For Grade 8B
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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
It is true that Samsung will earn more profit in 2013 . But , even though Samsung will earn more profit , they are also will have a higher cost for around $450K. This cost is used to fix the problem of service quality . so , Samsung will not only have a high profit , but they will also have a higher cost to improve their product.
ReplyDeleteIn 2013 , Around 7.9 million over 8.5 million people all over the world used Samsung and of course this will make Samsung earn more profit. But in 2012 there are only 1.3 million people used their product. So what is stated in the question is absolutely true . They will have higher profit because there are more people that buy it . Even though they will have higher cost to fix their problem , but it will still making a lot of profit . they are fixing their problem now , so that in 2014 , people can still want to buy their product , because all people will know that Samsung product have a great quality. The reason that people want to buy someone product is because they have a great quality and cheap . Samsung fixing their product , to maintain the quality . If the quality is high then for sure people want to buy it. Samsung will also have a higher profit because of they have a lot of sales. TR (TOTAL REVENUE ) = PRICE X OUTPUT (NO OF SAMSUNG PRODUCED ) . They have produced 7,9 million sales so total revenue that they will earn just times it with the price. Then it will be the total revenue for them. But this total revenue is not the pure profit for them . it haven’t be mines with the total cost . the formula for total cost (TC) IS total fixed cost (TFC) + Total Variable cost (TVC) . Then after we got the total revenue and total cost . We just need to mines it . Then we will got how many profit that the Samsung will got . in This case For 2013 , Samsung will got high profit compare to the 2012. The number of output that Samsung produce for 2013 is higher then 2012. This will be the main reason why Samsung will got higher profit then 2012.
But , even though Samsung will have higher profit for 2013, the number of cost that Samsung must have will be bigger compare to 2012 . Samsung need to fix their problem or they will have a highly decreasing in consumption for 2014 . The amount of money that’s needed to fix the problem is included to the total cost . So Samsung will have high total cost and this total cost will reduce the amount of profit ( TR-TC) . But because Samsung is making too much revenue then this $450K will not be a big problem for Samsung company . And still Samsung company will earn more profit
So Samsung company will still have high profit for 2013 compare to 2012. Even though for 2013 the total cost will be high but it still will not be a problem for Samsung and Samsung will still have a higher profit .
Samsung is a South Korean multinational 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. Samsung company starting to produce phones in 1990. When smartphone come has been produced by the blackberry company Samsung profit must be decreased because at that time people more interested to buy smartphone than just a regular phone. But when the profit is decreased they decided to produce a new product of phones that use android system. When the product is released the android phone is a success people stop buying smartphones and starting to buy Samsung android products but Samsung also have to compete with apple. People also interested in buying apple’s product because of its portability and the technology that they use. The famous Samsung product no days is Samsung S4, Samsung galaxy note, Samsung galaxy camera. People also interested in Samsung because it’s picture quality. The camera that Samsung phone have is realy good the picture is very clear and we can design the picture that we want. Many people like to take photos from their camera especially girls they will love to buy Samsung product. Some people will prefer to buy Samsung product than apple’s product because of the cost. The cost of Samsung phone’s is cheaper than the cost of apple’s phones. In 2013 samsung is getting more customer than 2012 because they have improved their service quality. 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. Even though Samsung gets a lot of profit Samsung also have a higher cost to produce their product. This time their leaflet reported that they have an increased in production cost value around $450K than last year. But when the Samsung product can produce a good quality goods people will still buy the product like apple even though the cost of iphone is very high many people want to buy it because of the system and the quality of the goods. But if Samsung want to increase their quality they will have a higher cost. In 2014 their cost will be higher than before because of factors that make the cost of everything higher. The cost of oil will increased because now days the oil supply of our planet is decreased. Oil is needed for everyone to survive without oil people will die they can’t cook food they can’t use their car. Without this oil Samsung can’t produce goods. But Samsung has many money today because consumer still have interest on android phone. Later when there is a new type of phone and it success Samsung will have a decreased in profit and they have to invent a new phone also so they will success again. So Samsung will need to get profit as much as they can so they can also produce a new goods when people getting bored on android phones. Even Samsung need a lot of money to produce their profit is also higher because the cost will be higher so there will be no problem for the Samsung company and they will get more profit in 2013 than 2012.
ReplyDeleteSamsung is a South Korean multinational 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. Samsung company starting to produce phones in 1990. When smartphone come has been produced by the blackberry company Samsung profit must be decreased because at that time people more interested to buy smartphone than just a regular phone. But when the profit is decreased they decided to produce a new product of phones that use android system. When the product is released the android phone is a success people stop buying smartphones and starting to buy Samsung android products but Samsung also have to compete with apple. People also interested in buying apple’s product because of its portability and the technology that they use. The famous Samsung product no days is Samsung S4, Samsung galaxy note, Samsung galaxy camera. People also interested in Samsung because it’s picture quality. The camera that Samsung phone have is realy good the picture is very clear and we can design the picture that we want. Many people like to take photos from their camera especially girls they will love to buy Samsung product. Some people will prefer to buy Samsung product than apple’s product because of the cost. The cost of Samsung phone’s is cheaper than the cost of apple’s phones. In 2013 samsung is getting more customer than 2012 because they have improved their service quality. 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. Even though Samsung gets a lot of profit Samsung also have a higher cost to produce their product. This time their leaflet reported that they have an increased in production cost value around $450K than last year. But when the Samsung product can produce a good quality goods people will still buy the product like apple even though the cost of iphone is very high many people want to buy it because of the system and the quality of the goods. But if Samsung want to increase their quality they will have a higher cost. In 2014 their cost will be higher than before because of factors that make the cost of everything higher. The cost of oil will increased because now days the oil supply of our planet is decreased. Oil is needed for everyone to survive without oil people will die they can’t cook food they can’t use their car. Without this oil Samsung can’t produce goods. But Samsung has many money today because consumer still have interest on android phone. Later when there is a new type of phone and it success Samsung will have a decreased in profit and they have to invent a new phone also so they will success again. So Samsung will need to get profit as much as they can so they can also produce a new goods when people getting bored on android phones. Even Samsung need a lot of money to produce their profit is also higher because the cost will be higher so there will be no problem for the Samsung company and they will get more profit in 2013 than 2012. So for now, Samsung is making a lot of profit compared to 2012, and because of the profit (TR-TC) is pretty big, their $450k loss in the past wont be a big problem. Though their cost this year is increasing too, the costs includes the variable cost and fixed cost, variable costs is the expense that can change ( the value ) and fixed cost is the costs that wont change. The example of variable cost is electricity and fixed cost is the rent of building. So it come to conclusion that Samsung is making more profit compared to 2012, but theres a chance too if the total cost is more than the total revenue Samsung will have loss too. Thania vireta 8b
ReplyDeleteSamsung is a South Korean multinational 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.In the first quarter of 2012, Samsung Electronics became the world's largest phone maker by unit sales, overtaking Nokia, which had been the market leader since 1998. In the August 21 edition of the Austin Amercian-Statesman, Samsung confirmed plans to spend 3 to 4 billion dollars converting half of its Austin chip manufacturing plant to a more profitable chip. The conversion should start in early 2013 with production on line by the end of 2013. On March 14, 2013, Samsung unveiled the Galaxy S4.On 24 August 2012, 9 U.S jurors ruled that Samsung had to pay Apple Inc. US$1.05 billion in damages for violating six of its patents on smartphone technology. The award was still less than the US$2.5 billion requested by Apple. The decision also ruled that Apple didn't violate five Samsung patents cited in the case. Samsung decried the decision saying that the move could harm innovation in the sector. It also followed a South Korean ruling stating that both companies were guilty of infringing on each other's intellectual property. In the first trading after the ruling, Samsung shares on the Kospi index fell 7.7%, the largest fall since October 24, 2008, to 1,177,000 Korean won Apple then sought to ban the sales of eight Samsung phones (Galaxy S 4G, Galaxy S2 AT&T, Galaxy S2 Skyrocket, Galaxy S2 T-Mobile, Galaxy S2 Epic 4G, Galaxy S Showcase, Droid Charge and Galaxy Prevail) in the United States which has been denied by the court.On 4 September 2012, Samsung announced that it plans to examine all of its Chinese suppliers for possible violations of labor policies. The company said it will carry out audits of 250 Chinese companies that are its exclusive suppliers to see if children under the age of 16 are being used in their factories.In 2013 news outlets in Australia and New Zealand reported a number of Samsung washing machines spontaneously catching on fire.So , why Samsung earn more profit in 2013 ? Samsung earn more profit because they produce more product to be sold to customer. The main reason is because samsung produce more output in 2013 and high technology . For example : they make Samsung Galaxy S4 . This phone can do air gesture . This make people buy more samsung than other products ( Apple, Nokia , Lenovo , etc . ) . And now , samsung and iOS have their new feature . The feature is BBM for android and iOS. So , this make so many people buy samsung (because samsung using android platform/os) . In 2013, their achievement was again reported in the Electronice Industries market's leaflet that 7.9 million out of 8.5 million total customers worldwide commented on their significant service quality improvement. So that means , Samsung have improved a lot in 2013. So, don't be surprised that there are more customers in 2013 tend to buy their products. The main feature is now android can have BBM applications . BBM allows people using android/iOS to chat with another person which using Blackberry . And now, blackberry have very low customers now , because the main feature that people using in Blackberry is only for BBM . So , with the presence of BBM in android and iOS , make people buy samsung .
ReplyDeleteSo , in conclusion , Samsung has improved a lot in 2013 . They have increase the sales/output. This caused them to earn more profits in 2013 .
Thank You - Leonardo Steven 8B
* Total revenue = Price x Sales / Output
ReplyDeleteFirst, as we all know, the demand in Samsung’s smart phone is beginning to increase by year. In the year 2012, Samsung has served 1.3 million customers and increased to 8.5 million customers in 2013. More people are buying Samsung’s smart phone day by day, this is because Samsung is able to create high quality of phones with an affordable price, other than that, Samsung also produces variety of machines, not only focused on smart phones, but also home theatres, washing machines, tablets, and also cameras. Samsung also creates a unique kind of products that the other company haven’t able to produce yet such as cameras that can post pictures in the internet, or phones that has multitasking gestures and features, other than that, Samsung has also made several advertisement with Korean singer or group band (since Samsung is from Korea) to increase the demand of young people to buy the product, as an example, you can see several billboards advertising Samsung smart phones with Korean artist holding the phone, telling people that Samsung has the best smart phones. Because of this, people who have experienced the phone will also spread the greatness to other people, creating a new media of advertisement that also enable Samsung to gain more customers.
ReplyDeleteBecause of those increased demand, particularly in Samsung’s Smart Phones, it can cause Samsung’s profit to increase, yes this is possible because more people tend to buy Samsung rather than other brand (for example: Apple, Nokia) that is already outdated or common. People tend to look for a fresh and newest product since customer’s demand is likely easily to be bored or change in taste, other than demand, Samsung also uses Sales maximization strategy, sales maximization means that Samsung is focusing on producing more output, unlike profit maximization, focusing more on increasing revenue and lowering the cost of production, this is why Samsung produces a large variety on smart phones, from small ones, large ones, tablets, and many more. Aside from smartphones, Samsung also creates cheap phones to attract customers that isn’t able to pay the expensive ones, that way, Samsung can takeover phone demand whether it’s smartphone or cheap phones.
(continue)Since Samsung is gaining more sales demand, it’s time for them to increase their quality of products, the reason is to attract more customers to buy or to survive in market competition (just incase if other brand tries to copy Samsung’s product and create a better and cheaper product) since Samsung decides to increase their quality, there will be also an increase in the cost of production, it is estimated to increase up to $450.000.
ReplyDeleteAt this point, there are several people saying that Samsung has an increase in profit, and there is also other opinion that Samsung has a fall on profit. If it is true, that Samsung will have a fall of profit in 2013, comparing in 2012, there can be a possibility it happened because of the increase in cost production, if the cost production increase, of course the price of phones increase too, because of this rise, people will lost their interest on purchasing phones in Samsung, because previously, people demanded Samsung’s product for its high quality and low price, now, Samsung has increase its price, yes they also increase the quality of the good, but some people wouldn’t be interested to pay such product which is expensive but has a high quality, some people would prefer phones that are good enough for them with cheap price, rather that purchasing high rate of price and receive such goods with quality that is higher then their expectation. If it is true of this opinion, Samsung will have a great chance of loss because less loyal customers will turn away from Samsung and will search for other brands that they think would be better, so in this case, Samsung will not experience a great increase of profit in 2013. Now, if another person’s opinion is that Samsung will have a great increase in 2013, it may because of more customer satisfaction on the increase of the quality. Some people will see in a different perspective, and if the demand of the good increased, so more people will also purchase the product. This way, Samsung will of course gain more profit, since the company will obtain more revenue. The cost of production doesn’t matter for them since later the total revenue will be decreased by the total cost, that way, Samsung will experience a growth of profit from 2012 to 2013.
In my conclusion, it is still a debate for me if Samsung experienced an increase in its profit, but there are also several people saying that Samsung will experience an increase in profit, this both factors is caused by the increase of Samsung’s production cost, but it is depending on customer’s point of view and opinion.
Celine Kusnadi 8B
The korean company samsung electronics which have various of products such as samsung phone,samsung washing machine and samsung laptop in 2013 have increase their number of their customer drastically and 7.9 million out of 8.5 million customers of samsung commented about the significant increase on their service quality not to mention that samsung mostly have free app rather than other gadget, it's product are top notch and their price aren't so high,there are variety of products and they are easy to use thats why more people are sastisfied but because of this their increase in production cost and many more have let the company the company production cost value increased to $ 450k the question is will samsung get more profit .
ReplyDeleteok, first profit is calculated from total revenue minus total cost,and in the textlets talk about samsung phone such a s samsung s4 because thats the product that really increase in samsung sales
Its told that samsung customers increase and are sastified by samsung service quality by this we can know that more people are gonna buy samsung products because more people will likes samsung products because the numbers of customer increase and so because more people are sastified withs samsung product they will buy new technology of samsung because they know about samsung quality but samsung also get more expense which is $450k but for me samsung will still earn more profit because of their high cost of product will still be high even if its deducted from the high expense.
Second is samsung sales have been higher than the other company such as apple company and Nokia because there are so much people that buy samsung more even they have beaten their rival apple which mean that even if samsung increase their cost of products it wont really matter because their brand will be more infamous such as iPhone last time no matter how much is the cost of product they are still willing to buy because of their top infamous product.
But because of this samsung will have a higher production cost samsung also have a lot of expenses because of this factors
First is because of the increase in demand samsung must buy new machines and more workers to keep up with people demand for samsung products this can really increase samsung expense really high considering the price that will be used to buy many high quality machines and paying the specialize people
So in my conclusion is that samsung will definitely have an increase on profit in year 2013 because of many factors in mention above which is the increase in customer that will result a increase in sales income second is the increase of the fame of samsung products by the increase in fame more people will buy this samsung product because they think its the best product and the disadvantage are the increase in cost can make samsung have a very high expense but for me the income profit of samsung is very high compare to its expense so samsung will really have a big amount of profit in 2013.
Samsung Electronics Co., Ltd. is a South Korean multinational electronics company headquartered in Suwon, South Korea. It has been the world largest information technology company. Based on the news it is stated that 7.9 million out of 8.5 million customers comment on Samsung significant service quality improvement, as we know Samsung has receive a big profit, and in 2013 it the profit will increase. But not only the profit increase there are also the increase in cost because to served a better services or product need a lot of cost, start from the quality, technology, etc.
ReplyDeleteWell, yes that Samsung will automatically receives more profit in 2013 than in 2012; there are several reasons why Samsung receives high profits. But as you know that profit is calculated by total revenues (TR) – total cost (TC), so if there is high revenue and a low cost means it receives a high profit but if the total revenues is high and the total cost is also high means it receives a low profit. First, Samsung can receives a high profit because the services quality has increased, if the services quality increases more people will satisfied with the Samsung services and product and will buy more of the products because it have a nice services. Second, Samsung product prices is relatively not too expensive, so people that are not too rich can buy it, well it is also because the nice quality with a price that are not too cheap and not too expensive so the price is ideal for everyone. Third, some of the people also like Samsung and rather by Samsung than anything because the design in nice, some people example bored of the design of apple’s product and while Samsung has a variety design so people can choose which one they like and buy it.
Well not always Samsung can receives a big profit, as I told before that if want to receives a high profit the total revenue must high while the total cost must low so it will result in high profit, but to make a good product Samsung need a bigger cost, like in the news it is stated that Samsung have an increase in production cost valued around $450k in 2013 compare to 2012. Example Samsung s4 that have the surplus of having the face detector that enable it to move the word from up to down while we are reading using our eye ball not by our hand, well that is the surplus and it will need a very big cost just to built 1 Samsung s4, but Samsung s4 product is nicer between the other product that Samsung has.
So in the conclusion that Samsung will automatically receive a high profit at 2013 than in 2012 because the services are good and its price is ideal for everyone. But to make a good product or the nice product they need a high cost to make it or to build it. So to receive a high profit the total revenue must be bigger than the total cost, and if Samsung produce many product it will result in economic in scale that result in low cost of production, so it can reduce the cost.
-Shelvina Gabriela 8B-
Samsung is a large electronic focused company originating in South Korea. They are currently an MNC because they already have production outside South Korea itself.
ReplyDeleteAccording to the leaflet they have a significant increase in sales, because they have served a much larger amount of customers compared to 2012. While at the same time an increase in production cost. A larger amount of sales will almost all the time cause an increase in total profit due to a total increase in revenue.
Samsung will have a higher amount of profit in 2013 than 2012 because they have a higher amount of sales therefore more profit. Total profit is calculated by amount of profit per each individual goods or service sold multiplied by the amount sold. Using that we could automatically presume that they WILL have an increase in profit.
But it is also reported that they have a larger amount of cost in the year 2013 than the year 2012. This increases the probability of a profit reduction. Because profit per each product is calculated through total price minus the total cost.
In conclusion, despite the increase in production cost by around $450K in 2013 than 2012 they have a larger amount of total revenue. And assuming that increase in cost isn’t too high for a very large MNC, Samsung will have a larger amount of profit. Albeit not as much as anyone would originally expect when only reading the total sales increase
Samsung is a company founded in South Korea, it’s focus it in electronics that ranges from household appliances to smartphones. These days, smartphones is trending, almost everywhere you look, and people would be using smartphones. Samsung is currently one of the top brands that people buy and use, it had release various types of smartphones the past years, Samsung had released model which are trendy and modern with a relatively cheap price and affordable, which influence people to buy them, increasing their sales.
ReplyDeleteIn the year 2012, it was reported that Samsung has served 1.5 million people. Then in 2013, it was reported again that 7.5 million out of 8.5 million total customer commented on the service quality, which had improved significantly, but with the increase of cost value, around $450K. With this change, the company’s profit may; Increase, as there are more customers in 2013 than 2012, which could mean that they have more sales. But it is also informed in the leaflet that Samsung increased the cost value as well, this could cause the reduced amount of profit for the company as the revenue receive would have to be used to cover up the costs. It may also stay the same, both the profit and cost could be covered and no profit would have to be used.
Grace - 8B