Samsung Leadership Crisis

This report examines the ongoing leadership crisis at Samsung, focusing on the arrest of Jay Y. Lee and its impact on the company. It analyzes the historical context, current challenges including competition and internal strife, and the effect of leadership instability on Samsung's performance. The report concludes by discussing potential solutions for addressing these issues.

LEADERSHIP
AND
MANAGEMENT

Table of Contents
Leadership and Management issues ................................................................................................1
Background and current leadership Crises .....................................................................................1
Leadership effects on Company.......................................................................................................1
References........................................................................................................................................3

Leadership and Management issues
The head of Samsung empire Jay Y. Lee was arrested for bribery charges in South Korea.
Founding family of Samsung is facing the greatest crises ever because of this arrest. Father of
Jay Y. Lee was pardoned and convicted (Bolman and Deal, 2014). A year ago, His cousin who is
head of CJ also spent a short time in prison. The Korean people have both types of emotions that
is they are experiencing the revulsion and pride simultaneously. There are many advantages of
Korean people which may Deteriorate significantly. The present leader of the company i.e. lee
Kun Hee adopts the strategic leadership style. Previously the company was focusing on low
quality and high volume products but now the company is focusing on the high quality and high
volume products (Nahavandi, 2016). The leader of the Samsung believes that the leader can
affect the changes for the betterment only if they understand their business deeply. The cited
organization also adopts the Ethical and Cross cultural leadership.
Background and current leadership Crises
After the approved of arrest of the Lee J. Yong from Court of South Korea, the company
has faces many crises. As the company's leader was arrested therefore they require some leader
who can run the organization is more effective manner (Răducan and Răducan, 2014). The
company is also struggling because of the failure of their latest model i.e. Galaxy Note 7. There
is some problem of meltdown of batteries due to excess heating problem. Samsung is facing
various issues in maintaining their perch on the top in the industry of smart phones. The
leadership of the cited organization is struggling to meet the challenges due to competition from
new Google's Pixel smartphone and also from the cheap Chinese smart phone manufacture. The
company facing issues since 2014 when the elder Lee had heart attack (Renz, 2016). Another big
issue in the cited company is that the internal competition of the company is unhealthy, which
indirectly affects the output of the company. This type of environment demotivates the
employees and forces them to switch to another organization.
Leadership effects on Company
Since the leadership of the Samsung is not consistent or stable. Due to continuous
changing in the management and leadership of the company the focus of the company and its
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employees also varies. This results in the decrement of the share value of the company. The
stock exchange of the organization is facing various problems as the company is not focusing on
a particular tasks. Due to politics in the cited organization, there is some unhealthy environment
which indirectly results in the demotivation of the employees as the competition between the
workers is not healthy (Sullivan and Garland, 2010). The firm is not able to make decision in the
given time as the leader changes, the decision making process also changes. Future planning of
the Samsung is good but it can only be achieve by the continuous focus towards the goals and
objectives of the organization.
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References
Books and Journals
Bolman, L. and Deal, T., 2014. Leadership and management. Christian Youth Work in Theory
and Practice: A Handbook. pp.245.
Nahavandi, A., 2016. The Art and Science of Leadership -Global Edition. Pearson.
Răducan, R. and Răducan, R., 2014. Leadership and Management. Procedia-Social and
Behavioral Sciences. 149. pp.808-812.
Renz, D. O., 2016. The Jossey-Bass handbook of nonprofit leadership and management. John
Wiley & Sons.
Sullivan, E. J. and Garland, G., 2010. Practical leadership and management in nursing. Pearson
Education.
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