Galaxy Note 7 recall recall rescheduled
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In this research report we will discuss about management and below are the summaries point:-
Samsung launched the Galaxy Note 7 in August 2016, but the sales turned sour due to faulty batteries that caused explosions.
The crisis affected the company's reputation and led to a recall of the worldwide product, causing a 7% drop in the stock market.
The case highlights the importance of effective crisis management and communication using theories such as Situational Crisis Communication and Image Restoration.
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Running head: MANAGEMENT
Management
Name of the Student
Name of the University
Author Note
Management
Name of the Student
Name of the University
Author Note
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1MANAGEMENT
Abstract
Samsung launched the Galaxy Note 7 for recording the pre orders and the sales in the month
of August though the sales turned sour soon. The company had to initiate the recall of the
first version of the Note 7 due to the faulty level of the batteries that were reported to have
overheated towards explosion. The counts of the deficit battery and the tensions thus enabled
the company to struggle and recall the worldwide notion. The assignment highlights the case
of the Samsung Galaxy Note 7 regarding the effective management of the crisis
communication in the light of the situational Crisis Communication Theory and the Image
Restoration Theory with the examination of various elements of the related case.
Abstract
Samsung launched the Galaxy Note 7 for recording the pre orders and the sales in the month
of August though the sales turned sour soon. The company had to initiate the recall of the
first version of the Note 7 due to the faulty level of the batteries that were reported to have
overheated towards explosion. The counts of the deficit battery and the tensions thus enabled
the company to struggle and recall the worldwide notion. The assignment highlights the case
of the Samsung Galaxy Note 7 regarding the effective management of the crisis
communication in the light of the situational Crisis Communication Theory and the Image
Restoration Theory with the examination of various elements of the related case.
2MANAGEMENT
Developed in the year 1938, the Korean brand, Samsung has got famous in the current
decade. With the rising rate and the number of the competitors, Samsung strategically plans
to promote innovative technically advanced devices to stand out in the competitive market of
the technology throughout the globe (Jungah Lee & Yoolim, 2016). On the date of August 19
of the year 2016, the company faced one of the most major and significant threat towards its
corporate image after the report of the globe revealed some of the complications with the
latest product of the company, Samsung Galaxy Note 7 (Yun et al., 2018). The reports
highlighted the malfunctions of the lithium battery within the galaxy note 7 that caused the
device for unexpected explosion endangering the safety of the consumers.
The assignment focuses on the major crisis faced by the company in the year 2016
regarding the release of their latest model, Galaxy Note 7. People who ordered the phone in
the pre order posted damaged and burned pictures of the phone which made the company
organize for another research and quality test (Mozur, 2017). Samsung offered exchange of
all the damaged phone due to the battery issues of Galaxy Note 7. The federal Aviation
Administration forbidded the use of Galaxy Note 7 on all the flights which overall affected
the stock market of the company to diminish by 7% (Deng et al., 2017). Though the
company has restricted the sales of the product, the situation of the crisis adds numerous
specificity to the current research agenda.
The crisis of note 7 of the company had been a compelling case expanding the
insights of the delicacies related to the organizational communication crisis from the
traditional media base for the inclusion of the digital sphere (Peterson, 2016). While the
social media platform has enabled the capability towards the aiding of the organization for
offering some of the major clarity towards the stakeholders, it is the role of the organization’s
communication crisis that had left these entities to be more susceptible towards the
impairment.
Developed in the year 1938, the Korean brand, Samsung has got famous in the current
decade. With the rising rate and the number of the competitors, Samsung strategically plans
to promote innovative technically advanced devices to stand out in the competitive market of
the technology throughout the globe (Jungah Lee & Yoolim, 2016). On the date of August 19
of the year 2016, the company faced one of the most major and significant threat towards its
corporate image after the report of the globe revealed some of the complications with the
latest product of the company, Samsung Galaxy Note 7 (Yun et al., 2018). The reports
highlighted the malfunctions of the lithium battery within the galaxy note 7 that caused the
device for unexpected explosion endangering the safety of the consumers.
The assignment focuses on the major crisis faced by the company in the year 2016
regarding the release of their latest model, Galaxy Note 7. People who ordered the phone in
the pre order posted damaged and burned pictures of the phone which made the company
organize for another research and quality test (Mozur, 2017). Samsung offered exchange of
all the damaged phone due to the battery issues of Galaxy Note 7. The federal Aviation
Administration forbidded the use of Galaxy Note 7 on all the flights which overall affected
the stock market of the company to diminish by 7% (Deng et al., 2017). Though the
company has restricted the sales of the product, the situation of the crisis adds numerous
specificity to the current research agenda.
The crisis of note 7 of the company had been a compelling case expanding the
insights of the delicacies related to the organizational communication crisis from the
traditional media base for the inclusion of the digital sphere (Peterson, 2016). While the
social media platform has enabled the capability towards the aiding of the organization for
offering some of the major clarity towards the stakeholders, it is the role of the organization’s
communication crisis that had left these entities to be more susceptible towards the
impairment.
3MANAGEMENT
Situational crisis communication theory is one of the theory in the field of the crisis
communication that suggest that the crisis managers should tend to match the response of the
crisis strategy towards the level of the responsibility and the threat of the reputation posed by
the crisis (Samsung’s & Snow, 2018).
Image Restoration Theory is one of the theories in the field of the communication crisis in the
domain of the corporate government that tends to outline the relevant strategies that is
generally utilised for the restoring of the images in the event where the reputation has been
damaged (Barbash, 2016). This theory is relevant to the above case study of the crisis raised
due to the explosion of the battery of Galaxy Note 7 that damaged the market reputation of
the brand of the Samsung among the stakeholders of the company in the global market.
As per the insight of both the theories, the company handles the situation very
tactfully by stopping the production of the product and enabling free exchange of the product
to the customers who had damaged phones (Shamsi, Ali & Kazmi, 2017). With the
consideration of the effective crisis communication principle, this case study highlights the
factors such as the accuracy, the quickness and the consistency (Thomas, Zeron & O’Rourke,
2017). However as per the case occurred in August, the apologetic response of Samsung
caused some of the strong public backlashes demonstrating the lack of the adherence towards
the fundamental contexts regarding communication crisis.
The theoretical framework of the Image Restoration theory, undertaken by the company
to resolve the crisis and go back to the normal operations include the following image
restoration strategies.
1. Evading of the responsibility - The company attempted to evade the responsibility by
some of the main components. These include
Situational crisis communication theory is one of the theory in the field of the crisis
communication that suggest that the crisis managers should tend to match the response of the
crisis strategy towards the level of the responsibility and the threat of the reputation posed by
the crisis (Samsung’s & Snow, 2018).
Image Restoration Theory is one of the theories in the field of the communication crisis in the
domain of the corporate government that tends to outline the relevant strategies that is
generally utilised for the restoring of the images in the event where the reputation has been
damaged (Barbash, 2016). This theory is relevant to the above case study of the crisis raised
due to the explosion of the battery of Galaxy Note 7 that damaged the market reputation of
the brand of the Samsung among the stakeholders of the company in the global market.
As per the insight of both the theories, the company handles the situation very
tactfully by stopping the production of the product and enabling free exchange of the product
to the customers who had damaged phones (Shamsi, Ali & Kazmi, 2017). With the
consideration of the effective crisis communication principle, this case study highlights the
factors such as the accuracy, the quickness and the consistency (Thomas, Zeron & O’Rourke,
2017). However as per the case occurred in August, the apologetic response of Samsung
caused some of the strong public backlashes demonstrating the lack of the adherence towards
the fundamental contexts regarding communication crisis.
The theoretical framework of the Image Restoration theory, undertaken by the company
to resolve the crisis and go back to the normal operations include the following image
restoration strategies.
1. Evading of the responsibility - The company attempted to evade the responsibility by
some of the main components. These include
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4MANAGEMENT
a. Provocation where the company declared that the explosion of the battery of
the Samsung galaxy note 7 was the result of some of the battery issues that
constituted lithium components (Jonathan & Jeong, 2016).
b. Defeasibility – the company furthermore accepted the fact how the new model
of the phone was set for sale and pre ordering before the security, research and
quality control investigation to the market.
c. Accident- The Company explained their deep sorrow and explained the
explosion of the battery of the galaxy note 7 as an accident that was not at all
intended to happen and threaten the public transport and the safety of the
human beings in the state where it has been sales, mostly on France (Wu et al.,
2018).
2. Correction Actions – the company announced its exchange programme and offered to
give new and certified safe galaxy note 7 to the customers who bought the damaged
one previously (Gibbs, 2017). Though the safe and the certified model got burned in
USA on October 10, and after at South Korea, the company finally removed the
model from the global market and presented their apology to the buyers (Hern, 2017).
3. Mortification - much like the factors and the measures taken by the company to seek
forgiveness and to hold their position in the global technological market of
competition, the company offered free exchange programme and compensation to the
users who had bought damaged phone before (Baig, 2017).
Though the company had put forward some of the effective strategies for the purpose of
the crisis of the explosion of the battery of Samsung Galaxy Note 7, there had been
tremendous loss of the reputation of the company in the global market. People started to go
a. Provocation where the company declared that the explosion of the battery of
the Samsung galaxy note 7 was the result of some of the battery issues that
constituted lithium components (Jonathan & Jeong, 2016).
b. Defeasibility – the company furthermore accepted the fact how the new model
of the phone was set for sale and pre ordering before the security, research and
quality control investigation to the market.
c. Accident- The Company explained their deep sorrow and explained the
explosion of the battery of the galaxy note 7 as an accident that was not at all
intended to happen and threaten the public transport and the safety of the
human beings in the state where it has been sales, mostly on France (Wu et al.,
2018).
2. Correction Actions – the company announced its exchange programme and offered to
give new and certified safe galaxy note 7 to the customers who bought the damaged
one previously (Gibbs, 2017). Though the safe and the certified model got burned in
USA on October 10, and after at South Korea, the company finally removed the
model from the global market and presented their apology to the buyers (Hern, 2017).
3. Mortification - much like the factors and the measures taken by the company to seek
forgiveness and to hold their position in the global technological market of
competition, the company offered free exchange programme and compensation to the
users who had bought damaged phone before (Baig, 2017).
Though the company had put forward some of the effective strategies for the purpose of
the crisis of the explosion of the battery of Samsung Galaxy Note 7, there had been
tremendous loss of the reputation of the company in the global market. People started to go
5MANAGEMENT
for the competitors of Samsung and the company lost a major portion of his share in the stock
market.
The role of the media that include both the social media and the traditional one is
immense since these serves as the tools for the brands (Epstein, 2016). The role of the media
in the case of the crisis communication targets with the emergence of the web 2.0, the
community people gets the opportunity for creating diffuse content. With the facilitation of
the interactive content and exchange of the knowledge regarding the opinions and the
emotional expressions, the media help the company for avoiding the crisis situation.
The evaluation was successful since in the time of the double edged situation, the
company was helpful from the media which helped the crisis to go manageable for the crisis
manager to calm down the situation and communicate with the stakeholders and the people
towards re trusting the brand and the products of Samsung and forget the crisis as an accident
(Gibbs, 2017).
Some of the actions taken by others for distancing themselves from the organization
included the preference of the other competitor companies in the market (Jokinen, 2017). As
per the crisis that arosed for the Galaxy Note 7, the people did rally for the challenges and the
explosion that might raise question regarding the safety of the human being in the public
transport, which led the airline companies and the airport authority to forbid the use of the
model in the air.
These actions and the communication brought some of the quick resolution that included
the company to stop its sales and production and forbidding of the local people to use the
model.
The final resolution of the crisis or some of the potential benefits that resulted includes
the announcement and the declaration by the company towards developing new and improved
for the competitors of Samsung and the company lost a major portion of his share in the stock
market.
The role of the media that include both the social media and the traditional one is
immense since these serves as the tools for the brands (Epstein, 2016). The role of the media
in the case of the crisis communication targets with the emergence of the web 2.0, the
community people gets the opportunity for creating diffuse content. With the facilitation of
the interactive content and exchange of the knowledge regarding the opinions and the
emotional expressions, the media help the company for avoiding the crisis situation.
The evaluation was successful since in the time of the double edged situation, the
company was helpful from the media which helped the crisis to go manageable for the crisis
manager to calm down the situation and communicate with the stakeholders and the people
towards re trusting the brand and the products of Samsung and forget the crisis as an accident
(Gibbs, 2017).
Some of the actions taken by others for distancing themselves from the organization
included the preference of the other competitor companies in the market (Jokinen, 2017). As
per the crisis that arosed for the Galaxy Note 7, the people did rally for the challenges and the
explosion that might raise question regarding the safety of the human being in the public
transport, which led the airline companies and the airport authority to forbid the use of the
model in the air.
These actions and the communication brought some of the quick resolution that included
the company to stop its sales and production and forbidding of the local people to use the
model.
The final resolution of the crisis or some of the potential benefits that resulted includes
the announcement and the declaration by the company towards developing new and improved
6MANAGEMENT
protocols like multi layer measures of the safety, eight point battery safe check and durability
tests including the visual inspections, scanning and the discharging tests (Ouyang et al.,
2017). One of the major positive factor included the eye opening experience regarding the
increase of the safety of the batteries and the device before publishing in the market.
protocols like multi layer measures of the safety, eight point battery safe check and durability
tests including the visual inspections, scanning and the discharging tests (Ouyang et al.,
2017). One of the major positive factor included the eye opening experience regarding the
increase of the safety of the batteries and the device before publishing in the market.
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7MANAGEMENT
Reference
Jokinen, A. (2017). PRESS RELEASES AND SOCIAL MEDIA IN CORPORATE CRISIS
COMMUNICATION:: A COMPARATIVE CASE STUDY OF NORDEA AND
SAMSUNG. Retrieved from
http://www.diva-portal.org/smash/get/diva2:1128083/FULLTEXT01.pdf
Ouyang, D., Liu, J., Chen, M., & Wang, J. (2017). Investigation into the fire hazards of
lithium-ion batteries under overcharging. Applied Sciences, 7(12), 1314. Retrieved
from https://www.mdpi.com/2076-3417/7/12/1314
Samsung’s, P. R., & Snow, J. (2018). A Technological Crisis Miscalculated. Retrieved from
https://snowjohn.com/s/ThesisWatermarked.pdf
Shamsi, A. F., Ali, M. H., & Kazmi, S. S. (2017). Samsung Note 7-An Unprecedented Recall
That Created History: Exploding Phones Recovered–Exploded Trust?. International
Journal of Experiential Learning & Case Studies, 2(1), 44-57. Retrieved from
http://www.journals.iobmresearch.com/index.php/JELCS/article/view/1714
Thomas, E., Zeron, A., & O’Rourke, J. S. (2017). Samsung Electronics Company, Ltd.:
Galaxy Note 7 Crisis. Retrieved from http://sk.sagepub.com/cases/samsung-
electronics-company-ltd-galaxy-note-7-crisis
Wu, Y., Saxena, S., Xing, Y., Wang, Y., Li, C., Yung, W., & Pecht, M. (2018). Analysis of
Manufacturing-Induced Defects and Structural Deformations in Lithium-Ion Batteries
Using Computed Tomography. Energies, 11(4), 925. Retrieved from
https://www.mdpi.com/1996-1073/11/4/925
Yun, J., Jeon, J., Park, K., & Zhao, X. (2018). Benefits and Costs of Closed Innovation
Strategy: Analysis of Samsung’s Galaxy Note 7 Explosion and Withdrawal
Reference
Jokinen, A. (2017). PRESS RELEASES AND SOCIAL MEDIA IN CORPORATE CRISIS
COMMUNICATION:: A COMPARATIVE CASE STUDY OF NORDEA AND
SAMSUNG. Retrieved from
http://www.diva-portal.org/smash/get/diva2:1128083/FULLTEXT01.pdf
Ouyang, D., Liu, J., Chen, M., & Wang, J. (2017). Investigation into the fire hazards of
lithium-ion batteries under overcharging. Applied Sciences, 7(12), 1314. Retrieved
from https://www.mdpi.com/2076-3417/7/12/1314
Samsung’s, P. R., & Snow, J. (2018). A Technological Crisis Miscalculated. Retrieved from
https://snowjohn.com/s/ThesisWatermarked.pdf
Shamsi, A. F., Ali, M. H., & Kazmi, S. S. (2017). Samsung Note 7-An Unprecedented Recall
That Created History: Exploding Phones Recovered–Exploded Trust?. International
Journal of Experiential Learning & Case Studies, 2(1), 44-57. Retrieved from
http://www.journals.iobmresearch.com/index.php/JELCS/article/view/1714
Thomas, E., Zeron, A., & O’Rourke, J. S. (2017). Samsung Electronics Company, Ltd.:
Galaxy Note 7 Crisis. Retrieved from http://sk.sagepub.com/cases/samsung-
electronics-company-ltd-galaxy-note-7-crisis
Wu, Y., Saxena, S., Xing, Y., Wang, Y., Li, C., Yung, W., & Pecht, M. (2018). Analysis of
Manufacturing-Induced Defects and Structural Deformations in Lithium-Ion Batteries
Using Computed Tomography. Energies, 11(4), 925. Retrieved from
https://www.mdpi.com/1996-1073/11/4/925
Yun, J., Jeon, J., Park, K., & Zhao, X. (2018). Benefits and Costs of Closed Innovation
Strategy: Analysis of Samsung’s Galaxy Note 7 Explosion and Withdrawal
8MANAGEMENT
Scandal. Journal of Open Innovation: Technology, Market, and Complexity, 4(3), 20.
Retrieved from https://www.mdpi.com/2199-8531/4/3/20
Peterson, A. (2016, September 2). Samsung recalls Galaxy Note 7 after battery explosions.
Retrieved from
https://www.houstonchronicle.com/business/technology/article/Samsung-recalls-
Galaxy-Note-7-after-battery-9201232.php
Epstein, Z. (2016, October 7). Watching a Samsung Galaxy Note 7 explode is terrifying.
Retrieved from https://nypost.com/2016/10/07/watching-a-samsung-galaxy-note-7-
explode-is-terrifying/
Jonathan Cheng & Eun-Young Jeong. (2016, October 10). Samsung Faces New Questions
Over Galaxy Note 7 Fires. Retrieved from https://www.wsj.com/articles/as-incidents-
mount-samsung-faces-new-questions-about-galaxy-note-7-recall-cause-1476105325
Barbash, F. (2016, October 11). R.I.P. Samsung Galaxy Note 7. It’s over. Retrieved from
https://www.washingtonpost.com/news/morning-mix/wp/2016/10/11/galaxy-note-7-
melts-to-green-yucky-thing-in-honolulu-power-down-samsung-says/?
noredirect=on&utm_term=.d4c26032e029
Jungah Lee & Yoolim Lee. (2016, October 12). Samsung cuts profit by $2.3 billion after
killing Note 7. Retrieved from https://www.chicagotribune.com/business/ct-samsung-
losses-galaxy-note-7-20161012-story.html
Baig, E. (2017, January 22). Samsung reveals cause of exploding Note 7 cellphones.
Retrieved from
https://www.usatoday.com/story/tech/columnist/baig/2017/01/22/both-design-and-
manufacturing-flaws-behind-galaxy-note-7-explosions/96841962/
Scandal. Journal of Open Innovation: Technology, Market, and Complexity, 4(3), 20.
Retrieved from https://www.mdpi.com/2199-8531/4/3/20
Peterson, A. (2016, September 2). Samsung recalls Galaxy Note 7 after battery explosions.
Retrieved from
https://www.houstonchronicle.com/business/technology/article/Samsung-recalls-
Galaxy-Note-7-after-battery-9201232.php
Epstein, Z. (2016, October 7). Watching a Samsung Galaxy Note 7 explode is terrifying.
Retrieved from https://nypost.com/2016/10/07/watching-a-samsung-galaxy-note-7-
explode-is-terrifying/
Jonathan Cheng & Eun-Young Jeong. (2016, October 10). Samsung Faces New Questions
Over Galaxy Note 7 Fires. Retrieved from https://www.wsj.com/articles/as-incidents-
mount-samsung-faces-new-questions-about-galaxy-note-7-recall-cause-1476105325
Barbash, F. (2016, October 11). R.I.P. Samsung Galaxy Note 7. It’s over. Retrieved from
https://www.washingtonpost.com/news/morning-mix/wp/2016/10/11/galaxy-note-7-
melts-to-green-yucky-thing-in-honolulu-power-down-samsung-says/?
noredirect=on&utm_term=.d4c26032e029
Jungah Lee & Yoolim Lee. (2016, October 12). Samsung cuts profit by $2.3 billion after
killing Note 7. Retrieved from https://www.chicagotribune.com/business/ct-samsung-
losses-galaxy-note-7-20161012-story.html
Baig, E. (2017, January 22). Samsung reveals cause of exploding Note 7 cellphones.
Retrieved from
https://www.usatoday.com/story/tech/columnist/baig/2017/01/22/both-design-and-
manufacturing-flaws-behind-galaxy-note-7-explosions/96841962/
9MANAGEMENT
Gibbs, S. (2017, July 3). Samsung's 'exploding' Note 7 repackaged as Galaxy Note Fan
Edition. Retrieved from
https://www.theguardian.com/technology/2017/jul/03/samsung-exploding-note-7-
repackaged-galaxy-note-fan-edition
Deng, L. M., Hsu, Y. C., & Li, H. X. (2017, October). An improved model for remaining
useful life prediction on capacity degradation and regeneration of lithium-ion battery.
In Annual Conference of the Prognostics and Health Management Society 2017
(PHM 2017) (p. 545). Retrieved from
https://pdfs.semanticscholar.org/1524/1c20ee87848fdb7ed407f653eabf9fa22920.pdf
Hern, A. (2017, November 28). Samsung Galaxy Note 7 production permanently ended
following battery explosions. Retrieved from
https://www.theguardian.com/technology/2016/oct/11/samsung-galaxy-note-7-
exploding-battery-safety-concerns
Mozur, P. (2017, December 22). Galaxy Note 7 Fires Caused by Battery and Design Flaws,
Samsung Says. Retrieved from
https://www.nytimes.com/2017/01/22/business/samsung-galaxy-note-7-battery-fires-
report.html
Gibbs, S. (2017, July 3). Samsung's 'exploding' Note 7 repackaged as Galaxy Note Fan
Edition. Retrieved from
https://www.theguardian.com/technology/2017/jul/03/samsung-exploding-note-7-
repackaged-galaxy-note-fan-edition
Deng, L. M., Hsu, Y. C., & Li, H. X. (2017, October). An improved model for remaining
useful life prediction on capacity degradation and regeneration of lithium-ion battery.
In Annual Conference of the Prognostics and Health Management Society 2017
(PHM 2017) (p. 545). Retrieved from
https://pdfs.semanticscholar.org/1524/1c20ee87848fdb7ed407f653eabf9fa22920.pdf
Hern, A. (2017, November 28). Samsung Galaxy Note 7 production permanently ended
following battery explosions. Retrieved from
https://www.theguardian.com/technology/2016/oct/11/samsung-galaxy-note-7-
exploding-battery-safety-concerns
Mozur, P. (2017, December 22). Galaxy Note 7 Fires Caused by Battery and Design Flaws,
Samsung Says. Retrieved from
https://www.nytimes.com/2017/01/22/business/samsung-galaxy-note-7-battery-fires-
report.html
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