INDIVIDUAL ASSIGNMENT CASE STUDY REPORT

LEADERSHIP & ORGANIZATIONAL BEHAVIOR

CINTA NASTASYA (2001881042)

Lecturer:
Dr. Anita Maharani, S.E., M.M
Dr. Sekar Wulan Prasetyaningtyas, S.Si., M.Pd.

BINUS BUSINESS SCHOOL

MASTER OF MANAGEMENT
PROFESSIONAL BUSINESS MANAGEMENT
JAKARTA
Disaster Averted: Samsung Crisis Management
Strategy for Galaxy Note 7
Case Study Report
Cinta Nastasya - 2001881042

Background

Samsung released the Galaxy Note 7 in August. In September, Samsung had to launch a recall
of the first Note 7 version due to faulty batteries that overheated and exploded. It had to recall
more than 2 million devised by October and not continuing the product due to it cost a lot for
Samsung. This case study explaining about How Samsung handles their crisis from the product
that they made. Samsung’s crisis management policy during the Galaxy Note 7 debacle of
2016, by less than a month after launch, which results the corporation, pulled the drug
worldwide because of the incident of the device overheating which caused to exploding and it’s
not safety to use.
As one of the world’s largest electronic companies, Samsung did its best to handle this
crisis caused from the devise that they made, they do investigate the product’s defect and
willing to fix the problem by gaining customers trustworthy, maintain they relationship in
order to gain confidence from the market.
As for consumer, the decision-making process is really crucial, due to it influences
people on seeing a good reputation from the brand. Meaning that, a good and bad
reputation may affect the willingness of customers in purchasing the products. And
reputation is very important in an organization; building reputation isn’t that easy, it takes
a long process.

Literature Review

The potential complications with the Samsung Note 7 explosion and the company's
withdrawal, it is vital to understand the key factor affecting the cycle of purchase
decision process. Samsung's quality issue which makes or breaks the brand can be caused
by social influence, size, product characteristics and dependability (Sohail & Tanveer,
2015). In terms of social influence, social influence may arise due to the influence of
friends, family, people closest to you and even the media. The technology development
has been evolving quite quickly at the moment. The decision to buy goods can therefore
be taken because of the power of social media, where all information can be accessed
from the media itself (Rahim, Safin, Kheng, Abas, & Ali, 2016).
As we know that, Samsung is a leading company, they do encourages followers to adapt
by confronting and try to solve their problems, challenges and changes from this case, it’s
one of adaptive leadership (Peter, 2016).
Each customer have their own preferences or motivation when making a purchase
decision, it can be from price, product characteristics, lifestyle and many things. As they
have their own expectation toward one brand in a higher prices, and the perception of that
product would be a good quality, worth to buy. According to Karjaluoto et al, (2015) the
mobile is available at low and high prices based on functionality, model and categories.

Discussion

Maintaining a favorable public image for corporations is vital for their survival and a
crisis threatens one’s image and puts it under scrutiny. In order to understand the function
of image repair strategies, it is essentials to consider the nature of attacks in corporate
crisis that prompt such responses. The company requires a division of marketing, a public
relations firm, to maintain relationships with the media and with the people who work
there. Not only that, a company often needs to maintain a company's reputation in order
to be profitable. Maintaining credibility is a challenging and time-consuming operation,
especially when the business faces a crisis.
A company needs to have a crisis communication plan to enable them to deal with
reputational problems. Crisis management strategy is relevant because it is an
organization guideline which saves time during a crisis by pre-assigning certain tasks to
the staff, pre-gathering some information and serving as a reference source. Feedback
will also help the company develop customer loyalty strategies that will retain and attract
customers. Quickness, precision and continuity are a core principle of efficient crisis
communication. An early reaction from the agency affected is crucial during a crisis, and
while they may not be able to communicate "new" information, an immediate response
helps the organization concerned to remain in control of the situation.
Samsung management promised immediate action for the customers to understand and
investigate the problem. Risk and crisis management for Samsung was first of all in
customer response. In matters of crisis, the primary concern of the stakeholders
concerned is to determine what, why, where and how that information is spread it out,
because they need to secure those information when it’s right/ wrong. An important thing
for companies in distress when adopting identity restoration techniques is to reduce the
psychological stress that customers face by demonstrating to the public that their health is
the most essential, and that is achieved by corrective action.

Suggestion

When rumors of Galaxy Note 7 smartphone explosion started, it was become a big
disadvantage of Samsung’s leadership. The organization has been known as a highlight
discreet for South Korea, and in this kind of situation it’s not a good enough due to the
age of globalization that rapidly change. Samsung been involved in building and
maintaining successful digital partnerships with its stakeholders in other countries, there
would have been a social media marketing infrastructure in place when the Galaxy Note
7 crisis hit. Furthermore, the leadership and marketing team at the company would have
been better able to get their best options quickly. Samsung either preferred to use
mediated reports in dealing with the Galaxy Note 7 issue, or lacked the infrastructure
necessary to effectively deploy social media. It is important for businesses to
communicate with stakeholders when the worst of a crisis is eventually over.
The management may have been using effective techniques to solve the problem. Battery
replacement didn't solve the problem. Instead of just dealing with the symptoms, the
whole management could have found the cause of the problem. The management may
have been using effective techniques to solve the problem. Battery replacement hasn't
solved the problem. The whole management could have sought the cause of the problem,
rather than the symptoms alone. When a company is accused of self-defense in a case and
the company provides compensation for its mistakes, then it will be seen here whether
consumers can accept this well or not, because later all this will affect the company's
brand image and take responsibility for their own company's reputation too.
REFERENCES

Ayub, A. F. M., Hamid, W. H. W., & Nawawi, M. H. (2014). Use of internet for academic
purposes among students in Malaysian institutions of higher education. TOJET: The Turkish
Online Journal of Educational Technology, 13(1).

Karjaluoto, H., Karvonen, J., Kesti, M., Koivumäki, T., Manninen, M., Pakola, J., … Salo, J.
(2005). Factors Affecting Consumer Choice of Mobile Phones: Two Studies from Finland.
Journal of Euromarketing, 14(3), 59–82.

Peter G. Northouse, Leadership: Theory and Practice, Seventh Edition. © 2016 SAGE
Publications, Inc.

Rahim, A., Safin, S. Z., Kheng, L. K., Abas, N., & Ali, S. M. (2016). Factors Influencing
Purchasing Intention of Smartphone among University Students. Procedia Economics and
Finance, 37, 245–253.

Sohail, A. A., & Tanveer, N. (2015). Buying Behavior of Smartphone among University
Students in Pakistan. The International Journal of Business & Management, 3(1), 34.
PT. KAI: Business & People Transformation – The
Leadership Role of Ignasius Jonan
Case Study Report
Cinta Nastasya - 2001881042

Background

PT. KAI is an Indonesian Railroad Service company, where the quality of its services to
customers, the comfort of passengers and the speed of service are among the factors that must
be taken into consideration. PT. KAI itself has greatly changed its image from the disturbance
of passengers, the payment system and the cleanliness of trains and stations, now many
changes have been made that are better when it is run by Iganisus Johan; Where passengers can
now buy their tickets not only from the locket but also from the nearest mini market, or use a
machine that can be filled alone or even online. Working passenger comfort has also become
safer, as trains are now organized more in terms of arrival hours. In this case study, it shows
that Jonan’s are paying more attention on the service. Under Jonan's leadership produced many
awards and Jonan was named Best CEO of a State-owned company. PT. KAI has changed
from old perceptions to new experiences from real customer-oriented services from 2009 -
2014.
Jonan attaches great importance to customer satisfaction on the train itself. PT. KAI is going to
be a very good example of how an organization can have its own turnaround points and turn
into a better company, and perform well. In making changes in management of PT Kereta Api
Indonesia that can ultimately change the attitude and actions of employees to better pay
attention to quality and performance quantity. The leadership of Jonan actively inspires
workers to follow the directives and make progress in accordance with the company's own
vision. And here Jonan applies dismissal for ineffective workers. Unfortunately, as long as this
adaptation process gets better, not all employees can accept changes, a lot of pressure and
discomfort is experienced by employees. Jonan can express a vision, and inspire a team.
Therefore, Jonan can improve employee welfare. Furthermore, Jonan has adopted
Transformational Leadership, Charismatic Leadership, and Utama Leadership Tri Pakarti.
Literature Review

Sometimes, there are still many people who are not aware of their culture until a change or new
challenge they face, for example, a system or pattern, a transition or a new challenge. This is
why culture is ignored for so long by managers, because most of the time is undetected (Kim S.
Cameron, 2006). The culture of an organization is expressed in what is respected, the
prevailing types of leadership, the vocabulary and symbols, and the processes and practices and
meanings of performance that make an organization special (kim s. Cameron, 2006).
According to John P Kotter (1996) that a company has to take eight steps to ensure that
operational improvements can be successfully enforced. In many instances, as demonstrated by
Kotter, non-organizational change is due to incompetence or inability to do one or more steps.
The eight steps involve building a sense of urgency, establishing a vision and mission of the
company, and also drawing up future strategic plans and being able to communicate despite
major changes and also help all workers who work so that they can adapt easily to the
organizational culture. Under Ignasisius Jonan's leadership, one strategy, judgment, procedure
or intervention can have consequences, both specific and multi-stage support at once.

Discussion

As we know and saw about the change in the system, the quality of facilities and infrastructure
of our train services has been very far developed for the better. And this has been seen not only
by the public but also by employees of PT. KAI itself which in accordance with their vision
and mission to provide the best service for the community.
Jonan's decision is to focus on improving long-distance passenger trains rather than short-
distance commuter trains can be seen as a coordinated result to boost employee morale and
make more progress in terms of salary, due to long distance train will get more benefit for the
companies. Under Ignatius Jonan's leadership KAI gradually increased employee salaries. The
strategy looks strange at a glance because KAI, the financial position in a state of failure,
started leading at the time. The adage used is that KAI is a service company. Consequently,
Jonan has persistently changed KAI society from product-oriented to customer-oriented, due to
its vision is to improve service quality, safety, comfort and timeliness. Jonan not only promotes
these principles, but also makes himself a role model for all of his workers in terms of
dedication, and integrity. The old culture of corrupt will disappear because the economic
system of employee welfare has increased, and the old culture of cheaters and non-workers has
been removed, thus making this service better, with a culture that is oriented and oriented
towards service satisfaction
Suggestion
The success of the transformation of PT. KAI itself is very visible under the work leadership of
Ignatius Jonan and all the teams that work for him with good endurance, honesty, speed, and
quality of service. The key to successful transition at KAI is to have integrity-based leadership
through ambition, dedication, continuity and outstanding leadership. In many cases, the
reluctance of the leader to reform the organization, at least in the Indonesian context, is closely
linked to the past record and integrity of the leader. Only a person with a clear conscience will
exercise effective leadership, to effectively transform the company. Any leader with a bad track
record will not be able to practice effective leadership and therefore it is very likely that the
organizational transformation will not be implemented. Therefore, it must be ensured that good
and clear leaders are chosen to lead organizational transformation.
REFERENCES

Cameron, Kim S., Freeman, Sarah J., and Mishra, Aneil K. “Downsizing and Redisigning Org
anizations.” In George P. Huber and William H. Glick(eds.), Organizational Change and Redisign. Ne
w York: Oxford University Press, 1993

Djuraid, H. M. (2013), Jonan & Evolusi Kereta Api Indonesia. Penerbit PT Mediasuara Shakti BUMN
Track, Jakarta.

Kotter, J. P. (1996), Leading Change. Harvard Business School Press.