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Kia Motors Competitive Analysis

   

Added on  2020-05-16

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Running head: SUSTAINABLE BUSINESS PRACTICES AND STRATEGIESSustainable Business Practices and StrategiesName of the StudentName of the UniversityAuthor Note
Kia Motors Competitive Analysis_1

1SUSTAINABLE BUSINESS PRACTICES AND STRATEGIESKIA Motor Corporation has its headquarters in Seoul, which is the second largestmanufacturer of automobiles in South Korea. The sales of the company have been estimated tobe 3.3 million in the year 2015 and Hyundai is one of the major shareholders who has a totalshare of 34 percent in the company. The stakeholders of the company are a group of people whocreates an impact on the sale of the products in a direct or in an indirect manner (Gupta &Sharma, 2014). The stakeholders help in putting pressure on the company so that they canperform in a better manner and increase the output of the company. The decisions that are takenup by the stakeholders helps in influencing the decision of the company as well, as they act in thebest interest of the company. The stakeholder of Kia motors is the investors, employees,suppliers and the customers (Chen, Feldmann & Tang, 2015).One of the primary stakeholders of the company is the investors who look after the rate ofprofit of the organization. The investors are the primary stakeholders of the company, as it helpsthem in transforming the share of dividends that are earned on the shares and keep the operationcost of the company at a minimum level. This allows Kia Motors to maintain a higher rate ofprofit level and minimize the operating cost as well (Zorkociova, Simorova & Sasikova, 2014). The employees of Kia motors are provided with equal opportunities so that they can workin an effective manner. Most of the employees are recruited without being discriminated on theirnationality, gender, religion and race. They are taken in to the process of decision making by thecompany so that the management can make better decisions by consulting with the employees.This helps the employees to get motivated, which helps them in giving better levels ofproductivity (Dehning et al., 2017). The organization also provides its employees with jobsecurity so that the employees can work in an efficient manner. This helps the organization inincreasing its level of productivity as well. One of the major concerns of the company is that they
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2SUSTAINABLE BUSINESS PRACTICES AND STRATEGIESprovide low wages to the employees, which may affect them psychologically. The employeesmay feel de-motivated within the organization, as they are not rewarded in a proper manner forthe services that they are providing within the organization. This is one of the major issues that ispresent within the organization that needs to be solved in a proper manner so that the employeescan remain motivated (Barron, Pereda & Stacey, 2017). The suppliers of the company are those who will provide the raw materials so that it canbe processed and supplied in the market for the customers to purchase it. The suppliers try tocontrol the prices of the raw materials, which may affect the operating cost of the Kia motors, asthe high prices may lead them to increase the prices when the product is available in the market.The increase in the prices of the products will help the suppliers in getting a better rate of returnas well (Soo, 2014). The customers are important stakeholders for the company, as it helps them in selling theproducts in the market. The feedbacks of the customers will be considered by the company whilemaking any changes so that the level of comfort can be increased in the new products (Rhee,Bohnsack & Lee, 2017). One of the major competitors of Kia motors is Toyota, as they also provide new andbetter products automobiles in the market at a competitive price. This has helped Toyota inattracting a large number of customers towards them. Toyota is able to provide the products at acheaper rate because they maintain a good relationship with the suppliers, as the raw materialsare purchased by them at a cheaper cost. The company also takes in to consideration that theemployees are remunerated in a proper manner so that they can be an integral part of theorganization (Soo, 2014). The employees of Toyota are provided with a fair amount of wages
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