SAMSUNG

SAMSUNG HISTORY
Samsung Group, based in Seoul, is South Korea’s largest business group. The multinational
conglomerate contains numerous subsidiaries and affiliated businesses, most of them under the
Samsung brand.

Here are key dates in the company’s history:

1938: Samsung is founded by Lee Byung-chull as a trading company.
1953: After the Korean War, Lee forms profitable Cheil Sugar, which is followed by textile,
banking and insurance enterprises.
1961: Despite a political coup, charges against Lee of illegal profiteering and a 1966 family
scandal of smuggling, the company grows by diversifying into paper products, department
stores and publishing.
1969: Lee, with the help of Sanyo, establishes Samsung Electronics. It produces inexpensive
TVs, microwave ovens and other consumer products for Western companies such as Sears and
General Electric.
1970s: Under a government policy of rapid industrialization, Samsung launches a number of
enterprises in ship building, petrochemicals and aircraft engines.
1980s: The company is exporting electronics under its own name.
1983: Samsung begins production of personal computers.

1987: Lee’s son, Lee Kun-hee, assumes control of Samsung.

1988: Samsung Semiconductor and Telecommunications merges with Samsung Electronics. Its
core business focus is home appliances, telecommunications and semiconductors.
1990: Samsung becomes a world leader in chip production.
1994: Samsung Motors is formed.
1996: Lee Kun-hee is involved in a corruption scandal and gets a suspended sentence for
bribery.
1998: Samsung completes the development of flat-screen televisions and begins the first mass
production of digital TVs. Samsung Motors delivers its first cars.
2005: Samsung develops the first speech-recognition phone.
2007: Samsung Group is accused of political bribery and influence-peddling throughout the
South Korean government, judicial branch and the media.
2012: Samsung Electronics becomes world’s largest mobile phone-maker by unit sales,
overtaking Nokia, the market leader. U.S. jurors rule Samsung must pay Apple (AAPL) $1.05
billion in damages for violating six Apple patents on smartphone technology.
SOURCE: https://www.mercurynews.com/2013/04/08/samsung-a-short-history/

SAMSUNG MISSION AND VISION

MISSION
Inspire the world with our innovative technologies, products and designs that enrich people’s
lives and contribute to social prosperity by creating a new future.
VISION
Inspire the world, create the future.
SOURCE: https://www.samsung.com/us/aboutsamsung/vision/vision2020/

SAMSUNG ORGAIZATIONAL CHART

SOURCE: https://www.ssfutures.com/eng/aboutus/main.jspx?c=ENG_010104

SAMSUNG PROBLEMS AND SOLUTIONS

PROBLEM 1:

Samsung phones are most bork-prone as a quarter suffer 'performance issues'

Blancco report also outs the iPhone 6S as most failure-prone iDevice

SAMSUNG SMARTPHONES proved the most bork-prone during the first quarter, with 27 per
cent of devices showing performance issues during the three-month period.

That's according to Blancco, which in its latest 'State of Mobile Device Repair & Security' report
reveals that Samsung's phones had the highest failure rate among the manufacturers it tracks.

The Galaxy S7 ranked as the worst-performing Android device with a failure rate of 9 per cent,
according to Blancco, followed by the S7 Edge (8 per cent) and the now-ageing Galaxy S5 (five
per cent).

Overall, a staggering 27 per cent of Samsung smartphones showing performance issues during
Q1, a significant jump over the second and third sports - with Xiaomi coming in at 14 per
cent and Motorola at 9.5 per cent.
Back in 2016, a number of iPhone 6S units stopped working due to an issue dubbed 'Touch
Disease' that caused display flickering and multi-touch issues. And last year, it was revealed
that Apple is throttling the processing power of older iPhones, including the 6S, causing devices
to slow-down and shut down unexpectedly.

For Android, the biggest problems include issues with the overall performance of handsets,
camera and microphone borkage and issues with battery charging.

SOURCE: https://www.theinquirer.net/inquirer/news/3035834/samsung-phones-are-most-bork-prone-
as-a-quarter-suffer-performance-issues

SOLUTION: The problem in this issue is it lacks of effectiveness and efficiency. When you make a
product you should have a responsibility to make that product really effective and efficient. They
should do their job in the best possible way to make their customers satisfied. Effectiveness is
important for growth, they should be consistent to plan, evaluate and focus on every detail of their
product and they should test it very well because they produce it. The best way to improve
efficiency is to measure and evaluate all of their processes and systems over and over again.
They should do their product right in order not to encounter any circumstances that will make
their product don”t have a performance issues

PROBLEM 2:
Dumping 4.3 Million Samsung Phones Is an Environmental Disaster, Warns
Greenpeace
by Perry Wheeler
October 31, 2016

Seoul, 1 November 2016 - Samsung’s lack of transparency on the disposal of its Galaxy Note 7
leaves tons of precious minerals at risk of being discarded into the environment. According to
calculations by Oeko-Institut, a research and consultancy institution based in Germany, the 4.3
million smartphones contain more than 20 metric tons of cobalt, more than 1 ton of tungsten, 1
ton of silver, 100 kilograms of gold and between 20 and 60 kilograms of palladium.
These materials could be recovered but will instead end up harming the environment if
Samsung doesn’t repurpose or reuse them.
Despite issuing a global recall of the Galaxy Note 7, Samsung has not offered an official
explanation for the malfunctioning phones. It has said that it will not recycle the returned phones
but has offered no further clarity on what it will do with them.

Millions of phones were recalled worldwide after a number of high profile cases of exploding
Samsung Galaxy Note 7 devices. Samsung expected to sell 14 million Galaxy Note 7 devices
within the first two months of its official launch. The company has currently produced 4.3 million
devices and sold 1.8 million in more than 10 countries including South Korea, USA, Canada,
Mexico, Australia, New Zealand, Singapore, Taiwan, United Arab Emirates, and China.

The Galaxy Note 7 incident negatively impacts Samsung’s reputation and dumping the 4.3
million phones would call into question Samsung’s claims of supporting a ‘circular economy.’
The incident also highlights the disposable economic model of many smartphone
manufacturers.

Greenpeace is calling on Samsung not to dump or burn the devices and minimize the
environmental impact by finding alternative ways to reuse the resources. It must also be
transparent and publish its plan for dismantling and disposing of these phones.

SOURCE: https://www.greenpeace.org/usa/news/dumping-4-3-million-samsung-phones-is-an-
environmental-disaster-warns-greenpeace/

SOLUTION: In this case, many people would not really agree on what they did, Most of the
people really want to have an environment that is sustainable.

PROBLEM 3

Samsung looks to head off long-term brand damage as it scraps Galaxy Note 7
Samsung has ended production of the device after a recall meant to deal with safety issues saw
replacement phones also catching fire.
By Rachel Gee 11 Oct 2016 3:17 pm
Samsung has ended production of the Galaxy Note 7 as it looks to head off long-term damage
to its brand after reports that replacements sent out to customers due to safety issues also
caught fire.

A number of the devices were reported to have overheated, caught fire or exploded, with some
airlines warning customers they would not be able to travel with the devices due to safety
concerns. Samsung was forced to issue a global recall of the phones in September but
replacement phones were also recalled due to further problems and production has now ended.

Ahmad Badr, strategy director at branding agency Siegel+Gale, points out that Samsung’s
brand reputation is not reliant solely on the phone’s failure and that health and safety concerns
meant the company had to end production.

“The erosion of brand equity is a gradual process and does not solely depend on singular
product performance failures,” he says.
“Every new report and incident was creating more and more damage to its reputation. Stopping
the production of these phones was therefore the only way to keep the story from gaining more
momentum.
“As with any PR crisis, changing the narrative from ‘innovation at a cost’ to another more
positive story will require further investment into the Samsung brand, reassuring consumers and
elevating it away from bad product performance.”
SOURCE: https://www.marketingweek.com/2016/10/11/samsung-looks-to-head-off-long-term-
brand-damage-as-it-scraps-galaxy-note-7/

SOLUTION: