ASSIGNMENT ON

GLOBAL BUSINESS ENVIRONMENT & MANAGEMENT

BY: ARIF TASLIM 08- SEC ³A´

SUBMITTED TO: PROF. GAURI MODWELL

and the Excel was nominated as "Best Product #10" by Fortune magazine.6 million units annually. Exports began in the following year to Ecuador and soon thereafter to the Benelux countries. In 1991. a slanted. Hyundai began to sell cars in the United States. Hyundai operates the world¶s largest integrated automobile manufacturing facility in Ulsan. and it was at one point the top-selling car on the Canadian market. Canadian sales greatly exceeded expectations. thus paving the way for technological independence. was released in cooperation with Ford Motor Company in 1968. and Hyundai Heavy Industries. another South Korean company. stylized 'H'. Hyundai vehicles are sold in 193 countries through some 6. In 1975. Hyundai Motor Company a division of the Hyundai Kia Automotive Group. with styling by Giorgio Giugiaro of ItalDesign and power train technology provided by Japan¶s Mitsubishi Motors. The Hyundai logo. Hyundai Motor Company was later established in 1967.000 dealerships and showrooms worldwide. the company succeeded in developing its first proprietary gasoline engine. largely because of its affordability. HISTORY Chung Ju-Yung founded the Hyundai Engineering and Construction Company in 1947. the four-cylinder Alpha. The Pony afforded a much higher degree of quality and refinement in the lowest price auto segment than the Easternbloc imports of the period then available. was released. which is capable of producing 1. Headquartered in Seoul. and is pronounced as "Hyon-dae" in Korean. is the world's largest automaker by profit. symbolizes the company shaking hands with its customer.HYUNDAI Hyundai is a group of companies founded by Chung Ju-yung in South Korea. The first Hyundai Company was founded in 1947 as a construction company. Hyundai exported the Pony to Canada. South Korea. the Pony. In 1998 Hyundai bought Kia Motors. The company employs about 75. the world¶s fourth largest automaker by units sold and the world's fastest growing automaker. the world's largest shipbuilder. In 1986. Other companies currently or formerly controlled by members of Chung's extended family may be loosely referred to as a part of the Hyundai chaebol. Some of the best-known Hyundai divisions are Hyundai Motor Company. In 1983.000 persons around the world. but not to the United States because the Pony didn't pass emissions standards there. the world's fourth largest automaker and one of the Big Asian Four (with Toyota. the Cortina. The company¶s first model. the first Korean car. Honda and Nissan). Hyundai translates from the word "modernity". and transmission. The company .

In 2004. Thus Hyundai is termed as Multinational Corporation. the South Korean government initiated an investigation of Chung Mong Koo's practices as head of Hyundai. in 1999. after a shake-up in the Korean auto industry caused by overambitious expansion and the Asian financial crisis. Asia. or chaebol. In 2004. It can also be referred to as an international corporation. design. In 1996. Hyundai Motor Group. known as the home country. Hyundai is now one of the top 100 most valuable brands worldwide. Power and Associates. Hyundai Vice Chairman and CEO. As a result. and the Pacific Rim. Hyundai has its headquarters at Seoul. and Turkey as well as research and development centers in Europe. BUSINESS In 1998. Hyundai Motors India Limited was established with a production plant in Irrungattukotai near Chennai. On April 28. however. In 2000. 2006. India. Hyundai's parent company. and charged for embezzlement of 100 billion South Korean won (US$106 million).5% stake for $900 million. invested heavily in the quality.000 km) warranty to cars sold in the United States and launched an aggressive marketing campaign. Chung Mong Koo.D. DaimlerChrysler divested its interest in the company by selling its 10. FORM OF COMPANY Hyundai has a presence in 193 countries with 6000 dealership network worldwide. China. Czech Republic. is a corporation or an enterprise that manages production or delivers services in more than one country. Since 2002. Hyundai Motor Company had $57. India. Pakistan. . Kim Dong-jin.000-mile (160. South Korea. North America. It has it presence in India with its manufacturing units and offices in India. also called multinational enterprise (MNE). Hyundai began to overhaul its image in an attempt to establish itself as a world-class brand. A multinational corporation (MNC) or transnational corporation (TNC). Hyundai has invested in manufacturing plants in the North America. replaced him as head of the company. Chung was arrested. Chung Ju Yung transferred leadership of Hyundai Motor to his son. In 2004. the Daimler-Hyundai Truck Corporation was formed. beginning with the midsize Sonata. manufacturing.2 billion in sales in South Korea making it the country¶s second largest corporation. the company established a strategic alliance with DaimlerChrysler and severed its partnership with the Hyundai Group. It added a 10-year or 100. Hyundai acquired rival Kia Motors. and long-term research of its vehicles. The International Labour Organization (ILO) has defined an MNC as a corporation that has its management headquarters in one country. suspecting him of corruption. In 2001. Hyundai was ranked second in "initial quality" in a survey/study by J. In 1998. known as host countries. In 2006. Hyundai has also been one of the worldwide official sponsors of the FIFA World Cup. and operates in several other countries.began to produce models with its own technology in 1988.

Hyundai has set as its 2006 target worldwide sales of 2. After a recent survey of global automotive sales. Hyundai has a presence all over the globe in every continent of the world.961. PSA/Peugeot. Hyundai motor vehicles are sold in 193 countries through some 5. Hyundai Motor Company¶s brand power continues to rise as it was ranked 72nd in the 2007 Best Global Brands by Interbrand and BusinessWeek survey.5 billion. Public perception of the Hyundai brand has been transformed as a result of dramatic improvements in the quality of Hyundai vehicles.629 worldwide vehicle sales²surpassing Fiat. originally produced by Hyundai Precision Industry) Grandeur/Azera/XG (Originally a joint project of Hyundai and Mitsubishi) Genesis Equus/Centennial (Originally a joint project of Hyundai and Mitsubishi)[61] Coupé/Tiburon/Tuscani Genesis Coupe Excel Dynasty SUVs and vans y y y y Entourage (Similar to the Kia Sedona) Galloper (Rebadged Mitsubishi Pajero.695 units.533.Worldwide sales in 2005 reached 2. and Honda.000 dealerships and showrooms. brand value estimated at $4. In 2007 it reached 3.7 million units (excluding exports of CKD kits). an 11 percent increase over the previous year. Nissan. originally produced by Hyundai Precision Industry) Grace (1st generation was a rebadged Mitsubishi Delica) H-1/H-200/iMax/i800/Libero/Satellite/Starex . Hyundai has a vast range of products ranging from SUV`s from Sedan`s and to Commercial Vehicle. Hyundai is now the fourth largest automaker in the world as of 2009. MODEL LINE UP y y y y y y y y y y y y y y y y y y y y Pony Atos/Atoz/Santro Click/Getz/Getz Prime/TB Accent Verna/Accent Sonata/i45 Stellar Elantra/Avante/Lantra i10 i20 i30/i30cw/Elantra Touring Lavita/Matrix Santamo (Rebadged Mitsubishi Chariot. Chrysler.

Models are sold depending upon the requirement of the country. . For example the model i20 and i10 is only available in India but i30 has its presence in only Europe. The model depends on the need and requirement of the country people.5 to 5-ton truck (Rebadged Mitsubishi Fuso Fighter) Hyundai 8 to 25-ton truck (Rebadged Mitsubishi Fuso Super Great) Aero (Rebadged Mitsubishi Fuso Aero Bus) Aero City Aero Town (e-Aero Town) Bison & 3ton Truck Chorus County (e-County) Hyundai DQ-7 e-Mighty Hyundai FB HD160 HD170 Mega Truck New Power Truck Nova (made by Ghabbour Group in Egyp) Mighty (Rebadged Mitsubishi Fuso Canter) Mighty II Hyundai RB Super Truck Medium Super Truck Trago Universe O303 Benz Bus Hyundai has variety of models but each and every model is not present in every country.y y y y y y y y HD1000 (Minibus/Porter) Porter (1st generation was a rebadged Mitsubishi Delica) Santa Fe Starex/Grand Starex/i800/H-1 Terracan Trajet Tucson/JM/ix35 Veracruz/ix55 Commercial vehicles y y y y y y y y y y y y y y y y y y y y y y y y y y y y y Ford D series Ford DK series Ford R series HM 1620 urban bus HM 1630 suburban bus Hyundai 4. Some models are available in euorpe such as the commercial models but are not available in India.

It has never been any other way. Polycentric Approach: In this approach. In this approach the product and the management style is region specific. it is not unusual for people to consider that whatever they believe is the most appropriate system of belief or that however they behave is the most appropriate and 'natural' behavior. it is important to examine the bases for our beliefs regarding other cultures and nations. Thus.MANAGEMENT APPROACH EPRG MODEL Ethnocentric Approach: Ethnocentrism occurs when one culture or nation places itself at the top of an imagined hierarchy of cultures and nations and subsequently assigns other cultures and nations equivalent or lower value on that scale. for it is admitting its own falseness. and that all other nations can be judged according to the model Nation 'A' represents. . language. In this approach the organization treats each country as a separate market which is shown later in the case of hyunda products for Indian and Canadian and europian market. that is. The theory is simple: local people know best the host country's culture. With this in mind. Geocentric Approach: The third style of international management is the geocentric approach. To be fair. should be placed in management positions. Nation 'A' is the center and all other ethnicities must strive to emulate it in order to move up in the imaginary hierarchy. regardless country origin. and work ethic. they are the ideal candidates for management. a system of belief in which someone doesn't consider his or her own as the right one is inherently inconsistent. Regiocentric Approach: It is the forth style of international management in which the global market is divided into different regions such NAFTA and EU. However. The idea that Nation 'A' is intrinsically 'better' than any other is inculcated in the population until it becomes naturalized'. This philosophy maintains that business problems are the same and it treats the whole globe as one single market. This theory holds that the best individuals. management staffs its workforce in foreign countries with as many local people as possible. a commonly held belief that Nation 'A' has always been the best.

also known as ix35 in the latest Europe and Brazil from Second generation. korea. modern coach by Hyundai. the Hyundai Excel. The Excel was offered in a variety of trims and body styles. 6th generation Hyundai hybrid car battery The Hyundai Tucson. south Hyundai entered the United States market in 1986 with a single model.HYUNDAI IN DIFFERENT PARTS OF THE WORLD UNITED STATES The Hyundai Genesis. That year. Hyundai set a record . Hyundai Universe Space Luxury. named the 2009 using Li North American Car of the Year.

The center moved to a new $30 million facility in Irvine. according to Kelley Blue Book Pricing 2006. Marketing research and consultancy firm for the automobile industry. measuring the ownership experience. In 1990.000 vehicles). Michigan (near Ann Arbor) in 2005. only behind Toyota. a comparable 2003 Hyundai Sonata sedan ranks just $2200 below a similarly equipped Honda Accord. established in 1986). Hyundai Motors leads the most vehicle segments in Strategic Vision¶s Total Quality Index. Hyundai was awarded 'Top-rated 2006 Ideal Vehicle' by Autopacific.[14] The brand overall is ranked much higher than the average industry and resale value continues to improve. Hyundai authorized Ed Voyles' Hyundai dealership in Smyrna. and long-term research of its vehicles. It added a 10-year or 100.S. United States). design. for having 102 problems per 1000 vehicles. The staff in this dealership are able to accommodate deaf customers with the use of American Sign Language and video conferencing phones.[18] In the 2007 Strategic Vision Total Quality Awards. The company continued this tradition by placing third overall in J. Hyundai tops in Strategic Vision Total Quality Awards. The Insurance Institute for Highway Safety also rates ³Good´ ± its highest rating ± in front. (HATCI. [15][16][17] In 2006. In 2006.000 m2 ). The center also has employees in California and Alabama. HATCI announced that it would be expanding its technical operations in Michigan and hiring 600 additional engineers and other technical employees over a period of five years. In 2004. Besides the design studio. side and rear impacts. manufacturing. By 2004. In response.´ making the safest minivan ever tested. For the first time ever. in fact. sales had dramatically increased.000 km) power train warranty (known as the Hyundai challenge) to its vehicles sold in the United States. In 2005. Hyundai established the Hyundai Design Center in Fountain Valley. Power and Associates. behind only Porsche and Lexus. California in 2003. for Hyundai. just behind Porsche and Lexus.D. and was renamed the Hyundai Kia Motors Design and Technical Center. named the 2006 Hyundai Entourage and Kia Sedona a ³Gold Top Safety Pick. and beating long time rival Toyota. In 2006. for initial vehicle quality. the Hyundai Entourage minivan earned a five-star safety rating ± the highest honor the National Highway Traffic Safety Administration bestows ± for all seating positions in frontal and side-impact crashes. The IIHS (Insurance Institute for Highway Safety. Later that same year. the facility also housed Hyundai America Technical Center. a subsidiary responsible for all engineering activities in the U. the parent company of Hyundai began investing heavily in the quality.D. Hyundai continues to invest heavily in its American operations as its cars grow in popularity. overall the Hyundai brand ranked 3rd. California.000-mile (160. They attempt to measure more than just the number of problems per vehicle. and the reputation of Hyundai cars improved. Hyundai tied with Honda for initial brand quality in a survey/study from J. Georgia to become the first "deaf friendly" dealership in the entire world.000-square-foot (19. Hyundai has risen to share the . Power and Associates' quality ranking.of selling the most automobiles in its first year of business in the United States compared to any other car brand (c. $117 million headquarters in Superior Township. Power's 2006 Initial Quality Survey. This made Hyundai second in the industry. J.D. Hyundai America Technical Center moved to its new 200. 126. Inc.

is currently planning to build a new plant in Canada and resume production in Canada. HYUNDAI IN CANADA In 1989. and the . Hyundai sells several models in India. Chrysler and Hyundai considered a joint venture that would have Chrysler rebranding the Sonata manufactured at Bromont ² only to later announce the deal had failed. This concept made its American debut in mid-2008. Subsequently. With boost in Sales in 2009. a manufacturer of wind turbines based in Quebec. Hyundai's midsize SUV. The Bromont plant was operational for four years before it closed ² with Hyundai's sales unable to support the plant. with Quebec and Canadian federal government subsidies of $131 million. In 2007. India. Tucson. better than Nissan/Infiniti. Santa Fe.7 million. In 2007 at the New York International Auto Show. employing 800. The plant cost $387. Accent. three models with the top Total Quality Index (TQI) score in their segments. i10 and the i20. earned the 2007 Top Safety Pick award by IIHS. Hyundai subsequently sold the plant. It is making India the global manufacturing base for small cars. HYUNDAI IN INDIA Hyundai's manufacturing plant at Irungattukottai near Sriperumbudur. Entourage.[23] In 2009. Other models include Getz Prime. second generation Verna. the most popular being the Santro Xing. Hyundai Motor India Limited is currently the second largest carmaker after Maruti Suzuki and largest auto exporter in India. the Santa Fe.. which was eventually purchased by AAER Inc. Hyundai Auto Canada Inc.position of having the most models leading a segment. Hyundai Auto Canada Inc. The plant was designed to manufacture approximately 2000 Hyundai Sonata's per week. 6 models of Hyundai/Kia cars earned the Top Safety Award by IIHS. Quebec. The Genesis reintroduced rear-wheel drive to the Hyundai range following a long period of only producing front-wheel drive cars. including the Hyundai Azera. opened a stamping and assembly plant in Bromont. Hyundai unveiled its V8 rear-drive luxury sedan called the Concept Genesis to be slotted above the Azera in the Hyundai line-up.

The plant. its models like Santro Xing and i10 and i20 is a hit in the Indian region. has an annual capacity of 200. Hyundai opened its European plant in No ovice.Sonata Transform. which continues to top the list every year. employing now nearly 450 engineers from different parts of the country. . Hence Hyundai to capture the market produces model depending upon the requirement of the specific model.000 units . Hyundai has two manufacturing plants in India located at Sriperumbudur in the Indian state of Tamil Nadu. Czech Republic. following an investment of over 1 billion euros and over two years of construction.In the year 2007 Hyundai opened its R&D facilty in Hyderabad Andhra pradesh . Both plants have a combined annual capacity of 600. The European countries look for design and features while the Indian sub continent market look for milage in the car. Europe On November 2008.000 cars. depending upon the need and requirement of the country. In India Hyundai tops the list in making fuel efficient after Maruti Suzuki. which mainly manufactures the i30 for the European market. The new Hyundai plant is 90 kilometers north of Kia Motors' ilina Plant in Slovakia Conclusion Having a presence worldwide and with huge number of models produced and launched in different countries. Basically the Hyundai Motors India Engineering (HMIE) gives technical & engineering support in Vehicle development and CAD & CAE support to Hyundai's main R&D center in Namyang Korea. But when compared to the products offered by Hyundai in European countries i30 is popular due to its features which are suited to the condition of the European countries. Hence we can conclude that Hyundai follows a polycentric type of management approach to carter the needs of different markets differently.

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