Samsung Electronics Share of Revenue

Samsung Electronics Share of Revenue
Executive Summary
Samsung is one of the leading electronic companies in the world. It was founded in South Korea in 1938 by Lee Byung-Chull, and over the years, it has diversified and spread to all parts of the world. It is a long-time producer of electronics such as semiconductors, media devices such as televisions, mobile phones and cameras, memory cards, and home appliances such as fridges. Ajami & Goddard (2014) explain that over time, the company has expanded worldwide to be among the leading electronic instruments and a source of employment for hundreds of thousands of people across the globe. The company operates in Korean won; therefore, all the accounting records are done in Korean won. Foreign operations and currency issues play a significant role in the day-to-day growth and work of Samsung as a company.
Table of ContentsTOC \o "1-3" \h \u Executive Summary PAGEREF _Toc30143 \h 2Introduction PAGEREF _Toc5916 \h 2Geographical Area PAGEREF _Toc17896 \h 3Foreign revenue PAGEREF _Toc5643 \h 4Distribution Change PAGEREF _Toc4225 \h 6Sales Revenue Fluctuation PAGEREF _Toc7984 \h 8Diversity and location of foreign operations PAGEREF _Toc31968 \h 14Risk management strategies PAGEREF _Toc31428 \h 14Consistency of the company's translation method PAGEREF _Toc24498 \h 14Conclusion PAGEREF _Toc27337 \h 15
Introduction
Foreign operations and foreign currency risks refer to the international transaction losses that can be incurred concerning the currency fluctuations in the international currency market. It has numerous effects on the company in considering whether it operates domestically or internationally. Developments such as cash flows are affected since the foreign transaction represents the known cash flows and future. When the currency becomes weaker or more robust, it affects the contributions of the Country's deficit and supply of trade with time. Therefore, this exposure is very significant to Samsung as a company because if it is not protected from the possible changes in the foreign exchange rates, it can lead to a low profit, losses, and an inability to meet its target.
Geographical Area
Other than the company's headquarters at Gangnam station area of Seoul in South Korea, with time, the company has grown to conduct its business in more than 74 countries globally. The company has expanded manufacturing centers outside South Korea in countries such as Xi'an, China, which produces chip fabrication. In India, Suzhou Industrial Park in China also makes semiconductors, and another center in Austin, Texas, in the United States of America, produces chip fabrication and many more. Among the leading market countries of Samsung is India, which has a giant Samsung mobile factory based on the unit of production capacity and is also among the leading in the company's product usage. Because of the company's diverse production of devices, its primary target market is typically users between the age of 15 to 45, who are usually lovers of trends in lifestyle that lead to heavy consumption of televisions and other media devices. This year's study shows that the Samsung mobile phones market in South Korea was about 65.9 percent, followed by countries such as Afghanistan and China. It...