GROUP ASSIGNMENT

TECHNOLOGY PARK MALAYSIA BM 007-3-1-ITM INTRODUCTION TO MANAGEMENT UC1F1401IT HAND OUT DATE: 24 FEBRUARY 2014 HAND IN DATE WEIGHTAGE WORDS : 7 APRIL 2014 : 50% : 1,557

INSTRUCTION TO CANDIDATE:
1 2 Submit your assignment at the administrative counter. Students are advice to underpin their answer with the use of references (cited using the Harvard Name System of Referencing). 3 Late submission will be awarded zero (0) unless Extenuating Circumstance (EC) are upheld. 4 5 Case of plagiarism will be panelized. The assignment should be bound in an appropriate style (comb bound or stapled). Where the assignment should be submitted in both hardcopy and softcopy, the softcopy of the written assignment and source code (where appropriate) should be on CD in an envelope / CD cover attached to the hardcopy You must obtain 50% overall to pass this module.

TABLE OF CONTENTS
1.0 1.1 1.2 1.3
I) II) III)

MEGA ENVIRONMENT INTRODUCTION HYUNDAI MOTOR CORPORATION BACKGROUND TECHNOLOGY ELEMENT ENGINE TECHNOLOGY CHASSIS TECHNOLOGY BLUE LINK TECHNOLOGY ECONOMIC ELEMENT TASK ENVIRONMENT COMPETITORS SUPPLIER TYPES OF SUPPLIER CONCLUSION REFERENCE

1 2

4 5 6

2.0 3.0 3.1 4.0 4.1 5.0 6.0

8 9

1.0 1.1

MEGA ENVIRONMENT INTRODUCTION

Mega Environment can be defined as the all factors existing outside the border of the organization that have a potential to give impact on all part of the successful of an organization. The mega environments; which is sector that may not have a direct impact on the operation of the organization but indirectly influence to organization.

1.2

HYUNDAI MOTOR CORPORATION BACKGROUND Hyundai Motor Corp was established on December 29, 1967 in South Koreas as the

multinational automotive manufacturer company that specialize in carmaker industry. It initially began manufacturing cars and light trucks through a joint venture with Ford. However, by the early 1970s Hyundai was ready to build cars under its own name by introduced its subcompact Pony in 1974. Hyundai Motor, South Koreas largest automaker, sold 659,565 cars in the Korean domestic market in 2010, reaching a market share of about 45 percent and in 2010, Hyundai Motor sold about 3.6 million cars with a few models to worldwide, up 16.3 percent from 2009 and thus showing the increasing about the Hyundai product. Hyundai Motor as a largest automotive manufacturer has global operation where the organization implemented a new global policy aimed at localization. This includes product development with current technology, design of the product, sales, marketing, and consumer services to satisfy local and international customers tastes as well as that of the global challenge.

1.3

TECHNOLOGY ELEMENT

Technology is a particular state of knowledge regarding the production of product and services and its the combination of skills and equipment that organization used in the design, production, and distribution of product and services. Technology is not a things but is one revolution that change something. Most organization can be greatly affected, either positively or negatively by technological progress. For technology element example (by refer to the lecture slide) is japan country has a higher level of their technology in automotive sector and most cars get their spare part from japan country. Hyundai Motor Corp no longer take place at the middle level but now Hyundai Motor satisfied their organization as a cars manufacturer at the first level that automatically overcame others automotive manufacturer such as hottest competitor is Honda. This successful of an organization is because Hyundai Motor improves the production of their product by implementing technology element that seem can be effect of the production; from lower production to the high production. Technologies that implement by Hyundai Motor in their production of the product are below;

Technology

Fuel technology

Blue Link

Chassis technology

Engine technology

Figure 1: types of technology used by Hyundai

I)

ENGINE TECHNOLOGY From compact cars to passenger and commercial vehicles, the power train center is

responsible for developing the main component of every car that called engine. With the independently platform development of engines, transmission and exhaust system, Hyundai continue to work hard to develop the power engine where with boost the engine with latest technology development. Not enough with that, Hyundai Motor companys moves forward with ramping up the technology development to lead the automotive market by introduce fuel efficiency and engine performance standard. For the best engine technology performance; Hyundai Motor was awarded with the Wards Auto Top 10 Best Engine Award for straight three years up to 2011.

II)

CHASSIS TECHNOLOGY Hyundai Motor develop a chassis from the cutting-edge materials to perform and secure

the unrivalled driving comfort, driving performance and safety factor when its used on the road by user. Not enough by using the standard materials; that part also have undergone advanced virtual analyses and passes the standard safety level.

Picture 1: chassis design Image from: Google image

III)

BLUE LINK TECHNOLOGY

Blue Link is referring to the latest or new electronic accessories that were used by this organization to improve the productivity of product. In other word; by implement this blue link (electronic accessories) the value of product will be more. Hyundai Motor Company endeavors to develop electronic safety technologies such as below;

Around view monitoring

Driver information system (DIS)

Assisted parking

Side and rear alert

Vehicle-to-vehicle distance control

Picture 2: types of blue link technology Image from: Google image

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ECONOMIC ELEMENT

Hyundai Company is having a rapid economic growth in the business by cultivating the environmental opportunities. The increase in the value of currency of Korea against the US dollar is also causing an increase in the profits of the business from the foreign business activities. For example in India Hyundai Motor India Limited is currently the second largest auto exporter from India It is making India the global manufacturing base for small cars.

Hyundai sells several models in India, the most popular being the Santro Xing, Hyundai EON and the i20. Despite having growing sales worldwide, Hyundai struggled in Japan, having sold only 15,000 passenger cars from 2001 to 2009.

Following an announcement on November 2009, Hyundai pulled their passenger car division out of the Japanese market and focused on their commercial vehicle division instead. Labor is not cheap in Korea but increase in the production capacity in the nations with lower wage rate is reducing overall cost of the business. Like India they also have plant in Canada after 2009 because of high sales in the country.

In 2009, Hyundai Motor Company succeeded in selling 2.4 million vehicles outside of Korea, an important accomplishment considering the global economic crisis

In USA Hyundai genesis has been able to change the mindset of American consumers, According to John Krafcik, the boss of Hyundai Motor America, the firm has roughly doubled its awareness level among potential American buyers since it launched the car.

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TASK ENVIRONMENT COMPETITORS

Competitors of other businesses that produce inventories or similar services can determine the resilience and creativity, progress and success or failure of a business organization in the world of business. Most organization is developing their products or services to be competitive and even dominate the market to the set same of customer. The automotive industry is one of the highly competitive businesses and is a vital engine for the economic worldwide. Most automakers are competing against each other to entice the customers to purchase their car models. The South Korean carmaker Hyundai Motor has heavily invested in the design, quality and manufacturing and long-term research that will allow them to compete successfully with other automobile manufacturer like Toyota Motor Corporation and also part of a broader strategy to move up market. Recently, Hyundai has redesigned the luxury Genesis sedan, attempting to elevate its brand and grab a bigger share of US and Europe car sales by competing more boldly with Toyota and other high-ends models. As the second global car manufacturer, Toyota has 28 factories over the world, where produces and assemble vehicles for local markets. Hence, the price of their cars will be cheaper as the cost of manufacturing is lower. Although Hyundai only has 7 manufacturing facilities worldwide but its able to produce a quality car at an affordable price and most productive in US compared with Toyota Toyota became the first manufacturer which makes mass production of cars powered by a hybrid system as a basis factor of the eco-car technology starting with Prius more than 10 years ago. As the closer competitor, Hyundai Motor Company has made announcement in December 2013 that it will start selling a Tucson SUV powered by a fuel cell by 2014, which if realized will be the first mass-market arrival of the technology and clean eco-friendly vehicles.

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SUPPLIER

Supplier is called a vendor, is a company or person that provided good and or services to other organization as one of the contributors to the development process on the way to the ultimate customer. A supplier could produce and deliver anything raw materials, partially assembled components, custom parts, or any consumable supplies. In addition to this, the material also examines various company tie-ups and how these arrangements have impacted suppliers, such as how the cross-investment between the various divisions and partners at Hyundai Motor serves to maintain order volumes at the various partner suppliers as they work to support automotive production as a whole. Furthermore, the report reviews how Hyundai Motor has leveraged its own partner suppliers and outside companies in a push for improved product quality, plus with how the idea to produce steel at Hyundai has served to give the carmaker an edge in developing vehicles which combine manufacturability and customer appeal together in a single package with way getting the more suppliers is better than from a few suppliers that organization have to deal with it.

4.1

TYPES OF SUPPLIER SUPPLIER

Manufacturers and Vendors

Independent crafts people

Drop shippers

Wholesalers and Distributors

Franchisors

Importers and Exporters

Affiliate Merchants

Figure 2: A few types of supplier

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CONCLUSION

In the conclusion, the mega and task environment are the factors that effected the organizations externally and internally. From the mega environment factor which is technology and economic element are the external factors that contribute to the successful of a Hyundai Motor organization. In the context of technology element therere a few types of technology that applying by Hyundai Motor to produce the better product for their organization. In other part of mega environment is economic element that also contribute to this. The organizations have to manage the economic very well as the one key of financial. From the internal factors such as competitor is a normal things that will be exist between the organizations. As states in the competitor title there are a hottest competitor such as Toyota will be compete with Hyundai Motor. As the cars maker; of course the organization needs to the supplier to supply the component of the car. The supplier can come from over the world not only from local for example Hyundai Motor getting the car component from the Japan country.

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BIBLIOGRAPHY

World Wide Web; Assist. Mihaela Funaru Ph. D Student, 2010,Toyotas Business Strategies In International Markets, University of Brasov Faculty of Economics and Business Administration . Available At: http://feaa.ucv.ro/annals/v3_2010/0038v3-004.pdf [15 March 2014]. Hoovers.com.2014.Hyundai Motor Company Names of Competitiors. [Online], Available: http://www.hoovers.com/companyinformation/cs/competition.Hyundai_Motor_Company.b04769fcfc9cc550.html [2 March 2014]. Hyundai (2004) About Hyundai Motor company,[Online], Available: http://www.hmmausa.com/our-company/about-hmma/hmc-fact-sheet/[27 Feb 2014]. Lee Joon-seung, 2014, Hyundai, Kia aim to establish credentials as world-class carmakers in 2014. [online] Yon hap New Agency 03 January. Available At: http://english.yonhapnews.co.kr/news/ [15 March 2014]. Liew Jia Teng, 2014, MAA: Three car makers applied for EEV incentives` thesundaily. [online] 31 March. Available At: http://www.thesundaily.my/news [31 March 2014]. Narabe,T.2012.Toyota and Hyundai are in fierce competition in U.S market. [online] January 20,2012. Available at: http://ajw.asahi.com/article/business/AJ201201200001 [2 March 2014]. Youyung Lee, 2013, Hyundai unveils new Genesis to lure BMW, Mercedes-Benz buyers, burnish brand. [online] Nanaimo DailyNews 25 November. Available At: http://www.nanaimodailynews.com [2 March 2014].

Book; Moorhead, G. and Griffin, R.W. 1992. Organizational behavior. Boston: Houghton Mifflin.