Samsung newbies learn about biz in emerging markets

Forty-nine new employees of Samsung Corp., the trading arm of Samsung Group, gathered together Thursday to make presentations on the results of their participation in Global Midas, the company’s new training program for new recruits.

They shared stories of their challenges of 5 million won (4,413 U.S. dollars) in emerging markets such as Vietnam, Kazakhstan and Indonesia and how they achieved an average operating profit ratio of 39 percent.

○ Unpredictability in emerging markets

A six-person team named “Charm” went to Kazakhstan in late September as Samsung’s first team to take the challenge in that country. Its schedule for a meeting with a potential buyer was perfect. The team members thought that the only thing left was the negotiations.

When they looked for the potential buyer after arriving in Kazakhstan, however, they were told to return home because the buyer was on a business trip. The situation proved totally different from what they learned in training on the etiquette for treating personnel from partner businesses. No one paid any attention to them as they had nothing to do with their own tasks.

Knowing no Russian except for “Thank you,” they had to resort to body language. After stubborn sales pitches, they finally sold 1.85 million won (1,633 dollars) worth of leggings to earn operating profits of 950,000 won (838 dollars).

The recruits decided to continue the momentum and sell adhesive bandages. To their surprise, a new law required them to win a six-month certification for their products. They eventually gave up their new project.

“In an emerging market, unpredictable things kept happening. I respect my seniors who developed new markets,” said Charm member Moon Seong-hyeon, 28.

○ Credibility first

Another team named “Delight” took on its challenge in Vietnam. The business model members used was buying bean bags and selling them in the Korean market.

The team also had an unexpected turn of events as a Vietnamese supplier did not answer phone calls just when the two sides were about to sign a contract.

They hurriedly look for another supplier. While team leader Yang Shin-hyeok was negotiating with a potential new supplier, the initial supplier called Yang on his mobile phone and said, “It`s way past our meeting time. Where are you?”

The Delight team was clearly perplexed but eventually learned that its taxi driver took members to the wrong place, which happened to be a bean bag maker. Had they ignored the call and proceed with the negotiation with the new supplier, the team had a better chance of making a deal.

Credibility was more important than money, however. The team returned to the initial provider and reached a deal with favorable conditions. Delight finally sold 5.2 million won (4,590 dollars) worth of bean bags and earned 1.98 million won (1,748 dollars) in operating profits.

“I just thought it was cool to work for an international trading company,” Yang said. “Since I got firsthand experience in exploring an emerging market, I`ve learned that the whole process is never simple.”

sun10@donga.com