...Woo Choong Kim & Daewoo Corporation LDR/531 – Organizational Leadership June 18, 2011 Woo Choong Kim & Daewoo Corporation This paper’s will provide the background of the Daewoo Corporation, its Chairman and founder Woo Choong Kim, and the business cultural environment for South Korea known as Chaebol. Secondly, the paper will describe the leadership results and styles of Woo Choong Kim and the results of his influence over the government and the organization. Finally the paper will conclude with a look at the managing style of Kim as he presided over one of the world’s largest companies. History of Daewoo Woo Choong Kim founded Daewoo Industrial in 1967. Daewoo was a multibillion-dollar enterprise evident in its name meaning “Great Universe” (Clifford, 2003, para. 2). Kim was an ambitious 30-year-old entrepreneur who mastered the ability to acquire troubled companies, mostly from the South Korean government, and turning them back to the profitable side. After many acquisitions, Kim’s organization embarked on its tragic foray into the automobile industry through a 50% acquisition of Saehan Motor in a joint venture with GM Korea. This merger became Daewoo Motor Company. Later purchasing the remaining 50% from General Motors, Daewoo acquired the Worthing Technical Centre in the United Kingdom, Fabryka Samochodow Osobowych, truck manufacturers in Poland and the Czech Republic, and merged with car plants in Uzbekistan, Ukraine, and India. By...
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...Daewoo Cars: Changing the Rules about How to Compete I. Introduction Daewoo-the South Korean corporation- was highly successful launched in entering the UK car market. It was successfully selling 35,000 vehicles in less of two years. This corporation continuously invests for £ 700 million in setting up a car factory in Britain, which considered to the large scale investment in design, development, and marketing and sales. In preparing the car launched, they were promoting themselves as ‘the biggest car company you’ve never heard of’. Daewoo was the second Korea’s bigger car maker and the 33rd largest business group and also has an aggressive plan for expansion and globalization. The pre-launched was stated the Daewoo presence and the market strategy in controlling the distribution chain by dealing direct customers. Daewoo’s market position was based on an innovative packaging of benefits and services around the car, a totally new approach to distribution, and the customer’s purchasing experience, and an emphasis on customer service. For evidence, Daewoo achieved 0.9 percent share of UK new car market by selling 10,000 vehicles within six month. The competitiveness in UK market car was fiercely challenging. According to the market research by Daewoo, motorist found that traditional motor dealers were not making customers feel welcome. The researches also found that one third of buyers were women. This market opportunity was used by Daewoo in implementing the...
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...En este trabajo presentare no solo una empresa si no varias empresas que fracasaron por varias causas. SEGA Una de las más grandes compañías de videojuegos de la historia. Durante años la compañía japonesa nos ofreció consolas increíbles y juegos que se convirtieron en clásicos. La Megadrive fue la consola favorita de toda una generación, pero ahí acabó su reinado, compartido durante años con Nintendo. En este casi faltó analizar el producto e innovarlo con tiempo. En 1994 lanzó su consola de 32 bits, la Sega Saturn. Pese a la gran acogida que tuvo en Japón, la Saturn tuvo unas ventas menores en el resto del mundo. La llegada de la Sony Playstation y decisiones equivocadas en cuanto al hardware. La Saturn era una buena consola, pero era demasiado difícil programar para ella (debido a sus dos procesadores) con lo que la Playstation le acabó por robar a los usuarios, que se decantaron por los juegos de la gris de Sony, que vendió 100 millones de consolas frente a solo 10 por parte de Sega. Para enmendar su error, en 1999 Sega sacó la que probablemente fue su mejor consola, la Dreamcast. Una máquina potente, con multijugador online y un catálogo de juegos espectacular. Pese a vender 36 millones de unidades, tampoco funcionó. La fama que había ganado Sony con su Playstation hizo imposible remontar a tiempo y en 2001 la compañía anunció oficialmente que renunciaba a seguir fabricando consolas para dedicarse en exclusiva al software. Pese a que ahora desarrolla juegos con bastante...
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...The paradox of Samsung’s rise Founder: Lee Byung-Chul 1938. Samsung’s past challenges: • Compete outside Korea: Especially in the new digital market (during the 90’s) • Increase innovation and creativity: by improving marketing, R&D and design notably • Maintain the old model of cost leadership and manufacturing efficiency: While shifting its paradigm from being an Original Equipment Manufacturer (OEM) to being a Leader in the industry answers to past challenges: hybrid management system • Seniority and Merit-based promotions and compensation: With some individual incentives • More open recruitment for all positions: Including foreign employees and executives. Bringing outsiders in, sending insiders out. • More dependence on external market labor: Paid to the level of and attracted by market-based compensation Current HRM challenges : • Labor market flexibility (generally in Korea): • the process of hiring or firing in a flexible manner , based on business needs; Vs. job security and long-term employment guarantee • Relations with suppliers and contractors and resulting HR issues: o Strikes and demonstrations; gap between office (in) and factory workers (out) o Occupational Disease victims and their claims to compensation (ongoing) o Hostility towards unions and harassment and repression of suspected union activists (suicide cases) Opening question: Does Samsung have a true Global Mindset ? -Maddux et al. (HBR, 2010) claim that people who lived abroad...
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...Project of BUSINESS, POLICY & STRATEGY 2012 Selected organization Daewoo Express 5/28/2012 ABSTRACT Daewoo has solid foundation in Pakistan of over many years, with a network of over 274 express buses running all over Pakistan. In this project we have conducted Porter’s Value chain model and Porter’s five forces model framework (Daewoo’s competitive analysis), then EFE and IFE matrix are developed to know about the Daewoo’s response toward its external and internal factors, which are identified during SWOT analysis. Then in strategy formulation stage we have conducted strategic diamond and BCG matrix to develop the strategies for Daewoo. We have finally concluded that Daewoo should start online ticketing, and should provide incentives to lower level employees in order to minimize turnover rate. Introduction Immediately after launching of Lahore – Islamabad Motorway (M-2) in November 1997, Daewoo Pakistan Express Bus Service (DPEBSL) was incorporated which launched its express bus service between Lahore – Rawalpindi / Islamabad in April 1998. This service, owing to its peculiar quality features setting new standards of safety, security, reliability, luxury, comforts and regularity, soon became popular and first choice of the traveling public. Sammi Corporation, Seoul, Korea took over DPEBSL in 2004 which led to accelerated growth and expansion of Sammi-Daewoo Express Bus Service in Pakistan. Sammi-Daewoo Pakistan Express Bus Service Ltd with its Headquarters in Lahore is...
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...CASE – 1 INTERNATIONAL CASE: MCDONALDS’S – SERVING FAST FOOD AROUND THE WORLD Ray Kroc opened the first McDonald’s restaurant in1955. He offered a limited menu of high-quality, moderately-priced food served in spotless surroundings. McDonald’s QSC&V (quality, service, cleanliness, and value) was a hit. The chain expanded into every state in the nation. By 1983 it had more than 6,000 restaurants in the United States and by 1995 it had more than 18,000 restaurants in 89 countries, located in six continents. In 1995 alone, the company built 2,400 restaurants, and by 2001 it had more than 29,000 restaurants in 121 countries. In 1967, McDonald’s opened its first restaurant outside United States, in Canada. Since then, international growth has been accelerate. In 1995, the “Big Six” countries that provide about 80 per cent of the international operating income are: Canada, Japan, Germany, Australia, France, and England. Yet fast food has barely touched many cultures. The opportunities for expanding the market are great, as 99 per cent of the world population are not yet McDonald’s customers. For example, in China, with a population of 1.2 billion people, there were only 62 McDonald’s restaurants in 1995. McDonald’s vision is to be the major player in food services around the world. In Europe, McDonald’s maintains a small percentage of restaurant sales but commands a large share of the fast-food market. It took the company 14 years of planning before...
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...There were as many as five players in the mid car segment and just one--the Rs 7,956-crore Maruti Udyog Ltd (MUL)--in the small car segment. Suddenly Daewoo Motors India and Hyundai Motors India--are changing lanes midway, making the small car market as the pivot of their marketing strategy in India. Couple that with the fact that two domestic manufacturers--the Rs 10,074-crore Tata Engineering & Locomotive Co. (TELCO) and the Rs 223-crore Kinetic Engineering--are ready with similar indigenously-designed products to compete in this market The last two years has really been the period of war in the small car market The story Behind…. The auto majors read the market wrong. Since the small segment was dominated by MULwith a market share of 96 per cent and given that the Trans –national brands already had tried-and-tested mid-size models in Indian market, this segment was more attractive than the existing ones. This perceptual change was because of two reasons. • • The clutter in the large and midsize segment due to entry of many international players. The small segment grew faster than the mid-size one, driven by the price-sensitive customer. Both the above factors had an enormous impact on mid-size car manufacturers. Stung by a sharp 80 per cent drop in sales between April and November 1997, over the corresponding period in 1996, Daewoo Motors slashed the price of its mid-size car, Cielo, by an unbelievable 21 per cent. It was the fate of many players in the mid and large car segment...
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...Women face greater challenges at the workplace. Do you agree or disagree? Write an essay, giving reasons to support your viewpoint. A photograph recently caught my attention. It was a mother carrying her 18 month old daughter in one hand and a document in the other. What’s special about it? She is a member of the European Parliament, Licia Ronzulli, and this photograph was taken when she was addressing the parliament. This epitomizes modern motherhood, and takes multitasking to new dimensions. Just stringing together the two words “women” and “workplace” automatically conjures the third word in our mind- “Challenge”. But as work places are constantly evolving, what one perceives as a challenge is indeed changing. A few decades ago nurse , receptionist or secretary was all a working woman could aspire to be. Any woman who dreamed beyond was ridiculed and her integrity was questioned. Corporates viewed women as weaker and less committed than male counterparts. “Lady Candidates Need Not Apply”- was the common last line in job advertisements. Those 5 words in a ‘TELCO’ advertisement sparked Sudha Murthy to send the famous postcard to JRD Tata in 1974 saying “I am surprised how a company such as Telco is discriminating on the basis of gender”. When I first walked through TML factory, I wondered how Sudha would have felt 37 years before, knowing that hers were the first feminine footsteps there. Did she possibly know then that she had taken a giant leap for her kind in TELCO...
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...Supply Chain Optimization and Outsourcing January 27, 2012 Two Korean Carmakers- Strategic Situations Daewoo and Hyundai are two Korean carmakers who enjoy many structural similarities. Yet the two are direct competitors in the Korean automobile industry, where they are jostling for position, pushing for economies of scale, and hoping to sure up a competitive advantage. Both Daewoo and Hyundai look to international expansion as their recipe for success. Each has formulated a specific expansion strategy in the past based on its particular market situation. Both Daewoo and Hyundai now look to international global expansion for future success. Expansion & Supply Chain The direct competition with each other in the Korean car market had an enormous influence on each firm’s past globalization strategies. The Korean automobile industry has been dominated by Hyundai since the 1970’s. By 1993, Hyundai had established a 50% market share in the Korean market, whereas Daewoo only held 20% (Bowon, 2005, p. 148). In 1993, Hyundai also enjoyed 58% of the market share of automobile exports by Korean companies, whereas Daewoo’s exporting efforts had failed (Bowon, 2005, p. 148). Moving forward from 1993, Daewoo and Hyundai took into account their competitive position against each other when deciding how to conduct their global expansion strategy. “Daewoo focused on expeditiously achieving economies of scale by targeting the East European markets for its overseas...
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...Running head: Addressing the Challenges of In 1999, Daewoo went bankrupt despite the fact it was the second largest conglomerate in South Korea. The debts were in excess of $84.3 million dollars. This downfall could have been prevented had Kim not allowed the government to intervene and force him to overtake industries against their will. By using effective communication, collaboration, conflict management, and team work, Daewoo could have remained successful. At the time, Daewoo felt it was government guarded. It was provided extensive subsidies, excessive cheap credit and protection from foreign competition. However, after the international demand for free trade evolved, the Korean government was forced to open its market and cause Daewoo to loose its import controls trade barrier. Group and team communication could have built trust and pride amongst employees because they would have felt like they belonged. A group is defined as two or more individuals, interacting and interdependent, who have come together to achieve particular objectives (Robbins & Judge, 2007). This could have lead to a boost in morale and a high retention of employees. Through clear communication, brings on motivation and defines what is expected of them, if they are doing it well, and how they can improve what they are doing. The formation of specific goals, feedback on progress toward the goals, and reinforcement of desired behavior all stimulate motivation and require communication (Robbins & Judge...
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...What in your view were the reasons for divorce between GM and Daewoo? In 1984, General Motors (GM) and Daewoo formed a 50/50 joint venture (JV) called the Daewoo Motor Company. GM and Daewoo each contributed $100 million in equity. The JV would produce the Pontiac LeMans, which was based on GM’s popular Opel Kadett model developed by GM’s wholly owned German Subsidiary Opel. Commentators hailed the alliance as a brilliant outcome of a corporate marriage of German technology and Korean labor (whose cost was low at that time). As a win-win combination, GM would tackle the small car market in North America and eventually expand into Asia, while Daewoo would gain access to superior technology. Unfortunately, the alliance was problematic. By the late 1980s, Korean workers at the JB launched a series of bitter strikes to demand better pay. Ultimately, the JV had to more than double their wages, wiping out the low cost advantage and the poor quality of the LeMans. Electrical systems and brakes often failed. Daewoo, however, argued that the poor sales were primarily due not to the quality problems but to GM’s poor marketing efforts that had not treated the LeMans as one of GM’s own models. Further, Daewoo was deeply frustrated by GM’s determination to block efforts to export the LeMans to Eastern Europe, which Daewoo saw as its ideal market. GM’s reasoning was that Eastern Europe was Opel’s territory. GM’s Expectation * Increase in imports (80,000 to 1,00,000 cars a year) ...
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...General Motors and Daewoo: Married, Divorced, and Married Again 1. Are the conditions in the automobile industry facilitating or constraining an alliance strategy? In my opinion, I think this question must be approach from the industry- based view, which would be the five forces. The automobile industry is very advanced industry which have very high entry barrier for the late movers because of special characteristics of automobile industry. First, automobile industry is connected with many other relative industries. In addition, it is a labor intensive industry which needs a lot of fixed cost and the capital for further investment. These characteristics also evoke many alliances between the relative firms in order to reduce the costs. Second, rivalry among existing firms has become very fierce in this industry since the economy started to decline. One of the wise ways to get through this crisis would be the alliance strategy. 2. In the first JV, did GM and Daewoo have the necessary relational capabilities to make the JV work? In the first Joint venture between GM and Daewoo, I would like to say they fail to develop their relational capabilities. At the beginning, it is true that they had the relational capabilities in order to make the JV work. GM was willing to give their superior technology to upgrade Daewoo’s quality of product, and Daewoo was willing to help GM enter the small car market in both North America and Asia. However, it did not worked very well...
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...The Baldwin-Wallace College Journal of Research and Creative Studies, Fall 2007, 1(1):12-24 Performance of the South Korean Automobile Industry in the Domestic and United States Markets Robert R. Ebert1 and Mariel Montoney2 1 2 Department of Economics, Baldwin-Wallace College, 275 Eastland Rd., Berea, OH 44017; Economics Program, Baldwin-Wallace College, 275 Eastland Rd., Berea, OH 44017 The South Korean automobile industry has undergone considerable growth since its inception in the 1960s. That growth was initially driven by domestic demand. Since the Asian financial crisis of 1997, however, production increases for the South Korean automobile industry have been primarily a function of export sales. The research presented here explores changes in the structure of demand in its two principal marketsdomestic South Korean market and the United States market. Two models of demand are developed- one for each of the markets. Several macro economic variables are identified that have a statistically significant relationship with the demand for automobiles in each of the markets. An interesting finding of the research is that the factors apparently driving demand are different in the two markets suggesting the structure of automobile demand in South Korea differs significantly from the demand for that country’s vehicles in the United States. A major challenge facing the South Korean automobile industry is how to utilize its capacity when confronted with...
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...Runge-Kutta method The formula for the fourth order Runge-Kutta method (RK4) is given below. Consider the problem y = f (t, y) y(t0 ) = α Define h to be the time step size and ti = t0 + ih. Then the following formula w0 = α k1 = hf (ti , wi ) k2 = hf k3 = hf k1 h ti + , wi + 2 2 h k2 ti + , wi + 2 2 k4 = hf (ti + h, wi + k3 ) 1 wi+1 = wi + (k1 + 2k2 + 2k3 + k4 ) 6 computes an approximate solution, that is wi ≈ y(ti ). Let us look at an example: y = y − t2 + 1 y(0) = 0.5 1 The exact solution for this problem is y = t2 + 2t + 1 − 2 et , and we are interested in the value of y for 0 ≤ t ≤ 2. 1. We first solve this problem using RK4 with h = 0.5. From t = 0 to t = 2 with step size h = 0.5, it takes 4 steps: t0 = 0, t1 = 0.5, t2 = 1, t3 = 1.5, t4 = 2. Step 0 t0 = 0, w0 = 0.5. Step 1 t1 = 0.5 k1 k2 K3 K4 w1 Step 2 t2 = 1 k1 k2 K3 K4 w2 = hf (t1 , w1 ) = 0.5f (0.5, 1.425130208333333) = 1.087565104166667 = hf (t1 + h/2, w1 + k1 /2) = 0.5f (0.75, 1.968912760416667) = 1.203206380208333 = hf (t1 + h/2, w1 + k2 /2) = 0.5f (0.75, 2.0267333984375) = 1.23211669921875 = hf (t1 + h, w1 + K3 ) = 0.5f (1, 2.657246907552083) = 1.328623453776042 = w1 + (k1 + 2k2 + 2k3 + k4 )/6 = 2.639602661132812 1 = hf (t0 , w0 ) = 0.5f (0, 0.5) = 0.75 = hf (t0 + h/2, w0 + k1 /2) = 0.5f (0.25, 0.875) = 0.90625 = hf (t0 + h/2, w0 + k2 /2) = 0.5f (0.25, 0.953125) = 0.9453125 = hf (t0 + h, w0 + K3 ) = 0.5f (0.5, 1.4453125) = 1.09765625 = w0 + (k1 + 2k2 + 2k3 + k4 )/6 = 1.425130208333333 Step 3 t3 = 1.5 k1...
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...Organizational Impact Paper Q/I361 June 12, 2014 Nikki Jackson Organizational Impact Paper Innovation can transform and possibly reinvent services and products to accommodate the needs and demands of the market. Today innovation is taking organizations and rewiring them for growth. In a time of change and reduce profits, organizations are retooling and finding the need to modify business strategy. Without innovative programs or ideas, change is difficult for a business however; change can’t be avoided in this competitive world of business. We will evaluate the impact of innovation on South West Air Line, General Motors, and JCPenny, AT&T, and talk about the impact on strategy, process, product, or services with each type of organization. All organizations noted above use innovation and creativity as the main source for improving business strategy. Southwest Airlines Southwest airlines are a company that started with very little money back in 1971 that now operates on the offensive as an innovator. The innovation that made Southwest Airlines prevalent is the way they can offer lower fares, the regularity of flight accessibility and on time departures and arrivals, and their exceptional safety record. Southwest is always thinking innovation which keeps the airline in the forefront in the industry, while using their innovated thinking the airlines acquired jet fuel at a lesser amount for future use; this is clever innovative and creative thinking. “Tickets less travel...
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