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Vision 2020

As stated in its new motto, Samsung Electronics' vision for the new decade is, "Inspire the World, Create the Future."

This new vision reflects Samsung Electronics’ commitment to inspiring its communities by leveraging Samsung's three key strengths:

“New Technology,” “Innovative Products,” and “Creative Solutions.” -- and to promoting new value for Samsung's core networks --

Industry, Partners, and Employees. Through these efforts, Samsung hopes to contribute to a better world and a richer experience for all.

As part of this vision, Samsung has mapped out a specific plan of reaching $400 billion in revenue and becoming one of the world’s top

five brands by 2020. To this end, Samsung has also established three strategic approaches in its management: “Creativity,”

“Partnership,” and “Talent.” 

Samsung is excited about the future. As we build on our previous accomplishments, we look forward to exploring new territories,

including health, medicine, and biotechnology. Samsung is committed to being a creative leader in new markets and becoming a truly

No. 1 business going forward.

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Our Vision

Samsung is guided by a singular vision: to lead the digital convergence movement.We believe that through technology innovation today, we will find the solutions we need to address the challenges of tomorrow. From

technology comes opportunity-for businesses to grow, for citizens in emerging markets to prosper by tapping into the digital economy,

and for people to invent new possibilities.

It’s our aim to develop innovative technologies and efficient processes that create new markets, enrich people’s lives and continue to

make Samsung a trusted market leader.

Our Mission

Everything we do at Samsung is guided by our mission: to be the best “digital-εCompany”. 

Samsung grew into a global corporation by facing challenges directly. In the years ahead, our dedicated people will continue to embrace

many challenges and come up with creative ideas to develop products and services that lead in their markets. Their ingenuity will

continue to chart Samsung’s course as a profitable, responsible global corporation. 

Business mission

January 21, 2010 By  Hitesh Bhasin Leave a Comment 

 A strategic marketing plan starts with a clearly defined business mission. Mintzberg defines a mission

as follows:

“A mission describes the organization‟s basic function in society, in terms of the products and services

it produces for its customers”. 

 A clear business mission should have each of the following elements: 

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 A Purpose

 Why does the business exist? Is it to create wealth for shareholders? Does it exist to satisfy the needs

of all stakeholders (including employees, and society at large)?

 A Strategy and Strategic Scope

 A mission statement provides the commercial logic for the business and so defines two things:1) The products or services it offers (and therefore its competitive position)

2) The competences through which it tries to succeed and its method of competing

 A business‟ strategic scope defines the boundaries of its operations. Management sets these. 

For example, these boundaries may be set in terms of geography, market, business method, product

etc. The decisions management make about strategic scope define the nature of the business. 

Policies and Standards of Behavior

 A mission needs to be translated into everyday actions. For example, if the business mission includes

delivering “outstanding customer service”, then policies and standards should be created andmonitored that test delivery.

These might include monitoring the speed with which telephone calls are answered in the sales call

center, the number of complaints received from customers, or the extent of positive customer

feedback via questionnaires. 

 Values and Culture

The values of a business are the basic, often unstated, beliefs of the people who work in the business.

These would include:

1) Business principles (e.g. social policy, commitments to customers)2) Loyalty and commitment (e.g. are employees inspired to sacrifice their personal goals for the good

of the business as a whole? And does the business demonstrate a high level of commitment and loyalty 

to its staff?)

3) Guidance on expected behavior – a strong sense of mission helps create a work environment where

there is a common purpose

Some examples of mission statements 

Mission and Vision of Samsung Electronics 

 Vision of SAMSUNG Electronics is “Leading the Digital Convergence Revolution” and their mission to

carry out this vision is “Digital-e Company.There are two parts of being a “Digi-tal-e Company”, and

the first is clearly about being “Digital” producing not just digital products, but products that inspire

digital integration across our entire company. The second part of being a “e” is to use e-Processes

connecting R&D, production, and marketing to customers, partners, and the market-disciplined

approach is the way we bring value to every part of our supply chain, including products data to and

customer relationship through Enterprise Resource Planning (ERP). 

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Mission of Lands’ End 

Lands‟ End, a leading international direct merchant of traditionally styled, casual clothing for men,

 women, and children, as well as soft luggage and products for the home, offers products through

regular mailings of its primary and specialty catalogs and via the Internet. It is known for providing

products of exceptional quality at prices representing honest value, enhanced by a commitment toexcellence in customer service. 

Mission of Coca-Cola 

Coca-Cola‟s mission is to maximize shareholder value over time. It creates value by a strategy guided

 by six beliefs:

1.  Consumer demand drives everything it does.

2.  Brand Coca-Cola is the core of its business

3.  It will serve consumers a broad selection of nonalcoholic ready-to-drink beverages4.  It will do excellent job marketing

5.  It will think and act locally 

6.  It will lead as a model corporate citizen

Mission

January 27, 2010 By  Hitesh Bhasin Leave a Comment 

 While the essence of   vision is a forward looking view of what an organization wishes to become,

mission is what an organization is and why it exists.

Several years ago Peter F Drucker raised important philosophical questions related to business: Whatis our business? What will it be? And what should it be? These three questions, though simply worded,

are in reality the most fundamental questions that any organization can put to itself. The answers are

 based on the analysis of the underlying needs of the society that any organization serves to fulfill. The

satisfaction of that need is, then, the business of the organization.

Understanding Mission 

Organizations relate their existence to satisfying a particular need of the society. They do this in terms

of their mission. Mission is a statement, which defines the role that an organization plays in a society.

It refers to the particular needs of that society, for instance, its information needs. A book publisher

and a magazine editor are both engaged in satisfying the information needs of society but they do itthrough different means. A book publisher may aim at producing excellent reading material while a

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magazine editor may strive to present news analysis in a balanced and unbiased manner. Both have

different objectives but an identical mission.

Defining Mission 

 A mission was earlier considered as the scope of the business activities a firm pursues. The definition

of mission has gradually expanded to represent a concept that embodies the purpose behind theexistence of an organization. Thompson (1997) defines mission as the “essential purpose of the

organization, concerning particularly why it is in existence, the nature of the businesses it is in, and

the customers it seeks to serve and satisfy” Hunger and Wheelen (1999) say that mission is the

“purpose or reason for the organization‟s existence”. 

Now there is not much difference of opinion about the definition of mission. Yet, you finds instances

of organizations confusing mission with vision or objectives. In strategic management literature,

mission occupies a definite place as a part of strategic intent.

How are Mission Statements Formulated? 

Most organizations derive their mission statements from a particular set of tasks they are called uponto perform in the

light of their individual, national or global priorities. Several public sector organizations, set up in

India during the 1950s and 60s owe their existence to the vision of Jawaharlal Nehru, the first prime

minister, who enunciated and tirelessly worked for the national aim of building a strong and self 

reliant India by laying the foundations of many of our basic infrastructure industries. Mission

statements, whether derived from set priorities or not, could be formulated either formally or

informally.

Usually, entrepreneurs lay down the corporate philosophy, which an organization follows, in its

strategic and operational activities. Such a philosophy may not be consciously and formally stated butmay gradually evolve due to the entrepreneur‟s actions. Generally an entrepreneur has a perception of 

the type of organization that he, wants his company to be. Mission statements could be formulated on

the basis of e vision that an entrepreneur decides on in the initial stages of an organization‟s, growth.  

Major strategists could also contribute to the development of a mission statement. They do this

informally by lending a hand in the creation of a particular corporate identity or formally through

discussions and the writing down of a mission statement. Chief executives plan a major role in

formulating a mission statement both formally and informally. They may set up executive committees

to formally discuss and decide on a mission statement or enunciate a corporate philosophy to be

followed for strategic management. Consultants may also be called upon to make an indepth: analysis

of the organization to suggest an appropriate mission statement.

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   Visions represent a discontinuity, a step function and a jump ahead so that the company knows what

it is to be

  Good visions help in the creation of a common identity and a shared sense of purpose

  Good visions are competitive, original and unique. They make sense in the market place, as they are

practical

  Good visions foster risk taking and experimentation

  Good visions foster long term thinking.

  Good visions represent integrity; they are truly genuine and can be used for the benefit of people.

History

Samsung Electronics was founded in 1969[11]

 in Daegu, South Korea as Samsung Electric Industries, originally

manufacturing electronic appliances such as TVs, calculators, refrigerators, air conditioners and washers.

By 1981, the company had manufactured over 10 million black and white TVs. In 1988, it merged with Samsung

Semiconductor & Communications.

It is noteworthy that Samsung Electronics has grown in leaps and bounds in a business notorious for cyclical

fluctuations. Founded in 1938 as a food processing and textile purveyor, the parent group entered the electronic

business as late as in 1969 when it created under its wings an electronic component subsidiary. It was a decision

made after considering the fast-growing domestic demand for electronic goods.

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Just one year after its founding, the Samsung Group established in 1970 another subsidiary Samsung-NEC

 jointly with Japan’s NEC Corp. to manufacture electric home appliances and audio-visual devices. In 1974, it

expanded into the semiconductor business by acquiring Korea Semiconductor, one of the first chip-making

facilities in the country at the time. It was soon followed by the 1980 acquisition of Korea Telecommunications, an

electronic switching system producer.

In February 1983, Samsung’s founder Lee Byung-chull made an epoch-making announcement, dubbed the

“Tokyo declaration,” that his company would enter the DRAM (dynamic random access memory) business. And

only one year after the declaration did Samsung became the third company in the world that developed the

64k DRAM after the United States and Japanese predecessors. The march from then onward as the pioneer in

the memory chip-making industry has continued to this day for almost three decades.

Although Samsung Electronics was already one of the biggest companies in Korea as early as the 1990s, it now

is by far the most important company with unrivaled influence on the economy through a large network of supplier

and partner companies as well as through its own revenue-generating power. Since the onset of the 1997 Asian

financial crisis, the company has become more powerful: While most other high-tech companies were hit by

cash-flow problems after the crisis, Samsung could avoid financial difficulties by broad-based structural reforms.

After the crisis subsided, Samsung emerged as a global corporation. For four consecutive years from 2000 to

2003, it posted more than 5-percent net earnings when 16 large conglomerates out of 30 top companies of the

nation went out of business in the wake of the unprecedented crisis.[12]

 [13]

 

On 2009 and 2010, the US and EU fined Samsung Electronics with 8 other memory chip makers for its part in a

price fixing scheme from 1999 to 2002. Other companies fined included Infineon Technologies, Elpida

Memory (Hitachi and NEC) and Micron Technology.[14][15][16][17][18]

 In December 2010, The EU granted immunity to

Samsung Electronics for its part in informing on other members (LG Display, AU Optronics, Chimei InnoLux,

Chunghwa Picture Tubes and HannStar Display) of a price fixing scheme.[19][20]

 

On April 2011, Samsung Electronics Co. have sold their HDD commercial operation to Seagate Technology for

about $1.4 billion with payment of 45.2 million of (Samsung-Seagate) shares (9.6 percent of shares) with value of

$687.5 million and the rest will be paid in Cash.[21]

 

[edit]Growth( goals)

Only ten years ago, Samsung’s only goal was to catch up with Japanese rivals. But now it is outperforming major 

Japanese electronics makers in many categories: in terms of global market share, Samsung is No. 1 in flat-panel

TVs and memory chips; it is No. 2 in mobile handsets; it is one of the top suppliers in other home appliances.[22]

 

In 2005, Samsung surpassed Japanese rival Sony for the first time to become 20th world's largest and most

popular consumer brand as measured by Interbrand.[23]

 In 2006, Business Week rated Samsung as 20th on its

list of global brands, 2nd in the electronics industry.[24]

 Business Week also ranked Samsung as 20th in

innovation.[25]

 In 2007, Samsung Electronics' handset division overtook American rival Motorola, making it the

world's second-largest mobile phone maker.

[26]

 In 2009, Samsung overtook Siemens of Germany and Hewlett-

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Packard of the USA with a revenue of $117.4 billion to take the No.1 spot as the world's largest technology

company.[27]

 

The semiconductor division of Samsung Electronics is the world's largest memory chip and second largest

semiconductor manufacturer worldwide.

[28]

 This has been the case for DRAM and SRAM for over a decade.

[citation 

needed ] 

To become the top brand in the electronics business, Samsung has spent enormous sums on marketing and

branding. As part of fulfilling this strategy, the company devised in 1996 a plan to sponsor major sporting events.

It succeeded in becoming an official sponsor for the 1998 Nagano Winter Olympics. Samsung today is the name

that almost always appears in many big games.[29]

 

Despite being a giant in the global technology business with abundant growth, Samsung, along with its chairman

Lee Kun-hee, is famous for fretting over its future and coming crisises. Since returning from a mini retirement in

March 2010, Kun-hee said, “Samsung Electronics’ future is not guaranteed because most of our flagship

products will be obsolete in 10 years from now.”  [30]

 

Global consumers’ brand recognition of Samsung Electronics has increased steadily: According to the top-100

brand list compiled by Millward Brown, the British brand consultancy, Samsung, ranked at 68th on its list, was

one of the world’s most valuable brands whose growth has been most pronounced during the 2009 -2010 period.

Its brand value, estimated at as much as US$1.1 billion, grew by 80 percent.

In the “World’s Most Reputable Companies 2010” ranking published by Repu tation Institute of the United States,

Samsung was placed at 22nd, a large advancement from the previous year’s 74th. This ranking, compiled by the

U.S. consulting company since 2006, reflects survey results collected from consumers in 24 different countries

for global 600 large corporations in terms of annual revenue and its GDP share in respective countries. The

respondents answer questions in seven categories including products and services, innovativeness, work

conditions, corporate governance, social responsibility, leadership, and financial performance.

Samsung was also ranked 11th in the “50 Most Innovative Companies 2010” list put out by Business Week, a

five-notch increase from the previous year’s 16th. The ranking, collated jointly by the U.S. week ly magazine and

Boston Consulting Group since 2005, is based on answers to innovation-related survey questions asked to

executives of global corporations. While survey answers take an 80-percent weight to the compilation of the

ranking, the remaining 20 percent is accounted for by annual share appreciation (10%) and three-year average

sales revenue and profit margin (5% each), respectively.

Samsung had emphasized innovation in its management strategy since the early 2000s and it again highlighted

innovation as part of core strategies when it announced the Vision 2020 in which the company set an ambitious

goal of reaching the $400-billion sales revenue within 10 years. In order to cement its leadership in the areas of

memory chip and TV production, Samsung has invested aggressively in research and development. The

company currently has 24 R&D centers around the world. In the 2010 Business Week innovation ranking, Apple

Computer and Google retained the leading positions as in the 2009 list, followed by Microsoft, which gained onenotch from 2009’s fourth place. 

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Meanwhile, Samsung took the 33rd place in the “World’s Most Valuable Brands 2010” list made public by the

Forbes magazine. Forbes said that Samsung’s brand value was as much as $12.8 billion with an average sale

revenue growth rate of 17 percent for the past three years.

Market share

ProductSamsung's

global M/SCompetitors M/S Year Source

DRAM 40.4% Hynix 19.8% Q3 2010 [77] 

NAND Flash 40.4% Toshiba 33.1% Q2 2010 [78] 

Large-size LCD Panel

(revenue)26.0% LG Display 25.9% Q3 2010 [79]

 

Active-Matrix OLED 97% LG Display, AUO 1~3% 2010 [80] 

Lithium-ion battery 18.7% Sanyo 19.4% Q1 2010 [81] 

LCD Monitor 18.0% Dell 12.8% 2009 [82] 

Hard disk drive 9%Seagate

Technology31% Q4 2009 [83]

 

Television sets

(LDC, PDP, CRT, LED)17.2% LG Electronics 14.8% Q3 2009 [84]

 

Mobile phone 21.0% Nokia 32.4% Q3 2010 [85] 

Digital camera 11.8% Sony 17.4% 2010 [86] 

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Samsung Electronics Announces Eco-Management 2013 Initiativeon Jul 25, 2009 

- Company aims to become a leading eco-friendly enterprise under the vision of "Creating New Value through

Eco-Innovation" 

Seoul, Korea, July 20, 2009 – Samsung Electronics today announced a new green management initiative thatestablishes a comprehensive set of goals intended to make Samsung a leading eco-friendly company by 2013.

Focused on achieving low-carbon economic growth, the company laid out four core green management objectives as

part of its “Eco-Management 2013” plan. The objectives included: reducing greenhouse gas emissions normalized by

sales* from manufacturing facilities by 50 percent and cutting total indirect greenhouse gas emissions from all products

by 84 million tons over a five year period through 2013; ensuring 100 percent of Samsung’s products are eco -friendly

and exceed global eco-mark standards; investing 5.4 trillion Korean won in various eco-management initiatives; and

enhancing green partnerships with suppliers and partners.

The company also unveiled its green management vision, "Creating New Value through Eco-Innovation,” and the

program’s slogan, "PlanetFirst," during a ceremony at Samsung Electronics’ corporate headquarters in Seoul. The

vision statement emphasizes the management’s commitment to make environmental guardianship a priority across thebusiness and apply technology in innovative ways to achieve eco-friendly growth.

“As a leading global technology company, Samsung Electronics has always taken our environmental responsibilities

very seriously, but today we are committing to becoming a truly green enterprise that places eco-management at the

very heart of our business decision-making and growth,” said Yoon-Woo Lee, Samsung Electronics' vice chairman and

CEO.

“This eco-management initiative will encompass all of our global operations, supply chain, and the complete lifecycle of

Samsung products, and by achieving these goals we aim to lead the way in tackling the environmental problems that

are facing our planet.” 

The Eco-Management 2013 plan includes commitments to:

• Reduce greenhouse gas emissions from manufacturing facilities by 50 percent by 2013 on a financial emissions

intensity basis, taking 2008 as the base year. In order to achieve this, LCD and semiconductor lines will introduce PFC

and SF6 reduction technologies, and enhance energy management systems.

• Reduce estimated indirect greenhouse gas emissions from Samsung products by 84 million tons over a five year

period through the end of 2013. This will be achieved by enhancing energy efficiency of Samsung products including

TVs, refrigerators and air conditioning systems to the highest level in the industry, and reducing standby power

consumption from 1.0W to 0.5W.

• Exceed Good Eco-Product criteria** for 100 percent of Samsung's products, up from the current 50 percent. This will

include introducing eco-friendly evaluation for products in the R&D stage, enhancing energy efficiency, and increasing

the use of recyclable and eco-friendly materials.

• Invest 5.4 trillion Korean won on research and development, and facilities related to eco-management initiatives

through 2013. This includes 3.1 trillion Korean won for development of eco-friendly products, and 2.3 trillion Korean won

for energy-saving technologies and greening of manufacturing facilities.

• Strengthen environmental cooperation with suppliers and partners, including supporting the implementation of green

management systems such as ISO 14001, and the establishment of greenhouse gas inventories.

* Greenhouse Gas Emissions Normalized by Sales – Total greenhouse gas emissions are divided by annual revenue in

order to provide a consistent measure of green manufacturing efficiency. (unit: tons of C02/100 million Korean won

revenue)

** Good Eco-Product – Samsung assigns each newly developed product an eco-rating (Eco-Product, Good Eco-

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Product, or Premium Eco-Product) based on strict internal evaluation criteria. In order to be considered a Good Eco-

Product, products must exceed basic industry requirements, exhibit differentiating eco-friendly features and satisfy

global eco-mark standards.

About Samsung Electronics

Samsung Electronics Co., Ltd. is a global leader in semiconductor, telecommunication, digital media and digital

convergence technologies with 2008 consolidated sales of US$96 billion. Employing approximately 164,600 people in

179 offices across 61 countries, the company consists of two business units: Digital Media & Communications and

Device Solutions. Recognized as one of the fastest growing global brands, Samsung Electronics is a leading producer

of digital TVs, memory chips, mobile phones and TFT-LCDs. For more information, please visit www.samsung.com.