Evaluating the Activities of Transnational Corporations’ Subsidiaries in Ukraine (Example of Samsung Electronics Ukraine Company, LLC)

Abstract

The article is aimed at studying the activities of branches of foreign corporations on the territory of Ukraine on the example of Samsung Electronics Ukraine Company LLC and determining the prospects for its further development in the domestic market. During the study, the essence and main characteristics of transnational corporations (TNCs) and the process of transnationalization are considered. The approaches of various authors, scientists and scholars to the interpretation of the concept of «transnational corporation» are examined. The special features of TNCs that distinguish them from ordinary companies are specified. The history of creation and development of the well-known technology corporation Samsung Electronics Co. Ltd. is studied. In the course of the study the rating of the most profitable companies in the world according to the «net revenue» indicator was analyzed and the place of Samsung Electronics Corporation therein was specified. The Samsung Electronics’ place in the global market of electronics, technology and telecommunications is determined. The rating of the leading most popular brands of mobile phones in both the world and the domestic markets is considered and the position of the Samsung brand in the rating is identified. Thus, the company’s competitors in Ukraine and the world are defined. The scale of activity of Samsung Electronics Corporation branch in Ukraine is analyzed. The dynamics of indicators of «net income» and «cost of sold products (goods, works, services)» of Samsung Electronics Ukraine Company over recent years are analyzed. The dynamics of changes in the indicators of «gross profit» and «net financial result (profit)» of the company over recent years is researched. Through the analysis of the dynamics of financial results, a comprehensive assessment of the activities of Samsung Electronics Ukraine Company LLC is provided. The problems of functioning of branches of foreign corporations on the territory of Ukraine are disclosed and prospects of development of their branches are determined (example of Samsung Electronics Ukraine Company LLC). The conclusions are drawn on the importance of the branch of the foreign corporation Samsung Electronics Co. Ltd for the Ukrainian market of technology, electronics and telecommunications in particular and the national economy in general.