STRATEGIC PLANNING OF HYUNDAI

Strategic Planning of Hyundai

Strategic Planning of Hyundai

Introduction

Strategic Analysis is basically an international business strategy for universal competitive advantages. It includes five parts, which are referred as home countries, supplier's countries, customer's countries, partner's countries and competitor's countries. Through Star Analysis, few essential and important strategic recommendations are carried out. It manages the demand and supply limitations by identifying the strong point of company's home country through global transactions. In addition, it appoints a suitable supplier country that corresponds with the firm's strategy. In order to increase net profits from trading, targeting the right customer from various countries is vital. Besides, complementary of demand-side and supply-side are offered by the right partners. Finally, it hopes that competitors have performed well in their home and partner country locations.

Hyundai KIA Automotive Group is a parent company of Hyundai Motor Company (HMC). In Korean, the meaning of Hyundai is modernity. Hyundai is the largest car maker in South Korea and after taking control of KIA, it was ranked the world's fifth largest automaker in terms of sales. The vision of Hyundai is to provide value to the future of customers. In addition, their mission is to provide excellent automotive value for customers with the combination of safety, quality and efficiency. On the other hand, Hyundai is concerned about environmental problems which are increasing nowadays so they need to prepare appropriate strategies to get rid of them.

Discussion

South Korea is the world third automotive exporter at the year of 2004. There are few main automotive producers, namely, Hyundai, Daewoo, Kia and Samsung. The companies mainly export their automotive products to U.S. They are using the strategies alliances for the industry. For example, DaimlerChrysler and Hyundai Motor Co have formed an alliance in which DaimlerChrysler will acquire 10 % equity in Hyundai. South Korea has the competitive advantages in terms of relationship between government and automotive industry, strategic alliance in the industry, political and legal system of the country. In 1962, the governments introduced the new law of Automotive Industry Protection Law. “The law exempted the import of parts and components for assembly production from tariffs while prohibiting the import of complete cars, and parts and components, not for assembly production.” The economy of Korean was still underdeveloped and export industry oriented at 1960s. Secondly, the pattern of globalisation for major car makers can be divided into three stages. First of all, the companies export their products to be fit into the worldwide market. Afterwards, they will set up the plant in the major market region. The final stage is to complete up with the local transplants and establish to the global market. In order to gain the success, they should use the strategy of internationalisation which consists of developing the joint venture with advance foreign car makers which will allow them to develop the world market sale. Finally, the political system of the South Korea, the executive power is controlled by government and legislative power is apply to both government ...