TNC Case Study (Samsung Electronics) (Background information (Founder: Lee…
TNC Case Study (Samsung Electronics)
Founder: Lee Byung-chul
Net worth (2017): $12.6 billion
Founded in: March 1, 1938, Daegu, South Korea
Headquarters: Seocho District, Seoul, South Korea
Samsung has approximately 160,000 workers in 61 different countries.
Why is Samsung powerful?
Samsung's construction division built the Burj Khalifa, which is the tallest building in the world.
Samsung has been around since 1938. The Samsung Group is made up of 80 different businesses
Samsung's Heavy Industries builds ships in a 4 million square foot shipyard
Samsung is the largest company is South Korea.
Why does Samsung hire people in poorer countries?
They can afford to pay less towards working conditions, an example of this is on June 9th 2014 Samsung workers got leukemia due to poor working environments and long time exposure in a chip-like environment. Samsung was not held accountable to these people are fines weren't placed.
The land prices in Asia are very low and so they have the advantage of building more factories with less money to maximize profit.
Labour costs are low, Samsung can afford to have over 500 people working in one company with a salary of 100 workers in the USA.
The building regulations are very weak and there aren't any harsh measures to ensure worker's safety
Less worker unions and so health and safety is not an issue.
How has Samsung become a TNC (achieve globalisation)?
Samsung uses bright colours and catchy slogans to attract the customer's eyes, this contributed to Samsung's success in global
Samsung has looked over other companies's creations and agreed to investigate the customer's demands and apply them to their products, gaining more fame and popularity.
Samsung started out as a very strong trading company , nowadays Samsung's phones are rated top 2nd phones on the market and 74.4% of people own a Samsung device