Mgt 510 Assignment Instructions
Select one (1) global industry, such as the automobile or cell phone industry. Next, use the Internet to research three (3) major international competitors within the chosen industry. Take note of manner in which the popular international business press (e.g., newspapers, magazines, e-zines, press releases, etc.) depicts the selected companies.
Write a four to five (4-5) page paper in which you:
- Compare and contrast the three (3) models of culture. Next, select one (1) of the researched international competitors, and ascertain the model of culture that is most appropriate for the selected international competitor. Provide a rationale for your response.
- Recommend the type of economic system that best relates to each of the researched international competitors. Predict three (3) potential effects of such an economic system on the societies in which the system is involved. Provide a rationale for your response.
- Speculate on the major reasons why certain countries have lagged behind other countries in economic development. Recommend three (3) generic actions that the three (3) researched major competitors could take in order to encourage economic progress within these countries. Provide a rationale for your response.
- Imagine that you have been given the opportunity to lead one (1) of the three (3) researched international competitors. Select one (1) company in which you are interested in leading, and provide a rationale for your choice. Propose the necessary major steps—including education, social development, community activities, bargaining skills, language skills, conflict management skills, etc.—that you would need to take in order to propel you from where you are today to a global leadership / management position at your chosen company.
- Suggest two (2) global changes in expansion, technology, marketing, products, services, human resources, and customer service, etc., that you would make as CEO of the selected international organization from Question 4. Provide a rationale for your response.
How Big Global Business Compare – Mgt 510 Assignment Sample Answer
The global automobile industry is increasingly becoming more competitive, where the car manufactures face numerous competitions from their competitors. In addition, the increasing pressure from governmental agencies and changing consumer preferences further increases challenges in the industry. The major car manufacturers with established global share include General Motors, Toyota, Hyundai and Nissan. All these manufacturers share global market share with Toyota being the leading car manufacturer followed by General Motors. However, all these automobile manufacturers have different global cultures that have allowed them to achieve their success.
The Culture of Toyota, Nissan and Hyundai
Toyota is a Japanese world’s leading manufacturer of car automobiles. The company has a major market in North America, where its successful corporate culture enabled the company to topple General Motors as the world’s leading car manufacturer. Through its eye for quality, vehicles that are eco-friendly and economical in fuel consumption, the company has been able to attain market differentiation and an increase in its vehicle annual sales in various continents in the world (Shim & Steers, 2012).
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Although it was faced with a brief collapse in its market in the US, Hyundai has employed a culture of continuous innovation and new technology which has enabled it to increase its market share upwards to 5% today (Holstein, 2013). The Hyundai automobiles are manufactured by Hyundai Motor Company in South Korea. Moreover, established in 1933, Nissan is a Japanese automobile manufacturer. Unlike Toyota, Nissan had unsuccessful 1980s when Toyota experienced great success in terms of sales and revenues (Shim & Steers, 2012). Between 1980s and 2000, as Nissan wallowed in losses and drop in its sales and international market share, Toyota was increasing its global market share as well as production capacities.
Although, the global strategies of these three companies share similarities, Toyota has a more unique corporate strategy. The company has adhered to strict quality standards and continuous innovative technology that captivates its customers with various models which consume low fuels. Besides, the success of the company in the North American market is largely due to its high quality and ability to produce cars that are friendly to the environment, which produce very minimal levels of pollution. Hyundai, however, display less innovation and adherence to quality, a factor that the company is working on in its 2014 vision strategy, which has seen it increase its market share (Spencer, 2011). The three companies show great global marketing strategies, where with its subsidiaries, they are able to manufacture and sell their products to their markets.
Hyundai Motor Company
In order to compete with major international leaders in automobile manufacturers like General Motors and Toyota, Hyundai needs to restructure its corporate culture that led to near its collapse in the US market. Hyundai Motor Company has an ability to spread car design features to suit customer needs. For the company to recapture the international market there are a number of issues that the company needs to address.
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The modern world market is shaped by changing international prices and a number of treaties that govern environmental pollution. The increased move towards the ramification of agreements to curb global warming has seen many countries demand more fuel efficient and less pollution from cars (Xue-hong & Yong-lin, 2011). Many companies have gone to adopt the idea by manufacturing fuel efficient cars that pose minimal carbon pollution. In some countries like the US market, most consumers are specific when it comes to car purchase. Most of the citizens in US would love to own cars that are fuel efficient and cause less pollution in order to benefit from insurance subsidies and save on costs. Therefore, Hyundai Motor Company needs to adopt new technology that manufactures high quality cars that consume less fuel. In fact, the company should think of venturing into manufacture of electric cars that are environment friendly.
Furthermore, there is need for Hyundai Motor Company to adopt a marketing mix that includes the creation of subsidiaries in various parts of the continent. In doing so, the company will be able to compete with the major manufacturers who instead of shipping fully manufactured cars, they can manufacture in the host countries. This move has an added advantage of creation of jobs and product loyalty among customers who feel that locally manufactured cars meet all their legal automobile requirements. Hyundai Motor Company has shown a development of subsidiary strategy in its Vietnam market where the company has build a collaboration with a Vietnamese company HTC (Holstein, 2013).
Therefore, in order to witness success in foreseeable future, Hyundai Motor Company needs to adopt a robust research and development, where quality and continuous innovation and adoption of eco-friendly vehicles should be the priority of the company. In addition, the company needs to adopt cross-cultural diversity in its corporate culture.
The Economic System That Best Relates To Each of the International Competitors
The world economic systems are of four types namely market, economic, command and mixed economies. Regardless of the type of an economic system that a manufacturer adopts, it must define its produce, how it produces it and the target (Someren & Someren-Wang, 2013). The best economic system for Hyundai would be mixed economic system. This system best suits the company since its bit to build more market share requires that it enters into new markets where government policies play a crucial role in ensuring the success of new ventures. In addition, in adopting mixed market economy, it would ensure that Hyundai streamlines its car manufacture to the needs and preferences of the customers. As for Nissan, the company already has a considerable market share and the best economic system would be market economy as this would enable it to increase market growth and generate more revenues.
However, the success established by Toyota shows that the company strategies that were put in place have worked well and the company may need to stick with them, thus it would be prudent if it adopted traditional economic system. At the stage in which Nissan and Toyota are, the companies have a good market share and the need to hold onto it and any improvements in revenue generation can be achieved through lean manufacturing, where the products are tailored to meet the customer needs and preferences since they have established brand names.
The adoption of such economic systems by the three international competitors can lead to increase market share by the companies due to increased demand for the company products. However, the streamlining of the manufacturing strategies due to adoption of the economic systems could spur fierce competition and could possible lead to loss of market by the other competitor due to one manufacturer adopting the market segment of the other.
Reasons Why Certain Countries Have Lagged Behind Other Countries in Economic Development
The world economy has been in a steady rise although it has faced a number of challenges due to great depressions. In addition, there remains a great gap in the economic development in the world among the various countries (Professor of Management Eric G Flamholtz & Randle, 2014). One major contributor of the difference in the economic development among various nations is lack of sound economic development framework. This is particularly so in the third world countries where the weak economic infrastructure has contributed to their weak economies despite some of these countries being endowed with vast resource potentials, for example Africa. The other reason could stem from poor research and development in some countries. There remains a huge gap in research, between the developed and under-developed countries and this has contributed to difference in the economic developments among various countries in the world (Briody, Trotter, Meerwarth, & L, 2010).
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The first generic action that would serve a good recommendation for the three competitors would be to invest in research and technology. In doing so, it would open up new opportunities for investment and generation of job opportunities thus improving the economies of such countries. In addition, there is need for such companies to invest in infrastructural segments like building their assembly plants in such countries as this would improve the GDP of the countries they invest. Finally, good infrastructural facilities such as roads, research institutions and skills exchange programs and training would go a long way in enhancing the exchange and adoption of new technologies which would uplift the economy of the said nations. Furthermore the increased technological advancement and research would allow tapping of the unexploited resources in such countries.
Choice of Company to Lead
Given an opportunity to lead, I would choose Hyundai Motors. The company provides a good ground in which it could be steered up to the levels of major international automobile manufacturers. In order to attain the goals, there will be a number of strategies that would be put in place in the company. To start, there would be need to transform the company’s corporate culture. The initial company vision was focused on sole production and the idea of quality and customer needs were never incorporated. The management shall conduct extensive market research in order to determine the available opportunities. Using the market research data, the company strategy shall be restructured and lean manufacturing adopted.
However, it should be noted that all can only be realized by establishing first the necessary infrastructure including carrying out educative forums to inform all the stakeholders about the new directions that the company would adopt. All the necessary reforms shall face many reactions both positive and negative, but the educative forum shall encompass all possible reactions and detailed information regarding the roll-out of the program.
The global challenges that leading such a firm would demand to be considered include competition and cultural diversity. These form major challenges since running an international company means one has to go beyond one’s country and that would mean adopting a totally different culture in terms of language, economy and leadership (Sirkeci, 2013). In addition, there are competitions from both local companies in such countries as well as other multinational corporations who may have ventured into such territories.
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