Samsung Galaxy Note 7: A Case Study on Risk Management and Crisis Management

Running Head: FOUNDATION OF MANAGEMENT THOUGHT 0
Foundation of Management thought
9/5/2018

FOUNDATION OF MANAGEMENT THOUGHT 1
Executive summary
Samsung is one of the largest producers of electronic products amongst all other
companies worldwide. Despite the effective and smooth functioning of the organisation, the
company faced many problems. Samsung disappointed the customers and made them switch
to other brands because of the issue of the failure of their product i.e. Galaxy Note 7. The
case represented and led to many problems and two major risk issues. These risk
management issues were the public safety and the crisis management issue on the brand
reputation. The case also represented the weakness of the Samsung, in being ineffective
towards managing their media relations. As a result, they took several steps to eradicate this
problem, for better customer relationship. Thus, every organisation must take into account
their customers safety, needs, and expectations to emerge as a successfully competitive in the
industry in the long- run.

FOUNDATION OF MANAGEMENT THOUGHT 2
Contents
1. Introduction....................................................................................................3
2. Case study Overview (Samsung Galaxy Note 7)...........................................3
3. Analysis of the case study..............................................................................4
3.1 Issues in the smartphone..............................................................................5
3.2 Management theories...................................................................................6
4. Conclusion......................................................................................................8
4.1 Analysis of the report..................................................................................8
4.2 Future scope.................................................................................................9
5. Recommendations.............................................................................................9
6. References......................................................................................................9

FOUNDATION OF MANAGEMENT THOUGHT 3
1. Introduction
The report brings about the discussion of the multinational enterprises and the case study
analysis of the company “Samsung” . The purpose of the report clearly defines the inclusion
of the management theories and practices in the context of the organisations. One of the
common practices affecting the organisational effectiveness and performance includes an
approach to the ethical conduct. It defines about the ethics and ethical principles followed in
the organisation, to ensure long-term survival and success, in the industry. Ethics define the
ways and practices which are the standards stated by the company towards their employees,
customers and the other stakeholders. Acting in an ethical manner describes about the
behaviour that is acceptable for both the company as well as the society (Yun et.al, 2018).
Ethical behaviour or ethical code of conduct is good for every business organisations, and
it accepts the important moral principles, which includes honesty, fairness, equality, dignity,
and the integrity of the diverse employees in the organisation. The case study analysis has
carried out in the report, of “Samsung Galaxy Note 7.” The application of the management
theories and other aspects has taken with respect to the company and the case study chosen
(Crane & Matten, 2016).
2. Case study Overview (Samsung Galaxy Note 7)
One of the notable and the most successful company, Samsung is a South-Korean based
company, one of the largest producers of the electronic products. Samsung founded by the
Lee Byung-chul in the year 1938, as a trading business company. After the establishment
over next three decades, the Samsung group diversified the operations into areas like food,
textile, insurance, securities, and the retail sector. The company is headquartered in Samsung
town, Seoul Korea, and it includes numerous business affiliated, and most of them are
included under the name of Samsung brand (Samsung Newsroom, 2017).
Samsung has been specialising over years in the production of a wide variety of the
consumer and the electronic products. The major products include appliances, media devices,
semi-conductors, memory chips, and the other systems. The case study taken for the analysis
discusses about the ‘Samsung Galaxy Note7”, that was titled as “Samsung’s Exploding Note
7: A Case study in how not to release a smartphone”. The smartphone has been now