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 Synopsis

1. Company snapshot
2. Case study in brief
3. COMMON THREADS: CORE PROBLEM
DEFINITION
4. Questioner
5. conclusion
 uENERAL MOTORS
' ueneral Motors, one of the world's largest automakers, traces its
roots back to 1908. With its global headquarters in Detroit, uM
employs 204,000 people in every major region of the world and
does business in some 140 countries. uM and its strategic partners
produce cars and trucks in 34 countries, and sell and service these
vehicles through the following brands: Buick, Cadillac, Chevrolet,
uMC, uM Daewoo, Holden, Opel, Vauxhall and Wuling. uM's largest
national market is the United States, followed by China, Brazil,
uermany, the United Kingdom, Canada, and Italy. uM's OnStar
subsidiary is the industry leader in vehicle safety, security and
information services. ueneral Motors acquired operations from
ueneral Motors Corporation on July 10, 2009, and references to
prior periods in this and other press materials refer to operations of
the old ueneral Motors Corporation.
 Daewoo International Corporation
' President & CEO- Kim, Jae-Yong ´

' Address:-
' 84-11, Namdaemunno 5-ga, Jung-gu, Seoul, Korea (100-753)C.P.O. Box 2810
' Phone no.02-759-2114, FAX 02-753-9489
' Number of employees- 1,779(as of December 2009)
' Major business area
' International trading, resource development in foreign countries, domestic and international investments
in business, foreign projects, support of small and medium sized companies
' Organization
' 1. Management (3 Divisions) : Corporate Planning Division, Finance & Accounting Division, Ethics
Management Division

2. Sales (6 Business uroups) :

Business uroup I : Steel Division I, Steel Division II, Special Steel Division
Business uroup II : Machinery & Plant Division, Automotive Component Division, Electronic Industry
Division, Textile Division, Special Business Team, Apparel Team
Business uroup III : Steel Raw Materials Division, Metal Division, Non-Ferrous Metal Division
Business uroup IV : Chemical Division I, Chemical Division II, Chemical Division III
Energy & Resources Development uroup : Commodity & Agro-Resources Division, Mineral Resources
Development Division, E&P Operation Division, Energy Development Team
Domestic Business : Busan Factory, Masan Department Store
 Case Study: uM and Daewoo

' Formed an alliance in 1984 to

' manufacture small cars in South Korea
' _ Both invested $100m in a 50/50 JV
' _ Day-to-day management left to South
' Koreans
' _ Both sides saw the JV very positively ʹ
' _ uM doubted that they could manufacture a
' small car for cheaper in the US
' _ Daewoo was getting access to engineering
' skills of uM and US market
 Evolution of Events

' 1987 ʹ South Korea had become a

' democracy ʹ workers were asking for
' wage increases
' _ Frequent halt in the LeMans production
' _ Daewoo responded by doubling wages
' _ Suddenly cheaper to build Opels LeMans in
' uermany
' _ Problems with quality
' _ uM was very frustrated with Daewoo
 Other Events

' Daewoo was however equally frustrated

' with uM
' _ Daewoo uroup Chairman Mr. Kim complained
' that he was treated shabbily and that uM
' execs were arrogant
' _ uM did not allow Daewoo to expand their
' market in the US or Eastern Europe
' _ Did not want to allow Daewoo to double
' capacity
' _ Alliance was dissolved and Daewoo
' bought uM͛s interest in 1992
' _ In 2002, uM bought Daewoo