Vision 2020

As stated in its new motto, Samsung Electronics' vision for the new decade is, "Inspire the World, Create the Future." This new vision reflects Samsung Electronics commitment to inspiring its communities by leveraging Samsung's three key strengths: New Technology, Innovative Products, and Creative Solutions. -- and to promoting new value for Samsung's core networks -Industry, Partners, and Employees. Through these efforts, Samsung hopes to contribute to a better world and a richer experience for all.

As part of this vision, Samsung has mapped out a specific plan of reaching $400 billion in revenue and becoming one of the worlds top five brands by 2020. To this end, Samsung has also established three strategic approaches in its management: Creativity, Partnership, and Talent. Samsung is excited about the future. As we build on our previous accomplishments, we look forward to exploring new territories, including health, medicine, and biotechnology. Samsung is committed to being a creative leader in new markets and becoming a truly No. 1 business going forward.

Our Vision
Samsung is guided by a singular vision: to lead the digital convergence movement. We believe that through technology innovation today, we will find the solutions we need to address the challenges of tomorrow. From technology comes opportunity-for businesses to grow, for citizens in emerging markets to prosper by tapping into the digital economy, and for people to invent new possibilities. Its our aim to develop innovative technologies and efficient processes that create new markets, enrich peoples lives and continue to make Samsung a trusted market leader.

Our Mission
Everything we do at Samsung is guided by our mission: to be the best digital-Company.

Samsung grew into a global corporation by facing challenges directly. In the years ahead, our dedicated people will continue to embrace many challenges and come up with creative ideas to develop products and services that lead in their markets. Their ingenuity will continue to chart Samsungs course as a profitable, responsible global corporation.

Business mission
January 21, 2010 By Hitesh Bhasin Leave a Comment A strategic marketing plan starts with a clearly defined business mission. Mintzberg defines a mission as follows: A mission describes the organizations basic function in society, in terms of the products and services it produces for its customers. A clear business mission should have each of the following elements:

A Purpose Why does the business exist? Is it to create wealth for shareholders? Does it exist to satisfy the needs of all stakeholders (including employees, and society at large)? A Strategy and Strategic Scope A mission statement provides the commercial logic for the business and so defines two things: 1) The products or services it offers (and therefore its competitive position) 2) The competences through which it tries to succeed and its method of competing A business strategic scope defines the boundaries of its operations. Management sets these. For example, these boundaries may be set in terms of geography, market, business method, product etc. The decisions management make about strategic scope define the nature of the business. Policies and Standards of Behavior A mission needs to be translated into everyday actions. For example, if the business mission includes delivering outstanding customer service, then policies and standards should be created and monitored that test delivery. These might include monitoring the speed with which telephone calls are answered in the sales call center, the number of complaints received from customers, or the extent of positive customer feedback via questionnaires. Values and Culture The values of a business are the basic, often unstated, beliefs of the people who work in the business. These would include: 1) Business principles (e.g. social policy, commitments to customers) 2) Loyalty and commitment (e.g. are employees inspired to sacrifice their personal goals for the good of the business as a whole? And does the business demonstrate a high level of commitment and loyalty to its staff?) 3) Guidance on expected behavior a strong sense of mission helps create a work environment where there is a common purpose Some examples of mission statements Mission and Vision of Samsung Electronics Vision of SAMSUNG Electronics is Leading the Digital Convergence Revolution and their mission to carry out this vision is Digital-e Company.There are two parts of being a Digi-tal-e Company, and the first is clearly about being Digital producing not just digital products, but products that inspire digital integration across our entire company. The second part of being a e is to use e-Processes connecting R&D, production, and marketing to customers, partners, and the market-disciplined approach is the way we bring value to every part of our supply chain, including products data to and customer relationship through Enterprise Resource Planning (ERP).

Mission of Lands End Lands End, a leading international direct merchant of traditionally styled, casual clothing for men, women, and children, as well as soft luggage and products for the home, offers products through regular mailings of its primary and specialty catalogs and via the Internet. It is known for providing products of exceptional quality at prices representing honest value, enhanced by a commitment to excellence in customer service.

Mission of Coca-Cola Coca-Colas mission is to maximize shareholder value over time. It creates value by a strategy guided by six beliefs: 1. Consumer demand drives everything it does. 2. Brand Coca-Cola is the core of its business 3. It will serve consumers a broad selection of nonalcoholic ready-to-drink beverages 4. It will do excellent job marketing 5. It will think and act locally 6. It will lead as a model corporate citizen

Mission
January 27, 2010 By Hitesh Bhasin Leave a Comment While the essence of vision is a forward looking view of what an organization wishes to become, mission is what an organization is and why it exists. Several years ago Peter F Drucker raised important philosophical questions related to business: What is our business? What will it be? And what should it be? These three questions, though simply worded, are in reality the most fundamental questions that any organization can put to itself. The answers are based on the analysis of the underlying needs of the society that any organization serves to fulfill. The satisfaction of that need is, then, the business of the organization. Understanding Mission Organizations relate their existence to satisfying a particular need of the society. They do this in terms of their mission. Mission is a statement, which defines the role that an organization plays in a society. It refers to the particular needs of that society, for instance, its information needs. A book publisher and a magazine editor are both engaged in satisfying the information needs of society but they do it through different means. A book publisher may aim at producing excellent reading material while a

magazine editor may strive to present news analysis in a balanced and unbiased manner. Both have different objectives but an identical mission. Defining Mission A mission was earlier considered as the scope of the business activities a firm pursues. The definition of mission has gradually expanded to represent a concept that embodies the purpose behind the existence of an organization. Thompson (1997) defines mission as the essential purpose of the organization, concerning particularly why it is in existence, the nature of the businesses it is in, and the customers it seeks to serve and satisfy Hunger and Wheelen (1999) say that mission is the purpose or reason for the organizations existence. Now there is not much difference of opinion about the definition of mission. Yet, you finds instances of organizations confusing mission with vision or objectives. In strategic management literature, mission occupies a definite place as a part of strategic intent. How are Mission Statements Formulated? Most organizations derive their mission statements from a particular set of tasks they are called upon to perform in the light of their individual, national or global priorities. Several public sector organizations, set up in India during the 1950s and 60s owe their existence to the vision of Jawaharlal Nehru, the first prime minister, who enunciated and tirelessly worked for the national aim of building a strong and self reliant India by laying the foundations of many of our basic infrastructure industries. Mission statements, whether derived from set priorities or not, could be formulated either formally or informally. Usually, entrepreneurs lay down the corporate philosophy, which an organization follows, in its strategic and operational activities. Such a philosophy may not be consciously and formally stated but may gradually evolve due to the entrepreneurs actions. Generally an entrepreneur has a perception of the type of organization that he, wants his company to be. Mission statements could be formulated on the basis of e vision that an entrepreneur decides on in the initial stages of an organizations, growth. Major strategists could also contribute to the development of a mission statement. They do this informally by lending a hand in the creation of a particular corporate identity or formally through discussions and the writing down of a mission statement. Chief executives plan a major role in formulating a mission statement both formally and informally. They may set up executive committees to formally discuss and decide on a mission statement or enunciate a corporate philosophy to be followed for strategic management. Consultants may also be called upon to make an indepth: analysis of the organization to suggest an appropriate mission statement.

Vision
January 27, 2010 By Hitesh Bhasin Leave a Comment Aspirations, expressed as strategic intent, should lead to an end; otherwise they would just be castles in the air. That end is the vision of an organization or an individual. It is what the firm or a person would ultimately like to become. For instance, some of you, say in 10 years, or may be even earlier, would like to become general managers managing an SBU in a large, diversified multinational corporation. Or some others among you would like to believe that you will be an entrepreneur in 1015 years owning your own company dealing with IT services and employing cutting edge technology to serve a global clientele. A firm thinks like that too. Witness what Tata Steel says about its vision: Tata Steel enters the new millennium with the confidence of a learning, knowledge based and happy organization. We will establish ourselves as a supplier of choice by delighting our customers with our service and our products. In the coming decade, we will become the most cost competitive steel plant and so serve the community and the nation. A vision, therefore, articulates the position that a firm would like to attain in the distant future. Seen from this perspective, the vision encapsulates the basic strategic intent. Understanding Vision A vision is more dreamt of than it is articulated. This is the reason why it is difficult to say what vision an organization has. Sometimes it is not even evident to the entrepreneur who usually thinks of the vision. By its nature, it could be as hazy and vague as a dream that one experienced the previous night and is not able to recall perfectly in broad daylight. Yet it is a powerful motivator to action. And it is from the actions that a vision could often be derived. Henry Ford wished to democratize the automobile when he visualized that an affordable vehicle could be available for the masses. Walt Disney probably wanted to make people happy. Defining Vision Vision has been defined in several different ways. Kotler (1990) defines it as a description of something (an organization, corporate culture, a business, a technology, an activity) in the future. El Namaki (1992) considers it as a mental perception of the kind of environment an individual, or an organization, aspires to create within a broad time horizon and the underlying conditions for the actualization of this perception. Miller and Dess (1996) view it simply as the category of intentions that are broad, all inclusive, and forward thinking. The common strand of thought evident in these definitions and several others available in strategic management literature relates to vision being future aspirations that lead to an inspiration to be the best in ones field of activity

The Benefits of Having a Vision Parikh and Neubauer (1993) point out the several benefits accruing to an, organization having a vision. Here is what they say: Good visions are inspiring and exhilarating

Visions represent a discontinuity, a step function and a jump ahead so that the company knows what it is to be Good visions help in the creation of a common identity and a shared sense of purpose Good visions are competitive, original and unique. They make sense in the market place, as they are practical Good visions foster risk taking and experimentation Good visions foster long term thinking. Good visions represent integrity; they are truly genuine and can be used for the benefit of people.

History

Samsung Electronics was founded in 1969

[11]

in Daegu, South Korea as Samsung Electric Industries, originally

manufacturing electronic appliances such as TVs, calculators, refrigerators, air conditioners and washers. By 1981, the company had manufactured over 10 million black and white TVs. In 1988, it merged with Samsung Semiconductor & Communications. It is noteworthy that Samsung Electronics has grown in leaps and bounds in a business notorious for cyclical fluctuations. Founded in 1938 as a food processing and textile purveyor, the parent group entered the electronic business as late as in 1969 when it created under its wings an electronic component subsidiary. It was a decision made after considering the fast-growing domestic demand for electronic goods.

Just one year after its founding, the Samsung Group established in 1970 another subsidiary Samsung-NEC jointly with Japans NEC Corp. to manufacture electric home appliances and audio-visual devices. In 1974, it expanded into the semiconductor business by acquiring Korea Semiconductor, one of the first chip-making facilities in the country at the time. It was soon followed by the 1980 acquisition of Korea Telecommunications, an electronic switching system producer. In February 1983, Samsungs founder Lee Byung-chull made an epoch-making announcement, dubbed the Tokyo declaration, that his company would enter the DRAM (dynamic random access memory) business. And only one year after the declaration did Samsung became the third company in the world that developed the 64k DRAM after the United States and Japanese predecessors. The march from then onward as the pioneer in the memory chip-making industry has continued to this day for almost three decades. Although Samsung Electronics was already one of the biggest companies in Korea as early as the 1990s, it now is by far the most important company with unrivaled influence on the economy through a large network of supplier and partner companies as well as through its own revenue-generating power. Since the onset of the 1997 Asian financial crisis, the company has become more powerful: While most other high-tech companies were hit by cash-flow problems after the crisis, Samsung could avoid financial difficulties by broad-based structural reforms. After the crisis subsided, Samsung emerged as a global corporation. For four consecutive years from 2000 to 2003, it posted more than 5-percent net earnings when 16 large conglomerates out of 30 top companies of the nation went out of business in the wake of the unprecedented crisis.
[12] [13]

On 2009 and 2010, the US and EU fined Samsung Electronics with 8 other memory chip makers for its part in a price fixing scheme from 1999 to 2002. Other companies fined included Infineon Technologies, Elpida Memory (Hitachi and NEC) and Micron Technology.
[14][15][16][17][18]

In December 2010, The EU granted immunity to

Samsung Electronics for its part in informing on other members (LG Display, AU Optronics, Chimei InnoLux, Chunghwa Picture Tubes and HannStar Display) of a price fixing scheme.
[19][20]

On April 2011, Samsung Electronics Co. have sold their HDD commercial operation to Seagate Technology for about $1.4 billion with payment of 45.2 million of (Samsung-Seagate) shares (9.6 percent of shares) with value of $687.5 million and the rest will be paid in Cash. [edit]Growth(
[21]

goals)

Only ten years ago, Samsungs only goal was to catch up with Japanese rivals. But now it is outperforming major Japanese electronics makers in many categories: in terms of global market share, Samsung is No. 1 in flat-panel TVs and memory chips; it is No. 2 in mobile handsets; it is one of the top suppliers in other home appliances. In 2005, Samsung surpassed Japanese rival Sony for the first time to become 20th world's largest and most popular consumer brand as measured by Interbrand. list of global brands, 2nd in the electronics industry. innovation.
[25] [23] [22]

In 2006, Business Week rated Samsung as 20th on its

[24]

Business Week also ranked Samsung as 20th in

In 2007, Samsung Electronics' handset division overtook American rival Motorola, making it the
[26]

world's second-largest mobile phone maker.

In 2009, Samsung overtook Siemens of Germany and Hewlett-

Packard of the USA with a revenue of $117.4 billion to take the No.1 spot as the world's largest technology company.
[27]

The semiconductor division of Samsung Electronics is the world's largest memory chip and second largest semiconductor manufacturer worldwide.
needed] [28]

This has been the case for DRAM and SRAM for over a decade.

[citation

To become the top brand in the electronics business, Samsung has spent enormous sums on marketing and branding. As part of fulfilling this strategy, the company devised in 1996 a plan to sponsor major sporting events. It succeeded in becoming an official sponsor for the 1998 Nagano Winter Olympics. Samsung today is the name that almost always appears in many big games.
[29]

Despite being a giant in the global technology business with abundant growth, Samsung, along with its chairman Lee Kun-hee, is famous for fretting over its future and coming crisises. Since returning from a mini retirement in March 2010, Kun-hee said, Samsung Electronics future is not guaranteed because most of our flagship products will be obsolete in 10 years from now.
[30]

Global consumers brand recognition of Samsung Electronics has increased steadily: According to the top-100 brand list compiled by Millward Brown, the British brand consultancy, Samsung, ranked at 68th on its list, was one of the worlds most valuable brands whose growth has been most pronounced during the 2009-2010 period. Its brand value, estimated at as much as US$1.1 billion, grew by 80 percent. In the Worlds Most Reputable Companies 2010 ranking published by Reputation Institute of the United States, Samsung was placed at 22nd, a large advancement from the previous years 74th. This ranking, compiled by the U.S. consulting company since 2006, reflects survey results collected from consumers in 24 different countries for global 600 large corporations in terms of annual revenue and its GDP share in respective countries. The respondents answer questions in seven categories including products and services, innovativeness, work conditions, corporate governance, social responsibility, leadership, and financial performance. Samsung was also ranked 11th in the 50 Most Innovative Companies 2010 list put out by Business Week, a five-notch increase from the previous years 16th. The ranking, collated jointly by the U.S. weekly magazine and Boston Consulting Group since 2005, is based on answers to innovation-related survey questions asked to executives of global corporations. While survey answers take an 80-percent weight to the compilation of the ranking, the remaining 20 percent is accounted for by annual share appreciation (10%) and three-year average sales revenue and profit margin (5% each), respectively. Samsung had emphasized innovation in its management strategy since the early 2000s and it again highlighted innovation as part of core strategies when it announced the Vision 2020 in which the company set an ambitious goal of reaching the $400-billion sales revenue within 10 years. In order to cement its leadership in the areas of memory chip and TV production, Samsung has invested aggressively in research and development. The company currently has 24 R&D centers around the world. In the 2010 Business Week innovation ranking, Apple Computer and Google retained the leading positions as in the 2009 list, followed by Microsoft, which gained one notch from 2009s fourth place.

Meanwhile, Samsung took the 33rd place in the Worlds Most Valuable Brands 2010 list made public by the Forbes magazine. Forbes said that Samsungs brand value was as much as $12.8 billion with an average sale revenue growth rate of 17 percent for the past three years.

Market share
Samsung's global M/S

Product

Competitors

M/S

Year

Source

DRAM

40.4%

Hynix

19.8% Q3 2010

[77]

NAND Flash

40.4%

Toshiba

33.1% Q2 2010

[78]

Large-size LCD Panel (revenue)

26.0%

LG Display

25.9% Q3 2010

[79]

Active-Matrix OLED

97%

LG Display, AUO 1~3% 2010

[80]

Lithium-ion battery

18.7%

Sanyo

19.4% Q1 2010

[81]

LCD Monitor

18.0%

Dell

12.8% 2009

[82]

Hard disk drive

9%

Seagate Technology

31%

Q4 2009

[83]

Television sets 17.2% (LDC, PDP, CRT, LED)

LG Electronics

14.8% Q3 2009

[84]

Mobile phone

21.0%

Nokia

32.4% Q3 2010

[85]

Digital camera

11.8%

Sony

17.4% 2010

[86]

Samsung Electronics Announces Eco-Management 2013 Initiative

on Jul 25, 2009

- Company aims to become a leading eco-friendly enterprise under the vision of "Creating New Value through Eco-Innovation" Seoul, Korea, July 20, 2009 Samsung Electronics today announced a new green management initiative that establishes a comprehensive set of goals intended to make Samsung a leading eco-friendly company by 2013. Focused on achieving low-carbon economic growth, the company laid out four core green management objectives as part of its Eco-Management 2013 plan. The objectives included: reducing greenhouse gas emissions normalized by sales* from manufacturing facilities by 50 percent and cutting total indirect greenhouse gas emissions from all products by 84 million tons over a five year period through 2013; ensuring 100 percent of Samsungs products are eco-friendly and exceed global eco-mark standards; investing 5.4 trillion Korean won in various eco-management initiatives; and enhancing green partnerships with suppliers and partners. The company also unveiled its green management vision, "Creating New Value through Eco-Innovation, and the programs slogan, "PlanetFirst," during a ceremony at Samsung Electronics corporate headquarters in Seoul. The vision statement emphasizes the managements commitment to make environmental guardianship a priority across the business and apply technology in innovative ways to achieve eco-friendly growth. As a leading global technology company, Samsung Electronics has always taken our environmental responsibilities very seriously, but today we are committing to becoming a truly green enterprise that places eco-management at the very heart of our business decision-making and growth, said Yoon-Woo Lee, Samsung Electronics' vice chairman and CEO. This eco-management initiative will encompass all of our global operations, supply chain, and the complete lifecycle of Samsung products, and by achieving these goals we aim to lead the way in tackling the environmental problems that are facing our planet. The Eco-Management 2013 plan includes commitments to: Reduce greenhouse gas emissions from manufacturing facilities by 50 percent by 2013 on a financial emissions intensity basis, taking 2008 as the base year. In order to achieve this, LCD and semiconductor lines will introduce PFC and SF6 reduction technologies, and enhance energy management systems. Reduce estimated indirect greenhouse gas emissions from Samsung products by 84 million tons over a five year period through the end of 2013. This will be achieved by enhancing energy efficiency of Samsung products including TVs, refrigerators and air conditioning systems to the highest level in the industry, and reducing standby power consumption from 1.0W to 0.5W. Exceed Good Eco-Product criteria** for 100 percent of Samsung's products, up from the current 50 percent. This will include introducing eco-friendly evaluation for products in the R&D stage, enhancing energy efficiency, and increasing the use of recyclable and eco-friendly materials. Invest 5.4 trillion Korean won on research and development, and facilities related to eco-management initiatives through 2013. This includes 3.1 trillion Korean won for development of eco-friendly products, and 2.3 trillion Korean won for energy-saving technologies and greening of manufacturing facilities. Strengthen environmental cooperation with suppliers and partners, including supporting the implementation of green management systems such as ISO 14001, and the establishment of greenhouse gas inventories.

* Greenhouse Gas Emissions Normalized by Sales Total greenhouse gas emissions are divided by annual revenue in order to provide a consistent measure of green manufacturing efficiency. (unit: tons of C02/100 million Korean won revenue) ** Good Eco-Product Samsung assigns each newly developed product an eco-rating (Eco-Product, Good Eco-

Product, or Premium Eco-Product) based on strict internal evaluation criteria. In order to be considered a Good EcoProduct, products must exceed basic industry requirements, exhibit differentiating eco-friendly features and satisfy global eco-mark standards.

About Samsung Electronics Samsung Electronics Co., Ltd. is a global leader in semiconductor, telecommunication, digital media and digital convergence technologies with 2008 consolidated sales of US$96 billion. Employing approximately 164,600 people in 179 offices across 61 countries, the company consists of two business units: Digital Media & Communications and Device Solutions. Recognized as one of the fastest growing global brands, Samsung Electronics is a leading producer of digital TVs, memory chips, mobile phones and TFT-LCDs. For more information, please visit www.samsung.com.