PROJECT REPORT

ON

COMPARISON BETWEEN SAMSUNG MOBILE & NOKIA MOBILE

Submitted to

SANT BABA BHAG SINGH UNIVERSITY

In the partial fulfillment of the requirements for the award

of the degree of Master in Business Administration

Project Guide Submitted by

Ms. Inderpreet Kaur Akshay Rana

(Assi. Prof.) MBA 4th sem.

SBBSU 15206001
 Declaration
I Akshay Rana undersigned solemnly declare that the report of the project work entitled
“COMPARATIVE ANALYSIS OF SAMSUNG & NOKIA” is an original piece of research
work carried out by me under the guidance and supervision of Miss.Inderpreet Kaur The
information has been collected from genuine & authentic sources.

___________________

(Signature of the Candidate)

 ACKNOWLEDGEMENT

A final project is a golden opportunity for learning and self-development. I consider myself very
lucky and honored to have so many wonderful people lead me through in completion of this
project.

I wish to express my indebted gratitude and special thanks to Miss.Inderpreet Kaur

(ASSISTANT PROFESSOR) IN SBBSU” who in spite of being extraordinarily busy with his
duties, took time out to hear, guide and keep me on the correct path and allowing me to carry out
my industrial project work at their esteemed organization and extending during the training.

_______________________

(Signature of the student)

Akshay Rana

Roll no. 15206001

MBA 4th Semester

TABLE OF CONTENTS

CHAPTERS TOPIC
CHAPTER 1 Introduction to company
(SAMSUNG,NOKIA)
CHAPTER 2 Objective of study
CHAPTER 3 Introduction to topic
CHAPTER 4 Review of literature
CHAPTER 5 Research methodology
CHAPTER 6 Data analysis and interpretation
CHAPTER 7 Findings and suggestions
CHAPTER 8 Conclusion
CHAPTER 9 Bibliography
 CHAPTER 1
COMPANY
INTRODUCTION
 COMPANY PROFILE(SAMSUNG)

Samsung

Samsung Town in the Gangnam Station area in Seoul

Industry Conglomerate

Founded 1 March 1938; 79 years ago

Daegu, Japanese Korea

Founder Lee Byung-chul

Headquarters 40th floor Samsung Electronics Building, 11,

Seocho-daero 74-gil, Seocho
District, Seoul, South Korea[1]
Area served Worldwide

Key people Lee Kun-hee (Chairman)

Lee Jae-yong (Vice-Chairman)

Products Apparel, chemicals, consumer electronics,

electronic components, medical
equipment, semiconductors, solid state
drives, DRAM, ships, telecommunications
equipment, home appliances[2]

Services Advertising, construction,

entertainment, financial services, hospitality,
information and communications technology,
medical and health care
services, retail, shipbuilding

Revenue US$305 billion (2014)[3]

Net income US$22.1 billion (2014)[3]

Total assets US$529.5 billion (2014)[3]

Total equity US$231.2 billion (2014)[3]

Number of 489,000 (2014)[3]

employees

Divisions Samsung Electronics

Samsung C&T Corporation
Samsung Heavy Industries
Samsung SDS
Samsung Life Insurance
Samsung Fire & Marine Insurance
Cheil Worldwide

Website samsung.com
 INTRODUCTION OF SAMSUNG
Samsung Group is a South Korean multinational conglomerate headquartered in Samsung
Town, Seoul. It comprises numerous affiliated businesses, most of them united under
the Samsung brand, and is the largest South Korean chaebol (business conglomerate).
Samsung was founded by Lee Byung -chul in 1938 as a trading company. Over the next three
decades, the group diversified into areas including food processing, textiles, insurance, securities
and retail. Samsung entered the electronics industry in the late 1960s and the construction and
shipbuilding industries in the mid-1970s; these areas would drive its subsequent growth.
Following Lee's death in 1987, Samsung was separated into four business groups – Samsung
Group, Shinsegae Group, CJ Group and Hansol Group. Since 1990, Samsung has increasingly
globalised its activities and electronics; in particular, its mobile phones and semiconductors have
become its most important source of income.
Notable Samsung industrial affiliates include Samsung Electronics (the world's 2nd largest
information technology company measured by 2015 revenues, and 5th in market value),Samsung
Heavy Industries (the world's 2nd largest shipbuilder measured by 2010 revenues), and Samsung
Engineering and Samsung C&T (respectively the world's 13th and 36th largest construction
companies). Other notable subsidiaries include Samsung Life Insurance (the world's 14th largest
life insurance company), Samsung Everland (operator of Everland Resort, the oldest theme
park in South Korea) and Cheil Worldwide (the world's 15th largest advertising agency measured
by 2012 revenues)
Samsung has a powerful influence on South Korea's economic development, politics, media and
culture and has been a major driving force behind the "Miracle on the Han River". Its affiliate
companies produce around a fifth of South Korea's total exports Samsung's revenue was equal to
17% of South Korea's $1,082 billion GDP.
 HISTORY
In 1938, Lee Byung-chull (1910–1987) of a large landowning family in the Uiryeong county
moved to nearby Daegu city and founded Samsung Sanghoe . Samsung started out as a small
trading company with forty employees located in Su-dong (now Ingyo-dong). It dealt in dried-
fish, locally-grown groceries and made noodles. The company prospered and Lee moved its head
office to Seoul in 1947. When the Korean War broke out, he was forced to leave Seoul. He
started a sugar refinery in Busan named Cheil Jedang. In 1954, Lee founded Cheil Mojik and
built the plant in Chimsan-dong, Daegu. It was the largest woollen mill ever in the country.
Samsung diversified into many different areas. Lee sought to establish Samsung as leader in a
wide range of industries. Samsung moved into lines of business such as insurance, securities and
retail. President Park Chung Hee placed great importance on industrialization. He focused his
economic development strategy on a handful of large domestic conglomerates, protecting them
from competition and assisting them financially.
In 1947, Cho Hong-jai, the Hyosung group's founder, jointly invested in a new company called
Samsung Mulsan Gongsa, or the Samsung Trading Corporation, with the Samsung's founder Lee
Byung-chull. The trading firm grew to become the present-day Samsung C&T Corporation.
After a few years, Cho and Lee separated due to differences in management style. Cho wanted a
30 equity share. Samsung Group was separated into Samsung Group
and Hyosung Group, Hankook Tire and other businesses.
In the late 1960s, Samsung Group entered the electronics industry. It formed several electronics-
related divisions, such as Samsung Electronics Devices, Samsung Electro-Mechanics, Samsung
Corning and Samsung Semiconductor & Telecommunications, and made the facility in Suwon.
Its first product was a black-and-white television set.
 Samsung telecommunciation
Samsung Mobile Phones is one of five business units within Samsung Electronics, belonging to
the Samsung Group, and consists of the Mobile Communications Division, Telecommunication
Systems Division, Computer Division, MP3 Business Team, Mobile Solution Centre and
Telecommunication R&D Centre. Telecommunication Business produces a full spectrum of
products from mobiles and other mobile devices such as MP3 players and laptop computers to
telecommunication network infrastructure. Headquarters is located in Suwon, South Korea.
In 2007 Samsung Telecommunication Business reported over 40% growth and became the
second largest mobile device manufacturer in the world. Its market share was 14% in Q4 2007,
growing up form 11.3% in Q4 2006. At the end of November 2011, Samsung sold more than 300
million mobile devices which was a close second after Nokia with 300.6 million mobile devices
sold in the first three quarter of 2011. As of Q3 2012, Samsung is the largest manufacturer of
devices running Google Android with a 46% market share.
On 19 August 2016, Samsung officially released its Samsung Galaxy Note 7. As of 2 September
2016, Samsung announced a voluntary recall and attached to the new exchange program, after
numerous of report showed that the new Samsung Galaxy Note 7 burst and explode. On 10
October 2016, in response to the new incidents, Samsung announced that it would once again
suspend sales of the Galaxy Note 7 and recall all devices worldwide. The next day, Samsung also
announced that it would permanently discontinue the Galaxy Note 7 and cease its production.
 Samsung mission and vision

Mission : Samsung’s mission seems focused in building its brand and becoming a creative
leader in new markets. It looks like Samsung is setto change its reputation of being
fast followers, a company thatsucceeds through watching others pioneer new technologies
andmarkets and then rush in behind. This was seen when Samsung lost ahigh profile case to
iPhone after being accused of the company’sphones were iPhone’s rip-offs that violated a
number of patents.
In spite of its success, Samsung still lags behindApple in terms of which is the
most innovative company. In its missionto capture the title of being creative leader in the
Smartphone market, Samsung leaders believe they must fundamentally transform the company’s
culture and strategies. By doing R&D, Samsung will be ableto control its destiny.

Vision
-
“Inspire the world, create the future”, Is Samsung mission statement in its vision 2020. With this
new vision, Samsungcommitment is to inspire its communities by taking advantage of its
keystrength, creative solutions, innovative products and new technology,as they continue to
promote its new values for Samsung core networks.This includes industry, partners and
employees. Samsung hopes tocontribute a better world and rich experience for all, using this
efforts.Also as part of its vision, Samsung has a plan to reach $400 billion in revenue and be
classified as worlds’ top five brands by 2020.
 Company profile(NOKIA)

Nokia Corporation

Logo since 1966

Main entrance of Nokia headquarters in Espoo

Type  Julkinen osakeyhtiö

 (Public company)

Traded as  Euronext: NOKIA

 Nasdaq Helsinki: NOKIA
 NYSE: NOK

Industry  Telecommunications equipment

 Networking equipment

Founded  12 May 1865; 151 years

ago in Tampere, Grand Duchy of
Finland, Russian Empire
 incorporated in Nokia (1871)

Founders  Fredrik Idestam

  Leo Mechelin
 Eduard Polón

Headquarters Espoo, Uusimaa, Finland

Area served Worldwide

Key people  Risto Siilasmaa (Chairman)

 Rajeev Suri (President and CEO)
 Timo Ihamuotila (CFO)

Products List of Nokia products

Revenue  23.61 € billion (2016)

 12.499 € billion (2015)

Operating  -1.1 € billion (2016)

income  1.697 € billion (2015)

Profit  -912 € million (2016)

 1.194 € billion (2015)

Total assets  44.90 € billion (2016)

 20.926 € billion (2015)

Total equity  20.975 € billion (2016)

 10.523 € billion (2015)

Number of  101,787 (2016)

employees  114,256 (2015)

Divisions  Nokia Networks

 Nokia Technologies

Subsidiaries  Bell Labs

 Withings

Website www.nokia.com
 INTRODUCTION OF NOKIA

Nokia Corporation (Finnish: Nokia Oyj Finnish pronunciation )stylised as NOKIA, is

a Finnishmultinational communications and information technology company, founded in 1865.
Nokia is headquartered in Espoo, Uusimaa, in the greater Helsinki metropolitan area. In 2014,
Nokia employed 61,656 people across 120 countries, did business in more than 150 countries
and reported annual revenues of around €12.73 billion. Nokia is a public limited company listed
on the Helsinki Stock Exchange and New York Stock Exchange. It is the world's 274th-largest
company measured by 2013 revenues according to the Fortune Global 500 and is a component of
the Euro Stoxx 50 stock market index. The company has had various industries in its 151-year
history. It was founded as a pulp mill, and now focuses on large-scale telecommunications
infrastructures, and technology development and licensing. Nokia is also a major contributor to
the mobile telephony industry, having assisted in development of the GSM and LTE standards,
and was, for a period, the largest vendor of mobile phones in the world. Nokia's dominance also
extended into the smartphone industry through its Symbian platform, but was eventually
overshadowed by competitors. Nokia eventually entered into a pact with Microsoft in 2011 to
exclusively use Microsoft's Windows Phone platform on future smartphones. Its mobile phone
business was eventually bought by Microsoft in an overall deal totaling $7.17 billion. Stephen
Elop, Nokia's former CEO, and several other executives joined the new Microsoft
Mobile subsidiary of Microsoft as part of the deal, which was completed on 25 April 2014.
After the sale of its mobile phone business, Nokia began to focus more extensively on its
telecommunications infrastructure business, marked by the divestiture of its Here Maps division,
its foray in virtual reality, and the acquisitions of French telecommunications company Alcatel-
Lucent and digital health maker Withings in 2016, whilst the Nokia name will return to the
mobile phone market through HMD Global.
 HISTORY
Nokia has a long history, dating back to 1865 when Fredrik Idestam, a mining engineer, created
a Pulp mill near the town of Tampere, Finland (then in the Russian Empire). A second pulp mill
was created in 1868 near the town of Nokia, itself nearby Tampere. In 1871, Idestam together
with friend Leo Mechelin formed a shared company and called it Nokia, after the town of the
second pulp mill. For the next 90 years, Nokia on its own would be a forest and power industry
company, with activities such as electricity generation.
In 1922, Nokia was jointly-owned with a trio partnership with Finnish Cable Works (Suomen
Kaapelitehdas, formed in 1917) and Finnish Rubber Works (Suomen Gummitehdas, formed in
1898). Finnish Cable Works manufactured telephone and electrical cables, whereas Finnish
Rubber Works made galoshes and other rubber products, Nokia made respirators for both
civilian and military use from the 30s well into the early 90s.
In 1967, the three companies Nokia Aktiebolag (Nokia Company), Suomen Kaapelitehdas and
Suomen Kumitehdas (by then renamed from Suomen Gummitehdas) merged and created the new
Nokia Corporation, the current form of the modern communications company. Nokia
Corporation now boasted many industries including rubber, forestry, cable, electricity and
electronics. In the 1970s, the newly formed conglomerate started entering the networking and
radio industry. Nokia also started making military equipment for Finland's defence
forces (Puolustusvoimat), such as the Sanomalaite M/90 communicator in 1983, and the M61 gas
mask from the 1960s. The company was also making professional mobile radios, telephone
switches, capacitors, chemicals and personal computers under the name MikroMikko (by the
Nokia Data division) from 1981 to 1991, the predecessor of Fujitsu Siemens. In 1979, Nokia
went into a joint venture with television maker Salora, to create Mobira, which would lay out the
foundation of Nokia's future mobile phone division. In 1981, Mobira launched the Nordic
Mobile Telephone (NMT) service, the world's first international cellular network and the first to
allow international roaming. Then in 1982, Mobira launched the Mobira Senator (Talkman) car
phone, which can be considered as Nokia's first mobile phone. At that time, though, Nokia had
no interest at all in mobile phones and the executive board considered mobile telephones as
"James Bond"-gadgets. It is only due to the Salo, Finland-based Salora-Mobira that the idea was
pushed through.
Balance sheet of SAMSUNG (2015-2016)

Annual | Quarterly ⟩

31- 31- 31- 30- 31-

QUARTER ENDING JUL OCT JAN APR JUL
2015 2015 2016 2016 2016

Cash & Equivalents 11.5B 11.0B 12.6B 10.4B 11.2B ⟩

Short Term Investments 372M 281M 208M 486M 643M

Accounts Receivable 10.0B 9.34B 9.84B 9.43B 9.72B

Inventories 1.61B 1.36B 1.38B 1.39B 1.47B

⟩
Pre-paid Expenses 0 0 0 0 0

Deferred Tax Assets 0 0 0 0 0

Other Current Assets 3.74B 3.69B 3.97B 3.94B 3.85B

⟩
Total Current Assets 27.2B 25.7B 28.0B 25.7B 26.9B

Property, Plant &

2.06B 2.16B 2.13B 2.14B 2.21B
Equipment

Goodwill & Intangibles 10.2B 12.7B 12.7B 12.5B 12.2B

⟩
Other Long-term Assets 4.62B 4.93B 4.77B 4.53B 4.55B

Total Long-Term Assets 16.8B 19.8B 19.6B 19.1B 19.0B

Total Assets 44.1B 45.4B 47.5B 44.8B 45.9B

⟩
Accounts Payable 11.2B 10.6B 11.6B 11.0B 12.1B
Accrued Expenses 0 0 0 0 0

Short Term Debt 2.61B 3.72B 3.84B 3.13B 2.74B

⟩
Other Current Liabilities 3.68B 4.03B 4.37B 4.26B 4.31B

Total Current Liabilities 20.7B 21.8B 23.4B 21.8B 22.8B

Long Term Debt 5.83B 5.31B 5.24B 4.12B 4.08B

Capital Lease
0 0 0 0 0
Obligations

Deferred Income Tax 0 0 0 0 0

Other Long-term
7.81B 8.13B 8.16B 8.13B 8.26B
Liabilities

Total Long-term
13.6B 13.4B 13.4B 12.2B 12.3B
Liabilities

Minority Interest 0 21.0M 21.0M 21.0M 0

Total Liabilities 34.4B 35.3B 36.9B 34.1B 35.1B

Preferred Stock 0 0 0 0 0

Common Par 0 0 0 0 0

Additional Paid-In Capital 0 0 0 0 0

Retained Earnings 0 0 0 0 0

Treasury Stock 0 0 0 0 0

Other Equity 9.75B 10.2B 10.7B 10.7B 10.8B

Total Shareholder's
9.75B 10.2B 10.7B 10.7B 10.8B
Equity
Balancesheet of NOKIA (values in 000's)Get Quarterly Data

Period Ending: Trend 10/31/2016 10/31/2015 10/31/2014 10/31/2013

Current Assets
Cash and Cash Equivalents $6,288,000 $7,584,000 $15,133,000 $12,163,000
Short-Term Investments $0 $0 $0 $0
Net Receivables $4,114,000 $4,825,000 $16,778,000 $19,020,000
Inventory $4,484,000 $4,288,000 $6,415,000 $6,046,000
Other Current Assets $3,582,000 $35,090,000 $11,819,000 $13,135,000
Total Current Assets $18,468,000 $51,787,000 $50,145,000 $50,364,000
Long-Term Assets
Long-Term Investments $0 $0 $8,454,000 $9,556,000
Fixed Assets $1,736,000 $1,492,000 $11,340,000 $11,463,000
Goodwill $5,622,000 $5,680,000 $31,139,000 $31,124,000
Intangible Assets $0 $0 $2,128,000 $3,169,000
Other Assets $3,184,000 $47,923,000 $0 $0
Deferred Asset Charges $0 $0 $0 $0
Total Assets $29,010,000 $106,882,000$103,206,000$105,676,000
Current Liabilities
Accounts Payable $17,811,000 $17,425,000 $33,208,000 $32,164,000
Short-Term Debt / Current Portion of
$78,000 $2,194,000 $3,486,000 $5,979,000
Long-Term Debt
Other Current Liabilities $919,000 $22,572,000 $7,041,000 $7,378,000
Total Current Liabilities $18,808,000 $42,191,000 $43,735,000 $45,521,000
Long-Term Debt $6,758,000 $6,677,000 $16,039,000 $16,608,000
Other Liabilities $7,333,000 $29,863,000 $16,305,000 $15,891,000
Deferred Liability Charges $0 $0 $0 $0
Misc. Stocks $0 $0 $0 $0
Minority Interest $0 $383,000 $396,000 $387,000
Total Liabilities $32,899,000 $79,114,000 $76,475,000 $78,407,000
Stock Holders Equity
Common Stocks $17,000 $18,000 $18,000 $19,000
Capital Surplus $1,030,000 $1,963,000 $3,430,000 $5,465,000
 Period Ending: Trend 10/31/2016 10/31/2015 10/31/2014 10/31/2013
Retained Earnings ($3,498,000)$32,089,000 $29,164,000 $25,563,000
Treasury Stock $0 $0 $0 $0
Other Equity ($1,438,000)($6,302,000) ($5,881,000) ($3,778,000)
Total Equity ($3,889,000)$27,768,000 $26,731,000 $27,269,000
Total Liabilities & Equity $29,010,000 $106,882,000$103,206,000$105,676,000

CHAPTER 2
OBJECTIVE AND
SCOPE OF THE STUDY
OBJECTIVE OF STUDY

 The primary objectives for this financial analyst report are to compare two major
companies within the computer/technology industry, SAMSUNG & NOKIA.

 To analyze the capital structure of the company with the help of leverage ratio.
 CHAPTER 3
(INTRODUCTION TO
TOPIC)
 INTRODUCTION OF TOPIC

COMPARSION BETWEEN NOKIA AND SAMSUMG

This financial analysis report examines two high profile competitors, Samsung And Nokia within
the computer/technology industry in order to evaluate company performance and financial
health. Overall company strategies were reviewed and considered along with the financial
analysis to come to a conclusion for recommendation of investment. There ports introduction
gives an overview to the computer/technology industry and expands on the strategies executed
by Samsung and Nokia.

The financial analysis covers both companies’ common-size income statements and balance
sheets, comparative income statements and balance sheets, and various financial statement ratios
such as liquidity, capital structure and solvency, return on investment, operating performance,
asset utilization and market measures from year 2012 to year2016. A pro forma look ahead
estimated financial performance is generated for each company and assumptions explored that
helped derive the financial data for the pro forma. Conclusions are drawn from the above stated
financial analysis as well as areas for improvement and investment recommendations. Samsung
and Nokia are both well known companies competing in an ever evolving and expanding
industry. The industry is in every segment from personal to educational to professional.Nokia is
a more mature company having been founded in 1939, but Samsung made waves throughout not
only the computer/technology industry but in multiple industries for its ability to rethink
distribution and customized sales direct to customers. While both companies offer both products
and services, Nokia has a slightly more diverse portfolio and is a bit more brand recognized as a
trusted and quality company. From years 2012-2016, Samsung was able to keep downward
pressure on the growth of cost of goods sold while Nokia had strong growth in their sales and net
profit. Through this time span, Samsung secured a lower liquidity risk for its shareholders when
compared to Nokia. The marginal operating performance on average for Samsung was stronger
than Nokia’s operating performance. Only Nokia is a dividend generating stock with Samsung
choosing to not participate in this option for its investors. Samsung’s approach is that instead of
paying out a dividend, those funds are used to reinvest into the company to produce higher
profits and overall create a stronger more financially fit company. Both strategies work to entice
investors as both companies are doing well in the market. Nokia higher sales revenue and
dividends paid out along with a strong and reputable brand name make it an attractive investment
but Samsung’s revolutionary process thinking along with its growth potentials, recent strategic
acquisitions, low liquidity risk, and good return on investment makes a good case for potential
investors to pursue.
The computer/technology industry has many key players with two of the major competitors
being Samsung and Nokia. The computer industry has come a long way since its
first inception with the invention of Electronic Numerical Integrator and Computer in 1946.
This industry is comprised of many items such as computers, monitors, printers, scanners,
mainframes, servers, electronic computer components, networking and workstations to name a
few. The industry started a major growth phase in the 1980’s with the production of
the personal computer and has grown every since with many new products introduced.
Innovations within this industry have had positive rippling effects to outside industries, from
manufacturing to banking. While the United States market is fairly saturated and mature, the
computer/technology industry is very much in the growth phase on a global basis. The
drivers behind this growth are both innovations in technology and especially
increased consumer spending in Asia and Afri ca. The international value of this industry
is expected to grow and surpass $620 billion in 2016, roughly a 27% increase from 2012.
Samsung and Nokia possess major market share within the computer/technology
industry due to brand name loyalty, advanced supply chain management techniques and
producing innovating products for an affordable price.

Samsung And Nokia Strategies

Samsung and Nokia operate in a competitive environment to gain market share at segmented
price intervals. Over the last decade we have seen the price of the average computer
go from close to $2,000 to less than $1,000. In part, pressures to add customers
have lead to price wars between the two competitors. However, the price wars have
not affected the quality of the products in those lower priced tiers. Both firms have
increased marketing efforts to enhance their brand recognition and strived to reduce cost through
improved supply chain management and technology innovation. Both companies have room for
growth, especially as they enter the portable tablet market. It will also be interesting to see how
Nokia fairs in the cell phone market with its recent acquisition of the company Palm and
how Samsung with react to their success or failure within this market segment.
Financial Analysis: Financial Statements: Income Statement

Currency in million Feb 2014 Jan 30,2015 Jan 29, 2016 Jan
of US dollar USD Reclassified Reclassified 28,2017
USD USD USD

Revenue 61133.0 61101.0 52902.0 61494.0

Total revenue 61133.0 61101.0 52902.0 61494.0

Cost of good sold 49462..0 49998.0 43404.0 50041.0

Gross profit 11671.0 11103.0 9498.0 11452.0

Selling general 7446.0 6966.0 6224.0 7234.p0

&
admin expenses
total
R&D expenses 610.0 665.0 617.0 653.0

Other operating 8056.0 7631.0 6844.0 7887.0

expenses total

Operating income 3615.0 3472.0 2654.0 3566.0

Interest expenses -45.0 -93.0 -160.0 -199.0

Interest & 496.0 180.0 57.0 47.0

investment income

Net interest 451.0 87.0 -103.0 -152.0

expense

Currents exchange -30.0 1130 -59.0 4.0

Balance Sheet

Currency in Feb Jan 30,2014 Jan 29,2015 Jan

million of us 01,2013 Reclassified Reclassified 28,2016
dollar USD USD USD USD

Assets
Cash 7764 8352 10635 13913
and
equivalents

208 740 373 452

Short term
investments

7972 9092 11008 14365

Total cash
And
short term
investments

Account 5961 4731 5837 6493

receivable

Total 5961 4731 5837 6493

receivables
 Inventory 1180 867 1051 1301

Prepaid 370 447 539 374

expenses

Finance 1732 1712 2706 3643

division loans

Deferred tax 596 499 444 558

assets

Other current 1775 2590 2513 2262

assets

Total current 1988 20151 242450 29021

assets
 CHAPTER 4
LITERATURE REVIEW
 LITERATURE REVIEW
Samsung vs Nokia while the finish phone maker has updated its handset portfolio at the high end
to compete better with Samsung’s super-successful Razor phone, the refresh has been less than
inspired…..[Nokia] high-end phones are small, but they are boxy. Samsung went for wow effect,
creating got to-have-it phones. Now, Nokia is playing catch-up.” it all come down to innovation
and product development ,”says Hoffman .”right now ,Samsung is head and shulders above
Nokia in creating products that consumers desire. Nokia has maintained their market share ,but
they are using price and marketing dollars as the weapon.”…surely the RAZR was a brilliant
move….something as simple as name a phone Razor has created enormous buzz for the
company, says Kelleher. Granted, the Razr is a sleek little piece of telephonic technology ,but the
branding has given the phone cache. Kelleher makes a good point. When you mention Razr,
people know what you are talking about. Just try and picture what the Nokia 6170 looks like.
Great point . And according ,Nokia ‘s pushing hard into emerging markets with low cost phones
,which while hitting margins, are building presence for the long term.34% increase in handset
volumes vs a 25% sales increase …..To find growth, Nokia is venturing into emerging markets,
such as China and Russia….Nokia is looking out for the long term by penetrating emerging
markets. But it will take some time for the margins to improve as these consumers upgrade to
premium handsets. Nokia appears to have positioned itself well because gaining recongnition in
these markets while they are still developing will give it an important market presence moving
forward Nokia’s strategy may be more sustaintable than Samsung”s “wow!” strategy if it
suceeds in building deep moats in emerging markets. Popularity of fashion and design can be
fleeting, a fact which Nokia now know well. Also , one weakness I have noticed in the RAZR
currently is that it lacks many advanced functions which new smartphones have. It would also be
interesting to see Motorola’s share of sales inside and outside the US , vs Nokia. Samsung could
be overly US-dependent….perhaps for another post .

If you've gone shopping for a laptop in the last, oh, decade, you've undoubtedly run
into two behemoth manufacturers, samsung& Nokia. They're inescapable,
omnipresent in any computer aisle outside of an Apple Store. They also make
excellent laptops, with several Editors' Choice systems between them. Collected here
are ten choice laptops, across multiple categories. In some instances, b oth
manufacturers make category-leading devices, and choosing between them is a
question of price and what specifications meet your unique needs. We pit samsung
and nokia comparing five great laptops from each, to see how the two laptop
manufacturers stack up.If you want business capability, you have both the samsung
 Elite Book 8460p and the Nokia Latitude E6430 ATG to choose from. Both offer
first-class performance with a dash of rugged construction thrown in for those whose
work takes them out of the office. The Latitude E6430 ATG holds the Editors' Choice
crown, but the Elite Book 8460p offers similar capabilities and less intense
ruggedization for half the price.

Media laptops are also neck in neck, with both the Samsung Inspiron 17R Special

Edition (7720) and theNokia Envy 17 (2012) packing plenty of features into slick -

looking 17-inch desktop replacements. The Nokia Envy 17 is a bit more expensive

(by about $200), but it also is our Editors' Choice with a Blu -ray player, Beats Audio,

and a gorgeous 1,920-by-1,080 resolution display.In other areas there are clear

leaders, where either Samsung and Nokia have carved out a niche and produced clear

winners. For example, samsung doesn't have the dedicated gaming line-up that Nokia

has in the Alien ware brand. Alien ware may not be the only gaming system on the

market, but the Alien ware M17x R4 leads the category as an Editors' Choice thanks

to top performance scores and all the flashy extras a gamer could want.If you want

portability, Nokia’s line of ultra books boasts several of the best to come through the

labs, like the stylish Samsung Envy 4-1043cl, the glass-covered Nokia Envy 14

Spectre, or the business-minded Nokia Folio 13-1020us (another Editors' Choice

winner). But while Samsung has made a strong play in the ultra book category, Nokia
has continued to churn out excellent desktop replacements, like the Samsung Inspiron

15R Special Edition (7520) and the Nokia XPS 15 (Summer 2012).No matter what

you're looking for in a phones Samsung & Nokia have divided up the pie rather well,
and between the two, there's something for almost everyone.
 CHAPTER 5
RESEARCH
METHODOLOGY
RESEARCH METHODOLOGY

Research is the systematic and objective search for the analysis of the information relevant to the
identification and solution of any problem in the field of channel development. The objective
behind this project was to get a deep insight into the answers To the question “ what are the
general problem faced by the subscriber and what they expect from mobile handsets provider and
study of current market”. The object of the survey was the electronic companies.

The essence of research conducted by us is to analyze the present market position of SAMSUNG
AND NOKIA among its competitors and the problem which are being faced by customer,
wholesaler, and retailers .The eventual objectives are to suggest some recommendation to the
company so as to enable them to increase their market share.

According to prof. Philip Kotler ,“ Marketing research is the systematic design, collection,
analysis and reporting of the data and finding relevant to specific marketing situation facing the
company”.

Developing the research plan

The second step of marketing research process calls for developing the most efficient plan for
gathering the need information. While designing a research plan we have to take decisions
regarding data sources, search approached, search instruments, sampling etc. there are two plan
contact which are as follows:-

Data sources

There are two types of data sources:-

• Primary data

• Secondary data

• Primary data :- Personal interviews are conducted which enable collection of oral verbal
response. This is fact to face contracted with structured or sometime even unstructured patterns.
This helps in obtaining indent information.

• Secondary data:- Secondary data can be obtained from different magzines and annual reports
,financial documents .
 CHAPTER 6
DATA ANALYSIS
AND INTERPRETATION
Now each parameter will be taken separately and discussed in detail.

1) Current ratio of Samsung company and Nokia company?

Current Ratio = Current assets (2:1)

Current Liabilities

Company Samsung Nokia

2012 2.013 1.345
2013 2.121 1.207
2014 1.074 2.977
2015 2.356 2.221
2016 1.278 1.097

2.5

samsung
1.5
nokia

0.5

0
2012 2013 2014 2015 2016

Interpretation:- The above diagram depicts the current ratio of Samsung and Nokia. In which
the comparision of several years are done. As comparision withNokia the current ratio of
Samsung is less . The asset base of Nokia is more strong than Samsung.
 2) Debt Equity ratio

Debt equity ratio = total liablities/ total shareholders fund (1:2)

Company Samsung Nokia

2012 1.747 1.149
2013 1.898 1.203
2014 1.354 1.910
2015 1.203 1.816
2016 2.966 2.052

2.5

2
samsung
1.5 nokia

0.5

0
2012 2013 2014 2015 2016

Interpretation:- In the above comaprision of debt equity of Samsung and Nokia for various
years, we analyze that Samsung have a long term position in the market as there they debt equity
is more satisfactory than Nokia i.e. they are using outside funds instead of using equity.
 3) Profit margin ratio
Profit margin ratio = Net Income/net sales

Company Samsung Nokia

2012 2.458 1.322
2013 2.077 1.390
2014 2.087 1.545
2015 3.077 2.680
2016 4.168 2.763

2 samsung
nokia
1

0
nokia
2012
2013 samsung
2014
2015
2016

Interpretation:-
The above diagram depicts that currently samsung is scoring good profit margin as comparision
with Nokia. Also in the past years the performance of samsung is much better than Nokia.
 4) Return on assets

Return on assets = net income/avg. total assets

Company Samsung Nokia

2012 0.680 0.762
2013 0.778 0.615
2014 0.04 0.613
2015 0.115 0.516
2016 0.513 0.639

0.8

0.6

0.4
samsung

0.2 nokia

0
nokia
2012
2013 samsung
2014
2015
2016

Interpretation:- From the above we can analyze that there is a positive result of nokia as
compared to samsung.
 5) Cash ratio

Cash ratio= cash+cash equivalents/total current liabilities

Company Samsung Nokia

2012 0.431 0.457
2013 0.536 0.286
2014 0.419 0.191
2015 0.562 0.308
2016 0.561 0.295

0.6

0.5

0.4

samsung
0.3
nokia

0.2

0.1

0
2012 2013 2014 2015 2016

Interpretation:-
From the above figure we analyze that the cash ratio of both companies are less than 1and the
companies are not able to pay their short term liabikties. Both companies need to improve
performance.
6) Liquidity ratio( Quick Ratio)

Acid Test Ratio = Quick Assets

Current liabilities

Company Samsung Nokia

2012 1.063 1.130
2013 1.083 1.002
2014 1.009 0.828
2015 1.297 1.079
2016 1.223 0.965

1.4

1.2

0.8
samsung
Nokia
0.6

0.4

0.2

0
2012 2013 2014 2015 2016
 7) According to the different type of ratios which company is best?

Answer No. of people

Samsung 30
Nokia 20

Column1
35

30

25

20

Column1
15

10

0
samsung nokia

Interpretation:-
Out of 50 respondents 30 says Samsung company is best while 20 were says Nokia.
 8) . Why are you prefer Samsung or Nokia?

Answer No. of people

Features 05
Quality 30
Price 15

No.of people

5
15

features
quality
price
30

Interpretation:
Out of the 50 respondents 05 prefer their company for feature , 30 for quality,15 prefer their
prices .
 9) . Which provide you better touch?

Answer No. of people

Samsung 35
Nokia 15

Column1

35

30

25

20 Column1

15

10

0
samsung nokia

Interpretation:
Out of 50 respondents 35 says dell touch is better while 15 says Hp.
 10) . Which among has more features ?

Answers No. of people

Samsung 20
Nokia 30

Column1

30

25

20
Column1
15

10

0
samsung Hp

Interpretation:
Out of 50 respondents 30 says Nokia has more features rather than Samsung.
 11) Are you satisfied with the price of Samsung or Nokia?

Answers No. of people

Yes 15
No 35

Column1

15

yes
no

35

Interpretation:
Out of 50 respondents only 15 respondents are satisfied with their particular company while 35
were not satisfied.
 12) which among these provide you better after sale?

Answer No. of people

Samsung 25
Nokia 25

Column1

samsung
nokia

Interpretation:
In this equal interpretation given to both companies.
 13) . Which would you prefer business point of view?

Answers No. of people

Samsung 39
Nokia 11

Column1

11

samsung
nokia
39

Interpretation:
Out of 50 respondents 39 says Samsung company best business point of view while only 11 says
Nokia is best according the business.
CHAPTER 7
FINDINGS
From the analysis of this research study the following recommendation were drawn:

 Samsung Smartphone producers should concentrate on brand loyalty and perceived

quality. Students have high brand loyalty towards a brand if they are satisfied with the
product delivered by it. This is why Samsung should focus their strategy to create or
attract loyal customers which can be done through delivering a high quality products, this
will result in establishing a long term commitment with loyal customers who will not
switch easily to another brand, compared to nonloyal customer who can switch easily.
 In which the comparision of several years are done. As comparision withNokia the
current ratio of Samsung is less . The asset base of Nokia is more strong than Samsung.
 Company is earning good profits and going towards development.
 Increase in shareholder`s fund.
 Net income and profits are increasing.
 Company is in profitable position and can make expansion easily.
 Working capital turnover ratio of the company is not satisfied.
 CHAPTER 8
CONCLUSION
Working on Nokia & Samsung project gave me a opportunity toapply my skills and knowledge,
which We had gainedpreviously.It gave us a opportunity to see working an organization.It was
an amazing experience with learning all the way, whichhelp us to brush up our knowledge.
CHAPTER 9
REFERENCE
 Research paper of Prasanta K Reddy

 www.geocities.com/kstability/content/index.html

 http://en.wikipedia.org/wiki/banking in india

 www.rbi.org.in