Business Analysis Report: Impact of Change on Kia Motors' Strategy

This report provides a comprehensive business analysis of Kia Motors, focusing on the drivers and impact of change on its organizational strategy, operations, and culture. The introduction highlights the importance of adapting to change in the business environment, particularly in the context of rapid technological advancements and globalization. The main content delves into various drivers of change, including technology, government regulations, globalization, and media, and their influence on Kia Motors' strategic decisions. The report includes case studies, PESTLE and Porter’s Five Forces analyses, and discussions on the impact of change on strategy, operations, and culture. It also explores how change affects leadership, individual, and team behavior, along with appropriate models for processing change efficiently. Finally, the report presents a comprehensive plan for organizational change in terms of strategy, operation, and culture, addressing the current needs of Kia Motors in the Vietnamese market. The analysis covers topics like technological innovation, government policies, globalization, and media influence, as well as internal factors like culture and leadership, to provide a holistic understanding of the challenges and opportunities facing Kia Motors.

Table of Contents
INTRODUCTION.....................................................................................................................................3
MAIN CONTENT.....................................................................................................................................4
I. Driver and impact of change and how it affects organizational strategy..................................4
1. Technology.................................................................................................................................4
2. Government regulation.............................................................................................................4
3. Globalization..............................................................................................................................5
4. Media..........................................................................................................................................5
II. Organization case studies..........................................................................................................6
III. Driver of change.........................................................................................................................8
1. PESTLE......................................................................................................................................8
2. PORTER’s FIVE FORCES......................................................................................................9
3. CULTURE..................................................................................................................................9
4. ECO..........................................................................................................................................10
5. SWOT.......................................................................................................................................11
IV. The impact of change and the effects it has on the organization’s strategy and operations
and culture...........................................................................................................................................14
1. Strategy.....................................................................................................................................14
 Competiveness..........................................................................................................................14
 Structure...................................................................................................................................14
 Business....................................................................................................................................14
2. Operation..................................................................................................................................14
3. Culture......................................................................................................................................15
V. How change will have affected leadership, individuals and team behavior............................16
1. Loss Resources.........................................................................................................................16
2. Location....................................................................................................................................16
3. Managing Commitment...........................................................................................................17
 Evaluate how the impact of the change was minimized:.......................................................17
VI. Appropriate models to process change efficiently.................................................................19
1. 7S model...................................................................................................................................19
2. Maslow’s hierarchy.................................................................................................................22
VII. Comprehensive plan with for the organization change in term of strategy, operation and
culture for current need......................................................................................................................26
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1. Strategy.....................................................................................................................................26
2. Operation..................................................................................................................................28
3. Culture......................................................................................................................................28
CONCLUSION........................................................................................................................................29
REFERENCES........................................................................................................................................30
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INTRODUCTION
As we all know, catching up with changes in the business is the key to addressing
the needs of the business. A rush of progress is coming will make the way we work
almost unrecognizable with today's business leaders. In the quick advancing innovation
period, business models, demographics or even attitudes in the workplace-all
simultaneous changes are changing ceaselessly. Organizations from start-ups and online
businesses to pioneers in all industries will encounter effect is far-reaching and changing
ways.
In this assignment, I am training to become a business analyst in a large multinational
organization. My first task was to analyze a big organization namely Kia Motor. Then,
that change is a necessary part of life means businesses must embrace it without excuse.
It is important to understand that the barriers that make it difficult to implement change
are usually the reasons behind the resistance to change. A leader always has the idea that
a certain change needs to be implemented to enable the organization to accomplish set
strategic goals. But no matter how necessary the change is, it will be difficult for an
organization to implement the planned strategic change successfully if barriers to change
do exists. In a case study, Kia is a company that has a very good background but they
lacked success when entering the Vietnamese market. This part will determine how
barriers to change influence leadership decision-making. To demonstrate that change is
always accompanied by difficulties that any organization must undergo.
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MAIN CONTENT
I. Driver and impact of change and how it affects organizational strategy
 Definition of drivers
Business drivers are the factors that spur growth in the areas most important
to an enterprise’s success. Such factors might include economic and market
conditions, key players, critical information, assets, and processes. It is
important to identify business drivers, regardless of whether they are within the
control of a business or not. (Prosci, 2012)
1. Technology
Information technology (IT) is dramatically changing the business
landscape. Because the equipment is one of the direct participants in the
production process, the modernization of machinery and equipment or
technological innovation is very important for every business. An industrial
production enterprise that wants to survive and develop must develop its own
technological innovation plan. Scientific and technological advances and
technological innovations will allow to improve product quality, create new
products, diversify products, increase productivity, increase labor productivity,
and use rationally and economically. materials ... Therefore, it will increase
competitiveness, expand markets, promote rapid growth and improve
production and business efficiency. Kia Motor Company knows that, so the
company always chooses to strive for scientific and technological progress,
technological innovation is the right direction for the company in the context of
the potential automotive industry.
2. Government regulation
Vietnam is always a potential market that auto companies aim to develop.
Kia Motor also always puts the criteria for improvement and product
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diversification to the forefront. In addition, Kia also has a concern that will
make it difficult for the company to develop that is the tax and the laws of the
Vietnamese government. Every year, the Vietnamese government keeps
revising policies and taxes, Kia Motor keeps updating and complying, but in
recent years, the increase in import tax of cars has made Kia reduce part of the
revenue.
3. Globalization
In the context of international economic integration, the process of
globalization has become an objective trend that affects all aspects of social
life such as culture and economy, etc. , is both a necessary outcome for all
social development processes. Kia always tries to follow and catch up with the
pace of globalization in the Vietnam market in particular and the world market
in general.
4. Media
It can be said that Social Media is a great way for Kia Motor Company to
increase brand awareness to customers, the company can also create a
playground for the participation of customers as well as strengthen their
sentiments. for Kia Motor products and services. In addition to the positive
factors mentioned above, Social Media is also a giant "trap", because it can
cost the mountain company money to show and connect the community to
participate in marketing campaigns. Kia's or where Kia is most vulnerable to
being smeared by rivals.
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II. Organization case studies
Kia, Korea's oldest automobile manufacturing company was founded in 1944
as Kyungsung Precision Industry, specializing in manufacturing steel pipes and
bicycles. In 1952, Kyungsung Precision Industry was officially changed to Kia
and switched to manufacturing motorcycles, trucks and cars. In 1997, Kia went
bankrupt due to the Asian financial crisis and was acquired by a rival company,
Hyundai Motor Company, to establish Hyundai Hyundai Corporation. (33.88%
stake) In 2007, THACO and KIA signed a cooperation agreement.
The THACO Kia vehicle range offers a wide variety of segments: (KiaMotor,
2019)
 Segment A: Kia New Morning
 Segment B: Kia Rio
 Segment C: Kia Forte, Kia Cerato
 Segment D: Kia Optima, Kia Cadenza
 Segment SUV: Kia New Carens, Kia Carnival, Kia Sedona
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 Segment MPV: Kia Sorento.
The strategy of Kia Motor in Vietnam market
 Reasonable price
 Focus on design, variety of models and segments.
 Target customers in urban or home
The scenario of Kia Motor in Vietnam market
Kia's growth rate has gradually increased in recent years and reached nearly
30,000 units in 2018. (AnnualReportKia, 2017)
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
21,310
33,014
22,136
28,986 Sales
Doanh Số
2015 2016 2017 2018
In 2016, Kia Morning made a breakthrough with a difference of more than
6,000 units for the same period, Kia Cerato (about 2,000 units).
With a total sales of 28,986 in 2018, KIA is the fourth best-selling car
company in the Vietnamese market, contributing greatly to the growth of KIA
Morning, KIA Cerato models, these two models are in the top 10 models a best
seller in Vietnam. In particular, KIA Cerato suddenly surpassed KIA Morning to
become the highest-selling model of KIA Vietnam with 11,678 cars in 2018.
III. Driver of change
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1. PESTLE
 Political
In recent years, the Vietnamese market has increasingly attracted
FDI from the outside, in order to facilitate investment and state
development, there have been new policies to attract the investment of large
companies, especially because tax incentives. As a result, the amount of
FDI in recent years has increased and accounted for 20% of the national
GDP. Policies on labor law, personal income tax, and businesses also turn
and improve to suit the transition to a market economy like in Vietnam.
Particularly in certain industries subject to restrictions, the cost of importing
cars from the outside is quite expensive, in large part because of the state
tax. Kia is significantly affected by the fact that the current Kia Sportage
and Kia Soul cannot be mass produced in Vietnam.
 Economy
Vietnam has always created and maintained relationships with
neighboring ASEAN countries to facilitate free trade between countries. In
recent years, Vietnam market is receiving a relatively stable investment
from ASEAN countries such as Thailand and Phillip. Other countries such
as Korean and SAMSUNG (nearly 80% of SAMSUNG products are
manufactured in Vietnam, LOTTE, HYUNDAI, etc.) with famous
companies such as HONDA, TOYOTA. Unilever has a well-known and
familiar name. According to the people, some people think that the first
step at Unilever will create a premise for future careers. The most recent
event is Trade War between China and USA has created many
opportunities for Vietnam. He jumped to invest in Vietnam to avoid and
reduce taxes when exporting to the US market.
 Social
Over the past 5 years, the change of Vietnamese society has become
more and more pronounced. People with higher standards on human rights,
social issues, social networks began to become more popular and quickly
became a popular tool for everyone. Kia Motor has taken advantage and
taken that as its strong point, for more than 10 years Kia has continuously
accompanied as a sponsor of FIFA competitions, in addition Kia is
cooperating with RIOT to organize the LEC professional tournament
(League of legend European Champion) to promote the brand, the LEC
tournament brings together a lot of players as well as a huge audience that
is broadcast live on YouTube channels and social networks Facebook,
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Twitter. The step towards sponsoring E sport is a different step for
competitors.
 Technology
In the current technology competition, especially technology-
focused industries such as information technology and automobiles. Then a
breakthrough in technology will bring a great competitive advantage. In the
future, Kia Motor is developing the R.E.A.D System (Real-time Emotion
Adaptive Driving System) and V-Touch (Virtual Touch). READ System is
the system that recognizes the face and voice then through memorizing,
assessing the actions and responses of the owner in the past under the
control of the AI will store and record the statistics, situation as well as data
for the whole distance. In addition, R.E.A.D System also allows to adjust
brightness, sound, windows, air conditioning and other features directly by
voice. V-Touch is a system that controls the operation of the vehicle by
touching it directly on the screen, the screen shows all parameters and many
other functions (slope, speed, fuel volume, outside temperature, light).
(AnnalysReportKia, 2018)
2. PORTER’s FIVE FORCES
 Supplier power
Manufacturing: THACO partners
 Customer power:
 Customers demand more and more Kia's quality, high requirements
on environment-friendly, engine as well as new design, better
design, competitive price with the market.
 Kia Motor's customers are mostly young and mostly concentrated in
urban areas.
 Threat of Substitution
 In Vietnam, the majority of the population is still using large
numbers of motorbikes, buses, and trains. The number of cars on the
market is still small, with an average of 33 car owners per 1,000
cars.
 Rivals
 Competitors of Kia Motor in the Vietnam market such as Hyundai,
Toyota, Mercedes, Suzuki, Ford, Honda, Isuzu, Mitsubishi, BMW,
Vinfast.
 The opponent's actions greatly influence the organization's benefits
from technological innovation to market campaigns
3. CULTURE
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Culture in Kia:
Kia culture is a blend of Vietnamese and Korean cultures. Korean
culture focuses on job performance but less attention to people so many
conflicts have occurred. There is a saying in Korea that "a good employee is
the one who leaves the latest", which not only reduces work efficiency but also
loses credibility and relationships with employees
Culture in VN:
Culture in the work of Vietnamese people is evaluated as enthusiastic,
doing well in both individual and teamwork but it is easy to lose focus, and
sometime it requires supervision to work effectively. Vietnamese employees
often make their own point of view in front of the crowd but often share
personal opinions with managers. Often accepting opinions from managers
because of position differences in the company, although disagreeing with that
opinion and they do not speak their mind for fear of losing your job.
4. ECO
Vietnam has a rich ecosystem with a subtropical climate, a coastline of
3260 km and an East Sea border, which helps Vietnam own a considerable amount
of resources. In addition, the potential strategic geographical position of Vietnam
in the near future may become a transit place by customs gate instead of
Singapore. The biggest minus point is that the air pollution level in Vietnam has
reached alarming levels mainly in big cities and surrounding satellite provinces
where a large number of factories are located. Although Vietnam is affected by
climate change as well as the consequences of global warming, most of the
pollution comes from industrial waste and the lack of remedies. Kia Motor has
observed and introduced timely measures to improve the living environment by
reducing CO2 emissions such as hybrid cars with more environmentally friendly
engines. Kia is also researching and developing the line. The electric car is
currently the current trend but also faces many difficulties because Vietnam often
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rains so ensuring this car can work as well as safety for users is a difficult question
for the manager.
5. SWOT
Strength Weakness
 Unique diverse design, Stylish
youthful luxury.
 Another strong point of Kia is always
respect for talents people.
1. For example, in 2006 to create a
unique style for KIA, the car
company invited the chief designer
of Volkswagen, Mr. Peter Schreyer
and in 2013, he was promoted to
the position design director of KIA
and Huyndai.
2. And also in 2013, Mr. Pierre
Leclercq - former director of
designing high performance feature
car division of BMW to be the style
director for KIA.
3. These factors have helped the
design of KIA cars increasingly
 Engine durability is easily degraded,
emitting noise after long periods of
use.
 With some feedback from customers,
the chassis is often not sure after
running 90000 km (The reason may be
due to the poor road terrain in
Vietnam).
 Air conditioner fitted on the car is not
really good.
 KIA's soundproofing is not good.
 Steering quality reduce after a long
time of use, making the driver
uncomfortable to handle.
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luxurious, elegant and helps the
company grow.
 Reasonable price for the majority of
customers in Vietnam market.
 In addition to the above, KIA's interior
and options are fully furnished and
comfortable, with space for the driver
and the occupant to sit comfortably.
 Technology and functions for safe
operation of the vehicle are fully
equipped.
 Moreover, it is quite easy to repair and
maintain because KIA's equipment and
materials are quite popular and diverse.
Opportunities Threat
 Vietnam's car ownership rate is still
low, 23 cars per 1,000 people.
Therefore, the potential and market are
still very large so that KIA can grow
car sales
 Vietnam's economy is growing, so the
ownership of Vietnamese cars is
increase easily.
 The roads in Vietnam have been
improved, there are many highways so
this is an advantage for the car
industry. And another opportunity is
that the population of Vietnam is
concentrated in big cities like Ho Chi
Minh and Hanoi which are the key
areas that can be develop more.
 Import taxes and vehicle
registrations may increase,
affecting vehicle sales but this
cannot be controlled.
 Thaco and KIA may not cooperate
anymore because the quality of
KIA vehicles assembled in Thaco
is being assessed poorly.
 More and more competitors in
Vietnam. The most recent is
Vinfast, a domestic car company so
it will be supported by many
Vietnamese people.
 The negative feedback on the
media affects the company's sales.
 Due to KIA's decision is influenced
by Hyundai, there were still many
limitations and lost the talent to
Hyundai, for example Peter
Schreyer in 2013, because of
recognizing his talent, Huyndai
appointed him to Huyndai's design
director and KIA. He will not
focus on a single company KIA
like before.
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After analyzing the SWOT of Kia Motor Company, I got a better idea of the
limitations that need to be improved as well as the highlights for Kia to affirm the brand
in the automotive industry. In addition, Kia needs to seize the opportunities for further
development and have plans to prevent threats in the Vietnamese market.
(AnnalysReportKia, 2018)
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IV. The impact of change and the effects it has on the organization’s strategy
and operations and culture
1. Strategy
 Competiveness
Product differentiation strategy- This strategy helps Kia have a firm
foothold in segments A and B in Vietnam market.
Why: Not only Kia Motor but also many businesses in the automobile
manufacturing industry, identify the Vietnam market as a potential market
for expansion and development. Kia pursues a strategy of product
differentiation to gain a competitive advantage. In the same segment of the
car, but the differentiation that can satisfy customer tastes is the reason for
Kia Motor Company to have a strong foothold in a potential market like
Vietnam. Since then, Kia Motor Company proposed in 2020, applying a
strategy of product differentiation in the cars of segments A and B.
 Structure
Expand the company by restructuring.
Why: Kia Motor Company strives to keep up with globalization.
Therefore, the structural change of the Kia company is to help the
directors at the local headquarters can easily manage and develop
operations in the places. At the same time, the structural change is a
stepping stone to prepare training and evaluation for the next generation
management of Kia Motor Company in the next 20 years.
 Marketing & Sales
Developing Kia brand name in Vietnam market by becoming a sponsor
of government's charitable activities and public programs.
Why: Vietnam is a country that values the spirit of solidarity and "good
leaves protect torn leaves". Becoming a sponsor of government volunteer
activities, as well as public works, helps Kia have a better image in the way
customers in Vietnam. Since then, Kia brand has been developed, Kia will
have a foothold in this potential market.
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V. How change will have affected leadership, individuals and team behavior
1. Loss Resources
The main goal for organizational change and its implementation is that
change will improve and maintain the organization's production environment on a
daily basis. But it is not easy to do that, Kia has encountered a shortage of
resources such as finance, people, materials etc. First, the lack of employee
involvement. This is probably the most common barrier to change management.
Employees always have a fear of change and unless they participate in the change
process, it is very likely that even the most loyal member of Kia employees will
resist change. The biggest mistake some organizations make is failing to involve
employees in the change process. This spikes the fear of the unknown, the lack of
a desire to embrace a new culture and ultimately a complete barrier to change.
Second, financial resources are insufficient to meet that change. Sometimes a
change in the Kia company means getting rid of the old ones and starting a new
one, which results in a huge financial loss. And so the capital rotation will
encounter obstacles, greatly affecting the operation of the company. Finally, there
is a shortage of raw materials. A Kia car needs to have all the parts when
assembling, but if the innovation of the company makes the supply of raw
materials to produce parts missing, it will affect the automobile assembly process.
Since then, the entire production chain is delayed and the biggest consequence
could be affecting the sales of Kia Motor.
2. Location
The change of position of a company is also an important part in
determining the success of that company. For example, Vinamik- milk factory in
Thu Duc district. Most employees of the factory are mainly concentrated around
the factory. Employees tend to prefer to live near the workplace for easy
transportation. Working at the factory from 8 am to 5 pm made Vinamik
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employees very tired, they want to quickly come home to rest for tomorrow to
continue working. When changing the company position too far, even long-term
employees can hardly continue to work at the factory. Understanding that, Kia
Motor Company has decided to choose Lai Chu industrial park, Da Nang province
as the place to build the largest assembly factory in the Vietnam market. Around
10 kilometers radius of the industrial zone, the population is quite crowded. Since
then, the company's human resources are not in shortage. In addition, listening to
their opinions, calculating their outputs and assuring them that change is for the
benefit of everyone in the organization including them. Providing the right
resources enough to drive them toward change will be essential for them to feel
comfortable and ready to adjust to new developments in the Kia Motor Company.
3. Managing Commitment
The change always makes employees in the company worried. They tend to
protest against company innovations. The main reason for the protest is that the
employee is afraid of losing his or her rights, or the employee is unable to adapt to
the changes. Leaders are the people who need to make a commitment to gain the
trust of their employees, they need to commit that the new changes not only
benefit the company but also the employees of that company. In addition, if the
change does not bring about the benefits expected, then the commitment of the
leadership to not affect the employee benefits is also one of the factors that earn
loyalty. of employee.
 Evaluate how the impact of the change was minimized:
Leadership Individuals Team behavior
In order to minimize the
changes that affect the
company, leaders must
always have backup
projects to deal with bad
Each individual must know
how to work, the purpose
of working for the benefit
of the company is the key,
so that will minimize the
When there are bad
influences, departments
should work together to
discuss and reinforce the
staff and help the boss find
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issues that may arise at any
time. Although there will
be internal and external
influences that leaders can
not predict if everyone
discusses and agrees on a
common plan, it can take a
lot of time, but everyone
together resolved to
eliminate the problem.
Leaders can set up a long
term plan to lead the
company in the expected
success.
changes within the
company. If the company
has to deal with outside
risks, it may be that the
situation is going to turn
upside down, difficult to
control, but let's put the
company's interests first
and temporarily forget the
benefits. The company has
helped the company a lot.
a way to solve the problem.
It can be said that if
changes occur within the
company, people will
easily solve the problem
and control the situation
within the scope of the
work. Therefore,
departments should fulfill
their obligations to
minimize internal company
changes, and instead, use
that time to plan a response
if there is a negative
external impact.
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VI. Appropriate models to process change efficiently
1. 7S model
While some models of organizational effectiveness go in and out of
time, one that has persisted is the McKinsey 7S framework. Developed in
the early 1980s by Tom Peters and Robert Waterman, two consultants
working at the McKinsey & Company consulting firm, the basic premise of
the model is that there are seven internal aspects of an organization that
need to be aligned if it is to be successful.
McKinsey's 7S model specifies 7 factors that are classified as "hard"
and "soft". Hard elements are easy to identify and influence management,
while soft elements are more elusive, more ambiguous and are influenced
by corporate culture.
Hard elements include:
- Strategy
- Structure
- Systems
Soft elements include:
- Shared values
- Skills
- Style
- Staff
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 7S model can be explained with the help of the illustration of Kia Motor
below:
 Strategy
The strategy is a plan devised to maintain and build a competitive
advantage over competitors. Kia Motor's business strategy can be
described as product differentiation and accordingly, the company
positions itself as a famous brand in the automobile industry. Kia Motor
pursues a differentiation business strategy with a focus on advanced
technological features and capabilities and digitalization of its vehicles
according to its Strategy Diversify product lines. The company
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communicates relevant marketing messages to the target customer
segment via various marketing communication channels.
 Structure
How the organization is structured and who reports to whom. Kia
Motor's organizational structure is complex due to the size of the
company and the massive scope of its operations. Yet, Kia's
organizational structure is sophisticated enough to respond to changes in
the external marketplace in a timely manner. Kia Supervisory Board is
the highest strategic management team with members organized into
four committees. These are Personnel, Audit, Nomination and
Mediation committees. Kia Supervisory Board oversees Kia Board of
Management headed by its Chung Mong-Koo.
 Systems
The system is considered as the daily activities and procedures that
employees participate in to complete the job. These relate to daily
activities and procedures engaged by Kia Motor employees in order to
get their job done. Kia Motor integrates robotics technology, IT and
online platforms within its many systems to deal with a wide range of
business processes. A new Kia series assembly line at Chu Lai industrial
park, Quang Nam province, Vietnam can be mentioned to justify this
point.
 Shared values
Referred to as the "highest goal" when the model was first
developed, Shared values are the core values of the company proven in
corporate culture and public morality general affairs. The organization
of Kia Motor has its belief that by increasing the sophistication of
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management techniques from being just a simple manufacturing
company to a standard value chain.
 Skills
The capabilities of an organization or its employees to complete a
particular task is described as the skills of the company. Kia Motor
administers complete knowledge to its employees so that they could
work efficiently and effectively within the organization. It led to skill
enhancement of the employees to work as per the standards of Kia
Motor Company.
 Style
The working style of the company which it takes up helps the
company to achieve the goals or objectives of the company. The
steering wheel style was used by Kia Motor to achieve its objectives.
This wheel has 90-degree arcs, on which the company’s four main areas
are considered, and they are employee performance, customers,
operations, and customers.
 Staff
With more than 20,000 employees, Kia Motor Company is growing
and asserting itself in the automobile industry market. That development
is reflected in the competence and working style of each employee in
the Kia company.
This model is used by Kia Motor Company as a strategic planning tool to
show that the aspects of a company that looks at first appear to be separate, but in
fact, they are interconnected and dependent. each other to create common success.
2. Maslow’s hierarchy
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Maslow’s Pyramid of Motivation
This pyramid is created by professor Abraham Maslow, an American psychologist
and he creates this pyramid to give the hierarchy of human needs or this can be known as
a basic need of any human being from bottom to the top
 Physiological Needs: this is the most basic and strongest thing that people need to
survive so such as food, air, water, sleep, etc.
 Safety: On this floor, people they not just want to survive, they start to care more
about their health, so besides the basic need, they also want these things are safe
for them so they can live longer than just surviving day by day.
 Social Needs: People starting to feel lonely and want to have a family or take part
in a group or a communication
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 Self-Esteem Needs: this floor showing that this time people want to be accepted
and respected by others. And when they got some compliment or some
encouragement from others, they feel that they can do better and that motivate
them to improve better
 Self-Actualization Needs: This is the top need of the Maslow’s pyramid, people on
this floor really want to show everyone else what they are good at.
Base on this Maslow’s pyramid, the company can know what type of need
that their employee is and have a good strategy to motivate the employee base on
what they need. And employee when they have that “reward” from the company,
they will have good thinking about the company then they will work harder and
contribute more to the company.
In Kia Motor, first of all, that this is the Multinational company so the
diversity of the employees working in the company and company knows that and
they are tried to create policies and an environment to make sure their employees
can work with the company prolong. To do that, Kia Motor needs policies to
motivate and inspire the following:
 Firstly, the company needs to set up a Diversity Committee that allows employees
to talk about issues they care about, like human rights, work-life balance, health
care, etc. In addition, it is a good idea to have the lunch break be moved down by
an hour. As a result, employees have a feeling that they are fully satisfied with
their physiological and social needs.
 In keeping with the Maslow Pyramid's Self-Esteem Needs, the Kia Motor
company needs awards such as Engineers of the year, departments or teams with
the best results, etc. In addition, organize Strategy to train young talents. These
award shows that company is accepted what are the employees have done by
giving them a reward and also encourage other employees to work harder so they
can earn these reward too, combine with the good environment between worker
and worker, worker and the boss, that create a good competitive environment.
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 Last but not least, Promote the Extrinsic motivation of each individual, we give
the power for them, instead of the leader who will manage, decide, and
communicate with senior then each employee will be responsible and receive the
reward for the achievements they make. When Kia Motor Company does that, the
company not only has more capable employees but also easily retains and makes
employees want to stay with the company for a long time.
24

VII. Comprehensive plan with for the organization change in term of strategy,
operation and culture for current need
1. Strategy
 Competiveness
Objectives: In 2020, applying a strategy of product differentiation in the cars of
segments A and B.
What Who will
be in
charge
what
Method When Evalu
ate
Where
Research
and test to
differentia
te the
product
R&D
department
- Research to improve
factors such as design,
enhanced design,
overcome the quality of
Kia chassis parts.
- Tested on different
terrains, ensuring the
quality is not changed
1st
December,2
019- 1St
July,2020
Long-
term
In Kia
Motor
Company
Do an
advertisin
g
campaign
across the
market
Marketing
department
Planning a new
advertising strategy
must attract
customers, meet
their tastes and
highlight product
differentiation.
1st July,
2020- 1st
December,
2020
Long-
term
In Kia
Motor
Company
Products
are put
into
production
Production
department
Putting the product into
production (note that the
manufacturing process
is an important step) in
order to achieve
1st
August,202
0
Short-
term
In Kia
Motor
Company
25

customer satisfaction,
the manufacturing
process needs to be
accurate and complete.
 Structure
Objectives: Expand the company by restructuring
What Who will
be in
charge
what
Method When Evaluate Where
Management
training
HR
department
Train qualified
employees into
managers who
are capable of
working at
headquarters in
Vietnam
1st
December,2019-
1st June,2020
Long-
term
In Kia
Motor
Company
Distributing
managers to
local
headquarters
HR
department
Helping
executives
operate their
headquarters in
localities in the
Vietnamese
market
1st June,2020- 1st
June,2022
Long-
term
In Kia
Motor
Company
 Business
26

Objective: Developing Kia brand name in Vietnam market by becoming a sponsor of
government's charitable activities and public programs
What Who will
be in
charge
what
Method When Evaluate Where
Identify the
target
group
HR
department
Confirm who will be
funded and how the
public works
1st
May,2020-
1st
April,2020
Short-
term
In Kia
Motor
Company
Planning to
organize
volunteer
work
Finance
department,
HR
department
Make a list of
specific things to do
and expenses for
them
1st
April,2020-
1st
June,2020
Short-
term
In Kia
Motor
Company
Contact
governmen
t volunteers
Foreign
regulations
department
Contact the
Vietnamese
government for
cooperation
1st
June,2020
Long-
term
In Kia
Motor
Company
27

CONCLUSION
Managing change successfully depends a lot on effective leadership styles. If
leadership is more effective, only change management can become results-oriented. In
this report, I have analyzed how the change forces have affected Kia Motor. More
specifically, in this paper, I have analyzed the barriers that have influenced the decision
of the Kia leader. Kia Motor wants to change and be more successful in the food and
drink arena. The company needs to analyze and overcome the barriers and the chances of
success will be higher.
Understanding and Leading Change (ULC) prepares participants for the issues that
come with starting and implementing change. During the program, participants will look
at the changing processes and the psychological, political and organizational issues they
create. They will learn to categorize different challenges and identify specific issues for
the initiator, implementer, and receiver of the change. They will understand why change
initiatives can fail and learn how to tackle resistance as well as identify success factors.
28

REFERENCES
AnnalysReportKia, 2018. swotandpestle. [Online]
Available at: https://www.swotandpestle.com/kia-motors/
[Accessed 3 12 209].
AnnualReportKia, 2017. kia. [Online]
Available at: https://www.kia.com/worldwide/about_kia/investor_relations/annual_report.do
[Accessed 1 12 2019].
KiaMotor, 2019. kiamotorsvietnam. [Online]
Available at: http://www.kiamotorsvietnam.com.vn/Ve-KIA-Motors-5
[Accessed 1 12 2019].
Prosci, 2012. Prosi. [Online]
Available at: https://www.prosci.com/resources/articles/what-is-change-management
[Accessed 1 12 2019].
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