# Homework 1
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, who recently as a member of other auto moblie company, says that there are fewer people who participate in Hyundai’s decision making, so it doesn’t suffer from bureaucrats.
Last but not least Hyundai’s speed also is shown in manufacturing. They are pushing the factories to make product fast, so the earlier release of product could happen such as in promoting ‘2011 Sonata.’ This also contribute for Hyundai to take fresh and up-to-dated refrence in planning and making product because guarunted a speedy manufacturing can make delayed decision making possilbe.

2. Goal Oriented working – aggressive strategy
Reliable object is one of the keys in success. However Hyundai consider impossible targets are parts of their strategy. That could make rapid growth of the company and chanllenge enormouse enlargement in scale of factories and promoting luxurious automoblie brand as popular brands that western auto company may refuse to do. The goal that they would surpass companies of japan could make them to benchmark others and at the same time monitor details of other company. And their hope to be succeful in outter country made them to conduct irregular aggressive stratey that other company could never do, such as high incentive, Assurance of returing cars and assurance of gaslock.

3. Leadership – Quality based deveopment
Their new leadership that diagnosed one of the Hyundai’s problems is “Quality” brought rapid growth of hyundai. Six Sigma in engineering center and frequent attendence in qulity oversight meeting of leaders of Mong-Koo Chung has triggered the success of Hyundai.

Potential Risks

1. Too much speedy decision making and producing
Fast decision making and concentrated authority of leadership could be very risky. Korean tradition, so-called “bbal-li, bbal-li”could make busniess succesful to some scale. However, in Auto moblie industry safety and malfuctioning has huge impact on brand image. Many Auto moblie company have suffered from many incident that consequently continued to ‘recall’. Hyundai’s diverting diversification is opportunity considering its speed execution but at the sametime, it could al so be reasons for making mistakes.

2. Diversification and enlargment of scale
One of the usual reasons of the failure of start-up company is they are fail to focus on main service that lure the customer. Though Hyundai is not a small company, its history and entry to other country is very short comprare to other competatitives.
Also they are enlarging the volume of the company and at the same time they are doing aggressive marketing. That means their investment goes up and the price goes down. If the environment of the industry goes wrong, they are vulnerable to that impact and have slight chance to cope up with the crisis because they already made their reference price by excessively issued incentive and also have insufficient cash flow that comes from investment.