Samsung Electronic Vietnam analysis

Table of content
1.1 Identify the mission, values, and objectives of organization and the influences of stakeholders for its organization:…………………………………………..14
1.2 Describe the extent to which SEV meets the objectives of different stakeholders…………………………………………………………………………17
1.3 Explain the responsibilities of Samsung Electronic Vietnam and strategies employed to meet them………………………………………………………………20
2.1 Explain how the economic system in your national attempt to allocate resources effectively for SEV……………………………………………………….23
2.2 Assess the impact of fiscal and monetary policy on Samsung Electronic Vietnam (SEV) and their activities. ……………………………………………………26
2.3 Evalute the impact of competition policy and other regulatory mechanisms on the activities of a selected Samsung Electronics Vietnam (SEV) :……………………………………………………………………………………..……..28
Reference :……………………………………………………..31

Introduction : In the tendency of global economy integration nowadays, more and more multinational companies appear and create a strong position in the market. Samsung Electronics Company is a typical sample of one of the leading multinational corporations in the world. Samsung is a part of the Samsung group, is one of the leading electronics brands in the world. The company primarily operates in Asia, Europe and Americas. Samsung is engaged in the manufacture and distribution of consumer electronics (television, audio-visual...), communication products (mobile phone, key phone...), home appliances ( refrigerators , stove, air conditioners...). In the period of over 15 years of operation, the company has brought many high-quality products and services to Vietnam, and contributed to improve the quality of life of Vietnamese consumers and the economy of Vietnam. All the matters related to Samsung will be analyzed including its mission, values, objectives, the influence of stakeholders, how the company achieves the stakeholders’ objectives, the company’s responsibilities and strategies employed to meet them, the impact of social welfare, industrial policy, macro-economic policy and the global economy on the company as well as the effect of economic systems in Vietnam on resources use and allocation.

1.1 Identify the mission, values, and objectives of organization and the influences of stakeholders for its organization: Vision, mission, values, goals, objectives and even the influence of subsidiaries are supposed to be the lodestar of every organization’s strategic plans. They are not set up as separate parts. Conversely, they are regarded as a process that plays a very important role to the development of companies. Samsung Electronics Company is not the exception.

 Samsung Electronics Vietnam ( Samsung Vina) :  Vision: Samsung believes in the future. On the basis of the successes already achieved, we will continue to explore new areas such as healthcare, medicals and biotechnology. The products of Samsung try to be the best choice of Vietnamese. Samsung hopes to continue building a better society as well as a richer experience for everyone.  Mission: Samsung has outlined a specific plan to achieve revenue of $ 400 billion and become a leading brand in the world by 2020. To achieve this goal, Samsung has identified three methods in the management strategy, which is "Innovation", "partnership" and "Talent". Base on three main strengths : new products , new technology and creative solutions, Samsung want to bring to the worlds the best thing they had by products to served people life.  Values: in this efforts important, Samsung will conduct all transactions with partners and suppliers in a honest spirit , cooperation for mutual benefit and mutual development. Samsung understand and comply with the provisions of law, government and business. Besides that, Samsung make a good environment for people to work and develop.  Goals and Objective : Samsung Vina objectives is to become an electronic producing center of Samsung Group for the world market and create a turnover of USD 1 billion in Vietnam market in 2010. Samsung Vina is trying to widening its business and investment to take advantage of great opportunities from domestic and export market to develop company.
 Samsung LED Company :  Products: The company produce LED products for Samsung Electrics Company and some subsidiary.  Vision: Samsung LED want to be the top LED Company on the world. The company have to support and connect close with the subsidiary of Samsung Electronics Company.  Mission: The company have two slogan : “Light up your imagination” and “Leading a bright future”. Follow that , the company want to bring to everyone the unlimited imagination by LED products such as : TV Samsung LED, mouse LED computer.. All products is safe with the customer and the environment. • Values: Samsung LED want to have the belief of customer by their products. They want to have a lot of loyal customers. To achieve that, they must produce best quality product with best cost. It’s update and changing to be suitable with the world aims to improve people's life, creating a better future.  Goals and Objective: The company want to become the top LED Company on the world in 2013 and become a efficiency subsidiary of Samsung Electronics company.
 Samsung Corning Precision Material (SCP) :  Products: produce LCD glass for TV, laptop, and computer screen…  Vision: With slogan “We will create a better future with our cutting edge technologies and new materials”, new vision embrace it willingness to seek engines for the future sustainable growth through engineer and the supply oh high value follow cutting edge technologies.  Mission: design and develop new materials through company technological, enable the development of future technology • Values: The value of company base on “ basic concept, strategies of the I&I Way, I&I Way Diagram” , respect ideas of people, continuously changing to adapt to the world
.  Goals and Objective: The company want to become the top LCD Company on the world and become a efficiency subsidiary of Samsung Electronics company.
 JAYS Company (Earphones producer of Sweden):  Products: earphones and equipment for portable media players for Samsung.  Vision: Jays want to bring to everybody who love to listen to music the best quality earphones. It can help them to listen lively and honest sound, make a new life style in the world.  Mission: design and develop new earphones to customers, bring to the world the best products of Samsung in general and JAYS in particular. • Values: JAYS values are based on hard work, with the passionate with music and the imagination, JAYS believes that with these characteristics its people can bring the best quality products to customers • Goal and Objectives: Co operate with Samsung will give Jays a great opportunity to expand its market to Asia and making greater profit as Samsung is the world largest manufacturer of smart phones.
1.2 Describe the extent to which SEV meets the objectives of different stakeholders.
Vietnam is a developing country with high potential for investors. Samsung is not exception when investing in Vietnam market: Samsung Electronics Vietnam. Besides the benefits Vietnam bring to Samsung Vina, the company have to satisfy a lot of requirements from related to different stakeholders.

Government: This is the most important stakeholder. The government also has a big role to play in the success of businesses. When a company work in a country, this company has to execute, agree with the law of the government of that country such as tax policies, business ethic policy, environment policy, labour regulation...Besides that, Vietnam government make a good condition for SEV working and develop. That is not only promotes the economy of Vietnam increase but also bring profit to SEV. SEV make the relationship between Korean and Vietnam closer and closer.
Community : The community contributes greatly to its success of the face of SEV. If SEV have the belief of community, it will help a lot in marketing and bussiness planning to introduce new products.SEV is join in community activities such as sports, culture and social activities in Vietnam. SEV is a sponsor for medical activities, help poor men, Agent orange children, poor student, disaster area ....And Protection environment is a problem SEV take care a lot. SEV want to bring a good face to community, make people's life better and better.
Employees: SEV knows the success of company is the efforts of all the employees. They must work hard because the profits and revenue of company. SEV make a good environment for employees work in. That is professional and humanity environment where its people can enjoy the comfort, friendly and continuously innovative. SEV always encourage their employees creative to give the ideas for new products or improve, solve the problem of the company. Every year, the company often changes the treatment policy for employees to encourage them to work better and more efficient. In SEV is evaluated as a good company to work where employees are allowed to work in a fair environment about competition, reward, salary and promotion according to achievement. With the changing to adapt with the world, SEV trained and equipped with latest knowledge about equipments, hi-tech ...for new products to satisfy customers. 344 276 275 254 263

2006 2007 2008 2009 2010

EMPLOYEES: From 2006 to 2010 (thousands).
Shareholders: Shareholders are the ones who invest in the company, so they are the main capital sources of the company. The company cannot have the financial competence to operate and achieve their objectives without shareholders. Furthermore, shareholders have the right to nominate managers for the company, which decides the survival and development of the company. They can also sell stocks to make the company invulnerable to be taken over. Shareholders have to be much satisfied and would be much more confident in there investment for SEV, and by contrast SEV would receive more capital from its shareholders in the future to expand its business activities in Vietnam. To satisfy the shareholders, the important thing SEV can do is have a good plan develop the company, bring a lot profit and revenue for company.
Customer: Customers are one of the most important stakeholders. They have significant power over prices and procedures. They determine what product is needed and what price is charged. In some cases, they are the ones who create the tendency, so feedback, complaints and suggestions from customers are considered the guideline for each company. As a result, customers have a strong impact on the company’s marketing strategies and decision-making. With slogan " Customers is the king " , SEV always put the benefits of customer before the profits of company. If SEV want to have loyalty customer, SEV must have a good policies, planning to competitive with the others such as : Sony, Toshiba, Philip...SEV make the relationship between the company and customer closer by open the Customer Service, Take care Customer, Samsung support to answer problem or fix the equipments for the customer. All of products provided by Samsung Vina will be warranted one to two year depending on the kind of products. SEV must research market share carefully before make a price for the product and besides that improving the diversifying to satisfy diversification of customer demand, in addition to offering good prices for products.
Suppliers: Because SEV produce many kinds of products so SEV always keep a good relationship with the suppliers. SEV need to work with a lot of suppliers such as : materials, distribution, packaging....SEV have to satisfy the requirements of suppliers, so two sides can cooperate in long term by SEV realizes if they have a lot of good suppliers, they can win the competitors.
1.3 Explain the responsibilities of Samsung Electronic Vietnam and strategies employed to meet them.
Organizations are part of human society and they have a lot of targets to pursue. They operate not only for making profits and revenues but also for the sake of the whole community. Therefore, indentifying the company’s responsibilities towards society including environmental responsibilities, ethical responsibilities, management responsibilities and public relations – corporate image as well as employing strategies to meet them is the good things of organizations in general and Samsung Electronics Vietnam in particular.
• Social responsibility:
SEV takes part in social activities like subscribing to charity, floods and natural disasters, poor program which helps company to be closer to society.SEV also engages in strategies to support poor students who have good performance at schools by scholarship, building infrastructures and health improvement programs for people.( “ Samsung Digitall Hope” is the name of program people walking together because the poor children. It’s a charity program hold by SEV”). There are 4 areas SEV concern about the community issues are: social welfare, culture and arts, volunteer programs and education.
Environment is always an alarming issue. During the operation, many organizations have eliminated industrial waste and smoke that seriously harm the environment, which causes air, land and water pollution. They also deplete resources. That’s the reason why soil, water, trees, plant-life, energy availability, mineral wealth, animal and marine species are damaged. Besides, noise pollution is also likely to become more serious. All those things threaten the health and safety of not only the people in the organizations but also people living around those areas. Therefore, making continuous improvements in the management of the company’s environmental impact is a long-term goal of SEV. SEV will also promote environmental care, increase understanding of environmental issues among employees and deliver good practice such as processing industrial waste before disposing to the environment, using green energy and free-of-toxicity materials, Once environmental responsibilities are taken into the company’s concerned, its prestige will be raised among community. A strategy has also been drawn up in order to meet those environmental responsibilities. SEV has evaluated its environmental impacts at every stage, from sourcing of raw materials for its products to when its consumers use and dispose of them by operating an independent approval process to assure the environmental safety of its products and processes. Standards of environmental impact assessment which are robust are also used. Moreover, the company should develop its environmental management systems to improve its environmental performance. The information about environment should also be broadcasted to the whole company so that employees are aware of the company's environmental policy. Besides, relevant information and advice should be provided to the customers on the environmental impacts of SEV’s products and processes.
• Ethics and business and Management responsibility:
The business criterion of SEV in particular and Samsung Group in general is : "Operating in an ethical way is the foundation of our business. Everything we do is guided by a moral compass that ensures fairness, respect for all stakeholders and complete transparency.”. Ethical operation becomes one of the operation cultures of Samsung all over the world. SEV pursues a variety of social responsibilities such as social welfare, employees satisfaction, customer satisfaction, long-term relation with suppliers, education, etc. Ethics is about the codes of moral principles that concern the behavior and actions of each individual inside the company. Obviously, ethical responsibilities are very important to the image of a company. SEV recognizes that being ethical is not only the right thing to do, but also good business practice which leads to more successful and profitable operations. SEV has to follow such as obeying the law, avoiding harming others, respecting the rights of others, not cheating,… is one of the things that SEV has done quite well. In the company, SEV ethical policies include the code of Business Principles and the law of Ethics for Senior Financial Officers to control and manage the employees. The Code of Business Principles is SEV’s statement of values and represents the standard of conduct it requires from all of its employees. SEV shows us the responsibilities with their employees, they undertake that they will not fire any employees without clear reason; all employees will be received free insurance, before employees their job, they will be trained to have skills which can help them to work better. Employees will be received salary monthly, wages and bonus money depends on the contribution for company. Next up is management responsibilities, which means that an organization has to ensure the rights and benefits of its shareholders, employees, customers, suppliers, competitors, the local community and the government. Samsung forces its people to follow strict regulations and business ethical codes of conduction. Those are ethical codes of fair competitions, political activities, partner ethical codes of activities, etc. Fair competition policies will build up a good and strong image of company in market, company managers strictly prohibit any activities such as steal competitors’ secrets, selling out company’s information, violate copyrights other products, etc. With partners, SEV follows the principle of co-existence and co-prosperity, all of its partners will work with Samsung under a fair condition and fair competition, they are all strategic partners of Samsung when being chosen. Customers are considered the “kings” of every company, because they are the ones who evaluate the company’s products and services, and have great influence on each company’s success and development, so SEV’s responsibilities to customers is to give them fully information that they need, maintain their benefits and provide them with safe and high-quality service with reasonable prices as mentioned earlier, and the strategy that SEV has applied is to do surveys on customers’ awareness, perception, opinion as well as recommendations on the company’s products and services in order to satisfy customer needs and increase customer loyalty.
SEV wants to build up a strong and long time relationship with the suppliers. Suppliers are another important element that has a great impact on the company because they are the ones who deliver goods to the company, thus to suppliers, SEV has to respect the exchanging contract in order to create fair and two-side benefits. As a result, its strategy is the Supplier Partner Code in which on time payments through shared services efficiency program is used to ensure the benefits of suppliers. The responsibilities toward the local community as well as the government, when the company follow the law, It’s a way to make a good impression on the local community and the government so that the company can receive supports from them.
Besides that public relations and corporate image are also very necessary to create a strong brand name, strengthen employees’ attachment, increase customer awareness, consolidate customer base and widen customer segmentation. Because of its importance, SEV always creates a good relationship with the general public by providing good quality products and services for the customers, having a strategic marketing plan and establishing mutually beneficial relations with environmental pressure groups.
In conclusion, it can be said that SEV has taken its responsibilities quite well. The famous companies when well implement the responsibilities of them, they will have a strong position in the customer's mind and they can develop in long term.
2.1 Explain how the economic system in your national attempt to allocate resources effectively for SEV.
Vietnam is the one of developing countries. Vietnam’s economy ranks 6th in ASEA and 59th on the world in member economies of the International Monetary Fund based on the Gross Nominal Domestic Product in 2009 and 128th based on the Gross Nominal Domestic Product per Capita. This is the mixed economy, dependents on export and Foreign Direct Investment. Before 1986, Vietnam Party followed the command economy but this system didn’t maintain the economic development. Hence, government has changed from the plan economy to mixed economy after 1986. The mixed economy system gives many advantages which help Vietnam to manage and allocate effectively the use of resources: labor, financial and natural resource. Vietnam is a developing country. This country has experienced many historical events. Among them, the upheaval since 1986, when Vietnam changed its economic system from command economy to mixed economy, is the most remarkable event, and of course, the resources allocation and use are also different in each period to adapt to the change of economic system. This is the most innovative economy system on the world, and in this economy system all of the resources are allocated according to the needs of people and suitable with the economic condition of a country.
Samsung Electronic appeared Vietnam since 1996, when the market of Vietnam is very new and when Vietnam government encouraged foreign investors coming to Vietnam as well as encouraged the technology industries development because it will promote the economy of Vietnam increases.
Periods
Economic systems’ features
Resources allocation and uses

Labor (human) resources
Natural resources
Capital resources
Before Renovation (before the 1980s)
Centrally Planned economy:
-Is directly controlled by the Government. (State-owned firms are the only type of business)
-Resource allocation plans are made by the central government, then promulgated through government agencies.
-There was no sign of privatization.
-Most people worked as manual workers such as farmers, handicraftsmen, mason…
- The majority of them were self-sufficient.
-All products were made for the government or used for the war (from 1945 to 1975).
-Well-educated people weren’t treasured, so most of them associated with the former government or the Americans.

- Agriculture is highly labor-intensive (fields, groves, and kitchen gardens include a wide variety of fruit trees (orange, mango, jackfruit, and coconut) and vegetables were majorly located in Red River delta, the Mekong River delta, and the southern terrace region).
-Land, oil, coal, water and other mineral deposits were prosperous, but they weren’t exploited.
-There was an increase in the number of commercial shrimp farms located on the plains of the Mekong and Bassac rivers. -Foreign resources were used for producing furniture, pulp, and paper.
-Labor tools were rudimental (made by hand or used animal forces like water buffalo). Majority of them were used for manual work
-Most machines were old-fashioned and underdevelopedThe productivity was not high
-The transportation relies heavily on a vast network of navigable rivers and canals.
After Renovation (In the 1980s and 1990s)
Mixed economy:
-Private sector started to appear
-It’s the combination of both planned and market economy (some resources are owned by the government, some resources are owned by the private sector).
-The public sector typically supplies public, quasi-public and merit goods and intervenes in markets to correct perceived market failure while the governments force resources allocation through involuntary taxes, laws, restrictions, and regulations.

-Education and vocational training were focused more to create labor force for the country.
-The employees had more choices to work, but most of them still got used to the state-owned companies.
-Well-educated and qualified people were treasured and respected in order for them to contribute to the country.
-Mining and exporting coal was emphasized, especially in the north.
-Other mineral deposits such as phosphate, iron, tin, antimony, and chromium were produced for domestic industry and for export. Gold was used to make jewelry. Oil extraction also began.
-Seafood was processed for export, while coffee and tea are processed both for export and for domestic consumption.
-Machines and equipments were imported from foreign countries in order to increase the productivity as well as the quality of products.
-There were rail and highway nation's road network with average quality

From 2000 to recent
Mixed economy:
-There’s a variety of business types (state-owned firms, private firms, joint-stock firms, limited firms, joint-venture firms, wholly foreign-owned firms, foreign-invested firms,…)
- Modernization and industrialization (change from agricultural economy to industrial and informatic economy) -In 2007, Vietnam attended WTO. The open-door policy and diplomatic policy were issued.
-More and more foreigners invest into Vietnam
-People have the right to choose whatever business types that they want to work in.
-Students, the future work force of the country, has been given opportunities to study abroad to acquire the modern education from foreign countries and contribute to Vietnam.
-Educations and training continue to be focused to create skilled and qualified workers for the country.
-Each company must have its own motivation strategies to satisfy employees’ expectations.
-Talented people are used as an important function to avoid brain-drain.
-Oil, coal and mineral deposits are continuing to be exploited and exported.
-Natural attractions all over the countries such as rivers, beaches, mountains, caves… are being used to develop tourism. -Water power is also made effective use to develop hydroelectricity.
-Premises and offices are more convenient.
-Machines, facilities and equipments continue to be imported from foreign countries. Besides, some equipments are also produced and assembled totally by Vietnamese manufacturers or by Vietnamese manufacturers with technology from foreign countries to make it suitable for Vietnamese people.
-The nation’s road network is being improved. More cities also have international airports.

Vietnam has joined WTO for several years, and with the open door and free trade is a great opportunity for foreign companies in general and for SEV in particular. The Foreign Direct Investment (FDI) in Viet Nam increased dramatically since then. In 2006, FDI in Viet Nam was 10.2 billion USD. In 2007, it was 20.3 billion USD and continued to increase to 64 billion USD, in 2008. Foreign investment also supported in capital domestic, employment issues, technology and infrastructure. Furthermore, Samsung has more priorities when it produces high-tech products then it will have tax reduction for this line of products. With these policies, SEV will have few difficulties and have more chance to create more profit when it export products outside and import materials from outside.

2.2 Assess the impact of fiscal and monetary policy on Samsung Electronic Vietnam (SEV) and their activities.
•Fiscal policy includes spending, borrowing and repaying debt. In times of crisis of the economy in the world in general and the economy in Vietnam in particular, Vietnam government focuses more about the sources of money of the national companies and international companies. All the plans of SEV have to be affected because these policies of government. So Samsung should have good vision to overcome all problems at anytime.

.•Tax policy: tax reduction for the companies when Vietnam joins WTO. When Vietnam joined WTO, it helps the company to reduce cost and price of products. In the other hand, when the price of goods reduces, it leads to increased competitions. It helps SEV to reduce producing cost. On the other hand, since other companies also get advantage from tax deduction it will be tougher for SEV to compete with others both domestic and foreign ones. Eventually, it will be of advantage to customers. SEV always ready to competitives with the others if SEV know how to satisfy the customers better than the competitors. Government issues tax with a lot of purposes such as to control inflation, it effects strongly on SEV business.
• Monetary policy : The value of VND compare to USD is going down rapidly in recent years. Annual interest rate rise (interest rate 14%, loan interest 16% - 18%). These policy will affects to the cost of products of SEV. Because the materials Samsung needs are imported from outside and paid in USD but if it sells products in Vietnam, SEV must sell follow Vietnam dong. And the cost of products will be more expensive than sell follow USD, so the customer will be more careful in buying activities.

• These other factors:
Global financial crisis happened in 2008
The inflation rate of Vietnam is rather high in compare to other countries in area and SEV have to reduce a price of products to adapt with the market share in Vietnam. Vietnam government to continue borrowing from foreign investment funds such as ODA
Public spending : SEV will have support from the suppliers, public services like transport, health care...

2.3 Evalute the impact of competition policy and other regulatory mechanisms on the activities of a selected Samsung Electronics Vietnam (SEV) : Vietnam government has to issue competition policy between the companies and the others because
Ensure equality of enterprises: Law Competition creates the legal basis for enterprises of all economic sectors to participate in the market equally. Equality shows that if the business, whether owned enterprises, private or foreign investment, if they violate the regulations on the restriction of competition or unfair competition will be handled such as : fraudulent nature of the award , discriminatory, confusing ... they are in violation of competition law and is prohibited.
Promote the economy of the country: When we have the law competition, all the enterprises participation and diversity of economic sectors make the market will be active and attract more foreign investors.
Protect the benefits of consumer: The benefits of consumer always put in first before the profits and revenue of the enterprises. When have the Law competition, the consumers will be protected.

Examples about Unfair competition acts:
Unfair competition acts in this Law include:
1. Misleading indications;
2. Infringement upon business secrets;
3. Constraint in business;
4. Discrediting other enterprises;
5. Disturbing business activities of other enterprises;
6. Advertising for the purpose of unfair competition;
7. Sale promotion for the purpose of unfair competition;
8. Discrimination by associations;
9. Illicit multi-level sale;

Nowadays when a enterprise have a problem with the competitors, there are some agencies have enough authority to solve problems:
Environment protection agency
Market control Department
Department price Management
Vietnam Standard and Consumer Association
From establishment stage until present, SEV has never infringed law competition. When launching any products, they must have an obvious origin. Moreover, product description about weight, size, capacity, productivity and durability is vital. SEV has to produce its products which are appropriate with description because Market Management will check the quality and weight products then announcing that SEV’s products achieve standard or not. In addition, detective responsibility is known as action for not good products. If a product is damaged, SEV must have policies for example fixing products or allowing customers can change to other products. When the customers think the products of SEV have a problem, they can call the agencies to check it. But, SEV uses anti-counterfeit stamps or sophisticated designs to make sure Samsung’s products not to be counterfeit and to protect the brand for SEV.

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Reference :
1.1
http://www.samsung.com/vn/aboutsamsung/corporateprofile/affiliatedcompanies.html http://www.samsung.com/vn/aboutsamsung/careers/jobavailability/Careers_JobAvailability.html http://www.samsungled.com/eng/main/index.asp http://www.scp.samsung.com/ http://www.jays.se/site/company/about.html
1.2
http://www.samsung.com/vn/aboutsamsung/corporateprofile/download/Samsung_Profile_2011-EN-final-revise%281111%29.pdf
1.3
http://www.samsung.com/vn/aboutsamsung/citizenship/activities.html http://www.samsung.com/vn/aboutsamsung/citizenship/ourcitizenshipfocus.html http://www.samsung.com/us/aboutsamsung/corpcitizenship/environmentsocialreport/environmentsocialreport_EthicsManagement.html
2.3
http://www.luatcanhtranh.com/competition-law/nd5-ls.012.1.html