Global Strategic Management Report: Hyundai's Merger and Strategies

This report delves into the global strategic management of Hyundai, examining key aspects such as leadership styles, group dynamics within the organization, and the impact of merger and acquisition strategies. It analyzes the application of democratic leadership, emphasizing shared responsibility and ethical considerations in decision-making. The report explores the company's initial phase strategies, focusing on the £9000 car model designed for families, along with the competitive landscape and marketing adjustments. Furthermore, it investigates post-merger strategies, differentiating between competitive and corporate level strategies. The analysis includes Hyundai's acquisition of Kia, highlighting the resulting economies of scale and market expansion, and the challenges faced in the Korean vehicle industry. The report concludes by emphasizing the effectiveness of the applied strategies and the importance of adapting to the dynamic global market.

GLOBAL
STRATEGIC
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1. Analysis of leadership and group dynamics for team........................................................1
2. Analysis of first phase strategies........................................................................................2
3. Analysis of post merger strategies......................................................................................2
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................5

INTRODUCTION
Global strategic management is defined in business terms and covers three areas like
multinational, global and international strategies (Lasserre, 2017). Purpose of the report is
regarding to company and products. Hyundai company design low cost cars according to family
purpose and set prices. From the present report covers leadership and group dynamics, analysis
strategy of merger and corporate level strategies.
MAIN BODY
1. Analysis of leadership and group dynamics for team
Leadership style is a method that are applied by leader into the company for providing
direction and implement plans for motivate to people. For our group select leadership style is
democratic leadership style because in this style the leader takes decision according to each team
member that is input. It is the most effective leadership style because in this style include lower
level employees for giving authority according to their responsibility. When these authority
giving to group member so they are taking wisely decision that are based on future positions.
This style commonly effected to decision making process. In my group decision are making in
democratic manner because there is power and authority distribute to among members of group.
In my group to shared there responsibility and accountability of every group member
participate in decision making and prove their position according to their rank. They are
responsible to for their actions according to their responsibility. There is shared responsibility
and accountability in group according to their skills and interest and as well as their
consideration (Goetsch and Davis, 2014). In my group adopt distributive leadership approach
because it is helping to work in effective way. We are dividing responsibility according to their
department and they can handle it in effective manner. But they are responsible for about range
£9000 of car. Whole group of my team taking decision together according to customer basis
because these are helping to decision making process as well as prepare to strategy. In my group
have occur ethical dilemmas during to decision making process. I will solve it through voting
systems and also modify decision making process because I am giving chance to every person
for participation. So it will create some times and try to reduce by me.
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2. Analysis of first phase strategies
According to middle family cars decided range is £9000 and it is 5 seater and good
capacity provided in low range that are afforded by families. There is decided cost for human
resources is £5000 , cost for employees is £3000 , cost for auto mechanic is £4000 and cost for
advertising is £2000. In there phase applying low strategies to attract family type customers
because there is design to car family type peoples. There are different types of family and every
one not affording in this range of car so low range decide according to car. From the competitors
actions there is learn their pricing strategy, innovation techniques and selling strategy to attract
customer and Marketing decisions are adjusted according market situation because of in
economic industry according to time situations are change frequently and their actions also
change. So marketing decisions taking on the basis of situations (Rugman and Verbeke, 2017).
And other decisions are adjusted on the behalf of competitor and competitive environment. In
later decide strategy is also low because it is affordable to middle class families and reason is
many families wants to purchase car but they don't so for this applying low strategy.
3. Analysis of post merger strategies
Competitive level strategies
It is a long term plan that organised for company for achieving competitive advantages
over its competitors after searching strengths and weaknesses. There is different types of
competitive level strategies are as follows -
Differentiation – This strategy aims at processing a competitive advantages by way of making
available unique products and services (Collings, 2014).
Cost leadership – The strategy intent of cost leadership for achieving low cost producer in
compare to their competitors.
Focus – In this strategy focus on cost focus and differentiation focus for particular product and
effective business line. In focus strategy, cost focus aim is target to segment and take advatages
from competitors.
Corporate level strategies
This strategy adopt by business owners to targeted corporate level for acquiring position
in market as success.
Growth strategy – In this strategy acquire growth for success in market in key matrices level
designed according to sales revenues.
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Concentration strategy – In this strategy company producing product line with the help of real
growth potentials (Cerdin and Brewster, 2014).
Diversification strategy – When company achieving all success and reach to top growth that time
organisation think for expand business on broad level such as diverse market environments.
Stability strategy – This strategy mostly adopted by successful organization that operating
reasonable environment according to predication (Stead and Stead, 2014).
Hyundai, in acquiring Kia, enhanced its forceful power in both family unit and overall markets,
achieving economies of scale and expansion and strengthening its overall market start. This case
takes a gander at one of the greatest mergers and acquisitions (M&As) in the Korean vehicle. In
progressing years, progressively vital competition and reduced advantages, in view of nearby and
overall oversupplies and what's more higher enhancement costs, have driven the vehicle business
to take part in family and widespread mergers and key facilitated exertion (Cavusgil and Knight,
2015). grandstand starting late: the obtainment of Kia Motors (Kia) by Hyundai Motors
(Hyundai).
This is the case that defines the impact of mergers in decision making and strategic
planning in Hyundai. The case depicts the establishment conditions of the getting, the mix shapes
after the attainment, and the necessities for Kia Motors to institutionalize the load up inside a
brief time period. Everything considered, Hyundai/Kia went up against a couple of crushing
challenges, among them the coordinated effort of Renault and Samsung Motors, the dim family
unit treatment of Daewoo Motors, and M&As happening among best motor associations around
the globe. Further, it traces both the current state of the family Korean vehicle industry and
continuous examples in the overall vehicle promote. This relevant examination requests
understudies to separate the strategy from post-getting remaking and the consequent helpful
vitality impacts, inviting them to altogether consider the frameworks by which Hyundai/Kia may
thrive in the overall vehicle publicize (Al Ariss, Cascio and Paauwe, 2014).
CONCLUSION
There is applying autocratic leadership style adopted by group because in decision
making it is influence in effective way. There are using most important ideas are applying
effective competitive and corporate strategy that are helping to merger. There is using different
style of decision because most of the companies giving authorities to individual person but in
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that case using all people authority and set goals according to future. If any responsibility come
so each member are responsible for their own car.
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REFERENCES
Books and Journals
Lasserre, P., 2017. Global strategic management. Macmillan International Higher Education.
Goetsch, D. L. and Davis, S. B., 2014. Quality management for organizational excellence. Upper
Saddle River, NJ: pearson.
Rugman, A. and Verbeke, A., 2017. Global corporate strategy and trade policy. Routledge.
Collings, D. G., 2014. Integrating global mobility and global talent management: Exploring the
challenges and strategic opportunities. Journal of World Business. 49(2). pp.253-261.
Stead, J. G. and Stead, W. E., 2014. Sustainable strategic management. Routledge.
Cavusgil, S. T. and Knight, G., 2015. The born global firm: An entrepreneurial and capabilities
perspective on early and rapid internationalization. Journal of International Business
Studies. 46(1). pp.3-16.
Cerdin, J. L. and Brewster, C., 2014. Talent management and expatriation: Bridging two streams
of research and practice. Journal of World Business. 49(2). pp.245-252.
Al Ariss, A., Cascio, W. F. and Paauwe, J., 2014. Talent management: Current theories and
future research directions. Journal of World Business. 49(2). pp.173-179.
Roh, J., Hong, P. and Min, H., 2014. Implementation of a responsive supply chain strategy in
global complexity: The case of manufacturing firms. International Journal of
Production Economics. 147. pp.198-210.
Online
Democractic leadership style. 2018. [Online]. Avilable through: <https://www.leadership-
toolbox.com/democratic-leadership-style.html>
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