 INTRODUCTION

Samsung was established in 1938 whose brands can now be found worldwide, representing
everything from home appliances to highly sophisticated digital products. Samsung aims to attract
and nurture the best talents, and to foster a corporate culture in which it can thrive.

The CEO of Samsung is Jong-Yong Yun. Samsung is a Korean electronics company. Ever since it
was founded in 1938, Samsung has continually refined its mission statement to respond both to
change in itself and in the world: "Economic contribution to the nation”, "Priority to human
resources”, "Pursuit of rationalism". Each slogan represents significant moments in Samsung’s
history, reflecting different stages of the company's growth from a domestic industrial leader into a
global consumer electronics powerhouse.

In the 1990's, Samsung once again acknowledged the need to transform its mission statement to
keep pace with growing global operations, rapid changes in the world economy, and escalating
competition from well-established rivals.

MANAGEMENT PHILOSOPHY
"We will devote our human resources and technology to create superior products and services,
thereby contributing to a better global society."

This management philosophy represents Samsung’s strong determination to contribute directly to

the prosperity of people all over the world - a single human society.

SAMSUNG AS PUT FORWARD BY THE CEO:

“Key to our efforts is our own people, whose talent and creativity are dedicated to doing their best
at all times. Technology also plays an important role in making it possible to achieve higher
standards of living. And superior products and services are what we are all about.

We believe that the success of our contributions to society and to the mutual prosperity of people
across national boundaries truly depends on how we manage our company. Thus, we challenge the
world to create the future with our customers. Our determination is growth - a perpetual challenge -
but always working within the context of cooperation and inclusion of our customers.”

SAMSUNG LOGO (WORDMARK)

Samsung’s corporate logo was redefined to project Samsung’s firm determination to become a
world leader in 1993.

The Samsung name is now written in English, expanding its global presence throughout the world.
The name is superimposed over a dynamic, new logo design, giving an overall image of dynamic
enterprise that is on the move. The elliptical logo shape symbolizes the world moving through

1
space, conveying a distinctive image of innovation and change. The first letter, "S", and the last
letter, "G," partially break out of the oval to connect the interior with the exterior, showing
Samsung’s desire to be one with the world and to serve society as a whole.

Samsung is using two logos its blue coloring suggests both stability and reliability, while projecting
a warm felling. Samsung Electronics, being reborn as the company is responsible for the world’s
most innovative digital convergence in 21st century, has adopted a new corporate brand slogan.

SAMSUNG IN PAKISTAN
Samsung operating in Pakistan referred to as “Local Samsung” started in April 2000. It has its hub
quarter in Dubai and including Pakistan is operating in seventeen countries. Samsung in Pakistan is
operating through local partners in Pakistan. They are:

• Digital World Pakistan:

Deals in audio-visual.

• Document World Pakistan:

Trades in Information Technology.

• Venture and Mobile Zone:

Operates in mobile phones.

• National Electric Company:

Does business in white goods i.e. home appliances like washing machines,
refrigerators, microwaves, and vacuum cleaners.

DIGITAL WORLD (LOCAL SAMSUNG):

Market Slogan of Digital World is “Everyone’s invited”. Its Marketing Office is in Karachi and
Sales Offices are in five major cities Lahore, Karachi, Rawalpindi, Faisalabad and Multan.

SPECIFIED FOCUSED PRODUCT (TELEVISION):

• Samsung has a wide range of television for its customers in four different varieties of
television, i.e. Taunts Plasma, Taunts Projection, Plano Flat and Conventional and notebook

Coordinates everyone's efforts (particularly important as more companies try to integrate all of
their marketing activities.

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 LITRATURE REVIEW

A. SWOT Analysis
Analysis of Strengths, Weaknesses, Opportunities and Threats for an organization
is called SWOT ANALYSIS.

B. PEST Analysis

C. Porter’s model

D. Functional analysis

E. Financial Ratio Analysis

o Financial Analysis

Financial ratios are calculated from one or more pieces of information from a
company's financial statements. For example, the "gross margin" is the gross profit from
operations divided by the total sales or revenues of a company, expressed in percentage
terms. In isolation, a financial ratio is a useless piece of information. In context, however, a
financial ratio can give a financial analyst an excellent picture of a company's situation and
the trends that are developing.

There are different types of Financial Ratios, such as

1. Liquidity Ratios:

Which give a picture of a company's short term financial situation or solvency. It

contains

1. Current Ratio
2. Quick Ratio

2. Activity Ratio:

Which use turnover measures to show how efficient a company is in its operations
and use of assets. It contain

1. Average Collection Period

2. Inventory

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 3. Leverage Ratios:

Which show the extent that debt is used in a company's capital structure. It consist of

1. Debt Ratio
2. Debt – To – Equity Ratio

4. Profitability Ratio:

Which use margin analysis and show the return on sales and capital employed. It
contains

1. Gross Profit Margin %

2. Net Profit Margin %
3. Return on Assets (ROA)
4. Return on Equity (ROE)

o Marketing Analysis

4P’s of Marketing Mix

BCG MATRIX

 PROBLEM STATEMENT

Organizational analysis of Samsung.

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 Organizational Analysis of Samsung
 SWOT ANALYSIS
Analysis of Strengths, Weaknesses, Opportunities and Threats for an organization
is called SWOT ANALYSIS. The SWOT framework is a tool for auditing an organization and its
environment. SWOT is the first stage of planning and helps decision makers to focus on key issues.

S = strengths
W = weaknesses
O = opportunities
T = threats.

Strengths and weaknesses in the SWOT matrix are internal factors.

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Opportunities and threats in the SWOT matrix are external factors

SWOT can be used in conjunction with other tools for strategic planning, such as the Porter's Five-
Force analysis
In order to calculate SWOT analysis we have to calculate Internal Factor Evaluation (IFE) and
External Factor Evaluation (EFE).
1. Internal Factor Evaluation (IFE)
2. External Factor Evaluation (EFE)

The IFE Matrix together with the EFE matrix is a strategy-formulation tool that can be utilized to
evaluate how a company is performing in regards to identified internal strengths and weaknesses of a
company. The IFE matrix method conceptually relates to the Balanced Scorecard method in some
aspects.

INTERNAL FACTOR EVELUATION:

It is a strategic management tool for auditing or evaluating major strengths and weaknesses in
functional areas of a business. IFE matrix also provides a basis for identifying and evaluating
relationships among those areas. The Internal Factor Evaluation matrix or short IFE matrix is used
in strategy formulation.

STRENGTHS
SAMSUNG has the following strengths and is in more competitive position in these areas than its
competitors. Following are the main strong points of SAMSUNG

 High brand reputation

 High R&D Capability

 Extended guarantee Service
 High loyalty
 Unique health theme
 Large market Share
 Latest technology
 Unique quality of the picture tube
 Wide range of product line (models) product variety
 Strong financial position
 Pioneer in the Electronics world.

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  Advance Features
 Superior sound quality
 Free repair and parts for one year

WEAKNESSES
SAMSUNG has some weaknesses in operating the business. If SAMSUNG get control on these
weaknesses then it can become a market leader in the home appliance.

 Expensive
 sales network still undeveloped
 Lacking market Control
 market tactic Is normal

Internal Factor Environment Matrix

No Strength Weight company score
response
1 High brand reputation 11 4 .44

2 High R&D Capability 10 3 .3

3 Extended guarantee 9 2 .18

Service

4 High loyalty 8 4 .32

5 Unique health theme 4 2 .08

6 Large market Share 8 3 .24

Weakness

1 Expensive 15 4 .6
2 sales network still 13 2 .26
undeveloped

3 Lacking market Control 12 1 .12

4 market tactic Is normal 10 3 .3

Total 100 2.84

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1-Very Good
2-Good
3-Poor
4-Very poor

The result shows that company is good in its strengths and weakness because 3 is for good
and SAMSUNG has the score of 2.84 so it is in good ife position.

EXTERNAL FACTOR EVELUATION

This method is a strategic-management tool often used for assessment of current business
conditions. The EFE matrix is a good tool to visualize and prioritize the opportunities and
threats that a business is facing.

OPPORTUNITIES
SAMSUNG has opportunities for expansion the business. If Samsung work to get the they can
perform well..

 It can capture potential market

 launch new model
 Improve packaging
 Invest in R&D
 capture large market share
 Improve existing design

THREAT

SAMSUNG Company exist in very competitive market. It has many threats for the present
situations. Company should make its policies and strategies according to these threats. So
following are the main threats

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  Number of competitor increasing
 lack of distribution
 No political affiliation
 Import duties on the product
 political instability

External Factor Environment Matrix

N Opportunities Weight Company response Score
o

1 launch new 15 3 .45

model
2 Improve 12 2 .24
packaging

3 Invest in R&D 10 4 .4

4 capture large 8 3 .24

market share

5 Improve existing 5 2 .1
design

Threats

1 Number of 14 3 .42
competitor increasing
2 lack of 11 3 .33
distribution
3 No political affiliation 10 1 .10

4 Import duties 9 2 .18

on the product

5  political 6 4 .24
instability

Total 100 2.7

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EI MATRIX
External factor
Environment

S w

O T
Internal Factor

SWOT ANALYSIS OF SAMSUNG

We observe from the above shown matrix that SWOT analysis of SAMSUNG is quite good. This
Matrix shows all the four factors in detail, Strengths, Weaknesses, Opportunities, and Threats of
SAMSUNG. The SWOT analysis shows the company’s current position, so this matrix shows that
SAMSUNG is good in its position

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  PEST ANALYSIS
Pest analysis is a very important tool in marketing. Through Pest Analysis company comes
to know about its threats and opportunities as well as its social obligations that society
expects from it. Moreover it will come to know the importance of technology in the
industry while comparing with the competitors on the technology basis. It can benchmark
itself to improve technology and its product line as well.

Pest analysis of Samsung is given as follows :

1. POLITICAL/LEGAL ENVIRONMENT:
Pakistan has been facing political instability. One government come into power, makes plans and
policies and tries carrying them out accordingly. Another government rejects these plans and goals
of the previous government and sets them on its own from a zero point again.
So the political instability causes lack in the foreign investment due to higher risk.

As the smuggling is increasing this not only affects the company’s objectives but also
affects the industry’s profitability as well. Government is not taking severe measures to
discourage smuggling, which is threatening the company.

Company does not have any sound platform to protest against smuggling and unfair
means. Additionally there are certain rules and regulations of the state which company has
to oblige by to remain in the business.

2. ECONOMIC ENVIRONMENT:
As for as economic conditions are concerned, the economy of Pakistan has been suffering
for the last 30 years.

As compared to the 90s when Pakistan sustained a double-digit inflation, the current inflation rate
of 3.7%, has attributed greatly to the declining trend in the prices. With lower inflation and
relatively stable economy, foreign investment is starting again in this industry. So the competition
also helps in lowering the prices.

3. SOCIAL ENVIRONMENT:

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As Pakistan is a developing country, it lacks the recreational facilities for its masses. So
most of the people use TV for their entertainment. So there is potential market for
Samsung.

Most of the people belong to middle and lower middle class, so the life style of these
people are similar and they share common preferences and interest.

So 14" TV is the best product that has established the Samsung brand name of the Sony
and secondly the 14" is more appropriate for major population in Pakistan because it
fulfils their requirement along with economic constraints. As the economic circumstances
of these households suit to this product particularly (i.e. 14" TV only), so it is appropriate
for Samsung to concentrate on this product, keeping in mind the economic conditions of
the target market.

As Samsung has strong brand image, so the reference group can be a source of boosting up its sales.
So all the social factors like age, income, life style etc. favors Samsung 14" TV.

4. TECHNOLOGICAL ENVIRONMENT:
Samsung has latest technology, due to which it has attracted the most consumers (i.e. market share
25%).
Samsung has conventional quality due to which more natural colors are displayed. Tantus
results in more prominent colors. Plano screening has reduced the eye fatigue. PAL,
SECAM, NTSC, modes have made it possible for Samsung TV to operate in any
geographical area of the world.

All these latest technologies have made Samsung unique in the world of electronics. So
there are no such technological factors, which can destroy Samsung marketability and
brand image. Reason behind this is the research and development of Samsung. Samsung
has been investing a lot of money in the research and development to come up with
products that satisfy customers’ needs and wants.

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 PORTER MODEL

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Porter’s five forces:

The industry-based view of strategy is underpinned by the five forces framework, first
advocated by Michael Porter. This model consists of five forces, which are

(1) The intensity of rivalry among competitors.

(2) The threat of potential entry.
(3) The bargaining power of suppliers.
(4) The bargaining power of buyers.
(5) The threat of substitutes.

A key proposition is that firm performance critically depends on the

degree of competitiveness these five forces have within an industry. The stronger and
more competitive the five forces are, the less likely that firms in an industry are able
to earn above-average returns, and vice versa (Mike W.Peng,2006)

 The intensity of rivalry among competitors.

There are at least six sets of conditions that will cause intense rivalry. They are
1) A big number of competitors
2) Similar size of competitors
3) Infrequently purchases
4) A high increasing margin of new unit capacity
5) Slow industry growth

 Threat of New Entry:

The incumbent’s primary weapons are entry barriers. There are at least 5 attributes associated with
high entry barriers.
1) The scale-based low cost advantages.
2) The non-scale-based low cost advantages.
3) Product differentiations
4) Excess capacity
5) Government policy banning or discouraging entries.

 Bargaining Power of Suppliers:

There are four conditions that lead to strong bargaining power for suppliers.
1) Only few firms dominate the supply industry.

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2) Suppliers provide unique, differentiated products with few or no substitutes.
3) The focal firm is not an important customer for suppliers
4) Suppliers can enter the focal industry by forward integration.

 Bargaining Power of Buyers:

There are four conditions that can give strong bargaining power to the buyers
1) A small number of buyers leads to strong bargaining power
2) The products do not clearly produce cost savings or add value for buyers
3) The products are standard, undifferentiated commodities
4) The buyers have economic difficulties
5) The buyers can enter the focal industry through backward integration

 Threat of Substitutes:

Two areas of substitutes are particularly threatening.

1) The substitutes have superior quality and function when compared to existing products.
2) The switching costs are low

Rivalry among Competitors:

The direct competitor of SAMSUNG is LG in electronic market . The SAMSUNG market share is much greater as
compare to LG in the mobile phone industry .The LG is market leader in the TV and SAMSUNG is still on second
number in branded tv’s.The SAMSUNG is the leader and number one in latest tv’s model. In window room air conditioner

LG market share in greater than SAMSUNG .

DISTRIBUTION OF BRANDED TELEVISIONS

20% 8% 3%
45%

25%

LG SAM PHL SONY PAN

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RISK OF NEW ENTRY BY POTENTAL COMPETITORS
High Investments
With the new inventions threat for new entrants is high in this industry due to the fact that this
industry is a relative to the new devolped products so this is very attractive for foreign companies.
But in order to really make a mark in this industry, you need to have strong investment and funding
to devolep new design and latest technology. For this matter, SAMSUNG is at risk of the influx of
foreign investments in this sector.

China Products
China brands are a big threat for local and original brands. The price of china brands is low as
compared to local and foreign brands. Foreign brands have captured the market of split AC and
television. LG and Samsung are the market leader in television sector but china tv’s sales increase
day by day. foreign and Local brands can’t compete China brands in this sector of low price.

THE BARGAINING POWER OF THE BUYERS

Company’s buyers are the people who ultimately purchase and consume its products. If there are so
many brands and products available in the market at different prices, the bargaining power of the
buyers will be high because they have many alternatives, they can demand to lower the prices. On
the other hand if there are few brands or companies in the market, then the buyers will be in a weak
position to bargain. As a result, the company can raise its prices and earn greater profits. If we see
the Pakistani industry the bargaining power of the buyers is very high because a variety of products
are available in the market at different prices. So the buyers can choose the product according to his
requirements.

Samsung target the middle class market segment And manufactures few products for upper class in
Pakistan.

THE BARGAINING POWER OF THE SUPPLIERS:

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When Suppliers are few in the market they look like a threat. In that case, the suppliers are able to
force up the price of inputs. The after effects of that can result in the reduction in the quality of
inputs. If the suppliers of Samsung are weak then company will force the suppliers to reduce the
prices of input and demand for higher quality. If the suppliers are selling the products that have very
few substitutes and are differentiated from others, then the suppliers are always in good bargaining
position.

SUBSTITUTE PRODUCTS
Samsung products are unique in style.There is no real substitute for the products of this Samsung.
Plasma panels and lcd tv have there own attributes. Mobile phones can be substitutes for these
products, but these substitutes are more costly and can’t be easily approached.

Opportunities Threats
High Low Low High

Launch new model Up gradation Illiteracy No of Competitors

Improve Packaging Capture potential market No Political affiliation Lack of distribution

Invest in R&D Increase sales promotion Import duties on the Protest against smuggling
product

Improve existing design Improve repair service Political instability

Capture large market

share

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  FINANCIAL ANALYSIS

 Liquidity ratios

1. Current Ratio
:

Formula Current Ratio = Current Assets/ Current Liabilities

Purpose It show a company firm ability to cover its current liabilities with its current assets

Computation

Company Year Value Current

Ratio
SAMSUNG 2009 41901014/29795976 1.41
2008 48968556/32207070 1.52
2007 41901014/297995971 1.41
LG(life’s good) 2009 23812040/19973816 1.19
2008 22279137/20400497 1.04
2007 17326382/15078249 1.15

CURRENT RATIO (2007-2009)

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 1.6 1.52
1.41 1.41
1.4
1.19 1.15
1.2
1.04
1

0.8 SAMSUNG
L.G
0.6

0.4

0.2

0
2009 2008 2007

o Samsung:

On the basis of the information available and ratio comparison, it can be concluded that it
is In increase in 2007 to 2008.and decrease in 2008 to 2009.but Company current ratio is
acceptable and company meets its obligation easily.

o L.G

On the basis of the information available and ratio comparison, it can be concluded that it
is In decrease in 2007 to 2008.and increase in 2008 to 2009.but Company current ratio is
acceptable and company meets its obligation easily.

o COMPARISION

Samsung current ratio is grater than L.G. and company current ratio is acceptable. Company
meets its obligation easily as compare to L.G. the Samsung current ratio is for three years
is average 1.52 and the leading competitor of Samsung electronics is LG which has average
1.14.the Samsung current ratio is greater than its competitor .so the higher the current
ratio the higher the ability of the firm to pay its bills .the median ratio for industry is 2.1

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 2. Quick Ratio

Formula Quick ratio = (Current Assets-Inventory)/Current Liabilities.

Purpose Acid Test Ratio or Quick Ratio shows a firm’s ability to meet current
liabilities with its most liquid assets.

Computation:

Company Year Value Current

Ratio
SAMSUNG 2009 (41901014-7968803)/29795976 1.14
2008 (48968556-9492607)/32207070 1.23
2007 (41901014-7968803)/29795976 1.14
LG(life’s good) 2009 (23812040-6614937)/19973816 0.86
2008 (22274137-6448628)/20400497 0.78
2007 (17326382-5708260)/15078249 0.86

QUICQ RATIO (2007-2009)

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o Samsung:
On the basis of the information available and ratio comparison, it can be concluded that it
is Increased in 2007 to 2008.and decrease in 2008 to 2009.but Company quick ratio is
acceptable and company meets its obligation easily.

o L.G
On the basis of the information available and ratio comparison, it can be concluded that it
is Decrease in 2007 to 2008.and increase in 2008 to 2009.but company quick ratio is less
than acceptable value and company face some problem to meets its obligation easily.

o COMPARISON
Graph shows the Samsung company quick ratio is grater than L.G .and Samsung meet its
current liabilities easily. And L.G current ratio is less than acceptable value 1:1.and
Company face some problem to meet its obligation.

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 3. Average Collection Period

Formula Average Collection Period = Accounts Receivable (365) /Annual credit Sales.

purpose this tells us the average number of days for which receivables are outstanding before
being collected.

Computation:
Company Year Value A.C.P
SAMSUNG 2009 (19140558)(365)/138993671 50.26
2008 (13602258)(365)/121294319 40.93
2007 (12114275)(365)/98507817 44.89
LG(life’s good) 2009 (982946)(365)/72952346 4.92
2008 (1171939)(365)/63280391 6.76
2007 (1112961)(365)/53426741 7.60

A.C.P (2007-2009)

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EXPLANATION
Samsung

On the basis of the information available and average collection period comparison, it can be
concluded that it is Decrease in 2007 to 2008.and increase in 2008 to 2009.It shows company
convert its receivable into cash in 50.6 days.

L.G
On the basis of the information available and average collection period Comparison,
it can be concluded that it is Decrease in 2007 to 2008.and decrease in 2008 to 2009.It shows
company convert its receivable into cash in 4.92 days.

Comparison
The LG average collecting period is extremely very good as compare to the Samsung.

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 4. INVENTORY TURNOVER RATIO
Formula

Inventory Turnover Ratio = CGS/Inventory

Purpose;
The ratio tells us how many times inventory is turned over into receivables through
sales during the year

Computation:

Company Year Value I.T.O Ratio

SAMSUNG 2009 98445032/7968803 8.08
2008 89762355/9492607 9.45
2007 98445053/9981064 9.82
LG(life’s good) 2009 55997877/6614937 8.46
2008 47707805/6448628 9.81
2007 41351661/5708260 9.36

INVENTORY TURNOVER RATIO (2007-2009)

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Samsung:
On the basis of the information available and ratio comparison, it can be concluded that it did not
show a low change of decreasing from 2007-2008, and in 2008-2009 it can conclude that the
inventory turnover ratio is decrease thus implies the company was able to maintain the level of
inventory.
L.G
On the basis of the information available and ratio comparison, it can be concluded that it did not
show a significant change of increasing `from 2007-2008, and in 2008-2009 it can conclude that the
inventory turnover ratio is decrease thus implies the company was able to maintain the level of
inventory.

Comparison
L.G inventory turn over ratio is more as compare to Samsung.and its sales are more than Samsung.

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  Financial leverage ratios

5. Debt Ratio

formula Debt Ratio = Total Debt /Total Assets

Purpose Current Ratio shows a firm’s ability to meet current liabilities with its current
assets.

Computation:

Company Year Value Debt ratio

SAMSUNG 2009 14286528/118281488 0.12
2008 17063967/105300650 0.16
2007 14283975/93375136 0.15
LG(life’s good) 2009 6196900/44756799 0.16
2008 9692610/42372289 0.23
2007 7137875/34584427 0.12

DEBT RATIO (2007-2009)

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Samsung
Company debt ratio is increase in 2007-2008 and decrease in 2008-2009.because the company total
debts are decrease in 2009.company position is good because the acceptable value of debt ratio is
1:1 or less than 1.

L.G
Company debt ratio is increase in 2007-2008 and decrease in 2008-2009.because
The company total debts are decrease in 2009. Company position is good because the acceptable
value of debt ratio is 1:1 or less than 1.

Comparison:

Samsung debt ratio is low as compare to L.G.and Samsung and L.G has good debt ratio.
And debt ratio is less than 1

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 6. Debt-to-Equity Ratio

Formula Debt-to-Equity Ratio=Total Debt /Total Equity

Purpose The ratio tells us that creditors are providing which amount of
Financing for each 1 currency unit being provided by share holders.
Computation:

Company Year Value D.T.E

SAMSUNG 2009 14286528/66827702 0.21
2008 17063967/58117009 0.29
2007 14283975/51665687 0.28
LG(life’s good) 2009 7220498/17233965 0.42
2008 9692610/14792572 0.66
2007 7137375/12827954 0.56

DEBT TO EQUITY (2007-2009)

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EXPLANATION

Samsung:
On the basis of the information available and ratio comparison, it can be concluded that it
increased in the year 2007-08 due to decrease in shareholder funds and in 2008 to 2009 ratio is
decrease due to shareholder is increase.

L.G
On the basis of the information available and ratio comparison, it can be concluded that it increased
in the year 2007-08 due to decrease in shareholder funds and in 2008 to 2009 ratio is decrease due
to shareholder is increase.

Comparison
`We can see that L.G has a higher proportion of debt in total long term funds available as
Compared to Samsung.

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  Profitability ratios

7. Gross Profit Margin %

Formula Gross Profit Margin % =Gross Profit / Sales

Purpose the gross profit margin is the the measure of firms profitability of sales
after taking amount of goods sold.
Computation:
Company Year Value G.P.M
SAMSUNG 2009 40048639/138993671 0.29
2008 31531964/121294319 0.26
2007 27626905/98507817 0.28
LG(life’s good) 2009 16954469/72952346 0.23
2008 15573306/63280391 0.24
2007 12075080/53426741 0.22

GROSS PROFIT MARGIN (2007-2009)

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 0.18 0.17
0.16
0.16 0.15 0.15
0.14

0.12
0.1
0.1
SAMSUNG
0.08 0.07 LG
0.06

0.04

0.02

0
2009 2008 2007

EXPLANATION

Samsung
On the basis of the information available and ratio comparison, it can be concluded that it was
decreasing consistently as the profit was decreasing and the sales was increasing. In 2007 to 2008
company gross profit is decreased and in 2008 to 2009 is increased.

L.G
On the basis of the information available and ratio comparison, it can be concluded that it was
decreasing consistently as the profit was decreasing and the sales was increasing. In 2007 to 2008
company gross profit is decreased and in 2008 to 2009 is increased.

Comparison
L.G gross profit margin is high as compare to Samsung.

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 8. Net Profit Margin
Formula Net Profit Margin = Net Income/Sales
Purpose The Net profit margin is the measure of firms profitability of
sales after taking amount of all expenses and income taxes. It tells us a
Firm’s net income per dollar of sales
Computation

Company Year Value N.P.M

SAMSUNG 2009 10229921/138993671 0.07
2008 5890214/121294319 0.05
2007 7922981/98507817 0.08
LG(life’s good) 2009 2790814/72952346 0.03
2008 1138872/63280391 0.01
2007 2068698/53426741 0.03
NET PROFIT MARGIN (2007-2009)

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 0.09

0.08

0.07

0.06

0.05
SAMSUNG
0.04 LG
0.03

0.02

0.01

0
2009 2008 2007

EXPLANATION

Samsung
Company net profit margin is decrees in 2007-2008 and in 2008-2009 is increase. Company sales
are increase and company profit is increase in 2009.
L.G
Company net profit margin is decrees in 2007-2008 and in 2008-2009 is increase. Company sales
are increase and company profit is increase in 2009.

Compression
Samsung profit is more as compare to L.G. and its sales and profit is high as compare to L.G

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 9. Return on Assets (ROA)

Formula Return on Assets (ROA) = N.P.A.T /Total Assets

Purpose This shows the rate of return in investments

Computation:

Company Year Value R.O.A

SAMSUNG 2009 12565050/118281488 0.11
2008 6577775/105300650 0.05
2007 9632873/93375136 0.10
LG(life’s good) 2009 3442130/44756799 0.07
2008 1619027/42372289 0.03
2007 2378901/34584427 0.07

RETURN ON ASETS (2007-2009)

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EXPLANATION
Samsung
There is a decrease in the return on asset in 2007-2008 as compared to in2008-2009. The
company net profits have increase in 2009 as compared to in 2008 and company return on assets is
increase in 2009.
L.G
There is a decrease in the return on asset in 2007-2008 as compared to in2008-2009. The
company total net profits have increase in 2009 as compared to in 2008 and company return on
equity is increase in 2009.

Comparison
Samsun return on equity is more as compare to L.G. because its net profit is more as compare to
L.G

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 10.Return on Equity (ROE)

Formula Return on Equity (ROE) = Net Income / Stockholders' Equity

Purpose Measure of overall firm performance is return on equity.
Computation:

Company Year Value R.O.E

SAMSUNG 2009 10229921/66827702 0.153
2008 5890214/58117009 0.10
2007 7922981/51665687 0.15
LG(life’s good) 2009 2790814/17233965 0.17
2008 1138872/14792572 0.07
2007 2068698/12827951 0.16

RETURN ON EQUITY

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EXPLANATION

Samsung

There is a decrease in the return on equity in 2008 as compared to in 2009 return on equity
is increase. The company average total equity has increased from 2009 and has resulted in increase
because company net income is increase as compare to 2008.

L.G

There is a decrease in the return on equity in 2008 as compared to in 2009 return on equity
is increase. The company average total equity has increased from 2009 and has resulted in increase
because company net income is increase as compare to 2008.
Comparison

L.G return on equity is more as compare to Samsung.

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  4P’s of Marketing Mix
A "Marketing Mix" is the set of controllable, tactical marketing tools that work
Together to achieve company's objectives, they are: product, price, promotion and place. Although
some marketers have added other P's, such as personnel, packaging and physical evidence, the
fundamentals of marketing typically identifies the four P's of the marketing mix as referring to:

• Product: A tangible object or an intangible service that is mass produced or manufactured on a

large scale with a specific volume of units. Intangible products are often service based like the
tourism industry & the hotel industry.
Typical examples of a mass produced tangible object are the motor car and the disposable razor. A
less obvious but ubiquitous mass produced service is a computer operating system.The SAMSUNG
products are cell phones, plasma panels,lcd tv’s,aircooling items, mass storage devices, and
different type of home appliance. Samsung Product Line comprises of:

A. Mobile Phones
B. Audio-Visual
C. IT Items

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 D. Home Appliances
E. Semiconductors
F. Compressors
G. CCTVs
A. MOBILE PHONES:
 GSM
 CDMA
 TDMA
 CORDLESS PHONE

B. AUDIO-VISUAL
 TV
 DVD Player
 Camcorder
 VCR
 Digital Set Top Box
 Digital Audio Player
 Home audio
 Portable Audio
 Note PC
 LCD TV
 Monitor and Industrial
 Small and Mediums
C. IT ITEMS:
 Notebook PCs
 Hard Disk Drive
 CD/DVD-Rom
 CD/DVD-Writer
 Monitor
 Printer

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 Multi Function Products
 Fax
D. HOME APPLIANCES
 Refrigerator
 Air Conditioner
 Microwave Oven
 Washing Machine
 Vacuum Cleaner
E. SEMI CONDUCTORS
 DRAM
 Flash and Smart Media
 SRAM
 URAM
 MCP
 Graphics Memory
 Mask ROM
 System LSI
 ASIC
F. COMPRESSORS
 Recipro Compressor
 Rotatory Compressor
G. CCTVS
 Cameras
 Smart Dome Systems
 Monitors
 Network Security
 Controllers
 VCRs
 DVRs

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Price – The price is the amount a customer pays for the product. It is determined by a number of
factors including market share, competition, material costs, product identity and the customer's
perceived value of the product. The business may increase or decrease the price of product if other
stores have the same product. Price fixation is an important aspect of marketing. Pricing decisions
of a company are affected by both internal as well as external factors.
Internal Factors:
Internal factors, affecting the price of a product, are many. Cost of the product sets the floor. Any
company would like to charge a price which covers the cost of the product and a fair rate of return.
Cost of the product means total cost i.e., fixed plus variable costs. Fixed costs do not change with
the change in volume of production up to a certain level. Variable costs change proportionately. In
the period of recession, companies continue to supply at a rate which covers variable costs and as
much of costs as possible. The Company’s marketing objective is yet another important variable for
price fixation. If it is survival, the company would stay in the market as long as it covers variable
costs fully and fixed costs partly. In case it is market leadership, a low price will be fixed initially
The internal factors that affecting the Samsung is that was his high variable cost .the Samsung
research variable cost is very high it create special research centre in Korea
External Factors:
Besides internal factors, external factors also influence the pricing decision of a company. These
factors are called environmental factors. Nature of demand, competitors’ costs, price offers and
government policy are very important factors to be considered while fixing prices.
The relationship between price and demand should be analysed properly. No company can ignore
the costs, prices and offers of substitute items from competitors. Economic factors, like rate of
interest, state of industry (boom or recession), inflation, etc. affect the price-fixing decision. In case
of certain products, e.g. products which fulfill basic needs, government may impose price control.
Thus, it would also affect price of the product.

In Pakistan the middle class people are in majority so they want those items that Has not so costly
and the items filled there desires like costly products. Samsung Focus on this nature .for example
his mobile as unique .its competitors cost is very high and quality is slightly high like nokia. Or
some competitors have low price but quality is low.

• Place – Place represents the location where a product can be purchased. It is often referred to as
the distribution channel. It can include any physical store as well as virtual stores on the Internet.
Place is another important element of marketing mix. Once the goods are manufactured, packaged,
priced and promoted, they must be made available to the consumers. Activities related to placing
the products are covered under this element of marketing-mix. It consists of decisions relating to
channels of distribution and physical distribution. Channels of distribution refer to the individuals
and organizations which facilitate moving the goods from manufactures to consumers. It is
important that regular and smooth flow of goods is maintained so that products are not spoiled and
supplies are not delayed. To ensure this, various facilitating services need to be arranged like
transportation, warehousing, inventory control, and order processing. These are known as

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components of physical distribution Samsung focus the place .it place it’s items in all big stores.
Samsung introduces a new place program its open its sales centre in all the big customer care
centers of the distribution countries .for example in Mobile Zone service centre Samsung open it’s
sales center.

• Promotion – Promotion refers to using methods of communication with two objectives : (i)
informing the existing and potential consumers about a product, and (2) to persuade consumers to
buy the product. It is an important element of marketing mix. In the absence of communication,
consumers may not be aware of the product and its potential to satisfy their needs and desires.
Various tools of communication form part of promotion mix
There are four components of promotion-mix i.e., advertising, personal selling, sales promotion and
public relations. Thus, promotion mix is a company’s total communication programs which consist
of different blends of its components.

Advertising:
Advertising is an impersonal form of communication for which the seller pays in order to promote
a physical product or service. It may be in print form as in newspapers and magazines, or in audio
form as on the radio and other similar methods, or in audio-visual forms as on
the Television, cinema screen, etc Samsung use new advertising techniques. For example Samsung
uses buses advertisement now days.

Personal selling:
Personal selling is a personal communication with one or more prospective buyers for the purpose
of selling a product or service. These days, personal selling is considered to be the most effective
tool because of various characteristics which are listed below l it involves personal interaction;
hence feed back is received immediately

Sales Promotion
Sales promotion means the use of short-term incentives which are designed to encourage immediate
purchase of a product or service by the buyer. It may includes offer of discounts, free gifts, free
sample, coupons, demonstration, store display, etc

Publicity:
Publicity takes place when a favorable presentation is made through mass media about a product or
service. People believe more on such news than in advertising. It covers people who do not
entertain personal selling and sales promotion approaches. It is a non-paid form of communication
but sometimes it is not regarded as a promotional tool within the reach of a company.

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BCG MATRIX
Using the Boston Consulting Group(BCG) approach, a company classifies
all its SBUs according to the growth share matrix portfolio planning method that evaluates a
company’s strategic business units in terms of their market growth rate and relative market share.
The BCG matrix method is based on the product life cycle theory that can be used to determine
what priorities should be given in the product portfolio of a business unit. To ensure long-term value
creation, a company should have a portfolio of products that contains both high-growth products in
need of cash inputs and low-growth products that generate a lot of cash. It has 2 dimensions: market
share and market growth. The basic idea behind it is that the bigger the market share a product has
or the faster the product's market grows the better it is for the company.SBUs are classified as stars,
cash cows, question mark and dogs.

BCG MATRIX FOR SAMSUNG

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Stars
Stars are high growth, high market share businesses or products. In Samsung
Company, their Plasma panels is its star position. Those products have large number of
sales and they have high growth and good position.

Cash cows
Cash Cows are low growth, high market share businesses or products. In Samsung
Company, their optical storage is its cash cows position. They generate large number of revenue for
company. They are at stable position.

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Question mark
Question marks are low share business units in high growth markets. In Samsung
Company, their mobile phones are its question mark position because Samsung introduce new and
latest mobiles in market so its mobiles have low market share but high growth. Samsung latest
mobiles are Corby pro, Corby2, Corby touch, mina pro.

Dogs
Dogs are low growth, low market share businesses and products. In Samsung
Company, Vcd or DVD is products that are at dog position .

PRODUCT LIFE CYCLE

The life time of a product shows whole the life of a product. The course of a product’s sales and
profits over its lifetime it includes four major stages:
 Introduction
 Growth
 Maturity

 Decline

 INTRO DUCTION:
In this stage a product is launched into the market in a full scale marketing program
it has gone through product development, including idea generation, idea screening, and

prototype and market tests. For new products normally there is very little direct competition.

Samsung introduce new and and unique type of goods. Led TV is the new product for
market.

 GROWTH:

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 Growth stage also called market acceptance stage. In this stage sales volume
and profits rises and competitors enter the market. At the end of growth stage,
profit starts to decline. The SAMSUNG dual sim mobile has very high growth rate

 MATURITY:

During Maturity stage, sales continuous to increase at decreasing rate. When sale’s level off,
profits of both producer and middlemen declines. The primary reason is intense price competition.

The lcd or plasma TV is in maturity stage now a days.

 DECLINE:
. In this stage profit and sales volume of the product both decrease rapidly and
finally its life comes to an end.

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 Every product has its own life cycle, and each stage in product's life-cycle represents a
different profile of risk and return. In general, a company should maintain a balanced portfolio of
products. Having a balanced product portfolio includes both high-growth products as well as low-
growth products.

A high-growth product is for example a new one that we are trying to get to some market. It
takes some effort and resources to market it, to build distribution channels, and to build sales

infrastructure, but it is a product that is expected to bring the gold in the future.

they are getting, and the price does not change much either. This product has only limited
budget for marketing. There is the milking cow that brings in the constant flow of cash.

 CONCLUSION

Samsung– a market leader in Electronic has installed latest process

technology to produce high quality products. In order to run and manage such
sophisticated plant, they have employed large number of professionals in all fields
i.e. Engineering, Marketing, Finance/Accounts, General Management &
Administrations. To manage and motivate all these people has highly qualified team
in every Department. As a Electronic market tough competition Samsung also face
tough competition but it meet all the challenges effectively.

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  RECOMMENDATIONS

 The company should increase its sales centre.

 It should be increase in reliability in products
 It should be decrease average collection period to need it expenses rapidly
 Changing its design
 Take part in social activities

 REFERANCES

 Interview of Mr. Kaleem Khan (Sales Manager, Samsung Temple road, Abid
Market)

 Interview of Mr. Mohammad Akmal (Incharge, Samsung Cavalry Display

Center).
 Interview of Mr. Mohammad Bilal (Sales Executive, Samsung Cavalry Display
Center).
 www.samsung.com

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 www.google.com

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