Samsung is mired in the melancholy disaster of the Note 7 – Journal Management

Samsung said that the fiasco will cost more than US$ 5,000 million and probably the unit cell to pay for expensive.

(Bloomberg) The manufacturers of Samsung phones are an elite. Have the jobs most coveted in the most valuable company of the Samsung Group, the conglomerate’s largest and most prestigious of South Korea.

But that sense of exceptionality was crushed last week when Samsung Electronics Co. took the unprecedented decision of removing a whole generation of its smartphone Note 7 after suffering persistent problems with fires and explosions of batteries. Now, 26.600 workers in Korea famous for bringing the profits and the company brand to new heights and are considered responsible for the worst crisis in the 47 year history of Samsung Electronics. It was melancholy, say the employees, who describe the episode as sad and tragic.

Samsung said that the fiasco will cost more than US$ 5,000 million and probably the unit cell to pay for expensive. The division often receive bonuses and higher of the Samsung Group, usually about half of the basic wage, and now the employees suspect that maybe won’t win anything. In addition, it is likely that some executives seniors will be left without employment, perhaps even the chief D. J. Koh.

"Naturally, the drive of mobile devices stood on top of the other business divisions", said Kim Young-woo, an analyst of SK Securities Co. and exempleado Samsung. "Now created what may be the worst possible scenario of a corporate retreat in the manual of school management".

Transformation

Over the years, the unit cell was one of several divisions important within Samsung Electronics, along with semiconductors and tvs. Everything changed with the arrival of the smartphone and the success of Samsung as a leader in the new and thriving field. The drive from mobile devices accounted for 27 percent of revenue in 2010, a proportion that jumped to 61 percent in 2013.

That changed the internal dynamics of Samsung. Suddenly, the workers of the division of cellular become big clients and important for other divisions. They bought huge amounts of chips, glass panels and other components. The gains of all were the clouds.

Now, to the employees concerned about the adverse effects of their responsibility in a blow so hard to the once impeccable reputation of Samsung. Several of them agreed to discuss the current climate and morale on the floor, but requested anonymity for not being authorized to speak to the press.

Sadness

"it Is sad and shameful at the same time," said an employee of the unit cell. "Now, wherever I go people ask me things like: 'Is everything all right? I heard that the company got into a big mess'. This is a great lesson for us."

The employees of the company are trying to maintain confidence in the future. The comforts that the Note 7 has had positive reviews prior to the occurrence of the problems with the battery. They believe that they can climb out of the pit mood of the last crisis.

"If we give the target of our next phone, to the end of the day we can leave behind the issue of the Note 7," said one of the workers in the division of cell. "If not, we will not have another chance."