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Samsung Electronics Analysis

The analysis of qualitative information in any sphere of activity is quite difficult due to the absence of the accessible means of data collection and processing. At the same time, the qualitative data usually includes the most important information for the researchers. The problem of qualitative data analysis is especially relevant for business organizations, mainly for the tasks of clients experience management. To provide the opportunities for the development of the qualitative data analysis skills among the management of the companies, this paper discussed the specific case of the affinity diagram and Pareto chart tools use to define the main issues that Samsung Electronics Company had faced in its operations with clients.

The general analysis of the Samsung Electronics performance during the latest period allowed the companys management to define the existence of certain issues that led to the reduction of the businesss sales volume. Here, the management had defined the qualitative data as the only potential source of information about the possible causes of this effect. Since the managers did not have the experience of the qualitative data collection and processing, it was important to implement the completely new methods of the qualitative data processing. Here, the affinity diagram and the Pareto chart had been used to perform the effective analysis of the obtained qualitative data.

 
 

The results of the qualitative data research had allowed the management to determine three main general sources of issues in the company. These were the quality of the product, the quality of the customer services, and the worsening of the companys reputation. The low quality of the product was defined as the most important issue, and more careful analysis of this issue had been performed. Among the main elements of the discussed issues were the permanent facts of the TVs inadequate work performance, the worsening of the image and sound, and the low period of the TVs adequate work. At the same time, the clients that required the service support with the low-quality working products had faced the inadequate quality of the service center response. Samsung Electronics did not provide the adequate support for its clients and did not perform the effective cooperation with the companys distributors in different countries. All these factors seriously harmed the reputation of the company and decreased the effectiveness of its marketing policy. As a result, the company should pay high attention to the resolution of all the discussed issues to guarantee the highest quality of clients experience in cooperation with Samsung Electronics.

Background of the Case

The Company

Samsung Electronics is the subsidiary of the Samsung Group that had been the largest world technology company by revenues in 2009. The company has a headquarters in South Korea and its own production and distribution facilities in different countries throughout the world. The total number of countries where Samsung Electronics currently operates is 61. At the same time, the company had employed about 221000 people in different countries. In this way, the company has to provide the high-quality product and services to maintain the leading positions in all of the selected markets. At the same time, the management should pay attention to effective cooperation with the retailers that are responsible for the development of the companys reputation and image in the countries where Samsung does not have its own representatives. Though the company had developed a separate process of managing customer complains, the latest results of the ConsumerAffairs research show that the number of complaints about Samsungs products keeps growing.

Business Problem Statement

The companys senior management in South Korea had received a response from the ConsumerAffairs Internet program about the level of the customers satisfaction with the quality of the products and services of the company. Here, the clients had expressed serious dissatisfaction with the certain elements of the companys approach to business, and the low quality of their general experience of cooperation with Samsung. Here, the company can face the real threat of the customers demand reduction as a result of the existing problems in the business structure of the firm. To provide an adequate response to these issues, the senior management of Samsung Electronics had decided to perform the complex qualitative analysis of the issues that were expressed by the clients. Here, the growing number of clients' appeals to the consumer protection bodies shows that the company is not able to work effectively with objections from customers. This process can lead to the serious harm to the companys reputation and has to be removed in the shortest period of time.

Methodology

To provide the effective solution to the presented issue, it is important to summarize the factors that led to the occurrence and development of the clients dissatisfaction in cooperation with Samsung Electronics. The main problem, in this case, is the absence of the quantitative data about the clients responses, and the prevalence of the qualitative information. Here, the companys management will definitely face the problems of research data collection and processing. As a result, it is important to provide the data research method that would be useful and effective for the analysis of the qualitative data.

Here, the affinity diagram and Pareto chart tools seem to be the best possible resolution for the current issue of Samsung Electronics. The affinity diagram is the tool that allows the researcher to summarize all the qualitative information into separate groups according to the specific characteristics. This tool is effective especially for the qualitative information, for which it is quite difficult to develop an adequate sorting tool. The application of the affinity diagram for the assessment of the existing customer management issues in the company will allow the management to define the main general and specific issues that define the current situation in the company.

Pareto chart is the tool that can be also used to define the level of the separate problems relevance and importance for the company. On the basis of analysis of the main issues that were summarized in the affinity diagrams, the Pareto chart presents the 20 % of problems that cause 80 % of the negative effect on the company. In this way, the management can see how important is the resolution of each specific issue for the improvement of the general situation in the company. At the same time, the complex use of these two methods should guarantee the best result of the qualitative data research.

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Analysis of the Problem

Overview

The brief analysis of the main issues that were described by the customers in their responses on the ConsumerAffairs platform allowed the management to highlight three main spheres of issues occurrence in Samsung Electronics. These are the quality of the product, the quality of customer services, and the issues with the general reputation of the company. Here, the most important issue that required primary resolution is the problem of the low quality of the products. This type of problem was most usually mentioned in the clients responses, and its resolution is supposed to guarantee the highest positive result for the company.

Description of Specific Problems

The careful analysis of the clients responses for the general issues and the issue of the products quality allowed the management to define the certain list of usual problems of clients in operating with Samsung Electronics. Pareto Chart had also defined the list of problems that mainly contributed to the obtained result and should be primarily resolved.

The main specific issues that affected the reduction of the demand level for companys products are the wrong colors of the picture on Samsung TVs, the start of normal work only after 10-20 minutes since the launch of the TV, problems with the sound on TV, and other smaller issues in the performance of the TV. Also, the low quality of the clients services caused the situation when the clients could not receive an adequate response from the service centers about how Samsung could help them with their issues. In general, all these facts led to the worsening of the companys reputation. In this way, the company should pay attention to the resolution of the issues with the products quality - the wrong colors of the picture on Samsung TVs, the start of normal work only after 10-20 minutes since the launch of the TV, and problems with the sound on TV.

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Conclusion

The analysis of the qualitative data about the issues of clients experience management in Samsung Electronics allowed the researchers to form the general picture of the factors that led to the growing dissatisfaction of clients by the companys products and services. As for the general assessment of the companys issues, they were divided into three groups: the quality of the products, the quality of services, and the companys reputation worsening. As for the specific issues in the sphere of the products quality, the main issues were the low quality of the products screen, audio, and the low general work period of the TVs. The company should find the adequate resolution to all the presented issues to guarantee the maintenance of the current sales volume.

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