Individual MNC Report
Introduction Hyundai Corporation was found in 1976 in South Korea, and it has now become a one of leading companies all over the world. Hyundai Corp. is a general trading company providing international trade and distribution services with such a variety of products as steel, heavy machinery, ships, industrial plants, automobiles, electronic and electrical equipments, chemical products and basic commodities. Of all various sectors in the Corporation, Hyundai Motor Company is most well known out to the world, and recently its international success and expansion has been quite noticeable and become a model to other companies. Especially, in the USA Hyundai and Kia, which is Hyundai’s sister company, gained enormous market share and recognition during the Toyota’s crisis. This paper will be focused mostly on Hyundai Motor Company out of many other sectors of Hyundai Corp., and analyzed in terms of Ethics and International expansion strategy. At the end, the author’s argument regarding his view of the firm is contained.
Ethics Hyundai Group started ethic management in 2004 to be self-sustainable. It was meant to pursue mutual benefit amongst customers, business partners and etc. by prohibiting moral hazard of employees and planting transparency, responsibility, and honesty to the work field. Thus, the company established ethical management department inside the company and also organized the principles of business conduct, the self-review questionnaire, and the code of conduct. The self-review questionnaire is supposed to pop up at every worker’s booting screen of personnel computer when logging into the intranet every day of first week so that they could be mindful of their active participation to the ethic management in work. Also, all the workers in the company are supposed to the pledge to abide by the various ethics codes, and if anyone violates they are to be disciplined according to a proper examination by the ethics management department.
In 2008, on the other hand, Hyundai Motor vowed that “it will pursue ‘Socially Responsible Management’ business schemes based on trust, with shareholders, customers, employees and even regional communities”, promising to focus on main three categories trust management, environmentally-friendly management and social contribution. (Yoo-Chul, Korea times) One good example is Hyundai Motor India Foundation (HMIF) in 2011. The HMIF started a project named ‘Go Green’ in Tamil Nadu, and promoted “environmentally friendly product”. (drivespark.com) They increased the green cover and provided a safe drinking water, cleanliness, hygiene conditions as well as 450 benches and 10 bore wells for the government school.
Besides, on April of 2008, Hyundai Motor started their first environmental project as the company’s social contribution program that they had not ever done before. They began a five year project, named ‘Hyundai Green Zone’, with the Korean Federation for Environmental Movement to make 50 km2 of a hungry soil in China into a grass land by 2012. The project was meant to stop the repetitive dust storm in Beijing and to bar desertification so there ecosystem could remain healthy. In the U.S, Hyundai had schemed to aid Chevron Texaco providing the construction of up to 6 hydrogen fuel stations in California in 2004. They promised to provide up to 32 Tucson fuel cell vehicles.
International expansion strategy According to Myung-Kee in his case study, Hyundai began to make strategies to increase access to overseas market since 1980s. One of strategies for the internationalization the company took was to develop joint ventures like advanced foreign auto makers that could make the company develop a car able to survive in the world market and, even forward, able to bit the other competitive models. It is not too much to say that both the advanced product design