Samsung Electronics is a South Korean-based multinational corporation focused on the production of electronics and technology. Samsung operates under the principled vision of Inspire the World, Create the Future. Based on McKeown & Durkin (2016), embraces the know yourself principle. It has the ambition of being the leader in innovative technologies and solutions. It then evaluates its resources and possibilities and sets specific goals such as achieving sales goals and becoming a top 5 global brand in terms of value. Finally, Samsung recognizes its unique value proposition as being one of the best producers of electronics, because of its operational excellence and innovation prowess achieved through tremendous investment into research and development as well as quality improvements over decades on the market (Samsung, 2020).
Another major part of internal analysis that drives Samsungs strategy is understanding its customers and competition. Despite the brands widespread recognition worldwide, Samsung earns just a fraction of its revenue from commercial product divisions. Its most profitable divisions are its core electronic components segments creating world class displays (ordered and used by many of its competitors) and chips which are in high-demand consistently (Lawler, 2021). Therefore, seeing this trend years ago, Samsung has reorganized to invest heavily into R&D and leverage its intellectual and technological resources in order to produce not only the high quality powerful electronics products that its customers enjoy, but also become a massive global supplier to other firms, charging a premium price. By doing so, it is able to attain its vision by changing the world through its technological production, but also achieving its financial and operational goals.
In the context of external analysis, based on the grid proposed by McKeown & Durkin (2016), Samsung is at the prime point, it is mainstream, in the mass market, and generally warmly perceived by customers. However, it is seeking to expand, to be at the very peak of being the hottest and most desired product available in its industry. While memory chips, displays, and mobile technologies are a major growth factor for Samsung, going forward into the next decade, it identified data and artificial intelligence as the primary engine of growth. Samsung will invest over $350 billion over the next 5 years into the strategic areas of artificial intelligence, semiconductors, and biotechnologies (Holt, 2022). It sees these areas of tremendous growth opportunities for both the company and the industry, once against operationalizing its vision of changing the world through technology and human innovation.
Samsung Company is a South Korean international corporation whose headquarters are located at Samsung Town in Seoul. The organization comprises multiple affiliate businesses that run on the Samsung trademark. Lee Byung-Chul established the organization in 1938. Initially, Samsung was a trading company. The corporation specialized in grocery farming and the production of noodles (Choi 374). It also sold dried food locally. Between 1938 and 1958, it used the Samsung Byeolpyo noodles logo, which represented its primary line of business. In 1947, the Korean War led to Lee fleeing Samsung Town, which resulted in the closure of the business (Choi 376). He opened a sugar refinery business in Busan. Later, Lee and Cho Hong-Jai, founder of Hyosung Group established a new business that became known as Samsung Moolsan. In 1951, the corporation split, and Samsung Moolsan transitioned to Samsung Group. The Corporation embarked on an aggressive diversification strategy resulting in it venturing into the electronic industry and shipbuilding business.
In 1968, Lee invested in the electronics business, culminating in the establishment of Samsung Electronics, which is a subsidiary of Samsung Group. In 1970, the company manufactured the first 12-inch black-and-white television set (TV) (Choi 381). It continued to look for ways to enhance the manufacture of TVs, and three years later, Samsung Electronics made a 19-inch TV popularly known as Maha 506. In 1978, the business became the global leader in the manufacture of television sets. The increased diversification of product lines led to Samsung manufacturing its first personal computer in 1983. The companys objective was to become the leader in the electronics industry. In 1991, Samsung ventured into the mobile phone business. Investment in modern technology enabled the organization to produce the first liquid crystal display (LCD) screen in 1995 (Choi 385). After a ten-year period, Samsung became a leader in the production of LCD screens globally.
The organizations logo has evolved. Today, Samsung has a blue logo that depicts consistency, steadiness, and corporate social responsibility. The corporation also has an audio logo. Samsung Company uses a unique font dubbed SamsungOne, which enables the organization to realize the steady and widespread visual distinctiveness of its products. The font was devised to be applied across Samsungs different device portfolio. It made it easy for customers to read all Samsung products ranging from the smallest gadgets such as smartphones to the most massive electronics like refrigerators and TVs.
In 2004, the organization surprised the world by developing the first-ever 46-inch LCD television (flat screen). In 2007, Samsung realized the dream of becoming the global leader in the electronic industry (Pratiwi 47). In 2012, Samsung Electronics became the largest manufacturer of mobile phones worldwide. In 2017, the business continued to internationalize its electronics and activities. At this time, semiconductors and mobile phones are the significant sources of revenue for the corporation. Presently, Samsungs brand value is ranked sixth globally.
Mission and Vision
Presently, Samsung Company has four primary product lines, which are mobile phones, television and home theatre, computing, and appliances. The business has a significant influence on South Koreas politics, culture, media, and economic development. Jain and Kaushik argue, Samsung has been a major driving force behind the miracle on the Han River (17). The corporations affiliates produce over 20% of the countrys total exports. Samsungs vision is to inspire the world through the development of state-of-the-art products. The companys mission is to stir up the universe through innovative designs, products, and technologies that improve peoples lives and promote social growth.
Works Cited
Choi, Philip PilSoo. Evolution of Samsung Group and its Central Office: Imperfect Market and Capacity-Building. Asian Business & Management, vol. 15, no. 5, 2016, pp. 370-398.
Jain, Hardik, and Shantanu Kaushik. Making of Two South Korean Chaebols: Samsung and Hyundai. International Journal of Advanced Research, Ideas and Innovations in Technology, vol. 4, no. 1, 2018, pp. 12-31.
Pratiwi, Detha Misgi. The Influence of Brand Image, Brand Trust and Customer Satisfaction on Brand Loyalty (Case of Samsung Smartphones). Journal of Berkala Ilmiah Efisiensi, vol. 15, no. 5, 2015, pp. 45-61.
Are you interested in understanding how the Six Sigma model can be applied to improve a companys performance? If so, you might find it helpful to read this case study on Samsungs adoption of Six Sigma in its supply chain. The case study provides detailed information on how Samsung implemented Six Sigma and its positive impact on the companys operations and business performance. Read this report to gain insights into how Six Sigma can be effectively used to improve a companys supply chain.
Businesses are working toward limiting their operation costs to achieve competitive edge against competitors in their respective industries. One area where quality management has been focused on by organisations is supply chain management, which is considered as a perfect way of managing inventory.
Supply chain management has increasingly received recognition as a strategic means of re-inventing an organisations entire business operation and planning (Evans & Lindsay, 2008).
Samsung Group, which manufactures electronic components as well as financial and services corporation, has a complex global supply chain that has in turn integrated advanced planning mechanisms and scheduling. This report highlights on Samsungs adoption of the six sigma model and how the company has used the model in enhancing its operations and general business performance.
Supply Chain Management Six Sigma Black Belt
The initial course in adoption of six sigma at the Samsung Group is the establishment of the methodology through a training program that lasts for four months. The training program mainly focuses on training and mentoring, and it is referred to as the Supply Chain Management Six Sigma Black Belt (Choi et al., 2012).
As part of the training programme, full-time training is offered for a period of one week each month for four months. This is supplemented by guiding of supply chain management Black Belts as appertains to their selected projects. Prospective employees at the Group have to finish three similar projects before receiving a supply chain management Black Belt full certification.
Leveraging of six sigma within the established human resource belt system enables Samsung to alleviate supply chain management talent shortage. This has been the most significant obstacle in improving the performance of supply chain management.
The anticipation of the Samsung Group is that the supply chain management six sigma will lead to enhancement of performance within the supply chain management function owing to greater understanding of the supply chain in general (Choi et al., 2012).
Samsung equally expects that its move to adopt the supply chain management six sigma will in turn lead to an improved Return On Investment (ROI). The existing training program is structured within Samsungs Six Sigma Academy with the objective of developing talent, as well as future leaders at the company.
As Bae and Kim (2004) assert, the Groups establishment of a Six Sigma Academy was done with an aim of educating employees and building up a team of specialists empowered with the ability to solve problems.
Samsung Six Sigma Supply Chain Management
Samsungs Supply Chain Management Business Team drew up the main methodology that was used to develop the supply chain management six sigma at the company.
The eventual six sigma model that was adopted at Samsung was an integration of the various approaches that had been made at different companies. The companies that had successfully adopted and integrated six sigma included General Electric (GE), Honeywell, and DuPont.
Tailoring of Methodologies
GEs most critical approach in adopting and implementing six sigma was based on tailoring the motivating methodologies in as far as specific needs together with characteristics of the business units were concerned.
Samsungs Business Team focused its research on GEs business, which in turn has taken six sigmas process innovation generic methodology. GE has tailored the methodologies in such a way that they reflect specific needs in as far as product development activities and system plan and implementation are concerned.
GE medical systems definition, measurement, analysis, design, and verification (DMADV), in particular, attempted to take into consideration the process redesign and process management within its six sigma model.
According to Hammer (2002), GEs method and procedure attempted to move beyond the DMAIC that was originally designed for the development of high-quality products. The GEs definition, architect, build, testing, and launching (DABTL) is an approach of the six sigma model that was designed for the development of systems.
Supply Chain Operations Reference (SCOR)
Samsungs main reason for analysing DuPonts six sigma approach and design was based on the companys combination of its six sigma principles through the SCOR model. The SCOR model acts as a good model for enhancing communication amongst players in the supply chain management. The most integral management processes of SCOR include plan, source, make, as well as deliver, and return.
Burgess and Singh (2006) highlight how important it has been to use the SCOR framework in undertaking supply chain analysis. According to Burgess and Singh (2006), DuPoints six sigma utilizes the function deployment tool (QFD) as a quality tool for customizing services and processes to meet customer specifications.
Lean Methodologies
Samsung Business Teams interest and focus on Honeywell mainly bordered around the latters extensive and successful application of lean operation methods. Honeywells successful development and eventual ownership of the Six Sigma Plus, also known as DMAIC, was the main influence behind Samsungs decision to borrow a leaf from the firms approach.
DMAIC model utilizes functions of lead manufacturing together with six sigma concepts. Some of the commonly used lean manufacturing tools are the value stream and thought process maps (Flight Global, 2003).
The Samsung Business Team arrived at a decisive conclusion after analyses of the different six sigma approaches and models. This conclusion consequently led to the development of the supply chain management six sigma methodology at the Group.
The Samsung Supply Chain Management (SCM) Six Sigma
SCM projects to involve both design and improvement
Often, six sigma projects target to improve the performance standards of an existing system or redesigning the processes and systems. When talking about six sigma considerations and terminologies, redesigning of systems and processes are addressed through defining, measuring, analysing, improving, and controlling; DMADOV in short (Yang & El-Haik, 2009).
On the other hand, improving the performance levels of the existing systems is often addressed through defining, measuring, analysing, improving, and controlling, referred to in short as DMAIC.
According to the estimates by the Samsung Business Team, it anticipated that close to 75 percent of the supply chain management projects would involve redesigning, with the remainder of the projects focusing on process improvement.
After the above findings by the Business Team, Samsung resolved to adapt the extant approaches of its six sigma model, where both improving and redesigning processes were settled upon.
With the anticipated mix of projects as highlighted, this new approach pursued by the company closely supported process redesign compared to improving the processes, although it continued to incorporate other relevant elements that targeted process improvement.
DMADOV
This methodology proved to be inadequate in offering the necessary support that was required at Samsung in order to execute the whole range of the supply chain management projects (Yang et al., 2007). DMADOVs origins are from the design of a product, with the basis of supporting projects within the supply chain.
However, its major variation is in the fact that the project teams tasks would be to give specifications on how a suggestion on improvement would eventually be realised after conducting analyses. This is opposed to expecting the project team to optimise or focus on design as the case is with DMADOV (Yang et al., 2007).
System Development Option
It is common to realize successful system management following pursuant of six sigma projects under supply chain management. This calls for a new approach to be taken to facilitate processes that would realize successful system building.
Nevertheless, most projects undertaken to revolutionize supply chain management call for changes to be done in the current system. Consequently, it is important to have an approach in hand such that it is possible to come up with an alternative enablement activity that can see system implementation take effect.
DMAEV
Samsung pursued the DMAEV approach, where five design parameters including process, organisation role and responsibility, operation rule and policy, as well as system, and performance measure were incorporated within the six sigma model.
Other critical aspects that were also incorporated included the supply chain management-related methods of investment value analysis and process modelling, as well as the map techniques of the value chain.
Define phase
The phase seeks to name the entire project, with an inclusion of the problems that require being tackled, the goal and scope of the project, together with the expected outcomes and the project schedule (Kumar, Wolfe & Wolfe, 2008).
The initial step is identification of critical issues via the customers voice (VOC), together with the business voice (VOB). An analysis of the supply chain managements related processes is also undertaken. As a result, the customers critical to quality characteristic (CTQ) is identified, while also determining the CTQ-dependent variable.
Measure phase
This phase determines the CTQ-dependent variable, establishes a different target level, while also finding the important explanatory variables. Other specific indicators are also identified after verifying the CTQ-dependent variable.
The indicators can substitute the dependent variable. The current CTQ-dependent variable is then measured before an enhanced target level of the same index is established. The potential problem causes of each of the five parameters are also deduced (Kumar & Sosnoski, 2009).
Analyse phase
At this stage, the hypotheses of the potential problem causes are generated and effectively evaluated in order to reject or prove them. Evaluation of the hypotheses considers both quantitative, as well as qualitative methods. Various statistical tools are used in the quantitative analysis, and they include ANOVA correlation, and Pareto analysis (Kumar, Strandlund & Thomas, 2008).
Qualitative analysis, on the other hand, makes use of process mapping, value stream maps, as well diagrams that reflect cause and effect. The objective of this phase is to decide on the vital few variation causes.
Enable phase
The various ways of improving the as-is are identified in this phase, with a to-be plan also drawn out. The use of qualitative function deployment (QFD) is undertaken at this juncture in order to pick on the subjects for improvement as appertains to the vital few variation sources. Detailed action items are also elicited for purposes of achieving improvement.
Verify phase
The final phase in this process seeks to establish a test plan, with the main objective of validating and verifying the solutions selected in the previous enable phase (Kumar & Sosnoski, 2009). The change management plans, as well as control mechanisms are developed here before operationalisation of the optimal solution.
Supply Chain Six Sigma Application
Define
Investigations of the internal, as well as external business environments formed the basis of the VOC/VOB analysis at Samsung. A major aspect of the initial stages of the application involved identifying the projects clients.
The external business environment turned out to be challenging as the devaluation of the local currency, the won, as well as a rise in the prices of crude oil offered challenges to the business operations for the company (Miltenburg, 2005). Additionally, Samsung endured a challenging moment as operation costs, particularly those related to holding surplus inventory, affected the firms profitability.
The company identified its business units, including planning and administration, top management, sales, purchasing, production, transportation, and global operation centre as the primary clients of the project.
The definition stage also involved identifying inefficiencies and problems that affected the supply chain management business processes. This involved production-related activities such as manufacturing and material purchasing, global operation activities such as weekly production plan, order fulfilment, and inventory management.
The sales activities included order management, forecasting, transportation, sales, and transportation. Up to eight inefficiencies were realised. They included lack of visibility in all the critical areas of process replenishment, forecasting of inventory and demand, packing and shipping, as well as weekly production planning.
From the above analysis of the VOC/VOB process, two probable CTQs were drawn out. They centred on demand stabilisation on the one hand, and inventory stability on the other hand (Miltenburg, 2005). Samsung evaluated the priority of the two aspects elicited in line with the VOC/VOB findings of the process analysis. This saw the development of a management process pegged on the inventory being settled upon as the CTQ aspect.
Measure
The surplus inventory rates baseline level was established at over 10 percent after making the appropriate definitions. This led to the establishment of a new target, which was put at 6 percent. The new changes required that Samsung reduces its surplus inventory by 42 percent.
Five design parameters that included operation rule and policy, process, performance measure, system, as well as organisational responsibilities and roles were established as the probable root causes of variation (Miltenburg, 2005).
A consideration of the project owners that also involved client groups representatives eventually settled on seven causes of variation. These seven causes encompassed the three critical parameters of role and policy, process, and system. Thus, the three parameters formed part of the variation sources.
Analyse
The selected variation sources had the respective data collected in order to enable the firm undertake an extensive data analysis. The results included both qualitative and quantitative analyses, including the inclusion of statistics, graphs, Delphi method, benchmarking, document review, and on site visit.
According to the data results that were obtained from the analyses, three variances exceeded the surplus inventory level, which was also established as the standard excess inventory management (Miltenburg, 2005). The factors were considered to have had a significant effect on the CTQ.
Enable
Out of the three vital few variance factors, Samsung came up with three probable solutions as a way of improving the supply chain management. Each solution had extensive improvement subjects that were elicited with regard to the established five parameters. The entire information was formulated via a quality function deployment, abbreviated as QFD.
Samsung thereafter used benchmarking to develop the three probable solutions of what it anticipated in solving the challenges it faced. The company determined how highly relevant a web-based user interface that had been designed for purposes of managing inventory turned out to be. This was with regard to the improvement subjects that had been identified in the quality function deployment.
Necessary changes were eventually designed and implemented using optimal solution. The basis for this included the five parameters that had previously been identified. An illustration on the process parameter involved identification of all the processes that were listed for purposes of requiring improvement.
DABTL was employed in the case of the system parameter in order to identify the system requirements, as well as architect, build, conduct tests, and operationalise the web-based system (Choi et al., 2012).
Verify
Pilot tests were carried out in two stages within the company in a selected business unit. The initial stage focused on providing proof concerning the applicability of processes that had newly been proposed, roles and responsibilities, rules and policies, as well as performance measure. The systems pilot test did not feature in this initial stage.
In the second stage, all the improvement subjects that were linked to the previously established five parameters were piloted (Choi et al., 2012). The results of the pilot test saw a reduction in the range of 37 percent in as far as the level of the surplus inventory was concerned.
The actual changes in figures reduced to 6.5 percent from a high of 10.4 percent. The drop in inventory levels fell short of the anticipated target, but it saw associated costs drop to $1.9 million from a previous high of $2.7 million.
Samsung later developed a control and change management plan. The control plan comprised of performance indicators, such as inventory consumption rate, the methods that needed to be followed to control, the respective business unit that was responsible for every of the individual factor, and the necessary actions required for unexpected events.
In particular, the change management took into consideration important aspects, such as the critical success factors needed for systems to register success, training, communication among different groups, incentive systems, and ways through which potential conflicts could be resolved.
Conclusion
Samsung Groups adoption and eventual implementation of the supply chain management six sigma was purposely meant to improve process and quality performance at the company. The company equally sought to synchronise its value chain with regard to inbound logistics and customer services, as well as sales in general. Samsung has attained growth and high levels of innovation by implementing the six sigma model.
The implementation of the six sigma model within the companys supply chain management has seen Samsung reduce and eliminate costs that were previously associated with holding surplus inventory in some cases.
Another critical focus of the company even as it implemented the six sigma model was to produce workers with the highest skills and knowledge that could enable the company compete effectively in the market with its rivals. This has in turn created a deep knowledge reservoir in the company, which is used to equip employees for purposes of enhancing their performance going forward.
References
Burgess, K., & Singh, P. (2006). A proposed integrated framework for analyzing supply chains. Supply Chain Management: An International Journal, 11(4), 337-44.
Choi, B., Kim, J., Leem, B., Lee, C., & Hong, H. (2012). Empirical analysis of the relationship between Six Sigma management activities and corporate competitiveness: focusing on Samsung group in Korea. International Journal of Operations & Production Management, 32(5), 528-550
Evans, J. R., & Lindsay, W. M. (2008). Managing for quality and performance excellence, 9th edition. Mason, OH: Thomson
Hammer, M. (2002). Process management and the future of six sigma. MIT Sloan Management Review, 43(2), 26-32.
Kumar, S., & Sosnoski, M. (2009). Using DMAIC Six Sigma to systematically improve shopfloor production quality and costs. International Journal of Productivity & Performance Management, 58(3), 254-273.
Kumar, S., Strandlund, E., & Thomas, D. (2008). Improved service system design using Six Sigma DMAIC for a major US consumer electronics and appliance retailer. International Journal of Retail & Distribution Management, 36(12), 970-994.
Kumar, S., Wolfe, A. D., & Wolfe, K. A. (2008). Using six sigma DMAIC to improve credit initiation process in a financial services operation. International Journal of Productivity and Performance Management, 57(8), 659-676.
Miltenburg, J. (2005). Manufacturing strategy: how to formulate and implement a winning plan, second edition. New York, NY: Productivity Press.
Yang, H. M., Choi, B. S., Park, H. J., Suh, M. S., & Chael, B. K. (2007). Supply chain management six sigma: a management innovation methodology at the Samsung Group. Supply Chain Management: An International Journal, 12(2), 88 95.
Yang, K., & El-Haik, B. (2009). Design for six sigma: a roadmap for product development. New York, NY: McGraw-Hill.
Credible information on quality improvement is important to this organization.
The organization to adopt quality electronic production techniques.
Methodology used helped in data gathering.
This organization to advance its competiveness based on the findings this presentation.
This presentation will discuss the importance of adopting and embracing quality provisions within your. It is important to adopt quality electronic production techniques due to the sensitive nature of the electronic gadgets. This forms the proposed program that this organization should adopt. Information in this presentation emerged from secondary techniques helpful in data gathering. This ensured achievement of in-depth information applicable in facilitating the realization of factual findings (Lehman et al, 2010). Analytically, effective production of quality electronics will require this organization to set proper planning and use of non-defective materials. It is recommendable that this organization should advance its competiveness based on the findings of this presentation.
Introduction
Organizations endeavor to succeed despite the challenges.
Quality improvement critical for this organizations advancements (Kothari, 2005).
Data was acquired through secondary resources.
Results/findings helpful in advancing this organization.
Recommendations will incorporate proposals (Dantzker & Hunter, 2012).
This presentation will address growth-oriented and credible performance issues established to steer the production of electronic facilities (with functional value) in this organization. The discussions will be based on the diverse sub-headings set to improve service delivery in this organization. Evidently, this organization should enact quality improvement provisions based their validity and relevancy in the current market. Analytical aspects used in this study provided credible information on quality provisions for this organization. It will be crucial for this organization to advance and eradicate possible defects that might compromise the quality of electronic items produced. It is imperative to agree that this organization endeavors to grasp considerable market share globally; nonetheless, this can be achieved fully through establishment, ratification, and embracement of quality production processes.
Statement of the Problem
This organization experiences low performance and quality hitches.
Items do not match functional specifications and durability required (Luo, 2001).
Quality techniques to be adopted promptly.
The ratings of this organization indicate low performance rates. The company has registered low ratings on scientific, environmental, and social ratings despite credible advancements in technologies (GoodGuide, 2012). You are required to score 10 out of the possible 10 due to the sensitive nature of your business (Luo, 2001). This has been hindering your performance in various aspects. Consequently, it has called for the need to present a report on the imperativeness of adopting quality techniques of manufacturing excellent software(s). The information is set to streamline operations at this institution by facilitating the adoption of probable manufacturing procedures and integration of superior processes of electronic assembling.
Methodology Used
Execution of extensive study for this organization.
Methodology identified (Lehman et al., 2010).
Secondary technique of information gathering applied to help in the acquisition of reliable data.
Credible investigative technique adopted and purposive information gathering method applied.
Analysis and recommendations made for this organization.
This presentation report is provided after the execution of an extensive study through application of clear guidelines and procedures from the initial stages to completion. Secondly, the recipients of the report were identified where the board members, administrators, employees, and consumers of this organization are the probable beneficiaries. The information will enhance your knowledge of the effective electronic production techniques worth adoption. Secondary technique of information gathering was applicable to help in the acquisition of reliable data (Kothari, 2005). A credible investigative technique was adopted where purposive information gathering method was applied. The technique helped in the realization of realistic, relevant, and accurate data that addresses the purpose of the study sufficiently. This enables identification of data collection techniques (DCT) that purposely provide relevant information required by this organization (Dantzker & Hunter, 2012).
Results and Analysis
Implementation of quality production techniques requires absolute dedication and determination.
Quality provision critical.
This organization to initiate proper supervisory measures
Hire qualified Quality Assurance personnel (Chitale & Gupta, 2007).
Processing of excellent electronic items important (Evans & Evans, 2008).
Implementing quality production of electronics in this organization requires absolute dedication and determination of various stakeholders. Evans & Evans (2008) states that realization of highly functional electronic products that fosters individuals performance and communication requires eradication of inconsistent manufacturing practices that might compromise quality. Quality is a critical provision in an organizational environment (Chitale & Gupta, 2007). This institution should also initiate proper supervisory measures and hire qualified Quality Assurance personnel to manage assembling of electronic parts. As noted, it is significant to implement quality electronic manufacturing techniques. Quality must be nurtured through systematic approaches. The approaches must be informed scientifically and technologically to avert possible complications. This organization should adopt favorable machine maintenance mechanisms and limit the use of obsolete materials in assembling various equipments.
Findings
Quality to be observed for enhanced customer satisfaction and organizational progress.
Adoption of quality electronic production techniques crucial (Lehman, DuFrene & Jaffe, 2010).
This organization to streamline its processing procedures.
Quality production depends on policies, production strategies, assembling procedures, and personnel literacy levels (Gad, 2008).
Products produced should attain timely supply and professional handling.
Managers to design performance policies (Locker & Kaczmarek, 2007).
Quality should be observed for enhanced customer satisfaction and organizational progress (Gad, 2008). Adoption of quality electronic production techniques is crucial in advancing peoples lifestyles. Electronic assembling should follow due procedures to ensure that quality items with functional orientation are produced for usage (Lehman, DuFrene & Jaffe, 2010) . As noted, the realization of quality production of electronic items is dependent on various factors that range from policies, production strategies, assembling procedures, and personnel literacy levels. The products also require timely supply and professional handling to facilitate their usage in good time. Based on the findings, the managers of the company have a responsibility of designing performance policies to promote effective coordination of electronic assembling (Locker & Kaczmarek, 2007).
Recommendations
Recommendations set to enhance policy formulation in this organization.
Eliminate the usage of obsolete raw materials and processes due to their adverse effects (Chang, 2008).
Use recommended materials that are user-friendly.
Execute proper planning and resource allocation.
Strike a clear balance on resources allocation.
There are several recommendations proposed for this organization based on the findings and the results attained. This company to enhance its policy formulation and ensure that relevant measures are undertaken by the companys administration to streamline its production of electronic gadgets. In particular, you should eliminate the usage of obsolete raw materials and processes due to their adverse effects. You also need to use recommended materials that are user-friendly. Proper planning and resource allocation is also essential in ensuring timely and quality processing of the products (Chang, 2008). Resource allocation facilitates acquisition of relevant processing equipment and various incentives that are crucial in the realization of quality output.
Managers should strike a clear balance on resources allocation to ensure that there are adequate funds to facilitate the acquisition of the needed raw materials, hiring of competent personnel, and purchase of relevant equipment. standards by everyone participating in the processing sequence. This would facilitate production of electronic gadgets with limited defects.
Conclusion
Quality observation is important to this organization.
Adoption of viable manufacturing procedures and integration of quality processes will be helpful.
Companys officials to craft more conventional processing policies.
This organization to facilitate the development of viable performance strategies that are technologically informed and consumer oriented.
Quality observation is important to this organizations growth. The ratings of this company indicate low performance rates on scientific, environmental, and social ratings despite credible advancements in technologies. On the methodology, a credible investigative technique and a purposive information gathering method was used. Based on the findings, the adoption of quality electronic production techniques is vital in advancing this companys progression. The company has a responsibility of designing performance policies to promote effective coordination of electronic assembling. Analytically, this company should implement quality electronic manufacturing techniques.
References
Chang, S. (2008). Sony vs. Samsung: The inside story of the electronics giants battle for global supremacy. Singapore: Wiley.
Chitale, A. & Gupta, R. (2007). Product design and manufacturing. New Delhi: Prentice-Hall of India.
Dantzker, M. & Hunter, R. (2012). Research methods for criminology and criminal justice. Sudbury, MA: Jones & Bartlett Learning.
Evans, J. & Evans, J. (2008). Quality and performance excellence: Management, organization, and strategy. Mason, OH: Thomson Business and Economics
Gad, S. (2008). Regulations and quality. Hoboken, N.J: Wiley
GoodGuide. (2012). Related Company Ratings. Web.
Kothari, C. (2005). Research methodology: Methods & techniques. New Delhi: New Age International (P) Ltd
Lehman, C., DuFrene, D. & Jaffe, C. (2010). Professional communications: 2010 custom edition (2nd ed.) Mason, OH: Cengage Learning.
Locker, K. O., & Kaczmarek, S. K. (2007). Business communication: Building critical skills. Boston, MA: McGraw-Hill.
Luo, Y. (2001). Strategy, structure, and performance of MNCs in China. Westport, CT: Quorum Books.
Samsung. (2012). About samsung, Web.
Chang, S. (2008). Sony vs. Samsung: The inside story of the electronics giants battle for global supremacy. Singapore: Wiley.
Chitale, A. & Gupta, R. (2007). Product design and manufacturing. New Delhi: Prentice-Hall of India.
Dantzker, M. & Hunter, R. (2012). Research methods for criminology and criminal justice. Sudbury, MA: Jones & Bartlett Learning.
Evans, J. & Evans, J. (2008). Quality and performance excellence: Management, organization, and strategy. Mason, OH: Thomson Business and Economics
Gad, S. (2008). Regulations and quality. Hoboken, N.J: Wiley
GoodGuide. (2012). Related Company Ratings. Web.
Kothari, C. (2005). Research methodology: Methods & techniques. New Delhi: New Age International (P) Ltd
Lehman, C., DuFrene, D. & Jaffe, C. (2010). Professional communications: 2010 custom edition (2nd ed.) Mason, OH: Cengage Learning.
Locker, K. O., & Kaczmarek, S. K. (2007). Business communication: Building critical skills. Boston, MA: McGraw-Hill.
Luo, Y. (2001). Strategy, structure, and performance of MNCs in China. Westport, CT: Quorum Books.
This evaluation attempts to describe Samsung M620, my current phone model. Effective communication is the main reason behind the introduction of cell phones. The improvements in technology have seen the introduction of cell phones that are multipurpose. The introduction of internet-enabled phones saved us a great deal since one can perform many tasks using the handset without having to use bulky computers.
I have found Samsung M620 to be a long-lasting handset that is user-friendly. It allows one to communicate effectively with friends and family. I have been using this phone for the last four years. The evaluation has been based on the ease at which one can operate the phone, the warranty period, and the accessibility of service centers.
Samsung M620
When I first bought this phone, it was a bit hard to use it even with the help of the instructions provided. The user manual was not very helpful, although it provided guides on how to use different commands. The phone was, however, user-friendly even if the user manual provided was not of much help. This is because I could communicate with friends and family well. The many features of the phone require one to read the manual carefully.
The instructions are written in many languages; this makes it possible for people of various language groups to understand the guidelines. With time, it became easy to use it since I decided to take my time to make myself familiar with the different features. I must admit that it took quite some time before understanding how to use the phone since I had never used a Samsung phone before. The size of the phone is small enough to fit in the pocket. Below is an image of the phone.
Samsung M620.
The phone had a one year warranty. The phone shop I bought it from assured me that the phone was durable; this meant that I could return it in case it presented any problems within the one year period. Sure to his word, the phone did not spoil within the one year period. Two years after the purchase, the phone accidentally fell, and it started experiencing some problems. The phone would go off unceremoniously. This does not, however, mean that it stopped functioning; it still functions although the problem of going off persists. I must, however, admit that the phone is of good quality because, despite the many falls, it still serves the main function: communication. The slide design is still intact, and the alert types still serve the intended function effectively.
The service centers are scattered; hence it is not easy to access one. Despite this, the available centers provide good services since I have visited several. They are located in main towns; this makes it hard for people living in marginalized areas to receive the services. Those buying this phone model should ensure that they can have access to service providers if they experience problems as I have. The service providers have a way of dealing with the clients in a friendly manner.
In my opinion, the features on this phone are what a modern-day person would look for. An internet-enabled phone is an important asset in todays world. The phone has a phonebook memory of 1000 and an internal memory of 20MB. The memory is bigger since it has a memory card slot. The phone is light in weight since I carry it in my pockets without having to feel like I have a load in my pocket. Unlike the phones I have used before, this model depicts a sense of class, although it is not expensive.
Conclusion
Samsung M620 is a durable phone since I have used it for the last four years. To someone who has never used a Samsung phone before, it can be hard to use this model. This is because the instructions provided in the users manual are not very clear. The many features of the phone require one to have a small background of their usage. A one-year warranty is provided by the suppliers on the day of purchase.
Researchers note that the warranty is a good marketing strategy since clients tend to prefer products that have a warranty. I would recommend this phone for the employees, I have used the phone for four years, and I believe that with care, I can continue enjoying its services. If there are any questions concerning this phone, I will be glad to answer them.
The topic of this research paper is technological failures using the example of the Samsung Galaxy Note 7. This topic is significant because the commercial production of technology is not always successful, and some errors can lead to consequences, such as the one that Samsung faced. Learning about these errors is important to avoid making similar mistakes in the future. This paper will present research topics on the technological failure of Samsung Galaxy 7 smartphones, their causes, and their consequences.
Samsung released their Galaxy 7 smartphones in 2016, and shortly after the release, the customer began to report cases of the phones catching on fire or exploding. Such reports are a serious concern as these incidents may cause substantial harm to consumers. Since this problem occurred in 2017, currently, there has been sufficient research and understanding of why the batteries inflamed. According to Heatman, these devices caught on fire due to two production faults with the batteries; the first was over battery size. The batteries manufactured by Samsungs subsidiary business were too small in one corner, causing negative electrodes to bend and increasing the probability of short-circuiting. The second problem included batteries from a third-party vendor, Amperex Technology Ltd, which were discovered to be improperly welded (Heatman). The remaining points on the batteries were able to pierce the protective shielding. Hence, the issues that caused the Galaxy 7 phones to inflame were due to design flaws and improper manufacturing, more specifically, the flaw in the design of the batteries.
Samsung could have potentially enhanced the design by adding insulation to address the battery issue. Another issue that BBC points out is the insulation of the battery that was insufficient. Therefore, there was a potential for improving the product if Samsung wanted to address this problem by changing the design instead of issuing a recall. The flaws, according to the research, were caused by insufficient insulating material within the batteries and a design that did not provide enough area for the batteries electrodes to be securely accommodated (BBC). Thus, despite the flaw in the design of the battery, there was a way of enhancing its design of it.
Issues such as the one experienced by Samsung cause companies substantial financial losses and reputational issues for the brand. Heatman states that Samsung had to involve three independent organizations in the investigation, apart from its quality department, to find and confirm the cause of the explosions. Still, the corporation managed to be profitable during the year of the release as its other products were selling well. However, if Samsung failed to investigate and address the problem, the company might have lost its profits as consumers would have been scared to purchase their products.
Another important aspect of this investigation is the fact that Samsungs innovation led to the explosions. Since Samsung made the battery smaller by reducing thickness margins, the separators between the positive and negative layers may have been excessively thin, increasing the possibility of these elements contacting and sparking (Heatman). As a result, the battery in Note 7 did not have enough physical space for error. Thus, the companys efforts to create a better and thinner product have led to a flaw that affected the infallibility of the devices. This shows that the strive to innovate can sometimes lead to unexpected consequences.
As consumer gadget makers aggressively seek more battery energy, cases of field failure are becoming more common. Notably, in 2017, Samsung issued a press announcement following a comprehensive product recall of their Galaxy Note 7 mobile phone, confirming concerns that the incidents were caused by the battery and its manufacturing method (Loveridge et al., 10). Li-ion cell designs, component integrity, and manufacturing procedures all have a significant impact on Li-ion battery safety and, therefore, on the safety of the entire device. Any faulty internal characteristics that cause a short circuit can cause a thermal runaway, mainly a chain of processes that leads to a fire. Thus, Samsung is not the only company that has faced similar issues and design flaws connected to batteries, and they strive for the company to create better designs of products.
The customers expectation of innovation has pressured firms to create better new products. As new economic demands on innovation emerge, the costs of new product research and development are rising, and product life cycles are shortening (Yun et al., 20). Several aspects result in innovation, such as the dynamic combination of exploitation and exploration, the open combination of absorption and distribution, the vertical combination of upstream and downstream, the functional combination of intensive and extensive, and the numerous combinations of synergic and sporadic (Yun et al., 20). Digital technologies, with computer hardware, software, and networks at their core, are not new, and it is difficult to innovate in this sector. However, as the economy becomes more complex and interwoven during the third revolution, they are reshaping it. This is one of the aspects that has led to Samsungs design flaw since this company aimed to innovate in the sector where it is difficult to develop new products.
As a result of the problems with their Galaxy 7 smartphones, Samsung had to issue a recall. The companys specialists performed an analysis of the products lifecycle to determine how the flaws might have emerged throughout the manufacturing of the product (Zhang, 68). This analysis required an assessment of both the software and hardware components of the product. Hence, Samsungs specialists had to employ in-depth analysis to find the cause of their design flaws.
In summary, this paper is a report on technological failures using the example of the Samsung Galaxy 7. The findings of the report suggest that the main reason why this launch failed was the design flaw of the battery due to the companys desire to make the phones thinner. This research helps me understand the course material better because it is a real-life case of a multinational corporation that has created an innovative product with a serious technological flaw. I was interested in this project because I remember the release and the scandal involving the Galaxy 7 smartphones. At that time, I could not understand why Samsung did not fix the issue right away. However, after completing this research paper, I understand that the technology firm invested in investigating the issue. Still, the attempts directed at resolving these issues were unsuccessful and led to the new batch of smartphones having the same defect. This paper informs the sources from the course because it allows an understanding of some of the processes that technology firms have and the underlying principles of work.
Work Cited
BBC. Samsung confirms battery faults as cause of Note 7 fires , BBC. Web.
Loveridge, Melanie et al. Looking Deeper into the Galaxy (Note 7) , Batteries, vol. 4, no. 1, 2018, p. 3.
Yun, Jinhyo J. et al. Benefits and Costs of Closed Innovation Strategy: Analysis of Samsungs Galaxy Note 7 Explosion and Withdrawal Scandal , Journal of Open Innovation: Technology, Market, and Complexity, vol. 4, no. 3, p. 20.
Zhang, W. Crisis PR Study on Samsung Galaxy Note 7 Explosion Incident , International Journal of Business and Management, vol. 15, no. 7, pp. 68-76.
After Samsung released Note 7 on 19 August 2016, at least 35 cases of explosion had been reported within a month since 24 August. According to the CPSC, Samsung has ‘received 92 reports of the batteries overheating in the US, including 26 reports of burns and 55 reports of property damage, including fires in cars and a garage’. As of 1 September, Samsung has only acknowledged 35 of these reported incidents. Samsung immediately reacted and recalled about 2.5 million Note 7 on 2 September, around 2 weeks after the release. However, the explosion still happened and Samsung has to decide the prohibition of usage of Note 7 on 9 December. The explosion has been finally issued by the battery manufacturers in the middle of January 2017. It heats up the (flammable!) liquid electrolyte at that spot. And if the liquid heats up quickly enough, the battery can explode.
Korean press Economics Daily reported that 70% of the battery was produced by SDI, a derived company of Samsung, and it should probably take the whole responsibility of the explosion. Samsung claimed that they did not thoroughly inspect the new technology of the battery, which is considered to be against their very priority as a technological company to keep safety of their products. As the parts of phones are produced by different third-party companies, even though the safety problems are not as severe as in components themselves, the phones as a whole can possibly cause huge safety uncertainty. And as an advanced firm Samsung did not manage to make their products satisfy the expectation of customers. Although Samsung addressed the problem to be the battery suppliers’, it should improve their coordination with its suppliers and try to avoid similar things to happen.
Samsung’s quick reaction towards this issue, however, might cause some crisis again. After Samsung Electronics halted production of its high-end smart mobile, the Galaxy Note 7, it posted a statement on its website telling owners of the phone to power it down immediately and contact the outlet they bought it from to obtain a refund or an exchange. But for people to see those words, they had to click a link at the top of Samsung’s home page with the not-so-urgent label “Updated Consumer Guidance for the Galaxy Note 7.” For some who work in crisis management, it was a baffling and overly passive way for the South Korean electronics giant to deal with a prominent problem that has worsened in the last month. “That ought to be more visible — this is pretty serious,” Andrew Gilman, the chief executive of the crisis communications firm CommCore Consulting Group, said of the warning on Samsung’s home page.
The brand has “to show they care and are concerned” through consistent communication on their home page, Twitter, Facebook and other social channels, he said. It seems that Samsung was meant to somehow try to get rid of the relations of the the affair and was not willing to take the responsibility. Compared with trying to reduce the incidents, Samsung seems to prefer to keep the explosion news less influenced and affecting their sales, which is considered lack of responsible reaction towards safety.
One of the largest phone companies in the world would be Samsung, based in South Korea, Samsung has a large range of electronics which not only includes mobile phones but household devices and other digital media devices. In the 2000s Samsung created the smartphone series, which became its most successful product. It continuously topped the lists for best-selling smartphones. In 2006 their televisions became more popular however again in 2010 they increased their merchandise to tablets and with that came the Galaxy tablet.
The newest phone on the market in the year 2016 was the Samsung Galaxy Note 7, known for its larger screen, improved design with additional features, and stylus smart pen for writing, note-taking, and is even waterproof. On August 3rd people could pre-order the phone and they would be given exclusive bundles in addition to the phone. By August 19th the Galaxy note 7 was predicted to break sales as they have done previously for the phone’s cousin the Samsung s7 in comparison to apple. By August 24th there was an alarming number of reports that came from customers that have bought the phone. Only 6 days after it was first released Samsung put out an official statement about the cases that were brought up regarding the defective battery and ended sales for the galaxy note. However, on a different report, it was said that customers would be able to get a galaxy 7 in replacement for their galaxy note. The increase of defective batteries increased worldwide and Samsung struggled to recall all phones. Within a week Samsung told customers to shut down their phones for the fear of them exploding and were told to get in touch with Samsung to gain a new phone. As a result of these battery failures, Samsung faced a huge threat to its corporate image. Samsung was anticipated to sell around 14 million devices but instead, they were replacing the phone’s batteries and therefore lost around 17 billion in market share. While Samsung was losing the battle with their phones, other companies such as Apple and Google pixel were getting more and more customers. It has been over two years and Samsung has brought out several other phones and has recovered from their blunder.
It takes years for a brand or company to build a good reputation or trust with its consumers. But it only takes seconds to minutes for that reputation to be destroyed. Such instances would be a crisis, which would be unforeseen and disturbs the peace and trust that the company has built over the years. Crisis communications have is essential for companies to maintain their public image. Working fast and appropriately addressing the crisis is one of the things that make a good company. The successful use of crisis communication can repair the damage that has been done. In order to gain back the trust of the consumers, the company needs to act fast, take responsibility, and respond in a manner that will help the consumers.
Recalling all the phones was not the first step that Samsung took, users that had bought the phone tried to reach out to Samsung via social media however failed to get any attention regarding the matter. Putting these complaints on a platform where everyone could see it gave others who were not involved to also help and try to get Samsung’s attention. Soon Samsung gained a stream of updates regarding the battery and took their first step into assisting the public. Though because they sat back and did nothing when the issue first arose and continued to sell the phones. Their hesitancy made their consumers not trust them and was unsure as to whether they should rely on a Samsung brand. The media watched how Samsung addressed the issue and kept speculating as to what went wrong. This issue was on print and social media as well as news releases to warn the public of the situation on hand. While on the other side the public relations teams for Samsung were online trying to help any customers that needed assistance. The media kept pressuring Samsung to find out where they went wrong and Samsung had an obligation to fulfill and need to discover what happened. Samsung used traditional and social media as their main platforms to address this crisis. While sales are now better some customers still vary to the brand because of their lack of communication from the Galaxy Note 7. The president of Samsung was vague when addressing the issue, while they still beat apple in the U.S. market in 2017, the company still suffers a damaged reputation because of how long it took them to take the phone off the market. Every company or organization should have a crisis communication plan because you never know when a crisis can happen therefore having a designated team or person to address the issue will help when a crisis strikes. Steps need to be taken immediately in order to make sure the crisis doesn’t expand and create more of a mess. Effective communication is key to make a business work. Though in Samsung’s case they needed mass communication from their consumers in order for them to finally come out and address their issue, they ignored the minor audience until more people got involved. If Samsung has prepared a business communicator for this crisis they may have less backlash. If the communicator is vague and isn’t addressing the issue the consumers will lose trust immediately that is what happened with the president of the company when he tried to address the issue. An open letter was published by the president on their website which apologise for the phone and proceeded to talk about their company values and said they were working to find the issue.
“Samsung is fully committed to identifying and addressing the source of the Note7’s battery issue. We have already initiated investigations with independent third-party experts to carefully revisit every aspect of the device, including the battery, hardware and software, and manufacturing processes. Once available, we will transparently share our findings.”
The crisis was dragged on for several months as Samsung tried to get back the defective Samsung phones but after they took some crisis action the company communicated with their audience in order to recall the phones, while they received more assorted reviews for their techniques they were still successful and the company was able to get back to how they were. Samsung did communicate with the public and tried to constantly give updates as to where they were regarding the phone. They were unable to reach the 4% of consumers that still had a phone. They had a link on their main page to recall all phones and they also put all their newsroom releases for anyone to view. As a company, they were transparent with their actions to correct the mess and take responsibility. In order for them to be clear, a constant voice must be displayed worldwide through their media channels and company statements, controlling what is being said is important and is an influential feature for a crisis. But Samsung failed to create a voice that would be used everywhere. While they did create a voice to warn U.S. residents, the rest of the world was at a loss and the communication teams within Samsung were struggling to create the same voice that they did within the U.S. While it was all being felt with the president was in contact with media, globally the market felt their issues weren’t being addressed.
It took Samsung a while to get back on track after all the recalls. They still needed to gain trust back and explain to their consumers what exactly went wrong with their product and that is what they continued to do. After they tracked down most phones the president for mobile communications for Samsung electronics, Koh Dong-Jin said this
“Technology innovation is important to Samsung, but our customer’s safety is more important. We want to reinstate trust in the brand.’ Samsung put more effort into gaining the consumer’s trust and made its brand more inclusive globally. They had to not only gain the trust but also had to do it by launching their newest phone the Samsung 8. Instead of following their brand formula, they went into another direction with more warmed and launched their “Do what you Can’t” tagline which has been a great brand decision. From then they went to forming a team to identify the root of the problem for the S7 so that they can learn from their mistake and apply it to future products. Finally, towards the end of January 2017, Samsung came back, almost 6 months later they gave their consumers an answer as to what went wrong. Koh Ding- jin told the public the battery was definitely to blame because it included an unusually thin lining within the battery. While they faced a significant loss they still took the challenge head-on to try and figure out what exactly happened, they created a new test lab with had 700 researchers and contained 200,000 devices with the defective batteries and attempted to reproduce the cause of the fire. Samsung could have easily dropped the issue after finding out it was just the battery causing the explosions however despite the loss they continued to perceiver and show the public exactly what went wrong through pictures and videos. This goes back to communication and giving the information out to the public so that they are informed as to what went wrong, Samsung knew their audience would not have been happy with a simple statement so they went out of their way to give them the full explanation. In turn, they were rewarded, the sales for the Samsung 8 were better and they exceeded what they were expected to.
Samsung is back on track to how they were before the battery crisis, while some consumers may not trust them they have definitely gained more and more people within two years. Reputation is important for a company to survive and while Samsung lost some of that reputation they gained it along to way to redemption. In order to be effective within the business effective communication and effective management is vital because when you plan ahead for such moments such as this crisis you can overcome it quickly and gain back the minimal amount of trust for example an app called Buffer realized they had a security breach which caused accounts to post out spam messages on Facebook and as soon as they realized this they apologized and handled to the situation immediately, for this they got a great response from the audience. Samsung waited and started addressing the issue; the simple act of waiting is what caused Samsung to fall. Samsung should have had a crisis plan which indicated which steps they needed to take in order to effectively solve this matter. The lack of information didn’t help their case and they also failed to gain an effective spokesperson to speak up for the matter at hand. The U.S. has someone to speak for them but the rest of the world was blind. Mass communication would have helped them communicate with their consumers, while they had social media at their fingertips they failed to use it effectively. Apologizing and owning up to a mistake is important for a business in order to compensate for the negative implications which were caused by the response to the crisis, timing is key and with Samsung’s case, they failed in that aspect because they only put out an apology ad on November of 2016, 4 months after and this was considered Samsung’s official apology. But because it took so long the public was already outrage at them for not taking responsibility for the failure of their products. If Samsung had controlled the narrative within the public and stakeholders it may have cushioned the fall but their strategy for crisis communication failed. However, as the years go by the Samsung continues to rebuild its trust with the consumers but taking full responsibility and acknowledging the failure of the product.
Regarding investment decisions, Samsung uses discounted cash flow analysis to determine whether an investment is worthwhile by estimating its future returns adjusted for the time value of money. This has manifested in many locations within countries with investment incentives like Vietnam and Africa.
Similarly, Samsung electronics is operating a cobweb of more than 100 offshore subsidiaries across the world, generating more than 90% of its revenues abroad. As a result, it has been accused of doing transfer pricing manipulation. More than half of the sales in the recent years were made through corporate inside transactions between headquarters and subsidiaries or affiliates. In 2016, Samsung was alleged to export some of its products at a price lower than normal to overseas subsidiaries in low tax countries of South Asia, Africa and South America allowing the offshore corporations to generate more profits than the Seoul headquarters, but pay lower corporate taxes on profits. This is what some literature is stressing arguing that Samsung has been manipulating their accounting books to reduce their corporate tax bills in what they call transfer pricing manipulation.
Current actions at Samsung electronics show that it is more important to deal with supply chain management and, in consequence, with the associated supply chain risk management. In recent years, between 2014 and 2016, Samsung’s marketing and production processes were characterized by a turbulent environment with the latest being the technical failure of the Samsung Note 7 mobile phone battery that saw the supply of a battery that would overheat and explode. In a globalized world, the situation has gotten even more complicated as Samsung electronics has geographically spread all over the world. Following Ziegenbein (2007), the success of a company increasingly depends on its suppliers and its ability to integrate into supply networks. Additionally, Like Ziegenbein (2007) argues, Samsung electronics is faced with a fast moving and unpredictable economic environment. Intensified competition due to globalization, rising customer expectations along with declining customer loyalty, shorter product life cycles, and a supply shortage of raw materials and energy bring companies under growing competitive pressure.
Much of Samsung’s success in the electronics can be attributed to its vertical integration. Originally a components manufacturer, the company designs and manufactures not only its gadgets, but many of the individual parts inside them. According to ManMohan and Seongha (2007), this approach may help mitigate some traditional supply chain risks at Samusung, but it also creates significant exposure to less obvious risks inherent in vertical integration itself, making the crisis a valuable case study for entities in other sectors as well. As companies become their own suppliers and assume responsibility for the foundational elements of their products, they reduce their ability to find relief in the event of a recall. Without a supplier, the vertically integrated company has no other entity to which to turn to offset either the reputational or financial damage caused by defective products.
Contracts with suppliers or manufacturers typically hinge on limitation of liability, and as liabilities have grown more damaging and products more complex, companies are increasingly specific in constructing terms to assign suppliers full responsibility for the consequential damages should a given component cause the final product to fail. Broadly speaking, a company that serves as its own supplier may find recovery options significantly limited and both financial and reputational risk amplified in the event of a recall. This does simplify the insurance recovery process, but as that stems from the restricted number of parties to a claim, that comes at the expense of added risk to the manufacturer, which will have to foot far more of the bill.
Until recently, Korean company Samsung was said to be slightly behind its competitors in terms of researching and developing modern technology, but the company’s recent strategy suggests that it’s committed to closing the gap and even competing for the top spot. Since 70 percent of the world’s data is produced and stored on Samsung’s products, the company is the leading provider of data storage products in the world. By revenue, Samsung is the largest consumer electronics company in the world as it sells 500 million connected devices a year.
Samsung has combined all smart programs into a new Smart Things app that makes it easier to connect and control all devices. Not only will all Samsung devices be Internet of Things ready, they will also have AI by 2020 (Samsung, 2018). This means that AI capabilities would be a part of every device it manufacturers by 2020.
Bixby, Samsung’s artificial intelligence system designed to make device interaction easier, debuted with the Galaxy S8 smartphone. Bixby 2.0 allows the AI system to be available on all devices including TVs, refrigerators, washers, smartphones and other connected devices (Samsung, 2018). It’s also open to developers so that it will be more likely to integrate with other products and services. Bixby is contextually aware and understands natural language to help users interact with increasingly complex devices. Samsung plans to introduce a Bixby speaker.
From the above study, it can be summed that Samsung Electronics’ global supply chain management was developed basing on the new management that started 1993. The study further concludes that the Samsung Electronics’ global supply chain management has been bringing new solutions regarding sustaining its market penetration. This implies that supply chain management can achieve something that is beyond maximum profitability and create a shared value to accomplish sustainable growth. To remain competent in sustainable growth, a company should provide opportunities and collaborate, so as to evolve to an advanced level of supplier partnership.
The study also concludes that Samsung is an international corporation with operations scattered in over 80 countries world over. This had made Samsung products reach every corner of the world. Where production has not been domesticated, Samsung has employed transfer pricing which has helped in reducing duty costs by shipping goods into countries with high tariff rates at minimal transfer prices so that the duty base of such transactions is fairly low. Reducing income and corporate taxes in high tax countries by overpricing goods that are transferred to countries with lower tax rates has also helped Samsung to obtain higher profit margins.
The study also concludes that with Samsung’s reputation in data analytics and success with Android, appliances and home electronics and its earlier lessons with AI and a resolute strategy toward internet of things and excellence, the future looks promising for Samsung to close the gap between itself and competitors in the race to be prepared for the 4thindustrial revolution and innovations from big data, artificial intelligence and robotics.
Samsung produces smart devices such as Tv’s, tablets, smartwatches, phones, desktop computers, headphones, refrigerators, memory devices, and much more. It is based in South Korea and the reason why it’s based there is that the CEO of Samsung Kim KI Nam is Korean and lived in Korea at the time when he started his business and the location never changed. There are 6 manufacturing facilities in 6 countries that produce Samsung’s smartphones. Those countries are Vietnam, China, India, Brazil, Indonesia, and Korea. Each facility produces over 10 million phones each year. In fact, the business produces 270 million phones each year and 50% of the production comes from Vietnam alone.
Many major companies such as this business produce their products in countries that don’t have many human rights laws, so they don’t have to be paying much for the workers’ wages. In Australia, the minimum wage that someone gets receives is $19.50 every hour whereas in the countries that Samsung manufactures the minimum wage is $7 a month.
Every person can work for Samsung whether you are designing the phone, making it, coming up with ideas, getting the materials, and much more. The engineering part of making any product requires a degree but the making of the phone does not. So, depending on what you want to do at the workplace will either require a degree or will not. It is mostly men that are working in most of the sections of Samsung, but they’re still are females working. Gender and doesn’t really matter when it comes to being employed by this company. The main thing is qualifications and what you can do.
Many people have theories about where Samsung gets its raw materials. A lot of people say that the materials come from Indonesia because one-third of the world’s tin is from Indonesia, and there is also a theory that the conditions are harsh, and one person dies every week trying to get the tin from the ground.
There has been an undercover worker that worked for Samsung to see how the workers are being treated. And unfortunately, there wasn’t much good news for them. Apparently, the workers only got paid the minimum amount of what the law has set. The workers were also placed in apartments close to the factory and weren’t allowed to leave only for valid reasons.
Samsung alone produces about 270 million phones a year and the other major companies produce even more phones every year, so that requires a lot of raw materials such as tin. The total amount of phones produced yearly (so, every company in the world) is 1.5 billion phones, so that is draining the earth a lot.
Something that many people wonder about and hasn’t found out is where major smartphone companies get their raw materials from. No one from the outside of Samsung knows where the materials are from and is a huge secret kept for decades.
Every year Samsung gives 5 million dollars to high schools to give students scholarships. There are also girl clubs that help empower and encourage young girls. The company also gives 3 million dollars to children’s research hospitals a team also gets flown to Africa to help the people in Africa whether it’s to build a well, assist medically or give food. Cleaning up the areas around the factories or headquarters is something that is encouraged for the workers to participate in occasionally.
