Why Company's Business Plan Fail? Essay

2040 words - 8 pages

The SM5- Series.On March 1, 1938, the late founding Chairman Byung-Chul Lee started a business with the name of "Samsung" in Taegu with 30,000 won in capital. In the early days of Samsung's business, the company exported dried fish and vegetables and fruits produced around Korea to Manchuria and Beijing. In November 1948, the late founding Chairman Lee moved Samsung's office to Seoul and founded the Samsung Corporation. This marked the beginning of Samsung's entry into full-scale international trade.After Korea's independence from Japan in 1945, the Korean economy became unstable due to political and social unrest. The Korean War- started in June 1950- also decimated the economy. Samsung Corporation, which had been growing steadily, lost all its assets during the war. In January 1951, management moved the company to Pusan- the main port city in the southern tip of the Korean Peninsula-. Samsung began the first step of its grand idea to rebuild Korea's economy by entering the manufacturing industry. It began substituting imported goods with domestically produced products through the establishment of Cheil Sugar Co.- currently Cheil Jedang, now an independent company from Samsung- in 1953.In 1969, Samsung Company established Samsung Electronics Co., Ltd.; a company that would help to develop Korea's electronics industry into a worldwide competitor. The late founding Chairman Lee determined that electronics was exactly the type of industry Korea needed at that economics stage. Samsung also established Korea Manufacturing Co. - currently Samsung Fine Chemicals Co., Ltd.-. Samsung sought the expansion of several key industries and started to gain as a corporate leader in Korea.The 1970s marked the period when Samsung laid the foundations for several future strategic industries: heavy, chemical, and petrochemical. In August 1973, Samsung's "The second five years management plan" included intensive investment to the heavy chemical industry as well as the establishment of a new shipbuilding company. As a result, it established several other companies: Samsung Heavy Industries Company. Ltd.- 1974, Samsung Shipbuilding Company- 1977, when Samsung acquired Daesung Heavy Industry Company-, and Samsung Precision Company- 1977, now Samsung Aerospace Industry, Ltd.-. From the early 1970s, Samsung Electronics produced electronic home appliances such as TV's and VCRs, and began to enter the international market. In 1974, with the taking of over 50 percent of Korea Semiconductor Co., Samsung Electronics began its reign as a leader in the semiconductor field.In 1978, Samsung Semiconductor split from Samsung Electronics to become a separate entity. Until 1983, Samsung produced semiconductors for the domestic market. With the successful development of a 64K DRAM- Dynamic Random Access Memory- VLSI chip in December 1983, Samsung took a world leading position by introducing many new semiconductor products. Samsung Precision Company- established in 1977- laid the...

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