...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 primary...
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...Marketing Project Table of Contents 1.0 Executive Summary ...................................................................................................................................... 2 2.0 Situation Analysis .......................................................................................................................................... 3 2.1 Market Summary ....................................................................................................................................... 4 2.1.1 Market Demographics ......................................................................................................................... 7 2.1.2 Market Needs ....................................................................................................................................... 12 2.1.3 Market Trends...................................................................................................................................... 13 2.1.4 Market Growth ..................................................................................................................................... 16 2.2 Competition .............................................................................................................................................. 18 2.3 SWOT Analysis ............................................................................................................................................. 23 2.3.1 Strengths ....................
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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...
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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: • Group...
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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. (Hyundai.co.uk). 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. (worldwide.hyundai.com) Production The main products for Hyundai Motors Company are cars. The company...
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...Hyundai i10 The Hyundai i10 is a hatchback bodied city car produced by the Hyundai Motor Company, launched on 31 October 2007, manufactured only in India, at Hyundai's Chennai Plant — and sold globally (not for South Korea). Replacing the Atos/Atos Prime/Amica/Santro (except in India, where the lower-priced Santro Xing is still being sold below it), it is marketed below the Getz and i20 (which replaces the Getz in most countries). Background After the Santro/Atos Prime, Hyundai needed a model to replace it and started a hatchback project codenamed Hyundai PA. The car was to be manufactured in a new facility at Chennai, India. Hyundai i10 rear view The i10 has a large gaping air-dam, pulled-back headlamps, chrome-lined grill, integrated clear lens fog lamps, a bonnet that has a clam shell hint and a rear window with an upswept kink.The tailgate has a chrome-lined boot-release handle and an integrated roof spoiler on the top- end versions. Overall length (3565 mm) and wheelbase (2380 mm) are identical to the Santro with slightly more interior space; Ergonomic design was intended to accommodate tall drivers and increasing rear knee room. The width has been increased (and front and rear track) by 70 mm (2.8 in) for more shoulder room. The height has been reduced by 40 mm (1.6 in). Boot space at 225 litres (7.9 cu ft) is significantly lower than that of Getz. Interior The interior has a plastic dash housing with an optional integrated stereo. The instrument binnacle has a large...
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...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 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 efficiency...
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...MKT 4468 Hyundai Trip report I have a trip to Hyundai Motor factory with class 2 days ago, it is the first time I have been at a motor factory and I have to say that this trip has changed my view regarding this Korean Motor manufacturer pretty much When I got there, I had an opportunity to get inside each Hyundai model like Equus, Genesis, Elantra and Sonata, the feeling was so great. I always thought Korean auto manufacturer like Hyundai or KIA comes with decent quality as well as base-interior , and that was the reason why I had changed my mind : The luxury of Equus was not less than 7-series from BMW at all, but what made me impressed the most was the price: you can get a Fully Loaded Equus for only $61,000 compared to $95,000 for a BASE edition from BMW or Mercedes, it clearly beat them all . And when my professor said Equus had been used for Korean prime minister, I had no any reason to doubt the quality of this model Beside the luxury model such as Equus or Genesis, my thought had been changed either with compact sedan models, were 2014 Sonata and Elantra. One of my friend owned a 2005 Sonata, and he had a bunch of mechanic problem with it since he bought, I kept in mind that Hyundai cars did not come with quality. BUT, once again, my thought had been changed when I got inside model 2014 Sonata, I had to say that I was trully impressived about the interior as well as equiment which came with it. Another thing I had to admit was that the Interior space...
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...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...
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...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...
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...BUSI 0022 International Marketing Group Paper 2 Hyundai Genesis in Germany Name | UID | BUECHI, Mathis | 2009583263 | KIM, Hojung | 2010555716 | KIM, Mi Song Grace | 2010538603 | MA, Michael | 2010576617 | MCGUIRE, Taylor | 2011973367 | SUNDERRAMAN, Shravan | 2009553945 | Table of Contents 1. Introduction…………….………………………………………..1 2. Germany………………………………………...……………….1 ‐ Target Customers Segmentation Demographic Psychographic ‐ Vignette of the Target Market [Germany] 3. Hyundai Genesis in Germany………………………..…………3 ‐ Global Market Entry Strategy ‐ Product Characteristics Relative Advantage Complexity Compatibility Communicability Divisibility ‐ 2 Important Pricing Objectives & Strategies Pricing Objectives & Strategy 1 Pricing Objectives & Strategy 2 ‐ Channel Structures Key Functions of Each Channel Potential Conflicts Suggested Preventions & Solutions ‐ 3 Promotional Elements Promotional Element 1: Advertising Promotional Element 2: Public Relations Promotional Element 3: Product Placement ‐ Radio/ TV Commercial for the Product Advertising Objectives Advertising Appeals One Planned Commercial for Genesis in Germany ‐ Contrast Marketing Strategies to Those in the Home Market [South Korea] 4. Conclusion ………………………………………………………9 5. References...…………………………………………...
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...operate, ensure a consistent pool of resources that are required for the business to perform its functions, and to generate profits. The Acquisition of Kia Motors by Hyundai Motors Fikre Y. Wondimu CalUniversity Author Note Fikre Y. Wondimu is a student at California Intercontinental University. Special thanks to Dr. Troy Roland and Dr. Fathiah Inserto for providing suggestions to improve this document format and content. Correspondence concerning this thesis should be addressed to Fikre Y. Wondimu, CalUniversity, 1470 Valley Vista Drive #150, Diamond Bar, CA 91765. Contact: fikre_y@yahoo.com Abstract The last decade demonstrated decreased revenue and higher value of development costs, which led the automobile industry to engage in domestic and international mergers and acquisition (M&A). This case analyis examines one of the largest M&As in the Korean automobile industry in recent years, the acquisition of Kia Motors (Kia) by Hyundai Motors (Hyundai). The case study briefly analyses the conditions of the acquisition, the integration and stabilization processes undertaken by both companies. By acquiring Kia, Hyundai enhanced its competitive position in both domestic and global markets, achieving economies of scale, scope and strengthened its local and global market. The M&A process of Hyundai/Kia did not come easy. The Post-acquisition and restructuring process faced several challenges of synergy effects prompting for strategy change in order to align with...
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...academic field of international business (IB) is a bit latter-day. Starting with the pioneering works of Dunning (1958) and Vernon (1965) on firm internationalization, the field has grown momentously churning out some time-tested theories. Unlike its counterpart business disciplines which focus on narrow subject areas, IB research is broader focused and draws on multidiscipline approaches (Aggarwal 2004) to explain the reasons why businesses go international. It has been argued by Wang et al. (2008) that a firm’s internationalization process being more sophisticated calls for a multiple approach to be able to 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...
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...What are the greatest ethical challenges for Hyundai? Over the years Hyundai has had its share of ethical challenges to overcome. Probably the most notable of these challenges was the prosecution and subsequent conviction of the Chairman, Chung Mong Koo in 2006 for embezzling funds. Chung was essentially responsible for turning Hyundai into the global success that it was and is today so this had an enormous impact on the future of the company. He was accused of making questionable deals that benefitted him and his son and he was sentenced to three years in prison; however in September of 2007 he was granted a suspension of the three year prison sentence due to the fact that his imprisonment and the impact on Hyundai would negatively affect the Korean economy. Chung promised to donate $1 billion if he was freed and in February 2008 he was re-elected as the Chairman of Hyundai Motors. According to the text, this behavior is that of an immoral manager. Chung was obviously not interested in what was “the right thing to do” but was more interested in his own best interests and that of his family. He put the reputation and image of Hyundai at risk. However, given the economy in Korea and the political issues that exist there he basically got a slap on the hand and was allowed to be reinstated. This ethical challenge of immoral behavior did have some impact on their reputation; however given the fact that they are still one of the leading auto makers in the world, obviously...
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