Course Project (RAA) Part 1 PDF

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Course Project Part 1...

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1

Course Project (RAA) Part 1 Student Name Davenport University

2 Company Selected: Samsung Company Background Information: 

NAICS Code: Samsung’s NAICS Code is 443142 classifying them as an electronics store (“Samsung Electronics,” 2020). Samsung also still has a SIC code which is 5731 classifying them as a radio, television, and consumer electronics store (“Samsung Electronics,” 2020).

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Legal Structure: The Samsung Group itself is not a legal entity (“Legal,” 2020). Each company within the Samsung Group, however, does act as its own independent legal entity. The term Samsung Group is used to tie a group of companies together that share corporate history. “No company within the Samsung Group can accept or receive service of process on behalf of another” (“Legal,” 2020). In the Samsung Group, each independent company is legally liable for itself, and they are not legally liable for each other unless specifically agreed to in writing (“Legal,” 2020).

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Current Executive Management Team: Samsung has three main individuals that compose most of their executive management team. These three individuals take on several roles within the company. All three of them act as CEO as well as a Head & President of other sectors of the company. o Kim, Ki Nam: Vice Chairman & CEO from 2018 to Present, Vice Chairman & Head, Device Solutions from 2018 to Present (“CEO,” 2020). o Kim, Hyun Suk: President & CEO from 2018 to Present, President & Head, Consumer Electronics from 2017 to Present (“CEO,” 2020). o Koh, Dong Jin: President & CEO from 2018 to Present, President & Head, IT & Mobile Communications from 2017 to Present (“CEO,” 2020).

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Current Product & Service Lines: Samsung mainly offers various electronic products. They currently sell nearly any electronic product. Their current offers are the following: o Mobile: Smartphones, Tablets, Smart Watches, Earbuds, Headphones, and Mobile Accessories (“Samsung,” 2020). o TV & Audio: TVs, Home Theaters, Home Audio, and TV Accessories (“Samsung,” 2020). o Home Appliances: Kitchen (Oven, Refrigerator, Dishwashers, etc.), Laundry (Washers and Dryers), Vacuums and Floor Care, and Air Purifiers (“Samsung,” 2020). o Smart Home: Smart Speakers and Home Monitoring Devices (“Samsung,” 2020). o Computing: Computers, Tablets, Monitors, and Computer Memory (“Samsung,” 2020). o Services: Repair, Warranty, Samsung Pay, and Bixby (Similar to Apple’s Siri) (“Samsung,” 2020).

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Customer Segments: Samsung targets nearly all customer segments, but they break it down into three primary sections. These sections are Samsung IT & Mobile Communications, Samsung Consumer Electronics, and Samsung Device Solutions (Dudovskiy, 2017). Each of these sections target nearly every group of individuals. In these sections they target ages 18-65, males & females, all occupations, all degrees of loyalty, and all user statuses (Dudovskiy, 2017). Some specific targeting does occur though in each section: o IT & Mobile: Trendy personality, middle/upper class, mainstreamer lifestyle (Dudovskiy, 2017).

4 o Consumer Electronics: Easygoing and cost-conscious personality, working/middle class, resigned and explorer lifestyle (Dudovskiy, 2017). o Device Solutions: Trendy and ambitious personality, middle/upper class, mainstreamer lifestyle (Dudovskiy, 2017). 

Current Financial State: Samsung is currently classified as a large company and is very well off. Last year, they made 230 trillion KRW in revenue (270 billion USD), with 21.7 trillion KRW in net profit (19.5 billion USD) (“Financial Highlights,” 2020). Since the company is considered well established, they make a net profit each year. 2019 was considered a low year as the year previous had a net profit of 44.3 trillion KRW (40 billion USD) (“Financial Highlights,” 2020). The company’s total assets regularly grow each year, as well as their cash flows (“Financial Highlights,” 2020).

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Samsung’s biggest operational issue was in 2019. In 2019 their profits had dropped 56% (“Samsung Profits,” 2019). Samsung stated that this drop was primarily due to “a limited recovery in demand,” and “changes in the global macroeconomic environment” (“Samsung Profits,” 2019). Essentially, the demand for new smartphones dropped, primarily because most people already own a smartphone and felt that there was no need to upgrade to Samsung’s latest offering in 2019 (“Samsung Profits,” 2019). Another hit that the company had in 2019 was the release of the Samsung Galaxy Fold (“Samsung Profits,” 2019). This smartphone was released with many defects and tanked the reputation of the phone. On release, when this smartphone would fold, the screen often would crack defeating the purpose of a foldable screen (“Samsung Profits,” 2019).

5 References Dudovskiy, J. (2017, December 18). Samsung Segmentation, Targeting and Positioning: multisegment, imitative and anticipatory. Retrieved from Business Research Methodology: https://research-methodology.net/samsung-segmentation-targeting-positioning-multisegment-imitative-anticipatory/ Financial Highlights. (2020). Retrieved from Samsung: https://www.samsung.com/global/ir/financial-information/financial-valuation-snapshot/ Get to know the CEO. (2020). Retrieved from Samsung: https://www.samsung.com/us/aboutsamsung/company/executives/ceo/ Legal. (2020). Retrieved from Samsung: https://www.samsung.com/global/business/networks/info/legal/ Samsung. (2020). Retrieved from Samsung: https://www.samsung.com/us/ Samsung Electronics America Inc. (2020). Retrieved from SICCode.com: https://siccode.com/business/samsung-electronics-america-inc Samsung profits tumble as it warns of 'challenges' ahead. (2019, July 31). Retrieved from BBC News: https://www.bbc.com/news/business-49173984...