By DIVYA RAGHU VAMSHI SAI KRUSHI HARSHA GAUTHAM HANUMANTH RAO REVENUE MAXIMIZATION Vs PROFIT MAXIMIZATION

Established in 1938 Founder : Byung chull lee, Lee kun-hee Present CEO : Oh – Hyun Kwon Headquarters: Seoul, South Korea Industry: Consumer electronic Telecom equipment Semiconductors Home appliances Has 285 overseas operations within 67 countries Revenues: US $ 1,43,069 Millions Profit: US $ 14,878 Millions Employs approximately 2,21,700 people SAMSUNG Byung chull lee Lee kun-hee

VISION Inspire the world create the future MISSION The main mission is that to be the best company VISION AND MISSION OF SAMSUNG

Mobile Hospitality solution Semiconductor LCD panel Telecommunication Storage Fiber optics Television Mp3 Cameras Computers Printers Home appliances PRODUCTS

Established: on April 1, 1976 Founders: Steve Jobs, Steve Wozniak, and Ronald Wayne Present CEO : Tim Cook Headquarters : California, United States Industry: Computer hardware Computer software Consumer electronics Digital distribution Total Revenue: US $ 1,08,249 Million’s (FY 10-11) Profit: US $ 34,205 Million’s (FY 10-11) Employs:60,000 No. of Locations: 500 retail stores APPLE Steve Jobs

VISION “Man is the creator of change in this world. As such he should be above systems and structures, and not subordinate to them.” MISSION “Apple is committed to bringing the best personal computing experience to students, educators, creative professionals and consumers around the world through its innovative hardware, software and internet offerings.” VISION AND MISSION

Products competitors PC IBM, Dell, Acer, HP, Lenovo iPod series Samsung, SanDisk, Creative, Microsoft Zune, Napster Amazon.com, Napster iPhone series Samsung, Google, Motorola iPad Amazon’s kindle, Dell, HP, Samsung Operating system Microsoft windows, Android OS, Linux PRODUCTS OF APPLE

Revenue is essentially another word for SALE’S. or how much of the goods or services that your business produces is sold to consumers. Revenue maximization strategy dictates that a business should do what ever is require to SELL as much as of its products, so it can build major market share and a reputation in the market. Easily helps in entering into new markets. REVENUE OR SALES MAXIMIZATION :-

Profit maximization refers to the process whereby companies focus on maximizing profit or getting the best possible profit in their particular kind of business. Profit maximization tehniques include: >> Cost minimization >> Waste reduction >> Lean manufacture >> Flat organization structure >> Labour reduction through investment in appropriate technology >> Labour cost reduction >> Reduction of organizational fat by focusing on the company's core business >> Product profit margin increase through value optimization >> Developing new markets >> Product line extension PROFIT MAXIMIZATION :-

YEAR : Sales :-$. 1,43,069$. 1,34076$. 1,19,697 Net Profit :-$. 14,878$. 16,759$. 10,704 Profit Margin : % % 8.94 % SAMSUNG APPLE FINANCIAL POSITION Amount($.) in “Million’s” *[ Profit Margin = (Net Profit/Sales)*100 ]

GRAPHICAL REPRESENTATION OF FINANCIAL POSITION SALESNET PROFIT PROFIT MARGIN in (%)

Even though the sales of Samsung are higher than Apple, Net Profit and Profit Margins are less when compared to Apple. This is mainly because Samsung trying to acquire the major share in market by making sales as much as possible as per “Revenue Maximization” and Apple is getting huge margins or Profit by adopting “Profit Maximization” concept and in turn getting more return on investment to its share holders.

BUSINESS OF SAMSUNG AND APPLE

STRATEGY OF APPLE  Cost leadership strategy has been highly adopted by apple, in it’s endeavors of ensuring competitiveness and success in technological industry.  The company’s management has been able to draw policies and strategies that are aimed at ensuring that the company is lowest cost producer and distributor.  By strategizing on cost efficiency, the success and stability of the company is enhanced.  By lowering the cost of production and management, Apple Inc has given golden opportunities on determining prices of it’s products, thus enhancing its competition.  Some of the practices adopted by the company in executing the cost leadership strategy is through minimization of operating cost, lowering distribution costs, high control on labor costs as well as reduction of input costs.

STRATEGY OF SAMSUNG  Managers care more about long-term profits than short-term profits.  Samsung is good at motivating its employees.  Samsung group thinks strategically: It spots markets that are about to take off and places huge bets on them.  The bets that Samsung Electronics placed on D-RAM chips, liquid- crystal display screens and mobile telephones paid off handsomely.  solar panels, energy-saving LED lighting, medical devices, biotech drugs and batteries for electric cars.

Software enhances the appeal of the hardware compatibility Technology High cost,High quality. Quality Limited products to sell in retail store Distribution Direct owned store Online stores Marketing Low cost, expectable quality Superior Quality R& D Investing on scientific talents. Superior efficiency New product year M net software Superior customization New digital technology Superior innovation STRATEGY OF APPLE AND SAMSUNG

 From the above tables and graphs, we can know that even though “Samsung” has more sales than “Apple” the Net Profit’s and Profit Margin’s are less than APPLE. Hence we can conclude that Samsung is following “REVENUE MAXIMIZATION” concept and where as APPLE is following “PROFIT MAXIMIZATION” concept and earning huge profits than Samsung.  But we can say Major market share is occupied by Samsung. CONCLUSION

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