The Good Cost Control of Samsung Which Is Successful in a Fiercely Competitive Environment - Case Study Example

TO EVALUATE AND ANALYZE THE GOOD COST CONTROL OF SAMSUNG WHICH IS SUCCESSFUL IN A FIERCELY COMPETITIVE ENVIRONMENT + Course Date Submitted Abstract Cost is a crucial factor in determining a company’s profits and has been part of the managerial strategy in improving the performance of an organization. Lower costs will enable the companies to gain a competitive advantage over others in the consumer goods industry and enable pricing of goods to be done in a manner that will attract a larger market share while maximum profits are attained. The electronics and telecommunication industry has a high demand from consumers thus making it necessary for companies to implement good cost control techniques such as Cost Volume Profit Analysis to minimize costs relating to manufacturing, marketing, advertizing and research of the identifiable products. Samsung Company has implemented CVP analysis and has obtained higher profits compared to other companies in the electronics and telecommunication industry. Likewise, it has diversified its operations and expanded the market share that appreciates the quality goods it produces. Table of contents: Title…………………………………………………………………………………………...1 Table of contents…………………………………………………………………………….2 Chapter 1 – A background of the electronics and telecommunication industry……...3 1.1 statement of the problem………………………………………………………4 Chapter 2 – Aims and objectives ………………………………………………………..5 Chapter 3 – Literature review……………………………………………………………6 3.1 Definition of Cost-Volume –Profit analysis………………………………….7 3.2 Assumptions of CVP analysis…………………………………………………7 3.3 Break-even point………………………………………………………………8 3.4 Application of CVP analysis………………………………………………….10 3.5 Cost control and cost elements………………………………………………..11 3.6 Steps in cost control……………………………………………………………12 Chapter 4 – Research methodology……………………………………………………,..13 4.1 Primary sources………………………………………………………………14 4.1.1 Personal interviews…………………………………………………………..15 4.1.2 Telephone interviews……………………………………………………..….15 4.1.3 Questionnaire………………………………………………………………..16 4.1.4 On-street survey……………………………………………………………..16 4.2 Secondary sources…………………………………………………………….17 4.3 Sampling procedure………………………………………………………..…18 Chapter 5 - Data Analysis…………………………………………………………….......19 Chapter 6 - Time Schedule and Cost……………………………………………………...21 Chapter 7 - Conclusion…………………………………………………………………….22 Chapter 8 - Evaluation……………………………………………………………………..24 Chapter 9 - References…………………………………………………………………….25 Chapter 10 - Appendices…………………………………………………………………….26 To Evaluate and Analyze the Good Cost Control of Samsung Which is Successful in a Fiercely Competitive Environment Chapter 1: A background of the electronics and telecommunication industry. The electronic and telecommunication industry has grown over the years to become more efficient in cost control and production of products and services while maintaining customers’ value for money. The electronic devices that are being produced have considerably surpassed the customers’ expectations in not only the quality but also the effectiveness and convenience. This has made the industry a competitive environment where companies have to stay ahead of their competitors in strategic management of operations, cost control and continuous creation of innovative ideas (Arjun Kulkarin 2012, 104). Managers of such companies use planning tools such as the cost volume profit analysis (CVP Analysis) to help them make both short-term and long-term decisions of the companies. They put much focus on the break-even point, which is the point where gains equals losses, to avoid high operational losses. Development in the society has made electronic devices more important in people’s daily life. Therefore, companies always look for better ways to improve their products so that they can attract more customers. However, research of new technologies and products brings about high costs of operation thus making it necessary for these companies to design better strategies of good control cost. To evaluate the feasibility of using the accounting theory-cost volume profit analysis in reducing the costs and saving large amounts of money I will focus on one such company, Samsung, which has a good cost control system (Samsung Plc 2012, 3). It is also critical to establish how (CVP Analysis) can be a tool in providing information for decision making when Samsung is developing a new accounting package. 1.1 Statement of the problem In this study I will evaluate how Cost volume profit analysis has helped managers of the Samsung Company in making decisions that will ensure the firms growth and survival. CVP analysis has been rarely used in many industries because they may overlook its importance or they prefer other cost control techniques. Demonstrating the importance of this model on preventing and managing unnecessary costs will enable managers to get a clear view of which cost planning tool to implement. The main purpose of the study is to evaluate how a company such as Samsung has benefited from the use of CVP analysis, and comparing the cost of sales and the net profits to other companies in the same field. Since cost control is a part of the decision making process, managers are the biggest beneficiaries from adopting the model into their companies by facilitating timely and accurate decisions. It will help managers solve challenges like how to utilize the available resources so as to achieve the projected profit maximization. Resources such as material, labor and capital require more funds to acquire thus causing the company to incur more costs in the manufacturing process. Another challenge is the advanced state of competition in the market that can only be solved by staying ahead in cost reduction and efficient operations. CVP analysis can be used to ensure the company operates at a lower cost which in turn will enable more funds to re-invest or introduce new innovations. In evaluation of the relationship of CVP analysis and its variables, a thesis is formulated that will demonstrate the time, place and resources needed for integrating the model into company operations (Horngren Foster 2000, 123). Chapter 2: Aims and objectives The research will be focused on determining if CVP analysis is adequate for managerial decision making. The applicability of this technique can be expounded by using a practical example of the Samsung Company that uses this method of cost accounting in its day to day operations. It is therefore my goal to critically analyze the model from a theoretical perspective. Some of the objectives to be attained in the study are; 2.2.1 To analyze Samsung’s production effectiveness specifically after utilizing cost control. 2.2.2 To discover how Samsung could make a good cost control in product design stage and inventory management. 2.2.3 To compare the different cost control methods in Samsung and Nokia and the different results they brought. In this proposal, I will establish how the production of Samsung’s products is cost effective after utilizing control cost analysis and how profits will be maximized. Since cost of production is subdivided in the manufacturing process, I will also determine how cost can be controlled specifically for the design stage and the inventory management stage. These stages will determine how the products will be categorized in terms of quality assurance to customers and cost reduction to the production process. A comparison to another company in the same industry as Nokia will help me to objectively formulate a hypothesis on the applicability of the costing methods used. The results of these companies operations in their financial statements is also a determining factor on how much cost saving is taking place with the respective cost control method. 2.3 Formulation of a Hypothesis This study will be used to test previous thesis that supports use of costing methods in planning and control of fixed and variable costs. Using the descriptive research method the data collected will show how the variables influence change in profits and the level of output. Therefore, a conceptual framework can be established to enable users understand the impact of using the CVP model in relation to cost minimization (Arjun Kulkarin 2012, 104). To avoid both type I and type II errors, my hypothesis will be based on empirical evidence and existence of the relationship that the model will help in reducing costs and maximizing net operating profit. The hypotheses are: Ho- The null hypothesis, states that the CVP analysis will produce same results as other costing techniques H1- The alternative hypothesis, states that the CVP analysis will reduce costs of the Company’s operations and lead to high profits. In order to be conclusive in establishing whether to reject or accept the null hypothesis, I will determine both the dependent and the independent variables. The net profit is the dependent variable while changing variables will be the cost of operation and the sales of finished products. The hypotheses will help in bridging the gap between the stated problem and evidence needed for its solution. It will also sensitize this study into specific situations that are relevant to the study and form the framework for the ultimate conclusion of the findings in the study. 2.4 Significance of the study This study will provide a better understanding of how C-V-P analysis can better the companies’ cost control and enable managers to accomplish tactical and strategic results. It will be used as a source of information if a company is in the process of re-engineering its costing techniques in order to stay relevant with the advanced market competition. Managers who use the appraisal method of introducing a new procedure or process in the business can develop their judgments from the findings of this study (Horngren Foster 2000, 123). This is because the study will focus on what has been achieved rather than the anticipated results of using CVP analysis. This study will enable managers to choose a better forecasting method of costing that will also provide a platform to estimate the target revenue. For investors and other stakeholders, the study will act as a decision making tool for determining what companies will have higher profits and thereby offering higher rates of earnings per share. Chapter 3: Literature Review 3.1 Definition of Cost-volume-profit analysis It is a managerial tool that analyzes the cost of the company by determining its relationship with the volume and profits of production (McLntyre 2007, 98). In order to understand CVP analysis, the determining factor which is cost is elaborated. CVP analysis is concerned with revenue and cost planning, sensitivity analysis when sales are uncertain and multiple cost driver and products situation (Colin Drury 1994, 78). Using the notion of marginal costing, as the volume of producing outputs increases, average cost per each unit will reduce and when the output decreases the average cost of production for one unit will go up. CVP uses an assumption of what if, where a variable’s effect to the total cost of production is studied and its impact established. 3.2 Assumptions of CVP analysis In this analysis costs can be segregated into fixed costs and variable costs. Fixed costs are those that are long term in nature and will vary less often. They include costs of rent, rates and insurance of fixed assets as land, building and equipment that will be constant over a period of more than five years. The second assumption is that total cost and revenue are linear functions of volume within the relevant range and time. This means that the volume of production will influence revenue and costs in a proportionate extent. Thirdly, the product selling price, variable cost per unit and fixed costs are assumed to be known and constant over a stated period (McLntyre 2007, 98). In this assumption, the variables are the main determinants in computing the CVP analysis and therefore they are known prior to formulating the equation and deriving a forecast. This method is applicable to single or multiple products with constant sales and sales-mix as volume changes. 3.3 Break-even point This is a managerial tool that determines the point where operational profits will be equal to zero. When a company determines its break-even point it will be able to compare the proportionate cost increase caused by a similar increase in product production. At the break-even-point, profits will be equal to the costs. This enables a manager to compare and contrast any increase or decrease in profits caused by the varying factors of production. The B-E-P of a company is a benchmarking system for future operations since the managers will always be determined to never allow sales or profits to drop below the costs of production (Horngren Foster 2000, 123). Instead, they will be able to focus on profitability scenarios by testing how much financing is required to boost profitability and determining the investments’ implications. It can either be profitable or detrimental to the company by increasing its costs. Source:http://www.jstor.org/action/doBasicSearch?Query=cost+volume+profit&acc=off&wc=on&fc=off [accessed 23rd March 2014] Graphically it is represented as: R-revenue BEP- Break-even point Source:http://www.jstor.org/action/doBasicSearch?Query=cost+volume+profit&acc=off&wc=on&fc=off [accessed 23rd March 2014] 3.4 Application of CVP analysis CVP analysis can be applied in determining the prices to be set for products and services. Pricing is a determinant of whether people will buy the products or not (Lee John 2013, 133). Lower prices attract a larger market of customers making the product or services most economical to users. The analysis is also used in setting either long-term or short-term goals by putting standards that are to be attained in a specified period. Managers will be in a position to set informed, realistic and attainable business targets. CVP analysis can be used to determine the best marketing strategy by determining the cost of production and the maximum mark-up for sales promotion and offers. The executive management of a company will use this analysis tool to check the feasibility of introducing a new product or service or getting new equipment. These decisions will influence how operations are carried out and may affect labor turnover or even the Company’s structure (Horngren Foster 2000, 123). Finally it is applied in establishing if a company should make on buy a product. Such decision is to determine the cheapest alternative that will enable the managers keep the costs at a preferred percentage. 3.5 Cost control and its elements It is important for a business to control the costs associated with running the business when they venture into a market. Their focus will be to find out the companies’ cost centers and their variance, the reasons for incurring more costs and the possible ways of reducing the total cost. Cost has three elements; the first element is the cost of obtaining raw materials and it depends on the pricing that is offered by the suppliers (Lucey T 2002, 34). Wastage of material is to be avoided and inventory control techniques as the economic order quantity will help managers reduce the material cost. The second is element is labor. Labor as a factor of production is to be skillful and efficient. Selection of staff should be based on value addition while always maintaining audits and reviews of performance. Lastly, expenses are the most contributors to the amount of cost of a company and are challenging in managing. They may be separated into direct and indirect expenses. 3.6 Steps in cost control Controlling costs can be done through establishing standards that will be the set requirements to oversee that cost will not surpass expected returns. Likewise, controlling costs need consistent cost analysis to determine which procedures incur more costs and the reasons for such occurrences. Comparison of costs will determine if there is any variance that needs to be checked then corrected by implementing an effective process for managing the cost such as the CVP analysis. However, such process may not be profitable without putting measures that will monitor the progress and offer feedback (Charles George and Datar 2009, 36). These measures can be introduced to a company either individually or collectively, however, the managerial team will be responsible for the smooth running of processes in the company. Chapter 4: Research Methodologies Research was conducted using descriptive studies so that we can test hypothesis of how efficient CVP analysis is effective in reducing the cost of production. The plan was structured in the best applicable way to enable the surveyors gather answers to the provided research questions. The questions were easy to answer and were used as the framework for specifying the relationship among the variables being studied. During the research ethics were followed to the participants by maintaining the right to privacy and allowing informed consent. Safety of the research team was also considered since it is part of conducting an ethical research. 4.1 Primary sources Students who use Samsung devices provided first hand information on the devices efficiency and their opinion on the companies’ performance. This type of data is more reliable because it has been less tampered with and allows me as a researcher to get an understanding relevant to the research problem. Data was collected according to the methods to be used: 4.1.1 Personal interviews Provide qualitative data to be used in in-depth understanding of the cost control techniques to be used. Interviews were carried out in an environment free for external destructions and all participants were aware of the research objectives. There was free will and consent and they were informed that they could stop anytime they wanted to. A tape recorder was used to ensure that the interviews were as personal as possible and that no information was left unrecorded. These tapes would then be replayed and the relevant information quoted and indexed in terms of relevance to facilitate easy retrieving. 4.1.2 Telephone interview Telephone interviews were done by calling and informing participants on the importance of the study and letting them have informed consent. People who were chosen to be interviewed had extensive knowledge of the operations of the company and they were up to date with the occurrence in telecommunication and electronic industry. The main aim was to know what their prospects were for cost control improvement in the company and what recommendations they would propose for the management team in both companies. 4.1.3 Questionnaire Questionnaires were sent by email to 30 students to who would fill and send it back by email. The responses would then be tallied and analyzed using computer analysis. However, the rate of response was lower than what was anticipated. Students may fail to comply with this method of gathering data because communication on the importance of the study is not adequately done. 4.1.4 On-street survey Simple questionnaires were developed and people in the street would help in filling them out. The questions were to be simple, interesting and easy to understand so that a larger number of people would participate. Close-ended questions were appropriate because a minimal amount of time will be required in filling them out. The response rate was much higher compared to the questionnaires sent by email. Relevant data was also collected through observation and small chats with the people who participated in the on-street survey. 4.2 Secondary sources Research was done on textbooks relating to the problem, journals, magazines and the companies’ website. The elements that were used in selecting these resources was their relevance to the problem and if they were time bound with the current situations in the costing methods used by electronics and telecommunication companies. These data would enable me establish areas that have been covered in previous studies and the recommendations that would facilitate speedy data collection. They would also provide guidance for the study and expertise specifically on cost-volume-profit analysis. 4.3 Sampling procedure The participants were selected in random but they had to have some basic knowledge of the company, its devices and its relation to other competitors in the market. This procedure is called the simple random method of sampling where all participants have an equal chance to be selected as subjects. All the literature sources were organized from the most important to the least relevant to cost control techniques. Chapter 5: Data analysis and presentation Data will be analyzed using the gross profit percentage of Samsung compare to Nokia. The companies’ financial statements will also provide a detailed report on the stock turnover ratio. The analytical tools can either be human analysis in relation to qualitative data or they can be of computer analysis if the data is quantitative. By comparing the results of the two companies in the same industry I can be able to conclude on the effective good cost control mechanisms that have been used in the management of Samsung production processes. When analyzing the data multivariate methods were used for the case where the dependent variables were more than one while the Univariate analysis was for the single variables. Determining variables that affected cost control in the CVP model was critical to avoid getting unrealistic results influenced by irrelevant variables. These variables affecting the outcome of the study that researchers are not aware of are known as extraneous variables and may be either situational or caused by the subject itself. Test and re-test technique in analysis which entailed administering similar instruments twice to the same groups of subjects. In this technique, the aim was to measure reliability of data by using a test tool or measure repeatedly on the same subject on a future date. The results were then compared and correlated with the initial test to give the level of reliability. In order to ensure data was consistent and accurate, external sources of variation were reduced and conditions under which measurements were standardized. Reports were derived from the companies’ published financial reports and would appear as follows: Source.Nokia.com (Accessed 3rd April 2014) Samsungs operational profit Source: Samsung plc 2012 From these annual reports the gross profit percentage can be computed by dividing the gross profit by the sales figure and multiplying with one hundred percent. This percentage will determine how much less the cost of sales has been deducted from the total revenue figure. The stock turnover ratio measures the amount of stock sold and its replacement in a given year. It is computed by dividing average inventory to cost of goods sold (Lucey T 2002, 34). G These statements illustrate the relationship of using different costing methods on the income and the cost of each organization. Activity based costing has enabled Samsungs operating profits to climb upwards while Nokia has not adopted these technique and is facing challenges of managing its operational cost. Chapter 6: Time schedule and cost The time spent in conducting the research was fourteen days which entailed the process of collecting, organizing, analyzing and interpreting data. The first three days were spent familiarizing on the topic and getting background information about the electronics and telecommunication companies. The next four days were used in conducting the literature review. Information was collected on the sources by using key words as cost control while searching the library catalogue. After the research, data was organized and collected for the next three days. Using sampling techniques and confirmatory research design, all information relating to the process of good cost control in Samsung was put in an order of importance to the title. The sources of information were both primary and secondary sources to enable me build an accurate thesis on costing. Analysis and interpretation was done in the next two days using computer analysis and presenting data on graphs, histograms and line charts. The last two days were spent compiling and arranging information in a systematic proposal format. This data was to be in a format that would enable users access the information easily and conclusively. The cost of conducting the research was one thousand Euros used as follows; in paying surveyors who went to different towns to collect data, for accommodation and food expenses, getting the required equipment that is up-to date with technology, transportation, utilities and other information resources. Chapter 7: Conclusion From the data presented in the analysis stage, it is clear that Samsungs operational cost is at a minimum level and its profits are higher compared to those of Nokia. Samsung has used the cost-volume-profit analysis to help in making managerial decisions that influences the production efficiency and increases sales turnover (Samsung Plc 2012, 3). The gross profit percentage is considerably higher in Samsung’s statement of comprehensive income due to the high number of sales achieved while maintaining costs of operation at a lower level to other companies in the industry. The company produces high volumes of products that act as economies of scale by reducing the cost and wastage of material, making it have more inventories that will be distributed to satisfy the demand in the market (Lee John 2013, 133). By using the good cost control methods, Samsung has increased its production capacity and minimized the costs associated with volume of raw material and final products. This system of cost minimization has brought about a competitive advantage for the company’s products that have been priced at an attractive price and are of good quality. By using the break-even point model, managers in Samsung were able to conduct forecasting of future expected profits by using the contribution margin. This was a better way of making strategic managerial decisions since a company needs to always determine its position in future in terms of profits and market share (Samsung Plc 2007, 12). Therefore, cost-volume-profit analysis was not only used as a cost accounting tool but also as a decision making tool for forecasting. Cost accounting has played an important impact in the operations and management of the company. By focusing on the fixed and variable costs the company has been able to overcome over expenditure in acquiring assets and raw materials (Alnoor Charles and George 2008, 45). Cost accounting provides detailed cost information to enable the executive management in effective planning, controlling and scheduling. Since costs are kept at an effective rate, it will help avoid excessive lock up of funds in material and inventories and reduce labor turnover and idle time. Nokia uses activity based costing which is also an effective method of determining and managing operational costs. However, the managerial decisions may be influenced on a particular activity causing an imbalanced cost control. The inventories are also not stated at their original cost but at their net realizable value. This system can be inefficient in managing stock turnover and lead to stock building up and holding excess capital. Such capital may have been used in introducing more products or diversifying the company’s operations (Lucey T 2002, 34). Inventory held idle with less sales turnover makes the company lower its prices to gain a market share of its products. Such decisions lead to lower levels of revenue and higher costs of production. As shown in their statement of comprehensive income, there are high losses with minimum levels of sales. Managerial forecast of expected profit is not efficiently done with the activity based costing because it uses historical data (David Wright 1994, 55). Nokia’s managers have a challenge to stay ahead of competition because of their inability to determine the amount of cost that will derive a specific profit. The method to determine costs and profits for a desired inventory is the break-even point method which cannot be determined using activity based costing. Samsung Company will have better financing sources since more investors will build confidence on the Company’s stock. Samsung’s earnings per share is higher compared to Nokia and it also has excess retained earnings that will be ploughed back into the business. A company with lower profits will always sell shares to the members of public to cover their costs thereby reducing the ownership of the company and risks being taken over by being bought out. Chapter 8: Evaluation Innovation has been the main factor that has influenced the growth of Samsung. they entered the market aggressively by designing products that were to provide efficiency to users by introducing new features. Samsung encourages its employees to come up with creative ideas by offering incentives to such innovations. Products that are new in the market gain a greater market share that will boost revenue collection from continuous buying by customers (Samsung Plc 2012, 3). The challenge to the company is to avoid obsolesce of its products to have a competitive advantage and high customer satisfaction. The company has had a successful market share and cost reduction through diversification of the products that are being produced. In terms of cost reduction, such diversification helps the company avoid wastage of material that can be used in other products production. It can apply the system of economies of scale because all its products are electronics that use the same raw materials in making the electronic chips (Victor Weir 2009, 67). This has made Samsung the largest chip producer in the world. The products range from household appliances, television sets, computers, mobile phones, laptops, office appliances and other electronics specifically designed for a certain use such as in hospitals. Their strategy of getting into the market was by using cash aggressively. The initial stages of commencing business sometimes bring challenges where costs exceed revenues given that the products have not attained a desired market share. To manage their costs some of the losses had to be absorbed by the company (Victor Weir 2009, 67). Such losses included the loss in a high profile case between Samsung and Apple. However, the company responded by releasing more diversified products and successful marketing strategies. In the future Samsung intends to improve its cost control by increasing research on new products and better production techniques. It will spend up to six percent of the available revenue on conducting research and development which determines how efficient the operations of the company will be. By being more efficient the company will be able to minimize costs associated with wastage and rejected low quality products (David Wright 1994, 55). Lower costs will also boost price leadership compared to other products in the market. Samsung will be able to set lower prices that will bring higher returns through increased selling. Samsung should also focus on bringing new ideas in future since innovation has been centered on smart phones and 3D screens. More innovation is not only an essential part on the growth of a company but it is also a trend setter enabling it stay relevant in the market (Seonqiae 2006, 88). Supply and distribution is also relevant in determining the company’s future cost of control. The management of Samsung is to identify if the supply chain is reliable enough to bring quality raw materials for production before engaging them in long-term contracts. Distribution is likely to affect the pricing of the products. Since prices are set as a mark-up or margin of the costs, the distribution costs are to be at a minimum level to reduce the total production cost of the product. Cost-volume-profit analysis will enable the company to always forecast what to introduce in the market and the impact of such decision on the total cost and revenue collection (Hussey and Ong 2012, 22). This method will enable the company in knowing the best mix of products to be produced either together or in separate processes. Determining the sales mix is also determined using this model, selling the diversified products can either be complementary or supplementary depending on the expected returns calculated using the break-even point. Chapter 9: References  Alnoor Bhimani, Charles T. Horngren, Srikant M. Datar, George Foster, (2008) Management and cost accounting(4th edition), Person Education Limited, Edinburgh Gate, Harlow, Essex CM20 2JE, England Arjun Kulkarin (2012) Cost Control Management Cost analysis. Available at: http://www.buzzle.com/articles/cost-control-management.html [Accessed 13th March 2014] Charles T. Horngren. George Foster. Srikant M. Datar (2009) Cost Accounting—A Managerial Emphasis(14th ed), Tsinghua University publishing House Colin Drury. (1994) Costing—an Introduction(2nd edition, Chapman & Hall, 2-6 Boundary Row, London SE1 8HN, UK David Wright (1994) A Practical Foundation in Costing, Routledge, 11 New Fetter Lane, London EC4P 4EE E.V.Mclntyre. (2007) Cost-Volume-Profit analysis Adjusted for Learning. Management Science 149 (11), Available at http://www.jstor.org/action/doBasicSearch?Query=cost+volume+profit&acc=off&wc=on&fc=off [accessed 23rd March 2014] Horngren Foster Datar, (2000) Cost Accounting (10th edition), Prentive-Hall, Inc, Upper Saddle Riverm New Jersey 07458 HUSSEY, R., & ONG, A. W. M. (2012). Strategic cost analysis. [New York, N.Y.] (222 East 46th Street, New York, NY 10017), Business Expert Press. http://public.eblib.com/EBLPublic/PublicView.do?ptiID=876652. Lee. John Y. (2013) Advances in Management Accounting. Emerald Group Publishing Limited, LUCEY, T. (2002). Costing. London, Continuum. Samsung plc, (2012) Company Reports of financial statements. Available at: http://www.samsung.com/uk/aboutsamsung/samsungelectronics/companyreports.html [Accessed 20th March 2014] Samsung Plc, (2012) Business Solution Brief of Samsung. Available at: http://www.samsung.com/uk/business/resource/solution-brief [Accessed 21st March 2014] Samsung Plc (2007) Samsung strategy. Available at: http://www.businessinsider.com/samsung-corporate-strategy-2013-3 [Accessed 4th March 2014] Seonqiae Yu. (2006) The Growth Pattern of Samsung Electronics: A strategy Pespective International Studies of Management and Organization, 57 (15) Available at: http://www.jstor.org/action/doBasicSearch?Query=Samsung+strategy&prq=cost+control&hp=25&acc=off&wc=on&fc=off&so=rel&racc=off [Accessed 01st March 2014] W. Victor Weir. (2009) Cost Control- Building Net Revenue Public performance and Management Review, 116 (4) Available at: http://www.jstor.org/action/doBasicSearch?Query=cost+control&prq=cost+volume+profit&hp=25&acc=off&wc=on&fc=off&so=rel&racc=off [accessed[ 1st March 2014] Chapter 10: Appendix A CVP analysis use of the contribution margin Calculation of the sales turnover Calculation of gross profit margin/ percentage Appendix B Historical profits of Nokia and Samsung Read More