1.

0 INTRODUCTION TO PROJECT STUDY:

1.1 AIMS AND OBJECTIVES OF PROJECT
The main aim or the goal of this project is to gain good marks and going 1 step ahead towards professionalism. And know the stratergy of the company and how the company functions. The aim behind the visit to the company was to practically observe the working and functioning of the company. Project aims are a statement of the overall Why of the project. A project aim is a statement starting with the words: The aim of this project is That statement tells the reader what your overall goal is, what it is you want to achieve. It does not go into details or describe specific tasks. Project objectives tell the How of the project aim. You want to achieve your goal and the objectives state how this will be done what major tasks will be undertaken and what your major targets are.

1.2 SCOPE OF PROJECT

1. To understand and study in general the management of working capital 2. To analyze the distribution of gross working capital into various components 3. To calculate the operating cycle period 4. To analyze the liquidity position of the company by analyzing the various ratios.

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1.3 METHODOLOGY OF PROJECT STUDY & PRIMARY DATA COLLECTION FROM

Personal tool was the main tool for the collection of primary data and information. This study has brought in use very little primary data in relation with the elements of working capital

SECONDARY DATA COLLECTION FROM

Since the study is based on the financial aspects of the company so the report of the organization, Trial balance, income and expenditure accounts of the company brought in use. Besides the company profile and theoretical aspects taken from the secondary data are practically implemented. Also the various types of ratios were studied which helps in analyzing the financial statements.

METHODOLOGY
Research in common parlance refers to a search for knowledge. Research may be defined:As manipulation of things, concepts or symbols for the purpose of generalizing to extent, correct or verify knowledge, whether that knowledge aids in construction of theory or in the practices of an art

RESEARCH OBJECTIVES
The main objectives of research in management are:1. To verify and to test the existing facts and theories 2. To gain familiarity with a phenomenon or to achieve new insights into it
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3. To establish generalization in various fields of knowledge 4. To bring to limelight information that could have never been brought to the knowledge under normal course.

1.4 LIMITATIONS OF PROJECT STUDY

The most important limitation is that we did not get sufficient time to complete the project. Time limit is a drawback which we had to face. If we would have had more time i.e. the time period would have been extended from 12 days to a month we could have presented the project in a better and more professional manner.

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2. STRATEGIC FREMWORK & MANEGEMENT PROCESS

2.1. INTRODUCTION OF STRATEGIC MANAGEMENT & PLANNING:

Strategic management is a field that deals with the major intended and emergent initiatives taken by general managers on behalf of owners, involving utilization of resources, to enhance the performance of rms in their external environments. It entails specifying the organization's mission, vision and objectives, developing policies and plans, often in terms of projects and programs, which are designed to achieve these objectives, and then allocating resources to implement the policies and plans, projects and programs. A balanced scorecard is often used to evaluate the overall performance of the business and its progress towards objectives. Recent studies and leading management theorists have advocated that strategy needs to start with stakeholders expectations and use a modified balanced scorecard which includes all stakeholders. Strategic planning is an organization's process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy, including its capital and people. Various business analysis techniques can be used in strategic planning, including SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats), GE/McKinsey portfolio analysis, COPE analysis, PEST analysis (Political, Economic, Social, and Technological), STEER analysis (Socio-cultural, Technological, Economic, Ecological, and Regulatory factors), and EPISTEL (Environment, Political, Informatics, Social, Technological, Economic and Legal). Samsung's powerful Strategic Planning Office, which has played a key role in the group's management structure, is destined to disappear. Samsung's

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secretarial office was originally in charge of protocol and simple assistance for the chairman and began to play a role as the command tower for group management from the second half of 1967. Thereafter the secretarial office became a powerful organization overseeing the group's overall operations, including finance, audit, examination of new business projects, and personnel management. After the 1997 crisis, the office turned into "Restructuring Headquarters" and later renamed Strategic Planning Office. Despite its name changes, the office's role as a group command center has largely remained unchanged. Under the new reform plan, Samsung is to dismantle the group command center and instead operate a small-scale administrative office designed to support a council of affiliate CEOs. Strong leadership and focus on growth linked with its international networks and experience within the industry allows an end to end process to be owned and run by Samsung Electronics. This is illustrated in the LCD TV market for which Samsung Electronics develops and manufactures its own TV computer chips. Leveraging these resources provides Samsung Electronics with a deep understanding of the fast changing market and makes them distinct in their competency to launch products to the market quicker than competitors.

y Current Strategy
One of the key areas of strategy for any business is how it intends to grow. This is central to Samsung Electronics as it wants to be a leader as highlighted by their corporate vision; Leading the Digital Convergence Revolution. The two key strategic methods employed are organic growth and strategic alliances.

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O r g

Organic Growth

Organic growth is defined as the growth rate that a company can achieve by increasing output and enhancing sales as opposed to profits or growth acquired from takeovers, mergers or acquisitions (M&A). Coyle (2000) argues that organic growth allows a firm to develop market position over the long term, can help to achieve growth much cheaper than M&A and is well suited to growing markets. This seems to fit well with Samsung Electronics current strategic position as it is the industry leader and has the competencies to grow into other markets. Also, although SEC has large cash reserves, organic growth allows funds to be focused on other areas such as R&D. Finally, the external environmental analysis pointed towards a growth in the LCD market and the electronics industry as a whole thereby reinforcing the suitability of this growth strategy.

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However, is this sustainable? Based on the internal-environment analysis Samsung Electronics has leaders focused on growth, an appropriate culture for growth as well as excellent bonds with customers, effective sales and unrivalled competencies in innovating. According to Forum (2008), a leading company specialising in growth strategies, these are critical factors in sustainable organic growth. So yes, Samsung Electronics growth is sustainable but it may not always be the best strategy to adopt. This is especially true when entering a new market/country which may require deep local knowledge that Samsung Electronics lacks. Samsung Electronics tries to balance this problem with strategic alliances.

Strategic Alliances

Strategic alliances are formal relationships between two or more parties to pursue a set of agreed upon goals while remaining independent organisations (Bleeke and Ernst, 1992). Since 2001 Samsung Electronics agreed 29 different alliances (About Samsung, 2009). According to Bleeke and Ernst (1992) alliances are an efficient ways to enter new markets, to gain skills, technology, or products, and to share fixed costs and resources. It could be said that Samsung Electronics does not need much skills or technology as they are arguably the most innovative and therefore any alliance would be disadvantageous because less competent competitors could learn from them. However, in most cases the sharing of costs and resources provides a winwin situation as illustrated by the Samsung Electronics and Sony alliance. Also, organic growth can be used alongside alliances when entering new markets to minimise the learning curve and associated costs. Nonetheless, the applicability of this growth strategy when expanding operations to emerging markets like China and India is questionable as most firms would be imitators and mutual benefit for Samsung Electronics would most likely not be achieved.

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2.2. STRATEGY FORMATION:

The initial task in strategic management is typically the compilation and dissemination of a mission statement. This document outlines, in essence, the raison d'etre of an organization. Additionally, it specifies the scope of activities an organization wishes to undertake, coupled with the markets a firm wishes to serve. Following the devising of a mission statement, a firm would then undertake an environmental scanning within the purview of the statement. Strategic formation is a combination of three main processes which are as follows:
y

Performing a situation analysis, self-evaluation and competitor analysis: both internal and external; both micro-environmental and macroenvironmental. Concurrent with this assessment, objectives are set. These objectives should be parallel to a time-line; some are in the short-term and others on the long-term. This involves crafting vision statements (long term view of a possible future), mission statements (the role that the organization gives itself in society), overall corporate objectives (both financial and strategic), strategic business unit objectives (both financial and strategic), and tactical objectives.

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2.3. STRATEGIC IMPLEMENTATION:

Once a strategy has been identified, it must then be put into practice. This may involve organising, resourcing and utilising change management procedures:

Organizing Organizing relates to how an organizational design of a company can fit with a chosen strategy. This concerns the nature of reporting relationships, spans of control, and any strategic business units (SBUs) that require to be formed. Typically, an SBU will be created (which often has some degree of autonomous decision-making) if it exists in a market with unique conditions, or has/requires unique strategic capabilities (, i.e. the skills needed for the running and competition of the SBU are different).

Resourcing Resourcing is literally the resources required to put the strategy into practice, ranging from human resources, to capital equipment, and to ICT-based implements.

Change management In the process of implementing strategic plans, an organization must be wary of forces that may legitimately seek to obstruct such changes. It is important then that effectual change management practices are instituted. These encompass:

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The appointment of a change agent, as an individual who would champion the changes and seek to reassure and allay any fears arising.

Ascertaining the causes of the resistance to organizational change (whether from employees, perceived loss of job security, etc.)

Via change agency, slowly limiting the negative effects that a change may uncover.

Samsung Electronics has restructured itself into four strategic divisions namely semiconductor, telecom, LCD and digital media and each of these four divisions have their well-defined strategies, customers, operational focus and critical success factors. At a group level Samsung being a very large conglomerate has separate businesses each which operate as separate entities with their own mission and strategic objectives. In addition to the above structure that positions Samsung very well in order to achieve its future and present growth goals, and with its very high process orientation and customer focus, the only other thing that Samsung would require would investment into information technology that would help it to mine the wealth of information that exists in the company come out with knowledge about the customers and the market that will give it additional insights to leverage its capabilities to ensure that it overachieves on its strategic objectives. Though this would be an information technology initiative that is supposed to bring in organizational benefits, due to the strategic importance that this would play in the overall organizational strategy, this initiative should be championed at the executive level so that it is given the due importance that is necessary to make this a success. Only when the senior management and then the leadership and managerial team realize the importance of this to overall strategy will this initiative work and hence the CEO should be the person championing this program. Though Samsung would not have to change an of their operating procedures, there should be orientation towards appreciation of how this can transform their business and help them achieve the overall strategy.

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Samsungs Continuous Improvement Program (CIP) Samsung Company makes every effort to achieve excellent and consistent product quality at fair prices, and at the right time to ensure customer satisfaction. In order to achieve this goal, Samsung Company continuously improves productivity by controlling the variation in various processes in a stable way. Continuous improvement is implemented by a closed loop methodology consisting of a selection of critical parameters, evaluation of the measurement system, monitoring of critical parameters, process capability improvement, and reaction plan. The main purpose of the CIP activities is minimizing the variation around the target .

Activities Real Time Monitoring (Activities for Special Causes):  Interlock System: Products and processes are monitored and controlled by automatic interlock systems throughout the manufacturing process. In FAB, a three stage protection system is working: Process Recipe Interlock (Incoming Materials and Recipe Check), Equipment Parameter Interlock and Process Output Interlock. At wafer sort, wafers are statistically monitored based on various test results and yields before assembly.

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Statistical Process Control (SPC) and Advanced Process Control (APC): An advanced SPC system suitable for semiconductor manufacturing processes has been implemented and used for random trend monitoring. It includes short run, small change detecting, particle, and multivariate SPC modules. Also, the APC system including real time control and run-to-run control is successfully used for controlling deterministic process behaviors.

Company-wide Improvement Projects (Activities for Common Causes):  FAB Equivalency - "Copy Intelligently: Samsung Equivalence Test program checks the equivalency and non-equivalency of measurement data of output characteristics from "Copy Intelligently" activities. Its purpose is to lead us to make an action to standardize the output characteristics between lines or equipment. Statistical Post Processing: Statistical analysis of test results at wafer sort not only optimizes test effort but also gives useful information such as potential reliability and yield. With a help of statistical approach, wafers or dies with latent risks can be effectively screened and dies can be binned according to potential risks. Virtual Metrology and Modeling: Virtual metrology is of great interest in semiconductor manufacturing process. The idea is to construct predictive models that can forecast the electrical/physical parameters of wafers based on data collected from processing equipment. In this way, actual measurements from wafers can be minimized or eliminated. Furthermore, the APC combined with virtual metrology will lead to a shift from "Lot-to-Lot control" to "Wafer-to-Wafer control".

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2.4. STRATEGIC EVALUATION & CONTROL

The implementation of organization strategy involves the application of the management process to obtain the desired results. Particularly, strategy implementation includes designing the organization's structure, allocating resources, developing information and decision process, and managing human resources, including such areas as the reward system, approaches to leadership, and staffing. Each of these management functions has been the subject of extensive writing and research by scholars and practitioners and has covered in management books. Strategy implementation is "the process of allocating resources to support the chosen strategies". This process includes the various management activities that are necessary to put strategy in motion, institute strategic controls that monitor progress, and ultimately achieve organizational goals. Since full coverage of each management function is beyond the scope of this thesis, I shall focus only on the factors that are most critical to effective implementation strategy. Pierce and Robinson say that "to effectively direct and control the use of the firm's resources, mechanisms such as organizational structure, information systems, leadership styles, assignment of key managers, budgeting, rewards, and control systems are essential strategy implementation ingredients". As Higgins has pointed out, "almost all the management functions -planning, controlling, organizing, motivating, leading, directing, integrating, communicating, and innovation -are in some degree applied in the implementation process". The implementation activities are in fact related closely to one another and decisions about each are usually made simultaneously. I have split these activities in the next chapters. Samsung, being one of the best known brands and also one that has witnessed very fast growth in recent times, must without a doubt have the best information system that would not only allow it to execute its organizational strategy but would also have features that would give it
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feedback and reporting capabilities on a real time basis that would ensure that Samsung can keep a very close track at required intervals on its strategic and operational objectives so that it can monitor and make necessary changes as and when required. However to ensure that it is able to measure strategic factors, the usage of the balance scorecard is recommended that would allow it to closely track strategic, financial and operational controls, so that it can closely evaluate how it is progressing on its strategy and also bring in control when necessary and make changes to operational strategy whenever needed. The balance scorecard is an established and well known tool and should be used for evaluation on its progress on its strategic objectives. To ensure that it can measure its performance at a granular level by which it can break down its objectives and measure and pinpoint at by area, unit, project or function, it has to leverage information technology especially data warehousing and data mining that can give it the capability to slice and dice real time data to ensure that it can generate real time reports, extract exceptions and take necessary corrective actions in the quickest possible time. In addition to the information technology, Samsung realizes that people are the biggest asset that it has which can be seen in their mission statement. The information technology system that it has and the data that it captures about performance should be objective, detailed that would give people insight into what is expected out of them so that they can put in their best to deliver the best performance. Samsung should continue to invest in people, encourage a performance based rewards system and ensure very high motivation in its employees to ensure achievement of strategic objectives. The second part of the report will draw on findings from the internal and external environment. An inside-out perspective will be taken with theoretical frameworks being used to analyse and evaluate the corporate level strategy of Samsung Electronics followed by recommendations for future success.

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Overall Evaluation of Strategic Choices

The advantages of adopting a primarily low cost and differentiated strategy is that Samsung Electronics can achieve significant margins on their products without necessarily charging premium prices. This is beneficial as customers will recognise the value being given, reinforcing brand loyalty and increasing customer satisfaction. Also, the strategy fits the internal competencies of the business well which is extremely desirable because it means Samsung Electronics will be effective in implementing it. Further, the consistent focus on differentiation means there is constant innovation in products and within the firm. This means Samsung Electronics products will constantly be adapting to the trends of the external-environment and ultimately the customer. An example of this is Samsung Electronics response to social and environmental consciousness shifts, reflected in their products as well as strategy. Finally, it is a strategy well suited to hypercompetitive environments as differentiation is key; Your responses should be different and better, not cheaper, faster, and the same (Boar, 1994). On the other hand, whilst pursuing a differentiation strategy Samsung Electronics needs to remain agile with their new product development processes. Else, they risk attack on several fronts by competitors pursuing Focus Differentiation strategies in different market segments. Samsung Electronics mitigates this by creating new markets through innovation and charging premiums for some key products. Another problem with a differentiation strategy coupled with a cost leadership strategy is that customers can come to expect the best value. This can squeeze margins especially in financially weak times like the present. Furthermore, the problem in pursuing a cost leadership strategy is that these sources of cost reduction can be replicated by competitors which make it more important to continuously find ways of reducing cost. However, imitations in cost reduction can be minimised through strategic alliances with competitors; creating winwin situations.

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Thus, the combined strategies employed by Samsung Electronics allow it to achieve sustainable growth and sustainable competitive advantages. Having said this, there are still areas for improvement so recommendations will now be given.

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3. INTRODUCTION TO BUSINESS COORPORATION (SAMSUNG ELECTRONICS)

3.1. COMPANY PROFILE

Samsung Electronics Co., Ltd. is a Korea-based company principally engaged in the provision of consumer electronic products. The Company operates its business under two divisions. The End Product division manufactures and sells digital media products such as digital televisions (TVs), monitors, printers, air conditioners, refrigerators and others, as well as information and communication products such as third-generation (3G) phones, smart phones, communication systems and others. The Component division manufactures and sells semiconductors such as memory chips, system large scale integrated circuit (LSI) products, storages and others, as well as liquid crystal display (LCD) products such as LCD displays used for TVs, monitors, notebook personal computers (PCs) and others. The Company is also engaged in solar cell business. In January 2011, it acquired a display technology firm, Liquavista BV. On July 1, 2011, it sold its solar cell business to SAMSUNG SDI CO., LTD. Samsung, which is a dominant player in the colour and camera phone market, is aiming to fuel its growth in the Indian market through new feature rich handset introductions, strategic operator tie ups as well as by enhancing its penetration in the Indian market. In the first half of this year itself, Samsung has introduced 14 new advanced, innovative colour phones in the Indian market. Last month, Samsung India gave a boost to its mobile distribution network by appointing the Bangalore based, United Telelinks as its National Distributor for Mobile Phones in the country. Samsung India which commenced its operations in India in December 1995, today enjoys a sales turnover of over US$ 1Bn in just a decade of operations in the country.

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Headquartered in New Delhi, Samsung India has a network of 19 Branch Offices located all over the country. The Samsung manufacturing complex housing manufacturing facilities for Colour Televisions, Colour Monitors, Refrigerators and Washing Machines is located at Noida, near Delhi. Samsung Made in India Products like Colour Televisions, Colour Monitors and Refrigerators are being exported to Middle East, CIS and SAARC countries from its Noida manufacturing complex. Samsung India currently employs over 1600 employees, with around 18% of its employees working in Research & Development. y Corporate name and logo

Samsung Electronics corporate name Samsung comes from the word three stars that shine brightly. The hanja character sam has the double meaning of three and strong while sung connotes star and bright (or shining). The corporate name has auspicious meaning in it, meaning that it foretells success.

Samsungs logo design emphasizes flexibility and simplicity while conveying a dynamic and innovative image through the ellipse, the symbol of the universe and the world stage. The openings on both ends of the ellipse where the letters S and G are located are intended to illustrate the companys openmindedness and the desire to communicate with the world. The English rendering is a visual expression of its core corporate vision, excellence in customer service through technology.
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The basic colour in the logo is blue, the colour that Samsung has had used in its logos for years. The blue colour symbolizes stability and reliability, which are precisely what the company wishes to accomplish with its customers. It also stands for social responsibility as a corporate citizen, a company official explained.

Management and board of directors

In December 2010, Samsung switched its management system from the single CEO system of last year under Choi Gee-Sung, to a two person management team with Choi Gee-Sung, CEO and Vice President, and Lee Jae-Yong, Chief Operating Operator and President. The team was credited as being younger both in age and in outlook, and in keeping with the new focus on youthfulness in spirit, some executives have even dyed their hair black. Samsung also reorganized its overseas marketing bases in line with changes in the market, including a combined Britain/Continental Europe regional subsidiary, and a combined China/Taiwan regional subsidiary. Samsung added a new digital imaging business division in 2010, and now consists of eight divisions, including the existing display, IT solutions, consumer electronics, and wireless, networking, semiconductor, and LCD divisions. Samsung also reorganized its business organization to strengthen business synergies, by merging its Digital Air Solutions Team and Samsung Electronics Gwangju (consumer electronics and air conditioners, merged in 2010) under the consumer electronics business division. The Set Top Boxes business was merged with the Visual Display Business Division. Samsung's December 2010 reorganization was as follows: Among the eight divisions, the network division and the digital imaging division experienced new appointments, while the remaining divisions were maintained in accordance with their strong results.  Chief Executive Officer, Vice Chairman: Choi Gee-Sung  Chief Financial Officer: President Yoon Ju-hwa  Chief Operating Officer, President: Lee Jae-Yong
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Division heads  Semiconductor Division: President Kwon Oh-hyun  LCD Division: President Jang Won-ki  Visual Display Division: President Yoon Boo-keun  Mobile Communications Business: President Shin Jong-kyun  Telecommunication System Business: Executive vice President Kim Young-ki(newly appointed)  IT Solutions Business: Executive vice President Nam Seong-woo  Digital Appliances Business: Executive vice president Hong Chang-wan  Digital Imaging Business: Executive vice President Chung Hyun-ho(newly appointed) Regional Directors  North America: Executive vice President Kim Yangkyu (appointed)  Central and South America: Executive vice President Yoo Doo-yeong  Europe: Executive Director Kim Seok (newly appointed) (former Middle East supervisor, Director Kim Jin-an) CIS: Executive Director Seo Chi-won  Middle East: Executive Director Bae Gyeong-Tae  Africa: Executive Director Park Gwang-gi  Southeast Asia: Executive vice President Lee Jong-Seok  China: Executive Director Kim Yeong-Ha (newly appointed)  Korea: Executive Director Park Jae-Soon

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3.2. Company Products:

Samsung electronics is manufacturers and exporters in environment solutions, Information solution as well as home solutions and communications.     Entertainment solutions: TV, DVD Player, Camcorder, Audio Home Theater, Digital Audio Player, Digital Still Camera. Information solutions: Note PC, HDD, CD/DVD ROM CD/DVD Writer, Monitors, and Laser Printers & Laser Based MFPs Fax. Home solutions: Microwave Oven, Refrigerator, Air Conditioner, Washing Machine. Communication solutions: GSM, CDMA.

Upon its 40th anniversary, Samsung Electronics adopted a new vision of becoming an innovative leader that creates new markets to keep pace with the fast changing global business environment

Semiconductors(DRAM) For more than 20 years since 1993, Samsung has kept the title of the worlds largest memory chip maker. In 2009, it began a strategy of Green Memory by which it increased the global DRAM market share to 33 percent. It also started mass-producing 30 nm-classes NAND flash memories in the same year whose world share rose as high as 42 percent. It succeeded in 2010 in mass-producing 30 nm-class DRAMs and 20 nmclass NAND flashes, both of which were the first time in the world. According to market research firm Gartner, during the second quarter of 2010 Samsung Electronics took the top position in the DRAM segment due to brisk sales of the item on the world market. Gartner analysts said in their report, Samsung cemented its leading position by taking a 35percent market share.

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All the other suppliers had minimal change in their shares. Samsung took the top slot in the ranking, followed by Hynix, Elpida, and Micron, said Gartner. Another market researcher IC Insights predicted that Samsung would become the worlds biggest semiconductor chip supplier by 2014 when it surpasses Intel. For the ten-year period from 1999 to 2009, Samsungs compound annual growth rate (or CAGR) has been 13.5 percent, compared with that for Intel paltry 3.4 percent. Extrapolating this trend to the future, Samsung will be able to catch up with Intel by the year 2014, estimated IC Insights. IC Insights also said that Intels 2009 sales revenue had been 52 percent higher than that for Samsung, but that differential narrowed to only 21 percent during the second quarter of 2010 another hitherto not-well-publicized area where Samsung had significant business in for years is the foundry segment. Samsung had begun investment in the foundry business since 2006 and now positioned it as one of the strategic pillars for semiconductor growth.  Televisions Four years in a row, Samsung has taken the top spot in the world TV market, with the launch of best-selling items. In 2009, it sold as many as 31 million flat-panel TVs, maintaining the top position for four consecutive years in terms of world market share In early 2010, the company had set the years sales goal at 39 million units (including 10-million LED TVs). According to Display Search, the U.S. market research and consulting firm, Samsung is forecast to take a 27-percent share for the global TV market in the second quarter of 2010 while LG Electronics accounts for 26.2 percent of the market. The market researcher predicted that Samsungs leadership would continue in 2011 Samsung Electronics is creating a new market by introducing the FingerSlim LED TV. Launched in March 2009, the super-slim LED TV has thus far been sold as many as 2.6 million units. In 2009 alone, it was sold more than 2 million units, which brightens the future prospect. Samsung has led the flat-panel TV market for the past five years with the 2006 introduction of its Bordeaux line, followed by the 2007 Bordeaux model, the 2008 Crystal Rose line, and the Finger-Slim in 2009. The company retained

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the leading position by successfully selling more than 1 million 3D TVs as of August 2010. As rivals are jumping on the bandwagon, Samsung outstrips them by consistently introducing new, better models. Today the company offers the full line of TVs, at many price points. This company is developing new LED TV models too. After expanding its TV line-ups, Samsung became the industry-first 10-million-seller challenge. One of the new products to watch is the full HD 3D LED TV that was launched the first time in March 2010. Combining LED features with 3D functionality, the new 3D TV is expected to lead the market for years to come. Samsung showcased the new TV in the International Consumer Electronics Show (CES 2010) held in Las Vegas early this year. In 2009, Samsung TVs were selected in major U.K. publications and retailers as the best TV of the year. For example, Samsungs LED TV 7000 series was the winner of the Gadget Awards 2009 by T3, U.K.s most prestigious electronics magazine. The T3 magazine in its news article on ten reasons why you should buy Samsung LED TV listed as the reasons superior picture quality, slim design, energy efficiency and connectivity.

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3D experience Samsung sold more than 1 million 3D TVs within six months of its launch. This is the figure close to what many market researchers forecast for the years worldwide 3D TV sales (1.23 million units). It also debuted the 3D Home Theater (HT-C6950W) that allows the user to enjoy 3D image and surround sound at the same time. With the launch of 3D Home Theater, Samsung became the first company in the industry to have the full line of 3D offerings, including 3D TV, 3D Blu-ray play, 3D content, and 3D glasses. The company is trying offer the 3D content streaming service on its 3D TVs. Just like iTunes store, the Samsung 3D TV aims to allow the user to connect to its own online store, Samsung Apps, and download applications on the users hard disk drive.

Mobile phones Samsung Electronics sold 235 million mobile handsets in the year 2009. At the end of Q3 2010 Samsung had surpassed the 70 million unit mark in shipped phones, giving it a global market share of 22% trailing Nokia by 12%. Overall, Samsung sold 280 million mobile phones in 2010, corresponding to a market share of 20.2%. Following the success of its Anycall brand mobile phones in Korea, the company introduced numerous mobile handset models including premium phones, full-touch screen phones, and environmentally friendly phones. Samsungs flagship mobile handset line is the Galaxy S, which many consider a direct competitor of Apple's popular iPhone. It was initially launched in Singapore, Malaysia and South Korea in June 2010. Followed by US variants called Vibrant and Captivate in July and Epic and Fascinate in August and September. It sold more than 1 million units within the first 45 days of in the US alone. Samsungs I9000 Galaxy S and S8500 Wave smartphones were the winners of the 2010 European EISA Awards in the smartphone and social media phone categories. The I9000 Galaxy S was recognized for its superior-quality screen and excellent connectivity while the S8500 Wave for its Bada operating system with unparalleled social networking and location-based services. Samsungs 2010 smartphone shares worldwide

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are rising rapidly. The share in the United States has doubled in the second quarter of the year from the previous quarter. In the second quarter the company shipped as many as 3 million smartphones, a 173percent increase from the same period last year. While many other handset makers tend to focus on supporting one (or at most two) operating system, Samsung has kept supporting a wide range of operating systems in the market. Although the Galaxy S adopts Google Android as the primary operating system, it also supports other competing operating systems such as Symbian, Microsoft Windows Phone, Linux-based LiMo, and Samsungs proprietary Bada. The company set the sales goal of the 2010 yearend at 20 million units. Samsung faces challenges in the phone market. An alliance of Chinese low wage and Taiwanese technology is catching up closely. Smartphone makers such as Apple, RIM, and HTC are busy coming up with new models, and Samsung is working to maintain its top position.

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Home appliances In 2009, the year of worldwide recession due to the 2008 global credit crisis, Samsungs sales revenue rose 27 percent from the previous year, the biggest increase in the industry. In the home market, Samsung held the leading position thanks to strong sales of its flagship items, Zipel-brand side-by-side and kimchi refrigerators. In the North American, European, and Russian markets, it solidified its image as a premier home appliance maker by selling so many refrigerators, washing machines, airconditioners, as well as new steam microwave ovens and robot vacuum cleaners.

In a market clearly split into two extremes of upmarket and budget categories, Samsung employs a two-pronged strategy to emphasize its premium image for affluent consumers while marketing lower-end items with fewer bells and whistles for emerging economies consumers.

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Other Products In 2009, Samsung introduced a host of new products including a premium mini-laptop computer N310 and slim-sized laptop X420. The N310 and the X420 are the third-generation laptops with all the advanced features as well as portability and connectivity. Thanks to these new market entrants, Samsung could sell as many as 6 million laptops for the year. In the printer business division, one of the next-generation strategic areas, Samsung launched mono-laser printer, multifunction printer, and enterprise-use high-speed digital multifunction printer models. Samsung was ranked second in the world in the area of letter-size (A4) laser printers. In other segments such as mono-laser printers, multifunction printers, and colour laser printers, Samsung was first or second place in the world. In the laser multifunction printer segment, it became No. 1 the first time in its history, all of which indicates that Samsung is growing fast in the printer business despite under the condition of severe economic recession. In 2010, Samsung introduced many new products boasting energy efficiency and eco-friendliness, including the premium laptop R580, netbook N210, the worlds smallest mono-laser printer ML-1660, and colour laser multifunction printer CLX-3185. In the area of wireless networking, the mobile telecom protocols such as Mobile WiMax and WiBro, the protocols developed by Samsung and adopted in 2007 as international standards, are in wide commercial use in many overseas markets. Since mobile telecom service providers in the United States, Japan, and Russia began deploying the standards, more and more providers (as many as 139 providers in 75 countries) are readying to take it up. Digital cameras and camcorders are the areas Samsung cannot overlook. The company has introduced several models in these areas such as the WB550 (the premium camera), the ST550 (the dual-LCD-mounted camera), and the HMX-H106 (64GB SSD-mounted full HD camcorder). Samsung in 2009 took the third place in the compact camera segment. Since then, the company has focused more on high-priced items. In 2010, the company launched the NX10, the next-generation interchangeable

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lens camera, thereby commencing the race toward the new category of camera market. In the area of storage media, Samsung in 2009 succeeded in grabbing more than 10 percent of the world market share by introducing a new hard disk drive capable of storing 250Gb per 2.5-inch disk. In 2010, the company started marketing the 320Gb-per-disk HDD, the largest in the industry. In addition, it is focusing more on selling external hard disk drives. In the MP3 player segment, Samsung is doing quite well. It is launching a host of new products including the M1, the premium MP3 player model, and the worlds smallest DivX MP3 player R1.

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3.3. FUTURE STRATEGIC MANAGEMENT PLANNING OF SAMSUNG ELECTRONICS

Samsung Electronics Aims at Top 10 Global Company by 2020

Samsung Electronics announced a plan at the 40th anniversary of the company's foundation to become one of the world's top 10 enterprises by 2020 through creative innovation. Under the new vision Inspire the World, Create the Future, Samsung is determined to produce new technologies, innovative products and creative solutions, so enhancing people's quality of life and contributing to global prosperity for years to come. The electronics giant pledged to record US$400 billion of sales, become an unrivalled industry leader, and belong among the top 10 global companies by 2020. It also declared to rank worlds' 5th in brand value (Samsung ranked 19th in the Best Brand Survey 2009 by Interbrand), become among the world's top 10 respected companies, and transform to become a toptier environment-friendly enterprise by then. To realize these goals, Samsung Electronics will expand its business to include medical, bio, environment and energy sectors, which are related to the enhancement of quality of life, said the company. The company laid out six strategies to achieve these goals. y First, it will foster its number one position in the markets of memory chips, LCDs, TVs and mobile phones while strengthening six other industries including those of home appliances, computers and printers. y Second, it will blaze a trail in the new fields of bio chips, medical appliances, u-health service and solar cells manufacturing in order to meet expanding needs of customers. y Third, it will further strengthen the analysis of customer groups and lifestyles, so facilitating the application of diversified marketing strategies.

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Fourth, it will pursue an "open innovation," through which outward assistance is welcomed, R&D partnerships are reinforced, and various collaboration channels with other organizations will be established.

Fifth, it will build mature symbiotic relationship with its collaborators, strengthen its corporate social responsibility and seek after environment-friendly business management.

Last, it will cultivate a sound work environment by employing a creative performance evaluation system and an advanced personnel management.

At the 30th anniversary of foundation in 1999, the company declared that it would within 10 years record 100 trillion won of sales and become among the three biggest IT companies. The goals have been successfully achieved. Meanwhile, at the 40th anniversary were present about 400 employees including previous CEOs and ranking officials. Vice Chairman Lee Yoonwoo said during the commemorative speech that Samsung Electronics should step up its efforts to produce differentiated products and create an advanced value chain should it want to secure a dominant position in the industry by 2020. Samsung should actively join the international trend to protect the environment and seek harmony between human and nature, he added. Video messages of congratulations from such international celebrities as President of the International Olympic Committee Jacque Rogge, former New York City Mayor Rudolph Giuliani and star figure skater Kim Yu-na added to the amusement at the celebration.

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3.4 DIRECTORS SPEECH

Gee-Sung Choi Gee-Sung Choi, the newly appointed CEO, has been a member of the company's Board of Directors since March 2009. Having served Samsung for more than three decades, Mr. Choi was appointed President of the Digital Media & Communications Business in January 2009. He previously held the position of President of the Telecommunication Network Business from January 2007, helping Samsung to grow its market share to become the world's second-largest mobile phone maker. He also played a key role in developing the company's Visual Display Division from 1998, and was appointed President of the Digital Media Business in 2003. Under his leadership, Samsung became the global market share leader in both monitors and televisions. Mr. Choi began his career at Samsung C&T's International Trade Division in 1977. He holds a degree in International Trade from Seoul National University.

It is a great honor and pleasure for me to meet and speak to you in this online space. I would like to take this opportunity to reaffirm Samsung Electronics commitment to its guiding principles -- providing new value to our customers, and shareholders, and realizing a richer and more vibrant future for communities around the world. Samsung's commitment remains steadfast even in the face of the turbulent business conditions we witness today. Samsung is now making bold investments in technology development and innovative products and services to bring this future one step closer to reality. Upon announcing Vision 2020 last year we strengthened our global competitiveness which allowed us to post the highest sales and profits and
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become an undisputed leader in electronics. Our steady ascent in brand value has placed us shoulder to shoulder with the most trusted global companies. This remarkable accomplishment could not have been possible without your strong interest and support, and for this, I would like to thank you deeply on behalf of everyone at Samsung. We look forward to many more years of doing our best to serve you as our customers, shareholders, and stakeholders. 2009 was also special for Samsung as it marked the 40th anniversary of the company's founding, as well as for the announcement of a new vision: "Inspire the World, Create the Future." Through this vision, Samsung is charging towards $400 billion in revenue in 2020. Everyone at Samsung is working hard to realize this goal. Samsung is dedicated to being a globally respected company and a trusted corporate citizen-- one that delivers new value through continuous innovation, and that fulfills its responsibility to the communities and stakeholders that have enabled it to succeed. I hope we can count on your continuous support and encouragement in the future.

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4.0 CONCLUSION & RECOMMENDATIONS

4.1. Conclusion
The main aim or the goal of this project is to be familiar about the functionality of the company Samsung Electronics, which is one of the leading companies in its field. Moreover, the study also focuses on some other factors such as to know the stratergy of the company as well as to understand the strategic management of the company. The primary aim behind the visit to the company was to practically observe the working and functioning of the company. This study involves a lot of co-operation and hardwork from all the team members in order to showcase the strategic management process.

4.2 Recommendations
Three future strategies for continued success for SEC are given below.

Diversify Growth Strategy for Emerging Markets Most emerging market competitors are imitators and SECs current strategy of organic growth and strategic alliances is not very effective because mutual benefit is unlikely to occur. Therefore, SEC should focus on seeking out and acquiring resources in emerging markets. This would be applicable as it would provide immediate market presence and the essential deep local knowledge to effectively compete. Mergers are not recommended as they too are unlikely to provide sufficient benefit to SEC who through acquisitions could fully own their own operations. This diversification in growth strategy would allow SEC to expand their global presence as well as employ a greater diversity of people, ultimately moving SEC towards their corporate vision of Leading the Digital Convergence Revolution. Continue Heavy R&D and Innovation Continued investment in R&D especially in newer technologies such as OLED and nanotechnology will allow SEC to widen the cost leadership and differentiation gap meaning that they can produce more differentiated

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products at lower costs. SEC should aim to be the first to launch products at a premium price to maximise profits and continue innovating to ensure firstmover advantage is maintained. This will also allow SEC to create new markets and thus employ a more focused differentiation strategy so that price premiums can be charged. This is especially important in the current economic climate where margins are restricted. Producing and promoting more environmentally friendly products should be made an important part of future innovation and R&D to adapt to changes in social and environmental consciousness of customers. This change however should be driven from SEC being an organisation that is environmentally and socially conscious in the way it conducts business so that the brand itself reflects customer preferences. It is also recommended that SEC innovate internally and further invest in cutting edge IT resources to streamline processes and effectiveness. This will allow SEC to further reduce costs and increase competitive advantage.

Enhance Brand Loyalty Retaining customers for longer by enhancing customer loyalty schemes will help increase switching costs and therefore reduce the costs of customer acquisition and reduce the complications of hypercompetitive environments. This should include both domestic and business to business buyers. SEC should also continue to highlight the quality and unique selling points of products in marketing campaigns to ensure consumers feel products are value for money even at a premium costs.

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