Hyundai Strategy

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Case Study 2

Toyota’s Globalization Strategies

Suggested case discussion questions

Q1 Identify what ‘drivers’ have been influential in Toyota’s pursuit of globalization

Toyota’s journey to become a global automotive firm has had a number of key drivers.
Strong family values based leadership: The leadership of first Sakichi and Kiichiro Toyada in the early days, and then Fujio Cho in the later years have been crucial in Toyota developing the ambition to succeed on a global basis. Of the ‘drivers’ of globalization discussed in chapter three, some have played a more important role others.
Culture: Cultural homogenization has played some part as populations in emerging economies, in particular, aspire to car ownership. Countries like China, India and Brazil are seen as huge potential markets for Toyota
Target segmentation clear: Increasing middle class seek car ownership to affirm their status. Economies of scale and scope: Significant driver as Toyota utilized scale economies by opening manufacturing plants in low-cost countries, and exploited scope economies by sharing significant parts across product lines and with other manufacturers in joint ventures.

Centralise: Toyota took the decision to centralize these activities in its global operations in its third globalization program.
Market factors: Deregulation and the lowering of trade barriers gets little mention in the case study, but was influential in that how China opened up its markets to outsiders, in turn, shaped how Toyota moved into that market through the setting up of alliances and joint ventures. Strong international competitors appear a key driver.

Influenced by certain western qualities: Kiichiro Toyada seemed strongly influenced by what he witnessed at Ford and the desire to compete at that level became embedded within the fabric of Toyota. Its latest explicit aim is to…...

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........................................................................................ 39 B – Works Cited .............................................................................................................................................. 49 1 1.0 Executive Summary Hyundai Motor Company is a South Korean auto manufacturer. They own the Hyundai and Kia branded cars that sell around the world. Their company is relatively new compared to industry, with the first cars being sold in the US in 1986. Because of initial quality was low, they have fought hard to improve their reputation. As a result, in recent years they have grown to become the 4th largest auto maker in the world. They market their cars in urban and suburban areas of the United States to average income families as a cheaper alternative to other brands. As their reliability increased, they began to offer a 10/year 100,000 mile warranty to provide peace of mind to consumes weary of their past. Their cars also offer the latest in technical improvements and are very fuel efficient. A growing trend in the marketplace is more environmentally conscious vehicles, and Hyundai has many options available. During the recession, Hyundai remained profitable and profit is expected to continue to increase. Competition remains tough, with dozens of manufacturers in the market. The main competitors are the big three Japanese makes, Toyota, Honda, and Nissan; the big three US makes, GM, Ford, Chrysler; as well as......

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Hyundai Cs

...HYUNDAI MOTOR INDIA LTD Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai Motor Company (HMC). HMIL is the largest passenger car exporter and the second largest car manufacturer in India. It currently markets eight passenger car models across segments -- in the A2 segment it has the Eon, Santro, i10 and the i20, in the A3 segment the Accent and the Verna, in the A5 segment Sonata and in the SUV segment the Santa Fe. HMIL's fully integrated state-of-the-art manufacturing plant near Chennai boasts of advanced production, quality and testing capabilities. HMIL forms a critical part of HMC's global export hub, it touched 1.5 million in exports in March 2012. It currently exports to more than 120 countries across EU, Africa, Middle East, Latin America and the Asia Pacific. HMIL has been India's number one exporter for seven years in a row. To cater to rising demand the company commissioned its second plant in February 2008 having an installed capacity of 330,000 units per annum. To support its growth and expansion plans HMIL currently has 346 dealers and around 800 service points across India. In its commitment to provide customers with cutting-edge global technology, HMIL set up a modern multi-million dollar R&D facility in Hyderabad. The R&D centre endeavors to be a center of excellence in automobile engineering. Mission To create exceptional automotive value for our customers by harmoniously blending safety, quality and......

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Hyundai Case Study

...workers, high technology and capital. In term of competitive advantage, Hyundai have various production plant and regional headquarters at different part of the world that contributes to convenient access. Besides that, Hyundai also employs inexpensive labor and sources inputs from low cost suppliers as well as entering various collaborative ventures to cooperate that allows Hyundai to access to foreign partners’ knowledge. Hyundai has superior cost advantages in acquisition of high quality inputs. 2.) Korea’s abundance of production factors such as cost effective labor, knowledge workers, high technology and capital used intensively to produce car allow them to gain the specific advantage in order to produce and exports car. The use of low cost labor and inputs allow Hyundai to remain competitive and acquire superior cost advantages. 3.) Factor conditions: The abundance of cost effective and knowledge workers in Korea gives Hyundai a competitive advantage in the production of cars. Related and Supporting Industries: Hyundai partnered with Daimler Chrysler to develop new technologies and improve supply chain management that allows Hyundai to have superior cost advantages in the acquisition of high-quality inputs. Demand Conditions at home: Korean consumers are very demanding which lead to intense rivalry in the domestic car industry that ensures them to improve product continuously. Firm Strategy, structure, and rivalry: Korea’s domestic car industry is very......

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Hyundai History

...About Hyundai Motor Company Established in 1967, Hyundai Motor Co. has grown into the Hyundai Motor Group, which was ranked as the world’s fifth-largest automaker since 2007 and includes over two dozen auto-related subsidiaries and affiliates. Hyundai Motor, which exported its first independently-made vehicle, the Pony, in 1976, now exports over one million high-quality vehicles ranging from sedans, SUVs, trucks and buses. In 2010, Hyundai Motor sold about 3.6 million cars worldwide, up 16.3 percent from 2009. Hyundai Motor, South Korea’s largest automaker, sold 659,565 cars in the Korean domestic market in 2010, reaching a market share of about 45 percent. Outside Korea, the company sold about 2.9 million cars in 2010 in over 186 countries through some 5,300 dealers. Global Operations Employing over 78,000 people worldwide, Hyundai Motor is implementing a new global policy aimed at localization. This includes product development, design, sales, marketing, and consumer services to satisfy local customers’ tastes as well as that of the global market. Currently Hyundai Motor has six overseas plants in the U.S., India, China, Turkey, the Czech Republic and Russia. The company will add a seventh plant by 2012, in Brazil. Hyundai Motor today has a combined global production capacity of about 3.91 million units a year (Korea Domestic: 1.86 million / Overseas: 2.05 million).Koo Korea Production Hyundai has three plants in Korea that have a combined capacity of about 1.86...

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Hyundai and Kia

...28, 2013 Intro to International Business Hyundai and Kia Hyundai aims to appeal to the conservative buyers, while Kia is sporty and targets the adventurous. There ultimate goal is to increase the small profits the continue to earn due to the market they sell to. The Korean won has appreciated against the US dollars causing their profit margins to remain small. While the objective of a company is to increase profit, for Hyundai and Kia, foreign exchange rates plays a major role in their profit margins. The automobile makers have to make decisions that will allow them to increase profit margins. While the easiest way to increase profits is to decrease cost and increase sales, the foreign exchange rate must be considered (Anglebrandt, 2008). 1. Explain how the rise in the value of the Korean currency the won, against the dollar impacts upon the competitiveness of Hyundai and Kia exports to the United States? The rise in value of the Korean currency, the won, against the dollar has a negative impact upon the competitiveness of Hyundai and Kia exports to the United States. A strong won means the value of their products sold in the United States are recorded at a lower value. Hyundai and Kia are clearly trying to increase market share by offering a low-pricing strategy to compete with automakers domestic and abroad. Here are some reasons why the rise in value of the won impacts both Hyundai and Kia: * Low Price Strategy = lower profit margins * Car sold in......

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Internationalisation of Hyundai Motor Company

...understand its nuances, the aim of this report is to use at most seven IB theoretical approaches to analyze the internationalization of Hyundai Motors Corporation (hereafter HMC). The analysis will seek to test the basic assumptions and concepts of the various theories, identify and question basic deviations of the theories from the internationalization of HMC and search for answers as to the reasons for the deviation. This report begins with a brief historical account of HMC’s evolution, internationalization and current position in the global automobile industry. A brief review of the internationalization theories which are used in this analysis is undertaken. A thorough analysis of various phases of HMC’s internationalization using the theories (where applicable) then follows. A conclusion is drawn whether HMC’s global operations fit or deviated from the assumptions that these theories posit. 2 COMPANY HISTORY AND LITERATURE REVIEW This chapter starts with a brief account of how HMC was formed, its historic timelines and its momentous journey from a knockdown assembler to becoming a hugely successful and influential multinational company in the automobile industry. The various theories of internationalization are then briefly reviewed to lay bare their basic assumptions and key concepts. 2.1 Brief History of Hyundai Motor Company The Hyundai Motor Company’s (hereafter HMC) global success has been one of ‘grass to grace’. It began as a Complete Knockdown (CKD)......

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...Hyundai Hyundai is the South Korean automaker for excellence, whose name translated into English means "modernity”. The Hyundai cars are simple, resilient and known for their low cost. Created in the middle of the country’s recovery after the Korean War, Hyundai received help from Ford, which through its subsidiaries in the UK, helped to set up its manufacturing plant. The brand was born in 1947 by Chung Ju-yung, Son of North Korean peasant farmers; dominant figure in the Korean economy from 1960 until his death in 2001. Hyundai built its first car in 1968, the “Cortina”, a compact sedan under Ford license. In 1975, Hyundai made its first own model, the Pony, in collaboration with Mitsubishi and the firm “Italdesign” of Turin. Currently, Hyundai has one of the most respected research and development centers of the industry. In 1997, South Korea suffered of a serious financial crisis which also affected the automotive industry involving the Daewoo’s bankrupt (now part of General Motors). Hyundai overcame the crisis, but it was forced to divide its many operations (construction, banking, petrochemicals, logistics, shipbuilding, etc...) into 5 separate companies. One of these, the most internationally known, is the Hyundai Motor Group which now includes the brand Kia. The company has been one of the most influential industrial conglomerates in South Korea's economy. And currently, it’s the second-largest chaebol behind Samsung. The 6 major group companies are: •......

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Kia and Hyundai

...Both Hyundai and Kia rely on exports for much of their sales. Consequently, the companies are highly vulnerable to changes in exchange rates. When the South Korean currency, the won, rises relative to the U.S. dollar, the cars sold in the United States are recorded at a lower price when translated back into won. This of course hurts Hyundai and Kia's profits, and forces the two companies to sell more units just to stay even. Both Hyundai and Kia Announced plan to expand production in the United States. Hyundai already has a plant in Alabama, and Kia will soon be opening a plant in Georgia. Both companies hope that having a U.S. manufacturing site will help protect them against adverse currency movements. Most students will probably recognize that having the U.S. production locations allows the firms to shift production during times of sustained currency movements. Some students may also note that since both companies rely on the U.S. market for a substantial share of their profits, having a U.S. presence may be beneficial simply Because they are closer to an important market, and Because U.S. consumers might be more inclined to purchase cars made by Americans. At the same time though, students will probably point out that manufacturing in the United States where wages are higher could make it more difficult for the companies to implement their low cost strategies. If Hyundai expects the won to appreciate, Hyundai should consider expansion in the United States. A Stronger......

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...Moreover, Hyundai Motors still low brand recognition as compared to other larger firms which causes the firm harder in grabbing a wide range of buyers. As the low brand recognition, price depreciation rate is very high in comparison to Toyota or Honda. Therefore, it limits new car buyers from buying Hyundai. II. Technological Advancement Investors that invest in Hyundai are favored toward increasing the market share and larger advertisement schemes, instead of creating drastic technological advancement. Hyundai is still a runner-up in the area where all the rivals begun to produce Hybrid vehicles. As a result, Hyundai could not compete in some areas of the market where technological advancement is critical. III. Small Pool of Previous Buyers Most consumers do research before purchasing an automobile. The feedbacks from previous buyers can be a decisive factor for many consumers. Nonetheless, Hyundai does not have a huge pool of previous buyers to provide feedback, thus many careful consumers hesitate to buy Hyundai. IV. Product recalls Over the past few years before 2012, Hyundai recalled more than 300,000 cars in over sea market to fix manufacturing and design defects. Product recalls negatively impact Hyundai’s reputation. Needless to say, recall is good policy, but frequent recall could arise loss of customers and it would become weakness. V. Bankruptcy of middle sized companies supplying components There were some articles about Hyundai Motor’s......

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...Hyundai Motor Company Business History The Hyundai Motor Company is a multinational automotive manufacturer based in South Korea. The company is the world’s fifth largest motor group. ( the motor group has its headquarters in Seoul in South Korea. Hyundai was started by Chung Ju-Yung in 1967. Its parent company is the Hyundai motor group. It owns Kia motors by 32.8%. The company has its main operations in Ulsan, South Korea. This unit has an annual production capacity of 1.6million units. Ulsan is the world’s largest automobile manufacturing plant. The company had its first model, the Cortina released in 1968. This was in corporation with Ford Motor Company. The company has since grown and is now one of the top 100 most valuable brands worldwide. In Canada, Hyundai Auto Canada Inc. was opened in 1989. It is a subsidiary of the Hyundai Motor Company. It was located in Bromont Quebec. The Bromont plant only operated for four years before failure. Hyundai Auto Canada Inc. operates without a plant. There are however plans to revive it since there was a boosts in sales in the year 2009. Hyundai Motor Company is currently run by Chung Mon-koo who is both the chairman and CEO of the motor company. The company says that its goal is not to become the biggest car company; rather it is to provide value for the future. This also doubles as the company’s vision statement. ( Production The main products for Hyundai Motors Company are cars. The......

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...Departments | Number of Staff | Holding Bachelor Degrees | Finance | 3 | | Clientele Relationships | 4 | | Corporate Communication | 5 | | Information Technology | 1 | | Human Resources | 1 | | Reception | | | Defining the Problem: This study aims to provide a body of knowledge and information regarding the poor job structures at JRCC, its justification and challenges faced by JRCC. This study specifically aims to provide full details of the problems and how they could be eliminated in a cost-free manner that helps the administration to: * Understand the problems and the cause of them * Establishing the direct relationship between poor job structure and employee satisfaction * HR strategies should be devised during the process of business strategy formulation. The Problem Areas: Recruitment: The company has had a recruitment issue since it opened because it opened as it opened before it was supposed to. The teams were not complete and many employees were doing tasks that weren’t their responsibility. Until now the company has the same problem as it’s a semi-government company and the recruitment process takes a long time. Job structure: Other than the recruitment issues the company also had problems with the job structures. Since it opened way before time and the HR department wasn’t completely ready yet to recruit people the job structures weren’t given much attention; and this, until now, causes problems to the company. Job structures......

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Hyundai Car Manufacturer

...2012123098 Park Young Sang “Hyundai smokes the competition,” A. Taylor, Fortune, January 2010 (YSCEC) According to A. Taylor, what would be the success factors of Hyundai Motor Company? What do you think potential risks Hyundai Motor Company may face in the future? Brief Summary Hyundai immerged as one of the fast-growing and aggressive Car manufcturing Company in the world with a strategy of BenchMarketing, high incentives to the customers, quality enhacement and aggressive product developing. Hyundai, established in 1967, get high places in several surveys such as J.D. power’s products’ qulity after 30 days and also 3 years. Its speed of operations and boldness of decision making is considered as a reason of this drastic vault. And we don’t know for sure how this improvement could go because Hyundai faces many opportunity such as, promotion of ’Equus’ , lowered possibility of labor stoppage and many risks such as yet not much great brand image, and possibilty of mistake comes out of too much speedy decision making. Success Factors 1. Rapidness in monitoring, decision making and execution Along with throughful monitoring of company’s operations in company, Hyunda can capture and track the problem easily whereas other companys focus on innovation or consistency. That could be the way that Hyundai can handle the large company that has grown up in short life span. This rapid growthe can also be explained with speedy decision making process in Hyundai. Krafcik,......

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... True Customer Relationship Managementrequires relentless focus on the customer. That is it in a nutshell.Just as a Roadmap will help you to understand the roads, you willneed to take as well as alternative routes, so CRM helps signcompanies make decision about the best route and objectives for their situation.Many businesses use CRM as a management tool for after theprospect has been given to a customer, but to do this you mustattract  the  customer.  Although  CRM  is  great  for  managingcustomer relationship, it can also utilized for marketing purposeand you can squeeze out of the most of a system that savesvaluable time and improves relationships significantly. C 2.1. The Evolution Of Customer Relationship Management. CRM must start with a business strategy, which drives changes inthe organization and work processes, which are in turn enabled byInformation Technology. The reverse does not work.The seeds of modern-day CRM were sown in the 1960s. Academicresearchers found that the "4 Ps" marketing framework--product,price, place and promotion was less valuable for industrial or service-centric  businesses  where  ongoing  relationships  werecritical. By the 1980s, "Relationship Marketing" was used todescribe this new focus on understanding customer segments,delivering ongoing quality service, and achieving high customer satisfaction.Relationship marketing was about "putting the customer in themiddle of the business circle," in the words of Dick Lee,......

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...alternative work arrangements are also very important in increasing or decreasing employees’ motivation. Our group decided to focus on the motivational factors and the reality of it in a real business organization. We came across an acquaintance who currently works as Hyundai Heavy Industry (HHI). He told us about the unique culture of foreign dispatch system, common in industrial companies. According to our interviewee, foreign dispatch systems have clear pros and cons and that organizations use various methods in order to satisfy the ones who work abroad. Hyundai Heavy Industry is the world's largest shipbuilding company, headquartered in Ulsan, South Korea. It has seven business divisions: Shipbuilding, Offshore & Engineering, Industrial Plant & Engineering, Engine & Machinery, Electro & Electric Systems, Construction Equipment, and Green Energy. HHI was awarded a trophy to celebrate an achievement of exporting one hundred million dollars in 1974. Continuously, HHI was awarded one billion dollars trophy, five billion dollars trophy, ten billion dollars trophy, and fifteen billion dollars trophy before 2009, in the same field. HHI is one of the major companies which have more than twenty-five-thousand employees. Hyundai Heavy Industries Co., Ltd established a manufacturing plant of wind power generator in February 2009. Our interviewee currently works in the wind power generator... View Full Essay...

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...Project report On hyundai motor india LIMITED [pic] Submitted by: SAURABH TYAGI FIP/BBA(G) IB/021 [pic] MANAV RACHNA INTERNATIONAL UNIVERSITY HYUNDAI MOTOR INDIA LIMITED A PROJECT REPORT Submitted to Manav Rachna International University In Partial Fulfillment of BACHELOR OF BUSINESS ADMINISTRATION Submitted By SAURABH TYAGI BBA(G) IB- V SEMESTER ROLL NO. FIP/BBA(G) IB/ 021 [pic] Manav Rachna International University Contents |Topics | | |Acknowledgement |4 | |Introduction | 5 - 7 | |Corporate and Management Philosphy |8 - 9 | |Core Values and Statement | 10 | |Hyundai Profile ( Management ) | 11 - 15 | |Hyundai Profile ( Manufacturing ) |16 - 20 | |Hyundai Profile ( Research & Development ) ...

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