International Investment & Trade
Field Assignment on Samsung Electronics
Iemke Postma Milad Beyki Wais Anwari
342695 346281 344556
International Investment & Trade Field Assignment 2011
Description, history, and structure of the company
Samsung Group Co was found in 1938 in Seoul-South Korea by Byung Chull Lee. For over 70 years, Samsung Electronics has been dedicated to making a better world through diverse businesses that today span advance technology, semiconductors, skyscraper and plant construction, petrochemicals, fashion, medicine, finance, hotels, and more (Samsung, 2010). Samsung Electronics is one of the subsidiaries of Samsung Group that was found after 31 years in 1969. In 1983 Samsung Electronics build an assembly line in Portugal to provide the European market with the capacity of 300,000 TVs per year. In 1984 started another plant in USA with capacity of producing 1,400,000 TVs, Microwaves, and also another plant in UK with the capacity of 1,000,000 in producing TVS, Ovens, and VCRs. These two plants had cost them around $50 million. Around 1987 Samsung's annual revenue capped $25 billion that was almost 19% of the GDP of South Korea (Samsung, 2011). After the death of the owner, his son Kun Lee concentrated on Samsung Electronics more than ever. He improved the quality and the employees' motivation and started heavy relationship with foreign investors and companies. His main focus was on semiconductors. After 4 years their revenue doubled. During this period Kun decided to sell out some divisions and had bought some companies such as Harris Microwave semiconductor. They also did good business in the division of chemicals and engineering. The company earned around $15 billion by 1994. By that time the 4 MB DRAM made them the leader in the market for semiconductor chips. In the past 20 years they have been investing heavily in R&D. To introduce their 64 MB DRAM they spent around 2.4 billion in research. Now the company is the largest in...