Kia-Hyundai and Overseas Ventures
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Search online resources and find an article describing an experience of either: (1) a US company or division that conducts business in a foreign country; or (2) a company or division based in another country which has started doing business in the United States. Perform searches on "joint venture," "licensing," or "strategic alliance."
Please answer the following questions:
1. Was the company's experience positive, negative, or mixed? Justify your answer.
2. What legal or political barriers did the company have to overcome? What cultural or business differences did the company encounter? What problems did these differences create for the company? What did the company do to overcome the obstacles? Did the company handle cultural and business differences effectively? Why or why not?
3. Companies involved in international trade have to watch the exchange rates for the euro, Japanese yen, Brazil real, Russian ruble , and US dollar. If you were a U.S. exporter, how might a stronger dollar affect demand for your products? How might a weaker dollar affect demand?
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Solution Summary
Based on Kia-Hyundai, this solution explains the company's experience as positive, negative, or mixed. The legal or political barriers, together with the cultural or business differences are discussed in terms of the problems these differences might create for the company. It explains how the company overcome these obstacles, and whether or not the company handled cultural and business differences effectively. In relation to a U.S. exporter, the stronger dollar might affect demand for your products, and visa versa. Supplemented with a highly information article, an overview of Kia-Hyundai.
Solution Preview
Please see response attached (see below as well), as well as one supporting document. I hope this helps and take care.
RESPONSE:
1. Was the company's experience positive, negative, or mixed? Justify your answer.
Company: Kia-Hyundai
Mixed experience - with a 48.4% growth and 107,631 units in sales earned Kia-Hyundai the well-deserved title as 2003's fastest growing car brand in Europe. Seemingly, this South Korean car maker made a successful crack and has made its indelible mark in the European automotive market. In April 2004, it broke the ground for its first European factory in Zilina, Slovakia, with its strikingly suitable slogan "the power to surprise," Kia Hyundai will take the wind out of other carmakers' sail and will astoundingly seize European car buyers by storm. (See attachment "Hyundai").
Though the path wasn't necessarily easy for this unknown seven-year old company, Hyundai persisted. In 1974, through sheer hard work and perseverance, HMC opened the chapter of its international story with the introduction of the Hyundai Pony at the Turin Motor Show. Initially, exporting automobiles world-wide was seen from different quarters as naïve and unrealistic, but Hyundai proved its detractors wrong. In fact, data showed it to be the third largest importer into Europe from the Far East after Toyota and Nissan (and coming up fast at second place). As well, its share of Hyundai-Kia in Western Europe market escalated to 3.2% in the first half of 2003 from 2.7% in the same period of 2002 and currently it has even more ambitious plans. With the opening of a manufacturing plant is ...
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