Samsung Electronics Co., Ltd. is a multinational, though predominantly Korean, company whose headquarters lie in the South Korea. It is ranked as the second biggest technology company, only second to Apple. Furthermore, having a much expanded network of sales and assembly plants, it employs approximately 370, 000 people and is represented in 80 countries.
The area of its work being electronics, the company is divided into three major business divisions. These include consumer electronics, mobile communication and device solutions. The first division provides color televisions as well as some computer products such as monitors or printers. The mobile communication division is producing mobile phones and applications to them. Finally, the device solutions division is mainly preoccupied with displaying business parts like flashes, thin film transistor-liquid crystal screens, etc.
In the present paper the financial analysis of the company’s activity will be provided. The financial analysis may be based on a number of factors. The evaluation of the company’s stocks may be one of them. Indeed, stocks’ value of the company can testify on its progress and development, prosperity, competitiveness, etc. The interrelations between the changes in stocks prices and the company’s success have also been established and they can be roughly formulated as follows: the more the company flourishes, the more stable and higher are its stocks. On the contrary, if the business flounders, so do the company’s stocks. On the other hand, since most securities stocks tend to be quite volatile it is worth analyzing them in the middle and long-term time spans and perspectives. Nevertheless, the short-term changes can also give the researcher some insights on the vector of the company’s development as well as the current economic situation on the markets. (Freeze &Chung, 2008)
Thus the current financial situation, having been characterized by the tremendous effect that Brexit has been exerting on the businesses and financial markets, has been far from favorable and auspicious to most stocks. This also applies to Samsung Electronics’ stocks. Yet the last day has seen a slight change of the trend when the stocks have started rising, after all, or more specifically they have bounced back. This pattern has been repeating itself for the last two-three weeks.
The nature of this rises or losses in stocks’ values should not be misinterpreted: in the highly volatile and uncertain environment of the post-Brexit world (even though that formally Britain still remains a part of EU) such fluctuations are inevitable and it is really difficult to come up with more or less definite prognosis for the future.
However, it is important to focus on the Samsung Electronics’ behavior of stocks for the last months or probably even years. Taking a look at the stocks’ graphics and charts, we can come to the definite conclusion that the Samsung Electronics’ stocks have been rising though again fluctuations were not fully ruled out. This can testify to the company’s slow but steady progress and expansion which corresponds to the overall picture of Samsung Electronics’ recent years performance which has been quite impressive and outstanding. This can be attributed to the company’s proper use of its revenue and its cutting its costs through avoidance of stiff competition, for example. (Chen, 2014)
References
Chen, B. Samsung Plans Mini-Stores in Best Buys. New York Times. 17 November 2014.
Freeze K.J. & K.W. Chung (2008). Design Strategy at Samsung Electronics: Becoming a Top-Tier Company. Design Management Institute, Boston, USA.
