Balanced Scorecard Study – Samsung

Kashun Davis TMAN 680 Fall 2012 balance Scorecard Samsung Samsung is the technology-based organization that willing be the subject for my Balanced Scorecard. Founded in 1938 in Seoul, South Korea, Samsung Electronics Co. Ltd. engages in the manufacture, distribution, and sale of finished electronic products and machination solutions worldwide. They offer consumer products, including mobile environs, tablets, televisions, Blu-rays, DVD players, home theaters, multimedia players home appliances, much(prenominal) as refrigerators, washing machines, air conditioners, etc Lap filchs and personal computers.The company also designs and manufactures incorporated circuits for digital information storage in consumer electronics. It has operations in Korea, U. S. , Europe, Asia, Africa, Africa and China. Because of the huge size of the Samsung Corporation, I will focus on Samsung smartphones, one of their technology-intensive line unit of measurements. The vision of Samsung Samsung is de dicated to developing innovative technologies and efficient emergencees that get stark naked trades, enrich peoples lives, and continue to make Samsung a digital leader. Their tutelage statement, At Samsung, we follow a simple business philosophy to move over our giving and technology to creating superior products and services that contribute to a part globular society. Samsungs net sales have risen from 158. 9 jillion in 2007 to 220. 1 gazillion in 2011. Their total assets grew from 280. 8 one thousand million in 2007 to 343. 7 one million million in 2011. Unfortunately their total liabilities went from 181. 7 billion in 2007 to 202. 6 billion in 2011. Stockholders equity almost doubled from 80. billion in 2007 to 141. 1 billion in 2011. Samsungs net income also increased from 12. 9 billion in 2007 to 21. 2 billion in 2011. Its also not strange to see their employee base increase due to their explosive produce over this five-year time span. They had 254,000 employee s in 2007 and now have over 344,000 employees in 2011 (About Samsung, 2010). Their electronics division has 190,500 employees at the end of 2011. With respect to the Smartphone business unit out of the 1. billion mobile phones sold worldwide in 2011, Samsung accounted for 330 million of those units. Their Galaxy S II sold more than than 20 million units since its launch in 2011. In 2012, Samsung launched the Galaxy S III and expects to ratify their brand and increase market shargon in the mobile phone arena (About Samsung, 2010). The match circuit board is defined as a management system that maps an organizations strategic objectives into performance prosody in 4 perspectives financial, internal processes, guests, and learning and harvest-tide ( give the sackMBA, 2002).The four perspectives mentioned to a higher place 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, challenges, 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 care 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 ironware as Apple, Google, and Blackberry.Samsung exclusively uses Googles humanoid officious OS for their phones. another(prenominal) challenge Samsung faces, is that their mobile phone s are not only in emulation with other phones that have different 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 exist that uses the Android operating system (Valazco, 2012). Fortunately for Samsung they overlook 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 each other. The strategic measures chosen for the Learning & international deoxyadenosine monophosphateereere offshoot Perspective were chosen based on information listed in the Samsungs annual report. Samsungs employees have grown over the past hardly a(prenominal) years. Samsungs social etwork presence is currently greater than their competitors, but there is always room for improvement. Samsung invested $8B USD in R&D, which this funnels down to organisational capital and learning from their competitors. With respect to the Internal movement Perspective $8B USD were invested into R&D for innovation. node Satisfaction is never perfect in any organization, thus leaving room for improvement. Not to mention guest pleasure can translate into sales. pull offment of operations was chosen because process improvement is always needed in an organization.The customer perspective measurements are strengthening the brand, gaining OEM market serving, and exceeding customer expectations. All 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 cloak the customer, internal, and le arning & growth perspective measures and vice versa. This provides a top to bottom and bottom to top flow balanced measures. Learning & puzzleth Perspective Objective Measure Target enterprisingnessGrow Human Capital Of Employees in Samsung Electronics Division 200,000 employees vulturine Recruitment and computer storage curriculum Improve Information Capital Social authorizeworking Effectiveness 6 Million Twitter Followers 40 Million Facebook Likes Aggressive & Interactive Social Networking Campaign Build Organizational Capital Submittal of Employee Ideas 5,000 Employee Ideas Submitted stock Organizational Learning Study of Samsung Mobile Division (Amiri, 2010) Learn from our Competitors Mobile OEM Market distribute add-on Mobile OEM Market Share by 20% psychoanalyse competitors customer base and meet the needs of that customer base by dint of innovative mobile technology Internal Process Perspective Objective Measure Target Initiative Manage Innovations produ ctive Research & Development Projects Double R&D Projects Allocate more capital to R&D projects and their carrying out Manage Customer Relations Customer Satisfaction Double and father Customer Satisfaction scores Aggressive ustomer service training for employees Manage operations Value Added & Non-Value Added Operations Increase Value Added Operations and Reduce/eliminate non-value added operations Lean Six-Sigma Process Improvement Initiative (Qun, 2012) Customer Perspective Objective Measure Target Initiative assure 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/share 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 businesslike 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). increase the Intellectual 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 fr om http//www. netmba. com/accounting/mgmt/balanced-scorecard/ Samsung Group. (2011). Samsung profile 2011. Retrieved from http//www. samsung. 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 SUCCESS FACTORS FOR SUCCESSFUL LEAN SIX SIGMA IMPLEMENTATION IN PAKISTAN. Interdisciplinary Journal 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/