Business Management Failure in 2016! What Happened?

As social media become an irreplaceable resource in our life, it also becomes a powerful communication and marketing platform for creating and managing a brand’s image. However, if it is not used wisely and carefully, it can easily cause revenue damages and ruin a business’s all-time reputation.

Last year, multiple of the most recognized corporations like Coca-Cola and Samsung had experienced severe reputation hits. Due to the unmindful mistakes that related to their audience and their products, plenty of the customers felt unsatisfied and disappointed by the marketing decisions made by the corporations.

As mentioned previously, social media can be a great marketing tool, but at the same time, it is like a Sword of Damocles.  The potential damages that it may cause should always be kept in mind. It may only take a few minutes to publish news or an idea, but it may take forever to revoke a mistake. The cases mentioned are great examples for everyone to understand the importance of research and accuracy.


Coca-Cola being the world’s third most valuable brand, the brand that brought us unlimited happiness along the way had experienced an unexpected boycott in 2016. They had published a red and white map on a well-used Russian social media, the color they used not only represented the brand itself but also symbolized the seasonal New Year greetings.

However, the people in Russia were unhappy about it because there was a missing part on the Russia map, Crimea was not on it. Coca-Cola had soon replaced a newer map which included Crimea with Russia to satisfy the public opinion. But the happiness did not last long until the boycott movement by the public of Ukraine occurred due to the territorial dispute with Russia.

Although Coca-Cola had managed to take actions right after, the damage had already made to both sides. They had no other choice but to completely remove the advertisement to prevent even further loss and conflicts. This incident gave all the global brand a lesson, research is relatively important, and geopolitics should also be a factor to take in consideration.


Another marketing crisis that we all had heard is the Samsung Galaxy Note 7 battery explosion incidents. Being one of the biggest branding headlines in 2016, it had almost entirely ruined the brand’s all-time reputation and had shocked the entire global business.

Samsung’s world recognized innovative, and top quality products had suddenly become a deadly investment to everyone. It had even become the first and ever FAA banned mobile device on airplanes. The Note 7 device was Samsung’s flagship model for the year 2016; it was claimed to be a more powerful device than the I-phone. However, they made a careless mistake by releasing the model ahead of the original releasing date, before the device was ready for a debut.

In 2 weeks, at least 35 devices were reported catching on fire or were causing random explosions, and the number had continued to increase. Ultimately in only 53 days, Samsung had to become the first company in history to announce the permanent shut down on a device production. Consumers were encouraged to stop using the model for safety measure. This had also become the biggest expanded voluntary device recall in the industry and had cost them a 17 billion dollars’ loss. But money was not the only reparation, Samsung eventually gave away their hard-earned reputation and the trust of the consumers. No one would ever look at Samsung the same anymore.

The incident is a reminder for Samsung and everyone else who wants to manage a brand. Although it is important to keep up with the publicity plans and strategies, let us not forget the importance to measure the feasibility of a plan or a product. Sometimes it only takes one small mistake to ruin the hard-earned reputation completely. Thus, quality strategies and reality measures are an inevitable process to result in a successful branding execution.

I hope you’ve found value in this information. Apply some of these creative strategies and enjoy building your brand with intention. Visit for more valuable tips and techniques. 

Authored By: Ms. Jennie Yang, Public Relations Associate


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