Management Accounting - Samsung Assignment
Added on 2021-04-24
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Running head: MANAGEMENT ACCOUNTINGManagement AccountingName of the Student:Name of the University:Author Note
1MANAGEMENT ACCOUNTINGExecutive SummaryThe issue that has been presented in the question revolves around the particular fact inregards to the risk management strategies that had been adopted by the management of Samsungwhen it had decided to recall its product due to the fact that it was catching fire.Samsung had launched the Galaxy Note 7 and it had been reported that there had been ahuge volume of preordered records. However, the electronic giants had to initiate a recall in themonth of September 2017. The first version of Note 7 had been called back and the furtherproduction of Galaxy Note & had been halted. By the month of October, the company had torecall 2 million devices. It had been estimated that the recall of the product would cost thecompany an amount of $5.3 billion. This had been followed by incidents in which themanagement of the company had suffered loss not just in terms of monetary unit but also interms of goodwill and trust among its loyal customers. This particular study aims to provide therequired recommendations like a company facing the similar situation should be brutally honestwith its policies and practices with the public.
2MANAGEMENT ACCOUNTINGTable of ContentsIntroduction......................................................................................................................................3Case study........................................................................................................................................4Samsung creates a test lab for experimenting the technical manufacturing faults in Galaxy 7Issues............................................................................................................................................6Smoking phones were caused due to battery manufacturing defect............................................7Samsung recreates the battery advisory group and go for designing the 8-Point safety strategy7Recommendation.............................................................................................................................9
3MANAGEMENT ACCOUNTINGIntroductionThe issue that has been presented in the question is that the management team of the firmhas been proposed to develop a manual in order to train the staff in regards to the major areas ofrisk so that the company can avoid the occurrence of similar incidents. The particular incidentthat has been chosen for the purpose of this study is Samsung Galaxy Note 7 recall. It must benoted here that the running of a particular business can come up with a number of risks. Thelevel of the risks being can be measured with the particular impacts that they have on the overallfunctioning of the firm (Carnevale, Loureiro and Kabadayi 2018). This particular study aims to understand the incidents that led to the downfall of theselected Samsung product. Moreover, the particular methods that had been utilized by themanagement of the firm to avert the disadvantages of the situation have also been discussed inthis particular study. The risk management issues that have been utilized by the particularcorporate entity of Samsung have been analyzed and evaluated in this particular paper(Carnevale, Loureiro and Kabadayi 2018). The management of Samsung had undertaken a global recall of the Galaxy Note 7 smartphone and after seven months of silence, the management of the global entity revealed the factthat the particular reason behind the device’s batteries to overheat and catch fire. The particularreason had been that the battery of the device had been faulty as they have been sourced fromtwo different suppliers. The batteries that had been sourced by Amperex Technology Limitedwere missing insulation tape and a certain number of batteries consisted of sharp protrusionsinside the battery that damaged the separator between anode and cathode. Therefore, thisparticular study aims to provide an overview into the risks to which the business firms might be
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