Samsung, before becoming an electronic giant, was originally involved in trading business. Way back in 1938, the company is just composed of few employees and led by a young entrepreneur.
But with the passage of time and introduction of various developments, it had become more established and stable.
Samsung has been into diverse and complex roads in the industry and its humble beginning has been its foundation towards establishing a famous name in the electronic industry.
Another remarkable moment that takes a big part of its success is establishing companies all over the world. This helps Samsung to start competing in hardware and telecommunications industry.
Samsung is a multi-national company headquartered in Seoul, South Korea. This company compromises of various affiliated business and subsidiaries, and most of these are united under Samsung brand.
Aside from being a trading business, the company also diversified into different areas like textile, insurance, food processing, retail and securities. It was in the late 1960 when Samsung entered the industry of electronics. The company has significantly globalized its sets of activities and electronics, specifically semiconductors and mobile phones have been its primary source of income.
A sound financial strategy is also a reason behind the never ending success of Samsung. It is quite challenging for companies to manage and maintain their finances. However, Samsung sets up an example. This has managed to look over the company’s financial issues and concerns. It has adopted an exclusive an effective financial strategy to cope with the latest challenges that may pose effects on the financial status of the company. The financial strategy of Samsung covers a broad scope but this was given prior attention and monitoring to ensure that the company remains on the right financial track.
Several companies have failed because the adaptation of the right financial strategy was overlooked. The ideal financial strategy is crucial for the success and stability of a company or business. Financial strategy is defined as the practice adopted or undertaken by a company or firm in order to pursue and achieve economic objectives and goals. Financial strategy is also highly significant in establishing short-term goals needed in achieving long-term policies.
Samsung have observed tremendous success and this was achieved with the help of the best financial strategy the company had undertaken. It was last year when Samsung was recognized as the leading consumer electronics seller.
The best financial strategy of Samsung is the very reason why the company successfully hit billion dollar sale in the second quarter of 2013. Samsung had topped its rival and most of its competitors are in awe. Many individuals who are into electronics technology keep wondering how Samsung did it. The reason is that Samsung takes a unique and strategic financial strategy to boost sales and uplift company image.
Managing Finances Strategically
Samsung adheres to strategic management of its financial aspect. This simply means that the electronic giant manages the company’s financial resources so that it can achieve its objectives and maximize the value.
The financial strategy of Samsung involves comprehensive sequence of procedures that encompasses inclusive range of company’s expenses.
This also covers setting out financial goals and objectives, identifying resources, engaging into financial decisions, analyzing data and tracking variance between budgeted and actual results and determining the reasons behind this variance. The financial strategy of Samsung revolves around the right approaches to an ideal financial management with long-term horizon.
Companies and businesses can never achieve success if the best financial strategy is lacking. Samsung is one successful company that gives high value and recognition to a sound financial strategy. It is for this reason that the company has been attaining success and high returns and sales year by year. The company has managed their finances strategically and now they are reaping the fruits of their efforts.
Adopting the best financial strategy of Samsung has been the reason why the company manages to grow and remains stable despite tight competition and highly competitive electronics market.
Samsung has also manages their assets, liabilities, profitability, revenues and cash flow. An effective financial strategy helps a company take
another step higher to ensure that it remains on track in attaining both its short and long term goals while maximizing the value of profits.
The Financial Strategy of Samsung and its Significance
The financial strategy of Samsung is highly significant in getting the most of its financial resources and achieving sustainability. But to be able to do these things, Samsung had managed all its funding and financial resource utilizing the most effective strategy.
Many companies manage their income and finances in various different ways. An effective financial strategy enables organizations and companies asses their financial needs and support sources to successfully meet their objectives and fulfill company’s mission.
The success of this company does not just rely on the financial strategy of Samsung but also with proper financial planning for continued stability and growth. The financial strategy must be based on the mission set by the company so it is essential to clearly define the reason behind the company’s existence. Samsung also believes that adaptation of the best financial strategy leads the company to a direction where enormous profits are expected.
Advantages of the best Financial Strategy of Samsung
By adapting the strategic financial approach, Samsung is now at the peak of its success. The company is now earning not just huge profits but also valuable recognition from analyst and millions of customers all over the world.
The company is also working with different investors to be able to establish long term financial strategy. The impressive record of the company’s profit was achieved with the help of the most effective financial strategy.
Samsung is now very dominant and successful in the electronics industry. Aside from the financial strategy, the company also focused on dealing with corporate and management strategy because all of these works hand in hand in reaching success.
At this point, the company is always open in establishing new financial strategies that perfectly suit the latest changes and issues faced by the company.