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Case Study of KIA Motors Company

1. Overview of the KIA Motors Company:

Name : Kia Motors


Type : Public
Industry : Automobile
Founded : June 9, 1944
Head Quarter : Seoul, South Korea
Area Served : world Wide
Products : Automobiles, Luxury Cars, Commercial vehicles
Website : www.kia.com

2. Key Concept:

The passage discusses about the defectiveness of their cars and customers dissatisfaction
and how they overcome it through an information system.

3. Summary:

Kia motor is a Koren car company. They have a very good market but they failed to
fulfill their customer satisfaction. So they introduce a information system which compiles
the problems of all customers in a single place and indentifying the defect and started to
improve.

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4. A. Ans: The difficulties for Kia to identify sources of defects are given below.

4. B. Ans: The business impact of Kia not having an information system is given below.

Loosing customer
satisfaction

reduce ability to
sell car

loosing profit

Incresing
operational cost
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4. C. Ans: The way of improvement of Kias new defect reporting system is given
below.

Infogain created a software called


engine which examines six Kia systems

The system automatically broke down


and categorized reports based on
individual componets

linked to Kia's clarify customer


relationship management system

using crystal analysis software to


analyze data

Kia determined the most cost


effective strategy

4. D. Ans: Kia had to address some management, organization and technology issues when it
adopts the new quality control system. These issues are given below.

Management issues:

Kia stored the information in at least seven different systems run by Kias warranty,
parts, consumer and legal affairs departments.

Organization issues:

Kias managers also can break down the data in detail to see how many complaints or
warranty claims are associated with a specific item .

Technology issues:

Kia enlisted Infogain, a Los Gatos, California, and software consulting firm to design
a new system solution.
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4. E. Ans: The new processes were enabled by the Kia motors new quality control
systems are given below.
Quality of cars improved
Number of defects decreased
Production process improved
Cost for warranty rapidly decreased
Improved customer relationship management system.

5. Conclusion:
In this case study Kia motors faced problems mainly due to fragmented information about its
problems and poor quality defect reporting system. Realizing such problems Kia motors
launched some dynamic and high quality software in order to solve its problems and improve
its quality.

6. Recommendations:
Improved customer relationship management system must be available.
Updating software after a specific time period.
Cost efficiency and effectiveness must be maintained
Standard quality information system should be enabled.

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