Strategic Planning for Samsung

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Strategic Planning for Samsung by: Ardiansyah Jombat Ismail Company Background Samsung, or “Three Stars” in Korean, was first founded in 1938 by Byung-Chull Lee. The company splits its history into 7 eras of major accomplishments. From the beginning, the primary focus of the business was trade export of products such as dried fish, vegetables and fruit to other parts of Asia. In the 10 years following its debut, Samsung expanded to producing flour and confectionary and founded its own manufacturing and sales operations. Several acquisitions were made by Samsung between 1938 and 1969, which are now all subsidiaries of Samsung Corporation, namely Samsung Life Insurance, Samsung Everland, and Samsung Fire & Marine Insurance (Samsung, 2011). From 1970 to 1979, Samsung developed its growth strategies for the future, investing heavily in raw materials and manufacturing processes. Samsung used the advantages of this strategy to increase its market share in the electronics business, which was mostly TVs at that time, by beginning to export outside its countries borders. Many new branches of Samsung were created in this era, from Samsung Fine Chemicals, Samsung Construction, Samsung Precision Co. and the Samsung Advanced Institute of Technology, which was its main Research and Development branch. Throughout the following decade, Samsung diversified its product lines to include semiconductors, personal computers, air conditioners, microwaves, tape recorders and even delved into the aerospace industry. During this time, it invested in a second R&D facility. Byung-Chull Lee passed away in 1987, after which his son, Kun-Hee Lee took over the business (Samsung, 2011). Samsung challenged itself to restructure old businesses and open new ones with a goal of becoming one of the world’s top five electronics companies. In the early 1990's, Samsung refocused its

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