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 1 | Page
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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
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2. To gain familiarity with a phenomenon or to achieve new insights into it
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 firms 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.
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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Org
Organic Growth
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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.
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
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(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 win-
win 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.
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:
Performing a situation analysis, self-evaluation and competitor analysis:
both internal and external; both micro-environmental and macro-
environmental.
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
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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.
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).
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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:
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
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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.
Samsung’s 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
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.
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.
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):
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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".
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
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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,
are rising rapidly. The share in the United States has doubled in the
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second quarter of the year from the previous quarter. In the second
quarter the company shipped as many as 3 million smartphones, a 173-
percent 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 Samsung’s 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, Samsung’s 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, air-
conditioners, 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 world’s 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 world’s 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 top-tier 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.
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.
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.
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 Yoon-
woo 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.
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“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
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,
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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.”
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.
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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 SEC’s 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
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 first-
mover 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
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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