Daewoo General Motors International Case Essay

Q 1. What atomic number 18 the returnss and disadvantages of a hands-off, de centralize management approach?Advantages of decentralizationDecentralization will non run low unless you really delegate both(prenominal) province and authority. This means that the final stopping points moldiness be do at that reject level. You beneficial cant beat a decentralized system. It gets decisions closest to the level where the follow up really is. And it really does something for people. The executives are flat basically running stemma of their own. The high societyhas corroborate their authority by making it precise clear it will non permit people dissatisfied with their decisions jump all over to the home office office. Finally, getting the decision-making out of the home office creates something standardised a family quality in the outlying location. People t pipher begin to depend on separately other.Disadvantages of DecentralizationThis means that the final decisions must be made at that lower level. Two things stand in the way of this working. One isthat the people who now devote the authority may not permit go of it. The other is that the people at lower levels may not penury to accept it. One of the problems, which decentralization aims to solve, is that the foreland executive never has enough speckle to entail about the major problems impact the future of the operation.Q2. How Can Daewoo Stay private-enterprise(a) with the Nipponese ?Auto industry is big to maturation countries is this intensive linkage. Most of developing countries selected car industry as ane of the prime elements for launching industrialization in the country. An independent auto maker and to be ball-shaped top ten as in Daewoos long orbit plan, with 3.5 million production in internal (3.0 million) as healthful as in overseas plants (2.5 million) could not achieved without the triumph of world(prenominal)ization.The leadership in national market migh t be some other important factor. Korean auto makers including Daewoo has tomeet the scraps from the Japanese auto industry in domestic market from the beginning 2012. The severecompetition in man auto industry induces the forecasting that al unneurotic orbicular top ten auto makers could survive in near future. We drive more time to see whether or not Daewoo could meet the success the globalization and how Korean automaker, Daewoo could getover the manifolds challenges to be a global auto maker & key to success is the policy of Globalization.Q.3 . What were some of the controllable and unwieldy factors in this case? How should Mr. Kim have responded to those factors?governable factorsKim deserves the most credit for the conglomerate initial success and responsibility for its ultimate failure Despite Daewoos initial achievements, the monetary crisis fully exposed the weakness of its voiceless governancestructure. The concentration in decision-making power turn out fatal wh en the conglomerate faced a crisis and Kims business acumen, ethics and principles faltered. move to its roots, Kim viewed the crisis as an opportunity for Daewoo to expand, not retrench, by acquiring distressed companies and turning them around. Kims autocratic control further centralized and decision-making suffered as a result of a generation change of his closest advisors. Kim had personally recruited many another(prenominal) of these senior executives and they had grown together with the conglomerate expansion Until the mid-1990s, the key executives that skirt Kim consisted of those that had been with him since Daewoos establishment.Uncontrollable factorsThe representative directors, boards of directors and statutory auditors of Korean conglomerates failed to fulfill their role as fiduciaries working on behalf of the interests of stockholders at large. They did not prevent controlling shareholders from taking advantage of non-controlling shareholders and other stakeholders as a result. Non-executive distant directors did not exist until they were required in 1998. This weakened potential checks and balances against the controlling shareholder Weak corporate governance of conglomerates and their gigantic network of companies had a devastating military unit when the1997 financial crisis hit.Q4. What do you think of Daewoo elaborateness into europium? What are the advantages and risks for the society?AdvantagesDaewoos currently at the crossroads of its European expansion in the automobile market. GM Daewoo has been successful in managing to market essentially the same cars in many part of the world, particularly in the NorthAmerican and Japanese markets. Executives are wondering whether they should adopt more localize product level opment in Europe or not.RiskThe rebranding comes as GM seeks to make a comeback in the global auto market, after having been hit by the global financial crisis, terminate the worlds biggest-ever initial universal off ering in November. Its South Korean unit said that itwill drop the label GM Daewoo, dogged by blackball publicity stemming from bankrupt South Korean automaker Daewoo motor acquired by GM in the early 2000s. It will portray the Chevrolet brand for all of its naked as a jaybird products this social class. The company name GM Daewoo Auto & technology Co will also be replaced by GM Korea Company in the first quarter.Q 5. Why do you think GM acquired the company, while cut across did not?In November 2000, the Korean government officially announced Daewoos bankruptcy and its assets were designate on sale. Amid controversies and almost a year of negotiations with the Korean government, GM signed a preliminary withstandment in September 2001 to buy Daewoos assets for $1.2 billion.Reason why ford did not acquired DaewooFord pulled out of its planned $7bn (5bn) putsch of Daewoo Motor, the struggling South Korean car maker, daysbefore a deal was due to be signed.Company said that it had not been possible to agree on proposals which were in the interest of both companies and its with drawal was a business decision.Ford, which has been conducting bustling inquiries, had sought to reduce its original $7bn proffer to about $ 5bn to reflectdeterioration in Daewoo Motors assets.Daewoos creditors estimated in that the groups motor business had liabilities of $16.4bn, against assets of $ 10bn and as be grammatical case company feels that Its a costly decision and at that time in 2000 Ford also suffering for its near shadower share prices.Q.6 What problems can GM-Daewoo expect in the future?GM General Motors like many multinational automobile manufactures has made the decision to excel in many researchand development operations Although the countries relatively new political stage, increasingly stable delivery and improving infrastructure has presented crotchety opportunities for increase foreign direct investment conducting business for the, still presents a numb er of unique challenges.General Motors was not the first or the sound automobile manufacture to enter into global automobile market presenting the unique challenge of overcoming the unique conditions of global business practices while still maintaining competitive advantage.Lowered tariffs for automanufactures has cause an influx of assembly operations from closely all the major automobile manufactures however unlike its competitors, General Motors General Motors has well-educated how to carefully and effectively conduct business.General Motors success with its joint hazard agreements and research developments has even led them to into putthem global perspective.