STRATEGIC PLANNING

Hyundai Strategic Planning

Hyundai Strategic Planning

Introduction

Hyundai Motor Company (Hyundai) is one of the leading automobile manufacturers in the world. The company specializes in the production of automobiles, including passenger cars, minibuses, and trucks. It has manufacturing presence in the US, China, India, and Europe. The company is headquartered in Seoul, South Korea. The company recorded revenues of KRW112,589,679 million ($101,330.7 million) in the financial year ended December 2010 (FY2010), an increase of 23.1% over FY2009. The operating profit of the company was KRW9,089,907 million ($8,180.9 million) in FY2010, an increase of 63.5% over FY2009. The net profit was KRW5,441,279 million ($4897.2 million) in FY2010, an increase of 83% over FY2009.

Business Description

Hyundai Motor Company (Hyundai) is an automobile manufacturer in Korea. The company is engaged in the design, development and manufacturing of automobiles. The company is part of the Hyundai Group, which includes companies with diverse market range including electronics, finance, shipping and shipbuilding. It primarily operates in Korea, North America, Europe and Asia. Hyundai has over 6,000 sales points and 24 overseas manufacturing plants and distributors in 180 countries worldwide (Ammons, 2005).

The company operates through two business segments: non financial industry and financial industry. The non financial industry segment of Hyundai deals with the design, development, and manufacturing of automobiles. The company divides this segment into three categories: passenger vehicles, recreational vehicles, and commercial vehicles. Hyundai's product line-up includes subcompact and compact cars; mini-vehicles; mid-size, luxury, sports and specialty cars; recreational and sport-utility vehicles; pickup trucks; minivans; trucks and buses. In FY2010, the company sold approximately 1,730,696 vehicles which included 657,897 vehicles sold in South Korea and 1,072,799 vehicles sold through exports.

Out of the exports, North America accounted for 287,796 vehicles, Africa and Middle East accounted for 291,148 vehicles, Latin America accounted for 219,786 vehicles, Asia Pacific accounted 169,771 and Europe accounted 104,298. The company sells its passenger cars through its Equus, Genesis, Azera, Sonata, Getz, Elantra, Accent, Genesis Coupe, i10, 120, 130, Grandeur, Centennial, and Santro brands. The company markets its recreational vehicles under Veracraz, Terracan, Santa Fe, Tucson, H1, Trajet, and Matrix brand names. Hyundai markets its commercial vehicles including pickup trucks, minivans, trucks and buses through Hyundai HD, County, Aero town, Super Aero city, Aero, and Universe brand names. Hyundai owns and operates three principal automobile production plants in Korea: the Ulsan plant, Asan and Jeonju. Ulsan is Hyundai's chief production plant and is located on a 5,050,000 square meters site comprising five separate plants. This plant has over 34,000 employees and its daily average production capacity is 5,400 vehicles. Asan is an independent automobile production plant with a capacity of producing 30,000 mid to large size passenger vehicles annually (Bryson, 2000).

With a capacity of producing 125,000 units per year, the Jeonju plant is specialized in producing mid to large-sized buses of 2.5 tons or more apart from trucks, and specialty vehicles. In addition, the company owns nine overseas manufacturing plants including two plants in China, two in India, and one each in Alabama, Turkey, ...