Case Study for Samsung Electronics

Case Analysis for Samsung Electronics 1. What is SMIC’s strategy? Should Samsung be concerned about SMIC? SMIC seems to execute the same kind of strategy Samsung used before to succeed. The strategy is selling their products at low prices and growing their market share at the expense of profitability. SMIC may threaten Samsung’s business in the future, but not too much. Although SMIC can get many resources, such as cheap funds and lands from Chinese government and foreign investors, SMIC only focuses on producing chips, not designing chips.Samsung Distribution ChannelThe cost of the application of a new tap today is 3 billion and it is difficult for SMIC with sales revenue of 365. 8 million in 2003. Samsung’s success depends on its constant technology innovation, leading to high quality products and efficient manufacturing process which will benefit Samsung with high retail prices and low cost. SMIC seems hard to get core technology from their partners unless for ming a joint venture. However, cooperating with chip manufacturers in Taiwan seems more attractive for the leading technology owners.Except the technology, Samsung still enjoy unit cost advantage in raw materials, R&D and depreciation. SMIC may threaten Samsung’s old generation products. However, memory chip industry is a tech-oriented industry, Samsung can still maintain its leading position because its advantage in innovation. What Samsung should concern is that the fast growing Chinese market (estimated to be the second-largest semi-conduct buyer in 2010), their global competitors may get market-entry advantages through cooperating with SMIC. 2. The low cost position.Samsung operating profit advantage over the industry composite is $2. 11 per unit, 34% from selling price and 66% from cost advantage. To SMIC, it is 1. 78 per unit, 70% from selling price and 30% from cost advantage (Exhibit 1). For the comparative cost analysis, Samsung have unit advantage over the industry composite in all the five elements. They are raw materials 36%, labor 27%, depreciation 18%, R&D 3%, SG&A 25. 29%. Compared to SMIC, Samsung has advantages in raw material 36%, depreciation 17% and R&D 25%, but has disadvantages among labor 57% and SG&A 48% (Exhibit 2). . 1 Analysis Samsung VS Industry Composite a. Samsung’s unit selling price advantage comes from two aspects. First, PC OEM manufacturers would pay 1% price premium to reliable suppliers. Second, Samsung can customize its products for some special use because its diverse products line to get premium. Third, Samsung has the most advanced products which can enjoy high selling price during the first several-month launching time. b. Samsung’s unit raw material cost advantage come from three aspects. First, the material suppliers will give maximum 5% discount to large volume buying.Second, the usage of 12-inch wafer (reduce 10% cost per chip) and 0. 11? m processing technology(80%, the highest yield rate) mak es Samsung get more chips with same amount of materials. Assuming the weighted average raw material cost per chip of Samsung is 100%, the Mircon will be 134%, Indineon 116% and the Hynix 161% (Exhibit 3). c. Samsung’s unit labor’s cost may be explained by the salary differences between Samsung ($44000 per year) and the industry ($49312 per year, weighted average by production volume). Also, there are some invisible issues.Samsung provides equal and competitive corporation value, unique evaluation and promotion system and humanity warfare for their employees. These elements make Samsung more productive, so the labor cost per unit is lower. d. The reason for Samsung’s unit depreciation cost advantage per unit is similar to that of raw materials. With high processing technology (0. 11? m) to control yield rate (Samsung 80% vs Industry weighted average 59%), Samsung can produce more efficiently. So the depreciation per unit is lower. The production efficiency advant age (25%) is higher than the cost depreciation advantages (17%).That may because Samsung uses more advanced and expensive machine. e. Samsung’s advantage in unit R&D cost may come from three ways. First, the competitive corporation culture drive employees to devote themselves in innovation. And the technical person works together with the manufacturing one, making the innovation process more efficient. Second, the innovation method is effective. The can use same core technology to develop different products types, such as the DDR and Rambus. Third, centralization of the R&D facilities saves an average 12% fab construction costs. . Samsung’s unit SG&A cost advantage comes from the efficient management structure of the country reducing the general administration cost and good reputation of products reducing the sales expenses. 3. 2 Analysis Samsung VS SMIC a. Compared to the industry composite, Samsung’s profit advantage over SMIC mainly from the price realization (70%), and the cost advantage only stands for 30%. The huge price gap results from several aspects. First, the quality and reputation for SMIC is lower. Second, the technology SMIC used was one or two generation older than Samsung.Third, use the low price strategy to get the market share. Finally, SMIC using purchasing rights exchanging for technology partners, the price of product selling to their partner may be lower than the marketing price. b. The reason for Samsung’s unit material cost advantage seems similar to the one over industry composite. c. The disadvantage of labor cost is because the average salary of SMIC is only a quarter of Samsung. d. The reason for Samsung’s unit depreciation cost seems similar to the one over industry composite. The gap should be larger.However, the SMIC gets cheap loans and government support, and buy old product line from Motorola. These issues may help SMIC reduce the gap. e. Samsung’s unit R&D cost advantages may be expl ained with SMIC’s start-up status. It usually spends a lot at the early age of innovation. To build a new fab for SMIC is more expensive than Samsung. f. The disadvantage of Samsung in unit SG&A may be explained by SMIC’s strategy. Now, SMIC has to manufacture the products for their technology partners. SMIC seem to focus less on marketing their brands and become an OEM factory. 3. Can Samsung retain its cost advantage?If lose, what would happen at Samsung and SMIC? In my opinion, the main drive for Samsung’s profit is its innovation, which can lead to high selling price and low manufacturing cost. The raw materials advantages may be decreased with increasing SMIC production volume and advanced manufacturing technology. The labor disadvantage is hard to say because Chinese labor cost is also rising. The depreciation advantage may be decreased by the efficiency improvement of SMIC. The R&D gap may also be decreased by the development of SMIC. SA&G depend on to wh at degree SMIC want to promote their own brand.So the Samsung’s cost advantages over SMIC will be decreased in the future and even lose. However, assuming that someday Samsung loses its cost advantages, it is still very likely that Samsung is ahead of SMIC by one or two generation. Samsung still can make more profit by with higher selling prices. Even though SMIC can get government support and cheap funds, it cannot acquire the same kind of corporate culture and the centralized R&D facility. By the way, SMIC cannot tolerant long time profit loses as a public company and the national security concerns may put more resource on logic chip. 4. Options and recommendations. a.Joint venture: Corporate with SMIC or other chip manufacturers in China to produce low end DRAM. Even the low end technology is attractive to China and get government support. Open the potential Chinese market and reduce cost. But it is hard to maintain the relationship with the constant requirement of technol ogy transfer. b. OEM: License SMIC and make it as an OEM manufacture for Samsung. Transfer our low end technology to SMIC. The longer SMIC keeping the contract, the less threat. However, SMIC seems unwilling to accept this contract unless it faces profit pressure. SMIC’s ability may not reach the Samsung products requirement. . Focusing on our own business: Samsung’s core competency is constant and efficient innovation. Memory chip industry is technology-oriented and the advantage cannot be achieved in few years (Unless competitor gets breakthrough such as total substitute, which is little probability). The corporate value cannot be copied in a short time. Samsung may reallocate its resources of DRAM (profit, manufacturing capacity of old chips and R&D) towards more promising flash memory business. By doing that it can still keep its leading position in memory chip industry. I recommend this option.

Conflict Resoluton in the Classroom

Running Head: INCORPORATING CONFLICT RESOLUTION 1 Incorporating Conflict Resolution Melinda McCray Concordia University INCORPORATING CONFLICT RESOLUTION 2 As an educator, it is important that I not only know how to effectively deliver the curriculum to my students, but to also be able to effectively manage my classroom. Managing the classroom is not just writing disciplinary referrals or assigning detentions, but also includes making the proactive decision to prevent and mitigate conflicts as they arise in the classroom. While all conflicts obviously cannot be prevented, teachers must be instrumental in guiding students to resolving their conflicts. Thomas Lickona (1991) touches on guiding students through conflicts. He writes, â€Å"even if students have the benefit of a conflict curriculum, social skill training†¦ many will still have trouble applying these learnings†¦ In these situations the teacher usually has three tasks: (1) Helping students understand†¦ (2) Helping students work out a fair solution†¦ and (3) Helping children practice the behavioral skills†¦. (294-295). While some of these suggestions may not be applicable to high school students in some instances, I think that Lickona’s suggestions have merit. In my classroom, I could certainly incorporate helping my students practice good behavioral skills. I would definitely focus on the moral aspects of discipline and behavior, because students can relate to how they would like to be treated, using the â€Å"what if† scenario. Morality of mind is always an incentive to encourage a child to behave in the proper way. Community involvement is not always that easy at my school, but using our parent liaison could be a step in that direction. Maybe the liaison could reach out to the parents when teachers cannot. Lickona(1991) suggests that observant teachers know the situations that trigger situations, (295) as one such teacher, using effective conflict resolution strategies such, one-on-one counsel, seating arrangements, and modeling good moral conduct is the way I plan to continue to resolve conflicts as they arise in my classroom and keep the classroom environment safe. References Lickona, T. (1991) â€Å"Educating for Character† How our schools can teach respect and responsibility. New York: NE Bantam Books

Music Observation Classroom Essay

Before entering this classroom my purpose was to see the difference from a music class compared to a regular kindergarten class. I wanted to observer her lesson plan and see how she handles the kids with a different activity. This observation was very different compared to the other ones I have done. I usually sit down in a classroom and just take notes on what’s happening but this teacher, Mrs. Wineski, had me involved the second I walked in. I could have observed a 3rd grade music class but I picked kindergarten instead because I was more curious on how the younger kids reacted when there is music involved. I feel like the younger they are the more excited they get for things. The kids in this specific class have music once a week on Wednesday mornings. This classroom had 16 children in it, which I think is a good amount so everyone gets enough equal attention. The larger the class the less they get noticed and have one on one time with the teacher. Music in this school has changed drastically since I went there. Starting with the fact there is no actual classroom for music anymore it is now â€Å"traveling music. † They said there weren’t enough classrooms for music to have its own, so now the teacher has her cart she wheels around all day. On the cart she has her keyboard, computer, work sheets, posters she temporarily hangs up with magnets and instruments the kids use like; tambourines, drum sticks, and triangles. On the computer she had music videos the kids get to watch if they had time at the end of class and if they were well behaved. To be honest I don’t think I am a fan of this concept. The kids don’t get a change of scenery and they’re stuck in the same classroom all day, especially since they’re so young. The room they are in now though, is very colorful and alive. It is separated into sections and in each one they do different activities through out their day. As soon as she arrives in the classroom each time she told me that she starts the morning by singing each of their names and have them sing back to her. She does this as an exercise to get them worked up and catches all their attention. The lesson I was able to witness was adorable. She had a very high pitch voice, very hyper, and had the personality of a kid. The theme for this entire month is Halloween and she says each time they meet they do something different related to the season/holiday coming up. When I was there they played dress up in a box of costumes she brought in. They were set up in groups of 4 but they had the opportunity to pick which they wanted to be. She had witches and warlocks, Disney princesses, animals, and super heroes. After they got dressed they sang songs and danced in a circle as a whole group, then they separated into what costumes they were in and made up a little skit using drum sticks. All the kids participated and once the skit was made up they had to put on a little show. By the time each group presented all the kids basically forgot what they made up and just banged the sticks on the ground and giggled at each other. Mrs. Wineski never put them down for forgetting, she clapped and enjoyed each one equally with a warm smile. The goal of this activity was to use their imaginations and to have an open mind. Also, they used group work so working with one another is a big step in developmental learning. The students loved every second of music class. Of course because they are so young at times they got side tracked but over the entire lesson Mrs. Wineski did with them she captured all of their attention. I lucked out with observing a tame group of kids. No one had to be put in â€Å"time out† or talked to. The younger the kids I always thought it was easier to get them interested and into the lesson but Mrs. Wineski showed that it was harder than that. She had the entire class time scheduled out and planned far in advance. She has only been a teacher for 4 years so, she said everything she does she is still an experiment; how confortable she feels doing it and how the kids enjoy it. When I said that as soon as I met Mrs. Wineski she had me participating I wasn’t kidding. We both wore witches hats and she had me playing with them. I gained some useful knowledge that will come with me when I pursue becoming a teacher. First would be patience, and a whole lot of it. She was cool, calm, and collect. Many teachers I’ve come across aren’t like that. They seem almost uncaring and just there for a paycheck. Those are the teachers who should not have a job like this because teaching is much more than that. You impact the children’s lives and help shape who they grow up to be. I also learned that the crazier the lesson is the more fun they will have. Don’t stick to basic and boring and don’t be afraid to try something different. So, I went in looking to just compare and contrast music vs. a regular kindergarten day and I ended up completely doing something different. I saw how music is really important for all kids. They need it in their life for many reasons. I observed how the teacher interacts with the students and how much fun teaching could be if you love your job.

International Economics Essay Example | Topics and Well Written Essays - 1250 words

International Economics - Essay Example Social and cultural characteristics also impact the production techniques since the stock of trust among Indians facilitates the maintenance of socially held knowledge that, in turn, allows the social organization of the economic activity of carpet making. In India, values, ideas, human relationships and knowledge of carpet making are transmitted from one generation to another as part of the robust Indian culture. Conversely, the carpet production process in the US is characterized by mechanization of most processes. 2This allows for large-scale production as a single carpet producer uses massive amounts of fiber each day. Resource endowment, in the US, includes massive amounts of financial and intellectual capital, high entrepreneurship and robust technologies. Additionally, income levels are relatively large, enabling entrepreneurship and the establishment of huge companies that churn out massive quantities of carpets throughout the year. Essentially, resource endowment, in the US, including land, capital, labor and entrepreneurship, is quite prosperous. Social and cultural characteristics of the US that impact carpet production include an appreciation for formal training and education, which results in highly skilled and specialized human capital essential for the production process. Question 2 Carpet production is one of India’s oldest industries, dating back to the Mughal Dynasty. However, carpet production centers on the individualistic skills and knowledge of a weaver rather than collective appreciation of carpet making acquired through formal education and training. Due to immediacy to furnishing product, several carpet manufacturing centers have developed across the country. Carpets produced in India are mostly exported since the Indian market for carpets is quite small as a result of the low purchasing capacity of local players. Presently, India’s carpet export is worth Rs.2600 crores while the local market size is approximately Rs.200 c rores. 3The industry has high growth potential as exports increased by 42.23% between 2004 and 2007. 4However, the industry is marred by challenges such as poor market channels, resulting in ignorance within the Indian market. 5On the other hand, the carpet industry in the US is highly developed. The industry shipped 1.969 billion square yards of carpet, in 2003; this was worth approximately $12 billion. Carpet shipments increased to 2.3 billion yards in 2004, demonstrating the massive potential inherent in the US carpet production industry. Presently, the US meets at least 45% of the world’s carpet needs. 6The US carpet industry is characterized by innovations and technological advances that allow for large-scale production of highly-priced goods. Technological progress is one of the primary reasons behind massive growth in the US carpet industry. The US carpet industry is highly organized, allowing for sufficient knowledge in the domestic market. 7 As a consequence, the US effectively meets at least 90% of its domestic carpet needs. Question 3 Latent demand for carpets in the USA pushes the country to become a primary importer of carpet despite being an efficient carpet producer. This is because carpet production, in the US, has been unable to offer complete satisfaction to all domestic needs and wants, resulting in a gap between what is available and desirable. The local US market has a high desirability for hand woven, Indian carpets, which are considered stylish and sophisticated. Conversely,

Project on leaflet ordering within the workplace Essay

Project on leaflet ordering within the workplace - Essay Example These provide customers with comprehensive information regarding tenancy, ownership, entitlements, neighbourhood plans, safety, security and all supportive systems forming part of the housing scheme. Thesis Statement: The purpose of this paper is to investigate the process and effectiveness of changes implemented in the ordering and display of customer information leaflets at KHT’s six offices across the borough. When undertaking changes in any part of an organization’s functioning, the individual, team and organizational levels need to be taken into account. Effectively addressing the issues that require change through relevant management processes, leads to the required results. It is essential to consider beneficial outcomes for customers, cost-effectiveness for the organization, have both vision and pragmatism, â€Å"pay attention to global and local issues, and encourage individual accountability at the same time as enabling team work† (Cameron and Green 2004, p.3). Effective management of change provides competitive advantage, improves enterprise and helps to consistently meet organizational goals. Managing change is a â€Å"complex, dynamic and challenging process† (Paton and McCalman 2000, p.2) involving assessment of the situation, planning tactical, strategic processes, and implementing operational changes. The work profile includes travelling to each of the Knowsley Housing Trust (KHT) offices on a weekly basis, to check whether all leaflets pertaining to KHT and its various benefit schemes, support and services are displayed correctly. A short notice inspection revealed that some of the leaflets displayed were out of date. Secondly, it was found that staff members were not willing to take responsibility towards stock taking and ordering fresh stocks according to the requirement. This resulted in the ordering of excessive numbers of the information leaflets, causing expensive wastage. A

Consequences of Immoral Behaviors Assignment Example | Topics and Well Written Essays - 500 words

Consequences of Immoral Behaviors - Assignment Example According to Donner (2007), American Psychological Association ethical principles of psychologists and code of conduct requires all information given to a psychologist in the cause of his or her professional work be kept in private. As a professional, a forensic psychologist should be able to protect information provided in a professional relationship. It is wrong for a psychologist to allow private information relayed to them to be disclosed to a legal system. A forensic psychologist would have to weigh their decision and consider whether this would harm the prisoner. The inmate gives much trust to the psychologist by admitting to him that he took the blame for his son’s assault to a 17 year old friend. Under no circumstances should the psychologist give this information to a third party. The plaintiff did not protest against the father’s decision to own up his son’s mistake. The process of decision-making is to a large extent based on ethics. A psychologist sho uld be aware of ethics related concerns in a given situation. An informed decision can be arrived at only if there is a clear understanding of these concerns. The psychologist should be able to determine ethics based priorities. Self-honesty is fundamental for the purposes of decision-making. Priorities should be determined on the best interest of the inmate, professional code of ethics and the benefit to society. For example, in a case Tarasoff v. Regents of the University of California, the court held that the protection privileges ends where public peril begins (Buckner & Firestone, 2000). Period of deliberation also comes in hand when dealing with the question on ethics and confidentiality since they are not easily answered. A forensic psychologist should be able to make any ethical decision and take responsibility for that choice. There may be consequences likely to occur as a result of the verdict taken. In this case, the person who committed

Movie Review Essay Example | Topics and Well Written Essays - 500 words - 3

Movie Review - Essay Example Geiger’s death is followed by a trail of other people’s deaths in connection with Carmen’s scandalous pictures. Taylor, the general’s chauffeur is found dead. Marlowe figures out that Taylor was in love with Carmen. He also thinks that Taylor might be responsible for Geiger’s death due to the naughty pictures. However, the blackmail trail continues where Marlowe thinks of a possible solution without success. Initially, the general thought that his Irish friend, Reagan had solved the problem. Reagan had escaped with another man’s wife. The events in the film unfold where Marlowe and Vivian Sternwood fall in love. Towards the end, Marlowe realizes that Reagan had been killed. Marlowe knows about it when Carmen points a gun at him and attempts to kill him. Carmen had killed Reagan from the beginning of the film. Marlowe gets the wind of it and together with Vivian decides not to tell their father because it could break his heart. Marlowe allows Vivian to go as long as she helps Carmen alleviate her insanity. The thoughts of death as ‘the big sleep’ revolve around the mind of Marlowe towards the end of the film. Just like the film â€Å"The Big Sleep†, â€Å"The Long Goodbye† justifies that killing can cause people to go forever. â€Å"The Long Goodbye† implies one cannot play around with death as it makes people disappear from the face of the earth forever. In this film, Terry Lennox runs to Marlowe’s home to seek. Lennox tells Marlowe to drive him to Mexico but does not realize that Lennox is wanted for the murder of his wife. Marlowe gets arrested as an accomplice of the murderer and released after three days. Marlowe wins his freedom after Lennox commits suicide in a hotel. Sometimes later, Marlowe is hired by Eileen Wade to find her missing husband. The missing husband had disappeared several times but ended up in rehab institutions due to his drinking problem. However, Eileen has not been able to find