For Grade 8C
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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 made from South Korea, producing a variety of different products such as TVs, washing machines, and smart phones etc. This time, the issue is about smart phones which is the most profitable product Samsung has been selling in markets all over the world.
ReplyDeleteIt is said that 7.9 million out of 8.5 million of the total customers served by Samsung have commented significant improvement. However, that time of the year they have increased $450K of their production cost. This matter could be a positive yet negative impact on Samsung, but there is a possibility of profit-making and losses in the company.
In 2013, the number of satisfied customers may help increase the business’s confidence on the sales of the products selected by customers as the best sellers and the demand for that product will hopefully increase due to an increase in popularity and positive feedbacks from the society. This could lead to the rise of profit in the year 2013.
Customers are more interested in the recent product of Samsung Galaxy S4 and company received great comments over the product. Not just one advertisement made, but 4 of them, have sure convinced the world about how unique and how Samsung Galaxy S4 is different from the other Samsung cell phone products. This shows that the demand for S4 is increasing which is equivalent to an increase in profit this year when that product was launched to markets.
Compared to 2012, this year in 2013, Samsung is producing more advanced and significant gadgets in which the demands are much higher and company receives positive replies from the customers. For example, the newest Galaxy Note 3.0 with Gear has boomed the market in spite of its high prices. The advertisement of Note 3 has also interested the world with wider screen than Note 2 and of course, the advanced chip used in this Note 3.
Producing and selling variety of excellent smart phones have been the objectives and aims for most businesses all around the world such as Apple, Blackberry, HTC, Sony etc. However, their main objective is profit maximization in which they maximize the sales of goods and to minimize the cost of production in order to achieve higher profit in the end. Samsung could be one of the examples with this kind of objective.
In 2012, Samsung produced lower quality of goods yet there were quite high demands for them. That was because in 2012, the product which was taken interest by customers is iPhone from Apple.
However, this year Samsung has won over Apple with the number of products sold and the demand for smart phones are increasing gradually with the production of excellent technology.
In conclusion, Samsung is obviously producing much more profit in 2013 than in 2012 due to the advanced technology for new smart phones and the increasing demand for them. The company has also received positive feedbacks from more than half of the total customer Samsung served. Together with the increased cost production of value $450K, Samsung will still automatically obtain more profit in this year of 2013.
An electronic brand that originated from Korea, Samsung, first started to produce IC and flash memory. It manufactured Apple products, learnt how to produce a phone and got an idea to produce one. A phone is incomplete without software, Samsung decided to use Android, since Apple’s software cannot be bought. Samsung began to become prosperous as they released their phones and tablets. Samsung’s objective is to fill the market with so many choices of products that satisfies all the needs of consumers. Samsung captured all three markets segments, high, middle and low level by providing consumers with a variety of products.
ReplyDeleteAs Samsung produced more products, production costs increase as they would require a more advanced technology and others. When the production costs rises, the market price remains constantly the same. Thus, Samsung will not obtain more profit in 2013.
Profit is the amount of total revenue deducted by the total cost. When aiming for increased profit, Samsung has to increase its total revenue, reduce its total cost and increase the gap between the total revenue and total cost. In 2013, the total cost increases due to production cost rising, making Samsung unable to acquire more profit than in 2012.
The increase in total cost, decreases the gap between the total revenue and total cost. Thereby, in 2013, Samsung will not earn more profit compared with 2012.
Monique 8C
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.
ReplyDeleteIt is stated that 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. Will Samsung Electronics make more profit in 2013 than 2012? These will make several impacts to the company.
Samsung is now famous for their smartphones and is one of the best smartphone producers all over the earth. Consumers demand it really high. Increasing cost usually will result in a decrease gap of total revenue and total cost, or profit, because when cost of goods sold increase, price will increase. But since Samsung electronics like their smartphones have a really high demand, it might not affect the consumers because of high technology in the Samsung electronics or because of the wide range of choices available to buy such as the Galaxy S4, Galaxy Note, Galaxy Mega, etc. Although most of the times, increasing in cost will reduce gap between total revenue and total cost.
With increase of cost, it might increase the quality of Samsung electronics and increase consumer’s demand to buy it. Increasing of technology could be a reason why consumer’s demand increases although with an increase of price. From year to year, most electronic companies including Samsung Electronics will innovate new technologies, which drives consumer to buy their products. So, there will be an increase in profit.
Although high demand for Samsung electronics might not affect the consumers, what might stop the increase of profit are rivalries. Consumers might turn their interest to other companies with a better and suitable price to be bought such as Apple, Blackberry, Sony, HTC, etc., due to the increase of cost, which increase prices of the products. But a fact is that this year, Samsung sold around 120 million phones, which is more than Apple, Nokia, and LG combined. With this situation, there is a really high chance Samsung will obtain more profit with this huge power.
It is possible that for Samsung electronics, profit might be their main or only objectives. Which means, through the years, all they strive is for profit maximization. So, with this increase of cost, it could be a plan that will lead to an increase in profit.
Increasing cost can include increasing the cost for labor. The more labor that is employed by Samsung electronics, the higher productivity, which increases profit. Increasing cost can also include increasing the cost for capital. The more machines, the less errors made and the higher their productivity which increases profit.
My conclusion is that, Samsung electronics will obtain more profit due to the really high amount of sales and consumer demand for their product although with the increase in cost.
Kevin 8C
Samsung is a brand of an multi national company that made in south korea, it sells many kind of , start from smartphone until laptop, washing machine, and LED tv. Samsung sells phone, from the high class = smartphone, for example: galaxy note 3, samsung s 4.middle = the cheaper one , for example: galaxy y or galaxy x, the last one is the low class, for example: samsung coconut. Now, smartphone is the trend in all over the world. There are so many company that try to sell smartphones, but all of that company fails, the companies that succed is only samsung, apple, and sony. The one that fails is oppo, HTC, nokia, etc. But the biggest competitor for samsung is apple. 7.9 million from 8.5 million of samsung's customer commented that there are many improvement, But the cost increase 450K. If from my self it is ok, because the more customer are satisfied, the more they will tell others about it with good comment. So as the the one who are told will think and I bet that they will research and buy. The more people satisfied, they will buy the new one, because they think that if the old ones already that good, so how about the new one? But if we compare samsung with apple, of course samsung will win, because samsung have hundreds of variety. If apple only over 20. Samsung use the android processor, apple use IOS. Android is more common because it is used in every smartphone except apple. If IOS, it is used in only apple that use it. Samsung always can come up with new ideas like reading mode, driving mode, s pen , etc. So with the 7.9 million people commented good things, it will encourage the company to research more. For example the samsung note 3, it use android 4.3 if I am not mistaken, and it have wider screen, etc. The sales for samsungs product almost never fall, it remains constant, maybe it will increase. So thats mean every time it realease new product, more people will buy . So if the quality increase, more people satisfied and buy, if more people satisfied, more marketshare, if more market share, thats mean that samsung is leading or can beat apple. So the conclusion is that samsung will still make profit even the cost increased.
ReplyDeleteIt is likely to be true that Samsung will receive more profit in 2013 than 2012. In fact, their profit has increased from 9.2% billion to 9.6% billion. Also, not only did their profit increased but also their shares, popularity, demand for their products, market share and so on. Recently, the population of people using Samsung in several countries has increased as well.
ReplyDeleteNot to mention that samsung have recently been creating new technologies with a greater and more advanced utility that attract people’s eyes. For EXAMPLE, the new Samsung Galaxy Note have just been released yesterday and a person bought it. He then realized that the smartphone turned out to be beyond his expectations. Next thing happened he told people about how cool the new gadget is and words starts to spread. Due to that action, people have been buying it and it becomes popular throughout the world. Therefore, that is why Samsung popularity and consumer’s demand for this product has increased wildly in 2013 compared to 2012. The company will keep on producing new, better, unique, great utility and good quality in order for the people to keep on buying their new products.
Samsung is now probably known as a multinational company that is originally from Korea. Therefore, due to the increase in consumers and profit, Korea will receive all the profit made by selling of the smartphone in other countries that sell Samsung since it is the original country that made that gadget.
To answer your question, whether Samsung will automatically obtain more profit in 2013 than 2012, I highly believe that the answer is yes. This is because, as I have said before, Samsung is now more popular than it has been before. Before Samsung has increased its popularity and increased to the same level with Iphone, it didn’t use to be a common smartphone used by commonly people throughout the country. Therefore, if the consuming for the product has increased, sooner or later the company will increase the price in some countries in order to earn more profit. By increasing the revenue and or reducing the cost to receive more profit would indicates that in 2013, it earns more profit. Also, it is because in 2013 there are many gadgets that have also been invented that comes along with good quality and utility. For example, the Iphone. However, what Samsung has done to it’s product that will be unique out of the other gadgets that have been invented is by making a solution to the problems that have been found in most phones. Such as, sometimes some phones aren’t sensitive enough and more. Therefore, what they have done is first figure out the most common problems faced by people who use the gadgets and find out an intelligent solution to fix it and would satisfy and increase people’s welfare. In fact, welfare can increase the demand for the products which can then increase the earning of profit.
Overall, Samsung will automatically obtain more profit in 2013 than in 2012 because of the increase in use of technology and the consumer’s demand for the product which helps the company to earn more profit than it had received before in 2012.
Samsung is a well-known multi-national company from South Korea which serve many products such as smart phones, television, gadgets, washing machine, refrigerator, air conditioner, etc since the objective of samsung company is sale maximisation which means they try to serve all kind of electronic stuff to have as many costumer as possible which also will make them earn many profit but earning many profit is not the main objective.
ReplyDeleteDuring the year 2012 it is stated that the samsung electronic company was reported in the market’s leaflet that they have served around 1.3 million costumers in the world, actually it is already a good achievement that a company can achieve.
But then during the year 2013, their achievement has again reported in electronic industries market’s leaflet that they have served around 8.5 million customers in the world, in this achievement, of course samsung electronic company will not only success on their objective which is sale maximisation but also they are able to earn a large amount of profit.
Then it is also stated that 7.9 million out of 8.5 million costumer worldwide commented significant service quality improvement. There is an eveidence that samsung electronic company has increased in production cost value around $450K during the last year which is 2013, it s because they have an objective to have a sale maximisation and have a sale maximisation can be done by make better wuality so that more costumers are willing to buy their product. As the quality of the product increases, more costumer will be willing to buy their product which also can make them have more amount of profit ratherthan in 2012.
Samsung electronic company of course will automatically obtain more profit in 2013 compared in 2012 because as what we seen in 2012 samsung only served 1.3 million of the world while in 2013, samsung served8.5 million worldwide which if we calculated it is around samsung served 653% more in 2013 than in 2012 and we also can concluded that in 2013, samsung earn more profit than in 2012 even though they increase their cost of production but their product’s productivity has also highly increaed, as we know that we can calculate profit from total revenue-total cost, so for example the total revenue of samsung in 2012 is $100 000 and its total cost is only $20 000 so they got profit of $80 000 million in 2012. While in 2013 the total revue will be $100 000 times 653% : $653 000 while the total cost is $20 000 + $450 000 : $470 000, and the profit they got during 2013 is $653 000 - $470 000 which is equal to $183 000 which is the profit of samsung company in 2013 which we also can see that samsung company earn more profit in 2013 rather than in 2012.
Samsung , a company selling machinery, air con, television and other gadgets, has now been very well-known by people since the different types of phones they’ve been launching.
ReplyDeleteYea, the number of customers has increased since they learned and manufactured apple products. And as a phone is nothing without software, they use android as apple products cant be bought. Before, Samsung wasn’t that demanded by people. This shows that they did put some efforts in making an increase in their profit.
The increasing number of customers might increase samsung’s confidence in 2013 that they can keep producing new and new products. And of course, people would demand more on Samsung for their creativity on producing new products. This can increase samsung’s profit.
In 2012, Samsung produced lower quality of goods and people don’t demand on them that much. That was because in 2012, the product which was taken interest by customers is iPhone from Apple. However, this year Samsung has won over Apple with the number of products sold and the demand for smart phones are increasing gradually with the production of excellent technology.
Being a multinational company also helps Samsung to keep increasing their profit. Not only because many people know about it, but as they sell their products to another country, but the different currencies would also help.
This far, most people around the world have been using Samsung. This gives evidence that for the next next year, their profit will keep increasing especially if they produce more creative products. Apple company has been beat maybe because Steve Jobs is no longer here to give more ideas and produce more products. But one day, if they produce new unique product, people would change their demand to apple. Therefore, Samsung company would still have to keep their effort.
Yet, Samsung may not keep increasing their cost as if they do this, consumers might turn their interest in other company (apple, HTC, sony, Hp). So they have to try their best to keep their cost low and stable.
So from all of these, we can just take the main point that Samsung might increase their profit , again , on 2013. yet, there are still some possibilities that they can decrease their profit. They still have enemies, other companies that are trying to beat their products. Therefore, we cant really know whether their profit will increase or not, but from all the evidences, we could simply know that the consumer in 2013 has increased , and theres nothing to be worried of making prediction that the profit will increase in 2013.
Samsung Inc. is a large and profitable Korean electronics company. Alone, it is responsible for making up 20% of South Korea's $1.1 trillion economy. Research reported that they have served approximately 1.3 million customers globally in 2012. Another acheivement reported that in 2013, 7.9 out of 8.5 million customers praised their significant service quality improvement. However at this time it is stated that they have an increase in production cost value around $450K that last year.
ReplyDeleteA large and well known company like Samsung needs to make as much profit as possible to survive the market. To keep increasing the number of consumers, the company may want to produce goods and services higly demanded by consumers to satisfy their needs. So, their production scale ranges from gadgets and smartphones, TVs, refridgerators, air conditioners, and so much more.
As consumer demands remain high, production rates needs to increase, and thus the number of costs to produce rises for the company. A company is said to make profit when total revenue exceeds total cost. However when costs increase, it means increasing the quality in their products, and so the increase in sales of consumers. Therefore, the increase in costs in 2013 should not decrease the company in making profit as they have larger number of sales.
Increase in demand also means hiring more labourers and capitals to work in their company. A labourer will be hired by their productivity, will this worker bring more loss by their wages or help the company gain productivity?
Samsung might also want to attract more and more consumers into their products rather than their main rivals, such as Apple. Better technologies attract consumers. They should rely on increasing their quality and so face extra costs to exceed their rivals in making profit. Increasing in quality means more customers are willing to buy, but also means to increase in price.
However, one condition that keeps preventing Samsung from reaching their goal of more profit is, of course, their rivals. Companies like Apple, BlackBerry, HTC, LG, and so on will keep producing smartphones and gadgets with same levels of technologies but slightly lower prices. Samsung, therefore, should built a strategic planning and production of their company to remain as the top electronics company.
As a conclusion, I state that when Samsung produces the exact good and services that are in demand in consumers, more profit in 2013 should not be that hard to reach as long as they can maintain their levels of cost and revenue.
Samsung inc is a big and successful company from the South korea it also produce other product than just mobile phones it also focus on other things such as television, a/c unit , sound system and so on . A large company like that needs to make profit to keep the business going and keep making new products and based on the leaflet it has already satisfy customers and keep increasing the number of customer but because the demand keep increasing and based on the leaflet it has increase its production cost by $450 K probably because of the increasing demand.
ReplyDeleteAnd also based on the leaflet it had increased it sales and served 1.3 million new customer and because the cost of production have increase it also needs to increase their profit to keep up with the market.
And there is also a factor that is keeping Samsung inc to make profit, which is their rivals primarily the rival for the specific Samsung S4 is of course the IPhone 5 and the 5S And there also other rivals such as Sony, LG and other companies but they doesn't posses much of a threat compared to the IPhone to keep Samsung inc from making Profit in the next Upcoming Year . But remember Samsung inc also Make other Product other than Mobile Phones so there are other possible ways for the company to keep making profit but the factors will maybe also stand in the way of the company to make profit
So as a Conclusion of the discussion The company will of course will make profit but not automatically because there are factors that can stand in the way of the company from making profit such as its rivals, increased cost and also other factors such as a fall in the economy and such.