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In: Accounting

Jazz Mobile phone is a famous multinational brand producing smart phones. The main aim for Jazz...

Jazz Mobile phone is a famous multinational brand producing smart phones. The main aim for
Jazz is to satisfy its users with user friendly, innovative and elegant devices that simplify the
problems of the customers and enable them to enjoy the product. Jazz mobile have different series
with amazing features of large display size, amazing battery time, high definition camera quality
and large internal storages. Jazz have a comprehensive portfolio of hardware, software and services
that enable the digital transformation of networks to address capacity needs, reduce complexity
and leverage network intelligence to create and deliver new services. Operational excellence
remains a source of competitive advantage for Jazz and this becomes the foundation of their
strategy.
According to their vision, Jazz Research is actively conducting research and development (R&D) to
identify new future growth areas and secure advanced technologies for its products to create new value
and improve people’s lives. Jazz has a global network of R&D centers, each with individual
technology and competence specialties. Jazz research promises to continue working hard to become
a global top research institute that creates new values for the future through ceaseless innovation and
intelligence.
Recently Jazz has launched a new phone Book 8. It has the biggest screen and battery, the fastest
processor and the largest storage. It’s a phone designed and built for the power user who won’t
settle for anything less. The Book 8 gives the most advanced features than any other series. After
few days of launching the phone, the customers had a complaint that there is some problem with
the phone. Jazz management ordered the inquiry and identify the issues arising out of the battery
design and manufacturing process. Jazz had to recall about 1.5 million phones after complaints of
manufacturing issues.
Research and development along with the management is concerned about the incident and their
goodwill across the world. R &D is now working to find out the reasons for the failure of their
new Book 8. They wanted to ensure that this problem should not exist for the new model coming
in the future.
a. Sometimes a minor negligence can cost the company in terms of their repute, money, time and
effort. Based on company’s previous experience of Book 8, what steps are required to be followed
by Jazz for comprehensive research for their upcoming model. What suggestions would you
recommend to Jazz R&D to make their research successful?
b. Write the analysis report for the causes of failure of Book 8. What were the practices not
followed before launch of Book 8?

Solutions

Expert Solution

a. Yes, it is true a minor negligence could spiral in a big issue and could cost company in terms of money, cost, goodwill, reputation etc. Following steps should be followed as ideal practice-

i. A quality check department with skilled and qualified staff should be created

ii. Quality Check team to report directly to the Board of the Company to ensure there is no undue influence

iii. Board should be informed of the management action taken on each quality team's observation.

b. The Company has world class R&D department but ideal practice of testing the device in-house with seperate & independent quality check team was not followed and phone was launched in the market in haste leading to the situation. Further, the Company should launch the product and maintain a gap before going for commercial mass production to obtain necessary feedback from niche customers and also seek feedback fron savy digital platforms like NDTV Gadget, CNN etc.


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