Balanced Scorecard Analysis of Hyundai and Honda
Two of the major players in the global automobile industry are Honda and Hyundai (also known as Hyundai Motor Group). These business organizations have global scope of operations, and they have maintained considerable growth and expansion in recent years despite the slowdown of the Western economies. The positions of Honda and Hyundai emphasized the capabilities of these firms to maintain a positive and profitable strategic outlook, especially in terms of their operations in various regional markets other than the United States. While the American automobile market has encountered major obstacles associated with the 2008 financial recession, these companies have maintained considerable growth in revenues in developing economies, although they suffered in terms of losses or decline in revenues coming from within the American market (Blackburn, 2010). The discussion in this document presents an examination of the various characteristics of these business organizations, particularly measurements or metrics used, knowledge management, the situation of their workforces, as well as the characteristics of their operations focus and results. It is argued that these business organizations have considerably positive outlooks based on their operational characteristics using some examples from the balanced scorecard perspectives. As a result, both of these organizations are also in respective strong positions to compete against each other in the global automobile market. Hyundai is a large business organization with multinational operations. The organization is based in South Korea, and is generally considered as the biggest automobile company based in that country. However, it is important to note that this business organization is not necessarily limited to the manufacturer of automobile products, although the company is most popularly known for its automobiles. For example, the company also manufactures auto parts, as well as steel. The company also manufactures defense vehicles for South Korea, as well as heavy industrial tools and machinery. Furthermore, there is also a part of this business organization that manufactures electrical products. However, for the purpose of this discussion, emphasis is given more on the automobile business of this company. The headquarters of companies located in Seoul, but the actual scope of operations is worldwide. It has significant presence in the American market as well as in Europe. It also has increase extensive presence in markets in the developing economies, especially in Southeast Asia (Hyundai, 2013a). On the other hand, Honda is also a large business organization based in Japan. This Japanese company is most popularly known for its automobile products. However, similar to the case of Hyundai, Honda is also a manufacturer of other products, such as aviation products or aviation parts, as well as telematics products. The company is also well known for its production of robotics machinery. Furthermore, the company is currently involved in the production of bikes and motorcycles, as well as solar cells (Honda, 2013a). The headquarters of this company is located in Hamamatsu in Japan, but the scope of operations of the business is worldwide. It has major operations in the United States, Canada and the European markets. Furthermore, similar to the case of Hyundai, Honda also contains extensive operations in developing economies, such as the countries of Southeast Asia (Honda, 2013a). In terms of management measurement/metrics as well as knowledge management, business organizations Honda and Hyundai employ extensive R&D activities as well as business strategic formulation. The R&D departments of these business organizations are primarily the ones responsible for knowledge management pertaining to product development and design. For example, both Honda maintains R&D efforts for the purpose of developing advanced robotics,...
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