The paper 'Stakeholders in Automotive Industry in Korea' is a great example of a Management Case Study. The Korean automobile industry can be rated as the fifth largest globally, in terms of the volume of production. Furthermore, on the basis of export volume, the industry can be rated as the sixth-largest. Korea has been expanding its automotive industry over the years, for instance in 2009 in spite of the global crisis, the country produced a total of 3, 512,926 vehicles which were a relatively lower performance. However the Korean economy was able to effectively sustain the challenges of the global downturn, therefore the automotive industry is expected to recover positively in 2010.
The automotive industry in Korea still faces challenges that threaten the continued existence of this particular industry, this has resulted in several restructuring strategies within the industry. It is essential to take note of the fact that the automotive industry can not only rely on the sale of cars, no matter how much the industry may shift the business to large scale production and selling of stocks, for effective business responsiveness, but the key stakeholders also have to play a vital role in the management of the organization in order to enhance better performance (Report South Korea 2009). Stakeholders in the automotive industry in Korea The automobile industry in Korea basically fits the framework of the global automobile industry.
The industry is governed by several stakeholders who make the running of the organization more functional and service delivery effectively attained. The main stakeholders in the industry include manufacturers, logistic service providers, customers, and the government. Manufactures Korea has attracted a lot of attention in terms of its manufacturing capabilities, both globally and domestically.
The automotive industry in Korea is mainly supported by domestic players. Despite the existence of foreign manufacturing companies, the key players in this market are particularly local manufactures. They include; GM SSA, KIA, NG-YOUNG -DAE-WOO, RENAU-SAMSUNG, HYUNDAI The Hyundai Motor Group which is linked to the Kai brand is significantly the fastest developing international auto group. The Korean automotive industry bases its Car making activity on collaboration with suppliers. This increases the competitive advantage of the carmakers. According to a review based on Resources, when a firm has inadequate resources, its capability to maintain the competitive advantage becomes difficult, therefore the aspect of strategic alliance or collaboration is very much essential.
For instance, in order to manufacture the Toyota brand, most manufactures in Korea utilize technological capability and knowledge that is acquired from suppliers, through building a wide network for knowledge sharing. The collaboration between manufacture and suppliers assists car makers to deal with the rapid changes in technology. New car developments basically require the utilization of quality design, however, the increasing complexity of car parts drives the basic need of collaboration.
Such collaboration can be perceived to result in the gain of developing monopoly and creating value. The car maker’ s general performance is calculated with respect to aspects such as quality competitiveness, cost, product diversity, and customer satisfaction. Through the collaboration strategy, the Korean automotive industry has to great extent tried to reach these particular targets (Yin 1994).
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