Friday, May 23, 2008

Please Rate my Samsung Case Study Paper

What do you think of My Samsung Bribery Case Study Paper?



Samsung, which accounts for more than 20 percent of South Korea's economy, is now in trouble. It is currently under investigation by a special prosecutor after its former chief lawyer blew the whistle on an alleged network of slush funds worth more than US$200 million supposedly used to bribe politicians, journalists and prosecutors. The results of the Samsung probe are due within weeks and, as expected, prosecutors will announce indictments against at least some of the Group's chief officers. Moreover, about 500 people took to the streets against Samsung's unethical problem so that it became even harder for Samsung to keep good reputation and impression. Kim has alleged the following:

  • 200 billion gained (roughly $200 United States million.) the black case was created by the foreign offices of Samsung Corporation's.

  • The group of Samsung reversed laws of property of media by creating a confidence, which seems to be independent of the group, but is really ordered by Samsung chairman Lee Kun-hee, and transferring the ownership of Joongang Ilbo to the trust.

  • In 2000, the losses incurred by the subsidiary companies of Heavy Industries of Samsung's became too large to hide by fraudulent accountancy. To supplement the losses, the group of Samsung created an arrangement in which Samsung Electronics would buy parts at the inflated prices of these worried subsidiary companies. By using arrangement, the subsidiary companies illegally trapped the total of 7.2 trillions gained ($7.2 billion the United States.) of Samsung Electronics. After accountancy for circular properties among subsidiary companies of Samsung, the dregs Kun-hee and its family have less than 5% of Samsung Electronics, which means that at least 95% of the trapped funds of Samsung Electronics can be regarded as being taken pockets of the external shareholder.
  • Hong Rah-hee, the wife of Kun-hee of dregs of President de Samsung, diverted 60 billion gained ($60 United States million.) money of company to buy expensive work of art, among them happy tears of Roy Lichtenstein, which hangs in the manor of Lee of President.
  • Samsung financially supported former President Chun Doo-hwan during his exiles with the Buddhist temple of stopping SA of Baek under the orders of the dregs Byung-chul of then-President and of father of Kun-hee of dregs At this time, Chun hid investigations in its role in planning and carried out massacre 1980 of Gwangju where at least one thinks 165 demonstrators to be killed by the military officers under the ordering of Chun .
  • The dregs Kun-hee ordered various subsidiary companies Samsung to publish provision-convertible debts with a very small fraction of price of the market to its dregs Jae-yong of wire, enabling him to take the ordering of the group of Samsung with just 4 billion gained ($4 UNITED STATES million). It would have cost more than 10 trillions gained ($10 billion the United States.) to buy the shares on the free open market

A scandal of widening of corruption at Samsung absorbed the government of South Korea Monday as a prosecutor as a Roh Moo Hyun's nearest Roh and its higher agent of anticorruption faced allegations to accept accepting bribes from the conglomerate.

The accusations from Samsung's former chief lawyer, Kim Yong Chul, are a further blow to Roh, who in his final months in office has faced a slew of bribery scandals, some involving his top aides.

If nothing differently, the search for corruption already exposed the sequence in a fantastic way complexes financial reports/ratios which weave the group of Samsung together. It is a trellis which can not survive the transfer of the power starting from Mr. Lee his son.

Do Hoon Lee, of Macquarie Securities, said that a possible scenario is that the complicated’ structure of property of Samsung S manifestly could be consolidated under a holding company: a transition which is remained evasive for legal and cultural reasons.

While arrangements are held, the group of Samsung has “a circular” labyrinth of property, in which electronics, life insurance, the chart of credit rating and companies of park of topic piles of control in one of the others of each catch.

At the very least, of the analysts of word, it could encourage the fast changes of corporation which would have been unthinkable as recently as last year. The murmured charges of the corruption, current handling, tax avoidance and the dirty turns always surrounded the powerful South Korea’s mighty chaebol.


Problem Statement

Due to this investigation regarding bribery will create problems for Samsung in international market and they will face problems to establish a relationship with the world. Samsung not being able to solve problems wisely causes the loss of clients and consumers due to big scandals and now people will stay away from Samsung as they lost their global brand name which they earn from their quality service and brand image in home applications. Samsung losing credibility and reputation as an international company might affect its long-term business joint ventures because they need support from local companies in other country to stay in competition. Now company will think about to join them before make JV with Samsung.

Research Objectives

Well now they have to reimburse the company's name by reinforcing interpersonal skills and new management who can produce a good atmosphere as a clean organizing and give trust to shareholders and people around the world. They have to make clients and consumers aware of its international status as a manufacturing company and they are still best in this field. So people can trust them. They also make sure about this case and have to introduce ethical and supervised laws in the company to overview all business processes so in future they wouldn’t face such a case.

Research Questions

Now they have to research these three questions:

1. How can Samsung reinforce interpersonal skills since it already has a lot of connections?

2. In what way can Samsung convince and persuade clients and consumers to trust them again?

3. How can Samsung introduce ethical and supervised laws to restore its good reputation world wide when the company is not brand-new?

Answer is they have to make study of this case and find out the lope where these things happened. They know they have good interpersonal skills peoples and they have to choose a good person who can maintain their brand name and image. If they produce good interpersonal skills people then people can trust on their brand and company as people knows that Samsung did excellent business and provide quality products to people. They have to make transparent system so they can check each and every process of company.


Significance of study

Well it is very important to study this case we can learn many things from here. We first time even seen such a big global company was involved the bribery and I think it was a biggest scandal in South Korea as their president want to prove a bribe free nation and it happen just before his term ends. It is first time we seen a people runs a vast network of bribery through the government, the judiciary branch and the news media and that he himself bribed prosecutors on behalf of Samsung and its chairman, Lee Kun Hee. It will be show real truth of corporate and politics.

Significance of Study is that corruption is world wide problems and I think we should try to make a transparent system for governments and corporate to make a corruption free world because it involves huge amount of money which earned by common men.

Literature Review:

Well there are many cases for study where we can know different views on bribery. In India, few years ago there was a big scandal exposed when people know about Bofors scandal. The scandal of Bofors was an important scandal of corruption in India in the Eighties; the Prime Minister then Rajeev Gandhi and several others were shown to receive by-effects of Bofors AB to gain an offer to provide the howitzer of field of 155 mm to India. The balance of the corruption much worse than before which India had seen, and directly was carried out of it to the defeat of the reigning Indian part of the national congress of Gandhi in the general elections of November 1989.

The case emerged during the tenure of Vishwanath Pratap Singh as Minister for defense, and was filled with fuel by very pointed investigatory journalism by Chitra Subramaniam of the newspapers the Hindu one and the Indian.

The name of the intermediary joined the scandal was Ottavio Quattrocchi, an Italian businessman who represented the petrochemical products firm Snamprogetti. Quattrocchi was close to the family of the Prime Minister Rajeev Gandhi and emerged as powerful broker in the '80s between great businesses and the Indian government.

But now the case is totally silent and people now forgot about it. So it shows people can forgot everything when investigation time going longer and longer. Company also gets some time to re think about their branding and start the business once again,

There are many cases which we can study for bribery cases.

Another case study is Guinness share-trading fraud. The share-commercial fraud of Guinness was a famous British scandal of businesses of the Eighties. It implied an attempt to operate the stock exchange market on a massive scale to inflate the price of the shares of Guinness and to help of this fact £2.7 billion public offer of purchase for the Scot drinks distillers of company.

Another big one happened in early 90’s. The Harken Energy scandal refers to a series of transactions entered into during 1990 involving Harken Energy. These transactions are alleged to involve either issues relating to insider trading, or influence peddling.

The Lockheed bribery scandals encompassed a series of bribes and contributions made by officials of U.S. aerospace company Lockheed from the late 1950s to the 1970s in the process of negotiating the sale of aircraft.

The scandal caused considerable political controversy in West Germany, Italy, the Netherlands and Japan. In the U.S. the scandal nearly led to the corporation's downfall, as it was already struggling due to the commercial failure of the L-1011 airliner.



Well after doing this case study I can now able to solve the problems like this if it will occurs in my company or company where I will work. I have to take care about things which I found in this case and how can corporate sector involved in big scandal. I will put force on transparent system and policy in my company so people can see company’s activity and transition. So we can reduce chances of these types of corruptions.

When I have big responsibly I would hire only those persons who are honest and know brand images. We know that whole company’s image is depending on workers activity and their attitude towards to corruption.

Conclusion & Recommendations

In few case above I found that person who reviews the case doesn’t come out the motive which is main points in all cases because if we found the motive then we can easily solved the problems. Also he ignores to show suggestion to solve this crisis. I would put weight on solution and suggestion which helps to stop such corruptions in the corporate world and politics. There should be special independent vigilance departments to check this kind of corruption.

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