Samsung Group

Topics: Samsung Group, Strategic management, Chaebol Pages: 6 (1961 words) Published: April 19, 2013


This document tends to review and analyze the strategic stance of Samsung Electronics, Co. Ltd using the tools of strategic analysis and business policy.

amsung Electronics Co., Ltd is one of the world’s largest technology companies in terms of revenues. It is the largest mobile phone maker and television manufacturer and second largest semiconductor chip producer. Samsung Electronics trades worldwide and has its headquarters in South Korea. It is one of the many subsidiaries of the Samsung Group. The name “Samsung” according to the founder of the group Lee Byung Chull a migrant of a large land owning family in Uiryeong county to a city called Daegu where he founded Samsung Sanghoe explained that it means “tristars” or “three stars”; the word “three” represents something big, numerous and powerful. The “stars” represent “eternity”. Samsung has undergone lots transformation before being the giant Samsung it is today and it has proven to withstand the test of time where most Asian companies have dissolved during the Asian financial crisis. A brief on Samsung’s background would take us back into the late 30’s in 1938 when Samsung was just a company store with 40 employees in a small area called Sudong now called Ingyo-dong. It dealt with green groceries and dried fish produced within the area. It also produced its own noodles. In 1948, Cho Hong-jai (the Hyosung group’s founder) jointly invested in a new company called Samsung Mulsan Gongsa or the Samsung Trading Corporation, with the Samsung Group founder Lee Byung-Chull. The trading firm grew to become the present-day Samsung C&T Corporation. But after some years Cho and Lee separated due to differences in management between them. He wanted to get up to a 30% group share. After settlement, Samsung Group was separated into Samsung Group and Hyosung Group, Hankook Tire, and others. In the late 1960s, Samsung Group entered into the electronics industry. It formed several electronics-related divisions, such as Samsung Electronics Devices Co., Samsung Electro-Mechanics Co., Samsung Corning Co., and Samsung Semiconductor & Telecommunications Co., and made the facility in Suwon. Its first product was a black-and-white television set. In the 50’s, when the Korean War broke out; Lee was forced to leave Seoul and start a sugar refinery in Busan[->1] named Cheil Jedang[->2]. After the war, in 1954, Lee founded Cheil Mojik and built the plant in Chimsan-dong, Daegu. It was the largest woollen mill ever in the country and the company took on the aspect of a major company. After the founder's death in 1987, Samsung Group was separated into four business groups – Samsung Group, Shinsegae Group, CJ Group and Hansol Group. Shinsegae (discount store, department store) was originally part of Samsung Group, separated in the 1990s from the Samsung Group along with CJ Group (Food/Chemicals/Entertainment/logistics) and the Hansol Group (Paper/Telecom). Today these separated groups are independent and they are not part of or connected to the Samsung Group. In the 1980s, Samsung Electronics began to invest heavily in research and development, investments that were pivotal in pushing the company to the forefront of the global electronics industry. In 1982, it built a television assembly plant in Portugal; in 1984, a plant in New York; in 1985, a plant in Tokyo; in 1987, a facility in England[->3]; and another facility in Austin[->4] in 1996. As of 2012, Samsung has invested more than US$[->5]13 billion in the Austin facility, which operates under the name Samsung Austin Semiconductor LLC. This makes the Austin location the largest foreign investment in Texas[->6] and one of the largest single foreign investments[->7]. Our main concentration on this paper is Samsung Electronics which we would introduce later. METHODOLOGY

Our main purpose in this section is to declare what kind of tools we are going...
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