Case 25 Samsung Electronics 2017 February 17 2017 Lee Jaeyong Vice Chairman Attention Sinc Q32969489

CASE 25 SAMSUNG ELECTRONICS 2017 On February 17, 2017, Lee Jaeyong, the vice chairman of attention since the conglomerate is one of the ing for 20 percent of the country’s exports. constantly feel pressured to prove themsehves with firm until 2010. Lee Jae-yong had been tryne ted u Samsung, was arrested on bribery charges. This drew con term achievements said Kim Jin-baek, who work in South Korea with Samsung Electronics this highly goakdriven culture. But he to ing to launch the Samsung Note 7 follower of Apple, Samsung pushed the Note 7 to ahead of Apple’s ahticipated iPhone 7 (se Exhiba of the firm’s most ambitious efforts, the lateste ne accounti Lee has been the de facto leader since his father, Lee Kun-hee, became incapacitated after suffering a of Samsung since his Driven by the need to prove that it was more heart attack in 2014. The son was c dent in retu of the firm from his father harged with paying $36 rn for government support for a series of inter smartphone was packed with new features, like a nal moves that would allow Lee Jac-yong to inherit control resolution camera The charges came at a tough time for the firm, which lems. Experts claimed that the battery was packed oib as been struggling to break from its past and forge changes in order to keep the phone relatively thin. This was boneia top-down rigid management approach that pushes its when the Note 7 revealed a tendency to burst into employees to meet demanding goals Subsequently Samsung engaged in one of its fast-some say too fast (see Exhibits 1 and 2). “In the Samsung culture, managers and costly recalls and eventually had to kill the new product Case prepared by Jamal Shamsic, Michigan State University, with the assistance of Professor Alan B. Eisner, Pace University. Material has been drawn from published sources to be used for purposes of class discussion. Copyright o 2017 Jamal Shamsie and Alan B. Eisser. The highly publicized debacle of the Note 7 su some observers that Samsung has problems that may stem from its basic culture. Critics claim that the firm maintains an atmosphere of constant crisis, which drives emplayes to work incredibly hard to the point of overly speeding EXHIBIT 1 Income Statement (billions of KRW) Years Ending December 31 200,653 74,920 24,859 201,866 79,983 27,532 Net Income EXHIBIT 2 Balance Sheet (billions of KRW) Years Ending December 31 214075 4,059 44,442 242,179 262,174 69,211 186,424 63,119 62,334 Total Liabilities 162,181 Total Shareholders Equity C184 CASE 25SAMSUNG ELECTRONICS 2017 Show transcribed image text