INTRODUCTION
1.0 INTRODUCTION:
“In Hong Kong, a German businessperson is driving a Lexus; he’s wearing Bruno Magli shoes, Irish cashmere socks, Calvin Klein underwear, and an Armani suit, with a Gucci belt. He has a Mont Blanc pen, in his Italian shirt. He’s going to meet an American investor at a KFC restaurant, for a Coke. After lunch, they stop for a Baskins-Robbins (actually a foreign firm) ice cream sundae. --- OK, that’s a stretch. When he gets home, sitting on an ottoman, he has an Absolut vodka nightcap, while listening to American country western music.”
This has become the normal lifestyle of an individual in the globalized era. This may sound very simple and usual to a normal man but for creating this environment lot of companies has taken many risks, faced n number of challenges and have created strategies to overcome those challenges. Only a few companies are able to sustain and develop further in this global environment. This study is to find the challenges faced by the companies in this globally developed world and also the study concludes by finding out the strategies followed by the companies to maintain their standards in this market. The author is paying more attention to Hyundai Motors based in India as the author is from India and has many friends and relatives working in that particular organization. This has enabled him to collect and gather the information from the employees working in Hyundai Motors.
The beginning of Economic Globalization in 1980’s immense wealth has been created world over. This growth has helped many countries in their development. Still there were many who faced a dip in their growth rates. Many companies also started to explore different world markets to widely spread their business. Many Multi nationals created immense GDP for their own countries. But still there were many setbacks which arose due to this and still existing. Notably India had and is still facing problems due to this. India still is in developing stage because many of our skilled workers are wasted. They work with foreign companies based here. Yes there are notable changes happening but still the growth rate is very slow in India due to this problem. Since the author is from India he has decided to study the effects caused by Economic Globalization in India.
1.1 RESEARCH AIM:
The main aim of this study is to find the impact of Economic Globalization in Hyundai Motors. This study focuses more on the challenges faced by Foreign Investors in India (Hyundai Motors India) and the challenges faced by the companies in the global market. The study concludes by analyzing the strategies adapted by Hyundai Motors to sustain in the Indian and global markets. Since the author has chosen Hyundai Motors India the study also covers the FDI policies and recent FDI status in India.
1.2 RESEARCH OBJECTIVES:
• To find challenges faced by foreign investors in India.
• To find challenges faced by the companies in global market.
• To find Hyundai Motors response to challenges in Indian and Global automobile sector.
• To analyze the impact of Economic Globalization in Hyundai Motors located in India.
• To conclude the investigation by finding out strategies used by Hyundai Motors to sustain in the global market.
1.3 SCOPE OF THE RESEARCH:
The outcome of this study will help countries understand the impact Economic Globalization in Multinational Companies like Hyundai Motors. The challenges faced by foreign investors in India and the challenges faced by organizations in the Global Market is taken for study and their response to those changes has are analyzed. This study will be helpful for companies that are planning to start a new venture in the global market. There is very less studies have been conducted earlier in this topic thus this will be a real useful bit resource for all organizations in the future. Also, this study will benefit people who are planning to work on the Global Market.
1.4 RATIONALE OF THE STUDY:
The purpose of this study is to understand the globalization concepts initially, and then the challenges faced by the companies in the Indian and global market are studied for the better knowledge of the globalization. Then to understand the impact of economic globalization in India by the factors in which the country expand its market like the FDI. Then to find out the risk causing to the developing nations by means of the economic globalization and finding out some risk prevention techniques to solve the effects of economic globalization by referring various researchers papers and study work.
1.5 GLOBALIZATION:
“Globalization” has completely shrunk the world. This has paved way to strengthen the liaison between people of different cultures and their trade activities. (Brittan, 1998) The term Globalization is often compared with Economics as it is considered as the key force in creating wealth. It has also immensely reduced the international trading cost. As a result the load of the global traders has been lessened. No country can ignore this most popular theme. This term is seen in five different notions, Technological, political, cultural, economic and social. (Walker en Fox, 1999)
1.6 CHALLENGES FACED BY THE COMPANIES:
Some of the most important obstacles that any company would face in an Economically Globalized world are change, complexity and competitiveness. Hence this research is based on these three challenges faced by Hyundai Company in its operation.
1.6.1 CHANGE:
Change is only one phenomenon that is permanent in this world. Since the company’s emergence there had to be done numerous amount of changes in the management style of the company. It is also clearly mentioned that since during the start of the firm they were only confined with their local markets but still had to face immense risk of their existence. Next it is also mentioned about the continuous changes that Hyundai made in its organizational structure. It is also mentioned that they were very careful when it came to framing a structure. Even today they are researching about the best organizational structure that is both beneficial for the company and their employees.
1.6.2 COMPLEXITY:
This is another important issue that is mentioned clearly in this research. Since the advent many new technological improvements it has made the management of a company very difficult and complex. It is never a simple task to run a company to success in this fast paced changing world. It is also mentioned about the different strategies that Hyundai has framed to stay competent in this global market. It is because of their well-organized management plan, their prompt organizational structure and the effectiveness in managing its resources that has enabled Hyundai to achieve its success.
1.6.3 COMPETITIVENESS:
This is another important obstacle that Hyundai is facing. It is also very clearly explained how the company is dealing this issue. This is the most important and the most difficult obstacle that needs to be soon adapted by the companies. Else it is very difficult for any organization to last long in the global arena.
The author has also very clearly explained that the world will face many changes. This will only make Hyundai’s functioning is more complex with high competition. It is because of its unique and stands out management style that the company is moving from strength to strength. Now we all know that Hyundai is the world’s largest Automaker, who is causing immense competition to its competitors.
1.7 ORGANIZATION’S RESPONSES TO INDIAN AND GLOBAL CHALLENGES:
Globalization has completely changed each and every walk of life. There are many challenges that a company need to face for its very existence in the local and global markets. These challenges are something that is unavoidable. Avoiding which will have terrible consequence against the company. So as a matter of fact organizations have started to be proactive in its approach. This is the only way that a company can excel in this strong competition. Companies have also started to follow a management style that is unique in every aspect of their action. Competition is so immense that they are forced to maintain at most secrecy by not disclosing their plans outside the office premises. Companies have started to give equal care to both their existing and new customers.
Change is something that is unavoidable, specifically in this competitive world. Failing to change will certainly result in negative consequences. The only way to cope with this is getting adapted to these different changes occurring in this world. This scenario has completely complicated the very presence of the company’s employees and in turn the organization. The above mentioned points increase the magnitude of competition in both the local and world markets. The main reason of this huge competition is the emergence of many companies that manufacture same products. The companies for this reason have decided to cut their costs and improve the quality of their products. Every company has adapted a new mantra to face these challenges that is “customer is King”.
1.8 HYUNDAI MOTORS:
Hyundai Motors is a Korean based Multi-National Company which was started in December 29th, 1967 by Mr Chung Ju-Yung. The establishments head quarter is in Seoul, South Korea. It is regarded as the world’s fourth biggest motor company. In 2010, the company recorded a remarkable sale of over 40 lakh vehicles globally.
The firm owns the biggest ever combined automobile developing facility in Ulsan. In this place alone more than 1.6 units are designed annually. It has also created good future for more than 75,000 workers globally. Their products are sold in almost 192 nations all over the world. During late 90’s the four biggest companies’ of Korea namely, LG, Daewoo, Samsung and Hyundai together created 40% of Koreas total GDP. Hyundai has adopted few methods in reducing its manufacturing expenditure. They started to borrow labor from its neighboring nations and used their fresh goods. The Indian economy on the whole has face profits and losses due to constant production changes occurring in leading company’s like Hyundai.
1.9 SUMMARY:
The Research will clearly be an evidence for Globalization and its impact in Hyundai Motors India. The study was primarily concentrated on:
• Impact of Globalization in Hyundai Motors India.
• Challenges faced by companies in the Global Market.
• Steps to be taken to respond to the Globalization.
Fig. 1.0 Represents The Structure Of This Research Study.
Source: Self
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