Samsung Company's Organizational Structure And International Market Penetration Strategy.pdf

lOMoARcPSD|38146348 MINISTRY OF EDUCATION AND TRAINNING HO CHI MINH CITY UNIVERSITY OF ECONOMICS AND FINANCE FACULTY OF ECONOMIC ACADEMIC REPORT SAMSUNG COMPANY'S ORGANIZATIONAL STRUCTURE AND INTERNATIONAL MARKET PENETRATION STRATEGY Lecturer: Mr Nhan Cam Tri Major: International Business Management Class: 231.MGT1111E.A01E Group: 01 Student: Truong Le Yen Linh Nguyen Trung Dung Nguyen Ba Quang Nguyen Hoang Quan Nguyen Cong Danh Nguyen Thi Thanh Quyen Le Minh Quan Do Ngoc Hoang Minh Hochiminh, October 15th 2023 Downloaded by van Nguyen (hacngocbachvan.1003@gmail.com) lOMoARcPSD|38146348 Full name Student ID Tasks % 215080293 contribution Nguyễn Bá Quang 215081923 - Present chap Trương Lê Yến Linh 205011965 - Preparing the to the Nguyễn Trung Dũng 215083640 content of chapter overall Nguyễn Hoàng Quân 215143015 - Preparing the result 215083357 content of chapter 100% Nguyễn Công Danh 215141484 - Preparing ppt 100% 215082152 - Preparing the 100% Lê Minh Quân content of chapter 100% - Preparing ppt Đỗ Ngọc - Present chap 100% Hoàng Minh - Preparing the Nguyễn Thị content of chapter 100% Thanh Quyên - Present chap - Preparing the 100% content of chapter - Synthesize word 100% content - Prepare the content of chapter - Preparing ppt - Present chap - Preparing the content of chapter - Synthesize word content - Preparing the content of chapter - Preparing ppt Downloaded by van Nguyen (hacngocbachvan.1003@gmail.com) lOMoARcPSD|38146348 Table of Contents I SAMSUNG’S BRIEF INTRODUCTION AND HISTORY OF FORMATION Brief introduction a Misson and approach b Mission and value History of formation of Samsung a History of formation b Viet Nam II ORGANIZATIONAL STRUCTURE OF SAMSUNG MULTINATIONAL CORPORATION 10 DIGITAL MEDIA AND COMMUNICATION 10 DEVICE SOLUTIONS .11 III MARKET PENESTATION STRATEGY 13 Transnational strategy 13 Global standardization strategy 17 IV ENTRY MODES 20 EXPORTING 20 JOINT VENTURES 23 WHOLLY OWNED SUBSIDIARIES 26 V REFERENCE SOURCE 31 Downloaded by van Nguyen (hacngocbachvan.1003@gmail.com) lOMoARcPSD|38146348 I SAMSUNG’S BRIEF INTRODUCTION AND HISTORY OF FORMATION Brief introduction Company Name: Samsung Electronics Co., Ltd Website: https://www.Samsung.com/ Fax: 02313696003 Logo: Samsung is an electronics company from South Korea and has become the largest technology company in the world by revenue since 2009 Samsung specializes in the production of a wide variety of consumer and industry electronics, including appliances, digital media devices, semiconductors, memory chips, and integrated systems It has become one of the most-recognizable names in technology and produces about a fifth of South Korea’s total exports Samsung currently operates many representative offices, product assembly factories and sales networks spread across 120 countries with a number of official employees reaching hundreds of thousands of people Pic 1.1: Lee Byung-chul (Founder and first-generation chairman of Samsung) Downloaded by van Nguyen (hacngocbachvan.1003@gmail.com) lOMoARcPSD|38146348 Pic 1.2: Samsung’s CEOs (Now) Pic 1.3: Samsung's market share In the information technology and electronics industry, Samsung is the manufacturer with a market share of 23.45%, second only to Apple with 41.99% Significant achievements In 2019, Samsung had the largest brand value in Asia, ranked 5th in the world Downloaded by van Nguyen (hacngocbachvan.1003@gmail.com) lOMoARcPSD|38146348 2020 is considered a successful year for Samsung when it topped the ranking of the 1,000 most loved brands in Asia, surpassing Toyota to become the most valuable brand in Asia; 5th globally (behind Google, Microsoft, Amazon and Apple.) Not only that, Samsung surpassed Apple to lead the smartphone market in the US in November In 2021, Samsung brand value is valued at approximately 102.6 billion USD and Samsung still holds 5th place globally In Vietnam, Samsung has up to production factories and revenue accounts for 1/5 of Vietnam's total export turnover in 2022, accounting for 1.15% of Vietnam's GDP Samsung currently operates many representative offices, product assembly factories and sales networks spread across 120 countries with a number of official employees reaching hundreds of thousands of people a Misson and approach Samsung follows a simple business philosophy: dedicate its talent and technology to create outstanding products and services that contribute to a better global society To achieve this, Samsung places great importance on its people and technology b Mission and value Our commitment is to operate responsibly as a leading company worldwide History of formation of Samsung a History of formation The period 1938-1969: Samsung was founded in 1938 by Lee Byung chul, a businessman and industrialist Coming from a chain of small stores and through many mergers Samsung changed its focus to electronic technology in the late 60s in 1969, Samsung Electric Industries was founded in Taegu, Korea The first product was BLACK AND WHITE TV The period 1970-1988: The company faced many difficulties such as in 1987, Lee Byung Chul passed away so Samsung split into corporations with separate fields: Samsung, Shinsegae, CJ and Hansol During this period Samsung has made efforts to implement many international strategies, thereby achieving certain achievements: Downloaded by van Nguyen (hacngocbachvan.1003@gmail.com) lOMoARcPSD|38146348 − In 1981, the company produced more than 10 million black-and-white televisions − In 1983, Samsung began to focus on DRAM production and became the third company in the world to develop 64Kb DRAM − In 1974, the company expanded its business by acquiring Korea Semiconductor, a chip manufacturing company − In 1980, Samsung acquired the Korean Telecom electronic switching system Pic 1.3: Early Samsung factory The period 1988-2000, Samsung changes in strategy, outlining a long-term plan − In 1988 Samsung released the first mobile phone in the Korean market and had difficulty in market share of the domestic mobile phone business due to competition with other competitors (Motorolla), product quality is still poor, − In 2000, Samsung started changing the strategy by postponing non - selling products, instead pursuing design, producing components and shifting into the consumer market and sponsoring big sports events As a way PR − In addition, a 10 -year plan to eliminate the image of "budget brand" and challenge with Sony a largest consumer electronic manufacturing company in the world Downloaded by van Nguyen (hacngocbachvan.1003@gmail.com) lOMoARcPSD|38146348 Pic 1.4: Samsung factory in the 2000s The period 2000-Present, being success in mobile business and chip production − In 2007, Samsung Electronics became the second largest mobile manufacturer in the world, surpassing Motorola for the first time − Samsung has emphasized the innovation strategy in the early 2000 management In 2009 when Samsung achieved US $ 117.4 billion revenue, becoming the largest technology company in the world according to sales − Samsung officially competes with technology firms in the production of electronic chips, semiconductors Also, during this period, Samsung focused on developing all fields including satellites and space and space exploration − With many breakthrough technology inventions, Samsung has become an expensive brand The largest global brand in Asia and third in the world (only after Google and Apple), … Downloaded by van Nguyen (hacngocbachvan.1003@gmail.com) lOMoARcPSD|38146348 Pic 1.5: Samsung Company today b Viet Nam In April 2009: Samsung Electronics Vietnam Project (SEV) is granted investment certificates and put into operation, located in Bac Ninh Industrial Park In 2014: Samsung Vietnam Electronics Project (SEVT) received an investment license to operate in Yen Binh Industrial Park, Thai Nguyen In 2016: Samsung CE Complex (Samsung Ce Complex) project of Samsung Vietnam is located in Saigon High -tech Park officially put into operation In 2017: Opening Executive Briefing Center - EBC and Samsung Ho Chi Minh Research & Development Center - Shrd Downloaded by van Nguyen (hacngocbachvan.1003@gmail.com) lOMoARcPSD|38146348 II ORGANIZATIONAL STRUCTURE OF SAMSUNG MULTINATIONAL CORPORATION Samsung Group is a South Korean multinational conglomerate, founded in 1938 by Lee Byung-chul The group operates in various sectors, including electronics, construction, shipbuilding, petrochemicals, financial services, retail, and entertainment The organizational structure of the Samsung group is a chaebol model in which subsidiaries are organized into groups according to their field of activity These groups are managed by the parent companies, which are responsible for the strategy and finances of the subsidiaries Samsung's organizational structure: Pic 2.1: Samsung's organizational structure: CEO: The responsibilities of the CEO or CEO of an organization are set by the organization's board of directors or other authority, depending on the legal structure of the organization DIGITAL MEDIA AND COMMUNICATION Digital communication is as its name implies: communication is carried out by and by digital technology Multimedia developers and managers use digital media methods to create a variety of entertainment, graphic design, and art products 10 Downloaded by van Nguyen (hacngocbachvan.1003@gmail.com) lOMoARcPSD|38146348 • Unified advertising campaign: Samsung deploys consistent advertising and marketing campaigns across many countries Brand image and advertising message are aligned to create a strong brand image • Uniform warranty policies: Samsung's warranty policies are applied consistently across international markets, helping users feel secure when purchasing products anywhere in the world SUMMARY: Samsung's goal when applying the Global Standardization strategy is to maximize production efficiency, increase consistency and take advantage of opportunities from the global market to maintain and expand its presence in the market international 19 Downloaded by van Nguyen (hacngocbachvan.1003@gmail.com) lOMoARcPSD|38146348 IV ENTRY MODES EXPORTING Exporting is often the first method firms use to enter foreign market The late 1960s and early 1970s marked the beginning of Samsung's significant involvement in international trade and export, including black-and- white televisions, computers, and refrigerators These exports play an important role in making Samsung a global brand in consumer electronics Over the decades, Samsung continued to expand its product portfolio and export operations across a variety of industries, including semiconductors, consumer electronics, home appliances, and mobile devices Samsung's global reach and export volume grew significantly, making it one of the world's largest and most recognizable technology companies Samsung, as a global technology conglomerate, exports its products to numerous countries around the world It exported to 128 countries and territories, including the US, Europe, Russia and Southeast Asia Pic 4.1: Samsung Electronic's global business structure 20 Downloaded by van Nguyen (hacngocbachvan.1003@gmail.com)