MGT602 Report: Analyzing Decision Making Processes at Hyundai Motors

This report provides an analysis of the decision-making process at Hyundai Motors, focusing on the application of various tools and techniques. The report identifies the decision-making process as an integral part of modern management, specifically within the context of Hyundai Motors, and highlights the use of analytical decision-making, primarily drawing data from secondary sources. It examines the CEO's design-driven decision-making approach, emphasizing the influence of the CEO's beliefs, capabilities, and objectives. The report also details the steps involved in the decision-making process, including problem recognition, information search, alternative evaluation, purchase decisions, and post-purchase evaluation. Furthermore, it explores the use of market research, cost-benefit analysis, and SWOT analysis as decision-making tools, analyzing their roles in improving marketing strategies, evaluating brand strength, and identifying opportunities and threats within the automotive industry. The report draws on the provided assignment brief for the MGT602 course, focusing on the selection and evaluation of decision-making tools and the analysis of decision-making systems and techniques within a business context.

Running Head: Business Decision
Decision Making Process
Name of the Student
Name of the University
Author’s Note

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Company chosen- Hyundai Motors
About the Company
Hyundai Motors is one of the Second largest car owning company that is recognized
throughout the world. The soul company was founded in the year 1967.There is a tremendous
gain in popularity by the motor car company as it offer a combination of low price vehicle but
with high-reliability. The following report will be based on the analytics the will help to identify
the recent trends in decision making process for the company (Kim et al., 2015).
Trends identified decision making
The decision making process can be defined as the integrated part of the modern
management. The decision making process is the primary function that every manager needs to
make for appropriate functioning of the activities that are carried by the organisation. The
decision making process that has been identified for the particular organisation that is Hyundai
motors is through the process of analytical decision making process. For the purpose of decision
making the source of data that is used is
Secondary source of data. The secondary source of
data is based on the information that is collected from the journals or from the data that is
collected from someone else other than the user. This particular source of information contains
graphical presentation, quotes or pictures. It also includes fact from the textbooks, journals or
encyclopedia (RodríGuez, MartıNez & Herrera, 2013).
The decision making process according to the CEO of the automobile industry it is
identified as
Deign Driven Decision making for the Hyundai industry. In the journal it is
mentioned by Brousseau, Driver, Hourihan, and Larsson (2006) that the decision making process
for any information depends on the opinion that is generated by the leader. The approach of the

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decision makers tends to fall in two approach that I satisfier and maximizer. A satisfier collects
less of information as compared to the amount of it requirement before it needed to act. Whereas
maximizer prefers to collect a lot of information before acting on the business function. For an
instant it is required to take single-focus decision maker that only takes one course of action. The
style of decision making can be decisive, flexible, hierarchic and integrative (Muhammad &
Ridwan, 2015).
The CEO has identified the recent trend of decision making which is based on his or her
beliefs, specialized capabilities and purposes. For an instant the CEO will definitely concentrate
in improving the profit and create ways to reduce loses of the company, therefore the decision
making point of CEO will focus on making decision that is cost oriented. As a contrast if the
CEO is focusing on sales then the particular emphasizes will be based on that. The trend of
making decision on the finances of the company that is the finances driven decision making
which is easy to make because the decision is carefully and intellectually analyzed with the
collection of previous information (Berisha, G., Pula, J. S., & Krasniqi, B. (2018).
Therefore if the initial decision making falls into integrative and flexible category, the
design for decision making are often decisive towards their approach which is effective, fat,
direct and firm. With reference to Euisun Chung who initiated his approach with the medium of
external resources and appointed Peter Schreyer as Chief Design Officer (CDO). The decision
for the automobile company is design driven and in 2009 Euisun Chung became the vice
chairman for Hyundai Motor Company.
In 2009, Euisun Chung who is the vice chairman of Hyundai Motors had continued to
make design-drive decision with the intention to create a difference in the automobile market. He

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had approached previously to design with the expert and consult with the promoting executive
design director. Secondly with the decision making tool in
Decision making process (support decision making)

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1.Problem recognition
2.Information search
3.Alternative evaluation
4.Purchase decision
5.Post-purchase evaluation
Decision making process of a company is the process to analyze the choice of making
and identifying the decision that is gathered by the researchers of the organisation with an
intention to facilitate a smooth functioning of the organisation. The aim of following the steps in
the decision making process can assist to take decision more deliberately on the organizing factor
with the source of information and having the choice of alternative. As a result this approach
increases the chance of our choice and satisfying alternative possible. The decision making and
problem saving situations and the alternative, creating choices and following them with the
necessary action. The entire process is depended upon the availability for the right people at the
right time. The process can be on a short term process and mental reflection is essentially
instantaneous (Anderson et al., 2015).
The steps in Decision Making Process

5DECISION MAKING PROCESS
Decision Making ProcessStep 1 Problem recognition
The recognition of the problem is very important as they are the main
source which will safeguard the company from facing problems,
either in stock or in the revenue system. Problem recognition results
in recognizing a substantial difference between the actual product
and the want that he or she wants to make a purchase.Step 2 Information search
The researching of information is very crucial as they are the aspect
of the automobile company where proper research of the target
audience as well as studying about the competitive environment is
important to make finalized decision.Step 3 Alternative evaluation
The alternative evaluation of the third stage of the decision making
process defines about the evaluation which the employee of the
company would make in case of products or assimilation of the car
parts. Evaluation is on the basis of product or brand that lies on the
opinion for a scale of attributes which holds the ability to deliver the
benefit that the consumer demands.Step 4 Purchase decision
This particular stage of the decision making process that is generated
for a particular need, opinion and selecting a particular product or
brand. There is a belief of the marketers that the purchase decision is
like a minor spot equal to buying toothpaste, while the other aspect
are major like purchasing a house.Step 5 Post-purchase evaluation
Post-purchase evaluation can be defined as the final stage of the
decision making procedure. In this stage the consumer makes the
decision process when he or she assesses if he is satisfied with the
product or not. Purchasing decision becomes very crucial at this stage
because this is the final point of buying taking into consideration
about the quality and the quantity that the brand is offering in term,
with the price.

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Three decision making tool and technology (will the decision support using
multiple methods)
There are various tools and technique that the business organisation can take to make a
decision related to the company. Hence, on the other hand it is important to note that there are
various tools that may be put into practice by the authority and find the best suited tool for the
organisation. If one tool does not work then the entrepreneur can switch to another tool. All the
factors needs to be related and considered before using a tool. There can be an instance where
there are several techniques that would combine using two or three more technique. The bets
tools that would suit the organization I taking decision are:
Market Research
The market research is an important tool significantly when the organization gather
information before making a decision. It will include the analysis of the current customer,
competition with the rival firm and state of the market. It is considered as a strategic tool when
most of the entrepreneur depends on and take the right decision. Market research comprise if the
collection of the data from various sources such as optimizing the brand standard that helps in
generating new ideas to inculcate improvement for organization’s brand. Secondly the tool of
decision making can help in evaluating organization’s brand strength which can be faced against
the competitors. On the other hand the decision making tool ill identify the characteristics that
are associated with the brand (Ho et al., 2015).
The decision making tool ill facilitate in the following function of the organization:
To improve the content of the marketing strategy where it is considered to be the
inbound of the marketing strategy. The language which is carried out should embody the

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customer and assist in the understanding of customers like and dislike through the medium of
social media and other channels that cater to the requirement of the content.
Evaluation of the business is very important because it brings in the maintenance
of its position in the market. The core competence and weakness of the rival firm can be
analyzed and hence the information can be used to improve company’s product and service (Hair
et al., 2015).
Cost-Benefit Analysis
With the assistance of the Cost-Benefit Analysis the authority can make decision related
to take time in finalizing the time to assess the cost that are involved in the finances and
maintaining the journal and ledger which holds the cost. Entrepreneurs will finalize the decision
that will have greater benefit that the business and gain from the decision. The aim of the
business will be to concentrate on the revenue system that will bring in more o profit in the
organisation. The only objective of the company will be based on the presence of the overall net
profit of the company. This is an important aspect of the business owners who builds the revenue
for the company and caters to all the requirement which is comprised in making profit, and the
decisions that are related to the analysis system (Annema, Mouter & Razaei, 2015).
The analysis of the company is done on a forecast basis where the table for cost and
benefit is done separately and the challenges and shortcoming are predicted. The prediction of
the company will help the business to avoid the shortcomings. A cost-benefit analysis is a
methodology that adds up the benefits of the business, which also includes the investment for the
course of action and lastly these are compared with the associated cost. It further helps to take up
the decision in accordance with the strength and weakness of the preserved savings.

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SWOT Analysis
The SWOT Analysis of the company Hyundai is based on the strategic planning and evaluation
that caters to make decision. The implementation of SWOT Analysis will assist the business to
sort out the strength, weakness, opportunity and threat. The strength of the business is depended
on the main components and through the process of previous year report. It builds the company
to have a strong name, unique technology and maintained balance sheet.
The weakness of the company can be analyzed through the external factor that could give the
business a competitive advantage. For an instant if there is a deduction in a tariff on a car
manufacturer that is exported for car into a new market and increase the market share (Yuan,
2013).
Threat are referred to be favorable that has the potential to harm the organisation. In some other
company or in case of the Hyundai the production may get destroyed or reduce the yield the
production of cars. Other common things that may be related to threat.
The opportunity of the organisation is based on the innovative factors that will lead to
manufacture of the car or the various part of the manufacturing unit. The innovation of the
company is depended on the manufacturing unit that improves the performance and competitive
advantage in the competitive environment. External threat are anything that the business are
based on the outside environment and the adverse effect on the observation and performance till
the achievement of its goal. Identifying the target audience is also important to know the market
and make the manufacturing of cars and recognized the peculiarities of the behavior of the local

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and potential customers. The identification of the product and sharpening them is a great
opportunity for the company.
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