Hyundai Motor Company, a major company in the Hyundai Kia Automotive Group which is the universes fifth largest car manufacturer as of the terminal of 2009, ( In 2008, Hyundai ranked the 8th largest car shaper, without including Kia. ) and the universe ‘s fastest turning car manufacturer.
Headquartered in Seoul, South Korea, Hyundai operates the universe ‘s largest integrated car fabricating installation in Ulsan, which is capable of bring forthing 1.6 million units yearly. The company employs about 75,000 individuals around the universe, Hyundai vehicles are sold in 193 states through some 6,000 franchises and salesrooms worldwide.
The Hyundai logo, a slanted, stylized ‘H ‘ , symbolizes the company agitating custodies with its client. Hyundai translates from the word “ modernness ” , and is pronounced as “ Hyon-dae ” in Korean.
Chung Ju-Yung founded the Hyundai Engineering and Construction Company in 1947. Hyundai Motor Company was subsequently established in 1967. The company ‘s first theoretical account, the Cortina, was released in cooperation with Ford Motor Company in 1968. When Hyundai wanted to develop their ain auto, they hired George Turnbull, the former Managing Director of Austin Morris at British Leyland. He in bend hired five other top British auto applied scientists. They were Kenneth Barnett organic structure design, applied scientists John Simpson and Edward Chapman, John Crosthwaite as human body applied scientist and Peter Slater as head development applied scientist. In 1975, the Pony, the first Korean auto, was released, with styling by Giorgio Giugiaro of Italian Design and power train engineering provided by Japan ‘s Mitsubishi Motors. Exports began in the undermentioned twelvemonth to Ecuador and shortly thenceforth to the Benelux states. In 1991, the company succeeded in developing its first proprietary gasolene engine, the four-cylinder Alpha, and transmittal, therefore paving the manner for technological independency.
In 1983, Hyundai exported the Pony to Canada, but non to the United States because the Pony did n’t go through emanations criterions at that place. Canadian gross revenues greatly exceeded outlooks, and it was at one point the top-selling auto on the Canadian market. The Pony afforded a much higher grade of quality and polish in the lowest monetary value car section than the Eastern-bloc imports of the period so available.
In 1986, Hyundai began to sell autos in the United States, and the Excel was nominated as “ Best Product # 10 ” by Fortune magazine, mostly because of its affordability. The company began to bring forth theoretical accounts with its ain engineering in 1988, get downing with the midsize Sonata.
In 1998, Hyundai began to pass its image in an effort to set up itself as a first trade name. Chung Ju Yung transferred leading of Hyundai Motor to his boy, Chung Mong Koo, in 1999. Hyundai ‘s parent company, Hyundai Motor Group, invested to a great extent in the quality, design, fabrication, and long-run research of its vehicles. It added a 10-year or 100,000-mile ( 160,000 kilometer ) guarantee to autos sold in the United States and launched an aggressive selling run.
In 2004, Hyundai was ranked 2nd in “ initial quality ” in a survey/study by J.D. Power and Associates. Hyundai is now one of the top 100 most valuable trade names worldwide. Since 2002, Hyundai has besides been one of the world-wide official patrons of the FIFA World Cup.
Hyundai has invested in fabrication workss in the North America, China, Czech Republic, Pakistan, India, and Turkey every bit good as research and development centres in Europe, Asia, North America, and the Pacific Rim. In 2004, Hyundai Motor Company had $ 57.2 billion in gross revenues in South Korea doing it the state ‘s 2nd largest corporation. Worldwide gross revenues in 2005 reached 2,533,695 units, an 11 per centum addition over the old twelvemonth. Hyundai has set as its 2006 mark world-wide gross revenues of 2.7 million units ( excepting exports of CKD kits ) . In 2007 it reached 3,961,629 world-wide vehicle sales-surpassing Fiat, Chrysler, PSA/Peugeot, Nissan, and Honda.
Hyundai Motor Company ‘s trade name power continues to lift as it was ranked 72nd in the 2007 Best Global Brands by Interbrand and BusinessWeek study. Brand value estimated at $ 4.5 billion. Public perceptual experience of the Hyundai trade name has been transformed as a consequence of dramatic betterments in the quality of Hyundai vehicles.
Hyundai is one of the taking groups of Companies founded in South Korea. It is the general trading house of Korea, which provides assorted import and export services. There are several types of merchandises are included in its import and export services such as workss & A ; machinery, cars, steel and chemical merchandises, general trade goods etc. First it was founded as the building company so the direction of the company diversified its concern activities in assorted concern countries. The corporation operates its concern worldwide through 34 world-wide offices. Through its planetary presence, it provides optimum solutions to the client harmonizing their demands. It is helpful to heighten its fiscal capableness in the industry. Hyundai Motor Company is one of the divisions of the Hyundai Corporation, which is the 4th largest car manufacturer in the universe. Hyundai Heavy Industries division is the largest shipwright in the universe ( Hyundai Corporation, 2010 ) .
Internal Environment Analysis
The analysis of the internal environment is an of import constituent for the concern as it helps to find the effectivity of the direction schemes and the menaces, which may do job for the organisation. For the internal and external analysis the SWOT analysis tool could be used. The SWOT analysis tool would assist to find the strengths, failings, chances and menaces of an organisation. The internal environment analysis of the Hyundai can be analyzed through the analysis of the strengths and failings of the organisation –
Diversified concern activities – The Company is involved in the diversified concern sections as it provides several types of import and export services to its client worldwide.
It is the largest car manufacturer in Asia and 4th largest car manufacturer in universe, which enhance its effectivity in planetary exposure. It besides helps to capture a big sum of client worldwide.
Information assemblage capableness -The information garnering capableness of the company is effectual as it obtains prompt and extended information from its beginnings worldwide. It besides uses the advanced trading techniques to obtain the extended information.
Quality advantages – The quality of the Hyundai car is better than the other makers in Asia as proprietors of Hyundai autos are sing less jobs from the proprietors, who obtains other trade name.
Sound fiscal place – The Hyundai Corporation is basking a uninterrupted addition in its gross revenues gross worldwide, which is besides doing an addition in the net income of the concern ( Hyundai Motor Company, 2010 ) .
The concern activities are operated in ethical and societal mode, which causes an addition in the image of the company in the society.
An addition in the cost of production is cut downing the net income of the company. It is besides enforcing trade good monetary value hazards on the company as the monetary value of inputs such as steel, plastic, aluminium etc.
The company is besides sing the exchange rate hazard because of the worldwide concern activities. The exchange rate hazard is impacting the entire gross of the concern. The fluctuation in the foreign exchange rates is impacting the concern public presentation as it is involved in the import and export of several services.
Addition in debt to equity ratio – The Company is besides sing an addition in the debt equity ratio, which exhibits an addition in the involvement disbursals of the company. The external fiscal duty is besides increasing, which may make fiscal jobs for Hyundai ( Hyundai Motor Company, 2010 ) .
Analysis of the External Environment
The concern of Hyundai besides operates in the external environment and there are several chances and menaces are produced by the external environment for the company. The analysis of the chances and menaces helps to accomplish the competitory place for the company. The analysis of the external factors is good for the company if it is performed efficaciously and expeditiously. Hyundai is one of the taking companies in the car industry and it has the undermentioned chances and menaces –
Entry in ship edifice concern – It is the taking company in the heavy industry and entry in the ship edifice concern would be effectual for the concern in order to heighten its gross and market portion every bit good.
New undertaking development – The launching and development of the new undertakings and merchandises would besides do an addition in the public presentation of the concern in the industry. The addition in the demand for fuel efficient vehicles would besides do the success of the new launched undertakings and merchandises.
Business enlargement – Hyundai besides have the chance of the concern enlargement as it is an Asiatic company and had the chance of spread outing its concern in Asian Pacific Market.
Decrease in cost – The Company operates its concern in several states around the Earth and it can cut down its cost of production by heightening the production capacity in the states with lower sum of cost ( Hyundai Motor Company, 2010 ) .
Environment ordinances – The environment ordinances are presenting menaces for the concern as variegation of the concern may do the misdemeanor of the environmental ordinances.
Worsening economic system – The diminution in the economic system is besides doing a lessening in the market place of the company every bit good as besides cut downing the market capitalisation of it.
Political jobs – The concern unit in the different states may do the jobs for the concern ( Hyundai Motor Company, 2010 ) .
In the present modern-day environment every concern operates its concern activities in extremely competitory environment. There are assorted environmental factors, which influences the operation of the organisation.
Consequence of Economic Environment
The Company is runing with a rapid economic growing in the concern by capturing the environmental chances. The addition in the value of currency of Korea against the US dollar is besides doing an addition in the net incomes of the concern from the foreign concern activities. Labor is non inexpensive in Korea but addition in the production capacity in the states with lower pay rate is cut downing overall cost of the concern.
In 2009, Hyundai Motor Company succeeded in selling 2.4 million vehicles overseas, a meaningful achievement sing the planetary economic crisis. In peculiar, Elantra, Genesis, Genesis Coupe, Santa Fe, and Veracruz were recognized as the best and safest autos in their classs by taking bureaus and the media in the US. Besides, Hyundai achieved cumulative export gross revenues of 1 million autos in Africa during the 33 old ages since it foremost began exporting to the part. Hyundai Motor Company pledges uninterrupted growing by maximising trade name value in developed markets and spread outing its gross revenues capacity in emerging markets.
Consequence of Industry Environment
Hyundai Motor Company was named Carmaker of the Year by AM, UK ‘s prima car trade magazine, in the AM Awards 2010. Car manufacturer of the Year is awarded to companies that launch advanced vehicles that pioneer alterations in the car industry through uninterrupted investing in R & A ; D and advanced trader web plans. Highly recognized for its crisp gross revenues addition, ace franchise plans, and growing in trade name consciousness, Hyundai Motor Company beat other campaigners including Ford, Jaguar, and Landrover to be selected as the victor of the desired rubric. In 2008, UK ‘s Autocar selected Hyundai Motor Company as Automaker of the Year, praising Hyundai for holding “ grown into a top-class planetary car manufacturer with its competitory merchandises. ”
Consequence of Political and Legal Environment
The addition in the relationship between the different states and their authorities is a good index for the concern of Hyundai as it operates its concern in assorted states. It would bring forth concern enlargement chance for Hyundai. In order to guarantee the proper conformity of the concern activities with the applicable statute law, the corporation works on certain guidelines for the different concern operation in different states. It is indispensable as every state has different regulations and concern ordinances.
Consequence of Socio-cultural environment
The socio-cultural factors besides affect the concern effectivity and public presentation. The concern of Hyundai is operated in the several states worldwide and the society and civilization of those states are wholly different ( Wessels, 2000 ) . The direction of the company operates its concern by analyzing the societal and cultural factors of the state efficaciously.
Consequence of Ethical Environment
Hyundai Corp. introduced Ethics Management at the beginning of twelvemonth 2004, to construct the footing for endurance on its ain and to seek common benefit of all parties involved including clients and concern spouses etc. by forestalling moral jeopardy of the employees and implementing transparent, responsible, and honest direction.
The company organized its Ethics Management Office, with the Executive Director of the Corporate Planning & A ; Personnel Management Office helping as the Chief Ethics Officer, and besides established the Principles of Business Conduct, the Code of Conduct, and the Self-Review Questionnaire.
The Questionnaire pops up from the initial Windowss screen every twenty-four hours during the first hebdomad of any month when the employees check in to the intranet system, to remind them of and pull their voluntary engagement to the thought and chase of Ethics Management in pattern.
Particular preparation and educational Sessionss on best patterns of ethical direction from taking corporations and establishments will be presented on a regular basis to the staff.
All the members of the company have submitted his or her ain pledge of conformity to the assorted moralss codifications, and those in misdemeanor will be capable to train by the Human Resources Committee following due scrutiny by the Ethics Management Office.
Consequence of Technological Environment
The direction of the company is continuously involved in utilizing universe category engineering in order to accomplish technological promotion. The usage of most modern engineerings causes an addition in client service effectivity.
The concern schemes of Hyundai are to increase the chances through the environmental factors is effectual as it is doing an addition in the figure of gross revenues units continuously. But in the last twelvemonth the economic factors has affected the gross revenues of the concern as entire figure of units sold were 1668745 in the twelvemonth 2008, which is less in comparing of the twelvemonth 2007 in which it was 1700297 units ( Hyundai Motor Company, 2010 ) . The lessening in the gross revenues was domestically due to fluctuation in the current rate every bit good as in trade good rate.
There are assorted alternate schemes, which can be adopted by the direction of Hyundai in order to better concern public presentation such as integrating scheme, growing scheme etc. The company should utilize the integrating scheme to spread out the concern worldwide. It would be good for the concern as it would cut down the impact of political and legal factors on the concern operations. The affect of the economic factors would besides be less due to proper cognition of the client behaviour, their purchasing form in an effectual mode.
Execution of Strategy
Hyundai could implement the integrating scheme in an effectual mode through its diverse work force and concern activities. The diverse work force would be good to develop the motive techniques within the organisation harmonizing to their civilization and beliefs ( Ryall & A ; Craig, 2003 ) . For the effectual execution of the integrating scheme the direction of the company should develop a proper program related to the assorted facets of the concern operations.
Evaluation & A ; Control
Execution of the integrating scheme is non sufficient itself for the concern effectivity. The rating of the concern effectivity in timely mode is indispensable for rapid growing of the concern. Company disposal should sporadically reexamine its execution procedure which is necessary for its efficient applications and future consequences ( Ryall & A ; Craig, 2003 ) . This measure makes execution procedure effectual.