1. General Trading Company Samsung C&T 2010.03.04.Thu Team 4 Suh, Jinwon Lee, jiwoong Lee, jungloke Choi, myungwon

2. agenda General Trading Companies Samsung C&T Analysis Vision and Future Strategy

3. agenda General Trading Companies Samsung C&T Analysis Vision and Future Strategy

6. Main function of Korean GTCs was exports, and they didn’t export only their family companies’ products, but also other companies’ products Export Products G T C Foreign Companies Family Companies Foreign Customers Other Companies Import Materials

8. Change of GTC’s BM GTC is diversifying its business model, because conventional trading has become less profitable. Business model of GTC Past Profit from trading Export Products G T C Family Companies Foreign Companies Import Products Foreign Customers Other Companies Market Change Manufacturers including family companies started to export directly. Conventional BM has been less profitable. Now Business Diversification Trading Project Organizer Invest on Natural Resources Invest & Help Small Business Financing

9. agenda General Trading Companies Samsung C&T Analysis Vision and Future Strategy

10. History of Samsung C&T Samsung GTC has a long and illustrious history that represents the history of the import/export business of Korea. Samsung GTC is formed as a legal entity as of 1952 First focuses on the food and textile industry 1950 Starts increasing its operations to heavy chemical industry Samsung focuses all its export activities to Samsung GTC 1960 Strengthens its presence in the textile industry The oil shock led to an even more aggressive market developing tactics Develops an import and resources development branch 1970 Despite overall weak economy, Samsung GTC grew an average 31.8% over 5 years Focused on electronics and heavy industry chemicals Started developing long term goals and networks 1980 Samsung GTC merged with Samsung Construction to become Samsung C&T Focuses on high margin products Overhauls portfolio to strengthen resource and project development 1990 Reorganized to increase synergy between construction and trading Focused on finance, marketing, IT, risk management, M&A, and distribution 2000

12. Solar power plant

14. Storing of chemicals

15. Trading materials for semiconductor

19. Organizing suitable companies Equipment company . . .

20. Function- Marketing Samsung C&T buys the right to sell overseas from companies that lack an overseas sale network and utilize their own connections to provide access to foreign markets. Business process Finance Foreign Market Investment China Marketing Right to Sell overseas Logistics Manufacturing company Samsung C&T United states Money Europe . . .

23. Corporate Vision The corporate vision embodies the reason for the existence of the firm given shape and direction by the taken strategy. Overall goal of organization The shape of achieving the vision The “how to” achieve the objective Core Competency + Analysis of External Factors = Our Corporate Strategy

25. Search for suppliers

27. Network

28. Human Resources

29. Accumulated trading experience

30. Trading experience

31. Financial power

32. Family of biz. “Samsung”

33. Biz. Alliance

34. Brand

35. LogisticsR&C

37. end-user

38. Wind, solar panel cluster

40. Investing

41. Network

42. Versatility

43. Human Resource

44. Project development

45. Experience

46. Financial power

47. Family of biz. “Samsung”

48. Biz. alliance

49. Brand

50. Accumulated experience

51. Relationship with govern.

52. Logistics

53. Equipment procurement

54. Financial stabilityR&C

55. V.R.I.O – Finding core competency The R&C of Samsung C&T is further developed into a core competency by the VRIO analysis

56. Core Competency - Network Samsung C&T’s core competency include its powerful and wide network of global contacts. Global Network (& Information) Overview Daewoo International 50 offices in 38 countries 93 offices in 42 countries SK networks 72 offices in 22 countries

58. Preparing for Globalization

60. Competitive employees show great commitment to Samsung2010 FEB First Asian company to construct Solar Panel Plant in California

61. Core Competency – Brand, Family of businesses Samsung’s core competency includes it’s powerful brand and the aggregate family of businesses. Brand Family of Businesses Construction company Samsung C&T Electronic company Equipment company Samsung ranks 19th in the world. Samsung does everything. http://www.interbrand.com/best_global_brands.aspx

63. Global Recession

64. Polarization

65. Rise of BRICS economy

68. Increasing awareness of the Environment

69. Well-being Trend

71. StableSocial Factor Technology Factor

72. agenda General Trading Companies Samsung C&T Analysis Vision and Future Strategy

74. Not stable (affected by exchange rate)

75. Direct exporting is increasing

76. Network

77. Human Resource

79. The push for alternative renewable energy in developed countries

81. THANK YOU FOR LISTENING