External & Internal Evaluation Of Hyundai Motors Strategies & Plans - 275 Words

External & Internal Evaluation Of Hyundai Motors: Strategies & Plans (Essay Sample) Content: Does Age Play a Crucial Rule in Acquiring Native-Like Pronunciation? : Student Name Institution Instructor Date External and Internal Evaluation of Hyundai Motors; Array of Possible Strategies and Plans 1 Abstract In this study, the evaluation of internal and external factors of Hyundai Motors is critical in determining the strategies that will enable for the organizational transformation. In most cases, various organizations strive to attain their mission through the improvisation of technical plans and strategies that enable the company realize change, and Hyundai is not an exception. In review of the internal environment, the study will capitalize on the mission, culture and the style leadership. As such, the mentioned attributes directly influence the organizational activities, different behaviors and attitudes of the workforce as well as the decisions of the organization. Again, the research will capitalize the external environment, which includes all the external factors that influence an organization. The customers of Hyundai Motor Company as well as the competition, technology, social and political resources make up the group, hence determine the progress of the organization. In most s ituations, organizations capitalize on examining the external factors to enable establish strong foundation with regard to the long-term growth and sustainability and the current operations of the organization. Finally, the evaluation of the external and internal environment will lead to the creation and development of plans and strategies that will enable the organization expand and achieve its mission. 2 Review of Hyundai Motor Company Hyundai Motor Company is among the companies of the world that have made a mark in trading in the motor vehicle industries. The company commenced its operation in the year 1967, under the leadership of Chung Ju-yung, who was the sole founder of the organization (Duncan, Ginter Swayne, 2008). Despite the numerous branches of the organization that are scattered in many nations across the globe, the company operates from Seoul, South Korea, which serves as its main headquarter (Anitha, 2013). Since then, the organization has undergone tremendous growth due to efficient leadership and management. However, its outlets in foreign destinations operate independently under the leadership of the branch h directors and managers. The company operates on the products such as the automobiles, Cars, commercial and engines (Rojo-Ramà ­rez, 2014). It is also significant to note that the organization performs well in the trade market despite the intense competition in the motor market. In the year 2 015, the revenue of the company ranged about $92. 05 billion and the company profits are $10.4 billion (Anitha, 2013). The organization enjoys the expertise of its qualified employees, totaling about 64, 000, according to the 2015 company records. Among the challenges the organization face includes higher competition form reputable organizations such as the Bayerische Motoren Werke AG, Ford, General Motors, Honda, Toyota, Volkswagen and Daimler Motor Company among others. 3 PESTEL Analysis of Hyundai Motor Company PESTEL analysis is critical since it enables the identification of primary forces of transformation, which are vital in the prediction of future scenarios of Hyundai Company. In PESTEL analysis, some factors such as political, economical, social, technological, environmental and legal feature during the analysis process (Rojo-Ramà ­rez, 2014). * Political factors These are the most likely government laws and regulations together with the security measures and restrictions that influence the motor vehicle industry. Just like any other motor vehicle industry, Hyundai faces the challenges such as the laws and regulations set to fulfill the environmental norms and enforced into the car industry, the restricting the maximum production (Anitha, 2013). The presence of taxes and high revenues dominating in the government foreign policies critically affect the automobile industry (Duncan, Ginter Swayne, 2008). Intensive policies compromise the export of products due to high revenue hence reduction of profitability. * Economical Factors Economical factors are very vital in that they include the exchange rates as well as the general global economic growth with regard to business setting and performance in the industry of operation (Anitha, 2013). Among the economic factors include the excess production leading to high marketing revenue and the development of new product designs leading to low demand and higher supply in the market. Another economical factor is the is the total increase in the GDP worldwide, that is from 4.2% to 5.31% according to 2014 statistics, that increasing the purchasing power, a positive factor to Hyundai company with regard to sales (Duncan, Ginter Swayne, 2008). The fluctuation of the exchange rates of the dominating currencies as affected the European and Asian Car makers in a remarkable way. * Social factors The social factors are instrumental in that they include the cultural changes as well as the alteration in demographics. Various social factors influence Hyundai Motor Company just like other automotive manufacturing companies (Rojo-Ramà ­rez, 2014). The initial one is the change in customer preference, fore instance the preference of vehicles that are fuel efficiency with low emissions rather that a status symbol. The recession of mature markets leading to changes in the purchase patterns amongst the consumers is another influential social factor. * Technological factor Technological factors are also influential in a specific way. To start with, the technological intensity amongst the production nations is likely to increase competition amongst the motor vehicle manufacturing companies (Anitha, 2013). Another technological factor that is of great significance is the utilization of classy design to conquer the decreased manufacturing margins and boundaries in the industry. Another technological factor that influences the Hyundai Company and other automotive manufacturing companies include the adjustments or the constraints on expertise that is likely to cause environmental pollution. * Environmental factors Environmental factors play a critical role in manufacturing of the automotives. Among the major influences of the political factors include the increase in the intensity of the effect awareness of global warming, the intensity of the greenhouse consequences as well as the suffer exhaustion amongst the clients thus lowering the intensity of sales in the manufacturing industries (Anitha, 2013). The shift of consumer tastes and preferences also affects the organization automotive manufacturers more the Hyundai Automotive manufacturing company (Duncan, Ginter Swayne, 2008). The introduction of various norms aimed at curbing pollution in developing nations is another critical factor that influences the performance and production of the organization. * Legal Factors Legal factors are the legislative strategies aimed at controlling the manufacturing trends for the sake of the safety of the environment and the consumers (Anitha, 2013). Among the legal factors that affect Hyundai Company include the restrictions and strict pollution norms set in the US and the world market leas to decline in production, hence making the company to realize low sales and minimal profits. Another legal factor is the restriction of the EURO norms on the developing nations, thus making the purchase of motor vehicle products from Hyundai, which is under the influence of Europe difficult. In the vent, the company realizes the slump in performance and production. 4 Structure, Conduct and Performance (SCP) analysis of Automotive Industry The SCP analysis of Hyundai is critical in the sense that it enables an organization to outline the basis of the industry performance (Rojo-Ramà ­rez, 2014). The model of Cause and effect is the basic influencing factor of the SCP. It is also critical to note that the competitive demeanor majorly causes the industrial financial performance of Hyundai Company. * Highlight in Structure The structure of Hyundai is among the features that make it dominate and perform well in the automotive industry. The industry concentration was monopoly oriented, enjoying the dominion of 70% in 1987 alone, to the perfect competition due to insurgence of other organizations into the automotive industry (Anitha, 2013). Due to higher intensity of the automotive market, there is no dominant leader with regard to the market share pattern (Duncan, Ginter Swayne, 2008). The company dominates in the ability to produce least product amount while utilizing the economy of scale on the costs and supplies of the organization, with a rate of 30%. It is critical to note that the Minimum Efficient Scale is vertically integrated due to the concentration of manufacturing processes that deal in different products but in the same organization. * Highlight In Conduct Automotive manufacturing companies compete under various categories. The fist category is the manufacture of classy cars that sale higher. Again, they compete in service, whereby other companies offer spare parts and after-sale services (Rojo-Ramà ­rez, 2014). Another category is the manufacture of vehicles of cheap price and fuel friendly, where Hyundai features. The conduct of the organizations is sound and link to the industry cycle, the factor that makes it to thrive. It is critical to note that due to the fluctuations in the tastes and preferences, the companies try possible to differentiate the products to increase the sales. * Highlight in the Performance The long-term total shareholder returns in the automotive industries amounts t about 60% an indication of the positive performance of the organizations in the automotive industry. It is also critical to note that the Re...