Question: Read the article below and answer the questions that follow: Samsung Bribery Scandal (2017) Samsung is a technology company that had $174 billion in sales
Read the article below and answer the questions that follow: Samsung Bribery Scandal (2017) Samsung is a technology company that had $174 billion in sales in the past year. Samsung offers a wide range of tech products from digital TVs, monitors, smartphones, printers, tablets, and many other products in a variety of other technology fields. Samsung was founded in 1969 and now has over 300,000 employees in 79 different countries and operates as one of the largest companies in the world. In 2014 Lee Jay-yong inherited control of Samsung when his father was incapacitated by a heart attack. Recently Lee was found guilty by a South Korean court of bribery and other corruption charges. Lee's indictment comes at the end of a 90-day investigation by a special prosecutor looking into a corruption scandal that led to the impeachment of former South Korean president Park Gunhye. Lee was found guilty of giving $38 million in bribes to Choi Soon-sil, a secret confidant of the former president Ms. Park. These bribes allowed Lee to gain government support that helped him to gain more control over Samsung on a merger between two Samsung affiliates. Lee claims that bribes paid to Ms. Choi were donations from Samsung and were coerced. Samsung is accused of making the payments and that by paying Ms. Choi Samsung was able to secure a vote by the government controlled National Pension Service that supported the merger. The special prosector on the case claimed that Ms. Park ordered the pension service to support Lee. Lee was also also found guilty of perjury, concealing criminal profits, embezzlement, and hiding assets overseas. The prosecution alleged that Lee was a tycoon who knew exactly what he was doing when Samsung paid tens of millions of dollars to entities linked to a confidante of Park to gain the backing of the government on the merger. The merger caused a loss of at least $123 million for the national pension fund due to their large stakes in the two Samsung affiliates; the merger conversely increased the stock of the Lee family by at least $758 million. This scandal has been a blow to Samsung's reputation and they will have to work hard to prove that this was a one time event. Stakeholders There were many affected by this scandal, beginning with the major players involved. Samsung's trust as a company has decreased in this scandal and the major parties that were guilty of the crimes have lost their jobs as well as their reputations. The South Korean government has been hurt by this scandal as they have lost at least $123 million and have lost faith in some of their employees. The 2 South Korean people have lost some of their faith in their government's ability to operate truthfully and honestly. South Korea has a newly elected president Moon Jae-in who capitalized on this scandal by running as a "clean" candidate and was able to secure the presidency. Source: Business Ethics Case Analyses, Guild, 2018
QUESTION ONE [45] 1.1 In light of the Samsung case above, discuss the unethical practices employed by Lee Jayyong. (7) 1.2 Discuss the impacts of such a scandal on Samsungs performance, the South Korean Government as well as other related stakeholders. (13) 1.3 Critically discuss the key features of three (3) ethical models in business. (15) 1.4 As a business coach, explain the strategies you would implement in order to cultivate a sound ethical climate. (10)
QUESTION TWO [20] The quality of a process depends on its ability to consistently deliver products or services within customer-specified limits. While it is possible for a company to deliver a good quality product made using an inefficient process, the company does so at a very high cost. An inefficient process will generate an unacceptably high number of defects and produce them with a level of variation that hinders the ability to predict process performance (Bass 2018). With reference to the statement above, discuss the steps involved in the Total Quality Management process.
QUESTION THREE [25] LaMarco (2018) argues that strong leadership requires several elements working in harmony to steer the ship. The right kind of guiding hand can maximise output and reach goals while setting new ones. The wrong type of leadership can sink the whole company. While there are different types of leadership styles, the most effective combines several attributes. 3.1 Critically discuss the significance of the Full Range Leadership model. (8) 3.2 In relation to the statement above, explain the core elements of the Path-Goal theory. (8) 3.3 Explain the various components of leadership that are vital for achieving an improvement on performance levels. (9) 3
QUESTION FOUR [10] A SWOT analysis is useful in carving a sustainable niche within the market. In light of the statement above, discuss the primary internal considerations and major external considerations when performing a SWOT analysis for any business.
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