TMAN 680 Fall 2012
Balanced Scorecard: Samsung
Samsung is the technology-based organization that will be the subject for my Balanced Scorecard. Founded in 1938 in Seoul, South Korea, Samsung Electronics Co. Ltd. engages in the manufacture, distribution, and sale of finished electronic products and device solutions worldwide. They offer consumer products, including mobile phones, tablets, televisions, Blu-rays, DVD players, home theaters, multimedia players; home appliances, such as refrigerators, washing machines, air conditioners, etc; Laptops and personal computers. The company also designs and manufactures integrated circuits for digital information storage in consumer electronics. It has operations in Korea, U.S., Europe, Asia, Africa, Africa and China. Because of the large size of the Samsung Corporation, I will focus on Samsung smartphones, one of their technology-intensive business units. The vision of Samsung: “Samsung is dedicated to developing innovative technologies and efficient processes that create new markets, enrich people's lives, and continue to make Samsung a digital leader.” Their mission statement, “At Samsung, we follow a simple business philosophy: to devote our talent and technology to creating superior products and services that contribute to a better global society.
Samsung’s net sales have risen from 158.9 billion in 2007 to 220.1 billion in 2011. Their total assets grew from 280.8 billion in 2007 to 343.7 billion in 2011. Unfortunately their total liabilities went from 181.7 billion in 2007 to 202.6 billion in 2011. Stockholder’s equity almost doubled from 80.8 billion in 2007 to 141.1 billion in 2011. Samsung’s net income also increased from 12.9 billion in 2007 to 21.2 billion in 2011. It’s also not strange to see their employee base increase due to their explosive growth over this five-year time span. They had 254,000 employees in 2007 and now have over 344,000 employees in 2011 ("About Samsung," 2010). Their electronics division has 190,500 employees at the end of 2011. With respect to the Smartphone business unit out of the 1.5 billion mobile phones sold worldwide in 2011, Samsung accounted for 330 million of those units. Their Galaxy S II sold more than 20 million units since its launch in 2011. In 2012, Samsung launched the Galaxy S III and expects to strengthen their brand and increase market share in the mobile phone arena ("About Samsung," 2010). The balanced scorecard is defined as a management system that maps an organization’s strategic objectives into performance metrics in four perspectives: financial, internal processes, customers, and learning and growth (NetMBA, 2002). The four perspectives mentioned above construct the balanced scorecard framework. To create a balanced scorecard for Samsung’s Smartphone business division this framework has to be applied. First, I will assess the mission, vision, challenges, and partners of the company. The vision of Samsung: “Samsung is dedicated to developing innovative technologies and efficient processes that create new markets, enrich people's lives, and continue to make Samsung a digital leader.” Their mission statement, “At Samsung, we follow a simple business philosophy: to devote our talent and technology to creating superior products and services that contribute to a better global society. Samsung not only makes smartphones, but they also create components like displays and integrated circuits that also go into competitor’s smartphones, such as Apple’s iPhone. Samsung’s competitors in the mobile phone market are Apple, Microsoft, Google, HTC, Nokia, and Blackberry. Samsung doesn’t make their own proprietary software and hardware as Apple, Google, and Blackberry. Samsung exclusively uses Google’s Android Mobile OS for their phones. Another challenge Samsung faces, is that their mobile phones are not only in competition with other phones that have different software platforms, but they are in even stiffer competition...