Essay About Case Study And Kia Motors

Case Study on Hmc
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This form can be used to organize your thoughts about a case. As you perform your analysis remain open to the fact that your interpretation of the facts may change and therefore you should constantly revisit your answers. Define the Problem: Describe the type of case and what problem(s) or issue(s) should be the focus for your analysis.What corporate composition strategy was used by HMGWhat corporate management ensures the most synergyList any outside concepts that can be applied: Write down any principles, frameworks or theories that can be applied to this case. DeWit and Meyer Business Systems Model :Resource Base/Stock of Assets, Activity System/Value Chain/, Product Offering/Value PropositionDrivers of industry Development: New Entrants, Suppliers, Buyers, Substitutes & Complementors, RivalsPolitical/Regulatory, Economic, Socio-Cultural, TechnologicalList relevant qualitative data: evidence related to or based on the quality or character of something. List relevant quantitative data: evidence related to or based on the amount or number of something. 1960 South Korean economy on the rise1961 Park Chung Hee seized control1947 Company foundedHMC established in 1967In the 1990’s Hyundai had 60 subsidiaries, 200 000 employees, with total annual revenue at $90 Million1997 Asian financial crisisOwner acquired Kia Motors and 60 % of LG Semicon5 major Chaebols went bankrupt 30 conglomerates were seen as financially stable Recorded $8.7 billion deficit In Asian financial crisisHMC posses 34 % of Kia motors, which holds 17 % of parts and in turn Mobis owns 21 % of HMCHMC into vertical structure would cost $9.6 Billion according to research in 2012Describe the results of your analysis: What evidence have you accumulated that supports one interpretation over another. After analysis of the case, it is clearly evident that HMC started as a integrated organization that focus on Syndergy as a whole, but as government pressures grew HMC had to re structure the family conglomerates And focus on the core businesses. (portfolio organization perspective) Describe alternative actions: List and prioritize possible recommendations or actions that come out of your analysis. Alternative actions are listed in the case, it provides two options:1 – take apart the current structure into vertical and estimated expenses sit at $9.6 billion but as sacrifice to make HMC a chaebol once again.2 – Keeping HMC as is now is risky, as cross shareholdings are looked down upon and perceivedas a problem