Waqa Ali Khan is an EMBA student at session 2008-09 studying Principal of Management. His case study assignment examines the restructuring of Korea's Daewoo corporation. Some of the key points discussed are: 1) the advantages and disadvantages of Daewoo's decentralized management approach; 2) strategies for Daewoo to stay competitive with Japanese automakers; and 3) controllable and uncontrollable factors in Daewoo's situation and how the CEO should respond.
Waqa Ali Khan is an EMBA student at session 2008-09 studying Principal of Management. His case study assignment examines the restructuring of Korea's Daewoo corporation. Some of the key points discussed are: 1) the advantages and disadvantages of Daewoo's decentralized management approach; 2) strategies for Daewoo to stay competitive with Japanese automakers; and 3) controllable and uncontrollable factors in Daewoo's situation and how the CEO should respond.
Waqa Ali Khan is an EMBA student at session 2008-09 studying Principal of Management. His case study assignment examines the restructuring of Korea's Daewoo corporation. Some of the key points discussed are: 1) the advantages and disadvantages of Daewoo's decentralized management approach; 2) strategies for Daewoo to stay competitive with Japanese automakers; and 3) controllable and uncontrollable factors in Daewoo's situation and how the CEO should respond.
Waqa Ali Khan is an EMBA student at session 2008-09 studying Principal of Management. His case study assignment examines the restructuring of Korea's Daewoo corporation. Some of the key points discussed are: 1) the advantages and disadvantages of Daewoo's decentralized management approach; 2) strategies for Daewoo to stay competitive with Japanese automakers; and 3) controllable and uncontrollable factors in Daewoo's situation and how the CEO should respond.
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WAQAS ALI KHAN / REG.
1552208008
NAME: - WAQAS ALI KHAN
REG. No.:- 1552208008
PROGRAM: - EMBA (Health Management)
COURSE: - PRINCIPAL OF MANAGEMENT
SESSION: - 2008-09
ASSIGNMENT TOPIC: - “CASE STUDY”
(Restructuring at Korea’s Daewoo)
COURSE FACILITATOR: - MR.FEROZ ALAM
WAQAS ALI KHAN / REG. 1552208008
“CASE STUDY” (Restructuring at Korea’s Daewoo)
Q.1 What are the advantages of a hands-off, decentralized
Management approach?
Ans.Advantages of a hands-off Decentralization:
1. Some experts believe that decentralization encourages the development of professional managers. As decision making authority is pushed down in the organization, manager must adapt and prove themselves if they are to advance. 2. In decentralization mangers or employees from lower level participate in decision making, that participation increases their loyalty and dedication for their organization. In other words this can be use as the motivation tool for organizational success.
Disadvantages of a hands-off Decentralization:
1. Managers must be trained to handle decision making, and this may require expensive formal training program. 2. Since many managers have worked in centralized organizations, it is uncomfortable for them to delegate authority in a decentralized management. Their attitudes are difficult to alter, and attempts often lead to resistance.
Q.2 How can Daewoo stay competitive with the Japanese?
Ans. Following strategic objectives can be more effective for
Daewoo stay competitive with the Japanese:-
1. Full Product line; presence in all segments in Local and
International market. 2. Improved Car sales in Europe and Asia. 3. Should be developed more Sales and Service network in International market. 4. Financial Power; Productivity should be enhance. 5. Innovation potential and technologies know-how. 6. Developed lower-price products, especially for Asia. 7. Worldwide assembly and production. 8. Brand Image for Luxury Cars. WAQAS ALI KHAN / REG. 1552208008
Q.3 What were some of the controllable and uncontrollable factors
in this case? How should Mr. Kim have responded to those factors?
Ans. Controllable factors in this Case;
1. Philosophy of Hard work. 2. Value Placed in People. 3. Quality Products. 4. Long time achievable plans. 5. Avoiding of fixing blame on employees.
Uncontrollable factors in this Case;
1. Unprofitable heavy shipping units. 2. Labor Coast. 3. Unnecessary expenses. 4. Lack of proper check and balance. 5. Financial Discipline.
Mr. Kim should have responded;
1. Reforms corporate structure for proper check & balance. 2. Concentrations of power of controlling shareholders. 3. Enhance transparency and accountability. 4. Reward and Motivation by peers. 5. Control Focus on Group performance.
Q.4 What do you think of Daewoo expansion into Europe? What are the advantages and risks for the company?
Ans.In my opinion the importance of Daewoo's moves in Europe, as
well as the importance of Daewoo Motor when Kim moved to concentrate solely on the Daewoo Group's overseas auto business. The company's expansion into Eastern Europe seemed savvy as the region's emerging democracies could provide the car manufacturer with cheap labor, and as the market for affordable, also the joint venture could be very valuable impact in international market.
Advantages for the Company;
1. Establishing existing brands in new markets. 2. Addressing needs in new segments. WAQAS ALI KHAN / REG. 1552208008
3. Developing and introducing new models.
4. Utilizing new sales channels. 5. Broadening service (mobility, & Financing).
Risks for the Company:
1. Economic problems in emerging markets. 2. Potential conflicts in operational and management systems. 3. Falling stock market value. 4. Lack of product to entered lower-priced segment. 5. High-priced Position.
Q.5 What do you think GM acquired the company, while Ford did not?
Ans. The acquisition is a key component of GM global strategy. On
the other hand, restructuring Daewoo is going to be formidable task. The branch image has to be stored. The Korean Market of share 10 percent has to be improved. Further, GM existing production capacity has to be constrained by demand for its current and a couple of its future models. While Ford strategy did not want vast experiment and also did not want to take risk to establish the bankrupt company from the bottom-line. Ford also avoid the down falls factors into the share market.
Q.6 What Problems can GM-Daewoo expect in the future?
GM-Daewoo Problems could be expected in Future;
1. Economic problems should be raised by changing political situation. 2. Technologies competition behind the Japanese Market. 3. Stable European Export Markets. 4. Industry Coast competitiveness. 5. Increases Wages. 6. Customer Demanding Position. 7. Stock Market value persists.
