corporate communication assignment

Introduction

Corporate communication is about business relationship and reputation of firms with

their key internal and external stakeholders. A good reputation is an excellent calling card: It
opens doors, attracts followers, brings in customers and investors – it commands our respect.
Watson, Tom & Kitchen, Philip. (2008). Corporate Communication: Reputation in Action.
10.4324/9780203931943.ch7. A good reputation is an excellent calling card: It opens doors,
attracts followers, and brings in customers and investors – it commands our respect. Corporate
communications are an essential vehicle for growing brand value, increasing revenues and
building credibility with all stakeholders, whether it’s customers, investors, government
bodies, employees or business partners. In an increasingly global marketplace with so many
customer touchpoints, offline and online, it’s crucial that your reputation and brand is managed
expertly.

According to Jackson (in Van Riel and Fombrun, 2007), corporate communication is defined as
‘the total communication activity generated by a company to achieve its planned objectives”.
Van Rel and Fombrun (2007) define corporate communication as ‘the set of activities involved
in managing and orchestrating all internal and external communication aimed at creating
favourable starting points with stakeholders on whom the company depends”.

Corporate Communication is a key function dedicated to managing and controlling of

information flows to different stakeholders, the communication of corporate strategy and the
development of information for various purposes.

It supervises internal and external communication, media relations, reputation management,

corporate social responsibility, investor relations, government affairs and to some extent,
marketing communication.
2.0
Samsung is a South Korean firm that ranks among the top manufacturers of electrical goods.
Samsung focuses in producing a wide range of consumer and business electronics, including
integrated systems, digital media players, semiconductors, and appliances. It now ranks among
the most famous names in technology and contributes to nearly one-fifth of all exports from
South Korea.

Lee Byung-Chull founded Samsung on March 1st, 1938, as a grocery trade store. Initially, he
traded noodles and other products made in and around Taegu, Korea, sending them to China and
its regions. (The word "three stars" is Korean for the corporate name, Samsung.) Following the
Korean War, Lee grew his company into the textile industry and established the biggest woollen
factory in Korea. To assist his nation in recovering from the war, he placed a strong emphasis on
manufacturing. During that time, his company profited from the new protectionist measures the
Korean government had put in place. These measures aimed to aid the country's chaebol large
domestic company by protecting them from rivalry and facilitating their access to credit. The
company bought three of Korea's biggest commercial banks in the late 1950s, along with an
insurance provider, a cement manufacturer, and a fertilizer manufacturer. In the 1960s, Samsung
bought other insurance firms, an oil refinery, a nylon manufacturer, and a department store.

To better compete in the textile sector, the company expanded its textile manufacturing methods
during the 1970s to include the entire production chain, from raw materials to finished goods.
There was also the creation of new subsidiaries such Samsung Heavy Industries, Samsung
Shipbuilding, and Samsung Precision Company (Samsung Techwin). Additionally, the business
began making investments in the chemical, petrochemical, and heavy sectors around this time,
giving it a strong growth path.

In 1969, Samsung made its debut in the electronics sector with a number of subsidiaries
dedicated to the sector. Televisions in black and white were their first offerings. The business
started exporting home electronics goods abroad in the 1970s. At the time, Samsung was already
a significant South Korean manufacturer and owned a 50% share in Korea Semiconductor.
The Samsung Galaxy smartphone series was introduced in the 2000s, and it swiftly rose to
prominence as one of the most lauded and popular smartphone lines worldwide. One of the
biggest microprocessor producers in the world in the late 20th and early 21st centuries, Samsung
also provided the processors for Apple's first iPhone models. The business has dominated the
global television manufacturing market since 2006. The Galaxy series began to include tablet
computers in 2010 with the launch of the Galaxy Tab, and smartwatches in 2013 with the launch
of the Galaxy Gear. The Galaxy Fold, a foldable smartphone from Samsung, was unveiled in
2019.

Samsung' probe into its Galaxy Note seven collapse has found that the overheating and burning
of the phones were caused by faults with their batteries. The firm had axed its iPhone rival in
October 2016 after an earlier botched recall and re-release. The recall is believed to possess a
value of $5.3bn (RM23.4bn) and was massively damaging the South Korean firm's reputation.
Samsung said that neither the software system nor hardware were at fault, solely the batteries.
Internal and unbiased investigations concluded that batteries were found to be the cause of the
Note 7 incidents and the South Korean technology giant was mentioned in a statement. So what
went wrong? The company stated that mistakes in design and manufacturing affected batteries
through different manufacturers.

According to the findings, the issues focused on inadequate insulation material in the batteries
and a layout that did not provide sufficient room to securely accommodate the batteries'
electrodes. Samsung stated it was "taking responsibility for our failure to ultimately identify and
verify the issues arising out of the battery design and manufacturing process". Samsung did not
mention the battery suppliers all through their presentation, though the last year had identified
them as their associate Samsung SDI and Chinese company Amperex Technology. Samsung
stated it did not plan to take legal action and that it accepted its responsibility for asking the
providers to meet certain specifications. "Samsung has done what they needed to do for now but
the true test will need to happen over time," analyst Bryan Ma of IDC informed the BBC. "If
successive products can be delivered consistently without incident in the next year or so, then
they will be in a better position to regain consumers' trust." Launched in August 2016, Samsung's
Note 7 was advertised as a large-display screen top-end device and placed as a rival to Apple's
iPhone. But in September, Samsung needed to keep in mind approximately 2.5 million
telephones after complaints of overheating and exploding batteries. The corporation insisted that
each one changed gadgets had been safe. However, that became observed through reviews that
the ones telephones had been additionally overheating.

The corporation stated there would be no repeat of the fires in future gadgets along with the
approaching S8. "We look forward to moving ahead with a renewed commitment to safety. The
lessons of the past several months are now deeply reflected in our processes and in our culture."
The company additionally stated it would not unveil its upcoming Galaxy S8 phone at the
Mobile World Congress in Barcelona, as expected, suggesting the flagship model's release can
be later in the year. The head of the company's smart phone business, Koh Dong-jin stated the
phone might now no longer get a launch occasion at the event in Barcelona in February, unlike
previous Galaxy S smartphones.
Samsung Note 7 - how occasions unfolded
• 24 August: The first report of Note 7 "exploding" appears in the news, quickly followed by
photos of extra smoldering Samsung.
• 2 September: Samsung announces a voluntary global recall of 2.5 million Note 7 telephones,
citing defective batteries. It gives a refund or replacement.
• 8 September: US aviation authorities and lots of airways inform passengers not to turn on or
charge the phone on planes.
• 9 September: The US Consumer Product Safety Commission tells people to prevent the usage
of the phone and on 15 September issues a formal recall.
• 5 October: Reports emerge of a replacement Note 7 overheating on a US flight. In the
following days, extra reports appear, and major US carriers prevent selling the
device or issuing replacements.
• 11 October: Samsung completely stops manufacturing the Note 7. It tells people to turn them
off and prevent using them.
• Since then: With a few customers nevertheless hanging on to their phones, Samsung pushes
out updates that restrict or prevent charging.
AIR ASIA

Tan Sri Anthony Francis Fernandes, is our Malaysian businessman who was born on 30th
April 1964. He is the founder of Tune Air Sdn. Bhd, with a vision to make flying available for
everyone which introduced Malaysians to the low-cost no-frills airline AirAsia with the phrase
"Now everyone can fly". Tony was able to transform AirAsia, an unsuccessful government-
linked commercial airline, into a highly successful low-cost airline public-traded firm. Since
then, he has formed the Tune Group of enterprises. On the other, he also owns the majority of
Queens Park Rangers Football Club. To add another, the owner of Caterham Group, the parent
company of Caterham Cars, a British automotive manufacturer, is also our one and only Tan Sri
Tony Fernandes.

His vision is : To be the largest low cost airline in Asia and serving the 3 billion people who are
currently underserved with poor connectivity and high fares.

Tony Fernandes is a visionary person who aspires to launch a low-cost, no-frills airline.
As a result, he is now a millionaire. As we can see from his biography, he was admitted as an
Associated Member of the Association of Chartered Certified Accountants before becoming a
Fellow Member. He was previously a Warner Music executive in Malaysia. He could have
become an accountant or continued his career in music, but he did not because of his vision.
When Time Warner Inc. announced its merger with America Online Inc., he began to follow his
dream. He is now the successful CEO of AirAsia, which has the phrase "Now everyone can fly."

Tony founded Tune Air Sdn. Bhd. in 2001 along with his 3 friends from the same
background as him. He purchased AirAsia, a Malaysian government-owned airline that was in
RM40 million debts for a grand total of RM1. Coming from a music background and deciding to
run an airline is unquestionably and an awfully daring move. During that time, Tony stood by
his premise “You only live once (YOLO)” and simply went with the choice to buy an airline.
AirAsia started business with just 2 planes, one destination and a group of staffs of just 250.
AirAsia paid of their debts of RM40 million, within two years when beginning business despite
the actual fact that they were in a very extremely difficult environment. Today, AirAsia flies to
more than seventy six destinations around the world and connects travelers from 3 continents,
Asia, Oceania and Europe with the assistance of over 10,000 staffs called ‘All Stars’.
In less than a decade, AirAsia won several awards such as ‘The Best Asian Low cost Carrier’ in
2010. The airline additionally won ‘World’s Best Low cost Airline’ three consecutive times from
Skytrax. What started as a simple desire of a young boy to initiate a low-cost airline has turned
into a reality for many others who want to fly. Air Asia is a pioneer in the use of cutting-edge
technologies. For example, they allow their visitors to pay for their reservations over the phone
using a credit card.

AirAsia introduced its newest IT booking innovation, in 2010, allowing consumers to

better manage their online bookings. This demonstrates that Air Asia genuinely cares about its
clients. Google Cloud is being used by AirAsia to improve pricing, boost revenue, and enhance
customer experience. With Google Cloud, AirAsia has become a "data first" company that can
collect, examine, and report on growing data quantities to solve complicated issues and develop
new revenue sources. In order to streamline internal operations and deliver a quicker, more
effective service, the airline is also utilising chatbots that are powered by AI.

In addition, although airline companies strive to deliver high service quality to all their
customers, they most often fail to do so because it is unable to fulfill the expectations of various
types of passengers (Kandampully, Zhang, & Bilgihan, 2015). This is due to the fact customers
are particular towards their desires and the chance of switching to competitors that offers higher
offerings is high. Although there are numerous challenges faced by the airline industry, Hasim,
Shamsudin, and Ishak (2018) argued that airline transportation’s demands still existed despite the
unforeseen tragedies and economic crisis. In fact, there are increments of airline passenger
escalated from 6.0% in 2014 to 7.4% in 2015 based on the compound annual growth rate (IATA,
2019). According to Delbari (2016), due to emergence of tough competitors and unforeseeable
crisis, airline companies have to think how to improvise the quality of their service to ensure
customers are satisfied and favorable corporate reputation can be built (Gupta, 2018).

Eventhough AirAsia had showed the best air transportation which made everyone to fly
but they forgot not everybody is IT savvy. The biggest problem is, the chatbot which is used to
liase with the customer is totally out. We can see the issues being posted on social media too.
This are the issues being discussed and to solve it, we are not sure yet.
Air Asia reports from social media

@AAndybells @lastminute_com I am having serious problems with your sister company

bravofly. I need to change a flight booked with them with AirAsia. Bravofly tell me to change it
on AirAsia and vice versa. Have spoken on live chat for hours. Utterly hopeless!

2022-07-06 21:28:48

@pariswillz289 I have never felt anger like dealing with AirAsia customer support. The
company is actually a joke. Can I please speak to an actual human, Ava the virtual assistant is
not working for me. @AVA_airasia @airasia @AirAsiaFilipino

2022-07-06 15:07:50

@armay_asyraf @AVA_airasia hello. Can u help me with my problem. My bigpoint is not appear
in airasia website. I already connect the bigpay with airasia with the same emel and contact

2022-07-06 05:31:58

@Hemantskjain @JM_Scindia @MoCA_GoI @mumairport flight no.I51569 Mumbai to Bengaluru

of 1st July 2022, engine not working still not take off from Mumbai airport and no response
from AirAsia and crew of flight .. pls help

2022-07-01 16:47:13

@BandiYusha @malindoair Please rectify your services accordingly, the flight changes or your
so called Operational Requirements issues shouldn't be burdening customers. If I'd known
this, I'd rather stick with Air Asia @airasia

2022-06-30 08:39:01
@IqbalAltamas @AirAsiaIndia @DGCAIndia @AAI_Official.I have booked ticket 2/7/22 from MMA-
IXR in airasia.But due to technical issue they have cancel the flight.on Tuesday rise a partial
travel but till now they did not approve it. I have called around 5-6time but only wait?.

2022-06-30 07:32:51

@arnab011 @AVA_airasia All flights towards Bagdogra (IXB) from CCU is being cancelled.
However there has been no cancellation notification or delay notification received from Air
Asia for 29th June's morning flight I5-582 (CCU-IXB) which will depart at 9:10am. Any update
from your end?

2022-06-28 18:50:58

@VmalRex What's the problem with airasia app. Suddenly rider call me and saying I book a
ride but then I never use my phone for 3 hrs. What the hell happening here?? Rider arrived. Pity
of him. Sort it out now @AVA_airasia @airasia

2022-06-27 13:39:22

@Snigdha78200715 @airasia I have a major issue with AirAsia regarding the baggage
allowance , while I was booking my ticket I was shown that I have been provided with 20kg
check-in baggage and when I was done with the entire payment there is no check-in baggage
only hand baggage of 7kg is given.

2022-06-27 10:55:17

@nicolenkk86 @i_m_mae @AVA_airasia I already DM my issues for flight rescheduled by

airasia, pls assist. Already chat with AVA, AVA claimed cannot valid my booking information..
thank you

2022-06-26 04:24:39

Based on the issues above, this indicates that AirAsia’s service quality has to focus more in
terms of responsiveness, assurance, and empathy in order to be competitive and maintain at the
same time as being financially solid within side the Malaysian airline industry. It is clear that
these young adults are very busy with their hectic lifestyle, thus, they expect a short and quick
response from AirAsia’s service provider. Besides, outcomes recommended that tangibles and
reliability had been now no longer the predictors of corporate reputation. This is probably
because of the fact that since AirAsia is a low-fee airline that targets to save costs by not offering
free lounge services and free food on board, thus, respondents’ perception and expectations in
the direction of tangibles and reliability is relatively low due to the fact their target is on
obtaining their flight aside from the extra services offered.

There were also issues on refunds which occurred this year when the endemic was implemented
in April 2022. This was because all the bookings done in 2019-2021 when the pandemic
attacked the world. But months after the low-cost carrier resumed flights following the lifting of
interstate and international border restrictions for Malaysians in October, hundreds of customers
have taken to social media to complain of poor customer service and long waits for refunds.

Rohana Betak, 60, said she requested a refund of 4,000 Malaysian ringgit ($911) after the
airline cancelled her flights between Senai and Kota Kinabalu, the capital of Sabah state,
following the introduction of a nationwide lockdown in March 2020. Thus, this in addition
explains the motives why tangibles and reliability were not the contributing factors of company
reputation. Responsiveness, assurance, and empathy were discovered to have a substantial
influence on corporate reputation.( https://www.aljazeera.com/economy/2022/5/23/airasia-
faces-customer-backlash-over-delayed-pandemic-refunds). Betak, who planned to visit the area
around Mount Kinabalu, Southeast Asia’s highest peak, with her family in October 2021, said
the airline’s automated online customer service only offered her the option of travelling on
different dates. Betak decided against accepting the offer due to uncertainty over when
restrictions would be lifted and concerns about catching COVID-19. Two years later, she says
she is still waiting for her money back. Many of the complaints have been directed towards
AVA, AirAsia’s online chatbot, which is the only line of communication between customers and
the airline for issues involving bookings or flights. Therefore, AirAsia’s management crew needs
to plan out their advertising and marketing techniques by focusing on the prominent 3
dimensions highlighted.
 In addition, the airline organization should focus more on empathy. Moreover, the
management team should deal on improving their service quality which includes working on
delivering services at a faster rate, appointing personnel who're extra knowledgeable, and
provide better training for them, and most importantly keeping the technicalities of the airplanes
on regular checks to make passengers feel safe and secured to travel using Air Asia.

3. Identify the types of media use

Radio, broadcast television, cable and satellite, print, and billboards are examples of traditional
media. These are the kinds of advertisements that have been used successfully in traditional
media campaigns for many years. But even among traditional media, there is still disagreement
about the most effective format.

The term "new media" refers to computational media that redistribute content via computers and
the Internet. Computer animations, video games, interactive computer installations, websites, and
virtual worlds are a few examples of new media. While experts in communication and media
studies have critiqued rigid divisions based on novelty and age, new media are frequently
contrasted with "old media" like television, radio, and print media. Unless they contain
technologies that enable digital generative or interactive processes, analogue broadcast television
programmes, feature films, magazines, and books are not considered to be new media.

Corporate communications departments play a key position in how investors, employees and the
general public perceive a company. They frequently report at once to a company’s CEO and
serve as advisers in managing a company’s reputation. They assist leaders put together for media
interviews, develop messages to deliver to investors and employees and recommend new tasks to
maintain companies on the cutting edge of communication with their stakeholders.

Media Relations and Communications

The definition of media relations is "the pattern of contact between an organisation and
those media sections that are interested in its work" (Ridgway, 1996,p.5). This can also be
further developed by describing it as developing connections with media figures and resources
that assist an organisation in receiving favourable, timely, and comprehensive editorial coverage.
Media relations are typically thought of as a constant and sequential process of establishing,
growing, and keeping a great relationship with media outlets for the goal of communication.

This can be the feature for which corporate communication managers are best known.
Media relations work consists of writing and distributing information releases and responding to
media inquiries. Corporate communicators oversee all plans for news conferences, such as
choosing the site for an event, arranging for banners and other graphics to be displayed at the
event, making ready packets of facts to distribute to the media and preparing executives to talk at
news conferences. Additionally, media relations also involve arranging for spokespersons to be
seen on local television and radio programs. Corporate communicators monitor newspapers,
television news broadcasts and some other outlets to look what the media is announcing about
the company and to devise strategies to deal with misinformation.

Media relations are the core activity in most of the public relations jobs (Wilcox 2005). Having
a good relationship with the media is considered by most organizations as their “lifeblood”.
Media relations have become one of the most important tools in any organization, especially for
organizations which are concerned with maintaining a high level of reputations. Organizations
that have a good relationship with the media will be able to deliver desirable information about
their organization to the public.

Customer and Public Relations

Building relationships with customers and responding to inquiries from the general public fall
below the public relations function of corporate communications. Duties on this area consist of
generating newsletters, brochures and different printed materials designed for the public.
Corporate communicators additionally control an organization’s website and social media
presence, which incorporates tracking what clients and customers are saying about the
organization on social networking websites and responding to misguided posts or requests for
information. Communication professionals may also reply immediately to calls and emails from
citizens and clients with questions on an organization’s plans or activities. They set up for
speakers from the organization to make presentations to local community groups and can
facilitate group tours of an organization’s operations.
Advising in Crisis Communication
When an event happens that threatens public safety or a business enterprise’s reputation,
corporate communicators function as advisers to CEOs and senior leaders in dealing with the
disaster. Special training in the issues particular to crisis communication enables company
communicators to prepare for events which include chemical spills, violence in the workplace,
an accidental loss of life on the job, layoff announcements and allegations of business enterprise
wrongdoing. They frequently work with a team of workers all through their organizations to
develop crisis communication plans earlier than disaster strikes. A crisis may also require
communications staff to work with attorneys, government regulators, political officials, and
emergency response personnel and communications team of workers from different
organizations when developing crisis messages.

Internal Employee Communications

In addition to conveying a company’s messages to external audiences, corporate

communicators may also be called on to function as employee communications’ managers,
which includes designing printed publications and writing emails to announce company news,
benefits information and training opportunities. Corporate communicators may facilitate focus
groups to learn what issues matter most to front-line employees. They advise senior leaders on
how to improve relationships with their staff and gain support for their initiatives. The
corporate communications staff may also manage a company’s Intranet and internal blogs.

In the press agent/publicity model, communications professionals use persuasion to shape the
thoughts and opinions of key audiences. In this model, accuracy is not important and
organizations do not seek audience feedback or conduct audience analysis research. It is a one-
way form of communication. One example is propagandist techniques created by news media
outlets in North Korea. The public information model moves away from the manipulative
tactics used in the press agent model and presents more accurate information. However, the
communication pattern is still one-way. Practitioners do not conduct audience analysis
research to guide their strategies and tactics. Some press releases and newsletters are created
based on this model, when audiences are not necessarily targeted or researched beforehand.
There was a time when many companies did not see the value of public relations, unless a
crisis happened. Even now, some public relations professionals face challenges in convincing
key executives of their value to the function of the company.

With the abundance of information readily available to audiences worldwide, companies are
more vulnerable than ever to misinformation about their brand. An audience’s attitudes and
beliefs about a company can greatly influence its success. Therefore, the public relations
professional helps to monitor and control conversations about a company or client and manage
its reputation in the marketplace. Viewing public relations as a key management function of a
business or an essential strategy to manage one’s individual reputation will help accomplish
important goals such as establishing trust among key publics, increasing news media and
social media presence, and maintaining a consistent voice across communication platforms.

Probably the most important difference between marketing, public relations, and advertising
is the primary focus. Public relations emphasize cultivating relationships between an
organization or individual and key publics for the purpose of managing the client’s image.
Marketing emphasizes the promotion of products and services for revenue purposes.
Advertising is a communication tool used by marketers in order to get customers to act. The
image below outlines other differences.