Samsung Group is a South Korean multinational conglomerate
headquartered in Samsung Town, Seoul. It comprises numerous affiliated
businesses, most of them united under the Samsung brand, and is the largest
South Korean chaebol (business conglomerate).
Samsung was founded by Lee
Byung-chul in 1938 as a trading company. Over the next three decades, the group
diversified into areas including food processing, textiles, insurance,
securities and retail. Samsung entered the electronics industry in the late
1960s and the construction and shipbuilding industries in the mid-1970s; these
areas would drive its subsequent growth. Following Lee’s death in 1987, Samsung
was separated into four business groups – Samsung Group, Shinsegae Group, CJ
Group and Hansol Group. Since 1990, Samsung has increasingly globalised its
activities and electronics; in particular, its mobile phones and semiconductors
have become its most important source of income. As of 2017, Samsung has the
6th highest global brand value
Notable Samsung industrial
affiliates include Samsung Electronics (the world’s 2nd largest information
technology company measured by 2015 revenues, and 5th in market value), Samsung Heavy Industries (the world’s 2nd
largest shipbuilder measured by 2010 revenues), and Samsung Engineering and
Samsung C (respectively the world’s 13th and 36th largest construction companies).
Other notable subsidiaries include Samsung Life Insurance (the world’s 14th largest
life insurance company), Samsung Everland (operator of Everland Resort, the oldest
theme park in South Korea) and Cheil Worldwide (the world’s 15th largest advertising
agency measured by 2012 revenues)
Samsung is the
leading smartphone vendor worldwide. In 2016, Samsung’s market share of the
global smartphone market was at around 20 percent with Apple as its closest
competitor in the market. in the market. In 2016 alone, the South Korean
company sold more than 300 million smartphones worldwide. Next to Apple Huawei,
OPPO and vivo are currently Samsung’s main competitors in the smartphone
Samsung comprises around 80
companies. It is highly diversified,
with activities in areas including construction, consumer electronics,
financial services, shipbuilding and medical services.
In FY 2009, Samsung reported
consolidated revenues of 220 trillion KRW ($172.5 billion). In FY 2010, Samsung
reported consolidated revenues of 280 trillion KRW ($258 billion), and profits
of 30 trillion KRW ($27.6 billion) (based upon a KRW-USD exchange rate of
1,084.5 KRW per USD, the spot rate as of 19 August 2011). However, it should be
noted that these amounts do not include the revenues from all of Samsung’s
subsidiaries based outside South Korea.
is a multinational corporation that designs, manufactures and markets consumer
electronics, personal computers and software.
is a multinational conglomerate corporation that designs and develops
electronic equipment, instruments and devices.
Limited is a company specializing in enterprise software and the Internet of
The Whirlpool Corporation is an American multinational manufacturer and
marketer of home appliances
The Vision 2020 is at the
core of our commitment to create a better world full of richer digital
experiences, through innovative technology and products.
The goal of the vision is to
become a beloved brand, an innovative company, and an admired company. For
this, we dedicate our efforts to creativity and innovation, shared value with
our partners, and our great people.
We have delivered world best
products and services through passion for innovation and optimal operation.
We look forward to exploring new
business areas such as healthcare and automotive electronics, and continue our
journey through history of innovation.
Samsung Electronics will welcome
new challenges and opportunities with joy.
“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.”
LO1) Explain the
different types , size and scope of organizations .
What is an organization,explain the difference between profit
and not for profit organizations.
Organizations are set up in
specific ways to accomplish different goals, and the structure of an
organization can help or hinder its progress toward accomplishing these goals.
Organizations large and small can achieve higher sales and other profit by
properly matching their needs with the structure they use to operate. There are
three main types of organizational structure: functional, divisional and matrix
Functional structure is set up so
that each portion of the organization is grouped according to its purpose. In
this type of organization, for example, there may be a marketing department, a
sales department and a production department. The functional structure works
very well for small businesses in which each department can rely on the talent
and knowledge of its workers and support itself. However, one of the drawbacks
to a functional structure is that the coordination and communication between
departments can be restricted by the organizational boundaries of having the
various departments working separately.
Divisional structure typically is
used in larger companies that operate in a wide geographic area or that have
separate smaller organizations within the umbrella group to cover different
types of products or market areas. For example, the now-defunct Tecumseh
Products Company was organized divisionally–with a small engine division, a
compressor division, a parts division and divisions for each geographic area to
handle specific needs. The benefit of this structure is that needs can be met
more rapidly and more specifically; however, communication is inhibited because
employees in different divisions are not working together. Divisional structure
is costly because of its size and scope. Small businesses can use a divisional
structure on a smaller scale, having different offices in different parts of
the city, for example, or assigning different sales teams to handle different
The third main type of
organizational structure, called the matrix structure, is a hybrid of
divisional and functional structure. Typically used in large multinational
companies, the matrix structure allows for the benefits of functional and
divisional structures to exist in one organization. This can create power
struggles because most areas of the company will have a dual management–a
functional manager and a product or divisional manager working at the same
level and covering some of the same managerial territory.
Types of organizations
There are generally five types’
organizations like private organization, public, government organizations,
co-operatives, charities and NGOs.
It has been noticed that limited
companies are generally corporate association; they have legal identity in its
own right. Therefore, the properties and other assets are owned by company but
not their members. On another hand the assets of the members are not for
organization use. Therefore, the liability of the individual is limited.
As stated Macrosoft Pakistan
(SMC-Private) Limited is a software design and development company established
in October 2006 in Lahore, Pakistan. It is as an offshore development center of
Macrosoft, Inc USA. The key to Macrosoft’s success, with respect to its quality
assured products, customized solutions, and client satisfaction, are its well
defined software development processes and procedures.
As argued by Zairi(2012), the
private limited companies must have minimum one share holder but organization
can offer large share to the public. However, the organization can offer large
share to those people who want to sign business contract with this
organization.It has been noticed that public limited companies have started as
a public limited companies.
In 1938, Lee Byung-chull
(1910–1987) of a large landowning family in the Uiryeong county moved to nearby
Daegu city and founded Samsung Sanghoe Samsung started out as a small trading
company with forty employees located in Su-dong (now Ingyo-dong) . As of 2017,
Samsung has the 6th highest global brand value. As of April 2011, the Samsung
Group comprised 59 unlisted companies and 19 listed companies, all of which had
their primary listing on the Korea Exchange. It has been observed that samsung
offers their share for sale to the general public.
There are three different types’ public
limited companies such as small, medium and large. As stated by Holcombe and
Ipate (2012), Small businesses have faced difficulties to sustain in the
competition with large businesses. It has been found that small business
worksin a very small market. On another hand there is small scope for the
organization to changes their management strategy randomly.Generally, entry of
competitors could damage their business significantly. However, the
organization has less resource to protect themselves from new entries of the
market. Therefore, large businesses can protect themselves from new competitors
better through creating a high cost to enter the market.
According to Willard (2012),
medium sized businesses have got better position than small size organization.
they have served a larger market and can change their strategy once or twice a
year. Even they can expand their business in new market with existing products.
They have more resources to protect themselves from new entries to the
market.However,the medium size organizations have faced risk due to the
competition with very large organisation.
The large organization has more resources the risks may be too high to
It has been noticed that
organizations are classified based on the production such as primary, secondary
and tertiary. Primary organization generally produced the raw materials from
natural raw materials and sends it to the secondary organization. The secondary
organizations convert the raw materials into products and transfer the products
to the tertiary organization. Tertiary organizations are generally retailers
who sales the product or providing the service to the customers
The scope of the organizations is
depending on their product types. The scope for coca cola organization is to
produce and supply soft drinks such as carbonated drinks, concentrates, fruit
juice, ready to drink coffee, tea, sports energy drinks and bottled water.It
has been observed that OXFAM is a charity organization has a broad target that
supports more resources to protect themselves from new entries to the market;
however against a very large organisation with more resources the risks may be
too high to sustain protection.
It has been observed that the
organization has selected vision, mission, goals and objective to improve their
business performance. Vision refers to that position where the organization
wants to go. Mission refers to the purpose and role of the company. As stated
by Chen et al.(2012, p.1665), the reason for selecting mission is to provide
the scope of the organisation so that the organization can fulfil its
Objectives. Objective refers to the specific and shorter target of the
The business operation of the
organization is depending up on the shareholders and stake holders. Stake
holders are considered as individuals or group of people who are interested in
the business. However, these people are generally affected by the business
activities. It has been found that there are different features in business
environment of global firm like Toyota such as dynamic, differs and
uncontrollable. Therefore, the business environment of Toyota is changing
gradually based on the trend of customers and society but it is unpredictable
also. The business is expanded internationally by the supportive industries.
The business is uncontrollable because the entire business operation is based
on macro environment, forces and factors.
A micro-enterprise (or
microenterprise) is generally defined as a small business employing nine people
or fewer, and having a balance sheet or turnover less than a certain amount
(e.g. 2,000,000 euros or PhP 3,000,000). The terms microenterprise and
microbusiness have the same meaning, though traditionally when referring to a
small business financed by microcredit the term microenterprise is often used.
Similarly, when referring to a small, usually legal business that is not
financed by microcredit, the term microbusiness (or micro-business) is often
used. Internationally, most microenterprises are family businesses employing
one or two persons.
Paper to Pearls is a
micro-enterprise initiative of Voices for Global Change, a 501(c) non-profit
based in Alexandria, Virginia. Paper to Pearls works with women in the
Internally Displaced Persons (IDP) camps in northern Uganda. The women create jewelry
by hand-rolling beads from recycled paper, and Paper to Pearls markets and
sells the jewelry principally in the United States, but also, via retailers and
its website, in countries throughout the world.
Because of Voices’ non-profit
status, between 75%-85% of the sale proceeds directly benefit the women, both
as income as well as ongoing training programs
Sometimes called a small business,
a small-scale enterprise is a business that employs a small number of workers
and does not have a high volume of sales. Such enterprises are generally
privately owned and operated sole proprietorships, corporations or partnerships.
The legal definition of a small-scale enterprise varies by industry and
country. Ammar Precast is a small
business in Pakistan with employees of 16-25 persons. They manufacture of all
Precast Concrete Product. With there setup and manufacturing units, they ensure
quality controlled readily available and in-time supply of Costumers. Their
design section provides solutions for any technical requirements.
The European definition of SME
follows: “The category of micro, small and medium-sized enterprises (SMEs)
is made up of enterprises which employ fewer than 250 persons and which have an
annual turnover not exceeding 50 million euro, and/or an annual balance sheet
total not exceeding 43 million euro.”.
Zeeto is the example of medium size enterprises with employment of 51-200
difference between sole trader partnership and limited
A limited company is its own legal
identity, so as a shareholder your liability is limited (hence the name
‘limited by shares’). As a sole trader, there is little distinction between you
and the business. Any business debts become your debts and your personal assets
– including your house – are not protected.
Explain the key difference between large, medium sized and
small organizations. in the light of following factors:
Small – Less than 50 employees,
regardless of revenue, or, if the number of employees is unknown, then revenue
of less than £5.6m/$5.6m will be taken as an indicator that it is a small
Medium – Between 50 and 249
employees, regardless of revenue, or, if the number of employees is unknown,
then revenue of greater than or equal to £5.6m/$5.6m and less than
£22.8m/$22.8m will be taken as an indicator that it is a medium business.
Large – Greater than or equal to
250 employees, regardless of revenue, or, if the number of employees is
unknown, then revenue of greater than or equal to £22.8m/$22.8m will be taken
as an indicator that it is a large business.
Objective and goals
Successful businesses are based on
both goals and objectives, as they clarify the purpose of the business and help
identify necessary actions Goals are general statements of desired achievement,
while objectives are the specific steps or actions you take to reach your goal.
Both goals and objectives should be specific and measurable. Goals can involve
areas such as profitability, growth and customer service, with a range of
objectives that can be used to meet those goals.
Organizational objectives are
short-term and medium-term goals that an organization seeks to accomplish. …
Achievement of objectives helps an organization reach its overall strategic
Company objectives are measurable.
They effectively describe the actions required to accomplish a task. Objectives
define the techniques an organization will use to achieve sales success,
customer service goals, financial goals and any other measurable aspirations of
the company. One of the Samsung’s leading objectives is the attainment of leadership
position in the electronics industry. Currently, the firm holds the secong
position, facing major competition from Apple Inc.
Although small business have close
relationships with their existing customers, finding new customers and reaching
new markets is a major challenge for small business owners. Small businesses
typically find themselves strapped for time to do marketing, while large
organization holds 15% to 20 % of the market.
Samsung is the leading smartphone
vendor worldwide. In 2016, Samsung’s market share of the global smartphone
market was at around 20 percent with Apple as its closest competitor in the
market. In 2016 alone, the South Korean company sold more than 300 million
The Small Business Administration,
or SBA, sets limitations on the amount of gross revenue an organization may
collect before the agency considers it a big business. Though the SBA has established
revenue limits, these numbers vary by industry and can cover a large range
within industries. According to the SBA, service businesses that earn an
average of between $2.5 and $21.5 million per year over three years, depending
on the particular type of service offered, may be considered big businesses.
Three-year average revenues of between $5 and $21 million for retail
businesses, between $13.5 and $17 million for construction firms and $0.5 and
$9 million for agricultural agencies also cross the line between small and big
A small business is an independent business
which is managed by its owner or part-owners in a personalised way and which
has a relatively small market share. A large business is an independent
business which is managed by its owner, part-owners, or share holders in a
personalised way and which has a large market share and provides jobs for 250
or more employees.