Part I. The Hyundai Motor group of South Korea is one of the largest automobile firms in the world. They did not earn this title without great failures, questioning and learning. South Korea has unique customs and political affiliations compared to those in Europe and the Americas, the targets of their global market. The Chung family, who have remained in control throughout the firm's entire existence, have different morals and values with the generational changes in power, causing both legal trouble and internal critique. With Hyundai seeking continued growth, what strategy can they impose to overcome the reputation and cultural differences? Part II.
Hyundai Motor Group was formed in September of 2000 in Seoul, South Korea, …show more content…
Is it price? Is it design? Is it marketing? In Hyundai’s case, we feel that it is quality. In the beginning, South Korea did not have the reputation is has today for quality. The firm had to takes some very long, costly and intentional steps in order to get their reputation to what it is today. Currently, according to Doron Levin with Fortune magazine, Korean cars have passed Japanese vehicles in terms of quality, a feat that no one in the industry saw coming. J.D. Power rated Porsche, Kia, and then Hyundai being the top brands for quality in a global market survey. Given that many people do not classify Porsche in the same group as Kia/Hyundai, this speaks volumes for the automaker. There were three factors that led to the Hyundai Motor Group passing the Japanese automakers in the quality department. The first factor was the CEO, Chung Mong-koo, who strongly believes in traditional Confucian principles. Those principles pertained not only to individual and family values, but also business. Among them were values of trustworthiness, honors, and personal dignity; this translates into the automaking market by producing quality vehicles that one would be proud to have represent their family name and country. At the end of the 20th century and the beginning of the 21st, both South Korean Brands, Hyundai and Kia, were associated with poor quality vehicles. Vast …show more content…
We have seen cases, such as Hollinger International’s Conrad Black, Worldcom's Bernard Ebbers and of course the infamous Kenneth Lay. In these examples, their multi-million dollar firms were destroyed by ethical implications. But what happens when ethics vary from one country to another? What happens when one country's government supports, or turns their back on, behavior that would be publicized and subsequently bring negative attention to their country? We will dive into Hyundai Group’s ethical complications below, before making strategic recommendations for their continued
Hyundai Motor Group was formed in September of 2000 in Seoul, South Korea, …show more content…
Is it price? Is it design? Is it marketing? In Hyundai’s case, we feel that it is quality. In the beginning, South Korea did not have the reputation is has today for quality. The firm had to takes some very long, costly and intentional steps in order to get their reputation to what it is today. Currently, according to Doron Levin with Fortune magazine, Korean cars have passed Japanese vehicles in terms of quality, a feat that no one in the industry saw coming. J.D. Power rated Porsche, Kia, and then Hyundai being the top brands for quality in a global market survey. Given that many people do not classify Porsche in the same group as Kia/Hyundai, this speaks volumes for the automaker. There were three factors that led to the Hyundai Motor Group passing the Japanese automakers in the quality department. The first factor was the CEO, Chung Mong-koo, who strongly believes in traditional Confucian principles. Those principles pertained not only to individual and family values, but also business. Among them were values of trustworthiness, honors, and personal dignity; this translates into the automaking market by producing quality vehicles that one would be proud to have represent their family name and country. At the end of the 20th century and the beginning of the 21st, both South Korean Brands, Hyundai and Kia, were associated with poor quality vehicles. Vast …show more content…
We have seen cases, such as Hollinger International’s Conrad Black, Worldcom's Bernard Ebbers and of course the infamous Kenneth Lay. In these examples, their multi-million dollar firms were destroyed by ethical implications. But what happens when ethics vary from one country to another? What happens when one country's government supports, or turns their back on, behavior that would be publicized and subsequently bring negative attention to their country? We will dive into Hyundai Group’s ethical complications below, before making strategic recommendations for their continued