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Introduction:

Samsung Electronics, which was founded in 1969, is the largest part of the Samsung Group, and is one of the world's biggest electronics companies. Founded in Daegu, South Korea, Samsung Electronics operations in about 58 countries and has around 208,000 employees. Samsung Electronics is considered one of the world's 10 best labels. The company is one of four companies in Asia, including Japan, with a market capitalization of up to U.S. $ 100 billion.

Samsung Group includes many Korean businesses, including Samsung Electronics and Samsung Insurance. The current president is Lee Kun-hee.

In 1990, Samsung emerged as a multidisciplinary international group. Subsidiary of construction company Samsung has been the big prize for building one of the two Petronas Twin Towers (Malaysia) in September 1993, and the Burj Dubai in 2004, the tallest building in the world.

And now, we begin to learn about the financial situation and control of Samsung electronics.

Source: http://vi.wikipedia.org/wiki/T%E1%BA%ADp_%C4%91o%C3%A0n_Samsung

Task 3:

3.1 Financial planning process

3.2 Factors influencing the decision-making process such as cash and working capital management, budgetary planning and the types of budgets that the company can use

* Cash and working capital management:

Working capital management is a managerial accounting strategy focusing on maintaining efficient levels of both components of working capital, current assets and current liabilities, in respect to each other. Working capital management ensures a company has sufficient cash flow in order to meet its short-term debt obligations and operating expenses. Implementing an effective working capital management system is an excellent way for many companies to improve their earnings. The two main aspects of working capital management are ratio analysis and management of individual components of working capital.

A few key performance ratios of a working capital management system are the working capital ratio, inventory turnover and the collection ratio. Ratio analysis will lead management to identify areas of focus such as inventory management, cash management, accounts receivable and payable management.

Working capital management includes:

* Capital assets: Permanent items of long term use to a business such as land, premises and equipment.

* Capital expenditure: outgoings or non-consumable items of long term, permanent use to a firm – plant, equipment and machinery, as examples.

* Capital expenditure budget: statement of estimated expenditure on capital items over a specified period of time, normally 12 months. Often a straightforward enough budget to compile, and easy to overlook during monitoring procedures

Cash is also the factor influencing the decision-making process, it includes:

* Cash budget: statement of a firm’s cash inflows and out flows over a specific period of time.

* Cash flow: term use to describe the process of monies coming into and going out of a business as it trades.

Source: http://www.investopedia.com/terms/w/workingcapitalmanagement.asp#axzz2JOjCV4ZV Budgeting for non – financial managers’ book

* Budget planning

Budget planning is the process by which a company or individuals evaluate their earnings and expenses and project their monetary intakes and outakes for the future. The goal is to lay out all necessary components and brainstorm future goals. Budget planning may be completed in one meeting or it may take weeks of evaluating available data to finalize.

The types of budgets that company can use:

- Sales Budget - The sales budget is an estimate of future sales, often broken down into both units and dollars. It is used to create company sales goals. - Production Budget - Product oriented companies create a production budget. It is an estimate of the number of units that must be manufactured in order to meet the sales goals. The production...
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