Down Memory Lane.(Samsung Electronics Company)(Brief Article)

Electronic Business Asia, April, 2001 by Pereira, Mario

It is a classic case of re-engineering. Just a few years back Samsung Electronics was wallowing in debt that was 300% of the total value of the company. Topping that were the twin disasters--the crash of memory-chip prices, followed in 1997 by Korea's financial collapse. When DRAM prices plunged lower than the cost of production, Samsung was quick to realize that its reliance on a volatile commodity product was a very risky strategy.

That provided a golden opportunity for Samsung executives to reverse many of the practices that have long characterized Korea's chaebols. For starters, the company dramatically reduced its debts, sold or spun off dozens of assets unrelated to its core businesses, set up financial and managerial firewalls between itself and other...

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