1 paragraph response to each Colleague

Running head: THROUGHPUT ACCOUNTING 2

THROUGHPUT ACCOUNTING 2

Throughput Accounting: Samsung

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Institution

Date

The company I chose is Samsung. Samsung is a South Korean international corporation located in Seoul. The corporation deals with the manufacturing of mobile phones, LED and LCD panels, memory chips, televisions, NAND flash, laptops, and many others. Samsung is the biggest South Korean company. In 2019, the corporation was the second-biggest technology entity in the world in terms of revenue. Samsung recorded total revenue of approximately $206 billion in 2019. The market cap stood at around $302 billion in the same year. The company has always emphasized on innovation in its strategies throughout the years.

In 2014, Samsung declared its decision to put a total of $14.7 million in the construction and development of a new chip facility in South Korea. The decision came as the entity’s smartphone business was becoming enfolded by Apple, one of the world’s biggest technology company, and undercut by Lenovo (Lee, 2014). Considering Samsung is the biggest producer of memory chips, that decision implied the company’s decision to enhance its competitiveness in the market. This decision had tremendous effects on investments in operations. In terms of people, for instance, the decision required the entity to employ skilled labor who will be able to work on the new facility. The decision also required Samsung to invest more in software and innovation.

When considering the decision with regard to throughput Accounting. Samsung made the right decision. The decision was backed by vital information about the current market and the company’s competitiveness. That means that Samsung had adequate information about the increasing demand for semiconductor devices and the opportunity to acquire more profits and revenues from the production of the memory chips. The decision, therefore, aligns with the aspect of throughput Accounting which concentrates on the measures that steer behaviors in major areas towards attaining organizational objectives and goals (Corbett, 2006). This is vital in management.

References

Corbett, T. (2006). Three-questions accounting. Strategic Finance, 87(10), 48-55.

Lee, Y. (2014). Samsung Electronics makes $14.7 Billion Bet with New South Korean Chip Plant. Reuters. Retrieved from: https://www.reuters.com/article/us-samsung-elec-investment-chips-idUSKCN0HV01R20141006