MGMT 512 – Corporate Governance 0055133 – Nur İPEK KARAGÖZ
SAMSUNG GALAXY NOTE 7 FAILURE
1. Summary of what had happened
Samsung Electronics produced and marketed the Samsung Galaxy Note 7 which is an Android tablet.
Although it is the sixth main device in the Galaxy Note series and a successor to the Galaxy Note 5, Samsung branded its series number as "7" instead, so that consumers would not perceive it as being inferior to the
flagship Samsung Galaxy S7. The flagship phone was also meant to compete with arch-rival Apple's iPhone
7, but instead has done huge damage to the Samsung brand.
“The Galaxy Note 7 is an evolution of the Galaxy Note 5 that inherited hardware components and
improvements from the Galaxy S7. Demand
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Credit
Suisse analysts estimated that Samsung would lose at least US$17 billion in revenue from the production
and recall of the Galaxy Note 7.” [3]
[1], [2], [3] https://en.wikipedia.org/wiki/Samsung_Galaxy_Note_7
MGMT 512 – Corporate Governance 0055133 – Nur İPEK KARAGÖZ
Samsung Electronics vice chairman Kwon Oh-hyun told investors “I'm sorry for the scandal, I apologize
once again for the mistake with the Note 7 last year. It was a failure that arose from trying new technology”
at the smartphone maker's annual shareholder meeting in Seoul. While he was apologizing from investors,
he was also denying that they did anything illegal.
Kim Sang-Jo, a Samsung shareholder and head of the Seoul-based monitoring group Solidarity for
Economic Reform said that it was a problem caused not only by technical errors but also by rigid corporate
governance structure. Only messages delivered by Lee himself will be significant, so I hope he will come
out in public to talk about these pressing issues of how to improve corporate governance and corporate
culture”. But Mr. Lee did not attend the shareholder
I am writing to address some concerns I have about the future of your company, Martha Stewart Omnimedia (MSO). Perhaps the one issue that you are grappling with at present is about the Imclone scandal. You have been accused of selling $227,000 worth of Imclone stock based on inside information. Because of these charges of insider trading, your critics have summarily associated you with other disgraced company directors: Kenneth Lay of Enron and Bernard Ebbers of WorldCom. But the strange thing about your case is that while other CEOs have been charged for making use of their own companies to gain profit for themselves, you, on the other hand, have not purposefully misled investors or doctored MSO’s accounts.
In “Apology”, Plato talks about Socrates’ life and his qualities. Socrates appeared as talented as a simple man, friendly in communicating, quick-witted and sharp in repartee, love people Athens, and especially respect truthfulness and honesty. As Plato’s essay said, Socrates believed that the care of the human soul is the biggest concern of the people, so he spent a lot of time considering his personal life and the lives of the people of Athens. There are 2 charges against Socrates in the Apology. First, Plato shows that the philosophy of Socrates started from an event that seemed to have the arrangements of destiny – when he was middle-aged, Socrates’ friend, Chaerephone, went to the temple Delphi at Athens to see if there was anyone wiser than Socrates?
While profits from semiconductor sales are keeping stakeholders happy, Samsung is pursuing a differentiation strategy in the smartphone market. The managers are committing more resources to researching something they think will revolutionize phones. author name writes, “All smartphone makers face the issue of stagnancy in hardware innovation. Samsung is currently working on developing a smartphone with foldable displays…” (Tanner). There has not been a ground-breaking development in smart phones in the last few years, so the managers believe
Samsung has been a leading global organization in technological innovation for more than 70 years. For the entirety of its existence, Samsung has valued their employees by providing them with opportunities to grow within the company and to reach their full potential. They believe their success is derived from the happiness of their employees so they have adopted the philosophy “a company is its people”. (“Values”)
Lyke, B and Jickling, M. (2002). WorldCom: The Accounting Scandal. CRS Report for Congress, p2.
Besides Apples iPhone being one of the most expensive phones in the market right now, many of the other Smartphone competitors also engage in price wars with Samsung in attempt to pull market share away from both Samsung and Apple, the two largest Smartphone market shareholders. Engaging in price wars creates a big threat to Samsung because competitors are able to drop down prices for their phones in order to
Samsung is an innovative company that focus highly on quality and specialised products, they became an electronics company in 1969 and they released their very first mobile phone in 1988. In 2006, they became the global leading brand within the television market and in 2011, they became the latest smart phone provider in the world and their successful innovation is furthermore expanding. Today Samsung Electronics has proven to be one of the most successful global brands to follow.
Research and development plays a big role here at Samsung creating the ability towards taking the next step of building a better future. In 2015, Samsung spent $14 billion dollars on research and development alone, so it’s surprise why we are willing to spend $50 million on the first year of the product. We will use our research and development team to improve the quality of our smartphone via updates and discover reasons why consumers are passing up on our new smartphone. From year 1 to year 2 there will be an increase of 16% in the research and development expense and from year 2 to year there will be a 7% increase. Most of our highly praised tech like the Galaxy S7 and S7 Edge are due to are research and development teams. The general / selling/ administrative expenses all include fixed costs, advertisements, and direct and indirect costs. With the percentage nearing the profit margin it represents that we’re are in the competitive smartphone market. The change from year 1 to year 2 for the general / selling / administrative expenses increased by 9% and it increased again but only by 4%. The pie graph at the bottom displays the % that goes to in expense. For General / Selling / Administrative expense, I’ve separated the advertisement budget to its own
The very first iPhone was announced by the founder of Apple, Steve Jobs, in 2007. His vision was to reinvent the phone. iPhones have revolutionized smartphones and have shaped the cell phone industry into what it is today. On January 9, 2007, Steve Jobs put together an incredible keynote presentation. He stated that he would be “introducing a wide-screen ipod with touch controls, a revolutionary mobile phone, and a breakthrough Internet device” (Ritchie, 2015). The audience assumed that this meant that Mr. Jobs would be launching three separate devices. However, it was only one device, the iPhone. Within the past 7 years, Apple has been able to tweak its iPhones by incorporating major redesigns. These redesigns use combinations
Apple keeps product SKUs simple, the salespeople inside the stores have the in depth knowledge of the products. Just think that when you enter an Apple store and one of the sales staff greets you, you’re not asked, “How can I help you?” Rather they ask, “What would you like to do today?” They satisfy you by going to the heart of any technology user’s question, any question related to the technologyand the user is interested in.
No company that falls behind the competition is guilty of standing completely still. But sometimes our efforts fail because of the level of commitment to change.
Samsung Electronics Company (SEC) began doing business in 1969 as a low-cost manufacturer of black and white televisions. In 1970, “Samsung acquired a semiconductor business” which would be a milestone that initiated the future for SEC. Entering the semiconductor industry would also be the beginning of the turnaround phase for SEC. In 1980, SEC showed the market its ability to mass produce. SEC became a major supplier of commodity products (televisions, microwave ovens and VCRs) in massive quantities to well known original equipment manufacturers (OEMs). For this reason, Samsung was able to easily transition into a major player in the electronic products and home appliances market (Quelch & Harrington, 2008).
image of Samsung in China and led to a loss of US$210,000 in 1998 for
Samsung has the widest range of product portfolio that include: Mobile phones, home appliances, TV/Video/Audio, tablets, PCs, printer, camera, camcorder, periphe...
Maybe everyone has different answer for which is the best between Apple and Samsung. You cannot deny that Apple is leading the smartphone market and now Apple became the world most valuable brand in 2013 and still is. Apple brought the revelation, Apple created so many wonderful designs and products and now Apple products go into our daily life become a part of our life. It is important to be unique and irreplaceable, whoever can do that they can lead the