History Of Hyundai Corporation Development
Automobiles are an everyday part of human life. They take people to and from their destinations as well as goods. People who are thoughtful of the environment give in to the idea that driving a car is the most polluting act people do. Automobile emissions are made up of greenhouse gases such as carbon dioxide (CO2), nitrous oxides, sulfur oxides and carbon monoxide. They are to be held accountable for greenhouse effect which has caused the ozone layer to deplete according to (Philip, 2014). He continued to state that as a result of the ozone layer depletion, climate change and global warming has increased. The earth would have been covered in ice had it not been for greenhouse gases. However, if fossil fuels are burnt in excessive amounts such as diesel and gasoline, then there will be an increase in global temperatures. With that being said, scientists have come up with new models which would limit the amount of gaseous emission from automobiles. The automobile manufacturing industry has undertaken this innovation and are now producing hybrid electric vehicles.
Main Idea - Hyundai's Innovation
A construction firm was founded by Chung Ju-yung by the name of Hyundai in 1947. The Hyundai production firm will continue to grow and prosper in its home of Seoul, South Korea then would soon begin to spread into global markets located throughout Asia by 1965. In 1967 Chung Ju-yung would discovered the Hyundai Motor Company and Hyundai Heavy Industries in 1973. The company then continued to become a powerful multinational conglomerate but in 1997, eastern Asia would suffer a deep and recessive financial crisis that would cause Hyundai to completely reconstruct its commerce strategies and would end up breaking apart the 3 subsidiaries such as Hyundai Motor Group, Hyundai Heavy Industries, and Hyundai Development Company. These Hyundai subsidiaries would lose legal connection to the company yet still retain the name and be overseen by Ju-yung’s heirs. It was just same time that Hyundai Motors Company would purchase their rival Kia Motors according to (Global Brands Cars,2015).
Hyundai Motor Company officially got off the ground in 1968 with the introduction of its very first model—the Cortina. Although Hyundai wasn’t yet on its own—the company collaborated with Ford Motor Company to manufacture the Cortina—the release of the car was the first step in what would be a long and successful journey. Indeed, it was after the rollout of the Cortina that he decided to step up his efforts to create a robust and independent automotive business. In order to realize his dreams of creating high quality, mass produced vehicles for the South Korean public, Ju-Yung brought in a number of British automotive executives and engineers, starting with George Turnbull, formerly the managing director of Austin-Morris. It was only a matter of time, then, before Hyundai began selling its prized creation in the global marketplace. Exportation began with Ecuador, and then rapidly extended all over the world, from South America, to Europe, to North America.
In fact, it was by the middle of the decade, the Pony was the highest selling car in Canada. While Hyundai hadn’t yet broken into the U.S. market, they were developing a stellar reputation in many other countries. Of course, expansion brought with it a number of issues, not the least of which was quality control. While it was relatively easy to sell cars on the new South Korean market, it was a bit more difficult to please foreign car buyers. Executives quickly realized they would have to focus on excellence, as well as expansion, and Hyundai’s long-term strategy of quality progress was born.
Throughout the 1980s, Hyundai grew at an exponential rate, making huge strides in international markets. It wasn’t until 1986, however, that the company hit one of its biggest goals: breaking into the U.S. market. Initially that proved difficult, owing to strict emissions standards, but before long Hyundai met the challenge with flying colors. Despite an initially strong showing, Hyundai wasn’t entirely satisfied. Still under the leadership of founder Chung Ju-Yung, it wanted to push the envelope once again in its constant drive to make quality better and boost standards.
Over the next few years, the company would make huge advances in design and technology, and, by the early 21st Century, Hyundai had become one of the world’s top car manufacturers as stated by (DealerOn, 2018). They also have innovations in motorsports. Hyundai’s aggressive efforts to enhance performance and durability confirms the automaker’s desire for a high performance line of street cars. It was from the understanding from racing that would have trickle down to Hyundai’s vehicles production, transforming Hyundai into a serious performance stadium as a contender, said (Brauer, 2015).
Nowadays, while many things have changed, much else has remained the same. Hyundai’s main plant is still located in Ulsan, where it produced its very first car, only now it is the single biggest integrated car manufacturing center in the world—a testament to the progress the company has made since its humble beginnings as South Korea’s first mass vehicle producer. Hyundai is now proudly the fifth major car manufacturer worldwide, in terms of sheer volume of output with a yearly manufacturing capacity of 1.6 million units, (DealerOn, 2018).
Examples Supporting Main Idea - Blue Drive Project
Environmental responsibilities and stress about the efficiency of fuel is what Hyundai wants to put people at ease. They are optimistic to want to hand down an environment that can be deemed beautiful for the generation to come able to have pure air to breathe in and have a great time driving cars not having to worry about the efficiency of fuel and pollution. This would refer to the market pull because customers are also aware of global warming and they want to know that the cars they are driving will reduce pollution on the air. Hyundai wishes to understand that dream by linking their technology to a future that is eco-friendly. With Hyundai’s car giving great performance, they should have a less energy intake and smart eco-friendly technology that improve efficiency of fuel and deliver unproblematic driving with ease stated, (Hyundai Motor Company, 2018).
People speak on the innovation of the environment friendly technology, they question upcoming energy sources and desires to have a good time with technology that is advance. Peoples needs is the driving factor for the engineering of eco-friendly mobility in the future. New potentials for eco mobility is open based on our inventive perception to eco movement, from pure and never ending Hydrogen, electricity and to the hybrid of energy source. Through research design, materials and combustion engines, we strive to make efficiency better in all areas fuel-mileage related. It matters not the model chosen according people lifestyles and tastes, the experience remains the same. This refers to their technology push as the engineers and scientist would do their research on how to increase the technical performance of the car in reference to (Hyundai Motor Company, 2018).
The ultimate goal of Hyundai Motors ‘Blue Drive’ is to produce cars which does not require fossil fuel to function and produce no CO2. Also, they strive to improve how the cars function as it relates to safety, and it being convenient while they are decreasing fuel combustion and pollution. Hyundai Motor has introduced a number of eco-f friendly technologies with the aid of their ‘Blue Drive’ strategy and has developed eco cars. Hyundai Motor’s green models include a Hybrid Electric Vehicle (HEV), a Plug-in Hybrid Electric Vehicle (PHEV) which is chargeable by using grid electricity, a Fuel Cell Electric Vehicle (FCEV) and a zero emissions battery Electric Vehicle (EV) which is regarded as the ultimate green car as of 2015 according to (Hyundai Motor Company, 2018).
As the word “combination” is implied, Hybrid Electric Vehicle (HEV) combines two power sources of an internal combustion engine and an electric motor. Through their innovation Hyundai has developed of hybrid cars with new and improved efficiency in packaging. Also, there is a great reduction assisted by the Starter Generator operator technology in decreasing the tension between the engine mode and EV for a less hybrid bumpy drive that will do well for the fuel revenue economy. Plug-in Hybrid Electric Vehicle (PHEV) is an advanced hybrid vehicle with extended battery life and greater energy density for a more fuel-efficient and long distance driving in all-electric mode.
Levels of emission are lessened by restoration of the energy from an outer energy power source whether the vehicles are driven on EV mode or HEV mode, PHEV has a significant advantage of providing a greater driving experience. electrical energy is used by Electric Vehicle (EV) and for propulsion they use sources of electric engines and rechargeable high-density batteries. Also, EV aids in the reduction of the CO2 cars emit cowered from an external source of electricity. Through a combination of Oxygen and Hydrogen atoms in a fuel cell sack. Fuel Cell Electric Vehicle (FCEV) stores hydrogen compressed under high pressure in tanks and yields its own electricity for power with no exhaust emissions, stated by (Hyundai Motor Company, 2018).
The Hyundai Motor Group intends to establish a full cast of green models ranging from compact cars to SUVs by 2020. The green automobile market is expected to expand from 2 million units in 2014 to 6.4 million units by 2020. Hyundai Motor is investing in green car technologies in order to become a leader in this emerging market. Since there is a rise in demand for the products, this shows that this was an achievement says (Hyundai Motor Company, 2018). Implications for management of Technology Hyundai’s expertise in the launching of the product and its design and awareness of customers is a part of a unique model of managing the product which is the $66 billion, car company owned by families has just brought to completion. In the 1990s, Korea-based enterprise, as regarded as a transmitter of cheap, cars with low-quality and in the 2000s as a “me-too” of Toyota and Honda followers, in the US has since become the fastest-growing automotive brand.
According to the consultancy Interbrand in 2011, Google, Apple, Amazon, and Samsung were the only companies that improved their brand recognition. Hyundai continued a remarkable performance in Interbrand’s 2012 evaluations. Volkswagen’s Passa and Fort Motor’s were beat by a jury of 50 automotive journalists named Hyundai’s Elantra sedan in the 2012 North American Car of the Year according to (Holstein, 2013). Hyundai has stake a claim to style leadership in part because of the culture of creativity that it has nurtured they have been able to step out from behind its larger Japanese competitors, in which innovation is carried out together by U.S. employees and Korean executives. However simultaneously, Hyundai has, in this case, learned how to encourage local teams to take a chance and compete in search of ambitious and eccentric resolutions.
The company gained an ability through a mixture of central control and local receptiveness, now rooted in its culture, to pick up rapidly turn local signals into product designs. Managers express of operating at “Hyundai speed.” This has enabled the company to release 21 new North American models in five years according (Holstein, 2013). Hyundai is also acknowledged for its ability to extend designs of features among its product lines. It routinely moves technological features from high-end luxury automobiles into much less expensive vehicles. Features like rear-vision video monitors, Push-button ignition, and automatic headlights that once appeared only in high-end marques such as Mercedes and Cadillac, are now widespread on Hyundai vehicles costing $20,000 to $30,000. This means, that if the company does not keep improving then their sales will plummet. And even though the company is pouring such expensive “content” into its vehicles, it enjoys an estimated 9 to 10 percent revenue margin, which is considered high in the auto industry. Those margins are achieved by the company partially because for buyers in the industry it limits promotional discounts; the cars are adequately in demand that the company does not currently need to persuade buyers through incentives.
According to the U.S. Environmental Protection Agency, Hyundai boasts on the best fleet fuel efficiency and the best ownership repurchasing rates, which is a key test of loyalty, according to J.D. Power and Associates. “We’ve got the whole package right now,” says executive vice president Frank Ferrara at Hyundai Motor’s North American sales headquarters in Costa Mesa, California taken from (Huffman, 2012). The biggest problem Hyundai faces in the short term is holding back on production to make sure that it continues to improve on quality. “I’m very proud that the company has made this decision to throttle its own growth,” says Krafcik. “Can you think of companies in any industry who have ever done that? We clearly have incremental demand in markets around the world, yet our company said, ‘We’re going to cap production this year at 7 million units.’” He estimates the company could have sold 10 to 15 percent more vehicles. (Holstein, 2013)
Another potential disruption on the horizon is that the chairman, Chung Mong-Koo, is 74 years old. His only son, Chung Eui-Sun, is vice chairman and boasts a master’s degree from the University of San Francisco. He speaks English well, and is gradually asserting more influence over how the company operates. But there is always a chance that when Chung Mong-Koo steps down, there will be a hard-to-fill gap in upper management. (Holstein, 2013)
