Transcript Samsung - HEC Paris

Samsung Group
The Samsung Group Currently
• Operates within 57 countries
• Generates 117 Billion $ in revenues
• Operates three core business sectors:
– Electronics
– Finance
– Trade and Services
• Accounts for 25% of Korean exports
• Represents approximately 10% of the value of
Kospi (the Korean stock exchange)
Business Overview
Samsung Electronics
• Subsidiaries include Electronics, SDI, Corning, others
• Focuses on high-end consumer technology
• Strategic decision taken to move from value brand to compete
with Sony
– Telecommunications world #3 after Nokia and Motorola
– TV manufacturer – world #1
– Monitor Manufacturer – world #1
• Brand Equity moved from a position outside the top 100 in
1999 to #34 in 2002 and #25 in 2003
Samsung France
Within France, Samsung
• Exists wholly as a sales and marketing entity (plus one
service center)
• Employs 130 personnel
• Earns 800 million € (3.9 billion FF) in revenues and annual
sales of 300M Euros (comparable to size of Germany and UK
markets, taken separately)
• Enjoys an important market in terms of home appliances
Products & Services
Products sold to the French Market
• Electronics, including home theatre, digital
cameras and video equipment, as well as stereo
components
• Home Appliances: microwaves, refrigerators,
washing machines, air conditioners, etc.
• Mobile Telephones
• Computers, including LCD screens and monitors,
laptops, printers, drive components, etc.
Services include after sales services, with
repairs handled externally
Company's clients
Customers
• Within France, Samsung markets to a large extent to the
general public, with less emphasis on component sales.
• Taken as part of the European market, France represents a
sizeable portion of Samsung’s sales of high quality consumer
goods, the company’s strategic market.
• Samsung approaches marketing with a relatively one-size
approach, including commercials which are translated and
similar marketing approach in many markets.
Adaptation to France
Samsung’s method: Interface position
•
•
•
•
Five interface positions, filled by Korean ex-pats.
One interface position for each manager.
Liaison, with no direct authority.
Communicates directly, exclusively, with HQ in
Korea.
• Budget channel: the position through which funding
will flow from Korea.
Key Constraints
Costs of Entering the French Market
• The Samsung Electronics European Headquarter
is located in UK due to:
– Larger market size in the UK
– Samsung’s familiarity with the English language
– Great Britain being viewed as a more favorable
investment environment
• Manufacturing plants are in UK, Spain and
Hungary where labor-related factors are more
favorable, including weaker unions than European
neighbors France and Germany.
French Benefits
Why did Samsung choose to enter France?
• Samsung Electronics France has acted as a sales
and marketing entity, being established to achieve
market proximity, thereby positioning Samsung
more effectively with respect to international and
domestic rivals.
• In the late 1970’s, the US, Samsung’s largest
export market, imposed voluntary export restraints.
At this time, Samsung became interested in the
European market as a means of market
diversification.
• Based on the market diversification and the
globalization strategy of Samsung Electronics in
the early 80s, sales subsidiaries have been
established in 12 countries in Europe.
European Presence
• Sales and service locations in 12 countries throughout
Europe
• European HQ located in UK
• Production plant of micro oven and monitor in UK and of
VCR, TVCR in Spain and TV in Hungary
• Sales volume in France (Annual Sales 800M Euros) almost
same size to that of UK and Germany
• Samsung Electronics started business in 1986 but Samsung
Electronics France established in 1994
Global HR Management
”Focus on HR for continued success...”
• Samsung’s first world HR seminar was held this year
in Korea.
• HR focus based on Korean rules – local towards
common goals.
• Out of 70.000 employees within electronics division,
11 – 12.000 foreign personnel.
• 300 top executives in Samsung – only 3 nonKoreans.
• With expasion, more non-Koreans to be eligible for
executive positions.
Local HR Management
HR Management within the France
•
•
•
•
•
•
•
Korean president
5 Korean Expats in France (interface positions)
5 – 6 cultures in France
Performance review twice a year
Sept. – competance appraisal
Manager recommend employees to a committee
Working on managerial program
Culture of Samsung
Asian versus Western Cultures
• Asian: emphasis on the group
• Western: emphasis on the individual
Company culture
• Private owner – no short-term
decisions taken to please the stockmarket
• Immediate action – if you are 80%
sure you go for it
Community
Korean philosophy
• Community oriented.
• Training and educating people.
• Sponsors Health Care Research, other
philanthropy.
• Sponsors sporting events, including Olympics.
Mission Statement
Management Philosophy
“We will devote our human resources and
technology to create superior products and
services, thereby contributing to a better
global society."
Evolution of Samsung’s Mission Statement
• Economic contribution to the nation
• Priority to human resources
• Pursuit of rationalism
Corporate values
Soon to be announced by Samsung are new
Corporate Values:
• Behavior
– Creativity, Challenge and Strategic Thinking
• Organizational
– Simplicity, Self-Control, Speed
• Individual
– Customer Focus, Crisis Awareness, Continued Innovation
Thanks To
Yang Kyu Kim, President, Directeur General
• [email protected]
• 01 55 68 40 30
Amaury Destailleur, Directeur, Ressources
Humains
• [email protected]
• 01 55 68 40 08