Hyundai Group Case

Hyundai Group Case

Introduction

In order to move further in the curse of this paper it is important to shed light on the Hyundai Group and its roots in order to develop a better understanding of the Korean Economy. Hyundai was founded by Ju-Yung in the year 1949.At the time Hyundai was rendered as the beiges company in the country as it allowed the local industry to strength itself. As Hyundai also helped the Korean Economy to strength itself as it moved to the international arena. As a result there was an increase as far as Korean Exports were concerned, may be because of the fact that Hyundai offered products which stretched itself to the multiple areas. Hyundai Group not only gave Korea an internal recognition but it contributed to the recovery of the Korean Economy after the set back the war caused to the economy fought during the years of 1947 to 1960 (Cavusgil, 2009).

Their contribution was recognized on the part of the Korean government and they soon started to get a large portion of the government related projects. The way government supported Hyundai Group allowed them to achieve the exemplary success. However, it becomes evident from the above stated fact that the Hyundai Group tends to enjoy their good relations with the government. However, the issue which the company faced was that it started to depend too much on its founder Ju-Yung.Thus, in order to tackle this phenomenon the organizational structure was centralized and as a result the powers were delegated among the children of Ju-Yung. The structure of the organization took the following shape as it was centralized:

Analysis

As Identified above in the course of the paper that Hyundai Group helped the Korean Economy to strength itself by increasing the exports and bringing the capital into the country. It not only provided the breathing space to the Korean Economy in 1960's but it also affected the nature in which the constriction was done in Korea. However, in the light of the research it can be stated safely that from1947 to 1960 the company was in its founding years and later it decided to explore the international front (Hwy, 2009). Since Hyundai Group contributed a lot to the Korean Economy thus, the government also provided them the state machinery in order to achieve their set goals and objectives. During this period Hyundai Group explored many fronts which proved fruitful in the future.

The Hyundai Group stretched itself to the Chemical Industries. Moreover, the Korean government at this point of time was adopting different means to adopt as friendly policies towards the business as possible. Thus this was done in order to strengthen the economy to the extent that it can stand on its own foot. By entering into the Chemical business and other key sectors the company was found to be operating under the diversification strategy. This allowed the Hyundai Group to grow in multiple directions (Misra, 2009). However, it was in the year 1980 that the Hyundai Group ...