For Grade 8A
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New Case Studies Discuss Question
In
2012, a Korean company called Samsung Electronics, Inc. was reported in
the market’s leaflet that they have served around 1.3 million customers
in the world. In 2013, their achievement was again reported in the
Electronics Industries market’s leaflet that 7.9 million out of 8.5
million total customers worldwide commented on their significant service
quality improvement. But this time their leaflet reported that they
have an increased in production cost value around $450K that last year.
Discuss whether Samsung will automatically obtain more profit in 2013 compared with 2012
Time to submit the question is
From
25 November 2013
to
1 December 2013
Please Write Your Response in 500 Words
Source: bipinkala.blogspot.com
Samsung is a large multinational company with a headquarter in Samsung Town, Seoul, South Korea. Founded in 1936 and producing products such as Apparel, chemicals, consumer electronics, electronic components, medical equipment, precision instruments, semiconductors, ships, and telecommunications equipment and employing 427000 people. Their revenue increase up to $268,8 billion in 2012. The problem is will Samsung will automatically increase in 2013 compared to 2012 ?
ReplyDeleteBasically Samsung has a advantage in large market share which means the portion of a market controlled by a particular company or product. Market share also is a key indicator of market competitiveness, which measure how well a firm is doing against its competitor’s. Samsung has 32% of global Smartphone market, followed by apple which has 12% of global Smartphone market. However, both companies sold many more phones than they did a year ago for the same quarter. Samsung sold more than 80 million smartphones and Apple sold more than 30 million. According to Gartner, the growth in Smartphone sales comes mostly from Asia, where Smartphone costs are getting so low that they don't cost much more than regular feature phones. Larger market share for Samsung means higher sales revenue which makes more profit. After looking at a increasing trend of Samsung market share from last years, probably Samsung will achieve more market share this year and gain more profit.
After more customer satisfied on the products that Samsung made has achieve, more people will trust Samsung products and more people will buy their products and increase Samsung sales revenue. They also increase the productivity of their products which will increase their sales revenue and profit.
But still Samsung won’t obtain more profit this year automatically because their production cost run up to $450K last year and we still don’t know if their production cost will increase or decrease this year which can affect to their profit and to achieve increase in profit they must work harder this year. Also some people are complaining about the qualities of their products for example their problems with new released products such as S 3. Some people are complaining about their unresponsive or less responsive touch screens so people who bought it will feel disappointed and less wanted to buy another Samsung products.
The conclusion is that Samsung won’t automatically obtain more profit in 2013 compared to 2012 even to large multinational company like Samsung they needs hard work and good strategies to get more profit this year.
Nicolas Samuel
South Samsung Electronics Co., Ltd. is a South Korean multinational electronics company headquartered in Suwon, South Korea. It is the flagship subsidiary of the Samsung Group and has been the world's largest information technology company by revenues since 2009. Samsung Electronics has assembly plants and sales networks in 88 countries and employs around 370,000 people. Samsung has long been a major manufacturer of electronic components such as lithium-ion batteries, semiconductors, chips, flash memory and hard drive devices for clients such as Apple, Sony, HTC and Nokia. In recent years, the company has diversified into consumer electronics. It is currently one of the world's largest manufacturers of mobile phones and smartphones fuelled by the popularity of its Samsung Galaxy line of devices. The company is also a major vendor of tablet computers, particularly its Android-powered Samsung Galaxy Tab collection, and is generally regarded as pioneering the phablet market through the Samsung Galaxy Note family of devices. Samsung has been the world's largest maker of LCD panels since 2002, the world's largest television manufacturer since 2006, and world's largest manufacturer of mobile phones since 2011. Samsung Electronics displaced Apple Inc. as the world's largest technology company in 2011 and is a major part of the South Korean economy.
ReplyDeleteAs said in the article, Samsung has significantly increased its quality of service and goods in the current year of 2013. As a result, Samsung had about 7.9 comments from their customers about the significant increase of their quality of goods and services. This can result in an increase in customers for the year 2013, because more individuals will know that Samsung had increased their quality of goods and services which can potentially satisfy consumers more than the last year. Samsung had recently released a new innovative gadget, called Samsung Galaxy Gear, which is in their most profitable series, the Samsung Galaxy Gadgets. Samsung Galaxy Gear is a wearable, computing smartwatch device developed by Samsung that functions similar to a Smartphone. The Samsung Galaxy Gear is expected to officially debut in early September 2013 at a reported price of $300. The Galaxy Gear will reportedly offer a primary focus on mobile fitness and health tracking, and will include features like a Wi-Fi radio, a 4 megapixel camera, speakers, a microphone and Samsung S Voice command capabilities that can be used when paired with a compatible Samsung Smartphone. By the release of this Samsung Galaxy Gear, along with Samsung Galaxy Note 3 and Samsung Galaxy Note 10.1, which all run on the latest Android Jelly Bean 4.3 Mobile Operating System, it is expected for Samsung to have an increase in total revenue or sales, and may increase Samsung’s profit. But in order to compete with the high-quality Apple products like the new iPhone 5S and iPhone 5C, Samsung must increase their quality of the gadgets to attract higher class customers, while maintaining a considerable price for the middle class customers, which generally Apple products are too expensive for them. This increase in customers can generate more revenue or turnover, but it has its costs.
In contrast, an increase in quality means a higher cost for the production of Samsung’s products, and maintaining the considerable selling prices may even reduce its profits, but not necessarily reduce its revenue, if not it actually increases their revenue. We do not know how much increase in revenue the company received in both 2012 and 2013, but we can determine whether Samsung will have an increase or decrease in profits from 2012 to 2013. If their total revenue has increased up to a point it is larger than the increase in production costs for better quality goods and/or services, we can say that Samsung had or will gain more profit in 2013 than in 2012, but this also applies in the opposite way. If their increase in production costs is more than the total increase in revenue or turnover, we can say that Samsung had or will have fewer profits in 2013 than in the previous year.
ReplyDeleteTo conclude what we have discussed, the data supplied from the case study article about Samsung’s increase in Quality of service and higher costs of production is insufficient, as there are no exact statement that contains numerical data about their increase or their current level of revenue whatsoever. If the increase in revenue is more than the increase in production costs, we can conclude that Samsung has an increase in profits, and vice versa, but due to insufficient data, we cannot exactly conclude whether Samsung will automatically receive more profits in 2013 than in 2012.
Ivan Alexander, 8A
Samsung Electronics. Inc is a South Korean multinational company producing electronics ranging from TVs to smart phones. The leaflet provided that Samsung Electronics has had an increase in sales from 1.3 million customers worldwide in 2012 to 8.5 million. Samsung uses the sales maximization strategy, rather than profit maximization. Profit maximization mean to increase revenue and to reduce costs as much as possible. This can be done by increasing price or reducing production costs. Sales maximization, however, focuses on the increase in the volume of sales of its products. Samsung produces a range of variations of a product. Taking the example of a phone, Samsung produces high-end, expensive smart phones such as the Galaxy S4, but also produces cheap phones.
ReplyDeleteIt is possible that Samsung Electronics will have an increase in profits due to an increase in customer volume. Samsung’s sales have increased more than 6 times in 2013, compared to 2012. An increase in customers may lead to an increase in profits, assuming market price for their products remains the same or rises. It is mentioned in the passage that customer satisfaction has also increased. More than 90% of the number of customers has commented on their significant service quality improvement. This means that there has been an increase in customer satisfaction. Customer satisfaction may lead to customer loyalty, because satisfied customers have the tendency to buy more products of the same brand and spread the word about the quality of the product, creating word-of-mouth advertisement. Therefore, more people will buy their products, and profits may rise even further.
However, it has been said that production costs has increased around $450.000 in the past year, possibly due to technological advancements forcing the company to buy newer, more expensive machines to survive market competition. Increased production costs may indicate a fall in revenue, as the company would need to spend a lot of money on capital and possible training to workers. Also, there might be a significant increase in running costs such as energy bills. This could be made worse if the prices of Samsung products have dropped due to the market competition. The difficult competition has encouraged firms to keep lowering their prices or customers will buy a substitute product with a cheaper price. The increase in customers may have been only because of falling prices of their products. It is also not known if there was an actual rise in revenue, or only a rise in the number of customers. If there is no rise in revenue, the increased cost of $450.000 may put the firm in a severe loss. Increase in sales may be motivated by a number of reasons, major examples include falling prices or hiring more experienced, skilled and expensive workers. Hiring skilled workers may push sales up, but costs on labour will also increase as skilled workers have to be paid a large amount in order to keep them in the company. Even if there is an increase in gross revenue, increased income taxes may cause the firm to have lower profits than before.
In conclusion, there has not been sufficient evidence in the passage to show whether Samsung Electronics will have an increase in profits. To find out if Samsung has an increase in profits, several factors has to be known, such as increase in sales, no change or decrease in production costs, constant or increasing price of products, and other costs such as labour and rent.
Samsung Group is a South Korean multinational conglomerate company headquartered in Samsung Town, Seoul. It comprises numerous subsidiaries and affiliated businesses, most of them united under the Samsung brand, and is the largest South Korean chaebol (business conglomerate). Samsung not only sell electronics good but they also produce food processing, textiles, insurance, securities and retail. Samsung entered the electronics industry in the late 1960s and the construction and shipbuilding industries in the mid-1970s; these areas would drive its subsequent growth.
ReplyDeleteSamsung have many competitors that sell electronic goods also like apple, nokia, htc, sony, and the other china electronics. as I learned in economics class that Samsung target is a sales maximization rather than profit maximization. The difference between profit maximization and sales maximization is that the profit maximization target is to maximize profit as much as they can. Many small business or company target is to maximize profit as they can because the small business need more money for the business money . the term of sales maximization is to maximize sales. Usually some business use the strategy of sales maximization because profit maximization can make a loss of money because who know if the consumer don’t want to buy the goods from the company right? Because Samsung have many competitors and Samsung didn’t control the market of the phones because there are many competitors that sell the phones that cheaper than Samsung. The reason why Samsung strategy is to sales maximization is because they want many people to buy their product because Samsung phones is cheap the price range is from $50-$700. While apple company target is profit maximization because they sell apple phones is expensive more than $500 and we cannot find apple phone that is cost $50.
If Samsung want to increase the production cost more $450k than last year maybe Samsung can receive more profit or no profit. We still don’t know if the cost of production of the phones last year how much because it can affect the price of the phone and the profit of Samsung. If Samsung want to produce more phones than last year they can produce the cheap one and receive less profit or they can make a little amount of the expensive phone and receive many profit from the sales or they can produce new phone with better quality . The Samsung company must think of a new product that the people want to buy. They must improve the old model phone to the new one. The customer of the Samsung phones want to buy the new Samsung phones but with the better quality and better feature. With that new product Samsung can make more profit than last year because they have more improvement. Samsung must work harder and think harder to produce the new phone to receive much profit. The customer of Samsung will feel satisfied after buying the new phone with better quality and better feature. The customer will trust Samsung more than other phones.
The conclusion of the passage above is Samsung must think and wrk hard for the new phones and obtain more proft than last year.
Profit is the money a business makes after accounting for all the expenses. Regardless of whether the business is a couple of kids running a lemonade stand or a publicly traded multinational company, consistently earning profit is every company's goal. In this case, we are talking about Samsung Company. In a few years ago, Samsung is being the most talk and most sensational phone or gadget in the entire world. Before that Apple is the most sensational or the best gadget, but when Samsung tries to launch new product of their technology or gadget, the demand of getting an Apple product is decreasing. In 2012, a Korean company called Samsung Electronics, Inc. was reported in the market’s leaflet that they have served around 1.3 million customers in the world. In 2013, their achievement was again reported in the Electronics Industries market’s leaflet that 7.9 million out of 8.5 million total customers worldwide commented on their significant service quality improvement. But this time their leaflet reported that they have an increased in production cost value around $450K that last year.
ReplyDeleteSamsung Electronics Co., Ltd. is a South Korean multinational electronics company headquartered in Suwon, South Korea. It is the flagship subsidiary of the Samsung Group and has been the world's largest information technology company by revenues since 2009. Samsung Electronics has assembly plants and sales networks in 88 countries and employs around 370,000 people. For 2012 the CEO is Kwon Oh-Hyun. Samsung has been the world's largest maker of LCD panels since 2002, the world's largest television manufacturer since 2006, and world's largest manufacturer of mobile phones since 2011. Samsung Electronics displaced Apple Inc. as the world's largest technology company in 2011 and is a major part of the South Korean economy.
There might be some reason why the profit in 2013 Samsung Company will increase. The people or publics taste. People have many different kind of type. There is a person that likes big technologies. Some people also like small and simple technologies. So some people like the way Samsung looks like and the system of androids looks like.
The price of the technologies of Samsung is affordable. It means more people can buy the technologies. If there is many people buy the technologies, the demand of Samsung increases, because people wanted an advance price with an affordable price. Apples price is much higher than Samsung but Samsung’s technologies are more advance
The promotion of Samsung. Samsung is making more and more promotion so that the product of Samsung will sold more. There are making advertisements so those people or public’s demands for Samsung increase. For example, Purchase Samsung GALAXY Note 3 & Gear and receive over $550* worth of value. Purchase both a GALAXY Note 3 and a GALAXY Gear from a Samsung Experience Store in one transaction and receive a bonus apps and entertainment package worth over RRP$550*.
The last one is the advance of Samsung technologies. Each year, Samsung is making new model of technologies and producing new kind of system. This kind of difference attracts many publics and people.
So the conclusion is that Samsung can get a profit in the end of 2013. They will got the profit if they still did the same thing like before but make it more advance. If they still making promotions, producing more advance technologies, make the price higher but still make it affordable because the demand is high and if there is high demand the company can increase their prices. If Samsung company still keep on doing this each year then they will more or less profit each year
WINSON
Firstly, profit is the amount remaining after subtracting the total income that a company received, monetary cost of all business activities. It measures both the financial status of the firm and the effectiveness of the firm’s decision making and it is the objectives of most people are aiming by starting their business. In 2012, a Korean company called Samsung Electronics, Inc. was showed in the market leaflet’s that they have served around 1.3 million customers, now, in 2013, their achievement was reported that 7.9 million from 8.5 million total customers worldwide commented for their improvement of service quality. But there is a disadvantage for the company as their cost of production increases by $450K which it might affect the profit maximization.
ReplyDeleteProfit can increase in many ways such as lowering the cost of production or cost of making the products, increase in sales of the smart phone, increase the cost of product. Here, Samsung’s quality of service increases which satisfy more customers that consume the good. It is an advantage for them because the loyalty has increased and they may achieve customer satisfaction, by having customer satisfaction, consumers will consume more goods and increase the sales of the company which it is one of a business objective. Aside from that, Samsung also produces other types of smart phone that is cheaper compared to their well-known products like Samsung Galaxy Note I, II and III. This objective is to develop more creative ideas with the same product, which is smart phone and enable more people to buy it as the price is not really expensive and most people can effort it.
However, there is a problem for the company in 2013, Samsung sales increases but cost of production also rises up to $450K, when cost of production is rising, less profit will be achieved as they need to pay more things such as material costs, salary of workers and electricity costs. They might end up in receiving lower profit than last year although the income this year increasing due to the improvement of service quality. The cost of production can likely be effected by hiring more skilled workers that is needed to produce and create new types of products, purchasing more capitals like machines due to technology advancement each year so that they can compete with other electronic company especially if it is a famous and well-known company like Apple, it is the most important thing for a business to survive, other factor is the running cost that is increasing. If they want their company to earn profit maximization, they should minimize the cost of production for example being a capital intensive or just labour intensive so that they don’t need to pay more on both wages and capitals. If Samsung keeps on increasing more production cost, the economy of the company is dangerous because it can just lead to loss.
As the conclusion, Samsung Electronics, Inc. will not obtain as much profit in 2013 as compared with 2012 because of high cost of production this year which it is a disadvantage of the company. But, the company can still decrease the cost in many ways so that they can get profit maximization at the next year.
Felicia Angeline 8A
This comment has been removed by the author.
ReplyDeleteWhile, Yes I agree that Samsung will automatically obtain more profit in 2013 compared with 2013, because as profit is total revenue decreased by the total cost of production, from 2012 to 2013 the total of sales has increased from 1.3million to 8.5million customers which is 7.2million increased of sales to customers, which of course means that their sales increased approximately 650%. By having a having an increase of sales it means that the revenue is increased. And in the Electronics Industries market’s leaflet it is said that 7.9 out of 8.5 million of the total customers worldwide enjoyed the significant service quality improved from 2012, or in other words most of the customers are satisfied with the service given by the industry. But because profit is the decreased of total revenue decreased by the total cost of production, the increase of the cost of production would make less profit for them, which is because that their cost of production is increased by 450K. But because the more revenue they obtain, they could cover the cost of production which would make them to obtain more profit because the revenue obtained in 2013 is much more than the revenue obtained in 2012 which could of course covers the cost of production. For example, if the price of the goods is $800 and the cost of production is $600, then it means that the total cost of production in 2012 would be $780million which means that the profit would be $260million, but in 2013 when the sales is higher 7.2 million than 2012, which means that the total revenue for 2013 is 6800million sales and the total cost of production is $5100million 450 thousand which in total, the total profit is approximately $1700million in 2013, so the difference in 2012 to 2013 is increased by approximately $1400 of the profit which means that the business would gain more profit in 2013 rather than 2012 because profit is relevantly to total revenue decreased by total cost of production which in the article states that Samsung has an increased in customer which means that the revenue is increased and the sales is increased which the cost of production is less or only increased by $450K. Which the total revenue increased is more than the increase of the total cost of production which it means that it is relevant to the profit gained more by Samsung because by having higher revenue and having only little amount or less amount of increase in cost of production means that they earn much more profit than in 2012 even though in 2012 they have less cost of production, in 2013 they have more revenue or sales and satisfaction from most of the customer which means that of course they gain more profit than in 2012. By having satisfaction to the customers for their service means that they are satisfied and could also buy more goods and services from the company which means that they also might have higher revenue from 1 costumer if the customer is satisfied with the goods and services given, they might buy more than 1 goods and services from the industry.
ReplyDeleteBrian.A
8A
First of all, a company can reach their maximum number of profit or we called profit maximisation by increase their selling price or the total revenue and minimise their total cost of production. In this case, in 2012, the Samsung Electronics company served around 1.3 million customers in the world, and in 2013, around 7.9 million customers out of 8.5 million customers in the world commented on their significant service quality improvement. And they will get more profit in 2013 as compared in the 2012.
ReplyDeleteThere are several ways to increase business profit. Which is by lower the cost of sales, economies of scale, which large scale of production can reduce average cost, increase their production which is the total number of unit can make them to sell more which can lead them to get more profit, increase productivity per person or time also can increase profit, because we will produce more product per person, by minimizing waste, and increase the selling price. By increase the selling price, it can make us to earn more profit and make us become profitable business. As like Samsung, they can get more profit in 2013, even their production cost increased by $450K, they can increase their seling price in order to get more profit. In 2013, samsung will get more profit because it is said than around 7.9 million customer comment that samsung have increased their services. When a business increased their performance, more customer will be satisfied with their service and more customer will buy their product. Even they have increased their cost by $450K, they also will get more profit by increase their selling price and by the increasing number of production.
Against the statement above, we can see that Samsung electronics served 1.3 million customer in 2012 and in 2013, Samsung company commented by 7.9 million people out of 8.5 million people, that they have significant improvement on their services. Even they have increased in production cost value around $450K than last year, it still can make them more profitable compare to their profit last year. This could happen because when they sell their product, they will sell it with more higher price. They can obtain more profit even they spend more cost for their production. They know that customer is the most important role for their business in order to get more profit in 2013.
In conclusion, samsung will get more profit in 2013 as compared in 2012, because they will get more customer by the increasing of their services and their performance and will lead them to be more profitable business. Even their cost of production have increased, they also can increase their selling price in order to get more profit, because we get profit from total revenue minus its total cost of production.
Vienetta Christina
8A
As said by the market's leaflet, there's an increase in Samsung's number of customers from the year 2012 to 2013.It's also said that most of Samsung's customers said that Samsung has improved their product's quality.Samsung's cost of production has also increased by 450 thousand dollars.
ReplyDeleteBecause there's an increase in Samsung's number of customers,there should more profit coming to Samsung.But we can't say for sure because we don't know the price of products sold by Samsung,maybe because of the cheap price Samsung offered, more customers are attracted into buying their products.And if they will charge lower price for their products, there would be less profit coming.But in the passage, it's also said that Samsung has improved their quality and increased their cost of production by 450 thousand dollars, because of the quality improvements and the increase in their cost of production, Samsung might increase the price of their products.So there's really not enough information to say clarify that Samsung has gained more profit in 2013.But we can say that there's a significant increase in Samsung's number of customers, thus, no matter the decrease or increase in the price of their products, Samsung will surely make more profit.We can at least say that Samsung has gained more profit because there's a very large difference between the number of Samsung's customers from 2012 to 2013.But still, if we don't know the price of the products. we won't know the total revenue of Samsung at 2013 and at 2012 and compare them.Samsung also won't point out their total cost, we also can't compare them both,therefore we can't compare Samsung's profit in those 2 years.But there's just inadequate information to really know if Samsung has gained more profit or not has not gained more profit in 2013.
As said before, we can't really say that Samsung has gained profit in 2013,because there's just inadequate information.People may say that Samsung would surely gain more profit,this is partly correct because the difference of Samsung's customers between 2012 and 2013 is just too big,but some might say that they still agree that Samsung has gained more profit in 2013.They need to know Samsung's total revenue in 2012 and 2013 first and compare them.Let's just say that Samsung sold a certain product at the price of $50 in 2012 and at 2013, they sold it at the price of $80,then we can be sure that Samsung will surely gain more profit at 2013.But since they clearly didn't tell us anything about the price of those products, we can't just say that Samsung has gained more profit in 2013.Also,Samsung lost $450 thousand for production purposes,because of this Samsung's profit will decrease,thus we can't say for sure that Samsung will gain profit at 2013.
So the conclusion is that, there's just not enough/inadequate information for us to tell whether or not Samsung has gained or lose profit in 2013,we can just say that Samsung has not has a loss at 2013.Even if they told us that Samsung has a significant increase in their number of customers,the information given is still insufficient.
Jovan Pan
8A
Samsung Electronics Co Ltd is a multinational electronics company from South Korean that headquartered in Suwon, South Korea. It has been the largest information technology in the world by revenues since 2009. Their electronics has assembly plants and sales network in 88 countries, and also, it employs around 370,000 persons. They already increase in sales rapidly from 1.3 millions customers in the world on 2012 and become 8.5 millions.
ReplyDeleteIt’s possible for Samsung Electronics to have an increase in profits in 2013 compared with 2012. It’s because they have done the ways to increase the business profit. First is by increasing customers’ volume. It can be increased because Samsung makes the price cheaper and make more applications and services that make satisfaction of the customers. Also economies of scale, where the larger the scale of production, the lower the average cost, and can make them to sell more and make more profit than before. Economies of scale happen if there is more customers’ volume. So it’s related with the first way. Also by increasing the selling price can make us to earn more profit. If Samsung, they can earn more profit in 2013 as stated before. Satisfaction of customers is needed also, if they enjoy of using the product and satisfied with the product itself, they will earn more on that product.
On point against, we should see that becoming the largest information technology in the world is not an easy thing, because they have to see their services. Also, we can see that the cost of production is high; the machines needed, employees, etc. and the production cost more than revenue increases, so we can say that fewer profit they get. Also in making more production scale, it needs more machines; or machines that have higher quality, if we use man-made resources, it needs the workers that have higher education or skilled people, but it will not have that much of possibility. And they also can be included that the cost of production is high.
On conclusion, Samsung Electronics Co Ltd gets more profit on 2013 if we compared with 2012 however there are some points against.