Samsung's Balanced Scorecard

Topics: Marketing, Customer service, Management Pages: 13 (3589 words) Published: April 25, 2015
STRATEGIC MANAGEMENT
ACCOUNTING
Samsung Electronics Ltd. (Balanced Scorecard
Analysis)
Compiled by:
Bernardus Alan Handoko
Aya Putri Argatika
Reza Mediar
Novi Prastia

11/311392/EK/18212
11/320288/EK/18685
11/320298/EK/18695
11/320299/EK/18696

SAMSUNG’s Products

Curved UHD TV

Samsung Galaxy S5

Samsung Gear Fit

Samsung Galaxy Note PRO

Samsung SCX-3406FW

STRATEGIC MANAGEMENT ACCOUNTING – MAY 2014

1

Financial Perspective
Samsung’s financial perspective emphasizes the stakeholder concern about how efficient and effective the unit is at using its resources. Its balanced scorecard in the financial perspective serves one objective which is Maximize Return to Shareholders.



Maximize Return to Shareholders
The Company will actively pursue increases in investment return for shareholders by maximizing profits through transparent and sound management. The Company will honor its responsibility to shareholders and interested parties by announcing major financial and corporate information in good faith and in a timely fashion. The Company will accept and sincerely consider legitimate petitions from external shareholders

In increasing the shareholder value, Samsung tends to improve its productivity and revenue growth: 

High Earnings Results by Strengthening Competitiveness
Recently, we often heard about Samsung product including Mobile phone, Televisions, Camera, Refrigerators, and so on. By developing and expanding market leadership through electronic products such as Mobile phones, Televisions, and so on, Samsung reaches enhancement in revenue. In 2013, we delivered record sales of KRW 229 trillion, up 14% from the previous year, and both operating profit and net profit increased by 27% and 28%, respectively, over the year to KRW 37 trillion and KRW 30 trillion.



Developing Key Competitive Advantages
Samsung is currently focusing effort in developing key competitive advantages such as technology and brand image, and expanding a foundation for a new growth engines. Amid revolutionary changes recently seen in the IT industry, Samsung focused efforts to enhance the R&D capabilities by increasing R&D personnel and revamping the organization structure. It expanded partnership with external research institutions by establishing an open innovation system, newly built internal research centers including SofTech and Big Data Center to strengthen the software capabilities, and also plan to open a material and future technology R&D center going forward. To expand the base for future growth engines, Samsung is focusing its resources and competencies onto not only existing medical devices, LED, and B2B businesses, but also on Smart Home, mobile health, and other life-care areas, which could improve quality of life.



Increasing Profitability
Currently, Samsung tends to increase profitability through enhanced business competitiveness and sound business management. Not only that, Samsung also tries to solidifying its leadership in IT business. In addition, Samsung also willing to improve efficiency of the company-wide resource management including investment and continue efforts to enhance our global SCM capability.

STRATEGIC MANAGEMENT ACCOUNTING – MAY 2014

2



Risk Management Capability and Future Competitiveness for Sustainable Growth For a company to continue its growth momentum in the mid to longer term, the key is to have an ability to make prompt response to uncertainties and risks in the business environment. Samsung takes preventive measures. Samsung also participates in making social contribution to local communities as well as enhance communication with stakeholders.

In order to achieve those objectives, Samsung is using several measures: 

Leading – Internal Rate of Return
One of the uses of IRR is to compare capital projects. Suppose that Samsung is willing to invest in a new plant project. The choice is whether Samsung invest in a new plant project...
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