1.1 Information about the company
The chosen company for
this report is ‘Samsung’ with its full name as ‘Samsung Electronics Co., Ltd.’
(in Korean: ????).
Samsung was made on May 1st,
1938 by Lee Byung Chull, not as Electronic company but originally as a grocery
trading store specializing in noodles and has over the years become one of the
strongest consumer electronics brands specializing in manufacturing TV, washing
machines, smartphones, microwave ovens etc. which are sold to consumers across
the world. Now, they are a South Korean multinational electronics company with
its headquarters in Suwon, South Korea. Samsung has assembly plants and sales
networks in 80 countries in the world with and total of around 308,745
employees. By watching the revenue, Samsung places as second-largest
information technology company on this planet. Samsung, is a family-run
company, this occurs often in the South Korean industry. However, there is a
down side about it, they get criticized often as for low dividend payouts and
other governance practices that only favor the controlling shareholders at the
expense of ordinary investors.
Nevertheless, Samsung is a major manufacturer of
electronic components such as lithium-ion batteries, chips, flash memories and
hard drive devices, for clients as Apple, Sony and HTC. Due to their popularity
of its Samsung Galaxy line of devices, they are also the world’s largest
manufacturer of mobile phones/smartphones. Not only that, but they also are a
major vendor of tablets and the largest television manufacturer.
1.2 Events this past year
The events that occurred this past year in 2017
for the company Samsung is first of all, the launch of their new product
Samsung Galaxy S8 & S8+ in March 2017 and the launch of the Samsung Galaxy
Note 8 in August 2017 made a big hit in that year resulting in October 2017,
Samsung having a market capitalization stood at US$372.0 billion.
Another event that happened in 2017 was about
Kwon Oh-hyun that was appointed in 2012 as their company’s CEO. The news
announced that he would resign in the coming March 2018, citing an
“Unprecedented crisis”. His resignation
that was announced on 12th October of 2017 was the same day the firm had
forecasted the record quarterly profits, citing a higher memory chip pricing.
Mr. Kwon that worked 32 years as the CEO said that he had been thinking about
his departure “for quite some time” and could “no longer pull it off.” This
might result into a crisis, but in response to the criticism about the
resignation, a spokesperson of the company Samsung Electronics has told the BBC
that a successor would be appointed “soon” but could not give a timeframe yet. (BBC News, 2017)