Samsung Company Timeline and Structure 15/11/2013

Submitted by: Priyanka Pandya (A-30)

INTRODUCTION:

From its inception as a small export business in Taegu, korea,

Samsung has grown to become one of the world`s leadingelectronics

companies, specialising in digital appliances and media, semiconductor, memory, and system integration. Today Samsung`s

innovative and top quality products and processes are world

recognised. This timeline captures the major milestones in

Samsung`s history, showing how company expanded its product lines and reach, grew its revenue and market share, and has

followed its mission of making life better for consumers around the

world.

Present 2000 1997 1994 1990 1980 1970 1938

1938-1969-Samsung`s Beginning

On March 1, 1938, founding chairman Byung-Chull Lee started a business

in Taegu, Korea, with 30,000 won. At the start, his business focused

primarily on trade export, selling dried Korean fish, vegetables, and fruit

to Manchuria and Beijing. In little more than a decade, Samsung—which

means "three stars" in Korean—would have its own flour mills and

confectionery machines, its own manufacturing and sales operations, and

ultimately evolve to become the modern global corporation that still bears

the same name today.

Timeline:

1970 Black-and-white TV (model: P-3202) production started by

Samsung-Sanyo

1969 Samsung-Sanyo Electronics established (renamed Samsung

Electro-Mechanics in March 1975 and merged with Samsung Electronics in March 1977)

1966 Joong-Ang Development established (known today as

Samsung Everland)

1963 DongBang Life Insurance acquired (renamed Samsung Life

Insurance in July 1989)

1958 Ankuk Fire & Marine Insurance acquired (renamed Samsung Fire & Marine Insurance in October 1993)

1954 Cheil Industries Inc. founded

1951 Samsung Moolsan established (now Samsung Corporation)

1938 Samsung founded in Taegu, Korea

Simple structure:

Simple Structure:

As seen from organizational chart, company possess simple structure

initially. Simple structure is not elaborated. It is low in complexity, has

little formalization and has authority centralized in single person. The

simple structure is depicted best as a flat organization, with an operating

core and almost everyone reporting to one person strategic apex where

the decision-making power is centralized.Often employees work in all

parts of the business and don’t just focus on one job creating little if any

departmentalization. In this type of design there are usually no

standardized policies and procedures.

1970-1979-Diversifying in Industries and

Electronics

In the 1970s, Samsung laid the strategic foundations for its future growth

by investing in the heavy, chemical, and petrochemical industries.During

this time, the company also took steps to enhance its competitive position

in the world's textile industry, integrating its manufacturing processes from raw materials to end products. As a result, many new companies

were created, including Samsung Heavy Industries Company in 1974 and

Samsung Shipbuilding and Samsung Precision Company (now Samsung

Techwin) in 1977.Another burst of growth for Samsung came from the burgeoning home electronics business. Samsung Electronics, already a

major manufacturer in the Korean market, began to export its products

for the first time during this period. Samsung also acquired a 50 percent

stake in Korea Semiconductor, further solidifying Samsung Electronics' position as a leader in semiconductor manufacturing.

Timeline:

1979

Began mass production of microwave ovens

1978

4 millionth black-and-white TV (most in the world) produced

1977

Samsung Precision Co. established (now Samsung Techwin) Started export of colour televisions

Samsung Fine Chemicals established

Samsung Construction established

1976

1 millionth black-and-white TV produced

1974

Samsung Heavy Industries incorporated

Samsung Petrochemical established

Began washing machine and refrigerator production

1972

Began production of black-and-white televisions for domestic sale

Structure:

Structure will be simple here also. Only difference is complexity will

slightly increase, has little formalization and has authority centralized in

single person. Span of control will increase as more departments are

added to the company.

1980-1989 Entering the Global Marketplace

Samsung's core technology businesses diversified and expanded globally

during the late 1970s and early 1980s.In 1978, Samsung Semiconductor and Samsung Electronics became separate entities. Samsung Aerospace

Industries (now Samsung Techwin) was launched in February 1987, and

Samsung has been developing its aerospace capabilities with

unprecedented speed ever since. Samsung also entered the systems development business, establishing Samsung Data Systems in 1985 (now

Samsung SDS) as a leader in information technology services, including

systems integration, systems management, consulting, and networking

services. Samsung's increasing focus on technology led to the creation of the company's two research and development (R&D) institutes that

helped expand its reach even further into electronics, semiconductors,

high polymer chemicals, genetic engineering, optical telecommunications,

aerospace, and new fields of technology innovation from nanotechnology

to advanced network architectures. In 1987, Samsung's founding Chairman Byung-Chull Lee passed away after almost 50 years at the helm

of the company. His son, Kun-Hee Lee, succeeded him as the new

Chairman. During this period, Samsung challenged itself to restructure old

businesses and enter new ones with the aim of becoming one of the world's top five electronics companies.

Timeline:

1989

Samsung BP Chemicals founded.

1988 Samsung Semiconductor & Telecommunications Co merged

with Samsung Electronics. Home appliances,

telecommunications, and semiconductors selected as core business lines

1987 Samsung Advanced Institute of Technology opened for R&D

purposes

1986 Developed the world's smallest, lightest 4mm video tape

recorder

1984 First VCRs exported to the US

1983

Began production of personal computers (PCs)

1982 Name changed from Korea Telecommunications Corp. to

Samsung Semiconductor & Telecommunications Co.

1981 First microwave ovens (model: RE-705D) exported (to

Canada)

1980 Began producing air conditioners

Professional Bureaucracy:

Professional Bureaucracy:

Above chart illustrates the configuration for professional bureaucracy. The

power rests with operating core because they have the critical skills that

the organization needs, and they have the autonomy-provided through

decentralization-to apply their expertise. The structure is high in

complexity and there is lots of rules and regulations; however the

formalization is internalized rather than imposed by organization.

1990-1993-Competing in a Changing Tech World

The early 1990s presented tremendous challenges for high-tech businesses.Mergers, coalitions, and buy-outs were common while

competition and consolidation flourished. Companies were pressed to

rethink their technology and services offerings. Business began to flow

across borders between countries and companies. Samsung made the most of these opportunities by refocusing its business strategy to better

respond to market demands.

Timeline:

1993 Samsung Advanced Institute of Technology (SAIT) developed first-ever digital video disk

recorder (DVD-R)Samsung Electronics acquired U.S. firm HMS

1992 Developed mobile phone system

Development of 250MB hard disc drive completed

Development of world's first 64M DRAM completed

Acquired Kukje Securities Co., today known as Samsung Securities Co., Ltd.

10 millionth industrial robot produced

Began manufacturing in China

World's first 64M DRAM completed

1991 Samsung supported installation of Korean Pavilion at the Royal Museum of England

Development of mobile phone handset completed

Divisional Structure:

Divisional Structure:

The power in divisional structure lies with middle management. The

reason is that the divisional structure is actually a set of autonomous; it

allows middle management –the division management-a great deal of

control. A closer look at divisional structure reveals typically that the

divisions represent a set of ―little companies‖. The divisions tend to be

organized into functional groups, with high division of labour, high

formalization, and centralized authority in division managers.

1994-1996-Becoming a Global Force

In the mid-1990s, Samsung revolutionised its business through a

dedication to making world-class products, providing total customer satisfaction, and being a good corporate citizen – all under the vision of

"quality first."During this period, 17 different products—from

semiconductors to computer monitors, TFT-LCD screens to colour picture

tubes—climbed into the ranks of the top-five products for global market share in their respective areas, and 12 others achieved top market

ranking in their areas. Being No.1 also means fulfilling corporate social

obligations, whether the cause is social welfare, environmental

conservation, cultural events, or sports. To that end, Samsung actively participated in sports marketing, and as a result of its intensive efforts, its

then-chairman, Kun-Hee Lee, was selected as a member of the

International Olympic Committee (IOC) in July 1996, greatly enhancing

the company's image as a key contributor to world athletics.

Timeline:

1996 Development of 1G DRAM completed

Developed world's fastest CPU (central processing unit), the

Alpha chip

Began mass production of 64M DRAMs

1995 Samsung Entertainment Group started

Samsung Advanced Institute of Technology developed world's

first real-time MPEG-3 technology

World's first 33" double-screen TV introduced

1994 Samsung Heavy Industries developed first Korean-built electric

car (SEV-III)

Development of world's first 256M DRAM completed

30 millionth microwave oven produced

Samsung Aerospace developed the world's first four-power zoom camera

1997-1999-Advancing the Digital

Frontier

Despite the 1997 financial crisis that affected nearly all Korean businesses, Samsung was one of few companies that continued growing,

thanks to its leadership in digital and network technologies and its steady concentration on electronics, finances and related services.Samsung

responded to the crisis by reducing the number of its affiliated companies

to 45 (according to the Monopoly Regulation and Fair Trade Act),

decreasing personnel by almost 50,000, selling 10 business units and improving the soundness of its financial structure, lowering its 365

percent debt ratio in 1997 to 148 percent by late 1999.

Timeline:

1999 Samsung Aerospace (known today as Samsung Techwin),

Daewoo Heavy Industries, and Hyundai Space and Aircraft

formed a single business entity, Korea Aerospace Industries

First in the world to mass-produce and offer a full line up of

digital TVs

Developed the world's first 3D TFT-LCD Monitor Developed wireless Internet phone (Smartphone), a small,

multi-function phone

1998 Achieved top share of world’s TFT-LCD market

Mass production of world's first digital TV begun Began mass production of the world’s first digital TV

Development of completely flat-screen TV completed

Served as Olympic Partner at Nagano Winter Olympics

World's first 128M SDRAM introduced

Developed world's first 128MB Synchronous DRAM and 128MB Flash memory

1997 Became a Worldwide Olympic Partner (TOP) in the wireless

communications category

Signed contract to become an Olympic Partner in wireless equipment category for Nagano Winter Olympics

Developed world's lightest PCS (105g)

Developed world's largest TFT-LCD (30)

Development of world's first 30" TFT-LCD completed Announced 2nd phase of New Management

Structure:

Structure here is also divisional that is high on complexity, high formalization and decision is centralized with division managers. Here

more divisions like entertainment group.

2000-Present Pioneering the Digital

Age

The digital age has brought revolutionary change – and opportunity – to global business, and Samsung has responded with advanced techno-

logies, competitive products, and constant innovation.At Samsung, we see every challenge as an opportunity and believe we are perfectly

positioned as one of the world's recognized leaders in the digital

technology industry. Our commitment to being the world's best has won

us the No.1 global market share for 13 of our products, including

semiconductors, TFT-LCDs, monitors and CDMA mobile phones. Looking forward, we're making historic advances in research and development of

our overall semiconductor line, including flash memory and non-memory,

custom semiconductors, DRAM and SRAM, as well as producing best-in-

class LCDs, mobile phones, digital appliances, and more.

Timeline:

2010 Samsung Electronics Held the 4th Samsung Young Design

Award in Italy

Samsung Electronics Introduced Samsung Galaxy Tab to U.S.

Market

Samsung Mobile Display developed flexible AMOLED panel with four times clearer WVGA resolution

Samsung Electronics honoured with 37 CES 2011 Innovation

Awards

2009 Opened the ―visual mobile‖ era with its third generation full

touch Haptic AMOLED

Released the world’s first infrared video phone

Became the first in the industry to acquire TCO 3.0

certification for its notebook computers

Announced its ―Green Management‖ strategy

2008 Launched OMNIA phone

Completed establishing TV manufactory in Russia Kaluga

Became the official sponsor of 2010 Guangzhou Asian Game

Developed the world's first 2Gb 50 NANO

2007 Developed the world's first 30nm-class 64Gb NAND Flash™

memory

BlackJack bestowed the Best Smart Phone award at CTIA in

the U.S.

Attained No.1 worldwide market share position for LCD for the sixth year in a row

2006 Developed the worlds' first 50nm 1G DRAM

Unveiled 10M pixel camera phone

Launched "Stealth Vacuum," a vacuum cleaner with the

world's lowest level of noises

Launched the worlds' first Blu-Ray Disc Player

2005 Developed the largest Flexible LCD Panel Ranked 27th in "the World's Most Admired Company" of

Fortune

Became the official sponsor of Chelsea, the renowned English

soccer club

Released the world's first 7 mega pixel camera phone

2004 Developed the world's first 60-nano 8GB NAND Flash memory

chip

Ranked top in mobile phone sales in Russia

Released new PDP TV featuring the highest contrast ratio in the world

2003 Samsung brand value ranked 25th in the world by Interbrand

Ranked 5th on the "Most Admired Electronics Company" list

released by the Fortune MagazineReleased the first HD DVD

combo

2002 Development of the 54"TFT-LCD, the largest digital TV

monitor in the world

Launches PDP-TV, the slimmest in the worldLaunch of colour

mobile phones in which the new concept UFB-LCD is

introduced

2001 Ranked No. 1 of world's Top 100 IT Companies by

BusinessWeek

Unveils 16 Chord Progression Melody Phone

Begins Mass Production of 512Mb Flash Memory Device

2000 Unveils TFT-LCD with Record-breaking Definition Launches PDA phone

Samsung Olympic Games Phone selected as the official mobile

phone of the Sydney 2000 Olympic Games

TV Phone and Watch Phone Make Guinness Book of World Records

Divisional Structure:

Divisional Structure:

Figure shows how divisional structure is utilized at Samsung company.

Each of its major chains-groups headed by CEO –represents a separate

division. As with all division structures, each division is generally

autonomous, with the divisional managers responsible for performance

and holding complete strategic and operating decisions making authority.

This form has central headquarters that provides support services to the

divisions. Divisional managers are free to direct their divisions any way

they see fit as long as it is within the overall guidelines set down by

headquarters. The divisions are organized, with high division of labour,

high performance, and centralized authority in the division managers.