Samsung profits drop keep management or usher in a big shake-up

Beijing time, November 25 morning news, according to a Bloomberg report, people familiar with the situation said that because of the challenges of Chinese companies, Samsung Electronics profits plunged 4.5 billion of dollars, so the Li clan tried to revive the important business, and may replace the Samsung Electronics Mobile Division management. In fact, Samsung has already restructured its 70-plus companies, and Samsung's management is Lee's first large-scale reorganization after his father, Lee Kun-hee, was hospitalized this May. including Samsung C&t and Samsung heavy industry, Samsung Group will have hundreds of executives to adjust their jobs. This is also the Lee clan for the smooth deployment of power handover to Samsung launched the latest adjustment. Samsung Electronics co-CEO and mobile business director Shen Zongjun has said the company plans to reduce the model of the new smartphone in the next three years and transfer 500 engineers from the mobile division. The mobile sector may usher in a massive management realignment. ' The top leadership in the mobile business has to pay a price, ' said Chung Chang won, analyst at Nomura Holdings. Samsung Electronics shares fell 0.3% in Monday and closed at 1.22 million won. The unit has fallen 11% per cent since the year, and may have fallen for the second consecutive year after falling 9.9% in 2013. Model reduction The Samsung Group is South Korea's biggest chaebol, and the company often uses year-end management adjustments to set targets for the following year. December 2, 2013, the company appointed 16 top executives, three days later promoted another 475 executives. Samsung declined to comment on the manager's annual assessment. Leading Investment & Nomura analyst Oh Sang Woo, an investment bank, said the mobile business was the most interesting, although this year's post adjustment was less than last year. Samsung needs to be reborn, so any major adjustment to top management can regain tension and change the culture of complacency. Samsung, he said, reacted too slowly to new market trends, giving the smaller companies such as millet an opportunity. The company now needs a strong leadership to make decisive and timely decisions. In fact, Samsung has begun to look for new growth points ahead of management's announcement. Networking equipment people familiar with the matter said that although the mobile division had been the biggest source of profit for Samsung since 2011, it had moved its staff to other sectors to find new growth points through networking equipment. This May, the company replaced the head of the mobile device design team. However, the company's quarterly profit last month hit its lowest record since 2011, with a focus on the Shen Zongjun-led mobile sector. Since the helm of reins in 2009, Shen Zongjun has led Samsung to become the world's largest smartphone maker, with 316 million shipments in 2013, up from twice times the size of Apple. The Wall Street Journal, citing people familiar with the matter, said Shen Zongjun might step down as mobile chief. and Samsung ElectricCo-CEO Yunfugen will be the head of mobile operations while in charge of home appliances and television. Bang, another joint CEO of Apple's Samsung Electronics, is responsible for semiconductors and display panel operations. While Samsung remains the world's largest smartphone maker, market control is falling. The company's smartphone market share was only 24.7% in the third quarter of this year, down from 35% in the same period last year, according to Strategy Analytics, US market research firm. Apple ranked second in 12.3%, and the millet share doubled to 5.6% year-on-year. In the third quarter, Samsung's mobile operating profit was only 1.75 trillion won (about $1.6 billion), well below the 6.7 trillion won in the same period last year. Shen Zongjun, 58, has focused on research and development since joining the Samsung Group in 1984, and is responsible for all aspects of the galaxy's best-selling products. He also led Samsung into the tablet phone industry. Apple launched its new big-screen iphone in September this year, eating into Samsung's market share of tablet handsets, which has attracted a large number of budget-less consumers with ultra-low performance. In order to revive Samsung's growth, the company's leadership needs to further integrate software and hardware, rather than just providing state-of-the-art production technology, Selles Mevavalla Cyrus Mewawalla, a market research firm CM study analyst, said. This is the only way to differentiate it from other Android phone makers. Accelerate restructuring they must be led by software-born people, not just hardware-born people. Other strategies can only delay Samsung's decline, Mevavalla said, and cannot solve long-term problems. The difficulty is that the entire management needs a different mindset. For the 46-Year-old Lee, the Samsung Group's challenge is not just to revive the smartphone business. The family's control of the Samsung Group is under pressure from the government. The government does not encourage the Lee family to control more than 70 companies through its existing cross shareholding structure, with 2% per cent of its shares. Against this backdrop, Lee has accelerated the reorganization plan after his father was hospitalized with a heart attack. Cheil team, the real holding company of the Lee clan, is to launch its IPO next month, before Samsung SDS listed on November 14. Samsung now needs a more flexible and more open minded leadership, managing professionals in the areas of design, software and marketing. ' Samsung now needs a leader who understands the market and encourages subordinates, ' said won, an analyst at Nomura Securities. (Ding Macro)