[Group 3. EL1701.

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FPT UNIVERSITY- CAMPUS CAN THO



Group Assignment
[CCO201]

TOPIC: Groups will select a recent corporate crisis (within the

last ten years) and produce three separate but related texts from
the company's perspective for three distinct audiences: a press
release for news media outlets; an internal memo for
employees; a recorded (video) message for customers. These
documents should address the crisis in a professional, ethical,
rhetorically-effective manner.

Name of group member Contribution (%)

1. Nguyễn Thị Khả Giao /20%

2. Nguyễn Quốc Tịnh /20%

3. Nguyễn Gia Bảo Ngọc /20%

4. Nguyễn Thị Phương Anh /20%

5. Trần Thị Gấm /20%

Cần Thơ, 7/2024

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TABLE OF CONTENTS

I. Introduction ...................................................................................................4

A. Introduce the Company and Its Corporate Crisis ...........................................4

B. Purpose of the Project and Importance of Effective Communication During a Crisis

................................................................................................................4

II. Description of the Communication Crisis .................................................5

A. The Reason Caused the Communication Crisis ............................................5

B. Communication Strategy Used by Samsung .................................................5

III. If Hired to Handle the Communication Crisis ........................................6

A. Audience Analysis

.......................................................................................................7

B. Producing Texts for Each Audience

.....................................................8

IV. Analyse Strategies ....................................................................................10

A. Rhetorical Strategies

...................................................10

B. Multimedia Considerations
..............................................11

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C. Ethical Considerations .................................................................................12

V. Conclusion
...................................................................13

References.........................................................................................................14

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I. Introduction

A. Introduce the Company and Its Corporate Crisis.

As one of Samsung Corporation's subsidiaries with its base in Suwon, Samsung

Electronics deals in consumer products and technologies. This company which
operates in business markets selling products that range from semiconductors
to home appliances has been able to secure its position in the phone production
market, which is among the most competitive in the world. Samsung is a
technology company that deals in the inventions of various products, one of the
products they released is Samsung Galaxy Note 7 in the year 2016.
Additionally, at the time, this unusual large-screen phone was seen as a suitable
"rival" to Apple's iPhone 6 Plus. Right from the beginning of sales, the
Samsung Galaxy Note 7's exceptional configuration and clever features have
helped the firm generate surplus income. But this should have been a victory
for them, instead, it was a complete nightmare. After the release of the product
into the market there were many incidents that Galaxy Note 7 was catching fire
while charging or in normal use. The event was reported in the media and left
the consumers even more confused about the product. This was a huge crisis
out of which it was realized that Samsung bet on the Recall of Galaxy Note 7 at
the global level in endeavoring to contain the possibility of fire and explosion
which was the flaw in the battery. Besides the losses for which Samsung has
estimated in the billions of dollars, it took a heavy hit to its brand’s image. The
Galaxy Note 7 is now a model that epitomizes poorly managed products and a
case of corporate crisis. During such crises, Effective Communication during
such crises is very important not only in the immediate management of the
crisis but also in rebuilding relations with stakeholders.

B. Purpose of the Project and Importance of Effective Communication

During a Crisis

The project goals are to discuss and outline the communication strategies
Samsung used during the Galaxy Note 7 recall crisis. Effective communication
during crises serves several critical purposes: It allows firms to learn what
people are saying, counter stakeholders’ inquiries, explain their behavior, and
defend their image. Additionally, based on the analyzed insights of Samsung's
strategy during the crisis period, the subsequent section aims to identify how
the perception of the stakeholders concerning the organization is affected by

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the elements of strategic messaging adopted by Samsung and the transparency

terms of communication

II. Description of the Communication Crisis

A. The Reason Caused the Communication Crisis

The most notorious for electronics ensued from the recall of Samsung Galaxy
Note 7 in 2016 as a result of lithium-ion batteries’ defects that harmed the
company’s image and its financial status. This particular tragedy is an excellent
example mainly in the field of crisis communication at that part demonstrating
the impact of the failure of a product, as well as demonstrating the challenges
inherent in the management of this large-scale catastrophe. The eruption of the
crisis was a result of information on the Galaxy Note 7 smartphones, which
were recurrent in catching fire and even exploding. Samsung released the Note
7 in August 2016 to use it in its preliminary markets as flagship which is a
direct competitor of iPhone. However, within weeks, the consumers as well as
the media brought to light incidents involving the device and termed it as fatal.
The trouble was attributed to a manufacturing flaw in the batteries, which
concerned the design and manufacturing of batteries leading to contact shorts.
Therefore, when the frequency of the explosions increased along with reports
by news outlets, Samsung felt the heat of massive customer pressure to resolve
the problem quickly and effectively.

Type of Communication Crisis

The major type of crisis Samsung dealt with regarding the Galaxy Note 7 is a
product harm crisis. Product harm crises can be understood as a situation in
which a firm’s product is potentially dangerous to consumers, or it may have
defects, malfunction, or pose other hazards. In this case, the flaw was lithium-
ion batteries in the Galaxy Note 7 that had a risk to users’ lives since they
caused fires and explosions. The aforementioned crises pose a threat to
consumer well-being while at the same time causing large-scale monetary
losses and eradicating brand image.

Communication Strategy Used by Samsung

The subsequent analysis of this crisis reveals that Samsung’s communication

strategy was multifaceted. Initially, the company was able to come up with a
quick response by offering a global recall and also stopping the production and
sale of the Galaxy Note 7. This was among the steps that were to be taken to

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protect the consumers and also prevent further discharges of the dangerous
devices.
In the same crisis, the firm used a transparent communication strategy in
addressing the problem. First, the company came up with a quick and
emergency response by stating the recall followed by stopping production and
sale of the Galaxy Note 7 globally. This preemptive step was taken to enhance
the consumers’ protection and prevent similar risks connected with defective
products (Shamsi, Ali & Kazmi, 2017, p. 21). Even after the recall, various
incidents were still being reported by users even with the replacement devices;
this meant that the problem was even bigger than previously estimated. This
put pressure on Samsung which in turn had to announce the recall globally of
all Galaxy Note 7, halting production of the device in mid-October 2016.
Second, the announcement and management response focused on public
apologies from top managers the co-CEO Koh Dong-jin apologized and
accepted the company’s responsibility for the situation (Zhang, Veijalainen, &
Kotkov, 2017). Through different channels to inform the change including
press releases, social media, and direct client communications. Third,
According to Loveridge et al. (2018), Samsung along with independent
cooperating agencies tried hard to scrutinize the primary cause of battery
failures. The company promised not to cover up any information throughout
the process of dealing with the problem, and the ultimate intention was to
regain consumer and stakeholder trust. Finally, Samsung tried to satisfy
customers by providing them with refunds, exchanging products, or doing other
actions that would calm down affected customers and minimize financial and
image loss (Lim & Kim, 2018).

The costly impact of the crisis on Samsung is however noticeable in the

following aspects. The financial consequence involved the cost of the recall
besides customer revenue losses and erosion of brand image. Initially, the
recall raised questions about the company’s supply chain and quality assurance
issue, which the company had to overhaul significantly in future marketing
launches to reclaim lost consumer confidence.

III. If Hired to Handle the Communication Crisis

Here is what a public relations specialist or public relations company managing

the Galaxy Note 7 communications disaster would need to do in a
communication plan: Transparency entails the immediate release of
information regarding the subject and actions being taken about it.

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Accountability involves accepting liability and even improving measures that

are sufficient and which ensure that corrective actions are sound and viable.
Stakeholder management is done by acknowledging and listening to
complaints, answering questions clearly, and regularly reporting to
stakeholders in other to regain their trust and confidence in the organization.

A. Audience Analysis
1. News Media Outlets:

Needs: Since journalists and reporters depend on the dissemination of current

information to the public, timely and accurate information is vital to them and
the profession.

Expectations: Their expectations include accuracy, analysis of the problem

and its root, and getting company officials for interviews.

Concerns: Issues stem from the reliability of Samsung’s reaction to the

problem, effects on people’s safety, and possible legal consequences.

2. Employees:

Needs: To maintain their morale and productivity, internal staff members,

including management, require reassurance, precise instructions, and frequent
updates on their progress.

Expectations: They want a structured conversation on the company's activities,

their assistance to customers, and the precautions taken to prevent such
incidents.

Concerns: Issues are the working environment, the company’s image, and the
impact of the crisis on them and their daily practice and image.

3. Customers:

Needs: Customers especially the existing and the potential ones, want to know
the truth and some level of assurance that they will be protected from such an e
incident and know how Samsung is going to tackle the problem.

Expectations: They want the truth regarding defects and want guidance on
how they can replace or return defective products or get to know that devices
have improved in terms of safety.

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Concerns: the concerns include using Samsung products is unsafe, a hassle to

return a device, and the reliability of future products is doubtful.

B. Producing Texts for Each Audience

1. Press Release for News Media Outlets:

Headline: Samsung Responds to Galaxy Note 7 Battery Issues Thorough

Recall System and Safety Steps

Dear Media Partners,

Samsung Electronics has to announce to you that the Galaxy Note 7

smartphones have decided to be recalled globally due to safety concerns,
particularly the battery component. In the following working conditions, we
have isolated cases where the battery of some units presents an obvious danger
of overheating. Since our customer’s safety and satisfaction are our “highest
concern,” Samsung has responded swiftly and effectively to rectify such a flaw.
Upon identifying the problem, the company launched a research process with
the help of independent scientists to determine the source of the problem. Our
results validated that the company had a manufacturing flaw in one or a few
battery cells which led to overheating in certain devices. That is why, despite
strict adherence to the fundamental provisions of quality control, such cases
have taken place, and therefore it is impossible not to take measures to protect
the customer.

In response, Samsung has recalled all Galaxy Note 7 smartphones across the
globe from the market. For these exchanges to be done, we are in close
communication with the regulatory bodies as well as our retail partners so that
our customers can have an easy time having their items exchanged. Also,
various quality control measures have been tightened to avoid such problems in
the future.

We know the inconvenience it will cause our respected customers hence we ask
for their understanding and compliance. Samsung continues to pride the
company in maintaining the highest standards for product safety and quality
and shall continue to keep our consumers informed and assisted in this process.

For further information and updates on the Galaxy Note 7 exchange program,
please visit our dedicated customer support webpage at
[Link]

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Thank you for your attention to this consider

Sincerely,

Koh Dong-jin

President of Samsung’s Mobile Communications Business.

Samsung Electronics

Email: samsung@[Link]

Phone number: 086431258

2. Internal Memo for Employees:

Subject: The present paper through Important Notice addresses the

circumstances of Recall of Galaxy Note 7 and Safety Measures.

Dear Team,

As you might be informed, Samsung Electronics found an essential problem

with Galaxy Note 7 devices, which endangers battery safety. After receiving
the information concerning the cases of overheating, it was found that the
problem lies in a manufacturing defect in several battery cells.

To guarantee the security and satisfaction of clients, we have organized the

withdrawal of all Galaxy Note 7 devices all over the world. This decision was
made in concert with the regulatory authorities and as a preemptive measure.
We value our customers’ safety and security, so we would like to address this
issue with openness and promptness.

Respond as employees of Samsung, your position in this crisis is rather

important. Customers are the life of our business, and they require a quality
service, which you always deliver. We kindly request your utmost cooperation
in helping customers to go through this exchange process and to support the
firm’s message of quality and customer satisfaction.

For more specific information regarding how the issue is being managed, and
how the team can coordinate to have an efficient recall process, please use the

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internal messages. Your collaborations during this time are sincerely

appreciated.

As a company and specifically as part of the Samsung team, it is important that

we maintain the core values of the company such as integrity and innovation in
our effort to find a solution to this matter as soon as possible.

Many thanks for your efforts and perseverance in maintaining the values held
by the company.

Best regards,

Koh Dong-jin

Executive Vice-President for Mobile Phone and higher official in Samsung

Mobile Communications Business.

Samsung Electronics

3. Recorded Message for Customers (Video)

IV. Analyse strategies:

A. Rhetorical Strategies

1. Press Release for News Media Outlets:

Clarity and Transparency: In a press release it must be noted what it is all

about, namely the problem (battery overheating), measures that have been
taken (recall of products sold all over the world), and the cause of the
occurrence of the problem (manufacturing defect). It involves the use of
descriptive language to enforce a serious and urgent tone.

Authority and Responsibility: Samsung is portrayed as being responsible as

they quickly launch a recall, and work with regulatory authorities and stores.
This adds credibility and to a greater extent, provides comfort to the
stakeholders in recognition of the same by Samsung.

Empathy and Assurance: There is politeness towards customers with

recognition of inconvenience and guarantees of the improved warranty for
products. This keeps the customers trusting the business as well as satisfied.

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2. Internal Memo for Employees:

Internal Communication: The memo is written in an imperative mood, which

is more suitable for internal communication and reflects the subject’s focus on
the roles of employees in the regulation of customer satisfaction during the
recall.

Empowerment and Unity: By implementing and promoting Samsung’s

corporate values such as integrity and innovation, the employees are made to
feel responsible for the organization and this creates unity.

Clarity and Guidance: Guidance is given to what is expected of the

employees in regards to customers during the recall process, to guarantee that
customers receive uniform service throughout the process.

3. Message for Customers:

Customer-Centric Approach: The message goes straight to the customer

highlighting the company’s concern as well as measures that have been taken
(global recall). It offers the customers confidence that further efforts are being
made to fix the problem as soon as possible.

Apology and Appreciation: It entails an apology to anyone who may have

been affected due to their actions and appreciation to those who have supported
them. This assists in keeping the clients loyal and confident in the products
offered by the company.

B. Enhancement of Communication Effectiveness

1. Press Release:

Effectiveness: Media outlets convey the issue and the actions taken to a wide
public through the use of the press release. It alerts the stakeholders and
meanwhile strongly supports the company’s policy of transparency and safe
production.

2. Internal Memo:

Employee Engagement: The memo helps the employees to be aware of their

position towards the issue that happened and makes them follow the company’s
values and treat customers equally. This assists in the organization’s internal
cohesiveness as well as working structure and effectiveness.
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3. Customer Message:

Reassurance: Communication with the customers eliminates the middlemen

and re-establishes customer faith in Samsung through assurance of safety and
satisfaction. It assists in avoiding the creation of negative perceptions about the
brand and keeping the brand’s image positive.

C. Multimedia Considerations
1. Press Release:

Advantages: Through the use of the traditional press, it covers a wide audience
with clear details of what is required during the share.

Challenges: Reliance on the media makes information get to the public with
different interpretations or get delayed which slows down the response.

2. Internal Memo:

Advantages: It guarantees purpose and is concise in conveying messages

within the organization’s context, which results in fast and orderly action by
employees.

Challenges: This process of internal communication may not ensure that all
the employees receive the information at the same time hence extra measures
have to be taken to ensure understanding as well as compliance.

3. Customer Message:

Advantages: Communication with customers often occurs via websites and

possibly other social media; it guarantees up-to-date information access and
interaction with the customers.

Challenges: The communication of the message that has reached all the
customers and advising them on how to go about the recall may be informed by
efficient management of the digital space and the customer care desks.

D. Ethical Considerations

Transparency: All the communications that are associated with the matter are
also honest about the presence of the manufacturing defect, as well as the
measures that are being taken to rectify it.

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Honesty: Samsung takes responsibility for the problem and assures the public
that they will fix it showing ethical behavior in crisis management.

Accountability: In another case, and acting on its sense of responsibility

towards its customers and stakeholders, Samsung sets the ball rolling by
addressing the concerns by making what can be considered a global recall.

V. Conclusion

In conclusion, the case of the Samsung Galaxy Note 7 Recall informs the
importance of strategic communication in corporations during a crisis. Using
the identified elements of the rhetorical situation and applying distinctions of
the new-media writing conventions as guidelines for communicating in the
twenty-first-century media environment, adhering to ethical standards of
honesty and responsibility, and appropriately employing multimedia channels,
Samsung had been dealing with a difficult period of its evolution avoiding
significant degradation of the brand image.

Relating to this project, it is clear that when implementing crisis

communication it is important to ensure that the messages to be conveyed are
properly coordinated and there should be direct engagement with the
stakeholders. The experience attained supports the fact that the organization
has to be prepared for future crises and react appropriately as well as serve
stakeholders’ interests by practicing ethical communication. Improving the
crisis communication strategies of an organization can be informed by a critical
analysis of Samsung’s way of handling the crisis to be in a better position to
eradicate the challenges that might affect it.

The Galaxy Note 7 communication disaster provides several richest practical

recommendations for corporate communication and crisis management. For
one, this portrays how devastating the effects of failed integrity are especially
when it comes to issues of, first, transparency and honesty. The first reactions
from Samsung were seen as not being very transparent, which only created
more questions and disappeared trust. The crisis demonstrates the
imperativeness of the organizations to address issues, follow the principles of
transparency, and release sufficient information about measures undertaken to
resolve the issues. Second, the occurrence under discussion stresses the role of
the fast pace of actions. Another aspect that can be attributed to Samsung as a
responsible company was the decision to start the recall of the appliances on
the international level as well as to overcome all the potential problems
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connected with logistic or further financial losses is the fact that the company
valued the lives and safety of consumers. It shows that in crises, crucial
decisions ought to be made as soon as possible, and accurately, to avoid a chain
of destructive results. Thirdly, the Galaxy Note 7 crisis proclaims the need to
have proper management of the stakeholders. Concerning communication
challenges, it was not only about dealing with the regulators but also
concerning the media and assuring employees. This project also underlines the
necessity of being aware of and catering to multiple customers, such as clients,
workers, shareholders, and the general population by delivering multiple
messages of relevance and appealing to the listeners’ emotions. Finally, the
crisis reminds the reader about the relevance of the concept of reputation loss.
Samsung faced a huge blow to its brand image as a result of the Galaxy Note 7
occurrences. This shows that once the communication process is affected
during critical circumstances, it may take a long to restore and the process of
reputation management needs to occur constantly.

References

Lim, J., & Kim, J. H. (2018, February). Examining Risk Communication of

Samsung by Analysing Customer Reaction on Social Media: From Galaxy
Note Explosion to Galaxy S8 Release. In CS & IT Conference
Proceedings. CS & IT Conference Proceedings 8 (3).

Loveridge, M. J., Remy, G., Kourra, N., Genieser, R., Barai, A., Lain, M. J., ...
& Greenwood, D. (2018). Looking deeper into the Galaxy (Note 7).
Batteries, 4(1), 3. [Link]

Shamsi, A. F., Ali, M. H., & Kazmi, S. S. (2017). Samsung Note 7-An
Unprecedented Recall that Created History: Exploding Phones
Recovered–Exploded Trust?. European Journal of Business and
Management Research 2(6), 19-25.

Shamsi, A. F., Ali, M. H., & Kazmi, S. S. (2017). Samsung Note 7-An
Unprecedented Recall that Created History: Exploding Phones
Recovered–Exploded Trust?.

Zhang, B., Veijalainen, J., & Kotkov, D. (2017). Samsung and Volkswagen
Crisis Communication in Facebook and Twitter. International Journal of
Business and Management 5(2), 42-55.

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Zhang, W. (2020). Crisis PR study on Samsung Galaxy Note 7 explosion

incident. International Journal of Business and Management 15(7), 68-
76.

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