Author: Sweety Sharma
Introduction:
Samsung electronics was first founded on January 13,1969 in suwon,south korea.Their first products were black-and-white televisions. During the 1970s the company began to export home electronics products overseas. At that time Samsung was already a major manufacturer in Korea, and it had acquired a 50 percent stake in Korea Semiconductor. The description above is provided by Samsung Electronics. Jay Y. Lee is the Executive Chairman of Samsung Electronics.The CEO of 2023 is Han Jong-hee.
Objective:To calculate beta of Samsung Electronics Co.,Ltd and see its significance
Literature Review:
Samsung Electronics Co. Ltd. more than doubled its profits in 1998, thanks to a rebounding market for semiconductors, a restructuring program, and a diversification strategy. Net profits for fiscal year ended December 31, 1998, for the flagship of South Korea’s 2nd largest chaebol conglomerate more than tripled. The company forecasts sales will increase by 10% in 1999, and analysts predict profits could take off, based on strong sales of personal computers. In 1996 the world’s largest memorychip manufacturer-the electronics arm of Samsung Group-saw the price of its 16-Mbit dynamic random-access memory (DRAM) chip fall to $6 from $48 in 1995. Because chips account for more than one-third of its sales, the Seoul-headquartered manufacturer’s profits dropped to $200 million in 1996 from $2.9 billion a year earlier. AT A GLANCE Samsung Electronics Co. Ltd. IW1000 Rank: 77. Headquarters: Seoul, South Korea. Chairman: Kun-Hee Lee. Number of Employees: 60,000.1998 Revenues: $18.9 billion. Products: Semiconductors, nonmemory logic chips, liquid-crystal displays, consumer electronics and appliances. Stock Exchange/Ticker Symbol: Trades in Seoul as SEC.
Samsung Electronics Co. has grown into the largest manufacturer in Korea, with a sales turnover of $23.9 billion in 1997, and accounts for 32.8% of the total output of the electronics industry. This paper investigates Samsung’s growth strategies, which enabled the company to catch up in technology and product development. Specifically, it focuses on Samsung’s strategic choices with respect to product development, technology, manufacturing scale and scope and export marketing. It also analyzes Samsung’s strategy in building the competitive advantages required to cope with the unfriendly market environment dominated by world-class US and Japanese electronics corporations. The pattern underlying all of Samsung’s strategic choices is discussed. For both economic and strategic reasons, Korean economic planners in the 1970s advocated the advantages of developing a domestic electronics industry.
Economically, development of the industry was considered highly preferable because of its potentially high value-added, linkage effects (economic and technological), employment potential, and a fast-growing world market with high income elasticity. Strategically, the electronics industry was believed to be particularly suitable for a country like Korea with poor natural endowments but with abundant highly skilled human resources (KIST, 1976). In addition, the industry showed such characteristics as labor intensity,l knowledge intensity, low input requirements of energy and raw materials, and the increasing importance of electronic equipment in the emerging information industry.
Data Collection:
THE DATA FOR NIFTY AND EQUITY OF Samsung Electronic Co..Ltd HAS BEEN COLLECTED FROM YAHOO FINANCE.COM FROM 1ST NOVEMBER,2022 TO 31ST OCTOBER ,2023.DATA WAS MANUPILATED TO CALCULATE THE FRIDAY CLOSING PRICE.
Data Analysis
Samsung Electronic Co..Ltd Share= 0.0044 + 0.0573 Nifty
n= 48, R square= 0.0032, F = 0.1514
Above equation shows the relationship of the company ‘Samsung Electronic Co..Ltd’ with ‘Nifty.’ t stat for b is 0.389, p value is 0.6989, which is more than 0.05 so, b equal to 0. Meaning Nifty does not impact ‘Samsung Electronic Co..Ltd’.
R^2 = 0.0032 Meaning 0% of ‘Samsung Electronic Co..Ltd by’ share is explained by Nifty and 100% depends upon other things like fundamentals.
F = 0.1514 And p = 0.00305 which is less than 0.05, hence, the model is statistically not significant at the 5% significance level, further Nifty does not affect the share significantly.
Conclusion
The results indicate that (Beta) i.e. b = 0.0573 which is less than 1; so it has correlated relationship with the market.
References:
Royal, W. (1999). Samsung electronics co. ltd. Industry Week, 248(11), 42. Retrieved from https://www.proquest.com/trade-journals/samsung-electronics-co-ltd/docview/219742513/se-2
Yu, S. (1999). The growth pattern of samsung electronics: A strategy perspective. International Studies of Management & Organization, 28(4), 57-72. Retrieved from https://www.proquest.com/scholarly-journals/growth-pattern-samsung-electronics-strategy/docview/224065380/se-2