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Along with the first order offer - 15% discount (with the code "get15off"), you save extra 10% since we provide 300 words/page instead of 275 words/pageSamsung Corporation is a multinational electronics company that has been a global leader in digital convergence technologies, as well as digital media. The company is based in South Korea and manufactures electronic gadgets such as phones, microwaves, television sets, cameras, and home theater systems. Samsung has attained a fast organizational growth through exports by enacting a global strategy that involves regions such as Asia, Africa, Europe, and the Middle East. Mr. Lee Kun-Hee is the chairman of the Samsung Group (Lee, 2006).
Corporate Governance
The corporate governance of Samsung Group sees to it that the decision-making procedures enhance the corporate transparency through accountability in management procedures. The executive officers are Chin Hun Choi, who is the president of Samsung C&T Corporation, and Shin Kim, who is the president and CEO of Trading and Investments Group (Song & Lee, 2015). Young Ho Lee is also an executive director, a senior vice-president, and a chief financial officer. The members of the board of directors comprise Chong Ook Rhee, Chang Hyun Yun, Kyu Kae Jeong, and Hyun Soo Lee. Other members of the board include Hak-Soo Lee, Yoon-Woo-Lee, and Jae-Sung Wang (Song & Lee, 2015).
In this respect, the CEO and the chairman are not the same person. The ratio of inside board members to outside directors is approximately 1:2 respectively. The diversity of the top management team and the board complies with the Articles of Incorporation and the corresponding regulations of the board of directors. Standards of directors independence have been observed as well. The top management has also been accorded the prerogative of making decisions regarding the important matters pertaining to the law, general shareholders meetings, and Articles of Incorporation (Lee, 2006).
Strategic Direction
The mission statement for Samsung conforms to the business philosophy that devotes talent and technology to the establishment of products that aid in the enhancement of society and improvement of living standards. The vision statement creates the future by inspiring the world. Samsungs intended strategy meets the customers expectations as well as the expectations of stakeholders and employees (Song & Lee, 2015). The evidence that supports this strategy is the fact that the company focuses on increasing the technological innovations of its gadgets in the quest of following the contemporary trends to benefit its stakeholders.
SWOT Analysis
The strength that Samsung has at its disposal is the fact that it is a top rated brand globally which is recognized for offering satisfaction and a good product design to customers at reasonable prices. The weakness that the company has been experiencing is the increasing costs of operations which have been reflected by a decrease in operating profits. The company is also globally-based, which implies that the management system is problematic and complicated as compared to a centralized system. The opportunity that Samsung electronics can benefit from is the LCD digital appliances, telecommunication networks, and digital media. Samsung can also take advantage of its strong customer demand and the increase of the computer market and literacy. The threats that Samsung confronts comprise aggressive competitors such as Sony, Panasonic, LG, and Apple. Moreover, the increasing trade barriers caused the emergence of new regulations (Lee, 2006).
The return on sales for Samsung Corporation is the percentage of operating profit divided by net sales. The percentage shows the ability of Samsung to turn sales revenue into profit. Returns on equity are the returned net income expressed as the percentage of the shareholders equity. The ratio is efficient to show how profitable the corporation is in terms of profit generated with the financial resources of investors. However, the net income involved as a part of the calculation is the income for the fiscal year even before the dividends have been paid to the common stockholders.
It is also imperative to acknowledge that shareholders equity is not included in the preferred shares. Returns on assets can be tabulated by dividing income from expenses. Return on assets is useful to indicate the companys profitability that stems from a conversion of assets to earnings. Assets turnover, on the other hand, refers to the proceeds that can be generated from each dollar of assets. The ratio can be obtained by dividing revenues or sales from the total assets. In fact, the higher the ratio, the better because it is an indication that Samsung is in a position to generate more revenues per dollar of assets.
Recommendation
The best recommendation for Samsung at this juncture is to focus on maximization of stockholders value by utilizing marketing in the quest of ensuring that the financial sides are balanced. This may be achieved through the increase in guarantees and customer insurance (Lee, 2006). The recommendation will be useful because Samsung Group tends to have more direct sale models where consumers can purchase goods directly or online (Song & Lee, 2015). The evidence can be supported by the fact that Samsung has been quite successful due to exports sold in other countries but not local sales. The goal of the recommendation is to improve the adopted marketing policies.
Conclusion
Samsung Electronics has been a global corporation that continues to dominate the telecommunication industry due to its high quality products. Samsung Group has also captured a significant part of the market share by producing goods of differing sophistication so as to integrate prices. As a result, the corporation narrows the gap between the rich and the poor as they can all afford Samsung electronics.