Hyundai: Leading the way in the global car industry – International Business ManagementHuman Computer Interaction

International Business Management:

The global car industry is one of the largest and most internationalized business sectors. There are 17 major global car companies, each of which produces over 1 million cars a year. The Hyundai Motor Company (Hyundai) is South Korea’s number one car maker and the 10th largest in the world. It sells vehicles in over 190 countries producing about a dozen car and minivan models, plus trucks, buses and other commercial vehicles. Popular exported models in the United States are the Accent and Sonata, while exports to Europe and Asia include the GRT and Equus. During the global recession in 2008, while most car companies suffered steep sales declines, Hyundai managed to earn
US$1.3 billion – putting it among the best performers in the global car industry.

Questions:

1. What are the roles of comparative and competitive advantages in Hyundai’s success? Illustrate your answers by providing specific examples of natural and acquired advantages that Hyundai employs to succeed in the global car industry.

2. In terms of factor proportions theory, what abundant factors does Hyundai leverage in its worldwide operations? Provide examples and explain how Hyundai exemplifies the theory.

3. Discuss Hyundai and its position in the global car industry in terms of Porter’s Diamond model. What is the role of firm strategy, structure and rivalry, factor conditions, demand conditions and related and supporting industries to Hyundai’s international success?

4. How did the Korean government intervene and what was the motive behind such intervention? Also, explain the implications of such intervention for Hyundai