Samsung Electronics Co. Case Study

1. Introduction

Samsung Electronics Co., Ltd or the company, a piece of the Samsung group, is one of the main customer gadgets brands in the global. Samsung company operates four main partitions included Digital media, semiconductors, information and communication, and home appliances (Referenceforbusiness.com, 2015). This assignment will focus on the decision making and customer management of the Samsung Electronics Company and four types of the business which are product costing, cost management.

Management accounting is the procedure of identification, measurement, increase, analysis, preparation, clarification and communication of the data and information utilized by the management to arrange, assess and control and responsibility for its economic. Other than that, management accounting is utilized as a part of four management capacity which are decision making, planning, coordinating operational activities and controlling.

According to this assignment will give the Samsung Electronics profile. Based on the assessment is about first to study the SWOT analysis which are strength, weakness, opportunity, and treats. While external environment analysis will be concentrate on PEST of Samsung Electronics Company which are political, economic, social, and technology. Secondly, to identify the management accounting techniques which are decision making and customer management of Samsung Electronics Company. Recommendations for task 2 will be provided. At the end of the assessment, concluding remarks will be made.

(Source: http://www.referenceforbusiness.com/history2/16/Samsung-Electronics-Co-Ltd.html)

1. Samsung Electronics Company’s Profile

1. Vision of Samsung Electronics Company

Vision 2020 “As stated in its new motto, Samsung Electronics’ vision for the new decade is, “Inspire the World, Create the Future” (Samsung.com, 2015).

1. Mission of Samsung Electronics Company

The company mission is “To inspire the world with innovative technologies, products and designs that enrich. People’s lives and contribute to a socially responsible, sustainable future” (Samsung.com, 2015).

1. Establishment

Samsung Electronics is an Electronics Samson and it is a multinational company was establish on 1938 and founded in Daegu, Korea (Samsung.com, 2015). The main headquartered in Gyeonggi-dox, South Korea and operates in Asia, Europe, North and South America. Samsung Electronics is one of the world’s largest semiconductor manufacturers (Samsung Electronics Co., 2015). In 1970s, Samsung invested intensely, acquired and urged innovation from foreign rivalry, and drew on its business and political associations with begin model out a specialty in the customer electronic industry.  

1. Organization of the Samsung Company

VICE CHAIRMAN OF SAMSUNG[pic 3]

[pic 4]

On June 8, 2012, DR. Oh Hyun Kwon was appointed by the board of directors of Samsung electronics co, as the CEO (chief executive officer). As Supervise the organization as a CEO, He also led the Samsung Electronics, Device Solutions Division, which includes of the three component businesses: Memory, System LSI and LED. He effectively drove the improvement of the business' initial 64Mb DRAM in 1992 and was elevated to Vice President of Samsung's Memory Device Technology unit three years after the fact. In 1998, Dr. Kwon was named Senior Vice President and head of System LSI Division's ASIC business. In 2000, he got to be Executive Vice President and head of LSI Technology. In January of 2004, Dr. Kwon was delegated President and General Manager of the System LSI Division. In May of 2008, Dr. Kwon was named President of Semiconductor Business (now Device Solutions). In December of 2011, he was elevated to Vice Chairman of Samsung Electronics.

1. Product Segment

    There is 4 segment giving operating profit for Samsung, which is CE (Consumer Electronics), IM (Information technology & Mobile Communications), Semiconductor and DP (Display products). The evidence was attached in Appendix 1 and 2.  

1. CE (Consumer Electronics)

From Digital Media and Appliances has changed names to Consumer Electronics. The most of share are from Televisions additionally incorporates shopper gadgets and machines. Consumer Electronics contain LED TV and Digital appliances like air conditioners. In 2014, 5% of revenue is from CE. Samsung dependably create and extend strategic products in our Consumer Electronics division. Since, Samsung first won top worldwide piece of the overall industry in 2006, extraordinary innovation and imaginative outline have strengthened Samsung unequaled authority in level board TVs and screens.

(Source:http://www.samsung.com/uk/aboutsamsung/samsungelectronics/businessArea/businessarea.html)

1. IM (Information technology & Mobile Communications)

         Mobile Division works in a standout amongst the most focused markets of the world. As per the US Federal Communication Commission 67 new Smartphone gadgets are presented each year. Samsung generally had a conventional picture that concentrated on low-value items for the lower end of the business sector. With low costs it could contend in the lower-business sector while in the upper business sector it had lesser entrance. The IM Segment gives the largest operating profit for Samsung which covers up 58% revenue of Samsung.

(Source:http://www.samsung.com/common/aboutsamsung/download/companyreports/2014_E.pdf)

1. Semiconductor

This contain all memory product as well as systems for example CPU’s. Through forceful business methodologies and predictable ventures, Samsung accomplished and has kept up its business sector administration position in memory industry since 1993.  Semiconductor covers up 35% second higher revenue percentage in Samsung.

1. Display Products

Display Products used to be called as “LCD” but has been re-named. This segment having the least of revenue percentage which is 2%.The company also manufactures and semiconductor combines electronic group called DS (Device solutions) and CE and IM to DMC (Digital Media and Communications).

1. Market Segment

There are 5 regional segments for Samsung to market and sell their products to gain revenue, which are Korea, America, Europe, Asia and Africa and China. As refer to company reports 2014 it states that America giving high net segment revenue compare to other countries. The entire regional segment shows decline graph if compare to 2013 revenues. This is might because currently there is a lot of competitor which can give same function of each product and with cheaper price for example Lenovo. Even though there is a lot of same products are competing with Samsung, Samsung always give the best quality from other products in market. As we know the most revenue we having is in IM (Information technology & Mobile Communications) segment compare to other segments. The most revenue is made by smartphones. The evidence was attached in Appendix 3 and 4.