[Best output 1]_4팀_종합상사_첫째_주


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[Best output 1]_4팀_종합상사_첫째_주

  1. 1. General Trading Company<br />Samsung C&T<br />2010.03.04.Thu<br />Team 4<br />Suh, Jinwon<br />Lee, jiwoong<br />Lee, jungloke<br />Choi, myungwon<br />
  2. 2. agenda<br />General Trading Companies<br />Samsung C&T Analysis<br />Vision and Future Strategy<br />
  3. 3. agenda<br />General Trading Companies<br />Samsung C&T Analysis<br />Vision and Future Strategy<br />
  4. 4. Beginning of GTC<br />The government encouraged the formation of Korean GTC to focus on exporting products.<br />Japan<br /><ul><li> Early General Trading Companies were established in 1940’s inJapan (Mitsubish, Mitsui etc)
  5. 5. In the beginning, GTCS mainly exported their family companies’ products and imported raw materials </li></ul>to manufacturethem <br /> Export Products<br />G<br />T<br />C<br />Foreign Companies<br />Family Companies<br />Foreign Customers<br />Import Materials<br />Korea<br /><ul><li> In 1970’s, Korea Government encouraged establishment of GTC to promote exports
  6. 6. Main function of Korean GTCs was exports, and they didn’t export only their family companies’</li></ul> products, but also other companies’ products<br /> Export Products<br />G<br />T<br />C<br />Foreign Companies<br />Family Companies<br />Foreign Customers<br />Other Companies<br />Import Materials<br />
  7. 7. Main Function of GTC<br />Finance, Overseas Investment, Information, Organizer, Converter are GTC’s<br />main functions.<br />Organizer<br />Finance<br />General<br />Trading<br />Company<br /><ul><li> GTC buys products from</li></ul> companies and pays them<br /> cash before selling products.<br /><ul><li> It can provide liquidity to </li></ul> customer companies.<br /><ul><li> GTC can organize and lead </li></ul> consortium with various<br /> companies for huge projects<br /><ul><li>GTC’s vast information and various experiences makes this possible.</li></ul>Converter<br />Information<br /><ul><li> They invest on small but </li></ul> promising companies<br /><ul><li> They help small companies</li></ul> by importing, exporting,<br /> financing for small<br /> companies<br />Overseas Investment<br /><ul><li> They can make </li></ul> advantageous deals by <br />using information from their <br /> international network<br /><ul><li> They build overseas </li></ul> factories and invest on <br /> foreign assets directly or for<br /> companies which don’t <br /> know about foreign market.<br />
  8. 8. Change of GTC’s BM<br />GTC is diversifying its business model, because conventional trading has become less profitable.<br />Business model of GTC<br />Past<br />Profit from trading<br /> Export Products<br />G<br />T<br />C<br />Family Companies<br />Foreign Companies<br />Import Products<br />Foreign Customers<br />Other Companies<br />Market Change<br />Manufacturers including family companies started to export directly.<br />Conventional BM has been less profitable.<br />Now<br />Business Diversification<br />Trading<br />Project<br />Organizer<br />Invest on<br />Natural<br />Resources<br />Invest & Help<br />Small <br />Business<br />Financing<br />
  9. 9. agenda<br />General Trading Companies<br />Samsung C&T Analysis<br />Vision and Future Strategy<br />
  10. 10. History of Samsung C&T<br />Samsung GTC has a long and illustrious history that represents the history of the import/export business of Korea.<br />Samsung GTC is formed as a legal entity as of 1952<br />First focuses on the food and textile industry<br />1950<br />Starts increasing its operations to heavy chemical industry<br />Samsung focuses all its export activities to Samsung GTC<br />1960<br />Strengthens its presence in the textile industry<br />The oil shock led to an even more aggressive market developing tactics<br />Develops an import and resources development branch<br />1970<br />Despite overall weak economy, Samsung GTC grew an average 31.8% over 5 years<br />Focused on electronics and heavy industry chemicals<br />Started developing long term goals and networks<br />1980<br />Samsung GTC merged with Samsung Construction to become Samsung C&T<br />Focuses on high margin products<br />Overhauls portfolio to strengthen resource and project development <br />1990<br />Reorganized to increase synergy between construction and trading<br />Focused on finance, marketing, IT, risk management, M&A, and distribution<br />2000<br />
  11. 11. What Samsung C&T is doing <br />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.<br />Energy & Environment<br />Business Area<br /><ul><li> Bio diesel palm plantation
  12. 12. Solar power plant
  13. 13. Transportation facilities</li></ul>Industrial materials<br /><ul><li>Trading of stainless
  14. 14. Storing of chemicals
  15. 15. Trading materials for semiconductor
  16. 16. Investing on fashion companies</li></ul>Natural resources<br /><ul><li>LNG trading
  17. 17. Mineral resources development</li></li></ul><li>Function- Finance<br />Samsung C&T’s businesses can be divided by function into four sections; finance, investment, marketing and logistics. <br />Business process<br />Finance<br />Money lending<br />Raw materials<br />Raw materials<br />company<br />Manufacturing company<br />Large sized<br />company<br />Investment<br />Marketing<br />Cash<br />Product<br />Logistics<br />Product<br />Cash<br /> Bond<br />Samsung<br />C&T<br /><ul><li>Samsung C&T plays a role that prevents insolvency by paper profits of small sized company.
  18. 18. They act as a clearinghouse that guarantees performance by providing cash against bonds.</li></li></ul><li>Function - Investment<br />Samsung C&T invests in companies or business areas considered promising.<br />Business process<br />Finance<br />Suitable <br />companies<br />Investment<br />Construction company<br />Marketing<br />Money lending<br />Equity<br />Logistics<br />Promising <br />Company<br />Samsung<br />C&T<br />Electronic<br />company<br />Investment<br />- money<br /><ul><li> Operation
  19. 19. Organizing </li></ul> suitable companies<br />Equipment<br />company<br />.<br />.<br />.<br />
  20. 20. Function- Marketing<br />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.<br />Business process<br />Finance<br />Foreign <br />Market<br />Investment<br />China<br />Marketing<br /> Right to<br />Sell overseas<br />Logistics<br />Manufacturing<br />company<br />Samsung<br />C&T<br />United<br />states<br />Money<br />Europe<br />.<br />.<br />.<br />
  21. 21. Function - Logistics<br />Samsung C&T transports products, materials.<br />Business process<br />Finance<br />Investment<br />Money<br />Money<br />Marketing<br />Buyer <br />in China<br />Samsung<br />C&T<br />Seller <br />in Japan<br />Logistics<br />Products,<br />Materials<br />Products,<br />Materials<br /><ul><li>Very simple business process
  22. 22. Less than 5% </li></li></ul><li>Corporate Vision<br />Although Samsung C&T is currently doing well, it needs a new vision that will sustain profits.<br />What vision does Samsung C&T need to drive growth in the future?<br />
  23. 23. Corporate Vision<br />The corporate vision embodies the reason for the existence of the firm given shape and direction by the taken strategy.<br />Overall goal <br />of organization<br />The shape of <br />achieving the vision<br />The “how to” <br />achieve the objective<br />Core Competency + Analysis of External Factors<br />= Our Corporate Strategy <br />
  24. 24. Value Chain – Finding R&C<br />This value chain analyzes the activities of the trade business to capture the <br />resources and capabilities of Samsung C&T.<br />Firm Infrastructure<br />Supporting<br />Activities<br />Human Resource Management<br />MARGIN<br />Technological Development<br />Procurement<br />Outbound logistics<br />Productselection <br />After<br />service<br />Contract<br /><ul><li> End-users & oversea companies
  25. 25. Search for suppliers
  26. 26. Procure right to sell</li></ul>Primary<br />Activities<br />MARGIN<br /><ul><li> Marketing &Sales
  27. 27. Network
  28. 28. Human Resources
  29. 29. Accumulated trading experience
  30. 30. Trading experience
  31. 31. Financial power
  32. 32. Family of biz. “Samsung”
  33. 33. Biz. Alliance
  34. 34. Brand
  35. 35. Logistics</li></ul>R&C<br />
  36. 36. Value Chain – Finding R&C<br />Another value chain describes each stage in Samsung C&T’s recent renewable energy project in Ontario that indicates other R&C.<br />Firm Infrastructure<br />Supporting<br />Activities<br />Human Resource Management<br />MARGIN<br />Technological Development<br />Procurement<br />Organizing<br />(consortium<br />/partnership)<br />Bidding<br />Construction<br />Operation<br />Search<br />Related parties:<br /><ul><li>suppliers,
  37. 37. end-user
  38. 38. Wind, solar panel cluster
  39. 39. equipment</li></ul>Primary<br />Activities<br />MARGIN<br /><ul><li> Financing
  40. 40. Investing
  41. 41. Network
  42. 42. Versatility
  43. 43. Human Resource
  44. 44. Project development
  45. 45. Experience
  46. 46. Financial power
  47. 47. Family of biz. “Samsung”
  48. 48. Biz. alliance
  49. 49. Brand
  50. 50. Accumulated experience
  51. 51. Relationship with govern.
  52. 52. Logistics
  53. 53. Equipment procurement
  54. 54. Financial stability</li></ul>R&C<br />
  55. 55. V.R.I.O – Finding core competency<br />The R&C of Samsung C&T is further developed into a core competency by the VRIO analysis <br />
  56. 56. Core Competency - Network<br />Samsung C&T’s core competency include its powerful and wide network of global contacts.<br />Global Network (& Information)<br />Overview<br />Daewoo<br />International<br />50 offices in<br />38 countries<br />93 offices in<br />42 countries<br />SK networks<br />72 offices in<br />22 countries<br />
  57. 57. Core Competency – Human resource, Accumulated experience<br />Samsung’s human resources and accumulated experience also provides competitive advantage over rivals. <br />Accumulated Experience<br />Human Resource<br />Bought mining rights from Mexico of 73M barrels of oil<br />2008 JAN<br />Samsung’s special Future strategy group composed of foreign experts<br /><ul><li> Established early in 1997
  58. 58. Preparing for Globalization
  59. 59. 200 foreign experts in Samsung who graduated from Top MBA schools</li></ul>2009 DEC<br />World’s Largest Wind, Solar Panel Cluster in Ontario<br />Ability-oriented system<br /><ul><li> Samsung has strong merit system than any other companies.
  60. 60. Competitive employees show great commitment to Samsung</li></ul>2010 FEB<br />First Asian company to construct Solar Panel Plant in California<br />
  61. 61. Core Competency – Brand, Family of businesses<br />Samsung’s core competency includes it’s powerful brand and the aggregate family of businesses.<br />Brand<br />Family of Businesses<br />Construction company<br />Samsung<br />C&T<br />Electronic<br />company<br />Equipment<br />company<br />Samsung ranks 19th in the world.<br />Samsung does everything.<br />http://www.interbrand.com/best_global_brands.aspx<br />
  62. 62. External Factors Analysis<br />The external factors analysis indicates that GTC should find business opportunities in Environmental & Green energy. <br />External factors change<br />Implications<br />Conventional<br />Trade business<br /><ul><li>Strong Environmental</li></ul>Regulations<br /><ul><li> Tension mounts between US and China
  63. 63. Global Recession
  64. 64. Polarization
  65. 65. Rise of BRICS economy
  66. 66. Influenced by</li></ul> Economy<br /><ul><li> Too much fluctuations
  67. 67. Unstable</li></ul>Political Factor<br />Economic Factor<br />Environment<br />&<br />Green<br /> Energy<br />Business<br /><ul><li>An Aging Society
  68. 68. Increasing awareness of the Environment
  69. 69. Well-being Trend
  70. 70. Competition</li></ul>On Developing <br />Green energy<br />Technology<br /><ul><li> High growth rate
  71. 71. Stable</li></ul>Social Factor<br />Technology Factor<br />
  72. 72. agenda<br />General Trading Companies<br />Samsung C&T Analysis<br />Vision and Future Strategy<br />
  73. 73. Internal analysis<br />External analysis<br />Vision<br />The analysis of Samsung C&T shows its need to exploit business opportunities that can better utilize their core competency.<br />Samsung C&T’s core competence <br />is its unique<br />infrastructure know-how<br />Trade Biz<br />Less attractive<br />Red ocean<br />VISION<br /><ul><li> Low growth rate
  74. 74. Not stable (affected by exchange rate)
  75. 75. Direct exporting is increasing
  76. 76. Network
  77. 77. Human Resource
  78. 78. Accumulated experience</li></ul>Find new STAR business!<br /><ul><li>Brand
  79. 79. The push for alternative renewable energy in developed countries
  80. 80. Family of businesses</li></li></ul><li>Vision<br />By strengthening its core competence, Samsung C&T Corporation will strive to become the world’s best project developer.<br />Short- and mid- term<br />actively engages in business of energy/<br />environment. <br />VISION<br />‘Global Value<br />Creating Company’<br />New VISION<br />The World’s Best Project Developer<br />Long-term<br />provides optimal business solutions<br />to customers<br />(in many forms)<br /><ul><li>Too Vague: </li></ul>- core competencies are not reflected on vision<br /><ul><li> Not Informative: </li></ul>- Vague on what business we are in.<br />
  81. 81. THANK YOU <br />FOR LISTENING<br />