Signed declaration Ideclare that this whole work is my own work and all data and information collectedfrom websites and other sources have been referenced. Tutor:Dr. Anna C. Bocar Model:GHL4010 Date:31/12/2017 Sign: AcknowledgmentFirst of all, I would like to thanks all people who stand by myside and helped me through the process of this assessment. Many thanks for mycolleges and my doctors for letting me understand the concept and the ways tocomplete all my works on time. Therefore, I am so grateful for every moment I has spent it with Dr.
Anna C. Bocar. Honestly she is a great person Ihave ever met in whole my life. Special thanks for her for guide me to theright way till the end. Narjis Saed Al Abd Al-Hajri Table of Contents Signed declaration. 1 Acknowledgment 2 List of Figure and Table.
4 Introduction: 5 Discussion: 6 Recommendation: 13 Conclusion: 13 Appendix 14 Symbol 14 Meaning 14 mm 14 1000m 14 Inches 14 2.5 cm 14 Pixels 14 mAh 14 Milliampere hour, unit of electrical charge used to describe the capacity of small batteries. 14 GB 14 Gigabyte, Unit of measuring data storage capacity. 14 $(1USD) 14 0.3845OMR 14 Saudi Rial 14 9.
75OMR 14 References: 15 List of Figure andTable Figure 1. SamsungNote 7 collected from the customer. 8Figure 2. AridGonzales Phone’s.
10Table 1. list ofsymbols with their meaning. 13 Introduction: Samsung Electronics Company limited is amultinational electronic firm.
Samsung is one of the world’s largestmanufacturers of electronics. It combines the craftsmanship of traditionalmanufacturing because of its high quality and low-cost products to suit allliving standards so, this are the reasons of expanding worldwide and increasingits market share. Samsung started in 1938 by its founder Lee Byung-chull in Daegu,Korea. Then it moved to Seoul for further expansion (Head quarter). In the early years the company dealt with noodlesand groceries in its business and from 1950 to 1960 it did other works such astextiles and insurance. In the beginning of 1970s it entered the e-business andproduced a black and white television. Then it entered the petrochemical sectorsuch as refrigerators, small ovens and washing machines. In the 1980s, Samsungbegan producing air conditioners and color televisions, video recorders andpersonal computers.
This means the company began to producing home equipment. Inthe 1990s it began to produce phones. Samsung become the biggest company in theworld which it does many things not only electronic things.
Samsung Products: Consumerelectronics, apparel, telecommunications equipment, medical equipment,electronic components, ships, semi-conductors, precision instruments andchemicals. The subsidiaries of Samsungare (Electronics, Life Insurance, Fire & Marine Insurance, Heavy Industries,C&T, SDS and Motors (Renault-Samsung Motors cars division) etc. As considering that Samsung is a globalcompany, it has faced challenges and problems. From these challenges thecompany learned more and make more research.
In this research, we will reviewthe company’s problem in manufacturing defect in Galaxy Note 7. The objectivesof this study are: 1. To Review the problem that Samsung has encountered. 2. To view the solutions and plan that Samsung has takento solve the problem.3. To show the implications of the problem. Discussion: Globalizationis the important factors that allow the world to be like a small village.
However,because of the globalization the income of developing countries has increaseand it create new consumer market (Berger. S, 2007). Furthermore, because of the globalizationthe income of developing countries has increase and it create new consumermarket. In addition, this in turn enhances production and increases researchand development, which leads to increased skills and value for enterprises.
Hence, multinational companies have begunto move production from the mother country to other countries for expansion. According to the Shyam Soni (2011) define themultinational companies as characterized by sophisticated technology that hashelped them spend a lot of money on development and research”. He adds “Thefact that these companies have accumulated capital has led to spending onongoing developments so that companies consider this spending a type ofinvestment”. According to the United Nations, the multinational company wasdefined as “an enterprise that controls or owns the service or productionfacilities outside the country in which it operates”.
Samsung is also the multinational company orcorporation and it as other companies seeking to provide the best and qualityproducts for customers. However, it is looking for what is new and innovativein the world of electronics. Furthermore, as many companies Samsung tries tosatisfy its customers. Samsung has many features which are make it universaland inter the market. These features are: · The brand is universally recognized. · It has a good reputation in the market. · Distinguish its production by low cost products withhigh quality and better output. · Samsung devices can be integrated with varioussoftware.
· Production of spare parts for high quality equipment.This is excellent engineering in the company.· It has innovative designs in electronics.
· The company focuses on environmental protection in itsproducts. · It has the largest share in the phone market and is insecond place in the smart phone market. · It has a high promotion strategy in product marketing.For thesereasons Samsung has consumer confidence and it earned customer satisfaction inthe market. In addition, it is accelerating its products in the market ahead ofits competitors. The most competitors for Samsung are Apple, LG Electronics andLG Display, Lenovo Group Limited, Intel Corporation, Sony Corporation andToshiba Corporation.
Huawei companies is new in term of phone.Samsung want to be the head for introduce it products. So, on 19th August 2016 Samsunglaunched new phone in the market which is the Galaxy Note 7. This phone hasunique specifications and features that were not present in any device. Samsungwanted to be the first to introduce new features for mobile phones and displaythem in the market at high quality and at a price that suits everyone. We willdisplay the features in the device Galaxy Note 7. Galaxy Note7: This device,as mentioned above, is one of the devices that Samsung has succeeded inintroducing unique features and characteristics that did not exist in anydevice. Galaxy Note 7 is a revolution in the world of technology since itsfirst appearance because it is characterized by high specifications andadvantages required and desirable, especially those who are interested in theworld of technology and have a passion for the acquisition of the latest versionof phones.
The featuresof Galaxy Note 7 are: The GalaxyNote 7 is the smart phone and the best phone that Samsung produced in terms ofspecifications, especially with new features such as fingerprint, screenprotection against breakage and water and the best camera in pictures and videocompared to other devices. As it is considered a new innovation in the world ofphones and never of its competitors have the same idea. Size: Samsung has maintained the same size ofthe large screen, but the dimensions and distance between the screen and theedge of the device is currently the dimensions of (153.5 × 73.9 × 7.9) mm.
Inaddition, the weighs about 169 grams, while the measure and protection of thescreen of Samsung Galaxy Note 7 is measuring 5.7 inches 1440 × 2560 pixels. Supportedwith the Gorilla Glass (5) resistor against scratches, intermediate shocks andbreakage, the first phone from a major product line, comes with a curvedscreen, flexible sides, giving the phone a unique design.
Batterycapacity: Thecapacity of the Galaxy Note 7 battery is 3500mAh with a fast charging feature,this battery cannot be removed. Samsung supplied its smart phone Galaxy Note 7with a USB-C express charging port, which enables faster data transfer andcharging. The battery life up to 14 hours. The capacityof camera: The GalaxyNote 7 features a 12-megapixel camera and a 5-megapixel camera with an Exynos 8Octa processor. Also, it contains of 4 GB random access memory and 64 GBinternal memory with 256 GB memory card. Exceptionalfeatures: The otherthing that Samsung distinguish is an iris scanning sensor.
On the left side ofthe earpiece in the Galaxy Note 7 is an iris scanning sensor, and an infraredbeam is used to scan the iris of the user’s owner and thus open the phone, andis considered the highest level of protection. In addition, this is a featureinvented by Samsung to protect the device from the abusers or when someonestole a device, the security system in the device requires the scanning of thecornea and this prevents the thief from opening the device and the use of dataand tampering with it. Galaxy Note7 has received the IP68 certificate for resistance from water and dust, whichmakes it very distinctive, as it has never been available in any previousdevice.The problemin Galaxy Note 7: According to areport published by Al-Arabiya newspaper on (3/9/2016) the problem was appeared on September 2016 inKorea, after a young man reported to the company about the burning of his phonein the case of charging the battery. Butthe company did not care what the young man said because it’s a single case. Inany case and common sense cannot handle an individual case, which may be due tobad use by the consumer. After that, the company received (35) caseshave been reported globally. Only a very few cases have been registered aroundthe world and no cases have been recorded in Gulf Arab countries.
Many countries have a law that protectsconsumers from manufacturing defects, and this law defines the productliability law. The law on product liabilitydepends on the premise that companies have a duty to protect consumers fromrisk. The manufacturers must take care of their knowledge and insight intotheir products, so they fall under financial responsibility for the damages andinjuries they cause. The defects in manufacturing are that “the productcomes out of the intended design, although all possible care was exercised inthe preparation and marketing of the product.” That is, the defect isunintentional and goes beyond the quality and accuracy required. This meansthat the product was weak causing damage to the consumer and here themanufacturer must pay no injuries and the company take full responsibility. Samsungwas forced to withdraw all devices from the market which are affected andunaffected.
Figure (1) shows thecustomers cooperation with the Samsung Company. They were returned their phoneNote 7 after the issue of the exploding. Figure 1. Samsung Note 7 collected from thecustomer.
In theUnited States, Samsung withdrew Galaxy Note 7 from the market. The plan was replacedthe phone within two weeks with a new Note 7 unit, or one of the Samsungversions of the Galaxy S7 or Galaxy S7 Edge with the payment of the pricedifference to the user. The user also recovers the cost of accessories for theNote 7 phone, as well as $ 25 gifts from Samsung. The companyin Saudi Arabia in cooperation with the Ministry of Commerce and Investment inSaudi Arabia announced this call to reach the largest number of customers inthe shortest possible time. Saudi Arabia withdrew 6186 devices worthnearly 18 million Saudi riyals. In NewZealand the people decide to use the phone and do not return it back as thecompany decided. But the company tack action on it by told them to disconnectthe service in all Galaxy Note7.
Which means that cannot send or receivemessages or calls. But they can connect to the Wi-Fi services. Samsung in Oman also withdrew the phone fromthe market. According to the Consumer Protection Law of the Sultanate of Oman,which was issued in accordance with Royal Decree No.
(66/2014) Article (25) “Thesupplier is obliged to retrieve, refund, replace or repair the item with free withoutany charge, in the event that the consumer finds fault in it”. Pursuant toArticle (27) “the supplier immediately when they discover any defect in theproducts or services that harm the consumer or his funds, they immediatelystopping the circulation of the goods or providing the service, and informingconsumers who bought, and the parties concerned shall promptly report suchdefect and withdraw the item goods from the market immediately, as set forth inthe Regulations”.The realproblem was the defect in the phone battery (Explosion in the phone). Which means the phone heatstarts to rise at the start of charging, or reaches the battery explosion insome cases. This is sometimes due to high battery temperature due to the fastcharging feature, which results in faster and higher heat in the batteries. However,overcharging during charging also increases heat in the batteries.The cause ofproblem is irregularly sized batteries which lead to overheating. And becauseof manufacturing problems when they replace the batteries that were rush out.
The Samsung made the battery with thin layer by removing the thickness margin.The separator between positive and negative layer is too thin, usually around10 percent extra space is required. This thin layer lead to increase the chanceof element touching and produce heat. Figure (1) shows Arid Gonzales phone’s,he has shared this burned phone to the YouTubers to advise them and to tackcare of them self and returned there phone immediately to the company. Figure 2. Arid Gonzales Phone’s.Samsungexplained that not all devices have a defect in manufacturing.
That is theproportion of phones facing the problem is small compared to the percentage ofunits sold. However, Samsung has confirmed the withdrawal of all devicesfrom the markets. The actionsSamsung has taken to resolve the problem: Because itsglobal, Samsung does not want to gain a bad reputation in the market and also doesnot want to lose its customers. Because Samsung want to retain its reputationin the market, it did the following things to solve its problem: 1. Samsung stopped sales Galaxy Note 7. 2.
Samsung has withdrawn all devices out of the marketfrom all 10 countries where phones are sold. 3. Samsung replace all phones sold to customers andretailers of this model. 4.
Samsung provide alternative equipment to those thatare sold. Theimplications of that problem: The company providedthe product in ten countries including China. The company was forced towithdraw its phones which led to several implications to the company: 1.
The cost of replacing phones is large so it sold 2.5million devices of this kind to customers. 2. The Company incurred significant financial losses the lossis estimated at 7 million dollars.3. Samsung’s market cap declined, causing the company topostpone charging additional shipments from the phone, in order to conductquality inspection and control. 4. Samsung lost the trust of its customers.
5. Consumers bought iPhone. 6. Loss reputation. One ofSamsung’s most significant losses is the decision by several airlines aroundthe world, which is not allow its passengers to use Galaxy Note 7 on boardflights. Among the airlines that prevented carrying the device are AmericanAirlines and Tunisian Airlines. These airlines want to prevent its passengersfrom carrying the Samsung device in order to keep them safe from the explosion.On the otherhand, a week after the problem, Apple introduced its new iPhone 7 in themarket, which made Samsung in real trouble as expert’s fear customers are goingto buy iPhone.
This reflected negatively on the company’s reputation. Because theproblems caused from the battery, which must it observe it before, Samsung wastreated that by resizing the battery capacity from 3500 mAh to 3000 -3200 mAhcompared to the Galaxy S6 phone, which has 2600 mAh battery capacity. Samsungwanted to be the first electronics company to introduce a new device in themarket before its competitors in order to win the market, but what happened isthe opposite, the speed of the offer sometimes loses its sweetness. Recommendation: 1. Samsung was supposed to conduct a quality test for thegoods before it introduced the phone to the market. After designing the phone,Samsung could be matching the products by applying quality control techniques.
2. All manufacturers should not rush to put theirproducts on the market before conducting an experimental test of the product. Therush gives an opportunity to competitors especially when there is a defect inthe product and also can gain bad reputation. Conclusion: Multinationalcompanies aiming to expand and increase their investment in other countries andthe mother country in order to raise the level of income in the country.
Italso contributes significantly to the production of goods and services suitablefor all countries after studying the culture of that country and studying itseconomy. Samsungstill has strong reputation. it does not lose it reputation in the marketbecause its respects the consumers and protect them.
It has not avoided itselffrom the responsibility in its products, but has faced the problem with greatwisdom and strategy despite losing billions of dollars. Samsung still lookingforward to everything new in the world of technology and its vision 2020 is”Inspire the World, Create the Future”, Samsung website. Creatinglaws that protect consumers is right. Because the laws aim to protect consumersfrom the damage and risks that may occur to him by the manufacturers. AppendixTable 1.
list of symbols with their meaning Symbol Meaning mm 1000m Inches 2.5 cm Pixels mAh Milliampere hour, unit of electrical charge used to describe the capacity of small batteries GB Gigabyte, Unit of measuring data storage capacity $(1USD) 0.3845OMR Saudi Rial 9.75OMR · Number of Words: 2980.