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[Best output 1]_4팀_종합상사_첫째_주
 

[Best output 1]_4팀_종합상사_첫째_주

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    [Best output 1]_4팀_종합상사_첫째_주 [Best output 1]_4팀_종합상사_첫째_주 Presentation Transcript

    • General Trading Company
      Samsung C&T
      2010.03.04.Thu
      Team 4
      Suh, Jinwon
      Lee, jiwoong
      Lee, jungloke
      Choi, myungwon
    • agenda
      General Trading Companies
      Samsung C&T Analysis
      Vision and Future Strategy
    • agenda
      General Trading Companies
      Samsung C&T Analysis
      Vision and Future Strategy
    • Beginning of GTC
      The government encouraged the formation of Korean GTC to focus on exporting products.
      Japan
      • Early General Trading Companies were established in 1940’s inJapan (Mitsubish, Mitsui etc)
      • In the beginning, GTCS mainly exported their family companies’ products and imported raw materials
      to manufacturethem
      Export Products
      G
      T
      C
      Foreign Companies
      Family Companies
      Foreign Customers
      Import Materials
      Korea
      • In 1970’s, Korea Government encouraged establishment of GTC to promote exports
      • Main function of Korean GTCs was exports, and they didn’t export only their family companies’
      products, but also other companies’ products
      Export Products
      G
      T
      C
      Foreign Companies
      Family Companies
      Foreign Customers
      Other Companies
      Import Materials
    • Main Function of GTC
      Finance, Overseas Investment, Information, Organizer, Converter are GTC’s
      main functions.
      Organizer
      Finance
      General
      Trading
      Company
      • GTC buys products from
      companies and pays them
      cash before selling products.
      • It can provide liquidity to
      customer companies.
      • GTC can organize and lead
      consortium with various
      companies for huge projects
      • GTC’s vast information and various experiences makes this possible.
      Converter
      Information
      • They invest on small but
      promising companies
      • They help small companies
      by importing, exporting,
      financing for small
      companies
      Overseas Investment
      • They can make
      advantageous deals by
      using information from their
      international network
      • They build overseas
      factories and invest on
      foreign assets directly or for
      companies which don’t
      know about foreign market.
    • Change of GTC’s BM
      GTC is diversifying its business model, because conventional trading has become less profitable.
      Business model of GTC
      Past
      Profit from trading
      Export Products
      G
      T
      C
      Family Companies
      Foreign Companies
      Import Products
      Foreign Customers
      Other Companies
      Market Change
      Manufacturers including family companies started to export directly.
      Conventional BM has been less profitable.
      Now
      Business Diversification
      Trading
      Project
      Organizer
      Invest on
      Natural
      Resources
      Invest & Help
      Small
      Business
      Financing
    • agenda
      General Trading Companies
      Samsung C&T Analysis
      Vision and Future Strategy
    • History of Samsung C&T
      Samsung GTC has a long and illustrious history that represents the history of the import/export business of Korea.
      Samsung GTC is formed as a legal entity as of 1952
      First focuses on the food and textile industry
      1950
      Starts increasing its operations to heavy chemical industry
      Samsung focuses all its export activities to Samsung GTC
      1960
      Strengthens its presence in the textile industry
      The oil shock led to an even more aggressive market developing tactics
      Develops an import and resources development branch
      1970
      Despite overall weak economy, Samsung GTC grew an average 31.8% over 5 years
      Focused on electronics and heavy industry chemicals
      Started developing long term goals and networks
      1980
      Samsung GTC merged with Samsung Construction to become Samsung C&T
      Focuses on high margin products
      Overhauls portfolio to strengthen resource and project development
      1990
      Reorganized to increase synergy between construction and trading
      Focused on finance, marketing, IT, risk management, M&A, and distribution
      2000
    • What Samsung C&T is doing
      Samsung C&T’s business area covers diverse fields such as energy, industrial materials, natural resources. Atfirst glance each unit seems unrelated to each other.
      Energy & Environment
      Business Area
      • Bio diesel palm plantation
      • Solar power plant
      • Transportation facilities
      Industrial materials
      • Trading of stainless
      • Storing of chemicals
      • Trading materials for semiconductor
      • Investing on fashion companies
      Natural resources
      • LNG trading
      • Mineral resources development
    • Function- Finance
      Samsung C&T’s businesses can be divided by function into four sections; finance, investment, marketing and logistics.
      Business process
      Finance
      Money lending
      Raw materials
      Raw materials
      company
      Manufacturing company
      Large sized
      company
      Investment
      Marketing
      Cash
      Product
      Logistics
      Product
      Cash
      Bond
      Samsung
      C&T
      • Samsung C&T plays a role that prevents insolvency by paper profits of small sized company.
      • They act as a clearinghouse that guarantees performance by providing cash against bonds.
    • Function - Investment
      Samsung C&T invests in companies or business areas considered promising.
      Business process
      Finance
      Suitable
      companies
      Investment
      Construction company
      Marketing
      Money lending
      Equity
      Logistics
      Promising
      Company
      Samsung
      C&T
      Electronic
      company
      Investment
      - money
      • Operation
      • Organizing
      suitable companies
      Equipment
      company
      .
      .
      .
    • Function- Marketing
      Samsung C&T buys the right to sell overseas from companies that lack an overseas sale network and utilize their own connections to provide access to foreign markets.
      Business process
      Finance
      Foreign
      Market
      Investment
      China
      Marketing
      Right to
      Sell overseas
      Logistics
      Manufacturing
      company
      Samsung
      C&T
      United
      states
      Money
      Europe
      .
      .
      .
    • Function - Logistics
      Samsung C&T transports products, materials.
      Business process
      Finance
      Investment
      Money
      Money
      Marketing
      Buyer
      in China
      Samsung
      C&T
      Seller
      in Japan
      Logistics
      Products,
      Materials
      Products,
      Materials
      • Very simple business process
      • Less than 5%
    • Corporate Vision
      Although Samsung C&T is currently doing well, it needs a new vision that will sustain profits.
      What vision does Samsung C&T need to drive growth in the future?
    • Corporate Vision
      The corporate vision embodies the reason for the existence of the firm given shape and direction by the taken strategy.
      Overall goal
      of organization
      The shape of
      achieving the vision
      The “how to”
      achieve the objective
      Core Competency + Analysis of External Factors
      = Our Corporate Strategy
    • Value Chain – Finding R&C
      This value chain analyzes the activities of the trade business to capture the
      resources and capabilities of Samsung C&T.
      Firm Infrastructure
      Supporting
      Activities
      Human Resource Management
      MARGIN
      Technological Development
      Procurement
      Outbound logistics
      Productselection
      After
      service
      Contract
      • End-users & oversea companies
      • Search for suppliers
      • Procure right to sell
      Primary
      Activities
      MARGIN
      • Marketing &Sales
      • Network
      • Human Resources
      • Accumulated trading experience
      • Trading experience
      • Financial power
      • Family of biz. “Samsung”
      • Biz. Alliance
      • Brand
      • Logistics
      R&C
    • Value Chain – Finding R&C
      Another value chain describes each stage in Samsung C&T’s recent renewable energy project in Ontario that indicates other R&C.
      Firm Infrastructure
      Supporting
      Activities
      Human Resource Management
      MARGIN
      Technological Development
      Procurement
      Organizing
      (consortium
      /partnership)
      Bidding
      Construction
      Operation
      Search
      Related parties:
      • suppliers,
      • end-user
      • Wind, solar panel cluster
      • equipment
      Primary
      Activities
      MARGIN
      • Financing
      • Investing
      • Network
      • Versatility
      • Human Resource
      • Project development
      • Experience
      • Financial power
      • Family of biz. “Samsung”
      • Biz. alliance
      • Brand
      • Accumulated experience
      • Relationship with govern.
      • Logistics
      • Equipment procurement
      • Financial stability
      R&C
    • V.R.I.O – Finding core competency
      The R&C of Samsung C&T is further developed into a core competency by the VRIO analysis
    • Core Competency - Network
      Samsung C&T’s core competency include its powerful and wide network of global contacts.
      Global Network (& Information)
      Overview
      Daewoo
      International
      50 offices in
      38 countries
      93 offices in
      42 countries
      SK networks
      72 offices in
      22 countries
    • Core Competency – Human resource, Accumulated experience
      Samsung’s human resources and accumulated experience also provides competitive advantage over rivals.
      Accumulated Experience
      Human Resource
      Bought mining rights from Mexico of 73M barrels of oil
      2008 JAN
      Samsung’s special Future strategy group composed of foreign experts
      • Established early in 1997
      • Preparing for Globalization
      • 200 foreign experts in Samsung who graduated from Top MBA schools
      2009 DEC
      World’s Largest Wind, Solar Panel Cluster in Ontario
      Ability-oriented system
      • Samsung has strong merit system than any other companies.
      • Competitive employees show great commitment to Samsung
      2010 FEB
      First Asian company to construct Solar Panel Plant in California
    • Core Competency – Brand, Family of businesses
      Samsung’s core competency includes it’s powerful brand and the aggregate family of businesses.
      Brand
      Family of Businesses
      Construction company
      Samsung
      C&T
      Electronic
      company
      Equipment
      company
      Samsung ranks 19th in the world.
      Samsung does everything.
      http://www.interbrand.com/best_global_brands.aspx
    • External Factors Analysis
      The external factors analysis indicates that GTC should find business opportunities in Environmental & Green energy.
      External factors change
      Implications
      Conventional
      Trade business
      • Strong Environmental
      Regulations
      • Tension mounts between US and China
      • Global Recession
      • Polarization
      • Rise of BRICS economy
      • Influenced by
      Economy
      • Too much fluctuations
      • Unstable
      Political Factor
      Economic Factor
      Environment
      &
      Green
      Energy
      Business
      • An Aging Society
      • Increasing awareness of the Environment
      • Well-being Trend
      • Competition
      On Developing
      Green energy
      Technology
      • High growth rate
      • Stable
      Social Factor
      Technology Factor
    • agenda
      General Trading Companies
      Samsung C&T Analysis
      Vision and Future Strategy
    • Internal analysis
      External analysis
      Vision
      The analysis of Samsung C&T shows its need to exploit business opportunities that can better utilize their core competency.
      Samsung C&T’s core competence
      is its unique
      infrastructure know-how
      Trade Biz
      Less attractive
      Red ocean
      VISION
      • Low growth rate
      • Not stable (affected by exchange rate)
      • Direct exporting is increasing
      • Network
      • Human Resource
      • Accumulated experience
      Find new STAR business!
      • Brand
      • The push for alternative renewable energy in developed countries
      • Family of businesses
    • Vision
      By strengthening its core competence, Samsung C&T Corporation will strive to become the world’s best project developer.
      Short- and mid- term
      actively engages in business of energy/
      environment.
      VISION
      ‘Global Value
      Creating Company’
      New VISION
      The World’s Best Project Developer
      Long-term
      provides optimal business solutions
      to customers
      (in many forms)
      • Too Vague:
      - core competencies are not reflected on vision
      • Not Informative:
      - Vague on what business we are in.
    • THANK YOU
      FOR LISTENING