Business Development Report: Samsung Note 7 Case Study Analysis

This report provides an in-depth evaluation of the Samsung Note 7 case study, focusing on the product's battery design and manufacturing flaws that led to overheating and explosions, resulting in a massive product recall. The report analyzes the impact on Samsung's brand image and examines the ...Read More

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Table of Contents
INTRODUCTION...........................................................................................................................1
Evaluation of the case study .......................................................................................................1
Incorporating wider reading and research...................................................................................3
Risk attitude................................................................................................................................4
Risk appetite...............................................................................................................................4
Risk identification ......................................................................................................................4
Risk consequence........................................................................................................................5
Risk impact .................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
The case study related to Samsung Note 7 is given in which the disadvantages and the
loss that is being faced by the company Samsung regarding this model is described. The loss is
faced by the company as there was flaws in battery design and manufacturing and due to this the
phone overheated and exploded (Kanonov and Wool, 2016). Also, the several devices was
returned over 2 million devices was recalled. In order to find out the root cause of the Note 7
issues the company Samsung builds a test lab. And after that based on results of the test the
company then developed battery advisory group and design 8 point battery safety system.
In this report the evaluation of the caste study will be done. And at the time of case
publication the risk attitude, risk appetite, risk identification that may characterised will also be
presented in this report.
Evaluation of the case study
As per the case it is being shown that Samsung is one of the well-known brand since
1970s it is being provided its services by dealing with products such as televisions, refrigerators
and washing machine etc. In the market of mobile phones it has successful established its place
the customers are highly satisfied with the range of mobile phones that are provided by this
company. The mobile devices such as Samsung note 2, note 3 etc are every popular. But the
visual failure of the Galaxy note 7 is considered as a disaster of Samsung. On 19th August 2016
Samsung galaxy note 7 was first released (Lee, Kim and Park, 2015). Due its innovation it was
greeted with enthusiasm as the features such as its iris-scanning biometrics unlocking feature is
being provided in that phone. This is the reason why the people were excited and went crazy
regarding this new model of phone launched by the company Samsung. About the phone there
were favourable reviews everywhere this also guaranteed an amazing amount of free publicity. It
is also being found that the main rival of Samsung that is Apple will not be able to keep up with
Samsung technology advancement. After its release within two weeks Samsung issues a recall of
the galaxy note 7.With the recall there was some communication issues. With the US
independent government safety authority and CPSC Samsung failed to communicate that lead
some delays in the process of replacement. Before the phones are issued the CPSC are meant to
approve the replacement phones. The retailers were also not informed adequately about the
replacement procedure. It was also being informed to the customers that over heating was caused
by batteries (McNeil, Frey and Embrechts, 2015.).
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The case study that is being given about the company Samsung will be useful in order to
gain insight knowledge about this company Samsung. This case will be useful in order to find
out the main issues that is faced by the company after the launch of mobile device Note 7.The
main reason behind why this model was not able generate satisfaction among the customers can
be found form the case study that is given (Meraner and Finger, 2016.). Also, the steps that is
being taken by the company in order to overcome the issues of this mobile devices is also being
give in the case. So, in way this case will provide details about the positives and negatives of the
company Samsung. In this phone the faulty batteries issue was there due to which it was
overheated and exploded. Over 2 million products were recalled by October. The company
believed that cause of crisis is detailed flaws in the battery design and manufacturing. The text
message and e-mails was used by the company to recall. It is also being found that the company
Samsung believed that technology innovation is essential to Samsung but the safety of customers
is more essential for them. So, in order to develop the trusts with the customers the company
Samsung need to find the root cause of the issues faced in Galaxy note 7 and after finding it
applies these learning to the future design of products. In order to find out the root cause of the
Not 7 issues the company Samsung develops a test lab. Around 700 researchers were their in
order to replicates the cause of fires in the phones. The whole devices of the phones were
checked by them (Olsson and Anerud, 2016).
It was the found that batteries from two different manufactures had flaws. The product
cause of first manufacture battery problems was negative electrode deflections. And the second
manufacturer's product suffered abnormal ultrasonic wedding burrs. In each type of the battery
the principal cause was different. In order to deal with the root cause of the problem the company
Samsung now developed battery advisory group and design an 8 -point battery safety system.
This case study was useful in order to discover the issues faced by those mobile phone and to
find put why this problem is being there in the phone and the steps that is taken by the company
in order to deal with this situation. The company Samsung basically believes that for them the
safety of customers is more essential rather than innovation and this is the reason behind why the
mobile device was recalled back. Both positive and negatives of the company Samsung can be
analysed and examined with the help of this case study (Thomas, 2015).
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Incorporating wider reading and research
As per the case it is shown that the brand image of the company Samsung company got
affected due to the issues in galaxy note 7.This news about the battery issues in Samsung note 7
spread at even greater speed with the help of dramatic video footage such as burning jeep. It was
also being declared by the commentators that Samsung brand will suffer immensely due to these
issues in the phone. But it is being shown that brand image of this company is still quite positive
in the market due to the following reasons.
 The company Samsung issues a recall when the disaster first came and due to which all
the Samsung galaxy 7 was being replaced.
 The firm's reputation is being uphold by the other phones and products that are offered by
this company.
 So, the customers are now more willing to forgive the fault. And also Samsung is well-
known brand in the market and also for this company customer satisfaction is more
essential than innovation (Watson, 2015).
So much of the negative impact on the brand Samsung is not there due to the issue that is
there in the phone note 7 because the variety of products that is offered by the company have
being achieved the success and customers are also satisfied with those products.
Also, the measurable steps is taken by the company to deal with the issues to provide the
customers with the best phone. The root cause of the problem was discovered by the company
regarding what is the actual cause behind the phones. In the recall for all the customers who have
retuned back their phone the company Samsung developed an app upgrade that was put to the
phones that have not being returned yet to the limit of battery charge to 60% and thus prevent
them from over-heating. The battery advisory group was also developed by the company in order
to deal with the issues in the phone. A new quality assurance process being developed in the
company Samsung that is to be followed by both Samsung and its components manufactures. A
multi layer safety measures protocol is being implemented at the product planning and also a
new 8- point battery safety system. The additional durability tests need to be done that include
the stress testing with extreme temperatures. And all the other test such as X-ray test and
accelerated usage test were conducted by the company to test the battery of the phones that is
manufactured by them (Ho and Talluri, 2015).
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Risk attitude
Risk attitude can be defined as state of mind regarding the situation.It is essential to take
into consideration the customers overall circumstances when assessing a compliant and looking
at whether a customer was given a suitable solution regarding the specific product or not. At the
time of sales overall circumstance of customers need to be taken into account and not to depend
only on one piece of evidence. The customer's endowment to risk need to be noted (Haimes,
2015). Before publishing this case study all the facts related to this company Samsung need to be
considered where they are right or wrong. Also, as per the case it is being shown that the
company Samsung have taken various measures in order to deal with the issues in the phone. So,
the risk attitude will help to find that whether the solutions that is found by the company are
enough in order to deal with the situation. The apps, advisory group, safety system etc that is
taken by the company Samsung are enough to deal with the battery issues that is faced by them
and also whether this will solve the problem of the battery and provide satisfaction to the
customers. All these things are involved in the risk attitude.
Risk appetite
The level of risk an organization is ready accept is defined in the risk appetite. They are
not at all easy to define as different level of organizational can tolerate different level of risks. A
common understanding of the risk need to be published by the organization and they should also
be ready for the likelihood and impact of known threats. In each area before taking any caution
the organization should define the maximum level of risk tolerance. Through the creation of a
risk appetite statement organization sometimes expresses their risk appetite (Chen and Chen ,
2015). In order to manage the activities of risk regarding the cause study this document will help
the organization. On a review of the perspectives and concerns of all stakeholder the statement
should be based and also it should address the implications of current corporate strategies and
practices. If in case within the time and cost that is estimated for the publication for this case
study is not achieved then the budget and time risk can be there in the publication of the case
study.
Risk identification
In the case study publication it will help to recognize and record potential risks that can
affect this case study from publishing. For risk identification there are a number of methods that
can be used. In order to overcome the risk that can be there in this case study publication. An
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effective risk identification process can be used. In this process a systematic process will be
created. With the aims and success factors of this case this risk identification process will start.
For effective risk management the reliable and high quality information need to be gathered and
also the risk identification tools and techniques can also be applied (Baccarelli and Stefa, 2016).
Risk consequence
At the time of case publication the risk consequence is that if the time risk is there then
this case will not be published in the estimated time. The consequence of this will be that this
may cause delay in establishment of the case. In case there is budget risk then cost in the
publication of this case will increase. In case of the solution are not proper related to the issues
which is faced by the company Samsung then the customers will not know whether the right
decision are made by the company or not. So, publishing the case it need to be evaluated.
Risk impact
The risk impact in the publication of case study that all sort of the risk that will be there
in the case will be identified. The impact of risk will be that strategies and plans ned to be made
in order to deal with the risks in the case study publication. If the time related risk is there then
the strategies will be developed from before so that on the estimated time this case study will be
published (Ab Rahman and Choo, 2017).
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REFERENCES
Books and Journals
Ab Rahman, N.H. and Choo, K.K.R., 2017. Cloud incident handling and forensic‐by‐design:
cloud storage as a case study. Concurrency and Computation: Practice and Experience,
29(14).
Baccarelli, E. and Stefa, J., 2016. Energy-efficient dynamic traffic offloading and
reconfiguration of networked data centers for big data stream mobile computing: review,
challenges, and a case study. IEEE Network, 30(2), pp.54-61.
Chen, Y.R. and Chen, H.H., 2015, May. Opinion spam detection in web forum: a real case study.
In Proceedings of the 24th International Conference on World Wide Web (pp. 173-183).
International World Wide Web Conferences Steering Committee.
Haimes, Y.Y., 2015. Risk modeling, assessment, and management. John Wiley & Sons.
Ho, W. and Talluri, S., 2015. Supply chain risk management: a literature review. International
Journal of Production Research, 53(16), pp.5031-5069.
Kanonov, U. and Wool, A., 2016, October. Secure containers in Android: the Samsung KNOX
case study. In Proceedings of the 6th Workshop on Security and Privacy in Smartphones
and Mobile Devices (pp. 3-12). ACM.
Lee, S.J., Kim, J. and Park, B.I., 2015. Culture clashes in cross-border mergers and acquisitions:
A case study of Sweden's Volvo and South Korea's Samsung. International Business
Review, 24(4), pp.580-593.
McNeil, A.J., Frey, R. and Embrechts, P., 2015. Quantitative risk management: Concepts,
techniques and tools. Princeton university press.
Meraner, M. and Finger, R., 2016. The impact of risk perception and preferences on risk
management strategies: Evidence for German livestock farmers. In 156th EAAE Seminar
on Prospects for agricultural insurance in Europe. Business Economics.
Olsson, O. and Anerud, E., 2016. Keep that fire burning: Fuel supply risk management strategies
of Swedish district heating plants and implications for energy security. Biomass and
Bioenergy, 90, pp.70-77.
Thomas, G., 2015. How to do your case study. Sage.
Watson, T.M., 2015. Research access barriers as reputational risk management: A case study of
censorship in corrections. Canadian Journal of Criminology and Criminal Justice, 57(3),
pp.330-362.
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