Automobiles revolutionized transportation in the 20th century, changing forever the way people live, travel, and do business. The automobile has enabled people to travel and transport goods farther and faster, and has opened wider market areas for business and commerce.
Automobile Industry produces automobiles and other gasoline-powered vehicles, such as buses, trucks, and motorcycles. The automobile industry is one of the most important industries in the world, affecting not only the economy but also the cultures of the world. It provides jobs for millions of people, generates billions of dollars in worldwide revenues, and provides the basis for a multitude of related service and support industries.
Talking about transportation, there are countless brands in this world that produces automobiles. One of the famous brands or a well-established organization when it comes to transportation and vehicle is Hyundai Motor Company (HMC). Hyundai Motor is named the world’s 35th most valuable brand for the second year in a row
Hyundai’s global brand value reaches US$13.2bn, up 5.1% year-on-year. Hyundai Motor ranks sixth in global automotive rankings, with increased product competitiveness and a defined blueprint for future mobility.
2.1 Research Method
For this assignment, I have used the internet to look up much needed information. Some of the websites include:
3.0 Introduction ( History and Background )
Hyundai Automobile Manufacturing business is located in South Korea. It has auxiliaries in other markets around the world. For instance, Hyundai Motor India is reportedly the second largest and the fastest emerging automotive producer in this market. Hyundai Automobile Manufacturing managed to establish itself as a most prominent automaker producing reliable, technically sound and stylish automobiles and commercial vehicles.
Hyundai Motor Company was founded in 1967 by brothers Chung Ju-yung and Se-yung in Seoul, Korea. Its iconic “H” symbolizes the shaking of hands between the customer and the company. Dedicated to innovation and the discovery of new possibilities, Hyundai translates from the word “modernity”, and is pronounced as “Hyon-dae” in Korean. Hyundai operates the world’s largest integrated automobile manufacturing facility in Ulsan, which is capable of producing 1.6 million units annually. The company employs about 75,000 persons around the world, Hyundai vehicles are sold in 193 countries through some 6,000 dealerships and showrooms worldwide.
In 1991, Hyundai Motor Company achieved technological independence by developing the first propriety engines and transmissions. Currently this company has 78,539 employees around the world working in eight manufacturing plants, 12 Research and Development (R;D) centers, 5,300 dealerships and sales companies, and CKD (completely knocked down) plants. As of 2010, Hyundai Motors established as a global automaker that produces more than three million high-quality passenger and commercial vehicles for sale in 190 countries each year.
By enhancing Brand image through high quality products and unique marketing initiatives, once again, HMC is the first and the only Korean automaker to be listed in the Top 100 Global Brands in 2010 by Business Week and Inter-brand since it first entered the Top 100 Global Brands in 2005.
3.1 Mission Statement of Hyundai Motor Company
Mission is a statement which defines the role that an organization plays in a society. It refers to the particular need of that society for instance, its information needs. Mission is an enduring statement of purpose that distinguishes one firm from other similar firm.
One of the very first mission statement of Hyundai Automobile Manufacturing is ” Realize the dream of mankind by creating a new future through ingenious thinking and continuously challenging new frontiers”. The key elements of this philosophy is ‘Realization of Possibilities, ‘Unlimited Sense of Responsibility’ and ‘Respect for Mankind”. Hyundai is methodically re-examining the entire concept of the automobile from simply a means of transport, to a space that connects people and places, an experience driven by ultimate customer service, and a technology that maximizes environmental sustainability and connectivity with customers.
Thus , another mission of Hyundai Motor Company is it seeks to improve the lives of everyone surrounding the company, and make Hyundai a company that is respected by people all over the world. To advance into the front ranks of the global auto industry in the next century, Hyundai has adopted the ‘FOUR BEST’ concept which defines their new objectives. ‘Four Best’ concept includes ‘Best customer service, Best technology, Best quality products and Best value for people’.
Moreover, ‘To pursue excellence and deliver cars that inspire, so you can live your life’. To create exceptional automotive value for their customers by harmoniously blending safety, quality and efficiency. With their diverse team, they will provide responsible stewardship to the community and environment while achieving stability and security now and for future generations.
3.2 Vision Statement of Hyundai Motor Company
A vision statement is a corporate image that a company wishes to achieve in the future. It specifically maps out the role of the company and the direction that must be taken for the company to achieve the social stature and dreams that it wishes to achieve. Corporate vision statements offer guidance for setting objectives and managing the company long term. Let’s find out about Hyundai Motor Group’s new vision statement, which gives a common sense of direction to all members of the organization and provides guidelines for day-to-day conduct.
One of the earliest vision of Hyundai Motor Company is ‘Innovation for Customers’ as their mid-to-long-term vision with five core strategies. This five core strategies include global orientation, respect for human values, customer satisfaction, technology innovation, and cultural creation. Hyundai Motor desire to create an automobile culture of putting customer first via developing human-centered and environment-friendly technological innovation.
Hyundai Motor Group’s new vision, “Together for a better future,” expresses its will to create ultimate value and promote harmonious growth for all stakeholders through eco-friendly management and respect for mankind. Along with the Group vision, Hyundai Motor Group also announced its vision and strategies for its three core sectors. By adding the construction sector to its current driving forces, the automotive and steel sectors, Hyundai Motor Group will be able to enhance its global presence and contribute to a better society and economy.
“Together for a better future.” in order to fulfill its role and responsibility as a trusted global firm. Hyundai Motor Company defined its vision of being a “Lifetime partner in automobiles and beyond” to come one step closer to its customers and become their beloved brand. A car is no longer simply a means of transportation that links people to people. It has become a life space that occupies a central role in people’s lives. As such, Hyundai Motor Company seeks to become a lifetime partner in the everyday lives of customers. At this very moment, It is developing eco-friendly and human-oriented technologies for the future and setting up optimized global management systems in order to provide the best experience to its customers.
The company doesn’t mention any of the values in their mission but provides them separately. Hyundai’s 5 core values, which guide their actions and decision-making are divided into 5. Their 5 core values are Customer, Challenge , Collaboration, People, and Globality.
Customers value is ‘We promote a customer-driven corporate culture by providing the best quality and impeccable service with all values centered on our customers’.
Challenge value is ‘We refuse to be complacent, embrace every opportunity for greater challenge, and are confident in achieving our goals with unwavering passion and ingenious thinking.’
Collaboration is ‘We create synergy through a sense of “togetherness” that is fostered by mutual communication and cooperation within the company and with our business partners.’
People is ‘We believe the future of our organization lies in the hearts and capabilities of individual members, and will help them to develop their potential by creating a corporate culture that respects talent.’
Globality is ‘We respect the diversity of cultures and customs, aspire to be the world’s best at what we do, and strive to become a respected global corporate citizen.’
3.4 Goals of Hyundai Motor Company
Goal is defined as an “intermediate result to be achieved by a certain time as part of the grand plan. A plan can, there for have many goals. Goals are short term milestones or bench marks that organizations must achieve in order for long term long term objectives to be reached.
Hyundai Motor will be launching 30 new models and derivatives over the next five years in Europe, in order to increase the brand’s presence in the relevant market segments. Along with the unveiling of the latest models of the Hyundai i30 range, the i30 N and i30 Fastback, the company is introducing its latest strategic approach. To become number one Asian automotive brand in Europe by 2021, they have defined four strategic cornerstones, each grounded on our customers’ needs and expectations. Hyundai Motor’s four cornerstones for implementing the new strategic platform focus on DNA models, future mobility, the SUV range and performance & emotion.
DNA of the brand is the i-models as a foundation for Hyundai’s success in Europe. Hyundai Motor’s DNA cars are the models of the i-range. They represent the core of the Hyundai brand in Europe and continue to be the foundation of the brand’s success in the region.
Future mobility is the a technology-driven and innovative approach in order to stay ahead. Today, Hyundai Motor is a car manufacturer offering the broadest range of powertrains. To strengthen this first-mover position in the segment of eco-mobility and also the company’s leadership in Fuel Cell technology, the brand is globally launching 14 new eco models .
The SUV range is the premium products in the fastest-growing market segment. With the expansion of its SUV line-up, Hyundai Motor will be making the brand even more desirable and attractive to new customers. Hyundai Motor’s strong SUV base began with the introduction of the Santa Fe in 2001. Since then, the SUV line-up has gained both credibility and a significant market share, with more than 1.4 million sales in Europe.
The last cornerstone is Performance ; emotion.When Hyundai Motor entered the motor sport scene with its WRC entry in 2014, it quickly established itself among the top teams. The motor sport experience formed the foundation for Hyundai’s N sub-brand and its All-New i30 N, the company’s first high-performance car. The Hyundai N model delivers maximum driving enjoyment in everyday life. The i30 N provides outstanding performance in cornering, is capable of racetrack.
These four cornerstones form the basis of Hyundai Motor’s Road to 2021 with the aim of becoming number one Asian car brand in Europe by 2021. To achieve this goal, the company is concentrating on its firmly established customer relations. By constantly interacting with consumers and factoring in their requirements at all levels, Hyundai Motor is strengthening its position as a lifelong mobility partner.
Goals of Hyundai Motor Company
3.5 Objectives of Hyundai Motor Company
The long term objectives of the Hyundai-Motor Automotive Group are to elevate its brand value to the level of the world’s elite auto manufacturers, while joining the ranks of the world’s top 30 global brands and the top five automotive brands in terms of brand value.
The short-term objective of Hyundai Motor Company in the U.S. market is to make a high quality car with a low cost. Its car should be quoted at a low price. The most important thing for Hyundai is to maintain a low cost that results from cheap labor costs. The long-term objective is to increase product quality and to increase the safety level. The fundamental goal for Hyundai is to become a leading automaker in the world.
Hyundai is growing into a brand appreciated by its customers by continuously striving to achieve the single goal of making excellent quality products with an emphasis on exceeding customer expectations. Moreover, Hyundai Motors will continue building its brand image as a top global automobile company by handing every task with transparency and fairness from the perspective of business ethics. Marching into the future through the move forward and growth. It will reborn as a truly global company gaining a competitive edge in the global market.
Another objective of Hyundai Motors Company is to become ‘Trustworthy Partner for Today ; Tomorrow’. Hyundai Motor Company declared this for social contribution that not only reflects changing social aspects that are in flux, and to apply issues our society faces today in its social contribution activities, but also to operate these activities more systematically. Based on this, Hyundai Motor Company will strive to become a business that creates and shares sustainable future values with all its stakeholders.
4.1 Management culture
The Korean culture is very evident in the Hyundai company. The company does not believe in concentration of power in few hands like western organizations rather businesses are internally integrated and networked so that everybody is connected and no one is the only manager rather traditional CEO post and a somewhat untraditional Co-Chief Executive Officer too. The company works in many countries where there are country managers. Hence, the management is a mix of focused and decentralized structure.
Like many other hard working Korean businesses, the company believes in contributing through hard work. The Hyundai workers are habitual in working late. Once the production or sales target is set, the employees would achieve it by any means (Helping Hyundai drive to greater effectiveness, 2013). Besides the hard work, the excessive knowledge of manufacturing and production is also trademark of Hyundai. The Hyundai has human resource that is skill full, determined to work hard and is knowledgeable.
Maintaining high ethical standards in business management is an important requirement for sustainable management on a par with fulfilling legal responsibilities and generating profits. HMC strives to earn the trust of stakeholders through transparent and ethical business conduct. HMC will comply with its legal responsibilities, foster an ethical business management culture among its employees. Furthermore, HMC will promote an ethical business management culture among its suppliers.
An ethics committee was established in 2007 in order to improve transparency in the management decision making process. In 2002, we adopted a voluntary fair trade compliance program in order to ensure fair trade with our suppliers. HMC’s ethical business management policies are making a considerable contribution towards strengthening HMC’s competitiveness and creating new economic values by eliminating many sources of management inefficiency. In 2001, HMC established the HMC Ethics Charter, the Employee Code of Conduct, and the Guidelines for Ethical
Business Conduct to set clear guidelines for all its employees and to promote a transparent and ethical business management culture
4.2 Organizational Structure
Hyundai is very dedicated towards providing great quality of service, support system and product. This is their policy be it their employees, dealers or customers. Starting from the top all members of the organization is driven by quality and also they strive for the continuous improvement process all across the board.
This is mainly true in the area of cost, technological advancement, and efficient operations. Their management is very strongly into conducting business practices which are ethical and lead to creating long term partnerships be it with suppliers, customers or employees. They are the people who are the support system for achieving as well maintaining their competitive advantage, cost saving purpose and also maintain the technological edge.
All this is done while they remain sensitive and receptive to the diverse communities they operate in. The price review of the stocks and also the brand new and old customers leads them to believe that they are doing a great job with their current business strategies. Their stability, efficiency, and profitability goes a long way in establishing and holding true their credibility to their shareholders and stakeholders. If they can continue to be so responsive to their customer´s needs, innovative in their processes, services, and products they should have no foreseeable problems. Clearly, Hyundai has become a leader and innovator of quality affordable automobiles for a number of years.
They have achieved this because they were nimble and flexible enough to respond to changes in their marketplace and because they have kept their eye on quality, cost, and customer service. Since Hyundai is a worldwide organization they have also had to make the most of their diverse work force, as well as, overcome many regulatory, socio-cultural, and environmental variables of doing business in a multicultural and multi-ethical environment.