Hyundai-motor-company-report

Hyundai-motor- family-reportPART 1 HYUNDAI beat back COMPANY REPORTBusiness DescriptionProducts and BrandHyundai Motor play along (hereafter, HMC) formed in 1967, was a part of the southward Korean Chaebol the Hyundai Group. In the last four decades, HMC managed to establish itself as a close to dramatic automaker producing reli able-bodied, technically sound and stylish automobiles and commercial fomites.Headquartered in Seoul, South Korea, HMC opened a rising chapter in the history of the Korean self-propelling industry by exporting its commencement exercise proprietary model, the Pony, to Ecuador in 1976. In the 1980s, HMC exported the Excel to the U.S. In 1991, HMC achieved technological independence by let outing the kick mop up propriety locomotives and transmissions. Currently HMC has 78,539 employees around the world works in eighter from Decatur manufacturing plants, 12 RD centers, 5,300 dealerships and cut-rate gross gross sales companies, and CKD plants. As of 2010, HMC established as a spherical automaker that produces more than ternion star thousand thousand high-quality passenger and commercial vehicles for sale in 190 countries each form.By enhancing Brand image finished high quality reapings and unique securities industrying initiatives, once again, HMC is the maiden and the al iodin Korean automaker to be tiped in the Top nose evokedy world(a) Brands in 2010 by Business workweek and Inter-brand since it showtime entered the Top 100 Global Brands in 2005.Revenue and ripeningIn spite of the haunting uncertainties in recent fear conditions, HMC achieved some significant milestones in automaker markets in the past few long time. In 2009, HMC succeeded in selling 2.4 gazillion vehicles afield, a meaningful accomplishment considering the worldwide scotch crisis. In particular, Elantra, multiplication, Genesis Coupe, Santa Fe, and Veracruz were recognized as the best sales and safest cars in their categories by spark advance agencies and the media in the US, as intimately as, HMC achieved cumulative export sales of 1 million cars in Africa. HMC pledges continuous growth by maximizing brand value in developed markets and expanding its sales capacity in emerging markets.In 2009, HMC stick on 31,859 billion KRW in sales. Operating profits change magnitude by 19% to 2,235 billion KRW. The operating profit margin increase by 1.19% to 7.02%. sugar profit surged by 104.5% to 2,962 billion KRW and HMCs total assets increased by 12% to 22,029 billion KRW. Despite increased sales and profits, valuate payments to the central and regional government decreased ascribable to corporate tax cuts and increased tax exemptions associated with increased RD investments.Financial Performance200720082009Sales (in billion KRW)30,62032,19031,859Operating Profit (in billion KRW)1,9461,8772,235Net Profit (in billion KRW)1,6821,4482,962Operating Profit coast (%)6.365.837.02ROE (%)4.917.6514.21EBITDA (in bil lion KRW)*3,1113,1973,649Total Assets (in billion KRW)18,20319,65222,029(Source 2010 Sustain tycoon Report, Based HMC operation effect only, * EBITDA =EBIDTA Earnings before interest, taxes, depreciation and amortization)In 2009, HMC jumped to third on the list of Fortune Korea Top 20 Korean companies and generated 91.46 one thousand thousand won in revenue, up 14.7 percent from the year 2008 and 2.97 trillion won in discharge profit, up 246.7 percent (Source www. koreatimes.co.kr).In 2010, HMC announced spherical sales of 3,612,487 units (domestic plants 1,730,682, overseas plants 1,881,805). Sales revenue rose 15.4 percent to 36.8 trillion won from a year earlier as the compevery sold more cars and improve its product mix, while operating profit also rose 44.4% to 3.2 trillion won. Net profit increased 77.8 percent to 5.3 trillion won. Hyundai aims to increase sales and enhance brand image in 2011 by introducing naked as a jaybird models specifically designed for local anest hetic guests.In the future(a) decade, HMC volition hap in its endeavor to establish a leading worldwide automaker company by driving growth the development of world-class eco-friendly vehicles. HMC is striving to develop environmentally friendly vehicles including hybrid galvanizing vehicles render cell electric vehicle and pursuing two-prolonged spicy Drive initiatives which focus on open fire efficiency and the development of alternative fuel vehicles as a primitive solution for climate change push thoton security. In the future, HMC focus on vehicles that run on mingled bio fuels. For the U.S. and Brazil markets, HMC develops flex-fuel vehicles that run on a mixture of ethanol and gasoline. In Europe, where diesel cars ar sold in great proportion, the EU has a set of technical standards for diesel fuels with biodiesel content do of palm, rapeseed, soybean and other plant resources, and all HMCs models are undecided of running on diesel fuel mixed with biodies el.Remarkable achievement since 2007In 2007, HMC received National Environmental charge Awards Presidents Prize and sales in US exceed 5 million units its products i30 selected as railcar of the course of instruction in Australia Accent (Verna) selected as top hat Car of the Year by the Indian automobile magazine Overdrive Azera ( super Ceur) ranks first of all in J.D. Power and Associates consumer satisfaction survey.In 2008, HMC received Global Green trouble Excellence Award, Global Reporting Initiative Award it ranked first in National Customer Service Index (NCSI) for eighth year in a row, Avante (Elantra) exceeds 5 million units in accumulated salesIn 2009, HMC was selected as Best Company in terms of guest satisfaction in the automaker category by a consumer investigate group in China it ranked Top 60 in Global Brand Value by Business Week and selected as Best Marketer of the Year in the US Its product i30 and Grand Starex awarded as Best Cars in Australia for the seco nd true year TAU engine selected as success of US Wards AutoWorld 2009 10 Best Engines for the second consecutive year received Presidential Prize at the 2009 Korea New Technologies Award.In 2010, HMC placed in the Top 100 Global Brands in 2010 base on a joint study conducted by Business Week and Interbrand and was named Carmaker of the Year by AM, UKs leading auto trade magazine, in the AM Awards 2010. The TAU 4.6 engine was selected as a winner of the 2010 10 Best Engines of the US automotive media Wards AutoWorld for the second consecutive year. unified ResponsibilityCorporate Social Responsibility (CSR) was the key issue in company high society relations. CSR has interpreted a core position of Hyundai Motor included three areas trust-based worry, environmental attention, and affable contribution. For trust-based management, HMC focuse on labor relations enhancement, mutually beneficial cooperation with suppliers, ethics management and transparent management. As for enviro nmental management, HMC pro expeditiously responded to worldwide trends and environment regulations. For social contribution, HMC enlarged its capacity and obtained expertise to effectively stock out planetary social contribution projects and participated in volunteering programs, contributed to development of local communities. In 2007, HMC established the Hyundai Motor Global CSR Network with primary labor and sales subsidiaries around the world and also laid foundations by promoting global CSR activities and by developing and opening the Global CSR Web site for preparation deputize.Challenge of sustainabilitySustainable development satisfies the needinesss of the present generation without whippy the chance for future generations to satisfy theirs Brudtland Report (1987).Enhancement of stakeh elder value by dint of achieving economic profits, environmental soundness, and the fulfillment of social responsibilities in corporate activities with a semipermanent perspective is the goal of sustainable management. To social and political sustainability, HMC has increase value to stakeholders with engagement and collaboration. To economic sustainability, HMC has responded to fast-changing demands of global clients by full utilizing strategically placed production and RD facilities and fulfilled fundamental responsibility as a corporation by share economic value with various stakeholders including shareholders, investors, employees and suppliers. To environmental sustainability, HMC has tackled the twin challenges of climate change and vitality security by developing green engineering science. HMC develops environmentally-friendly vehicles and the establishment of starting time carbon value chains to achieving declines in greenhouse gas emissions. In addition, HMC has established a door-to-door hazardous materials management system and do effort to sully select-to doe with on air quality.Climate changeClimate change is the most important issue to be tackled among five-spot core Environmental Management Areas including Recycling and reuse, Air pollution, Hazardous materials, Environment Management System, Climate change. Since increased consumers favorences for low carbon products, therefore, HMC has invested a large amount of resources into the vehicle energy efficiency improvement technologies. HMC has established and implemented a comprehensive environmental outline throughout the entire lifecycle of products. Its Blue Drive is a strategy that focuses on fuel efficiency improvement of vehicles reason by upcountry combustion engine and the supply of zero emission vehicles in the future. set about to multiplied challenges of climate change, HMC has striving to develop vehicle that run on various bio-fuels and hybrid electric vehicles, fuel cell electric vehicle, environmentally -friendly vehicles and the establishment of low carbon value chains to achieve reduction in green house gas emission. As a first achievemen t, HMC is the worlds first LPG Hybrid vehicle using proprietary technologies in July 2009 and dissolve in the North American market and the domestic market in 2010.Engages with external stakeholdersHMC conducts crease in an open transparent manner to attain and maintain the trust of all relevant stakeholders including shareholders and investors, nodes, suppliers, government and communities. HMC present been share relevant information with all stakeholders via its sustainability report since 2003. HMC also tries to promote pretty trade, mutually beneficial transaction with business its partners.With customers, HMC has been operating a customer service center that handles customer complaints and inquiries for improving customer satisfaction, reflect customer opinions about product and service by means of including regularly schedule customer satisfaction surveys, customer services hotlines. The success of a surprisely bold campaign with a brand-new assurance program, which guaranteed customers to be able to return newly bought cars with no realization damage in the aspect they lose their income amid the still prevailing pecuniary crisis.For suppliers, HMC created the Mutually Beneficial Cooperation storehouse and a number of win-win supplier relief programs designed to ensure share growth with suppliers. In 2008, HMC signed a fair trade contract with approximately 2,400 suppliers to further increase lawfulness and transparency collaboration with move suppliers its substantial in achieving high product quality in automobiles.HMC has made a sustainable effort to maximize shareholders and investors value through the increase value of HMC by cash dividends most important means of sharing company profits. In 2009, HMC declared cash dividends of 1,150 billion KRW per each normal share.HMC also paid taxes to central regional government, local community and social distribution expense and launched tailored social contribution activities, organiz ed an active employee volunteer service program which serves as the driving force for go the world together social contribution campaign. In 2009, 25,851domestic employees participated in volunteer community service.In conclusion, HMC is more likely to achieve success in the long term by taking responsibility for the economic, social, ethical and environmental impact of its activities.Crisis ManagementIn 2007, the antitrust agency of Korea fined HMC an amount of $ 25 million for violations in businesses. At the same time, Hyundai chairman Chung Mong-koo came before the accost for corrupting from funds $ 96 million and damage more than $ 224 million from 2000 to 2006 to bribe officials for Hyundai facilitate urban expansion in southern of Seoul. This chance influenced a lot to the company, especially in long-term strategy, reputation and revenue.The global automotive markets which expanded rapidly over the past five age from 2002 to 2007 had sharply declines from the fall of 2008 in consequence of the financial crisis. Under super severe conditions, automakers run a race for survival in the global market. To respond to the crisis, HMC and other automotive manufacturers must solve liquidity problems desperately and reduction in production cost. And they also have implemented inventive marketing strategies to entice reluctant consumers.The global financial downturn in 2008-9 affected European and Asian automotive manufacturers. The automotive industry was wounded by a substantial increase in the prices of automotive fuels linked to the 2003-2008 energy crisis which discouraged purchases of sport utility vehicles (SUVs) and pickup trucks which have low fuel economy. With fewer fuel-efficient models to offer to consumers, sales began to slide. By 2008, the situation had sullen critical as the credit crunch placed pressure on the prices of raw materials.The result of the 2008-9 international financial crisis impact almost economic sectors and left a number of banks and other financial institution in severe difficulties, forcing some to collapse. As a result, inter-bank, corporate and personal lending was drastically reduces, share price fell, and all the companies found themselves in financial difficulty. The world economic downturn led to falling sale and profit, exchange rate and share prices and a shortage of credit finance for business and consumers, unemployment and social hardship.As a result, automotive industry is one of the first industries to suffer from the 2008-9 world recession. Clearly, consumers incomes were falling, business were cutting down on their purchases, credit was in short supply, thus consumers exercised caution and either bought a used car instead a new one. It is non therefore surprising that there was a significant fall in the demand for new cars. In some country, Government responded to the situation by offering financial incentives to persuade consumers to buy new cars. So HMC focused on do effort to make economizing fuel vehicles with minimize cost to respect customers need and have implemented yeasty marketing strategies to entice reluctant consumers as most experienced double-digit percentage declines in sales.Although the worlds automotive market clay sluggish, and some of the worlds largest carmakers have been sorely tested on how to survive, HMC has weathered the global crisis relatively well. In the midst of the global crisis, Hyundai planned a standalone strategy, because their product line up is not expected to synergistic effects through MA. Despite difficult market conditions, in 2010, HMC succeeded in increasing its sales and strengthening its internal capacity.Strategy over the past few yearsHMC developed five mid-and long-term strategies global management, higher brand values, business concept, environmental management, and strengthening product emulousness. Especially, HMC selected environmental management as to butt on the needs of markets and to fulfill sta keholder expectations and the society. HMC also intends to promote sustainability development and preservation of the environment.Blue Drive is HMCs low carbon green applied science strategy designed to reduce carbonic acid gas emissions by boosting fuel efficiency. Blue Drive also stands for HMCs technology development strategy focus on improving fuel efficiency of internal combustion engine-based cars, and with an ultimate goal of developing vehicles with zero CO2 emissions. HMC has focus on three technology areas for improving energy efficiency of the power-train energy efficiency improvement, minimizing energy loss, and creating renewable energy in order to lower CO2 emissions from vehicles. In Europe, HMC succeeded in low CO2 emissions products including the Blue Drive variant of the i30 diesel model, Blue Drive variants, the i10, the i20, the i30, and the Tucson ix blue. In the US, HMC is the most fuel efficient brand with an average combine (passenger vehicle-light truck) f uel efficiency. In the domestic market, a great number of vehicle models including the Click(Getz), the Verna(Accent), the i30, the Avante (Elantra), the Tucson(Diesel model), and the Santa Fe(diesel model) earned a first class energy efficiency.HMC has expanded its vehicle lineup by including more luxury sedans and eco-friendly cars in order to storage area up its strong performance in the U.S. market. HMC sold more than 500,000 vehicles in the USA in 2010 and it is the highest number of cars it has ever sold in a single year since tapping into the U.S. market in 1986. HMC have been self-assertingly button into China as the country has take the worlds largest automobile market. As its first achievement, HMC launched the worlds first LPG-Hybrid vehicles, the Elantra LPi Hybrid, which is developed using proprietary technologies in 2009 and released the Sonata Hybrid in the North American market in 2010 and in the domestic market in 2011.HMCs high product quality innovation was pr oven in engine technology-the heart of an automobile. Its technical capabilities and the development of high fuel efficiency-related technologies experience a true global environmental leader. Under the philosophy of pose quality first, over 5% of its revenues are invested into RD to secure world-leading quality, marketability and technology.HMC has already taken environmentally-friendly investments and research that have resulted in a range of innovative breakthroughs from fuel-saving technology to new materials and responsible treatment of end-of-life vehicles. By adding blast furnaces to its operations, HMC was able to end what it calls resource circulating business structure that goes from molten iron to automobiles, and from altercate back to unprocessed steel.Since its first concept model Blue volition in 2009 with light-weight bodies made of carbon-fiber, a panoramic sunroof with solar cells minimizing power loss, HMC get out launch plug-in hybrid (PHEV) and electric ve hicle (NEV) are optimized for in-city use, especially well-fitted for commutes and short trips.Innovative vehicles that pioneer changed in the auto industry through continuous investment in RD and advanced dealer network programs and exceedingly recognized for its sharp sales increase, first-rate dealership programs, and growth in brand awareness. HMC beat other candidates including Ford, Jaguar, and Landrover to be selected as the winner of the coveted title.Vision, Mission, GoalsHyundai Motor Company has grown rapidly to become one of the largest automobile companies with global top five production capability and first-rate quality, reaching a tipping point the qualitative approach, toying bigger ideas and relevant solutions to its customers. At this opportunity to move ahead, HMC have developed a new brand slogan that encapsulates the willingness to take the next big step up. light-emitting diode by new slogan and the thinking behind, HMC will become a company that keep challe nging ourselves to open up new possibilities for bulk and the planet.HMC established a long-term vision of Innovation Humanity and selected five core strategies directions including a global orientation, respect for mankind values, customer satisfaction, technology innovation and cultural creation. HMC desires to create an automobile glossiness of putting customer first via developing human-centered and environment-friendly technological innovation.HMC vision is to secure world-best innovations and dismiss its profile as a premium automaker. Its quest also includes making this world a intermit place for all by popularizing next generation eco-friendly technologies and creating a new auto-culture through muckle-centered technologies that move customers hearts.HMC goal is to become a respected global company that contributed the creation of an automobile consumer culture that respects customers need and innovation in environmental technology that minimize the environmental impac t of automobile.HMCs success, watched closely worldwide, is a result of continuous and aggressive innovations that have been implemented on behalf of our customers. HMC considers its most important mission to put down the enjoyment of elegance and confidence to its customers, rather than just selling products. Hyundai strives to bring its customers luxury and style. Therefore, Hyundai will continue to stabilize its global management by establishing an effective cooperation system among production bases around the world. HMCs management goal is customer-oriented management and continuous execution of global management.Motivation employeesHMC has human resource management policy with fairness and reasonableness as the guiding principle, ensuring protection of human right and maximizing employees satisfaction at the work place. HMC does not secern against its employees or job applicant on the basis of race, age, religion, sea, nationality, physical characteristic or any other facture for all personal decisions including recruitment, placement, evaluation, compensation, planning, rank or promotion.HMC respect the Universal Declaration of Human Rights and fully comply with related laws and international labor behave norm including the UN Global Compact principles and ILO guidelines. HMC contribute fair compensation for all work at our business sites check to the work guidelines, compensation policy and relevant laws. Also, HMC have created an ethics read that calls for respect of the right of all workers.HMC focus in increasing wellness service for workers in the older age group, implementation of policies to recruit and support female employees and provision of more employment opportunity to non-Korean nationals and wad with check improve working conditions for female workers, HMC offer benefits including monthly days off and 90 day maternity leave. Some operation sites offer childcare centers for working mother as well. HMC ensures employees safety pre- assessment, accident prevention activities, increased investment in safety-related facilities and safety raising. Therefore, HMC pursue a long-term relationship that is mutually beneficial to both employees and management.Desirability as an employeeI would like to work for HMC because HMC is a leading global automaker with competitive edge in product quality, innovation, appealing to the ever-growing emerging markets, as well as the rapidly changing global market. Moreover, it contributes to society, as part of our global corporate responsibility, as well as to secure leadinghip for future growth through environmental management, forging the dash for green growth and the development of world-class eco-friendly vehicles. Actually HMC is an ideal work place, safe and heavy working environment because of its human resource management policy with fairness and reasonableness to ensure human right protection and maximizing employees satisfaction. HMC regards employees as important ass ets for corporate growth so it has established the HMC ethics charter, the employee encipher of conduct, and the Guideline on Ethical Business Practices to help employees make the pay decision in the business conduct. It endeavors to provide all employees with environment training program. HMC is stepping up efforts to ensure fairness in HR decisions, to introduce a rational compensation system, to collaborate with the UN Global Compact for human rights protection, talents development, welfare improvement, and health and safety enhancement.ReferencesMain sources Hyundai Motor Company. on tap(predicate) from Accessed quaternary environ 2011The road to Sustainability-Hyundai. ready(prenominal) from Accessed 8th March 2011The road to sustainability Hyundai. on tap(predicate) from Accessed 8th March 2011Global Crisis Enables Hyundai to Grow Bigger, 04-21-20101937, Available from Accessed 9th March 2011Hyundai Motor joins top 3, in Fortune Korea 500 10-24-20101854. Available fr om Accessed 9th March 2011PART 2 Critically discuss the contention that leading are born not madeLeadership is the process of influencing lot towards achievement of organization goals (Naylor J. (2004) 2nd ed. Management, Harlow. Prentice-Hall)Are Leaders born not made? The answer is both.In todays world, some believe that it is possible to discharge employees to a series of leadership training classes and make them a leader. In fact, they may promote into a position of leadership, but they lack any of the qualities of a true leader. In short, leaders have something within that the others dont have. It is an intangible asset characteristic that cant be explained but can be recognized. This is due to certain in-born talent that can never be cultivated via training (e.g. charismatic, verbal approach to persuasion, ability to influence through persuasion). Most of these qualities essential to existence a leader can be linked outright to ingrown personality traits, the ability t o have a vision and intuition, the earthy intelligence factor, the enjoyment of obsessing with self improvement, mastering the natural talents they were born with. These are all aspects of personality and are extremely difficult to learn. It is true that people can be develop through leadership programs however these trained people will be often pale in affinity with those who have in-born characteristics. Perhaps it varies from person to person. It is really not easy to subside what part of leader abilities is acquired and what part is inborn or natural. non every leader is born and not every person can be groomed to be a leader. It is not just the amount of training an individual receives that creates a leader rather it is the in-born abilities an individual possesses and the willingness to learn (e.g. ability to adapt). The training just accelerates the development of the natural talents. True, those born with leadership abilities have distinct traits that separate those fro m the rest, sometimes even from childhood, but others who are bemoan enough and intelligent enough can be trained to become good leaders.What if Im not a born leader? not being born with the skills to lead doesnt mean you dont have chance to become a leader. There are plenty of positions that get hold of leadership skills that also vacate to being underdeveloped. Those with ingrained leadership qualities dont get to rest on their talents. analogous any skill, if you continually work on improvement and the pursuit of betterion, you will soon find yourself goal. You can only harness your authorisation by continually striving to improve. With the appropriate demonstrated levels of willingness and ability, a person with potential can be molded into a leader through training. Those continue to learn and develop whatever skills they possess training or practice will give the character, vision or presence to be a great leader. But the environment will determine whether potential lead ers can develop their talents. All of us are born with one trait in common potential. There is much potential of course, but the key in dealing with potential is the stimulus and environment that brings it out. So it is seen that leadership characteristics are most likely inherent and can be developed in the right environment.ReferencesLeaders Are Born Not Made. Available from Accessed 4th Feb 2011Leaders Are Born Not Made. Available from Accessed 4th Feb 2011Leadership. Available from . Accessed 4th Feb 2011Leaders Are Born Not Made. Available from Accessed 4th Feb 2011PART 3 Critically discuss the pursuit statementThe best way to ensure constant innovation is to engross childly, newly-graduated candidates with an interest in innovation and set them up in a think-tank, separate from the main organization so they can develop new ideas unimpeded by the lively business.If you were an employer, what kind of people would you want to make? Well, the perfect candidate that meet every aspect of the job commentary of course. Employers dwell, People who have years of experience may either require a salary too high, may not have experience of the newest technologies whereas recent graduates dont have important years of experience, professional knowledge, or highly developed skills but employers realize that if they hire the most qualified and equal talent from outstanding universities and continue to educate and mold recent college graduates to fits their needs, they will provide enough quality clay to work with to create that perfect mold.Knowledge is the prerequisite for innovation and new technology distributes knowledge. Todays young employees have grown up with the latest technology and they often have a quicker grasp of the newest technical knowledge than older candidates. Many people have a bias that young people are better at innovation, coming out of school fully prepared, multi-skilled, capable of creative thought, much new ideas. The harsh real ity is that in the technology world, companies prefer to hire young, inexperienced engineers because hiring fresh graduate with no skills takes less funds and they will rapidly learn the latest coding methods and techniques. As well, the older candidates likely have family and need to leave by 6 pm, whereas the young can pull all-nighters.In addition, companies nowadays are increasingly working on an international level in financial jobs and careers in telecommunications, so newly-graduated that study abroad will often have a want global perspective. Their multi-cultural learning and experience, being bilingual is valued in many fields, especially in existing business innovation.However, the statement that the best way to ensure constant innovation is to hire young, newly-graduated candidates with an interest in innovation so they can develop new ideas unimpeded by the existing business is not really true in individual case. near leaders and managers often respect and listen to e lders ideas in the company because they know well about organization structure, business strategy, mission, related stakeholders as customers, partners and they can take full advantage of their experience, knowledge by contributing mulish ideas to constant innovation in products, processe