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“My Way or the Highway at Hyundai and Kia” Case Study
Thomas Maddenon 10 May 2011
Transcript of “My Way or the Highway at Hyundai and Kia” Case Study
By Alexander Birch & Thomas Madden Background The Hyundai Motor Company along with Kia comprises the Hyundai Kia Automotive Group HMC is the world's 4th largest automaker Headquartered in Seoul, South Korea Employs 75,000 people worldwide Active in 193 countries Sold 1.7 million cars in 2010 Hyundai Motor Company along with Kia comprises the Hyundai Kia Automotive Group Hyundai Motor Company along with Kia comprises the Hyundai Kia Automotive Group What is the Issue? Firing of American management
Trying to move their vehicles upscale
American executives find Hyundai Motor's corporate culture suffocating
Establish sales targets based on what their auto plants can produce
Korean overseers whose job it is to keep an eye on American managers
American executives warnings of moving upscale have been ignored
How it relates to the reading? Motivation:
-U.S. - individualistic culture
-S.K. - collectivistic culture
*Achievement motivation theory
How the issue has evolved? vs Discussion Question Do you think Hyundai & Kia executives should have taken the advice of the U.S. management team and not moved into the luxury car market ?