world-leading technology provider. Here are some
of the company's milestones:

1938: Founded as a grocery store in Taegu, South Korea, trading and exporting goods like
dried fish, vegetables, and noodles
1969: Enters the electronics industry with its first product, a black-and-white television
1970: Begins producing black-and-white TVs
1974: Starts making washing machines and refrigerators
1976: Produces its 1,000,000th black-and-white TV
1977: Exports its first color TVs
1982: Produces its 10,000,000th black-and-white TV
1983: Begins making personal computers
1989: Produces its 20,000,000th color TV
1991: Develops its first mobile phone handset
1994: Develops the first Korean-built electric car
1999: Develops a wireless, multi-function internet phone, or smartphone
2000: Develops a voice-operated mobile phone
2002: Launches its first mobile phone with a 65,000 color LCD screen
2008: Starts its Galaxy line of smartphones
2012: Becomes the world's largest smartphone manufacturer

Samsung's first R&D center in India was established in Bengaluru in 1996, and the company
began assembling televisions in Noida in 1997. It started making refrigerators in India in
2003 and mobile phones in 2007.

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6
 BOARD OF DIRECTORS

NAME DESGNATION

Han-Jo Kim Chairman of the Board & Independent

Director

Jong-Hee Han Vice Chairman & CEO(DX)

Kyung Kye-Hyun President & CEO(DS)

Tae-Moon Roh President & Head of MX

Hark-Kyu Park President & CFO(DX)

Jung-Bae Lee President & Head of Memory

Sun-Uk Kim Independent Director

Jeong Kim Independent Director

Jun-Sung Kim Independent Director

Eun-Nyeong Heo Independent Director

Myung-Hee Yoo Independent Director

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 FUNCTIONAL ANALYSIS OF DEPARTMENTS

1. PRODUCTION

 Manufacturing Planning:
o Setting production targets, scheduling, and resource allocation to meet demand
efficiently.
 Supply Chain Management:
o Procurement of raw materials, components, and equipment needed for
production.
 Quality Control:
o Ensuring products meet Samsung's high standards through rigorous testing and
inspection processes.

 Process Optimization:
o Continuously improving manufacturing processes to enhance efficiency, reduce
costs, and minimize waste.
 Technology Integration:
o Incorporating advanced technologies like automation, robotics, and IoT to
streamline production.
 Safety and Compliance:
o Ensuring adherence to safety protocols, environmental regulations, and industry
standards.
 Inventory Management:
o Monitoring inventory levels to prevent shortages or overstocking, optimizing
storage and logistics.
 Collaboration:
o Working closely with other departments such as R&D, engineering, and
marketing to align production with market trends and customer demand.
 Employee Training and Development:
o Providing training programs to enhance skills and knowledge, ensuring a skilled

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 workforce capable of meeting production goals.

 Continuous Improvement:
o Implementing methodologies like Six Sigma or Lean Manufacturing to drive
continuous improvement in productivity and quality.

2. MARKETING

 Market Research and Analysis:

 This function involves gathering data on consumer preferences, market
trends, and competitor strategies. Samsung likely conducts extensive
research to understand customer needs and preferences, which informs
product development and marketing strategies.

 Product Marketing:
 This function focuses on developing marketing strategies for Samsung's
products, including smartphones, tablets, home appliances, and more. It
involves creating compelling product messaging, pricing strategies.

 Brand Management:
 Samsung's strong brand presence requires dedicated efforts to maintain
and enhance its reputation. This function involves managing brand
identity, ensuring brand consistency across all marketing channels, and
protecting the brand from negative publicity or crises.

 Advertising and Promotion:

 Samsung invests heavily in advertising and promotional activities to
reach its target audience. This function includes planning and executing
advertising campaigns across various media channels, such as TV, print,
digital, and social media, to increase brand awareness and drive
consumer engagement.

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 Digital Marketing:
 With the increasing importance of digital channels, Samsung's
marketing department likely has a dedicated team for digital marketing
initiatives. This includes activities such as online advertising, search
engine optimization (SEO), social media marketing, and email
marketing to reach and engage with consumers online.

 Sales Support:
 Marketing efforts are closely aligned with sales objectives to drive
revenue growth. The marketing department likely provides sales teams
with marketing materials, product information, and promotional support
to facilitate the selling process and achieve sales targets.

 Customer Relationship Management (CRM):

 Maintaining strong relationships with customers is crucial for Samsung's
long-term success. The marketing department may utilize CRM systems
and strategies to manage customer interactions, gather feedback, and
personalize marketing communications to enhance customer loyalty and
satisfaction.

3. FINANCIAL

 Financial Planning and Analysis:

o This function involves forecasting future financial performance, analyzing
financial data, and developing strategic plans to ensure the company's financial
health and stability. Samsung's finance team likely collaborates closely with
other departments to align financial goals with overall business objectives.

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 Budgeting and Expense Management:
o The finance department is responsible for creating and managing budgets for
various departments and projects within Samsung. This includes allocating
funds, monitoring expenses, and implementing cost-saving measures to
optimize resource allocation and improve profitability.

 Financial Reporting and Compliance:

o Samsung is a publicly traded company, so it must adhere to strict financial
reporting standards and regulations. The finance department prepares and
publishes financial statements, such as income statements, balance sheets, and
cash flow statements, to provide transparency to investors and stakeholders.

 Investment Analysis and Capital Budgeting:

o Samsung's finance team evaluates investment opportunities, such as mergers
and acquisitions, capital expenditures, and strategic partnerships, to determine
their financial feasibility and potential impact on the company's long-term
growth and profitability. This involves conducting financial modeling, risk
analysis, and due diligence processes.

 Treasury Management:
o Managing cash flow, liquidity, and financial risks is critical for Samsung's
operations. The finance department oversees cash management activities,
including cash flow forecasting, working capital management, and foreign
exchange risk hedging, to maintain adequate liquidity and mitigate financial
risks.

 Tax Planning and Compliance:

o Samsung operates in multiple countries and jurisdictions, each with its own tax
laws and regulations. The finance department develops tax strategies to
optimize the company's tax position, minimize tax liabilities, and ensure
compliance with local tax requirements.

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 Financial Control and Internal Audit:
o To safeguard assets and prevent fraud, the finance department establishes
internal controls and procedures to monitor and mitigate financial risks. Internal
auditors conduct periodic audits to assess the effectiveness of these controls and
identify areas for improvement, helping to enhance operational efficiency and
accountability.

TECHNOLOGY

 Research and Development (R&D):

o At the core of Samsung's technology department is R&D, where scientists,
engineers, and researchers work on developing innovative products and
technologies. This function involves exploring new technologies, conducting
experiments, and prototyping new products to maintain Samsung's competitive
edge in the market.

 Product Development:
o The technology department collaborates closely with other departments, such as
product management and marketing, to translate R&D findings into tangible
products. This involves designing, engineering, and testing new products to
ensure they meet quality standards and customer expectations.

 Software Development:
o In addition to hardware, Samsung places significant emphasis on software
development for its products. The technology department develops operating
systems, user interfaces, applications, and firmware to enhance the functionality
and user experience of Samsung devices, such as smartphones, tablets, and
smart TVs.

 Quality Assurance and Testing:

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 o Ensuring product quality is paramount for Samsung's reputation and customer
satisfaction. The technology department conducts rigorous testing and quality
assurance processes to identify and rectify any defects or issues before products
are released to the market.

 Information Technology (IT) Infrastructure:

o Samsung's technology department manages the company's IT infrastructure,
including networks, servers, databases, and cybersecurity systems. This function
ensures the reliability, security, and scalability of Samsung's IT systems to
support its operations and business processes.

 Supply Chain and Logistics Technology:

o Samsung relies on advanced technology solutions to optimize its supply chain
and logistics operations. This includes inventory management systems,
transportation management software, and predictive analytics tools to streamline
processes, reduce costs, and improve efficiency.

 Emerging Technologies:
o The technology department explores and evaluates emerging technologies, such
as artificial intelligence (AI), Internet of Things (IoT), augmented reality (AR),
and blockchain, to identify opportunities for innovation and differentiation in
Samsung's products and services.

 Collaboration and Partnerships:

o Samsung collaborates with external partners, including research institutions,
universities, and technology startups, to leverage their expertise and resources in
advancing its technological capabilities. This collaboration fosters innovation
and accelerates the development of new technologies and solutions.

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 LEARNING OUTCOME

 Innovation:
o Samsung's commitment to innovation across multiple industries can teach
students the importance of continuous improvement and pushing boundaries.

 Market Analysis:
o Studying Samsung's market strategies and responses to market trends can
provide insights into conducting thorough market analysis and understanding
consumer behavior

 Globalization:
o Samsung's global presence and operations offer lessons in international
business, including navigating cultural differences, supply chain management,
and global marketing.

 Corporate Social Responsibility:

o Observing Samsung's initiatives in sustainability and social responsibility can
highlight the importance of ethical business practices and corporate citizenship.

 Adaptability:
o Samsung's ability to adapt to technological advancements and changing market
landscapes underscores the importance of flexibility and agility in today's
business environment.

 Leadership:
o Analyzing Samsung's leadership structure, decision-making processes, and
organizational culture can offer insights into effective leadership practices and
corporate governance.

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 CONCLUSION

 Samsung is a huge and a powerful empire that covers many sectors. Such a big
company should have a really good strategy and management structure to
manage the different sectors of the company.

 Samsung has made it a culture to invent new products and seek the new
opportunities. That has given it the advantage on its competitors on the process
of implementing new ideas before anyone else, and that also explains the verity
of Samsung’s products in the market.

 With respect to the above study and the findings thereby, the
company has definitely entrenched into the urban market.

 With few more concerted efforts, the said organization needs

to enter the rural market in order to completely establish itself
all over.

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