Samsung’ Report

Samsung Group, or simply Samsung (Korean: 삼성 [samsʌŋ]), is a South Korean

multinational manufacturing conglomerate headquartered in Samsung Town,
Seoul, South Korea. It comprises numerous affiliated businesses, most of them
united under the Samsung brand, and is the largest South Korean chaebol
(business conglomerate). As of 2020, Samsung has the eighth highest global brand
value.
This report consists of the in-depth analysis of Samsung revenue, production, cost
and profit using the simple tools of mathematics and Microeconomics.
This report is organized to systematically deliver the theoretical analysis using
graphs and table data. The report consists of the data, graphs and later the
analysis. Data section comprises the extracted tables and calculated tables which
are the core foundation of this project. Graphs section encompasses several
graphs which are formed with the data as the foundation in the data section to
facilitate the analysis of Samsung. Analysis section is the section of prime
importance as it highlights the importance of the data and graphs in a cohesive
manner to make a conclusion.
Data:
The data is extracted from the annual business report of Samsung on its website
which is a 260 page long of last four years(2018-2021) because it would give a
better trend to understand the paradigm in which the company’s growth had set
to. The data consists of the four other section that are the four divisions of the
company: CE, IS, DE and Herman.
The Company’s business divisions are organized in a two-pronged framework
consisting of set (brand products) and Component businesses. The set business is
comprised of the CE and IM Divisions, and the component business consists of The
Semiconductor and DP Business Units. The CE Division is responsible for the
production and sales of TVs, monitors, Refrigerators, washing machines, and air
conditioners; and the IM Division focuses on the production and sales of HHPs,
Which includes smartphones, as well as network systems, and computers. The DS
Division comprises the Semiconductor Business which manufactures and sells
DRAMs, Nand Flash, mobile Aps, and other semiconductor-related products, and
The DP Business, which manufactures and sells OLED and TFT-LCD display panels
for mobile devices, TVs, monitors, And laptops. The Harman Division (acquired in
2017) manufactures and sells products such as Digital cockpit, telematics, And
speakers.
Below is the table of the Samsung revenue:
Revenue(2021-2018)(KRW 100M)
Divisi Revenue(20 Revenue(20 Revenue(20 Revenue(20
on 18) 19) 20) 21)
CE 421074 447562 481733 558324
IM 1006777 1072662 995875 1092514
DS 1185656 955180 1030361 1250890
Harm
an 88437 100771 91837 100399
Total 2701944 2576175 2599806 3002127
Samsung Cost Table:
Operating Cost(2021-2018)(KRW 100M)
Divisio Operating Operating Operating Operating
n Cost(2018) Cost(2019) Cost(2020) Cost(2021)
CE 402001 422472 446118 521867
IM 905057 979937 881148 956038
DS 720492 799363 819159 913548
Harm
an 86820 97548 91282 94408
Total 2114370 2299320 2237707 2485861
Samsung Production output table:
Output(2021-2018)(1000 units)
Divisio Output(20 Output(20 Output(20 Output(20
n 18) 19) 20) 21) Total
CE 42758 43964 48244 44133 134966
IM 346605 318635 249218 260501 914458
988110056 123029297 175601279 118224241
DS 711030599 7 7 0 43
Harma
n 3906 6459 6116 6928 16481
988146962 123059655 175632435
Total 711423868 5 5 2
Samsung Profit table:
Profit(2021-2018)(KRW 100M)
Division Profit(2018) Profit(2019) Profit(2020) Profit(2021)
CE 19073 25090 35615 36457
IM 101720 92725 114727 136476
DS 465164 155817 211202 337342
Harman 1617 3223 555 5991
Total 587574 276855 362099 516266
The cost table is calculated by subtracting the Revenue and the profits figures
provided in the group. The operation profit and hence the operating cost is taken
in to account because it is the composition of both direct and indirect cost which
would be similar to the economic cost.
To facilitate the economic analysis the Marginal cost, marginal revenue and
Marginal profit has been calculated using the division of change in revenue, cost
and profit over change in output.
Marginal revenue:

Marginal Revenue
Revenue Output Marginal Revenue
2018 2701944 711423868
2019 2576175 9881469625 -1.37152E-05
2020 2599806 1230596555 -2.73163E-06
2021 3002127 1756324352 0.000765265
Marginal cost:
Marginal Cost
Cost Output Marginal Cost
2018 2114370 711423868
 2019 2299320 9881469625 2.01689E-05
2020 2237707 1230596555 7.12217E-06
2021 2485861 1756324352 0.00047202
Marginal Profit:
Marginal Profit
Profit Output Marginal Revenue
2018 587574 711423868
2019 276855 9881469625 -3.38841E-05
2020 362099 1230596555 -9.8538E-06
2021 516266 1756324352 0.000293245
Next, The marginal revenue of each division
Marginal Revenue(CE)
Revenue Output MR
2018 421074 42758
2019 447562 43964 21.96351575
2020 481733 48244 7.983878505
2021 558324 44133 -18.63074678

Marginal Revenue(IM)
Revenue Output MR
2018 1006777 346605
2019 1072662 318635 -2.355559528
2020 995875 249218 1.106169958
2021 1092514 260501 8.565009306
 Marginal Revenue(DS)
Revenue Output MR
2018 1185656 711030599
2019 955180 9881100567 -2.51335E-05
2020 1030361 1230292977 -8.69063E-06
2021 1250890 1756012790 0.00041948

Marginal Revenue(Harman)
Revenue Output MR
2018 88437 3906
2019 100771 6459 4.831179005
2020 91837 6116 26.04664723
2021 100399 6928 10.54433498
Marginal Cost of each division:
Marginal Cost(CE)
Cost Output Marginal Cost
2018 402001 42758
2019 422472 43964 16.97429519
2020 446118 48244 5.524766355
2021 521867 44133 -18.42593043
Marginal Cost(IM)
Cost Output Marginal Cost
2018 905057 346605
2019 979937 318635 -2.677154094
2020 881148 249218 1.423124019
2021 956038 260501 6.637419126

Marginal Cost(DS)
Cost Output Marginal Cost
2018 720492 711030599
2019 799363 9881100567 8.60092E-06
2020 819159 1230292977 -2.28834E-06
2021 913548 1756012790 0.000179542

Marginal Cost(Harman)
Cost Output Marginal Cost
2018 86820 3906
2019 97548 6459 4.202115159
2020 91282 6116 18.26822157
2021 94408 6928 3.849753695
Marginal profit of each division:
Marginal Profit(CE)
Profit Output MR
 2018 19073 42758
2019 25090 43964 4.989220564
2020 35615 48244 2.45911215
2021 36457 44133 -0.204816346

Marginal Profit(IM)
Profit Output MR
2018 101720 346605
2019 92725 318635 0.321594566
2020 114727 249218 -0.31695406
2021 136476 260501 1.92759018

Marginal Profit(DS)
Profit Output MR
2018 465164 711030599
2019 155817 9881100567 -3.37344E-05
2020 211202 1230292977 -6.40229E-06
2021 337342 1756012790 0.000239938

Marginal Profit(Harman)
Profit Output MR
 2018 1617 3906
2019 3223 6459 0.629063846
2020 555 6116 7.778425656
2021 5991 6928 6.694581281

In all the tables above the ‘others’ part of the Samsung Report is not taken into
account because it had the negative values and its minimal significance in the data.

Graphs:
The graphs are the graphics portrayal of the tabular data to facilitate the process
of the detection of the anomalies in the data and to identify the trends in the data.
Below will be the graphs made using the tables above.
Revenue, Cost and Profit of the Samsung as whole:

Samsung's Revenue, Cost and Profit Curve

3500000
3000000
2500000
2000000
1500000
1000000
500000
0
2018 2019 2020 2021
Samsung revenue and its division

Revenue and its divisions

3500000

3000000

2500000 Harman
DS
2000000 IM
CE
1500000 Revenue

1000000

500000

0
2018 2019 2020 2021

Samsung’s Cost and its division

Cost and its divisions

3000000

2500000

2000000

1500000

1000000

500000

0
2018 2019 2020 2021

CE IM DS Harman Cost
Samsung’s Profit

Profit and its division

700000

600000

500000
Harman
DS
400000 IM
CE
300000 Profit

200000

100000

0
2018 2019 2020 2021

Next will be the graphs that would depict the Samsung’s divisions profit, revenue
and cost.

CE division:
CM Division
600000

500000

400000

300000

200000

100000

0
2018 2019 2020 2021

Revenue Cost Profit

IM Division:

IM Division
1200000
1000000
800000
600000
400000
200000
0
1 2 3 4

Revenue Cost Profit

DS Division:

DS Division
1400000 Harman
1200000
120000
1000000
800000
100000
600000
400000
200000
80000
0
2018 2019 2020 2021
60000
Revenue Cost Profit

40000

20000

0
2018 2019 2020 2021

Harman division Revenue Harman division Cost Harman division Profit

Harman Division:

Analysis: