SAMSUNGELECTRONICSSeoulKorea.pptVIP

SAMSUNG ELECTRONICSSeoul, Korea Japan / Korea Trip 2001 Fabio Armani Julian Carey Jennifer Goodwin Agenda Samsung Group – History Structure Samsung Electronics History Company Focus Financial Overview Strategy Organizational Structure Challenges Samsung Group Founded in 1938 exporter of dried fish, vegetables, and fruits flour mill and confectionery machines 1950’s Economic Stabilization Korean War - Samsung lost all assets aimed to help rebuild Korean economy; entered the manufacturing industry (sugar,fabrics) became a leader in modern business practices (recruiting from outside) 1960’s Expansion of Key Industries entered electronics and chemical industries 1969 established Samsung Electronics Co. Samsung Group Samsung Electronics Established in January, 1969 1970’s: Bet the future on electronics laid the groundwork for electronics in Korea helped the domestic economy grow paved the way for exports 1980’s: A more comprehensive electronics company established plants in Portugal and US established Semiconductor and Communication corporation began memory chip business Early 90’s: Integration and Globalization Mid-Late 90’s: Implementing new management strategies New Millenium: Digital Vision Focus: 4 Core Markets Samsung Electronics Financial Overview Revenue growth and Operating Income suffered in 1996 1997: New CEO Jong Yong Yun major turnaround new business focus new management practices very positive results in 1999, but… Stock Performance Strategy 1997 Turnaround: Cut a third of workforce, cut debt Sold and spun off divisions Set “firewalls” to other Samsung Divisions New business proposition: profits Streamlined inventories Diversification Strategy New Economy: Exodus of engineers and managers to startups Top 4 conglomerates: $1.2B in startups (Samsung: $520M) Stakes of up to 29.9% in 80+ startups Startups benefit from links to global networks and financial expertise “You simply can’t survive without adapting to the fast-changing Internet era, and one sol