Samsung Case Study: The Background Of Samsung Electronics

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The background of Samsung: Samsung was established by Byung-Chull Lee at the age of 29, in March 1938. It started as a ‘’smaller trading company in Korea with a capital pf 30,000 Korean won, selling dried fish, fruit and vegetables.’’ The Samsung brand offers diverse products and services through various companies. Samsung Electronics comprise of three(3) business divisions namely; IT & Mobile Communications (IM) , Consumer Electronics (CE) and Device Solutions (DS). This study will focus on the IM division (manufactures and sells smartphones, computers, network systems, and other telecommunication devices) in particularly the challenges it encountered with the Samsung galaxy note 7. Samsung electronics was established, in January…show more content…
Attempts to replace the handsets proved futile as the same issues were reported, leading to a final discontinue (sales, exchange and production) of the handset early October 2016. The defective batteries caused the handset to generate excessive heat, resulting in fires and explosions. The defects on the handset was so serious that resulted in its banning from flights, which started in the United States and later spread to other countries. According to the investigation instituted by Samsung, it revealed that the ‘’battery cells itself was found to be the culprit’’ that led to the burnout. The current performance of the organisation and the reason for the…show more content…
Samsung shares on the Korean stock market dropped 6% after the announcement on the intention to halt exchanges and sales globally. Even though Samsung lost tens of billions in market cap in early September, it still hit a new high days before announcing it would halt sales. According to the Market watch, viewed 12 November 2017, https://www.marketwatch.com/story/samsung-profit-soars-despite-galaxy-note-7-woes-2017-01-23, despite the failure of the Galaxy note 7, Samsung Electronics Co has ‘’recorded its highest operating profit in more than three years, as booming sales of components helped the company shrug off the recall of 3 million Galaxy Note 7 smart phones, Samsung sold more smartphones than any other device maker in the first quarter, earning the company 26.1% market share worldwide, according to data from research firm TrendForce’’ At time of compiling this report the Samsung Sustainability Report for 2017, was not issued as the financial year end is 31 December. This would have assisted in providing an well informed analysis of its financial position following the failure of the Galaxy note 7. The analysis given by ....... A recommendation as to a suitable course of action for the organisation to now
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