NIIE

Unit: Business Environment

NTT INSTITUTE OF INTERNATIONAL EDUCATION

Edexcel BTEC Higher National Diploma in Business

Unit ID: NIIE14002

DREAM IT, MAKE IT

Facilitator: Nguyn Tn Thu Hin

Student: Phm Cao Khnh

Student ID:A1131007

Class: 13AAF01

______________________________________________________________________________ 2/2014 Ho Chi Minh City, Vietnam

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Task 1

1. Vision .............................................................................................................................1

2. Stakeholders ..................................................................................................................1

2.1 Internal.........................................................................................................................1

2.1.1 Shareholders .............................................................................................................1

2.1.2 Employees .................................................................................................................1

2.2 External ........................................................................................................................4

3. Reference .......................................................................................................................6

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1. Vision: With the slogan of, Create & Advance, achieve the Vision through three principles of Customer Happiness Management, Value Creation Management and Community Friendly Management. Missions: To create exceptional automotive value for our customers by harmoniously blending safety, quality and efficiency. With our diverse team, we will provide responsible stewardship to our community and environment while achieving stability and security now and for future generations. Core values: The Hyundai Group's efforts to create a prosperous future and the benefits it will bring are not exclusive in nature. Hyundai strives to be a positive force in the Korean economy and an outstanding Korean corporation in the global arena. 2. Stakeholders: 2.1 Internal: 2.1.1 Shareholders: Currently we have four shareholders: Hyundai Construction Equipment India Pvt. Ltd., Hyundai Asan, Hyundai Elevator, Hyundai Logistics, Hyundai Merchant Marine, Hyundai Securities, Hyundai Research Institute, Hyundai U&I, Hyundai Welding, Hyundai Power Equipment (UK) We will work hard to maximize the investments that these companies have made in creating our company. 2.2.2 Employees:

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Without our employees our company could not function. We will invest in our employees' skills and knowledge, and give them the opportunities to further their own skills and careers in the belief that as they grow and develop so does our company. 2.2 External: Growing brand reputation. Hyundais brand is the second fastest growing brand in the automotive sector. In 2012, Hyundais brand value grew by 24% to US$ 7.43 billion and became the 53rd most valuable brand in the world, according to Interbrand. This is a result of Hyundais excellent quality cars, marketing efforts and growing customer base. Strong focus on R&D. Hyundai has established R&D centers in 6 different locations and has smaller R&D offices all around the world. Firms commitment to innovation yielded positive results and the business has become one of the automotive leaders in producing high quality, reliable, durable and safe cars. It has received many rewards including the latest North American Car of the Year reward in 2012. Effective resource allocation. For the 2011 financial year, Hyundais ROE was 20.6% compared to GMs 19.9% and Toyotas 4%, generating very high returns for the shareholders. In addition, Hyundai was using its assets more efficient than competitors with 7% ROA compared to GMs 5.2% ROA and Toyotas 1.4% ROA. Growth in Europe. While the Europes car sales were falling in 2012, Hyundai was experiencing significant growth in the region. It grew its market

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share in Europe from 2.9% in 2011 to 3.5% in 2012. This growth led to a competitive advantage over its rivals, Toyota and Volkswagen that were incapable to grow their operations. Successful marketing campaigns. Hyundai has launched many successful marketing campaigns through their CSR programs, sponsorship of many sport events and using celebrities to promote their products, which resulted in increased brand popularity. Weaknesses Product recalls. Over 2012, Hyundai recalled more than 300,000 cars in different regions to fix manufacturing and design defects. Product recalls negatively impact Hyundais reputation and could erode its competitive advantage. Hyundai has no presence in Japans car passenger market. Hyundai has pulled their passenger car division from Japan in 2009 due to low sales and weak brand perception. Japan represents a large automotive market and performing poorly in this market leaves Hyundai at competitive disadvantage. Negative publicity. In 2012, Hyundai has been accused over inflated fuel economy numbers. Now the business will face federal lawsuit and will have to reimburse all the damage done to the customers. Opportunities Increasing fuel prices. Increasing fuel prices open up large markets for Hyundais hybrid, electric and hydrogen fueled cars as consumers shift towards cheaper fuel types.

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Global demand for ecological vehicles. Cars that emit large quantities of CO2 pollute air and negatively affect the environment. Consumers are aware of this negative impact and will likely choose fuel-efficient hybrid, electrical or hydrogen fueled cars that Hyundai is currently offering. Changing customer needs. By introducing new car models, Hyundai could satisfy varying consumers tastes and needs for more fuel-efficient, ecological cars and access wider customer group. Threats Exchange rates. Hyundai earns more than half of its revenue outside the South Korea. Exchange rate fluctuations threaten Hyundais profits if the KRW would appreciate against other currencies. Rising raw material prices. Raw metal prices (main raw material for car manufacturers) are rising due to increasing global demand, negatively affecting automotive firms profits. Decreasing fuel prices. Some analysts argue that due to shale gases future fuel prices should drop as a result making hybrid and alternative fuel cars less attractive to consumers. Intense competition. Hyundai faces strong competition from other automotive companies and more than ever competes on price rather than differentiation lowering firms profits.

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5.References:

Web page: Retrieved February 20, 2013 from

http://www.hyundaigroup.com/eng/hyundai/vision.html.

http://www.strategicmanagementinsight.com/swot-analyses/hyundai-swotanalysis.html

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