Background Information on Samsung

Every day, human beings encounter situations that contain obstructions that can negatively impact on their desire to achieve what they really need in life (Dostal, 2015). Such challenges need to be solved since they constitute problems as illustrated in the definitions below.

Problem: This is described as the interactive relation that exists between the subject and its surroundings and this relation incorporates an inner conflict that is solved by the subject (Linhart 1976 as cited by Dostal, 2015).

Problem solving: This is defined as the cognitive processes that are aimed at changing the given state of situation to a final state where the procedure to finding solution is not so obvious (Dostal, 2015).  

The definitions above often help to give people guidance about the measures they can take in the event that they have encountered a problem that needs to be solved. As such, these definitions are going to be used as the framework for discussing the problem recently encountered by .

Samsung that is related to flaws in the batteries of its Galaxy Note7 smartphone that allowed the phones to overheat and this resulted in them catching fire in several incidences (Mozur, 2017). Flaws in the design of this type of phone were also cited as the causes of the device catching fire. In order to solve this problem, the company had to recall all the Samsung Galaxy Note 7 smartphones from the market and it ultimately cancelled the manufacture of this product.

1.1 Company information- Samsung

Samsung Company is a leading global manufacturer of a wide range of products and operates diverse businesses that include advanced technology, semiconductors, skyscraper and plant construction, petrochemicals, fashion, medicine, finance, hotels, and more. Its flagship company that is publicly owned, Samsung Electronics is the global leader in manufacturing digital media and other advanced electronic gadgets such as smartphones and it is headquartered in Suwon, South Korea (Samsung, 2017).

The CEO of the company is Dr. Oh-Hyun Kwon and he is a holder of a B.S. in Electrical Engineering from Seoul National University and other prestigious qualifications which makes him suitable for the job (Samsung, 2017). Samsung is harnessing on innovation to constantly improve the products it offers to a variety of customers.

1.2 Introduction of the decision/problem

From the beginning September 2016, there were quite a number of reported cases of batteries in several Samsung Galaxy Note7 smartphones exploding thereby causing injuries to the users of the phones and other people within close range (Mozur, 2017). The batteries would overheat while the phones were charging and this often resulted in them exploding. This forced the company to recall the Galaxy Note 7 from different global markets in a bid to stop the impending danger to the safety of different people.

1.2.1 Context to the problem

The problem of overheating of Galaxy Note 7 was attributed to different factors but the company as well as outside expert indicated that the batteries made by two outside suppliers contained some flaws which caused them to overheat. The flaws in the design of the phone were also cited as the cause of the overheating problem which included a thin lining between the electrodes that was unusually very thin. However, the main issue here is that the problem with the Note 7 triggered an outcry from different corners of the globe.

The Problem: Overheating Galaxy Note7 Smartphones

1.2.2 Justification of the problem

This problem faced by Samsung is justified since it required a bold decision in order to solve it. For instance, the decision to do away with the Galaxy Note 7 cost Samsung an estimated $6.2 billion (Mozur, 2017). At first the company blamed the suppliers of the batteries of the phone that were said to be faulty. Earlier own, the company had also made a bold decision to recall a total of about 2.5 million devices across the whole globe. An alternative was sought to replace the faulty batteries but this did not solve the problem entirely. This unprecedented development forced the company to stop the manufacturing of the phone. The problem is thus justified according to its official website given that its magnitude created bad public relations of the global smartphones giant.

This type of problem encountered by Samsung is structured in form given that it is characterised by similar features (Funke, 2010). Such problems are usually caused by the same thing and the solution is also similar across the board as illustrated by the case discussed above. The type of roblem faced by the company can help to determine the appropriate decision making approach.

1.3 Overview of the approach used

Samsung took a logic/rational approach to make a decision that was aimed at solving the problem. As suggested by the name, rationality suggests that the problem is clear and rational decision making helps to ensure consistency as well as orderly decision making process (Leoveanu, 2013). This helps to ensure that proper channels are followed and discipline is maintained throughout the decision making process rather than doing it in a haphazard way which can result in failure to implement the appropriate solution that can effectively solve the identified problem.

In this case, the entire Galaxy Note 7 brand had to be withdrawn from the market at first but later on, Samsung decided to terminate the Galaxy Note 7 entirely. The main reason for this bold decision was to safeguard the safety of the users of the phone and other people in general.

The spokesperson of the company said: “For the benefit of consumers’ safety, we stopped sales and exchanges of the Galaxy Note 7 and have consequently decided to stop production,” (Chen and Sang-Hun, 2016). This is in line with rational thinking whereby people opt for decisions that are good for the majority of the people instead of focusing on their own interests alone. The decision follows a logical way of thinking that is usually linear in nature.

 Analysis of the decision making approach

Samsung in this case has decided to take the logic/rational decision making approach. Simon (1977) purported that decision making should be comprised of four stages namely: Intelligence, choice, design and implementation. As implied in the name, the major theme pertains to the aspect of rationality (The Happy Manager, 2017). This approach to decision making is characterized by rational and logical thinking which also follows a sequence of stages mentioned above.

Basically, the Rational Decision Making Model is comprised of different steps that include the following: problem identification, information gathering, analysis of the situation, developing options, evaluating options, selecting the appropriate alternative and finally acting on the decision (Leoveanu, 2013). According to Simon’s Model, the decision approach process is comprised of the following factors: ASK SIR L. The intelligence stage is made up of appreciate, specify and causes to understand the issue at hand.

Samsung’s Rational Approach to Solving the Problem

The choice stage is comprised of selection of solutions while the implementation stage is comprised of implement, review and learn. After the problem of the Galaxy Note 7 was identified, Samsung Company tried to gather as much information as possible about the likely causes of the problem. Having assessed the magnitude of the problem, the viable option that was opted for by the company was to abolish the manufacture of the phone which had proved to be a potential threat to the safety of different people.  Given such a scenario, a rational human being is compelled to take such action. 

Samsung’s SWOT analysis

SWOT analysis is a strategic tool that is used to assess the company’s internal as well as external environments (Strydom, 2006). The following is a SWOT analysis for Samsung company.

Strengths -Strong brand name -Operates in many countries -diversified products -well developed e-commerce sites	Weaknesses -battery problem with some of its brands particularly the Note 7.
Opportunities -opportunity to penetrate global markets -the company is viewed as a global giant – Opportunities for expansion to different global markets – production of products that suit all types of customers	Threats -company faces competition -bad PR image over explosive batteries

The company’s strong brand name is its major strength while the main weakness pertains to its inability to rectify the cause of the battery problem. Competition is a threat to Samsung but it also has more opportunities that can outweigh these threats. 

2.1 Intelligence

According to Simon at al. (1977), intelligence refers to environment scanning, reports and queries, as well as benchmarks and comparisons in problem solving. The intelligence stage is characterised by appreciating the problem, specify it as well as establishing the causes.

People usually employ different strategies to gather information as well as identifying the causes of the causes of the problem so as to be in a better position to come up with the most viable solution. A thorough analysis of the likely cause of the problem of Note 7 was conducted before solutions were designed. It can be seen that Samsung used intelligence in determining their recall since the company at first appreciated the existence of the problem which was followed by specifying the causes of the problem. This helped the company to reach a decision of recalling the Note 7 from the market across the globe.

2.2 Design

In designing a solution to a problem that has been identified as illustrated in the case of Samsung, ideas are first generated and their weight is taken into account. Brainstorming which involves identification of the model as well as the most appropriate idea that can be turned into a solution is utilized (Bacchus and Kabanza, 2000). The strategy of brainstorming helps to weigh the options available so that one of them is selected. Human beings are endowed with the ability to use their intelligence so that they can solve the problems that can act as impediments towards the achievement of their desired goals and wishes.

Having tried other solutions earlier on such as recalling the Note 7 phone from the market and replacing the batteries with other alternative solutions, Samsung still failed to eradicate the problem identified. This later prompted the company to take a bold decision to stop the production of this brand for the safety of the consumers and other people at large. According to the model, Samsung should have tackled the cause of the problem instead of focusing on its widespread effects alone. This could be done through adopting the Emergent Strategy suggested by Kanter (1983) which focuses on strategic options that are concerned with creating new possibilities.

Evaluation of Samsung’s Approach and Suggested Improvements

2.3 Choice

The choice of the solution comes from the model that has been selected to provide a framework upon which the problem can be addressed. Samsung made the ultimate choice to cease the production of the problematic Note 7 after considering the benefits likely to be produced by implementing the rational decision making model since it was conceived to yield more benefits than other alternative models available. In this case, the company had different options such as changing the suppliers of batteries for the Note 7 phone. The company also had an option of recalling all the phones and replacing their batteries. The other option present for the company involved modifying its charging system. The company however opted for a total recall of the phone after the problem persisted.    

2.4 Implementation

Implementing a solution to a problem identified is not an end in itself as other people may think since this is an ongoing process (Schultz, 2007). Implementing a change initiative within the organization requires the involvement of various stakeholders likely to be affected by the decision so that they can also share the same vision with the company. This mainly involves taking action that is designed to resolve the problem and possibly to ensure that it does not recur again in future. For instance, Samsung did not only end at ceasing the manufacturing of Note 7 but went on to modify its successor, Galaxy Note 8 (Liberatore, 2017).

Samsung notified all stakeholders about the decision to recall the Note 7. However, the company could also have utilised Lewin’s lateral thinking model to solve the problem faced. This model is primarily concerned with wide thinking where a particular problem is viewed from a wide perspective. Effort is put to try to gather as much information as possible so as to be in a position to decisively deal with the problem at hand.

2.5 Summary of evaluation

When solving a particular problem, the major themes that should be taken into account involve intelligence, design, choice as well as implementation since these all impact on the quality of the final decision taken by the company (Bacchus and Kabanza, 2000). As noted, Samsung arrived at the final decision of abandoning the production of Galaxy Note 7 brand after realizing that this was the most viable solution that could help the company to effectively address the identified problem of overheating of the phone which also led to explosions in different occasions.  The table below illustrates the summary and evaluation of the decision stages taken by Samsung.

Stages	Approaches used by the organization	Key weaknesses	Recommendation-other approaches
Intelligence	Effect analysis of the problem	The company mainly focused on the effects of the problem instead of causes.	The company should conduct research to establish the cause of problem
Design	Brainstorming	The strategy focuses on the situation at hand	Market research should be conducted to get to the bottom of the issue
Choice	Rational approach	This approach overlooks the causes of the problem	The company should also have utilised Lewin’s lateral thinking approach to problem solving
Implementation	Recall Note 7 phones and stopping their production	This approach did not solve the real cause of the problem	The company should have exhausted all avenues to address the cause of the problem not the effects.

 Implementation

According to Corchon (2007), implementation theory is concerned with studying the social objectives that are compatible with the needs of the agents. This shows the systematic study of how goals can be achieved when the agents behave in a strategic manner. So when implementing something, the needs of the agents should be strategically related to the objectives to be achieved.  When the decision has been made and a solution identified to solve the problem, it is then implemented and again, this is another process that requires due consideration and diligence in order to achieve the desired goals.

3.1 Deployment

Borrowing from the project management principles, it can be seen that implementing a decision to solve a problem is usually viewed as the task of the management in the company with the help of other stakeholders such as the employees (Burke, 2013). The management takes a leading role in implementing the decision and they also have a duty to communicate effectively with the other stakeholders so that all the hurdles likely to be encountered are removed.

The management at Samsung played a major role to implement the decision first to recall the defective Note 7 brand from the market and ultimately ceasing its production. Whilst this was a tough decision for a reputable company like Samsung, the management realised that there was no better option to maintain its reputation as a giant in the smartphone industry besides taking this bold decision.

3.2 Impact/financial analysis

When the decision to abolish the production of Galaxy Note 7 was taken, an impact analysis was also conducted by the responsible authorities. The stakeholders impacted include the customers, employees, management, as well as the shareholders. As indicated above, the battery problem of Note 7 cost Samsung an estimated $6.2 billion (Mozur, 2017). This is such a huge cost within a short period and the management realised that it was a good idea to put an end to this problem such that it would not continue to negatively affect its operations in future. In this case, the company used cost benefit analysis to weigh the benefits of stopping the production of the Note 7 at the expense of the costs witnessed as shown above.

3.3 Change management

Managing change is a process that requires a holistic approach so as to ensure that resistance that is often associated with it is properly managed (Werner, 2007).  There is a tendency for people to resist change even if it is designed to benefit them in future. This is mainly caused by lack of information about the significance of the change initiative within the organization. In order to manage resistance to change, it is imperative for the responsible authorities taking a leading role in implementing change to communicate effectively with all the stakeholders likely to be affected so as to enlighten them on the long term benefits that can be achieved from the initiative.

 The management at Samsung assured the stakeholders that it was ending the problem identified by terminating the production of the brand. Though this initiative caused an outcry among the stakeholders at first, the company has moved on and has promised to offer a better product in the form of Galaxy Note 8 a successor to Note 7 which was abandoned.

3.4 Project management issues

When implementing change in the organization, there are various project management issues that ought to be taken into consideration. According to Kerzner (2013), issues such as risk management, cost factors, defining the scope of the project as well as its timing often determine the success or failure of the initiative. Project management itself is a process that is comprised of different stages that ought to be carefully taken into consideration. Likewise, a gannt chart is a very important tool that can be used to track progress in the implementation of the project. It is comprised of different stages that should be executed step by step as illustrated below.

 The cost of implementing a project should also not be overlooked since it has a bearing on its success or failure (Abu Bakar, 2011). As illustrated in the case of Samsung, the identified problem caused huge costs to the organization of $6.2 billion (Mozur, 2017). However, the final decision taken was designed to ensure that such costs could not continue being witnessed unabated.

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