Monday, January 23, 2017
In the finance world, banks might be "too big to fail." In the electronics market, the opposite might be the case. At least that might be the situation in which Samsung finds itself. Its top-down and harsh culture was part of the spectacular failure of its mobile phone, the Galaxy Note 7. Its mobile chief detailed the problems with the battery that caused fires and explosions and took the responsibility for the defect, but that doesn't change the driven environment in which its employees work. Samsung might be setting itself up for more failures in the future unless it overhauls internal relations with employees. It is one thing for the CEO to demonstrate inclusiveness. It is another to change the behavior of managers below the CEO who were raised in a rigid top-down culture and don't know any other style of management. Retraining might take years and Samsung doesn't have that kind of time in the cutthroat marketplace for consumer electronics. One failure might be all that it takes to throw a company behind. The Galaxy Note 7 fiasco could spell the end of competitiveness for Samsung phones.