Samsung is 47 years old today. And it will need a crisis management plan to move forward, innovate and make it through year 48. That is what co-CEO Kwon Oh-hyun stated to 400 employees for the company’s anniversary meeting.
You may remember that near the end of the year, the company struggled to manage the crisis that resulted from the dozens of Galaxy Note 7 explosions related to the batteries inside of them. Poorly handled recalls and customer service not only damaged faith in the Samsung brand, but cost Samsung billions of dollars on its bottom line. Specifically, the chaebol expects a $6 billion negative impact on earnings reports for the next three fiscal quarters.
However, there is change called for.
“The latest crisis made us look back at ourselves and think maybe we have grown complacent, and it served as momentum for a new start,” Kwon said.
In addition to the crisis plan, Lee Jae-yong has joined the Samsung Electronics board of nine. Lee is from the founding family that controls the entire Samsung conglomerate. His presence indicates that all hands are on deck to make sure a global brand gets back into public acceptance.
That starts with a highly anticipated Galaxy S8 and a steady hand to guide to launch.