The Hyundai Group
Prof. Rosalinda B. Lacerona
Lim, Jan Paula P.
Time Context 1967
Hyundai Motor Co., formed in 1967, was a part of the large South Korean Chaebol - the Hyundai Group - until the group split in September 2000. In the last four decades, Hyundai managed to establish itself all over the world as a company producing reliable, technically sound and stylish automobiles.
In the 90s, the company started aggressive overseas expansion programs. By the late 90s, when Southeast Asian crisis struck, the company like all the other chaebols, faced serious financial problems. To survive, it had to cut its labor force. The company offered various retirement schemes, unpaid leave for two years, etc. to workers, and expressed its inability to support its entire workforce in the slack period.
The unions refused to compromise and the management too held its ground. Finally, the government intervened to force a negotiated settlement between the union and the management.
I. Statement of the Objectives
• to build their competence and a unique way to attract new customers and give better product supply and service to their existing customers
• to protect domestic automobile markets from advanced makers
• to be a sole and independent automobile manufacturer
II. Central Problem
The Hyundai group is facing the dearth of leadership and a coherent strategic direction after the death of its founder Chung Ju-yung. The strategy of expansion and diversification of business portfolio and using this diversity to work in their favor by coordinating and sharing resources is not working for them anymore.
III. Areas of Consideration (SWOT analysis)