Factor effecting staff turnover in hsbc call centre(uk)and how it is Essay - 1

Factor effecting staff turnover in hsbc call centre(uk)and how it is effected & related with job satisfaction of employee - Essay Example To improve the competitive position, banks used cost-cutting weapons. They streamlined their processes, shifted back-office operations, boosted workforce productivity and tried to use as much as information technology as possible. Banks rate managing customer experience as the most important factor of success (Wisskirchen et al., 2006). Call centers are expected to give them this competitive edge. Call centers are the perfect embodiment of the ‘new’ service oriented economy (Moriset, 2004). Call centers use the latest technology and thus enable a day’s work to be done in an hour. These employees are often compared to the workers on the shop floor of a manufacturing unit. Call centers in any nation follow the same technique and have the same attributes. They usually have very flat management structures which provide very little scope for career advancement. Job satisfaction is call centers is very low which accounts for attrition and high turnover in the industry. There is a strong relationship between job satisfaction and staff turnover. If employees are satisfied and their needs are met, it can limit staff turnover. Job satisfaction has been defined as an attitudinal state which reflects all the affective feelings that a person has about the job, cite Biggs and Swailes (2006). This includes growth, pay, co-workers and supervisors that contribute towards satisfaction in varying degrees. The level of satisfaction differs across permanent workers and the agency workers. Many call centers appoint agency workers so that the parent employer does not have the responsibility of the staff. Permanent employees become de-motivated when their organization uses agency staff but agency workers are used to prevent layoffs and their commitment to organization is much lower than the permanent employees. Maslow’s Hierarchy of Needs suggests that the basic physiological needs have to be met first before a person can look ahead. Only when the basic needs are

Financial Projections Essay Example | Topics and Well Written Essays - 250 words

Financial Projections - Essay Example These marketing researches provide decision makers ins and out of customers in the market, how would they behave towards the products and services offered by the business, what would be the demand for the offered products and services once the marketing campaigns are incorporated (Gorla et al., 2010; Hersey & Clanchard, 1969). Once the strategic targets that organizations tend to achieve are identified, organizations then line up their resources to achieve those targets. This is the reason that marketing research plays an important role in financial projections as it enables decision makers to identify the set of product development efforts and marketing tactics required to make the offered product a success story (Handlechner, 2008). Marketing is also involved in financial projection as the decision makers develop projections to be achieved in the next in such a manner that it motivates shareholders and external investors to provide more financial strength to the company. The added financial strength is then invested on further product development and improvement

I.C.T In Our Society Essay Example for Free

I.C.T In Our Society Essay This report is about how ICT has affected us as a society. For example, for entertainment purposes like games consoles, communication purposes such as mobile phones, storage purposes such as storing music on a CD or for social purposes such as email. E-mail The first thing I will look at will be email. With email you can quickly talk to friends, work colleagues, basically anyone who has an email address. I have two email accounts, one at home provided by hotmail, which is useful because I can log-on to it anywhere via the Internet. I also have one at school provided by Solihull L.E.A, which I can only access at school; both have a unique log-on I.D and password. With my personal account (hotmail) I can choose a unique login I.D and password when I register, providing it ends with @hotmail.com. With my school account I can only choose the password. As a student my school account is free and I get absolutely no junk mail thanks to the junk-mail filter and I can receive emails from anyone. The L.E.A also scans every email for anything suspicious such as files containing viruses; if one of these are found then the L.E.A will not let the email through. Email is useful and easy and is an efficient way to contact my friends and relatives. If I want to get in touch with several people in one email I simply put a semi-colon in between each persons email address. If I want to get in touch with several people, email is one of the easiest ways to do so. I can set up an address book which means I could email everyone in that address book at once, also by setting up an address book I dont have to remember everyones email address and it helps me stop making mistakes. Workers in offices usually have email accounts open all day, which means if they receive an email the response time is very quick. The problem with email is that if the inbox becomes full I couldnt receive any more emails until I had deleted some of my old ones. Pictures take up a lot of space and some pictures can be too big to send in the first place. Say for instance I had done a word document in history on Hitler and the Nazis, I may want to carry on with it at home but when I come to send it, I cant because I have too many pictures on there that take up space. Also if someone doesnt have broadband than it could take a long time to attach a document or presentation to an email and even with broadband it could take a long time depending on the size of the file. A good thing about most email accounts is that they are free but then I get a lot of adverts and pop-ups. If email companies are going to give people free email then they need to get the money from somewhere to make sure they can afford the payment of the site, this is where the adverts and pop-ups come in, other companies pay companies such as hotmail to put their adverts and pop-ups on their websites hence hotmail can pay for the upkeep of the site. I can set up a filter on my email account so that I only receive emails from people in my address book. The problem is though that before I can receive emails from someone I need to add them to my address book and if someone changes their email I need to edit my address book. The alternatives to email are fax, which can be quick but can cost a lot of money, or text that is quick so long as the other person has their phone on; you also need signal and credit, which can be a problem. Both can be useful if email is not available, but when compared to the quickness and the fact that email is basically free, email is the best thing to use. To conclude, email is useful to communicate with people no matter where they are in the world mostly free of cost, which means it can be better than a mobile phone or fax but due to the time difference between countries, there is no guarantee that they will receive the email in the time you need them to see it. Entertainment The next thing I will look at will be the entertainment side of ICT and for this I will look at games consoles. There is a lot of competition at the moment between the PS2 made by Sony, the Gamecube made by Nintendo and the Xbox made by Microsoft. People use games consoles for 3 main purposes; the first is single player use where the player simply plays the game on their own trying to complete the game. The second is multiplayer use where two or more people can play on one console and either try to complete the game cooperatively or go against each other in different game types. The third is online play, which has only recently taken off since broadband became so popular. At the moment there is no prospect for online play on the Gamecube but Xbox and PS2 have successful online play. Players who want to play online need broadband to play because dial-up cant handle the speed that is required. The Xbox online play is called Xbox Live and players make an account for à ¯Ã‚ ¿Ã‚ ½40 a year and can make a list of friends and whenever their friends are online they can join them and play with them. The problem is that if two friends want to play together they both need the same game and both need to be online. Also, if broadband is no t available then people cant play online. I use an Xbox and play Xbox Live quite often. I have experienced problems though, for example my broadband router had broken and I couldnt go on Xbox Live until I got it fixed, also the Xbox Live service had not responded which again meant that I couldnt use the service. The other problem is that paedophiles are able to use the service so you never know if the person you are talking to is being genuine or not. People also use games consoles for watching DVDs but this has only become available in the newer consoles. With the Xbox you can also put a CD into the Xbox and save it to the integrated hard disk and can then play the CDs while your playing a game. Again this is technology that has only recently been introduced. Another type of entertainment is digital TV. Originally TV and radio used analogue signals but over the past few years more and more digital radios and digital TVs have become available. A digital signal is basically a TV or radio signal that is computerised and has to be decoded at the receiving end in order to watch digital TV or listen to virtually crystal clear music on a radio. Digital television (DTV) allows you to receive digital transmissions from different TV stations that have installed digital transmitters and record their programmes using equipment that can handle digital signals. With DTV you can enjoy excellent quality pictures and clear sound. But all good things come at a price and in order to watch Digital TV you must buy either a digital TV adaptor for an existing TV, which will cost about à ¯Ã‚ ¿Ã‚ ½100, or you can buy a new integrated DTV television set known as a iDTV for about à ¯Ã‚ ¿Ã‚ ½500. I use Digital TV because I have Sky Digital. It is a good quality picture and good sound and also doesnt cost too much at approx à ¯Ã‚ ¿Ã‚ ½20 a month. I have a digibox, which is basically a small box on top of or underneath the TV and the signal comes through a Sky dish on the side of my house. The signal is then transferred to the digibox and I can watch the channel I want on my TV. There are a lot of channels on Sky and I only have a few of them. There are also movie channels which show movies 24/7 on about 12 different channels, and sport channel which shows sport 24/7 on about 15 different channels, but to have all these channels can cost over à ¯Ã‚ ¿Ã‚ ½50 a month. The disadvantage comes when there is bad weather. In heavy rain the signal often gets interrupted which means that either no signal is received or a very poor signal is received. As in a thunderstorm, the signal gets interrupted and no signal can be received. Other problems can be if the station I am receiving the picture from is experiencing technical problems no signal can be received. Most of the time though the quality is good and there is no problem. A revolutionary new technology that Sky has introduced is called Sky plus. With this you get a new digibox and Sky plus allows you to pause live TV, record shows and watch them later without the use of a VCR. You can even rewind live TV if you want to watch something again, such as a good goal in a football match. If you do stop or rewind then a little counter comes up on screen that tells you how far behind the live TV you are, then by simply pressing play on the remote control you can carry on watching from where you paused it or you can just go back to the live TV by pressing the sky button. This is technology that has only recently been introduced and costs an extra à ¯Ã‚ ¿Ã‚ ½10 on top of whatever sky package you already have. Storage Media There are a lot of different types of Storage Media. Originally data was stored on floppy disks but space was limited and the disks were quite large. Consequently there soon became a need for more and more space to store things on. Floppy disks could only hold 1.4mb of data but then zip drives became available which could hold different amounts of data, the maximum of which was 250mb. The disadvantage of this was that you couldnt put the disk straight into your computer. You had to buy a zip drive which either connected to the computer through USB or you could plug it straight into the computer. This was only a short- term solution and demand came for more and more space. The answer was compact disks, known as CDs for short. Originally designed to hold music, CDs could hold up to 700mb of data, an ideal source for storing data. Nowadays computers are fitted with CD-Rewriters (CD-RW), which can store music on a CD, make a copy of a CD, or just store es.here are currently two types of disks available they are: CD-Record (CD-R) this can only have files or music stored on it once and then you cant add or take anything off the CD. CD-Rewritable (CD-RW) this can have music or files stored on it as many times as you want. If you add something and feel you want to add more, you can easily do this. You can now get a DVD type disk. These can hold much more data than normal CDs but they do cost more and will not work on some older computers. I usually use CD-R to store music because CD-RW does not work on some CD players, which can be a problem. If I want to store data on a CD however I usually use a CD-RW as most computers can read these and I can always add more data at a later stage. Businesses use CD-RW on their computers because if they have data that they want everyone in the office to have, then they can simply put the data on a CD and make numerous copies of it. They can then give everyone in the office a copy of the CD. At school we use CD-RW. For example, in the ICT course, the school wanted us each to have two CDs. They had the two CDs they wanted and then copied them and gave everyone doing the ICT course a copy to take home. The CDs had useful software and information on that I will use while doing the ICT course. The obvious disadvantage to storing data or music on CDs is that if the CD becomes full then no more data can be put onto the CD. If you want to put a PowerPoint presentation and a word document on a CD then the presentation may take up a lot, maybe even all, the space. This will depend on the content and how many pictures it has on it. If the presentation does take up all the space then there wont be enough room for the word document and that would mean you would have to use another CD. That would be an inconvenient because you would have to carry two CDs around. The alternative to CDs is email but the amount of data that can be sent by email can be limited. Also the person who needs the information may not have access to a computer. Another alternative is to print all the information on paper and post it to the person who needs it. Communication Mobile phones are everywhere these days and virtually everyone has got one. Mobile phones used to be much larger than they are now and were a big inconvenience to carry around, as they couldnt just fit into your pocket like the mobile phones of today. Only wealthy businessmen owned them, as they were expensive to both use and buy. As with all things, over time they got smaller and smaller and now they can be very small and more and more people have them. They are even regarded as a necessity to young people. People dont just use mobile phones for calling other people though. Texting has become a very popular way to communicate, especially amongst the younger generation. There are two main types of message; Short Message Service (SMS) this is the most common use of texting and one of the most useful. A message, just like an email, of up to 150 characters can be sent to one or more people at once for an average of 10p per message. Due to the small amount of characters a texting language has developed to reduce space and therefore enable you to say more in a message. An example of this language would be you has been shortened to just u. They both sound the same but one takes up fewer characters than the other. Hundreds of thousands of these messages are sent every day from mobile to mobile and providing signal is good and both people have there mobile phones on, a text message can be sent from here to Australia in an amazing 6 seconds. New services have become available using text messages. For example phone companies such as Vodafone allow mobile phone users to subscribe to a service where football or cricket scores can be sent to the subscribers phone as soon as they happen. Multimedia Messaging Service (MMS) Another recent development, MMS is an advanced form of SMS. Instead of just sending a message, new mobile phones will allow you to send photos, or you could send ringtones, or a pre-recorded voice message. These new phones are a little heavier then old mobile phones, but they are more sophisticated. For instance, if you go on holiday, instead of sending a postcard to your friends and family you could just take a picture using the inbuilt camera and send it using an MMS message. You can even add some writing to it. I have a new mobile phone with a digital camera; I can take good quality pictures and then send them to my friends. I also use a mobile phone to text my friends but to do this I need a good signal and sufficient credit. Businesses use mobile phones, especially people that travel around a lot and are not based in one location all the time. Salesmen would find it hard to manage without mobile phones, as they need to be able to keep in touch with their customers, and with one another, at all times. One major disadvantage of mobile phones is that they are thought to emit radioactivity. Although this has not been proven there are many people that believe that radio masts and mobile phones are a health problem to them and there are strict planning laws regarding the positioning of radio masts.

Fiat Changing Business Environment Marketing Essay

Fiat Changing Business Environment Marketing Essay ABSTRACT This report focus on the FIAT group and analysis of its external business environment. It outlines the companys background in terms of its history and product services, with major strategic milestones and key competitors. The operations in some of the tools used for the external analysis are the pestel and porters. As a result, strategic directions are proposed that will assist the FIAT group in sustaining and developing a successful performance in order to keep and improve its market positions globally. This report is also concluded of list of recommendation for the FIAT group. CONTENTS 1 ABSTRACT 2. INTRODUCTION 2.1 INTERNAL ENVIRONMNET 2.2 EXTERNAL ENVIRONMENT 3. MICRO-ENVIRONMENT KEY COMPETITORS CUSTOMERS SUPPLIERS PUBLIC PRODUCT AND SERVICES 4. MACRO-ENVIRONMENT POLITICAL INFLUENCE ECONOMIC INFLUENCE SOCIAL INFLUENCE TECHNOLOGICAL INFLUENCE ENVIRONMENTAL INFLUENCE LEGAL INFLUENCE 5. COMPANY BACKGROUND MISSION AND VISION STATEMENT OF FIAT GROUP HISTORY 6. SWOT ANALYSIS 7. RECOMENDATION 8. CONCLUSION 9. REFERNCES 2. INTRODUCTION: Business Strategy is seen as one of the most important areas within Fiat group. It can also be defined as per Johnson Scholes and Whittington (2008, p.3) as the direction and scope of an organisation over the long term, which achieves advantage in a changing environment through its configuration of resources and competences with the aim of fulfilling stakeholders expectations. As can be seen, strategy is a complex field and inevitably connected to Fiat companies success or failure. Thus it is vital for the organisation to constantly evaluate and adapt its strategy in order to be successful (Grant 2005 p.7) External and Internal Strategic Analysis of Fiat Group: This part focuses on fiats performance by analysing both the external and internal environment of the company. External environmental forces refer to the macro-environment, the industry or sector, and the competitors that affect an organisation (Johnson, Scholes and Whittington, 2008). Equally important as the external environmental scanning is the analysis of a companys internal environment to identify its strength and weaknesses (Hunger and Wheelen, 2009).This is also referred to as strategic capability which is defined as the resources and competence of an organisation needed for it to survive and prosper (Johnson. Scholes and Whittington 2008, p.95) for this analysis, the focus is on the car industry in the UK market in general, and the small car sector in particular Business environment encompasses all those factors that affect a companys operations, and includes customers, competitors, stakeholders, suppliers, industry trends, regulations, other government activities, social and economic factors and technological developments. (Business dictionary, 2010). Basically business environment is segregated in between two categories Internal environment External environment 2.1 Internal Environment: There are various components which particularly change the behaviour of employees. Events, Conditions and  factors  within an organization are few of them.  Their  activities  and  choices are under influence. Factors that are frequently considered part of the internal environment include the  organizations  mission statement,  leadership  styles, and its  organizational culture. Internal factor which occur inside the company are management, manpower, row material, machine, money. 2.2 External Environment: EXTERNAL ENVIRONMENT is factor essentially outside the control of organizational members. Conditions, trends, and forces are few enlisted factors. External environmental scans are conducted in operations to identify and analyse important factors in the external environment. This analysis is often a critical aspect in all business or strategic plans. External environment are classified into two major parts: 1. Micro-environment 2. Macro-environment MICRO-ENVIRONMENT: KEY COMPETITIONERS: Fiats key competitors are the French companies Renault and PSA Peugeot Citroen, and the German Volkswagen AG (Hoovers, 2010). Volkswagen (VW) is Europes number one carmaker with an annual production of more than six million car, trucks, and vans. The company operates in 153 countries and aim at position itself as the global economic and environmental leader among automobile manufacturers (Volkswagen Group, 2010) PSA Peugeot Citroen is present in 160 countries, and is currently focusing on its development in high-potential markets such as China, Latin America and Russia. On 2009 the company produced more than 3 million vehicles (Peugeot Citroen, 2010). Renault is present in 118 countries in sold more than 2 million vehicles in 2009 (Renault, 2010). Main competitors in UK are Ford and Toyota. CUSTOMERS: Customers play an important role in business environment. They are the key monitors on whose basis an organisation acts upon. They are the relation in between different business enterprises who purchase the services and products to their satisfaction (Collin English dictionary, HarperCollins Publishers 1991, 1994, 1998, 2000) SUPPLIERS:   Affiliations with the companies that supply your business with goods and services,(Grant, Scholes 2007). As a growing company, Fiat group focus on one of their factor of suppliers: price. And price is considered important when you are selecting suppliers to assist you as you grow your business. A cleric service which act as a substitute providing goods and raw materials available to achieve the need of demand proposed by the company. PUBLIC: Public are the targeted market components or individual who persuades interest in the business or the products and services. They capitalise shares in market. They may be directly or indirectly active to open market (Collins Thesaurus of the English Language   Complete and Unabridged 2nd Edition. 2002). PRODUCTS AND SERVICES: The Fiat Group is subdivided in different business units (automobiles representing the biggest business unit according to worldwide revenues (Fiat Group, 2010). The Automobile business unit produces and sells cars globally under the Fiat, Alfa Romeo, Lancia, Fiat professional (light commercial vehicles) and Abarth brands. Additionally, Mascerati and Ferrari are also part of the Fiat Group (Fiat Group, 2010). MACRO-ENVIRONMENT: PESTEL Analysis The macro-environment can be determined by using the PESTEL analysis. The PESTEL framework is an analysis tool that outlines factors affecting the companys strategy, and allows the identification of key drivers of change (Johnson, Schnson, and Whittington, 2008). Political influences: Government regulation: the UK and the EU have the strictest regulation concerning emissions. Issues with emissions are highly volatile; as if the manufacturer does not abide by the standards it will translate into higher running cost for the customers and likely to discourage them from buying. Economic Influences: Recession resulted in increased unemployment and lower purchasing power of customers. Increased interest rates in bank loans for consumers. Rising prices of raw material, especially for steel (Star, 2010). Rising fuel prices. Social influences: Change in consumers buying pattern due to the recession: customers of more aware of the struggling car market and strive for better deals (e.g. Fiat 500 is priced with a high premium above the industry average for such a car). Small car image and partly bad reputation of brand name. Technological Influences: Innovative technology deriving from the Japanese and German car market. Rapid, high-quality inventions and developments from competitors, especially from key players like BMW , Volkswagen , Mercedes, etc Eclectic-car (e.g. from Renault- Nissan) are not produced by Fiat yet. Environmental Influences: Environmental awareness of customers coupled with tough government regulations construct a tough market for Fiat, as all main competitors aim at producing eco-friendly cars with low of CO2. The peak oil scenario will affect the whole automotive industry, as oil is a finite resource. Legal Influences: EU competition laws. Although Fiat is known as a producer of eco-friendly cars ( Automobiles Review 2010) tougher car emission laws could lead to increased production costs of cars. 5. COMPANY BACKGROUND: FIAT is a word wide operating Italian automobile manufacturer, engine manufacturer, financial and industrial group based in Turin in the Piedmont region. All though the FIAT group is present in many countries around the globe, its market position is especially strong in Europe and Latin America. EUROPE: Leading automaker in EU. Faced sales decrease in 2008 due to economic environment. Current market shares in UK is 4.02% USA: Moderate market shares in US (until) recent alliance with Chrysler last year and Canada market. These two markets are currently considered as the biggest auto market in the whole world. ASIA: No significant market establishment of Fiat in this market. Some key players in this market are Suzuki and Tata motors. The Asian market is also an emerging market and is untapped market for Fiat. LATIN AMERICA: Exceptional high sales in Latin America specially Brazil. Fiat market share in Brazil is 25.5% as of may 2010. (Auto trends, 2010; fiat 2010; European motors news, 2010) 5.1 MISSION AND VISION STATEMENT OF FIAT GROUP: FIATs mission statement says: FIAT| is an automotive-focused industrial group and design and manufactures automobiles, trucks, wheel loaders, excavators, telehandlers, tractors and combine harvesters. In terms of its vision, the FIAT group, states Innovation has an important place among the FIAT groups core values and beliefs. Because the only way to meet the challenges of the future is to be innovative; innovative in everywhere and in every way. FIATs aim is to strike the balance in experience, creative and technology (FIAT group 2010). 5.2. HISTORY The FIAT group (Fabbrica Italiana Automobili Torino), establishment in the year 1899 was one of the founders of the European Automobile Industry. It was developed under leadership of Giovanni Agnelli and made a successful presence in the Italian market as well as the international market. The FIAT group is now managed by Serigo Marchionne, who is the CEO presently. The Agnelli Family still controls FIAT by owning 30% of the shares for the FIAT group. Right from the start, the company had a strong propensity for the international expansion and innovation. The company expanded outside Italy in 1908 when FIAT Automobile Co. was founded in the United States. In the meantime, Fiat also expanded to new sectors. In 1958 production started growing enormously and Fiat set up new manufacturing plants aboard. In the 1990s the company escalated its expansion into international markets to cope with crisis, and achieved over 60% of its turnover outside Italy. Because of aggression competition, Fiat concentrated on developing markets and was prompted as an innovation brand at affordable prices. Today Fiats products are sold in more than 190 countries around the world (Fiat, 2010). Although the Fait Group engaged in many sectors, it redefined its core business area in 2003 by again focusing on the traditional automotive sector. As a consequence, certain business no longer considered strategic such as the Aviation and Insurance Sectors were sol d (CSR Globe, 2010). The company returned to their first mission: to produce attractive, stylish cars with improved quality and exciting engines, accessible, focusing on a continuous overhaul of its products, on technological research and constructive relationship with the customer (Fiat, 2010). In terms of its revenues and trading profit, the Fiat group is currently facing some severe decline as shown in figure 3. Revenues declined from almost 60 million down to 50 million Euros in 2009, and trading profit even declined to less than one third compared to 2008 (Fiat Group, 2010). SWOT ANALYSIS: A SWOT analysis explores the relationship between the between the environmental influences and the strategic capabilities of an organisation when compared with its competitors. (Johnson, Scholes and Whittington, 2008, p.118). With the help of the SWOT Analysis tool, it is possible to identify the strategic fit between the organisations internal and external capabilities and accordingly determining alternative strategies. By doing a SWOT analysis for the FIAT group, the companys strengths, opportunities, weakness and threats can be outlined. SWOT Analysis for Fiat Strength: With a brand name established over a decade, Fiat is known for its strong hold in the small cars segments and excellence engine technology. It also enjoys a huge brand portfolio including Ferrari, Mascerati, Alfa Romeo and Lancia (Fiat UK, 2010). According to the SMMT data survey, the UK market has shifted towards the small cars recently (SMMT UK, 2010). Fiat has the potential of producing innovative products, which has been the companys driving force since the very beginning. Fiat is the only automaker offering highly fuel-efficient cars and has the lowest CO2 emissions in Europe at 127.8g/km (Automobile Review, 2010) compared to the key players. Thus, Fiat is an organisation highly committed to environment sustainability and making a difference. Fiat stands 8th in the ethical ranking in the automotive industry, which pushes the brand image and reputation (CSR International 2010). WEAKNESS: Fiats main focus on small cars segment only has been the reason for its low market share in UK/Europe. As an approach to increase their sales, Toyota is focusing on building consumer confidence. Whereas Fiat focuses on new innovations and introduction of technology, but to an extent it fails to consider what their customers expect. Opportunities: The Asian economy still has a lot of untapped potential, which FIAT can look into. Recent alliance with Chrysler who has appointed 130 dealers in US to represent FIAT is a good opportunity for the Fiat brand to market itself (Just Auto, 2010). Due to Fiats innovative technologies, there is an opportunity for it to tap other markets as well as develop new market segments. Threats: Toyota and Ford remain two of the strong competitors for Fiat. With Toyota launching at least 18 new models in the European market 2009, it poses a major threat to Fiats market share. Toyota currently has a market share of approximately 5.01% in the Uk( Mad UK, 2010). The recession has reduced the purchasing power of the customers in the last couple of years, which has resulted in a drop in demand for new cars. Recommendation: After conducting the different environmental analysis for fiat group, it is now possible to recommend strategic options available to the company. In general, it is recommended for the Fiat group to follow which adapt differentiation and low price relative to competitors. This combination will help the company the gaining a strong competitive advantage. Fiat could move towards a low cost focus strategy in the emerging Asian markets. At the same time it can further tap the US market. This will also increase Fiats market share globally. By applying the hybrid strategy, the Fiat group is also able to capture the untapped Asian market with its cost and fuel efficient cars like Punto, 500C, Grande Punto, Linea etc. By focusing on improving its market share, Fiat will be able to gain economies of sale by cost savings. This is turn will provide resources to finance its RD sector, which will give way for new highly efficient products for the markets, thus generating higher margins which will again increase Fiats market share. Fiat could also move towards offering low cost cars to its customers by expanding in the emerging Asian markets. It may also be recommended to tap the US market (untapped). It should expand its activities in RD (Research and Development). The above strategies will help the Fiat group increase its market share not only in the UK but globally. It will also increase its economics of scale. Recommendation can also be given for the strategic development of particular products in the UK market. The GE-McKinsey Matrix for the Fiat Automobile Group in the UK, and its application to the strategy guidelines based on the directional policy matrix, also allow for the recommendation of future strategies. As a result of this analysis, the following strategies can be recommended: For the Fiat 500, product investment and growth are required because the market is growing and if the business unit continues to invest in the market, it should see itself sustaining its growth. For the Fit Bravo, selective growth would be useful, as this would allow Fiat to be more focused on the needs of the market. For the Fiat multipla, the harvest /divest path can be recommended, as this would allow Fiat to keep their existing market share and diversify in due course. CONCLUSION: This report focused on the Fiat Group and its current performance. An external and internal environmental analysis was conducted critically, which allowed for the recommendation to Fiat. Based on the various strategic analyses done in this report, it can be suggested that the Fiat Group needs to adopt new strategies for the future. If the above mentioned recommendation combined and implemented successfully, they will not only help to sustain and improve the companys business performance, but also improve its market position compared to key competitors in the automotive industry. With the rapid changes in technology and innovations, it is important for the Fiat group to be customer focused.

Shakespeare in Love Essay -- essays research papers

The movie that is being compared to a story here is one of the all-time best. The main theme portrayed in "Shakespeare in Love" is a love that is never meant to be. "Shakespeare in Love" parallels the play Shakespeare is currently working on, Romeo and Juliet, in which love is not meant to be due to the many obstacles in the way. Shakespeare's life in the film is very comparable to Romeo's life in Romeo and Juliet. William Shakespeare's life in the film and the play he is writing has several similarities and differences. In my opinion, this is one of the best movies and books to compare. "Shakespeare in Love" is a fairly accurate representation of the life of William Shakespeare at the time he was writing Romeo and Juliet. The young writer at the beginning of the film, is experiencing writer's block. He is writing, but is confused. Will's first inspiration is Rosalind, a woman that has stolen Romeo's heart at the beginning of the play. "Romeo and Rosaline. Scene one. God, I'm Good." (Norman pg.20). This shows how Will is inspired by Rosaline. It is not until he encounters the young noblewoman, Viola de Lesseps, that he discovers true love. This love that he meets is the one who takes his heart and is so special. The connection between Will and the woman he fell are love with is so special. Ultimately this movie is about the making of a great play, but most importantly it is about the power of words. The way they speak to each other is just like a play and it is true love being spoken. This is a connection that is love which, is never meant to last. In Romeo and Juliet, both Romeo and Juliet fall in love with each other as soon as they lay eyes on each other. The difference from this movie and the play, Romeo and Juliet, is that Will and Viola find love but they do not proceed it to the level it needs to go. However, in "Shakespeare in Love," both William and Viola feel true love at first sight, but it is more of an image that Viola falls in love with. She has fallen in love with some that she sees and everything about the poet. The mystique that surrounds William Shakespeare is uncontrollable and that is what she loves no matter what is wrong. It is after she spends more and more time with him that she begins to fall ... ... separated. "Goodbye, my love, a thousand times goodbye." (Norman pg. 116). Shows how Viola and Will had to say goodbye to each other. The reason for Will and Viola not being able to be together is because she is already set to be married. The reason for Romeo and Juliet is that there family and groups hate each other. Also, Romeo and Juliet do not get to act with each other like Will and Viola does. Will and Viola got to see each other much more. I have learned from the movie and the play that these are two very different and similar plots. When I watch the movie Shakespeare in Love, it is like I am watching William Shakespeare live same life as his famous screenplay, Romeo and Juliet. The nice thing about the movie is that no one had to die. Will fall in love with this beautiful woman, Viola de Lesseps. They share a hidden romance. Eventually, they will have to separate because she is already set to marry a man named, Lord Wessex. Sometimes it gets sad to know that they did not get to finish the romance, but Will would use his secret love to be a topic in some of his future love plays. I feel this is a fantastic movie and I would watch it again sometime if I had too.

Americans Need More Vacation Time :: Argumentative Essays

â€Å"I really need a vacation!† Is there a more common phrase in the workplace in America today? I’m sure all of us had uttered that phrase at least once in the last 12 months. Americans are so vacation-deprived, then why is it that almost a third of the American working adults are giving up some earned vacation this year, and when they do go on vacation they still do some work by checking in with office communications, according to a Harris Interactive vacation-related poll? The following table below indicates that the U.S. ranks 10th in term of average number of vacation days around the world per year, with the average of just 13 days per year compared to the United Kingdom’s 28, and Italy’s 42 days per year. Even the average worker in Japan – where the term karoshi, which means â€Å"death by overwork†, was coined gets five weeks of annual paid vacation. Average Number of Vacation Days Around the World Per Year Italy  Ã‚  Ã‚  Ã‚  Ã‚  42 days France  Ã‚  Ã‚  Ã‚  Ã‚  37 days Germany  Ã‚  Ã‚  Ã‚  Ã‚  35 days Brazil  Ã‚  Ã‚  Ã‚  Ã‚  34 days United Kingdom  Ã‚  Ã‚  Ã‚  Ã‚  28 days Canada  Ã‚  Ã‚  Ã‚  Ã‚  26 days Korea  Ã‚  Ã‚  Ã‚  Ã‚  25 days Japan  Ã‚  Ã‚  Ã‚  Ã‚  25 days U.S.  Ã‚  Ã‚  Ã‚  Ã‚  13 days Source: World Tourism Organization (WTO). We like to think that we’ve got the world’s highest standard of living with the per capita GDP of $37,800, 3rd highest in the world , and yet, we are the only industrialized nation that refuses to mandate vacation for workers in the private sector. And if you think we are making the most of those precious few days that we get, you couldn’t be more wrong. According to a study conducted in May 2004 by Harris Interactive, the average American planned not to use three of his or her vacation days this year, up from two days last year. The study also found that nearly 40 percent American said they had canceled or postponed vacations due to work. So what’s the matter with us?

Samsung Electronic Corporation: Governance of Chaebols

CASE: SAMSUNG ELECTRONIC CORPORATION: GOVERNANCE OF CHAEBOLS Copyright: Prof. Florencio Lopez-de-Silanes Professor Florencio Lopez-de-Silanes and Rakhi Kumar, Yale MBA02 prepared this case as the basis for class discussion rather than to illustrate the effective or ineffective governance of an organization. Prof. Florencio Lopez-de-Silanes INTRODUCTION Case: Samsung Electronics Prior to the Asian currency crises, South Korea was an investment destination for several institutional investors and emerging market funds. Throughout the early nineties the country experienced an economic boom.South Korean conglomerates, locally know as chaebols, had diversified into various industries from cars to microchips. Samsung Electronics Corporation (Samsung Electronics), a rising star in the Samsung Chaebol was considered to be a high growth company. However, in 1997, the Asian currency crises magnified the problem of the Chaebol structure and highlighted the need for governance reforms. By 1999, a shareholder rights activist in South Korea – Prof. Hasung Jang had taken up the cause of minority shareholders of Samsung Electronics.With the help of foreign institutional investors, he planned to fight for governance reforms in South Korea. As a corporate governance specialist, Samuel Smith, had been contracted by a large foreign institutional investor to help reform Samsung Electronics. KOREAN CHAEBOLS: Establishment, growth and structure. In order to accelerate economic growth in the 1970’s, the Korean government formulated industrial policies that encouraged investment in heavy and chemical industry (HCI). Funded largely by government-controlled banks, affluent families took advantage of the liberal policies and set up ompanies in these industries. By the end of the 1970’s approximately 80 percent of fixed investment in the manufacturing sector was in HCI businesses. Between 1962 and 1982, annual growth averaged 8. 4%, although by the end of the 1970â€⠄¢s production efficiency in priority sectors was falling. As a result, there was excessive investment in the HCI industries and little allocation efficiency in the capital markets1. Due to over investment in the HCI industry and small domestic markets, companies began diversifying into unrelated businesses, giving birth to the Korean Chaebols.Government intervention in resource allocation proved to be very costly. Enterprises that had access to preferential policy loans or tax incentives tended to expand their businesses The Institute for International Economics – Financial Services Liberalization in the WTO: Case Study of South Korea 1 1 Prof. Florencio Lopez-de-Silanes Case: Samsung Electronics rapidly without careful appraisal of investment projects. Since the government largely made lending decisions, creditor banks had little incentive for credit evaluations or loan monitoring.As a result, firms were heavily leveraged and borrowed from informal credit markets as they we re usually pressed for working capital. This structural weakness put the economy on the verge of a financial crises in early the 1970s and then again in the 1980s2. However, public purse bailing out of large enterprises became the norm and people were made to believe that chaebols were too big to fail. When the government decided to open up the South Korean economy, many of the protective measures that local companies had enjoyed during the developmental era were removed.Companies that had expanded into unrelated businesses found that they no longer had access to government capital. Initially, banks were also not interested in financing these projects, nor did they have the expertise to evaluate these new high-risk businesses. Hence, business groups started creating their own group wide internal capital markets. Transfer pricing, cross-shareholdings and cross-guarantee of debts were some of the mechanisms employed by chaebols to fund expansion. They pooled any funds available to the subsidiaries to supplement outside funding of new projects.Operations of these internal finance markets were not necessarily based on efficiency in resource allocation but were often driven by the interests and concerns of the controlling families. 3 Many Chaebols invested overseas and ‘globalization’ was the new theme. However, the globalization strategy was not well planned. Chaebols held onto the management strategy that they had been practicing over the last thirty years: growth in size ignoring profitability; financial structure with high debt-to equity ratio and cross debt guarantee among affiliated companies. By 1997 there were over fifty chaebols in South Korea, each with a myriad of affiliated companies all linked to one another through a complex network of cross-holdings. Ownership and affiliation details of twenty chaebols are provided in Exhibit 1. Family-Based Business Groups: Degeneration of Quasi-Internal Organizations and Internal Markets in Korea by Sa ng-Woo Nam, December 2001. 3 Ibid. 4 Corporate Governance and Economic Development: The Korean Experience by Ha Sung Jang. 2 2 Prof. Florencio Lopez-de-Silanes THE SAMSUNG GROUP: It is all in the family.Case: Samsung Electronics Founded in 1938 by Mr. Byung Chul Lee, Samsung Group’s original line of business was exporting dried fish, vegetables and fruits produced around Korea to Manchuria and Beijing in China. Within a few years of incorporation, the company expanded its operations to include manufacturing and sales when it set up a flourmill and bought confectionary machines. In the 1970’s it diversified into the petrochemical, electronics and heavy industries. By early 1990’s, the Samsung Group had grown into the fourteenth largest company in the world.It had diversified into four primary industries, and had over twentyfive affiliated companies. Like most Korean companies, the Samsung Group structure developed into a confusing maze of cross-ownership among af filiated companies. Exhibit 2 provides a list of affiliated companies in the Samsung Chaebol while Exhibit 3a and 3b shows the complex crossownership structure among the affiliated companies. For example, according to Exhibit 3a, affiliated companies owned 15. 83% of Samsung Electronics. Exhibit 3b provides the break up of ownership between affiliates.Therefore, Samsung Company owns 4. 45% of Samsung Electronics, Samsung Life Insurance owns 8. 16% and so on. By 1997, combined annual revenues of all the businesses in the group were close to USD 100 billion, with profits reaching USD 290 million. The Samsung Group constituted approximately 10% of the total market value of all companies listed on the Korean stock market. However, like all other chaebols, its debt-to-equity ratio hovered around 365%. SAMSUNG ELECTRONICS CORPORATION: Governance of Cheabols. Samsung Electronics was established in 1969.By the mid 1990’s, it had strategically invested in research and development of D RAM chips and had grown into a billion dollar company. Exhibit 4 shows the contribution made by Samsung Electronics to the overall revenues and profits of the Samsung Cheabol. By the late 1990’s, Samsung Electronics had 24 production subsidiaries, 35 sales subsidiaries and 20 branch offices around the world including North America, Europe, Southeast Asia, Central Asia, China and Latin America. It 3 Prof. Florencio Lopez-de-Silanes Case: Samsung Electronics managed four strategic businesses in the fields of Home, Mobile, Office Network and Core Components.However, in 1997, excess production capacity in the microchip industry lead to a downward spiral in chip prices. Profits at Samsung Electronics plunged to new lows. The Asian Currency crises compounded the problems facing the company. By late 1997, the company’s debt totaled 13 trillion won (approximately USD 9 billion) and more than 70 percent of it was in foreign currency loans5. The financial run on the economy by f oreign institutional investors saw the country’s currency tumble 10. 6 percent. Domestic interest rates on threeyear corporate bonds hit 30. 1 percent.The US rating agencies, in addition to downgrading the sovereign debt to â€Å"junk bond† status, also lowered the credit worthiness rating for several of the largest South Korean companies including Samsung Electronics6. The company’s share prices reflected the macro and micro economic turmoil faced by the company. Exhibit 5 provides daily share prices of the Samsung Electronics stock on the Korean stock exchange for a 15-month period starting September 1996. However, a liner trend line indicates that, by and large, the share price was declining marginally but was above the 50,000 won mark.After a period of negative results, minority shareholders started questioning governance practices of the company. They alleged that Samsung Electronics had neither internal or external corporate governance mechanism which acte d as checks and balances and that all management decisions were made taken by the Chairman. The internal mechanisms such as Board of Directors and Auditors, did not function properly at least when it came to monitoring the Chairman. For example they questioned the board’s decision of acquiring shares of a firm, Ichon Electric, whose financial stability was shaky.This acquisition cost Samsung Electronics 27. 6 billion won when the company went bankrupt a few years later. 7 When things starting going wrong, neither the Chairman nor the Board of Directors took any responsibility for failed investments or even for illegal activities. Instead the chaebol lobby issued a report attacking minority activism. They said, â€Å"Minority shareholders’ rights to demand compensation should be respected only in the event of embezzlement and other illIR on the net: How they did it at Samsung Electronics. http://www. ironthenet. com/feature. sp? current=1&articleID=2289 6 Washington Po st Foreign Service: South Korea Takes Three More Punches by Steven Mufson. 7 Korean IT News: Civic Group Challenges Samsung Chairman’s Alleged Mismanagement by Kim Deok-hyun. 5 4 Prof. Florencio Lopez-de-Silanes Case: Samsung Electronics intentioned behaviors. Managerial misjudgments should not be the subject of criminal liabilities. Activism can also harm the interests of majority shareholder and decision-making by management. † 8 In 1998, the Board of Directors of Samsung Electronics consisted of twenty-three members.This number had been trimmed from the previous year when the board comprised of fortythree directors. Exhibit 6 provides a profile of the directors on the board of Samsung Electronics. Some shareholders believed that accounting manipulation and improprieties had become standard practice and company funds had been used to make political contributions in the Chairman’s name. A minister in the Korean cabinet faced corruption allegation that he earned USD 1. 4 million when he was given an interest-free loan from Samsung Electronics and acquired the Company’s shares at a discount rate while he was an ‘outside’ director on the company board. External mechanism such as markets for corporate control also did not exist and legal protection of shareholder’s rights was limited. 10 Courts in Korea did not have experience of dealing with corporate governance cases and often their rulings seemed to go soft on the guilty. For example, the Suwon District Court ordered Samsung's Chairman Lee to return to the Samsung companies 7. 5 billion won in damages on charges of providing bribes to former president Roh Tae-woo. However, the court did not demand that Lee take legal responsibility for the two mismanagement cases of his group's ubsidiaries, saying he did not participate in the decision-making. 11 Samuel Smith wondered if the allegations of the minority shareholders held any merit. Internal and external economic fo rces had not changed much in the last decade, yet it was only after the Asian currency crisis that these allegations were being made. The Korean Herald: Chaebol face tough attacks from minor shareholders by Yoo Cheong-mo: February 25,1999. 9 AFX News Limited: South Korean education minister resigns amid corruption allegations; August 31, 2000. 10 Corporate Governance and Economic Development: The Korean Experience by Hasung Jang. 1 Korean IT News: Civic Group Challenges Samsung Chairman’s Alleged Mismanagement by Kim Deokhyun. 8 5 Prof. Florencio Lopez-de-Silanes HASUNG JANG: The voice of minority shareholders. Case: Samsung Electronics Dr. Hasung Jang is a well know minority shareholder rights activist in South Korea. He received his MA in economics from the New York State University and a Ph. D. in finance from the Wharton School. On returning to South Korea, he joined the Korean University as a professor of finance and the director of the Center for Finance and Banking Res earch.As the Chair of the Participatory Economy Committee, a minority shareholder protection civil group, under the umbrella of the Peoples Solidarity for Participatory Democracy, Dr. Jang took up the cause of shareholder rights in Korea. He undertook investigations to evaluate the governance of chaebols and financial dealings among affiliated companies. Dr. Jang targeted Samsung Electronics and made allegations of self-dealing transactions. In particular he spoke about a transaction dated 24 March 1997, when Samsung Electronics made a private placement of unsecured convertible bonds worth 60 billion won (US $46. million). He was troubled by the fact that the bonds had been sold to company insiders. The Chairman’s son had purchased 45 billion won worth of bonds and another Samsung affiliate had purchased the remaining bonds worth 15 billion won12. Dr. Jang alleged that this issue was at unfavorable terms for the company and called into question the price of the bonds. On thei r part, company executives explained that Samsung Electronics was badly in need of fund and that international funding, which previously was the main source of capital had dried up after the Asian currency crises.Further, as the company was finding it extremely difficult to raise money from domestic financial institutions they had little choice but to privately place the bonds. Besides the amount raised was less than one percent of existing long term loans. Dr. Jang also alleged that Samsung Electronics had both directly and indirectly funded the Samsung Groups’ doomed venture into the car industry at the expense of minority shareholders. Samsung Electronics had acquired a 21. 1% stake in Samsung Motors at the acquisition cost of 170 billion won (USD 106 million).The indirect investment of Samsung Electronics into Samsung Motors was in the form of a joint investment agreement between 12 Nascent Stages of Corporate Governance in an Emerging Market: regulatory change, sharehold er activism and Samsung Electronics by Hasung Jang and Joongi Kim. Corporate Governance Volume 10 Number 2 April 2002. 6 Prof. Florencio Lopez-de-Silanes Case: Samsung Electronics an Ireland-based paper company called Pan-Pacific Industrial Investments (PP) and Samsung Electronics (and two of its affiliated companies). At first lance the PP agreement looked like a direct investment into Samsung Motors by a foreign entity (PP) in accordance with Korean laws regulating foreign exchange. However, under the terms of the joint venture agreement, Samsung Electronics had guaranteed PP a certain rate of return through put and call options within a specified redemption period, on Samsung Motor shares it (PP) owned. This arrangement was made in addition to bridge loans made by Samsung Group to PP. Dr. Jang alleged that that this transaction was not a clear direct investment and in fact violated legal requirements for other types of transactions.Samsung Electronics rebutted the allegations and explained that the put and call options were just clauses in the agreement put there to provide additional security for PP. The Company was more like a third party in the transaction and the agreement did not have any financial implications for the shareholders. SAMUEL SMITHS TASK 1997 had been a troubled period for Korean companies. The country had experienced a severe economic shock, which had practically destroyed the economic structure that had developed over the past four decades.It was confusing and upsetting times for companies and investors, all of whom has suffered tremendous loss. Sam had to objectively analyze the allegations made by the minority shareholders and check for fundamental problems at the company. Naturally, dealing with an emerging market came with its challenges. For one, economic data was scarce and very little corporate information was publicly available. As Sam sat down to prepare for his meeting with his client he made a list of questions he needed to a nswer. 1. What are the benefits and disadvantages of the Korean chaebol structure?In particular what governance issues can arise due to this structure? 2. Analyze the capital structure of Samsung Electronics. Compare it with the capital structure of a company in the similar line of business (primarily manufacture of chips) from another developed country and comment on the differences. 7 Prof. Florencio Lopez-de-Silanes Case: Samsung Electronics 3. If Samsung Motors makes an after tax profit of USD100 million, what share of that would go to the Lee family (owners)? What percentage of Samsung Motors do they directly own? Note: You do not have to provide the exact number. A good approximation will be adequate. ) 4. The client wants to recommend governance changes with special emphasis on the board of directors. Evaluate the current board of Samsung Electronics. What are the strengths and weaknesses in the current board composition? How many directors can be classified as non-executive? How many can be classified as independent? What are your criteria’s for assessing director independence? Do you think changes need to be made to the current board composition?If no – why not, if yes – what changes would you recommend? 5. Based on the company’s financials as of December 31, 1997 and publicly available information, investigate the allegations made by Dr. Jang. Do you think the convertible bond issue was a self-dealing transaction? How would you prove that claim? What evidence do you have on you claim? (Note: you are not expected to do a DCF. ) 6. Does the agreement with the Pan-Pacific Industrial Investment resemble a simple direct investment or something else? Why was the guarantee clause included in the contract? Does it change the instrument?If you were on the Audit committee of the company what questions would you ask about this transaction? 8 Prof. Florencio Lopez-de-Silanes Exhibit 1: Share Ownership and Affiliates of Chaebols Contro lling Family Ownership Ownership Affiliates No. of (%) (%) Affiliates 5. 00 20. 98 8. 50 36. 05 6. 49 6. 61 13. 88 6. 45 12. 62 27. 73 5. 72 4. 57 18. 56 23. 91 21. 22 16. 31 2. 48 15. 33 14. 36 5. 33 6. 38 11. 29 30. 20 28. 57 30. 11 35. 74 24. 35 29. 60 43. 19 35. 95 22. 94 20. 36 17. 07 37. 92 18. 64 28. 35 37. 70 14. 20 21. 29 25. 64 25. 52 29. 76 30. 09 43. 24 44 28 27 22 18 17 17 15 13 12 12 12 11 11 10 10 8 6 6 5 5 3Case: Samsung Electronics Cheabol LG Hyundae Sam-sung Lotte Dae-woo Han-Wha Doo-San Ssang-Yong SK Han-Jin Dae-Rim Kolon Hyo-Sung Han-il Dong-Kuk steel Kum-Ho Kia Sam-mi Dong-Bu Koryo textile Hai-Tai Kukdong Const No. of listed Affiliates 8 9 12 3 7 6 5 7 3 5 5 4 2 5 4 5 2 2 5 1 2 2 Notes: Data as of 1989 with the exception of LG (1992) Source: Business Groups in China Compared with Korean Chaebols by Keun Lee and Wing T. Woo 9 Prof. Florencio Lopez-de-Silanes Exhibit 2: Affiliated companies within the Samsung Group Industry Electronics Case: Samsung ElectronicsAff liated Companies Samsung Electronics Samsung Electro-Mechanics Samsung SDI Samsung Corning Samsung SDS Samsung Networks Samsung Corning Precisions Glass Samsung Heavy Industries Samsung Techwin Samsung General Chemicals Samsung Petrochemicals Samsung Fine Chemicals Samsung BP Chemicals Samsung Life Insurance Samsung Fire & Marine Insurance Samsung Card Samsung Securities Samsung Capital Samsung Investment Trust Management Samsung Venture Investment Samsung Engineering Cheil Industries Samsung Everland Shilla Hotel & Resorts Cheil Communications SI Corporation Samsung Lions Samsung Medical CenterMachinery & Heavy Industries Chemicals Financial Services Miscellaneous Note: This table shows the most important affiliate companies within the Samsung Group for the period of interest. 10 Prof. Florencio Lopez-de-Silanes Case: Samsung Electronics Exhibit 3a: Ownership structure of Companies in the Samsung Chaebol. (all figures in %'s) No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 2 1 22 23 Name of Firms Samsung Electronics Samsung Display Devices Samsung Co.Samsung Motors Samsung Heavy Industries Samsung Electro-mechanics Samsung Life Insurance Samsung Aerospace Industries Cheil Wool Textile Samsung General Chemicals Samsung Precision Chemicals Samsung Corning Hotel Shilla Samsung Securites Samsung Engineering Samsung Winners Card SI Corporation Samsung Everland Samsung Factoring Financing The Joong-Ang Daily News Samsung Petro-Chemicals Samsung Commercial Motors Samsung Fire & Marine Insurance Owner Family 5. 41 2. 32 Directors Non-profit & foundation Managers 0. 13 2. 44 0. 49 0. 02 0. 16 0. 19 0. 13 30. 60 0. 08 0. 46 25. 00 0. 05 0. 10 0. 74 0. 1 0. 64 6. 20 0. 06 SelfOwned 3. 52 2. 89 5. 17 Total of Affiliate Firms 15. 83 19. 77 19. 55 38. 36 27. 35 27. 54 2. 25 26. 47 2. 20 89. 39 39. 15 49. 36 12. 67 22. 33 16. 03 90. 27 22. 48 23. 99 100. 00 14. 92 36. 33 100. 00 13. 05 1. 42 0. 03 3. 00 15. 00 5. 00 3. 23 0. 85 0. 30 0. 84 31. 20 1. 35 0. 01 6. 23 67. 30 41. 80 0. 36 4. 50 0. 68 3. 98 Source: Business Group in China Compared with Korean Cheabols by Keun Lee and Wing T. Woo 11 Prof. Florencio Lopez-de-Silanes Case: Samsung Electronics Exhibit 3b: Detailed Break-up of Affiliate Shareholding Provided Above (all figures in %'s)Decomposition of shares by major affiliates No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Name of Firms Samsung Electronics Samsung Display Devices Samsung Co. Samsung Motors Samsung Heavy Industries Samsung Electro-mechanics Samsung Life Insurance Samsung Aerospace Industries Cheil Wool Textile Samsung General Chemicals Samsung Precision Chemicals Samsung Corning Hotel Shilla Samsung Securites Samsung Engineering Samsung Winners Card SI Corporation Samsung Everland Samsung Factoring Financing The Joong-Ang Daily News Samsung Petro-Chemicals Samsung Commercial Motors Samsung Fire & Marine Insurance 2 3 4. 45 5 6 7 8. 16 5. 39 6. 22 8 9 0. 61 0. 09 0. 07 0. 60 14 0. 01 0. 01 13. 24 18 0. 15 0. 28 1. 24 20 0. 45 23 2. 00 3. 19 10. 87 21. 11 18. 92 21. 92 8. 13 3. 82 9. 31 48. 36 5. 72 16. 03 54. 37 10. 40 12. 74 7. 45 0. 28 2. 48 6. 08 2. 56 4. 92 5. 59 7. 75 2. 20 0. 03 0. 12 25. 90 0. 90 3. 51 2. 25 0. 33 0. 30 3. 44 10. 14 37. 79 6. 20 10. 28 0. 29 0. 21 1. 47 14. 40 11. 39 1. 89 25. 00 3. 92 10. 00 21. 50 3. 45 1. 00 6. 95 10. 62 4. 75 5. 49 9. 95 5. 00 0. 25 2. 50 100. 00 11. 49 8. 50 16. 40 0. 13 17. 10 1. 01 4. 75 9. 93 1. 56 Source: Business Group in China Compared with Korean Cheabols by Keun Lee and Wing T. Woo 12 Prof. Florencio Lopez-de-Silanes Case: Samsung Electronics Exhibit 4a: Contribution of Samsung Electronics (parent company only) to Samsung Group. All figures in Billion Won Samsung Electronics (parent company) 1997 1998 20,084 313 20,776 13,806 6,970 1999 26,118 3,170 24,710 11,378 13,332 1997 Samsung Group Samsung Electronic (parent co. ) as a % of Samsung Group 1999 106,730 2,511 133,213 101,023 32,190 1997 11. % 25. 5% 12. 3% 10. 6% 22. 7% 1998 23. 4% 131. 5% 19. 1% 15. 4% 36. 3% 1999 24. 5% 126. 2% 18. 5% 11. 3% 41. 4% 1998 85,788 238 109,022 89,839 19,183 Sales Net Income Assets Liabilities Shareholders Equity Source: Samsung Website 18,465 124 23,066 17,236 5,830 161,448 487 187,824 162,120 25,704 Exhibit 4b: Contribution of Samsung Electronics (consolidated basis) to Samsung Group. All figures in Billion Won Samsung Electronics (consolidated) 1997 Sales Net Income Assets Liabilities Shareholders Equity Source: Samsung WebsiteSamsung Group Samsung Electronic (parent co. ) as a % of Samsung Group 1999 106,730 2,511 133,213 101,023 32,190 1997 14. 0% -125. 3% 17. 1% 16. 9% 18. 1% 1998 30. 0% -152. 1% 22. 1% 21. 2% 26. 5% 1999 30. 1% 126. 4% 21. 9% 15. 8% 40. 9% 1998 1999 32,088 3,175 29,178 16,004 13,174 1997 161,448 487 187,824 162,120 25,704 1998 85,788 238 109,022 89,839 19,183 22,682 25,772 (610) (362) 32,035 27,386 4,649 24,105 19,016 5,089 13 Prof. Florencio Lopez-de-Silanes Case: Samsung ElectronicsExhibit 5: Closing price of Samsung Electronic Shares and the Liner Trend of its Stock Price. Daily Closing Price of Samsung Electronics Shares September 1, 1996 to December 31, 1997 80,000. 0 Share Price in Korean Won 70,000. 0 60,000. 0 50,000. 0 40,000. 0 30,000. 0 20,000. 0 10,000. 0 1/1/97 2/1/97 3/1/97 4/1/97 5/1/97 6/1/97 7/1/97 8/1/97 10/1/96 11/1/96 12/1/96 9/1/97 10/1/97 11/1/97 12/1/97 Day Close Linear (Close) 14 Prof. Florencio Lopez-de-Silanes Case: Samsung Electronics Exhibit 6: Profile of Directors on the Samsung Electronics Board No.Name of Director 1 Kun-Hee Lee 2 Jong-Yong Yun 3 Hak-Soo Lee 4 Yoon-Woo Lee 5 Dae-Je Chin 6 Doh-Seok Choi 7 In-Joo Kim 8 Jing-Wan Kim 9 Sung Rai Choi 10 Soon-Taek Kim 11 Jin-Hoon Je 12 Joong-Koo Lee 13 Yang-Gyu Park 14 Hong-Sik Ko 15 Soo-Woong Park 16 Jae Yong Lee Designation Chairman & CEO, Samsung Electronics Vice Chairman & CEO, Samsung Electronics President & CEO, Group Reformation Headquarters, Samsung Electronics President & CEO, Device Solutions Netw ork, Samsung Electronics President & CEO, Digital Media Network, Samsung Electronics President & CFO, Samsung Electronics Executive VP, Group Reformation Headquarters, Samsung Electronics President & CEO, Samsung Heavy Industries President & CEO, Samsung Petrochemicals Vice President & CEO, Samsung SDI Company Ltd. Vice President & CEO, Samsung Factor Financing President & CEO, Samsung Techwin Company Ltd. President & CEO, Samsung Networks President & CEO, Samsung General Chemicals Company Ltd. Vice President & CEO, Samsung Fine Chemicals Ltd. Family Relation None None None None None None None None None None None None None None None 7 Ra-Hee Hong Lee 18 Soo-Bin Lee 19 Hyeon-Gon Kim 20 Chong-Yeul Pae 21 Kap-Hyun Lee 22 Suk-Soo Kim 23 Tetsuo Iwasaki Owns 25. 1% of the shares of Samsung Everland, which Son of Kun-Hee controls Samsung Life, the holding company of Lee Samsung Group Director General, Samsung Museums. Wife of Kun-Hee Lee Chairman & CEO, Samsung Life Insurance Company None Vice President & CEO, Samsung BP Chemicals Company Ltd. CEO, Samsung Corporation Advisor, Boston Consulting Group President Law Office of Suk-Soo Kim None None None None Chairman/CEO/President Applied Komatsu None Technology Note: The information provided in this exhibit is for illustrative purposes only. It does not reflect the real board structure at the Samsung Electronic Corporation. 15