Balanced Scorecard Study – Samsung

Kashun Davis TMAN 680 Fall 2012 Balanced Scorecard Samsung Samsung is the engineering- found brass that will be the subject for my Balanced Scorecard. Founded in 1938 in Seoul, southeasterly Korea, Samsung Electronics Co. Ltd. engages in the manufacture, distribution, and sale of finished electronic products and device solutions worldwide. They offer consumer products, including roving phones, tablets, tele imaginativenesss, Blu-rays, DVD players, home theaters, mul mdia players home appliances, such as refrigerators, slipstream machines, air conditioners, etc Laptops and personal computers.The company in like manner designs and manufactures integrated circuits for digital breeding storage in consumer electronics. It has trading operations in Korea, U. S. , Europe, Asia, Africa, Africa and China. Because of the large size of the Samsung Corporation, I will focus on Samsung smartphones, one of their technology-intensive strain units. The vision of Samsung Samsung is consecrate d to developing innovative technologies and efficient processes that create new trades, enrich peoples lives, and encompass to make Samsung a digital leader. Their mission statement, At Samsung, we honour a simple headache philosophy to devote our talent and technology to creating superb products and services that contribute to a better global society. Samsungs lowest sales return risen from 158. 9 one million million in 2007 to 220. 1 billion in 2011. Their total assets grew from 280. 8 billion in 2007 to 343. 7 billion in 2011. Unfortunately their total liabilities went from 181. 7 billion in 2007 to 202. 6 billion in 2011. Stockholders equity or so doubled from 80. billion in 2007 to 141. 1 billion in 2011. Samsungs make income also addd from 12. 9 billion in 2007 to 21. 2 billion in 2011. Its also non strange to rede their employee ancestor increase due to their explosive growth over this five-year time span. They had 254,000 employees in 2007 and now declare over 344,000 employees in 2011 ( more or less Samsung, 2010). Their electronics voice has 190,500 employees at the end of 2011. With respect to the Smartphone business unit out of the 1. billion officious phones sold worldwide in 2011, Samsung accounted for 330 million of those units. Their Galaxy S II sold more than 20 million units since its launch in 2011. In 2012, Samsung launched the Galaxy S III and expects to strengthen their brand and increase foodstuff function in the mobile phone arena (About Samsung, 2010). The fit scorecard is defined as a management agreement that maps an organizations strategic objectives into performance metrics in quatern perspectives financial, internal processes, nodes, and learning and growth ( earningsMBA, 2002).The four perspectives mentioned above construct the balanced scorecard framework. To create a balanced scorecard for Samsungs Smartphone business division this framework has to be applied. First, I will assess the mission, vision, chal lenges, and partners of the company. The vision of Samsung Samsung is dedicated to developing innovative technologies and efficient processes that create new markets, enrich peoples lives, and continue to make Samsung a digital leader. Their mission statement, At Samsung, we follow a simple business philosophy to devote our talent and technology to creating superior products and services that contribute to a better global society. Samsung not only makes smartphones, but they also create components like displays and integrated circuits that also go into competitors smartphones, such as Apples iPhone. Samsungs competitors in the mobile phone market are Apple, Microsoft, Google, HTC, Nokia, and Blackberry. Samsung doesnt make their own proprietary software and hardware as Apple, Google, and Blackberry.Samsung exclusively uses Googles Android Mobile OS for their phones. Another challenge Samsung faces, is that their mobile phones are not only in arguing with other phones that have dif ferent software platforms, but they are in even stiffer competition with other phones that also use Googles Android Mobile OS. This market in itself is very fragmented from the fact that more than 4,000 distinct smartphone models live on that uses the Android operating system (Valazco, 2012). Fortunately for Samsung they command 25. % of the smartphone manufacture market putting them on top. LG, Apple, Motorola, and HTC own 18. 4%, 16. 3%, 11. 2%, and 6. 4% of the smartphone manufacture market respectively (comscore reports July, 2012). With respect to the balanced scorecard framework, a strategy map will assist with connecting the four perspectives and how they relate to from each one other. The strategic measures chosen for the breeding & becometh locating were chosen based on information listed in the Samsungs annual report. Samsungs employees have grown over the past few years. Samsungs social etwork battlefront is currently greater than their competitors, but there is alw ays room for improvement. Samsung invested $8B USD in R&D, which this funnels down to organizational neat and learning from their competitors. With respect to the upcountry operation Perspective $8B USD were invested into R&D for innovation. guest Satisfaction is never perfect in any organization, thus leaving room for improvement. not to mention guest satisfaction can translate into sales. Management of operations was chosen because process improvement is always needed in an organization.The customer perspective measurements are strengthening the brand, gaining OEM market share, and exceeding customer expectations. both of these links to financial success within the organization, thus focusing on these measures is vital to the growth Samsung expects to see in the future. Stockholder equity, net sales, and net income all affect the customer, internal, and learning & growth perspective measures and vice versa. This provides a top to bottom and bottom to top flow balanced measu res. Learning & Growth Perspective Objective Measure fool InitiativeGrow Human Capital Of Employees in Samsung Electronics Division 200,000 employees pugnacious Recruitment and computer storage computer program Improve Information Capital Social canworking Effectiveness 6 Million Twitter Followers 40 Million Facebook Likes Aggressive & synergistic Social Networking Campaign Build organisational Capital Submittal of Employee Ideas 5,000 Employee Ideas Submitted Conduct Organizational Learning Study of Samsung Mobile Division (Amiri, 2010) Learn from our Competitors Mobile OEM securities industry piece of land addition Mobile OEM commercialise Share by 20% Analyze competitors customer base and meet the needs of that customer base through innovative mobile technology Internal Process Perspective Objective Measure Target Initiative Manage Innovations Successful search & Development Projects triplex R&D Projects Allocate more capital to R&D projects and their implementation Manage Customer Relations Customer Satisfaction Double and Sustain Customer Satisfaction scores Aggressive ustomer service training for employees Manage Operations Value Added & Non-Value Added Operations adjoin Value Added Operations and Reduce/eliminate non-value added operations Lean Six-Sigma Process Improvement Initiative (Qun, 2012) Customer Perspective Objective Measure Target Initiative Strengthen Samsung Smartphone Brand Market Share Increase Market Share Aggressive Marketing Campaign Gain Smartphone OEM Market Share OEM Market Share Increase Mobile OEM Market Share by 20% Analyze competitors customer base and meet the needs of that customer base through innovative mobile technology Exceeding customer needs and expectations Customer Satisfaction Scores Customer Retention Double Customer satisfaction scores & retention Customer Loyalty & Rewards Program Customer Perspective Objective Measure Target InitiativeIncrease Stockholder Equity Stock Price Increase from $489/sha re to $510/share Increase Market Share Increase Net Sales Net Sales Increase from 135B to 170B Aggressive Marketing Campaign Increase Net Income Net Income Increase by 15% Make Operations economical and reducing costs Sources About Samsung. (2010). Retrieved from http//www. samsung. com/us/aboutsamsung/corporateprofile/ourperformance/samsungprofile. html Amiri, A. , Jandghi, G. , Alvani, S. , Hosnavi, R. , & Ramezan, M. (2010). Increasing the understanding Capital in Organization Examining the Role of Organizational Learning. European journal Of Social Science,14(1/2), 98-108. comscore reports July 2012 U. S. mobile subscriber market share. (2012, Sept 04). Retrieved from http//www. comscore. com/Insights/Press_Releases/2012/9/comScore_Reports_July_2012_US_Mobile_Subscriber_Market_Share NetMBA. (2002). Netmba business knowledge center.Retrieved from http//www. netmba. com/accounting/mgmt/balanced-scorecard/ Samsung Group. (2011). Samsung profile 2011. Retrieved from http//www. sam sung. com/us/aboutsamsung/corporateprofile/download/Samsung_Profile_2011-EN-final-revise. pdf Qun, Z. , Irfan, M. , Khattak, M. , Abbas, J. , Xiaoning, Z. , & Shah, M. (2012). CRITICAL supremacy FACTORS FOR SUCCESSFUL LEAN SIX SIGMA IMPLEMENTATION IN PAKISTAN. Interdisciplinary ledger Of Contemporary Research In Business,4(1), 117-124. Valazco, C. (2012, May 15). Techcrunch. Retrieved from http//techcrunch. com/2012/05/15/3997-models-android-fragmentation-as-seen-by-the-developers-of-opensignalmaps/