LONDON SCHOOL OF COMMERCE MALTA

Rashid Abdul Rahim

STUDENT ID: LM0021SRVSRV0618

MASTER IN BUSINESS ADMINISTRATION (MBA)

MODULE: Financial Analysis Management & Entrepreneurship – (FAME)

Lecturer: Stephen Fence – LSC Malta

Submitted on: 23rd JULY 2017

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 INDEX

Contents
1. INTRODUCTION ................................................................................................................................ 4
2. BRIEF DETAIL ABOUT COMPANIES ........................................................................................................ 4
2.1 ANALYTICAL TECHNIQUE USED ........................................................................................................... 5
2.2 ANALYSIS OF INCOME STATEMENT OF SAMSUNG ............................................................................. 6
2.3 ANALYSIS OF INCOME STATEMENT OF APPLE .................................................................................. 10
2.4 FINANCIAL RATIO ANALYSIS ................................................................................................... 12
2.5 PROFITABILITY RATIO ........................................................................................................................ 14
3. CONCLUSION AND RECOMMENDATION ............................................................................................ 15
4. TASK 2 ............................................................................................................................................... 16
4.0 CORPORATE SOCIAL RESPONSIBILITY ...................................................................................... 16
4.1 CSR OF SAMSUNG ........................................................................................................................ 16
4.2 APPLE CSR ACTIVITIES ........................................................................................................... 18
4.3 SUGGESSIONS AND RECOMMENDATIONS ................................................................................ 19
5. CONCLUTION................................................................................................................................... 19
6. BIBILIOGRAPHY ................................................................................................................................... 20
7. APPENDIX ......................................................................................................................................... 21

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ASSIGNMENT QUESTION

1. Your question is in 2 parts, as follows:

Apple and Samsung are today classified as two of the major players in the telecommunication
and hi-tech industry. Your assignment is to carry out a detailed comparison between these two
companies as specified below. The following are the links to the mentioned company’s annual
reports. These reports include all the required information to complete the tasks
1. Samsung (http://www.samsung.com/global/ir/reports-disclosures/sustainability-reports/)

2. Apple (http://investor.apple.com/financials.cfm)

Specifically you have been asked to undertake the following:

1. Critically compare and contrast the financial performance and financial position of the two
listed companies (Samsung and Apple) over the last FOUR years, (2014 – 2017). This should
be done by using the respective tools including ratio analysis, together with vertical and
horizontal analysis. The purpose of this task is to identify their financial strengths and
weaknesses together with a conclusion highlighting the strongest company based on financial
grounds.

2. Critically analyze their CSR sections or equivalent over the last couple of years, and write a
brief report commenting on your findings.

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 1. INTRODUCTION
The study is about comparison between the major giants of mobile and accessories technology,
Apple and Samsung. The difference between their financial positions and performance and to
find out the strength and weakness of the company financial positions and highlight the most
effective from these two by using various tools of financial analysis. Also there is a comparison
between corporate social responsibilities in terms of their activities in recent years.

Financial statement has a major role in evaluation of a company for various groups. A
company’s financial status is useful to owners, management, investors, government, public etc.
They are the users, it help to make decisions. Financial statement of companies are balance sheet,
income statement, cash flows etc. help for various analysis between inter firm and intra firm
activities.

The comparison study helps for decision making, and gets a picture between those companies’
financial position and performance. From this study I am trying to analyze how to explore the
financial records, interpretation of accounts of both Apple and Samsung with their financial
statement of previous 4 years.

2. BRIEF DETAIL ABOUT COMPANIES

SAMSUNG

The Largest South Korean multinational company brand.it was founded in 1938 by Lee Byung-
chul as a trading company. After three decades they entered into the area of textiles, food
processing securities and retail areas, and they made an entry to electronics industry in 1960 after
10 years they entered into the shipbuilding and construction. After the death of founder Samsung
was splited into four groups. They are CJ group, Samsung Group, hansol Group and Samsung
Group. After the late 90s they globalized their electronics and activities, in 2017 they are listed in
6 for the top brand values.

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Now the Company focus on consumer electronics, IT and mobile communications device
solutions etc. Their vision and mission is to build a better generation with full of digital
experience, need to become an innovative and admired company.

APPLE

Apple.Inc is an American company, headquarters is in California. The company develop and

designs computer software’s, consumer electronics, and online services.it was founded by Steve
jobs, Steve Woznick and Ronald Wayne in April 1976. Their products are iPhone, iPad, mac,
iTunes etc. Apple is the world largest IT Company by revenue and second largest mobile phone
manufacturer after Samsung. The company always focused on innovative productions. TIM
COOK is now CEO of APPLE. They are around 123000 of employees working with apple.

2.1 ANALYTICAL TECHNIQUE USED

Horizontal analysis

It analyze the annual change of items each. It help to analyze how each item varies, why it has
varied, and check those are good or bad to the firm. It calculated in percentage.

Vertical analysis

The analysis of other aspects of other items with gross sale, total amount is revenues or sales
depicts profit margins.

Ratio analysis

Is the monetary index analysis is the use of links between the financial statements of a company
to measure the financial position and performance of a firm.

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2.2 ANALYSIS OF INCOME STATEMENT OF SAMSUNG
2,017 percentage 2,016 2015 2014
Profit and Loss account

revenue 211,811,887 100% 174,047,940 100% 173,001,874 100% 182,273,479 100%

cost of sales 114,307,653 54% 103,702,512 60% 106,465,323 62% 113,390,613 62%

gross profit 97,504,234 46% 70,345,428 40% 66,536,551 38% 68,882,866 38%
selling and administration expence 50,075,918 24% 45,134,348 26% 43,763,086 25% 46,762,235 26%

Operating profit 47,428,316 22% 25,211,080 14% 22,773,465 13% 22,120,631 12%
Other non-operating income 2,661,763 1.26% 2,792,003 1.6% 1,453,610 0.8% 3,360,167 1.8%
Other non-operating expense 1,255,130 0.59% 2,124,281 1.2% 3,210,316 2% 1,997,469 1.1%
Share of profit of associates and joint
ventures 178,098 0.08% 16,814 0.01% 950,077 1% 302,763 0.17%
Financial income 8,608,961 4.06% 9,816,615 5.6% 9,065,847 5.2% 7,301,184 4.01%
Financial expense 7,938,380 3.75% 9,231,159 5.3% 8,649,315 5.0% 6,447,452 3.5%

Profit before income tax 49,683,628 23.46% 26,481,072 15% 22,383,368 13% 24,639,824 14%
Income tax expense 12,385,744 5.85% 6,886,812 4.0% 5,949,860 3.4% 3,960,643 2.2%

Profit for the period 37,297,884 17.61% 19,594,260 11.3% 16,433,508 9.5% 20,679,181 11%

Earnings per share 265 136.2 108.9 135.34

market price 46 25 20.5 22

2,017 2,016 2,015 2,014 2013 inv

ROCE 36% 21.1% 20.55% 22%

average inventories turn over period

avg inv held 67,386,088.50 59,654,153.00 55,535,257.00 55563101 54,475,251

Period (days) 215.17 209.96 190 178.86

average recievable settlement period 2013 deb

avg trade recievable 40,103,847 38,259,365 41,058,916 36216341 23,737,562

period 69 80.23 86.63 72.52269797

PE Ratio 0.17 0.18 0.19 0.16

INTERPRETATION (Each Item Divided By sales compared last 4 years)

1. In 2014 there was better sales revenue and it was decreased by 2015 and 16 and more
than half was cost of sales. But in 2017 it has been a huge change of sales, and cost of
sales decreased by 6%.
2. The gross profit margin is moderate for first 3 years, then it increased 6% for the last
year.

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 3. Same like gross profit operating profit is also moderate in first 3 years and 8% of growth
in last year.
4. There is no big changes in other income and expenses in last 4 years but somehow in
2017 expense rate decreased than previous two years.
5. And as usual income tax is increasing, because profit of the company is also increasing.
6. And important thing is the profit rate of Samsung is increased more than 5% in 2016
when comparing with previous 3 years.
 It is clear that 2017 is better year for Samsung in their income statement and they are still
improving their profit and decrease in their expenses when comparing all the aspects.

BALANCESHEET OF SAMSUNG

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 Balance Sheet
Samsung
All numbers are in US$ and in thousands Vertical Analysis Horizontal Analysis
2017 2,016 2,015 2,014 2,017 2016 2015 2,014 2017-16 2016-2015 2015-14

Non Current Assets

136,833,957 104,105,074 101,191,016 101,897,756 72% 62.6% 65.5% 68.6% 31% 3% -0.7%

Current Assets
Cash 27,005,370 27,686,236 19,517,225 14,886,207 14% 16.6% 12.6% 10.0% -2% 42% 31%
Stocks 69,883,434 64,888,743 54,419,563 56,650,951 37% 39.0% 35.2% 38.1% 8% 19% -4%
Debtors 28,119,199 23,969,296 28,580,137 24,957,558 15% 14.4% 18.5% 16.8% 17% -16% 15%
Prepayments 4941216 4,260,972 4,204,597 4,716,754 3% 2.6% 2.7% 3.2% 16% 1% -11%
Other C A 1,256,378 1,134,346 892,765 570,574 1% 0.7% 0.6% 0.4% 11% 27% 56%
129,949,219 121,939,593 107,614,287 101,782,044 69% 73.3% 69.7% 65.9% 7% 13% 6%

Total Assets 266,783,176 226,044,667 208,805,303 203,679,800 141% 135.9% 135.3% 131.9% 18% 8% 3%

Current Liabilities
Creditors 21,021,681 16,119,526 13,833,359 17,143,769 11% 9.7% 9.0% 11.1% 30% 17% -19%
Short Term Loan 14,186,700 12,053,108 9,809,138 8,669,642 7% 7.2% 6.4% 5.6% 18% 23% 13%
Accruals 17,522,150 18,382,756 19,653,154 19,850,283 9% 11.0% 12.7% 12.9% -5% -6% -1%
Other CL 6,659,912 610,056 247,565 313,423 4% 0.4% 0.2% 0.2% 992% 146% -21%
59,390,443 47,165,446 43,543,216 45,977,117 31% 28.3% 28.2% 29.8% 26% 8% -5%

Long Term Liabilities

Shareholders loan 842,880 50,474 1,060,883 1,198,517 0% 0.0% 0.7% 0.8% 1570% -95% -11%
Other LT Liabilities 16915029 12,457,518 9,817,230 7,924,490 9% 7.5% 6.4% 5.1% 36% 27% 24%
17,757,909 12,507,992 10,878,113 9,123,007 9% 7.5% 7.0% 5.9% 42% 15% 19%

Total Liabilities 77,148,352 59,673,438 54,421,329 55,100,124 41% 35.9% 35.3% 35.7% 29% 10% -1%

Net Assets 189,634,824 166,371,229 154,383,974 148,579,676 100% 100.0% 100.0% 100.0% 14% 8% 4%

Equity
Sharecapital -1,166,828 - 81,454 - 5,255,928 -6,495,076 -1% 0.0% -3.4% -4.4% 1332% -98% -19%
Retained Profits 190,801,652 166,452,683 159,639,902 155,074,752 101% 100.0% 103.4% 104.4% 15% 4% 3%

Total Equity 189,634,824 166,371,229 154,383,974 148,579,676 100% 100.0% 100.0% 100.0% 14% 8% 4%

Liquitity

Current Ratio 2.19 2.59 2.47 2.21

Acid test Ratio 1.01 1.21 1.22 0.98

Gear 9% 7.0% 6.6% 5.8%

1.6 Vertical Analysis Chart of samsung

1.4

1.2

0.8

0.6

0.4

0.2

0
Non Current
Current Assets TotalCurrent
Assets
2,017Liabilities
2016 2015 Long2,014
Term Total Liabilities
Net Assets
Equity Total Equity
-0.2 Assets Liabilities

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 1. Non-current asset was decreased in between 2015-16 and it increased around 9%
in 2017.
2. Current assets are decreased by 3% in present year because increase in non-
current asset reflected that. Horizontal analysis shows there is 6% of decrease
when comparing with 2017-16 and 2016-15.
3. Total Assets are in increased year by year, same like profit they have a huge
change in 2017 and debtor rate are decreased by 2% is an advantage for
Samsung.
4. Like Assets there are increases in Liabilities too, in last year it increased by 3%
of its total current liabilities. Huge increase in shareholders loan is one of the
main point.
5. The major part of total liability of Samsung is current liabilities.

The amounts showing both assets and liabilities are increasing, for the first 3
years there was no big fluctuations, but in 2017 there is big changes in share
capitals, accruals (decreased), shareholders loan, other liabilities etc. in 2017-
16.vertical analysis graph Shows the changes aspects in 2017.

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2.3 ANALYSIS OF INCOME STATEMENT OF APPLE
income statement 2017 2,016 2,015 2,014 2,017 2,016 2,015 2,014

net sales 229,234 215,639 233,715 182,795 100% 100% 100% 100%
cost of sales 141,048 131,376 140,089 112,258 62% 61% 60% 61%

gross margin 88,186 84,263 93,626 70,537 38% 39% 40% 39%

operating expenses

research and development 11,581 10,045 8,067 6,041 5% 5% 3% 3%

selling and general expence 15,261 14,194 14,329 11,993 7% 7% 6% 7%
total op exp
26,842 24,239 22,396 18,034 12% 11% 10% 10%

operating income 61,344 60,024 71,230 52,503 27% 28% 30% 29%
other income/expnce net 2,745 1,348 1,285 980 1.20% 0.63% 0.55% 0.54%

income before provision for income taxes 64,089 61,372 72,515 53,483 28% 28% 31% 29%
provision for income taxes 15,738 15,685 19,121 13,973 7% 7% 8% 8%
net income
48,351 45,687 53,394 39,510 21% 21% 23% 22%

earning per share

basic 9.27 8.35 9.28 6.49
market price 154.23 113 116 101

ROCE 56.64% 56.51% 75.64% 56.40%

average inventories turn over 2013

average inventories held 83148.5 60218 29502 14399.5 2,111

period 215.17 167.30 76.87 46.82

average recievable
2013
average trade recievable 50322.5 44470.5 43952.5 27219 17,460

period 80.12647557 75.27271273 68.64198917 54.35014634

PE RATIO 16.63754045 13.49820359 12.44612069 15.5238829

INTERPRETATION (Comparing all the item with sales)

1. When we assess the Sales and cost of sales from the income statement of Apple it
shows a sharp increase year by year.
2. The income statement shows a down of 1% of gross profit margin in 2017 and
2% of gross profit margin when it compared with 2015.
3. The analysis shows that the Operating expenses are increased in 2017 by 1%.
4. Operating income decreased by a percent.
5. While we evaluate we can understand there no disparities in net income, their
ratios are somewhat like as 2016 and 2017. In the year 2015 the apple got the
best percentage as 23% when we compare to other countries.

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Ratio Interpretation

 Almost same in 2014, 2016, 2017 rates in between 56%-57%, but it was higher in 2015
with 76%.

 The statement showing that now it is not better time for apple, comparatively 2015 was
good for them in all their aspects.

BALANCE SHEET OF APPLE

APPLE BALANCE SHEET vertical analysis horizontal analysis
(In millions, except number of shares which are reflected in thousands and par value

2017 2,016 2,015 2,014 2,017 2,016 2,015 2,014 2017-16 2016-15 2015-14

non current assets

246,674 214,817 201,101 163,308 184% 167% 168% 146% 15% 7% 23

Current assets

cash 20,289 20,484 21,120 13,844 15% 16% 18% 12% -1% -3% 53
stock 58,747 48,803 22,830 13,344 44% 38% 19% 12% 20% 114% 71
debtors 35673 29,299 30,343 27,219 27% 23% 25% 24% 22% -3% 11
other CA 13,936 8,283 15,085 14,124 10% 6% 13% 13% 68% -45% 7
Total CA 128,645 106,869 89,378 68,531 96% 83% 75% 61% 20% 20% 30

Total Assets 375,319 321,686 290,479 231,839 280% 251% 243% 208% 17% 11% 25

current liabilities creditors

short term loans 61,026 45,399 43,989 36,504 46% 35% 37% 33% 34% 3% 21
accruals 14,044 11,580 11,440 8,491 10% 9% 10% 8% 21% 1% 35
25,744 22,027 25,181 18,453 19% 17% 21% 17% 17% -13% 36

100,814 79,006 80,610 63,448 75% 62% 68% 57% 28% -2% 27
long term liabilities
Long term loan 100,043 78,357 57,087 32,018 75% 61% 48% 29% 28% 37% 78
other LL 40,415 36,074 33,427 24,826 180% 151% 143% 108% 12% 8% 35

LL 140,458 114,431 90,514 56,844 105% 89% 76% 51% 23% 26% 59
total liabilities 241,272 193,437 171,124 120,292 180% 151% 143% 108% 25% 13% 42

net assets 134,047 128,249 119,355 111,547 100% 100% 100% 100% 5% 7% 7

equity
share capital 35,717 31,885 27,071 24,395 27% 25% 23% 22% 12% 18% 11
retained profits 98,330 96,364 92,284 87,152 73% 75% 77% 78% 2% 4% 6

total equity 134,047 128,249 119,355 111,547 100% 100% 100% 100% 5% 7% 7

current ratio 1.28 1.35 1.11 1.08

acid test ratio 0.69 0.73 0.83 0.87

gear ratio 0.51 0.47 0.43 0.34

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INTERPRETATION OF BALANCE SHEET OF APPLE

 Non-current assets increased by value, and current assets are decreased from previous
years.
 29% of total assets increased in comparing with net assets.
 Increase in liabilities, mainly it is long term liabilities.
 Same like assets the increase in liabilities too, when there is a change in assets it reflects
on liabilities too.
 Share capital increased for last year and decrease for retained earnings, when comparing
both 2017-16 and 2016-15 in horizontal analysis there is decrease in 2017-16 because of
the reflection of 2016 rates.
 Liquidity of apple is not strong, ratios are falling down.

 This analyze shows that assets of apple are strong but the liquidity is not at all so strong
for apple, there is strong increase in assets and not so much increase of liabilities.net asset
rate are decreased from last couple of year proportion because of the increase of
liabilities.

2.4 FINANCIAL RATIO ANALYSIS

(Harvey., 2012) Tells us ratio analysis is a way of indicating relationship between an
organization’s accounting figures and their trends over time that accountant perform to provide
values and asses the risk.

 Liquidity Ratio
 Financial Gearing
 Profitability

*table showing last four year rates with 2017, 2016, 2015, 2015 respectively in their
orders

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1. LIQUIDITY RATIO

The liquidity ratios provide information about a company's ability to meet its short-term debt
obligations. It extracts information from current assets and current liabilities of a company that
are in the balance sheet. (Businesses, 2012)

Current ratio = Current assets

Current liabilities

APPLE
current ratio 1.28 1.35 1.11 1.08
SAMSUNG
Current Ratio 2.19 2.59 2.47 2.21

 Liquidity of Samsung is better than Apple. They have quick conversion rate than apple.
 Both having more than 1 in their ratio, so their financial strength is not at all weaker.

ACID TEST RATIO

Quick ratio indicates companies short term liquidity to measure if they have the ability to meet
their short term obligations when its liquid assets. (Anon., 2017)

Current asset - inventory

Current liabilities

APPLE
acid test ratio 0.69 0.73 0.83 0.87
SAMSUNG
Acid test Ratio 1.01 1.21 1.22 0.98

 Samsung holding a best ratio of conversion of current assets excluding their stocks. Now
they are having low ratio and improved between years. But still holding a better ratio
 Apple is falling with their ratio every year.

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2.5 PROFITABILITY RATIO
NET PROFIT MARGIN:
It is a total profit of sales left after all expense have been deducted from the sale and the result
depicts that the total amount of profit that business can outcome from total sales. (Anon.,
2017)used by creditors, investers, and firm management to evaluate the profitability

Net Profit
Net Profit Margin  x 100
Net Sales
SAMSUNG

Profit for the period 37,297,884 17.61% 19,594,260 11.3% 16,433,508 9.5% 20,679,181 11%
APPLE

48,351 45,687 53,394 39,510 21% 21% 23% 22%

 Apple profit rate is better than Samsung but the apple is falling with the profit
growth and Samsung is growing with a great margin.

GROSS PROFIT MARGINE

Margin between the gross profit and sales revenue.

Gross Profit
Gross Profit Margin  x 100
Sales Revenue
APPLE

88,186 84,263 93,626 70,537 38% 39% 40% 39%

SAMSUNG

97,504,234 46% 70,345,428 40% 66,536,551 38% 68,882,866 38%

 Samsung had constant in their first two years and make good fluctuations in their
growth level, but apple improved in 2015 only then they started falling by 1% in
their margin for next 2 years.

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3. GEARING RATIO

Gearing ratio is financial analytical ratio that the capital debt ratio is a useful tool to analyze the
capital structure of a company and is calculated by dividing ordinary stockholders' equity by
fixed interest or funds with dividends (Anon., 2012-2017).

(NON CURRENT LIABILITIES) X100

SHARE CAPITAL+ RESERVES +NON CURRENT LIABILITIES

SAMSUNG

Gear 9% 7.0% 6.6% 5.8%

APPLE

gear ratio 51% 47% 43% 34%

 Both The companies are improving with the percentage year by year. Apple has a better
growing percentage than Samsung for their gear ratio.

3. CONCLUSION AND RECOMMENDATION

Evaluation of Financial statements are the major tools to find financial strength and weakness of
a company.it is considered as a tool of evaluation with help to find out the aspects happening
with previous years and current position of company. These statistics are useful for owners,
investors, management, and various department of the company to get a picture of their
performance and improvement. It also helps for applying strategies on basis of the interpretation.
Those interpretation helps the clients for making decisions. This assignment is not only a
financial interpretation of accounts but also a brief knowledge about how to analyze the financial
aspects of the firm.

After analyzing the statements of Samsung and Apple which include balance sheet, income
statement by using the techniques (vertical, horizontal and ratio analysis) I am pointing that
Samsung has more Liquidity than Apple. The statements shows that the Samsung has better
growth than apple in recent years but apple is not in a good position when comparing their
statements with 2015. For apple they have 2015 as their best year in recent 4 years. After the
studies in my personal opinion apple has to focus with their financial aspects, try to focus with
their finance. Values are increasing but it is not effective with the total aspects of their accounts.

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Samsung doing at their best in recent years. So let’s conclude that at present Samsung is
performing best than Apple with their business activities.

4. TASK 2

4.0 CORPORATE SOCIAL RESPONSIBILITY

It is abbreviated as ‘CSR’ A large Business group has some responsibilities to the society instead
of paying taxes. They need to involve in social activities and services.it is considered as their
Responsibility. Moreover that company considered as it as organizational strategy of their future
business plans and improving their goodwill.

CSR activities are conducted directly by companies so that may impact direct improvement to
the society. CSR also called responsible business, corporate conscience, corporate citizenship,
sustainable business or corporate sustainability.

4.1 CSR OF SAMSUNG

Like every MNC companies Samsung is also involved in CSR activities, in 2016 the company
created a special unit for CSR activities for developing their business and Responsibilities’. The
vision of the CSR activities of the company is “achieve sustainable development through
corporate social Responsibility”. They focus on public relations through employee education and
campaigns and also with social contribution programs and they set a goal of long term CSR
activities and strategies to build a new level of management. The company Requested For all the
stake holders support for the future activities for fulfilling the ongoing societal changes and
sustainable development.

Samsung’s CSR vision is to achieve sustainable development through corporate social

responsibility, the core values they focused by Sincerity, Responsibility, synergy, Innovation.

Sincerity refers that to improve communication with stake holders and gain trust with them,
always stay connected with them and diversify the connection channels. Responsibility means
manage safety, health, environment and compliance oriented systems.in Synergy they create
integrated CSR management system and increase it for different business groups. Then they

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focused on Innovation to create new ideas, develop and growth by creating values, gaining
public interest and economic gains at same time.

THE MAJOR GOALS & TARGET

 They focus to reduce the poverty by distribute healthy food and promote sustainable
agriculture development.
 Focused on equality in education and promoting the lifelong earning trainings without
any gender differences.
 They ensure sustainable management of water resources and sanitation for all.
 Promotion of economic growth, infrastructure and sustainable industrialization.
 Promote income equality among countries
 Safety promotion and advanced working conditions for all
 Safety activities for climate change and protection like marine resources, forests etc.
MAJOR CSR ACTIVITIES OF SAMSUNG

Increase environmental friendly buildings for improve environmental value. Created dust
reduction method and developed a system of climate change indicator.

Giving special training programs for the employees about safety measures.

Initiate to expand sustainable supply chains. Expand mutual shared growth and support programs
for the suppliers.

Reliable customer support and expansion of customer communications.

Develop new technologies and services. Implement new socio cultural activities among
employees for getting enough participation.

MAJOR ACHIEVEMENTS BY SAMSUNG

 Got certification for ecofriendly activities

 They strengthened the safety measure activities, managed and monitored by giving
education and training to help employees to ensure safety attractions.

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  They strengthened the education of overseas operation and individual job categories
 Help suppliers with funds and conducted education for fair trade. Also they tightened
CSR activities.
 They strengthened education system to diversity and tolerance, support overseas expert
programs, and support professional assistance for academic industry corporation
 Always focused with customer satisfactory level, retained the no1 position through
survey and introduced new system for advanced customer relations.
 Introduced new ecofriendly activities and save water programs, build biomass fired plant,
enriched animal and plant content parks and resorts.
 Developed integrated social contribution brand and they promoted value of sharing
through heartiest house
4.2 APPLE CSR ACTIVITIES
Apple Company mainly focused on ecofriendly CSR activities .the main CSR activities they
done was reduce impact on climate change by using renewable energy resources and driving
energy in the products and the facilities of apple. Then conservation of precious resources. And
pioneer the use of safer materials of the products and process of apple. The company focused
with renewable as well as the eco-friendly activities. Company initiates some actions against the
climate changes. They focuses on 100% reusable energy.

THE MAJOR ACTIVITIES

 Education and empowering of workers are conducted for their workers all over the world,
they improved the employee benefit programs at its extent.
 Conducted apple health and safety programs to ensure safety of their workers all over the
world
 Company focusing on 100% renewable energy resources they are now applied around 24
countries.
 The major activity they done during 2016 is carbon emit ions they decreased the emit
ions of 97 kg in 2016.
 The company saving trees by recycling the wood papers, they are aiming of 1 million
acre of forest transition.

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  The company planted around 9000 drought-tolerant trees in apple park Cupertino, they
donated 1million USD to southern California wild fire recovery efforts.
 The company raised more than 3 million USD for hurricane Harvey relief effort in 2017.

4.3 SUGGESSIONS AND RECOMMENDATIONS

TO SAMSUNG

 Need to focus the activities to recyclable energy and materials.

 Include activities for reduction of carbon emition.
 Include CSR to public health relation is better to the company.
TO APPLE

 Need to focus more customer and employee relations.

 Focus with supplier relations is better.
 Need to focus with social and cultural aspects.
 Need to take global initiatives.

5. CONCLUTION
In my opinion Samsung is better than Apple in their CSR activities, because mainly apple is
related with environmental aspects and inside business CSR only, but Samsung they did with
considering all the aspects by pre-set of goals. They created separate wing to do CSR activities.
But that doesn’t mean CSR of apple is bad. They also did well and they focus their activities
natural, their customer and employee relations, safety and trainings. Apple need to focus with
general CSR activities instead of making their own favorable initiatives. Now a days Samsung
doing with their best but apple need to improve with CSR.

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 6. BIBILIOGRAPHY

1. Financial statements of apple

Apple (http://investor.apple.com/financials.cfm)

2. Financial statements of Samsung

Samsung (http://www.samsung.com/global/ir/reports-disclosures/sustainability-reports/)

https://www.samsung.com/global/ir/

3. https://en.wikipedia.org/wiki/Main_Page

4. Harvey., C. R., 2012. financial-dictionary.thefreedictionary.com.

Available at: https://financial-dictionary.thefreedictionary.com

5. grimsly, s., 2003-2017. study.com.

Available at: http://study.com/academy/lesson/profitability-ratio-definition-formula-analysis-
example.html

6. Anon., 2017 www.investopedia.com.

https://www.investopedia.com/terms/q/quickratio.asp

7. Anon., 2017. http://fortune.com/global500/.

: http://fortune.com/global500/
8. Anon. 2012-2017. www.accountingformanagement.org.
: http://www.accountingformanagement.org

BOOKS

8. Subramanyam, K. R. and Wild, J. J., 2009. Financial statement analysis. McGraw-Hill.

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 7. APPENDIX

CALCULATION AND EQUATIONS

Assignment Help.xlsx

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