1

Internship Report

“ORGANISATIONAL STUDY OF HYUNDAI

MOTORS” (DESK RESERACH DURING COVID-19 PANDEMIC)

BY,

NISCHAL PRASANNA
(1BM20BA052)

Submitted to
Department of Management Studies & Research Centre

In partial fulfillment of the requirements for the award of the degree

of MASTER OF BUSINESS ADMINISTRATION

Under the guidance of

Internal Guide
Assistant Professor
SMITHA SHENOY

Department of Management Studies & Research Centre

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CERTIFICATE

This is to certify that NISCHAL PRASANNA bearing USN 1BM20BA052, is a bonafide student of
Master of Business Administration course in the Department of Management Studies & Research Centre,
B.M.S. College of Engineering, Bengaluru (An Autonomous Institute under Visvesvaraya Technological
University, Belgaum (2019-21 Batch). The Internship report on “Organizational Study of “HYUNDAI
MOTORS” (Desk research during Covid Pandemic 2021) is prepared by me, under the guidance of
Dr.SMITHA SHENOY, in partial fulfillment of the requirements for the award of the degree of Master of
Business Administration of Visvesvaraya Technological University, Belgaum, Karnataka.

Signature of Internal Guide Signature of HOD Signature of Principal

SMITHA SHENOY Dr. Shuba Muralidhar Dr. B. V. Ravishankar

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DECLARATION

I, NISCHAL PRASANNA, hereby declare that the Internship report on “Organizational Study of
HYUNDAI MOTORS” (Desk Research during Covid Pandemic 2021) is prepared by me under the
guidance of, DR. SMITHA SHENOY, Department of Management Studies & Research Centre, B. M. S.
College of Engineering, Bengaluru.

I also declare that this Internship work is towards the partial fulfillment of the university regulations for the
award of the degree of Master of Business Administration by Visvesvaraya Technological University,
Belgaum.

I have undergone an Internship for a period of Four weeks. I further declare that this project is based on the
original study undertaken by me and has not been submitted for the award of any degree/diploma from any
other University / Institution.
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ACKNOWLEDGEMENT

I take this occasion to express my heartfelt thanks to everyone who made this work a success.

I would like to express my gratitude to Dr. B. V. Ravishankar, Principal, B.M.S College of Engineering
and Dr. B N Shubha, Head of the Department of Management Studies and Research Centre for providing
us congenial environment to work in.
I would like to express my special thanks to Dr. Prathima Bhat K, Faculty, Department of Management
Studies & Research Centre, B.M.S. College of Engineering, Bangalore, for her able guidance and support
in the most warm and friendly manner.
I would also like to express my thankfulness towards the members of the Management of B.M.S College
of Engineering for their kind encouragement which helped me in completion of this project.

NISCHAL PRASANNA
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EXECUTIVE SUMMARY

The world’s fifth largest industry is the automobile industry. In 2019, India was the world’s fifth
largest manufacturer of cars and seventh largest manufacturer of commercial vehicles. The automotive industry
produces a great range of automobiles and auto-companies producing to both the foreign markets as well as the
domestic. The Indian government obtained licenses for the automotive industry for various firm activities.

In India, most of the Indian automobile manufacturers banked upon foreign technologies. But the
technologies have changes over the years and currently, the Indian auto manufacturers are using their own
technologies to manufacture the products. One of the fastest growing industry is the automobile industry.
There was no variety of cars or variety of designs available in the Indian markets. But the scene has changed
over the years. Today, the Indian market has variety of categories in the cars like, Sedan, SUVs, and MPVs.
Hyundai, Maruti Suzuki, Tat Motors, Mahindra, etc., are the top manufacturing companies running in India.

The main objective of this study is to find out aspects related to organization structure, staffing, decision
making etc. related to Hyundai Motors. Through the organization study immense knowledge of the
functioning of the organization and its performance in a complex market environment was acquired.
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TABLE OF CONTENTS

Chapter Particulars Page No.

1 Industry Profile 06-11
2 Company Profile 13-25
2.1 History 14-15
2.2 Type of business the company is involved 15-21
2.3 Vision 21
2.4 Mission 21
2.5 Quality policy 21-22
2.6 Future progress and projections 25
3 Current Strategies 26
4 Framework 27-29
4.1 Mc. Kinsey’s 7’s Model 30-42
4.2 SWOT Analysis 42-50
4.3 PESTLE Analysis 51-54
4.4 Financial Statement Analysis 55-56
5 Learning Experience 57

Chapter-1: Industry Profile

Automotive Industry
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Introduction
The world’s fifth largest industry is the automobile industry. In 2019, India was the world’s fifth
largest manufacturer of cars and seventh largest manufacturer of commercial vehicles. The automotive industry
produces a great range of automobiles and auto-companies producing to both the foreign markets as well as the
domestic. The Indian government obtained licenses for the automotive industry for various firm activities.

Figure 1

MAJOR PLAYERS IN AUTOMOTIVE INDUSTRY

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In India, most of the Indian automobile manufacturers banked upon foreign technologies. But the
technologies have changes over the years and currently, the Indian auto manufacturers are using their own
technologies to manufacture the products. One of the fastest growing industry is the automobile industry.
There was no variety of cars or variety of designs available in the Indian markets. But the scene has changed
over the years. Today, the Indian market has variety of categories in the cars like, Sedan, SUVs, and MPVs.
Hyundai, Maruti Suzuki, Tat Motors, Mahindra, etc., are the top manufacturing companies running in India.

MARUTI SUZUKI
Maruti Suzuki is an automobile manufacturer where the products or the cars are very unique in kind or the
quality. It holds about 53% of the market share in the Indian passenger car market. For both domestic market
and exports, 1.6 million assorted vehicles were manufactured by Maruti Suzuki. There are three manufacturing
plants in India. Swift Dzire, Brezza, Alto are the top selling cars in Maruti Suzuki.

HYUNDAI INDIA
The second largest automobile manufacturer in India is the Hyundai Motor. To the countries across Africa
and the Middle East, Hyundai is the India’s number one passenger car exporter. In Hyundai, the Santro was a
great model and which helped Hyundai to come close to the lovers of cars. Around 527320 cars were
manufactured by Hyundai Motors for the domestic and export markets. Santro, Grand i10, Xcent, Elentra,
Verna, Creta are the top selling cars in Hyundai Motors.

Tata Motor
Tata Motors is the top four vehicle brand in India. Tata’s products include trucks, buses, commercial vehicles
and cars. Tata produces pasengers cars in different types like, hatchback, sedans, MUVs, and SUVs. Tiago,
Safari, Nexon, hexa are the top selling cars.
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MAHINDRA AND MAHNDRA

Mahindra and Mahindra produced a variety of tractors which lead to largest tractors manufacturers and also
the chart both in India and the world across. Apart this, Mahindra was great in manufacturing SUVs in the
country. Bolero, XUV500, XUV300. Scorpio are the top selling cars.

HONDA CARS
Honda Motor entered the Indian automobile market in the year 1995. Honda City, Jazz, WRV, Accord,
Amaze are the top selling cars in Honda. The automobile company manufactured around 178755 vehicles in
the year 2017-2018.

CONTRIBUTION TO GDP
The Automotive sector in India is valued at $93 billion currently and is growing at a steady pace. The
automotive industry contributes a whopping 49% of India’s manufacturing GDP. In 2018, the Automotive
Sector contributed to 7.5% of India’s total Gross Domestic Product (GDP). While this percentage dropped to
7% in the current year, owing to COVID-19, new emission norms and the economic downturn, experts believe
that it may show an increase towards the end of this year. From March 2020 to April 2020, all automotive
manufacturers and dealers were shut down for a period of 40 days, further contributing to the decline in GDP.

As a result, the GDP, which saw an increasing trend began to feel the pinch of an unexpected and
unforeseeable downfall.

Automotive Industry Trends and Technologies

ARTIFICIAL INTELIGENCE
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AI technologies like deep learning, machine learning, and computer vision discover robotic automation
applications inside the future trends of the automotive industry. AI guides the self-driving or Autonomous cars,
helps the drivers in terms of safety, manages the fleet, and enhances services like vehicle insurance and
inspection. Artificial intelligence further finds applications in automotive manufacturing, the rate of
production, acceleration and helps to bring down the costs. Another best example of AI Development
Solutions for Businesses and Enterprises in the automotive industry is Chabot’s. They can help a bid hand in
deducing the manpower and efforts along with satisfying and serving customer queries.

AUTONOMOUS VEHICLES

These are self-driving vehicles. They focus on a simple goal to decrease a human driver’s requirements
and look forward to bringing an evolution in daily transportation. Stocks of AVs widens the scope of last-mile
deliveries, reduces the overall downtime, and aims to convert the concept of transportation safe and secure by
minimizing the accidents caused by human drivers due to negligence.

DATA ANALYTICS

In the generation of big data, advanced data analytics notifies several decisions of a specific vehicle’s life
cycle. Data collected from the vehicles qualify predictive maintenance, alert the authorities in cases of
emergencies or accidents and notify the managers about the fleets. With the help of predictive analysis, car
manufacturers can take decisions on their annual sale purchase and target for production. Additionally,
customer automotive data find the app to improve supply chains, driving more sales, increasing the upcoming
new vehicles’ product design.

AUTOMOTIVE INDUSTRY IN NEXT FIVE YEARS

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There can be seen a drastic change in the automobile sector, where the cars are electrified, autonomous,
shared and also connected cars. The youngsters play an important role in driving the transformation of the
automotive industry. There are some technologies where we may expect different trends in the coming five
years;

 Electric vehicles

The Delhi government already started giving the awareness of the electric vehicles which are way too
benefits for the people. In order to avoid the emission problems, that could only be possible because of the
electrification of the vehicles. So electric vehicles will account 10 percent of new vehicle sales by 2025.

 Driverless cars

Artificial intelligence progress can really help in making cars of driverless. Even in the complex traffic
situations, there is no need of human intervention. The vehicles can sense the environment and also can operate
without human requirement or involvement.

 Connected cars

Now a day, everything can be connected via internet or Wi-Fi, so the cars can also be connected now.
Since the cars are becoming smarter, just like smart phones, the cars can also be connected via internet. The car
will be having some sensors where there will be an access for the requirement of drivers and passengers.

 Car sharing

Carpool, car rentals started picking up in India for the past couple of years, but due to pandemic there are
some complications in the car-sharing facilities. As the COVID-19 is controlling, we can expect that the
carpooling and car sharing or rentals can return to its former strength.

The development of the driverless, electrified, car sharing, connectivity, technology will lead to an increase
in the rate of innovation in the automotive industry. This can help the environment, and also can bring a lot of
new products to the Indian market.
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CHAPTER-2
COMPANY PROFILE
Hyundai Motor Company was founded in 1967 and has expanded to become the Hyundai Motor Group, which
has been rated as the world's fifth-largest carmaker since 2007 and now encompasses over two dozen auto-
related companies and affiliates. Hyundai Motor presently sells over one million high-quality automobiles,
including sedans, SUVs, and trucks, after exporting its first independently-built vehicle, the Pony, in 1976.

In 2011 North American International Auto Show in Detroit, Hyundai Motor Co., the world's fastest-growing
automotive corporation by brand, unveiled its new brand strategy and statement.

“New Thinking. New Possibilities” is Hyundai's new brand slogan. This includes Hyundai's new brand idea,
"Modern Premium," which strives to deliver emotional value and experiences beyond expectations to
customers through fresh thinking and new possibilities. The new brand direction also reflects the spirit of
change at the automaker, which has experienced significant expansion across the board.

“Today's customers don't believe that pricey cars with needless equipment are premium,” says the company.

Hyundai Motor India (HMI), the country's second-largest automaker, is a wholly-owned subsidiary of Hyundai
Motor. Hyundai inaugurated its second facility in India in February 2008, ten years after the company began
operations there. Hyundai Motor's capacity in India has been doubled to 600,000 units per year thanks to the
US$1 billion new facility, which was built in a record 13 months. The second facility is adjacent to the first
plant on the same 525-acre land in Sriperumbudur, Tamil Nadu.

The new plant will primarily produce Hyundai Motor's latest offerings in India, the i20 and i10, both of which
have won the most prestigious "Car of the Year" accolades from the industry's major publications.
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HISTORY

Figure 2

Hundreds of firms pioneered the horseless carriage in the 1860s, which launched the automobile industry.

For several decades, the United States was the world's leading producer of total automobiles. Before the Great
Depression, the globe had 32,028,500 vehicles in use, with the United States producing over 90% of them.

Motor Company was founded in 1967, and the Cortina, the company's debut model, was released in 1968 in
collaboration with Ford Motor Company. In February 1974, Hyundai hired George Turnbull, the former
Managing Director of Austin Morris at British Leyland, to create their own car. He then hired five more top
British automobile engineers. Kenneth Ba, a body designer, was one of them.
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Hyundai began exporting the Pony to Canada in 1984, but not to the United States, because the Pony failed to
meet the country's pollution rules. Sales in Canada much above estimates, and it was at one point the best-
selling vehicle in the country. The one millionth Hyundai automobile was produced in 1985. Hyundai offered a
locally produced vehicle until 1986, when the larger Hyundai Grandeur was introduced.

TYPES OF BUSINESS THE COMPANY INVOVLVED

1. HYUNDAI ELEVATOR

Material handling systems, parking systems, including elevators and escalators that connect areas and people.
and platform screen doors (PSDs) that quickly, easily, and effectively develop business competitiveness and
social infrastructure. When we recognise technology that is even more unique, our lives become even more
unique and enriched. Hyundai Elevator will always be there for you as a trusted partner, even after modern
technology has been implemented.

Hyundai Elevator announced its ‘Vision 2020' in 2017 and outlined particular goals based on the vision motto,
‘Go Global!' Increase overseas sales to break into the Global Top 7 by 2020; lay the framework for long-term
success. Hyundai Elevator's commitment to meeting with customers is demonstrated by the Vision House.
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Figure 3
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Figure 4

2. HYUNDAI MOVEX

U& Terminal Container is a Terminal Operating System developed by combining the global maritime shipping
company Hyundai Merchant Marine's terminal operations know-how with Hyundai U&I's state-of-the-art IT
technology, and as such, it is the solution with the largest market share among terminal operating systems in
the domestic market.

Hyundai Movex is the dominant domestic player in the cold storage sector, offering a full range of system
engineering services, including consulting, planning, installing, maintaining, and replacing automated logistics
solutions. Hyundai Movex has been a core division of Hyundai Elevator Co., Ltd. for more than 30 years. We
design the best logistics system to help our end customers improve their competitiveness by combining our
expertise and know-how from numerous sectors.
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Figure 5

Figure 6

3. ABLE HYUNDAI HOTEL AND RESORT

Banyan Tree Club & Spa Seoul is the award-winning Banayan Tree Hotel & Resort's first urban resort. For the
first time in Korea, Banyan Tree is located on 70,000 square metres in Namsan, in the heart of Seoul, and
offers a private members' club as well as hotel services. You can relax and unwind in peace away from the
hustle and bustle of everyday life.

Each hotel and club complex has 50 rooms and suites with their own distinct style and give the ideal resting
atmosphere.
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Since its grand inauguration in 2010, Banyan Tree Club & Spa Seoul has flourished with the full support of our
members, ideally blending "the abode of souls," Banyan Tree philosophy, advanced club culture, and Korean
family culture. You may enjoy not only the club, Festa, Hotel, Oasis, and Golf Lounge, but also the Kids Club,
one of Banyan Tree's representative facilities, which provides the best play area as well as a fantastic learning
environment for children. Through our partnership, you may also be eligible for discounts or privileges.

Figure 7

Figure 8
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4. BLOOMVISTA

Figure 9

Figure 10

'High-tech Conference System' is a term used to describe a system that

In accordance with its size and function, the Bloomvista provides an appropriate conference atmosphere. A
variety of conference rooms and the most up-to-date conference facilities (such as digital podiums, multi-
vision, and so on) increase conference efficiency and effectiveness while ensuring intense focus.

Staying in the woods has 292 rooms of various types. Because the Bloom view is surrounded by the Namhan
River and Mountains, it has a natural welcoming ambiance and a modern decor that allows all guests to enjoy
genuine healing in a serene setting.

5. HYUNDAI INVESTMENT PARTNERS

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Hyundai provides investment advisory and business support services based on in-depth analytical skills,
extensive investment experience, and high ethical standards in order to support the growth of potential high-
tech ventures and undervalued companies, assist investors, and promote national economic prosperity.

HYUNDAI VISION
By investing in mobility services, forming tight partnerships with leading mobility service providers, and
expanding the role outside the automotive transportation sector, Hyundai Motor Company is working to
provide everyone the freedom to move. By assisting in the development of hydrogen as an economically
feasible energy source, the company will play a critical part in the global society's shift to clean energy.

HYUNDAI MISSION

To provide the consumers with great automobile value by balancing safety, quality, and efficiency. They
provide responsible stewardship to the community and environment with varied staff, establishing stability and
security for current and future generations.

THE QUALITY POLICY

Our guarantee to you, our customers, is that: When you arrive, we will swiftly attend to you. Listen carefully to
your concerns and requirements before agreeing on the work that needs to be done on your vehicle. Explain all
of the repairs that will be required in detail, as well as the associated expenses. Set a date for when your
vehicle will be available to be picked up. During the day, we will only work on your vehicle with fully
Hyundai-trained personnel. Check for any Hyundai-recommended software updates and install them for free. If
we find any parts that need to be changed, we'll make professional recommendations and explain whether they
need to be replaced right away or at a later time.

Before beginning any more work, get your permission first. Only use original Hyundai components. Make sure
the vehicle is returned on schedule, and give you a courtesy call to let you know it's ready, clean, and
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showroom-ready. We will explain the invoice to you upon collection to ensure that you understand the work
that has been done. Following your visit, please contact us within three business days to confirm that you were
pleased with the service provided and to suggest any future improvements to our service.

FINANCIAL TARGETS
Hyundai revealed updated mid- to long-term financial goals in its Strategy 2025 roadmap, which include a
KRW 60.1 trillion investment by 2025, an 8% operating profit in the automotive industry, and a 5% global
automotive market share. This is an improvement to the strategy outlined in December 2019, and it will be
implemented despite market conditions worsening as a result of the epidemic.KRW 36.6 trillion will be spent
on R&D and capital expenditures to improve existing enterprises' competitiveness, while KRW 23.5 trillion
will be spent on future technologies such as electrification, hydrogen fuel cells, UAM, and driverless vehicles.

Due to the full-scale deployment of the hydrogen business and the growth of the EV portfolio, investment in
electrification and hydrogen industries surged dramatically to KRW 14.9 trillion from KRW 10.4 trillion
declared last year.

Despite the global market uncertainties generated by COVID-19, Hyundai Motor will continue to pursue its
8% operating profit margin objective for the automotive sector by 2025 through cost innovation in order to lay
the groundwork for long-term success. In the case of internal combustion engine vehicles, which are likely to
revive in worldwide demand following COVID-19, the corporation will concentrate on regaining profitability.
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ORGANIZATIONAL STRUCTURE

Figure 11

COMPETITIORS INFORMATION

 Toyota Motor
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Toyota, a major Hyundai competitor, is a well-known automobile manufacturer based in Aichi, Japan, that was
founded in 1937. Toyota produces a variety of automobiles that are designed by their team in order to suit
market demands and compete with its competitors. It has a stronghold in research that has led to the
development of motor vehicles. Toyota makes automobiles, SUVs, 4WDs, and hybrids, among other things.
Toyota is rated sixth in the world in terms of revenue. With the support of their massive human strength, the
corporation manufactures around 10 million vehicles per year. Toyota automobiles are considered before
making a purchase decision. Toyota automobiles are noted for their high-tech features.

 Volkswagen

Volkswagen is a well-known brand in the automobile sector and a prominent Hyundai rival. Volkswagen
was founded in 1937 and has its headquarters in Germany. Buses, vehicles, large trucks, motorcycles, light
trucks, engines, and nautical machinery are all manufactured by the corporation.The company operates in
about 117 countries throughout the world. The company is thought to create around 10 million vehicles
every year. Volkswagen is the world's largest automaker, with models such as the Volkswagen Beetle,
Volkswagen Jetta, Volkswagen Phaeton, Volkswagen Passat, Volkswagen Vento, Volkswagen Polo, and
Volkswagen Touareg among its many models.

 Maruti Suzuki

Maruti Suzuki, another Hyundai competitor, is a prominent vehicle brand that was founded in 1981 and is
headquartered in New Delhi, India. After the creation of the evergreen Maruti 800, the company became well-
known.It is the market leader in India and has a strong brand. It is exceptional in terms of the customer service
it delivers. Maruti is the market leader in the automotive sector, with a market share of approximately 48.74
percent. Maruti's key strength is its extensive network of dealers and after-sales service centres around the
country. The corporation has the most domestic sales, with approximately 9, 66,447 units sold in the previous
year.
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 Honda Motor

Honda is a well-known vehicle manufacturer with headquarters in Tokyo, Japan, that was founded in 1946. It
is the world's largest motorbike and internal combustion engine manufacturer. It manufactures over 14 million
internal combustion engines each year. Having a strong R&D department is critical to this brand's success. The
R&D manpower gives huge assistance for the development of diverse products, and as a result, Honda
produces elegant and efficient designs that are a big hit in the market. Honda's automobiles are well-equipped
with cutting-edge technology, which has resulted in a large number of individuals opting for them.

 Tata Motors

Tata Motors is a well-known automobile manufacturer with headquarters in Mumba, India. It was founded in
1945. It is one of India's oldest and most trusted brands, having a wide distribution and significant market
penetration. Sedan, Hatchback, and SUV are the various segments of this corporation. By focusing on
breakthrough technology to give value to clients, it has risen to the top of the vehicle market. Tata Motors has
highly qualified personnel who deliver exceptional customer service. Tata Motors' foreign reach has grown
thanks to partnerships with Jaguar, Hispanic, Land Rover, Macropolo, and others. To meet these needs, the
organisation has a strong Research & Development department.

FUTURE GROWTH AND PROSPECTUS

Hyundai will likely accelerate the launch of electric cars (EVs) for the Indian market, based on the strong
response to the Kona and the company's strategic push at a worldwide level.

Within the next three years, the company plans to deliver its first mass-market electric vehicle, whose platform
will create the groundwork for greater acceptance of such vehicles in India. Hyundai is projected to invest
roughly $200 million in the development of the electric vehicle platform.

The battery-powered sports utility vehicle (SUV) Kona, which debuted in August, was an instant popularity,
with Hyundai reporting a stock-out for 2019. Despite the model's high price tag of Rs 25 lakh, this is the case.
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CHAPTER-3

CURRENT STRATEGIES

The complete mid- to long-term strategy, which was presented to various stakeholders, including shareholders
and investors, by President and CEO Wonhee Lee and other executives, reaffirms Hyundai's plan to dominate
the future mobility sector as a Smart Mobility Solution Provider.

Three main pillars underpin the amended Strategy 2025 roadmap: Smart Mobility Device and Smart Mobility
Service, both of which were part of the original plan unveiled in 2019, as well as H2 Solution, which
demonstrates Hyundai's commitment to fuel cell development and commercialization.

Hyundai Motor's new strategy focuses on three primary goals: improving its automotive business's
competitiveness through electrification, laying the groundwork for becoming a premier mobility provider, and
securing efforts for a hydrogen ecosystem. The updated focuses on four major business areas—EV, urban air
mobility (UAM), autonomous driving technologies, and hydrogen fuel cell system—with the goal of providing
customers with innovative and comprehensive mobility experiences while also contributing to the development
of the industry-wide ecosystem.

Company executives gave presentations in each major business area at the forum, including Albert Biermann,
President and Head of Hyundai Motor Group R&D Division; Jaiwon Shin, Executive Vice President and Head
of UAM Division; Saehoon Kim, Senior Vice President and Head of Fuel Cell Center; and Woongjun Jang,
Vice President and Head of Autonomous Driving Center.

Hyundai Motor also revealed its mid- to long-term financial objectives, which include investing KRW 60.1
trillion by 2025, reaching an 8% operating profit in the automotive industry, and capturing a 5% range of
global automotive market share.
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MARKETING STRATEGY OF HYUNDAI MOTORS

 Target Markets

Differentiated marketing is at the heart of Hyundai's marketing approach. The primary consumer target
is middle- to upper-income professionals looking for a good deal and a comfortable journey in city
traffic. College students are a secondary consumer target group that are always looking for flair and
quickness. The primary target market is midsized to large corporations that wish to assist their
managers and staff by providing them with an automobile that is convenient to use.

 Marketing communications

Hyundai will strengthen the brand name and key elements about product distinction by disseminating
all communications through media. The advertising agency will be able to identify appropriate media
and time to reach prospects before and during the product launch by conducting research on media
consumption patterns. Following then, advertising will have a pulsating effect to keep brand awareness
high and transmit numerous differentiating signals. The firm will also coordinate public relations
operations in order to strengthen the Hyundai brand and facilitate message distinctiveness. Hyundai
gives limited time, registration, and insurance to draw attention and encourage purchase. Channel
partners must be attracted, retained, and motivated.

 Road Shows

During major college festivals and exhibitions, the business intends to stage road shows and display
vehicles in pavilions. This will pique the interest of young people and draw them to Hyundai vehicles.

 Television advertisements
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On the top television channel, advertisements to promote and market the goods and market the products
will be broadcast. Major music and sports channels will advertise and reach out to the youth through
Star, Zee, Sony, and Doordarshan, among others, because they have more viewers, to sell a product like
Creta.

 Radios

Radio is the most widely distributed media. Whether or whether listeners own a radio, studies have
recently revealed significant levels of exposure to radio transmission in both urban and rural locations.
As a result, radio announcements on various stations, such as FM, will be produced, and advertisements
will be broadcast on the radio regarding the product's features, price, and quality, among other things.

 Banner, Neon Signs

To promote the brand cars, hoardings, banners, and neon signs will be erected at clubs, discos, outside
theatres, and businesses.

 Booklets and Pamphlets

Customers who want to read will be able to find booklets in vehicle showrooms, retail establishments,
and other locations. These booklets will include detailed information about the company and its
products, which will be tailored to the needs of the clients.

 Rural marketing

To access the India rural car market, Hyundai Motors India has launched a new marketing push called
"Ghar Ghar Ki Pehchaan." On the purchase of the New Santro, the business has launched out specific
initiatives for government employees in rural areas and members of gram panchayats.

Hyundai Motor wants to expand its market to rural areas, so it's opening 300 new rural sales shops. All
of this is happening in preparation for the launch of Hyundai's cheapest car, which won't happen until
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November this year. Hyundai is now balancing its standard with 325 dealership locations across cities,
and this new development strategy might bring India's rural outlet network to 1,000.

Figure 12
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CHAPTER-4

McKinsey 7 models
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Figure 13
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The McKinsey 7s model identifies seven factors that can be classified as either hard or soft in nature. They are
referred to as:

Hard Elements Soft Elements

Shared Values
Strategy Skills
Structure Style
Systems Staff

Hyundai uses the McKinsey 7s model to improve business performance and conduct successful change
management processes on a regular basis. Hyundai focuses on the model's seven aspects to guarantee that
performance standards are constantly maintained and enhanced across the board.

1. Hard elements

Strategy, structure, and systems are the hard parts of the McKinsey 7s model. The model's hard aspects are
easier to recognise, more concrete in form, and directly controlled and impacted by the organization's
leadership and management.

1.1. Strategies

1.2. Clearly definied

Hyundai's overall company plan and strategic direction are clearly defined and communicated to all
workers and stakeholders. This aids the corporation in managing performance, directing operations,
and developing various approaches that are in line with the corporate strategy. Furthermore, the
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creation and communication of the business plan makes Hyundai's operations more visible and aligns
the company's duties and actions.

1.3. Guiding behaviour for goal attainment

Hyundai's strategic direction is also critical in guiding employee, staff, and stakeholder behaviour
toward goal accomplishment and achievement. In accordance with the business plan, SMART Goals
are defined with short and long term deadlines. Employees can use the business strategy to help them
decide on methods and behaviours for achieving the company's goals and targets.

1.4. Competitive pressures

Hyundai's strategy takes into account the competitive pressures and activities of its rivals. The strategy
responds to these competitive pressures by recommending measures and actions to address
competition through strategic tactics and activities that ensure Hyundai's long-term viability by
adapting to market changes and evolving consumer trends and demands.

1.5. Changing consumer demands

One of the most essential aspects of Hyundai's strategy is that it constantly considers changing
consumer trends and needs, as well as altering consumer market patterns and consuming behaviour.
This is a key aspect of Hyundai's strategic direction because it allows the company to stay competitive
and relevant to its target consumer groups, as well as discover demand gaps in the marketplace. The
company then uses product offers and marketing operations to deliberately fill these gaps, giving it a
competitive advantage over other market patterns.

1.6. Flexibility and adaptability

Hyundai's strategy is versatile and agile. This is a crucial part of Hyundai's strategic direction and
strategy formulation. Rigidity in strategy can cause a firm or a business to become stagnant, preventing
innovation and progress in the face of changing consumer markets. Hyundai can benefit from its
 33

flexibility and adaptability not only by promptly reacting and responding to changing consumer habits
around the world, but also by locally and culturally adapting its products via localization for diverse
countries and regions. Furthermore, the corporation is frequently able to forecast consumer market
developments in advance and make strategic modifications as a result.

2. Structure

2.1. Organizational hierarchy

Hyundai has a flatter organisational hierarchy that is backed up by progressive and learning
organisations. Employees feel more comfortable and confident, and they have more access to
information, with fewer managerial levels between them and more access to senior management and
leadership. Furthermore, the flatter hierarchy helps Hyundai to make quicker decisions and enhances
employee engagement to the company.

2.2. Inter-departmental coordination

Hyundai has a high level of cross-departmental coordination. For projects and tasks that involve
multiple skills, the company's departments frequently form inter-departmental teams. All cross-
departmental coordination is efficient and well-organized. Hyundai has a framework in place for
initiating and monitoring cross-departmental collaboration in order to ensure seamless work operations
and procedures – as well as goal achievement.

2.3. Internal team dynamics

Hyundai promotes teamwork and projects that require collaboration. Specific duties and job tasks are
assigned to jobs that demand individual attention and scope. All Hyundai employees, on the other
hand, are required to be team players who can work well with and through others, as well as get along
with others. Hyundai's teams are supportive of all members and work together to achieve the broader
team objectives and aims, all while adhering to the Hyundai-designed strategy and principles.
 34

2.4. Centralization VS. decentralization

Hyundai's organisational structure is a mix of centralization and decentralisation. Hyundai, like many
progressive organisations, favours decentralised decision-making. Employees frequently set their goals
with mutual cooperation and agreement with their superiors, and job duties at Hyundai are designed to
be carried out with responsibility.

Hyundai, on the other hand, is centralised in ensuring that supervisors review and approve the many
activities and strategies that employees use to ensure that they are in line with the company's strategy
and values.

2.5. Communication

Hyundai has a complex and well-developed system in place to ensure communication between
employees and different levels of management. Hyundai's communication systems help to strengthen
the company's overall structure. The systematic, specified, and regulated communication allows for a
smooth flow of information and ensures that no organisational tasks or goals are jeopardised due to
misunderstandings or a lack of communication.

3. Systems

3.1. Organizational systems in place

Hyundai has well-defined mechanisms in place to ensure that business operations are successfully
managed and that no conflicts or disagreements arise. Hyundai's systems are mostly departmental in
nature, and include things like:

- Management of human resources

- Funding
 35

- Promotion

- Business operations

- Promotions

- Management of supply chains

- Management of Public Relations

- Strategic management

3.2. Definied controls for systems

Hyundai has specially built tools and processes as controls for measuring performance and goal
accomplishment in each of its specified and delimited systems. Because of the nature of their activities
and responsibilities, these controls and measurements are tailored to each department. Furthermore,
each department creates unique controls for members' performance evaluations as well as inter-
departmental tasks and obligations.

3.3. Monitoring and evaluating controls

Hyundai assesses its systems on a regular basis using the controls that were developed for them. This
performance monitoring is continuous and ongoing. The majority of this is accomplished through
observation and casual discussions. Employees and overall department heads receive informal
feedback on a regular basis as needed. Formal performance evaluations are also carried out
semiannually – or quarterly, depending on the need and urgency of the projects and duties allocated.
This is a structured process that supervisors and managers use to ensure the identification of
performance gaps and suggesting ways to address them.

3.4. Internal processes for organizational alignment

 36

Hyundai also has particular processes and methods in place to ensure that all of the company's
departments and systems are aligned and working together to achieve the company's overall goals and
objectives. This is accomplished by ensuring that all systems are designing and achieving goals and
targets particular to their areas of competence as part of the overall business vision and strategy.
Furthermore, Hyundai's strategic leadership guarantees that all systems are resourced and that precise
targets are set to attain similar corporate goals throughout time.

4. Soft elements

Shared values, people, skills, and strategy are among the soft factors of the McKinsey 7s model. These
components are less observable and are impacted more by organisational culture. As a result, management has
no direct control or influence on them. These factors are also more difficult to define and pinpoint, but they are
equally crucial for an organization's success and enhanced performance.

4.1. Shared values

Hyundai's fundamental values are defined and conveyed in order to foster a creative and supportive
organisational structure that allows employees to perform at their best while also increasing their
motivation and devotion to the company. Hyundai's key principles include, but are not limited to, the
following: -

-Creativity

- Honesty

- Transparency

- Accountability

- Trust

- Quality
 37

- Heritage

Hyundai also ensures that all of its activities and operations are carried out in accordance with strong
ethical and moral standards that have been redefined and benchmarked against international norms.

4.2. Corporate culture

Hyundai promotes a welcoming environment that values diversity. Hyundai has an international
presence with production units in several countries; as a result, the firm ensures that its organisational
culture is tolerant of diversity and that internal procedures are in place to reduce discrimination.

Hyundai's corporate culture also supports innovation and creativity by allowing individuals and teams
to flourish independently, allowing them to fine-tune their professions and personalities. Finally,
Hyundai's corporate culture includes a supportive leadership that seeks to boost staff motivation and
job happiness by allowing for more visibility.

4.3. Task alligbments with values

Hyundai guarantees that all of its employment duties and roles are in line with the company's core
principles. This means that Hyundai's actions, methods, and strategic tactics will all represent the
company's basic principles and will not diverge from them. This is to ensure a consistent and
trustworthy brand image, as well as an open and honest corporate culture. In the event of
organisational change, the company will continue to guarantee that all change management procedures
and methodologies include the core values, ensuring that the organisational culture is maintained and,
if necessary, adjusted methodically.

5. Style

5.1. Leadership styles or management styles

 38

Hyundai's management style is participative. Hyundai is able to engage and involve its staff in
decision-making processes and managerial decisions by using a participative leadership style. This
also allows the leadership to communicate with employees and other managerial groups on a frequent
basis in order to identify and resolve any possible disputes, as well as receive feedback on strategic
approaches and operations. Hyundai is able to improve employee motivation and organisational
engagement and ownership among employees and other stakeholders by implementing participative
leadership.

5.2. Effectiveness of leadership styles

The participative leadership style is extremely effective in accomplishing the organization's

commercial goals and vision. Employees believe they are active members of the organisation, and
their suggestions, feedback, and contribution are valued. Furthermore, leaders and managers can use
participative leadership to identify current and potential issues within the Hyundai company and
attempt to address them as quickly as feasible.

5.3. Internal cooperation and competition

Hyundai fosters internal collaboration and cooperation across individuals, systems, teams, and
departments thanks to its supportive and encouraging organisational culture. Because Hyundai's
operations are scattered around the globe, and because duties and responsibilities within the
organisation sometimes require inter-departmental feedback and input, this cooperation and
collaboration is critical. Furthermore, as the company grows and synergizes, it develops project teams
on a regular basis, which work well because of the Hyundai organization's cooperative and
collaborative culture.

5.4. Team VS. Group

Hyundai has well-functioning teams that work together to fulfil the company's numerous business
goals and objectives, as well as to execute duties. The management of the company is encouraging and
 39

supportive, and the leadership provides a compelling and practical vision for the company to attain. All
employees are supported in their advancement equally and transparently through the human resource
management system and organisational training. This results in effective team building within the
company for diverse projects, as well as department-specific responsibilities and functions, rather than
nominal groups.

6. Staff

6.1. Employee skill level VS business goals

Hyundai employs a significant number of people throughout its global activities. Employees for
various job types and positions are employed both inside and externally, depending on the level of
urgency and skill required. As a result, it is clear that Hyundai employs individuals who are skilled in
their respective job tasks and positions. To familiarise themselves with the organisation and its ideals,
all workers receive on-the-job training. For skill level enhancement, both external and in-house
training is available.

All employment functions and positions at Hyundai are designed to help the company achieve its
objectives, thus employee skill levels are adequate.

6.2. Number of employees

A big number of people work for Hyundai. According to the requirements and needs of the business
and operations, the number of employees differs from country to country. Hyundai's global team is
inclusive, accepting and encouraging diversity, and working in concert with its members to achieve
business objectives. The most crucial aspect of Hyundai's business performance is its team members
and employees.

6.3. Capacities and capabilities

 40

Hyundai has a well-defined strategy for recognising future organisational capability and capacity
needs. The business's human resource function has a systematic approach for identifying possible
vacancies or skill gaps that involves all other divisions. The human resource department provides for
recruiting, which may be permanent or temporary, as well as training sessions for the current staff,
depending on the nature of the requirement.

7. Skills

7.1. Employee skills

Hyundai has a fantastic team with a wide range of talents and abilities. All personnel are hired based
on their qualifications and merit. Hyundai takes pride in employing the best employees and developing
them further to help them grow and develop.

7.2. Task requirements VS employee skills

Hyundai has defined duties and job positions, and hires and teaches personnel for the appropriate skill
levels. The corporation guarantees that all job criteria are met, and that personnel have the necessary
skills to do their duties in line with Hyundai's values and culture, as well as the company's business
goals and strategy.

7.3. Skill management

Hyundai places a strong emphasis on developing its employees' skills and capabilities. It organises
frequent training and workshops for its staff, both internally and externally managed, to provide
possibilities for growth and development. Hyundai prioritises personal and professional development
for its employees and collaborates with them to achieve this goal.

7.4. Advantage of competition

 41

One of the company's main competitive advantages is its human resources. Staff skills are developed
expressly for work responsibilities and requirements at Hyundai, and they provide a competitive
advantage to the company because competitors cannot mimic employee skills or training. Hyundai
now has a one-of-a-kind, non-substitutable competency.

Hard Strategy
elements  Clarity
 Goal orientation
 Competitive
 Flexible
 Adaptive

Structure
 Hierarchy
 Coordination
 Communication
 Authority and power delegation
 Team dynamics

Systems
 Organizational systems
 Controls
 Monitoring tools
 Evaluation processes

Soft Shared values

elements  Core values
 Organizational culture
 Task alignment with values

Style
 Leadership style
 Managerial style
 42

 Cooperation and coordination

Staff
 Employee skill level
 HRM systems and processes

Skills
 Employee skills
 Employee skill development
 Trainings
 Hiring processes
 43

Figure 14
 44

A) SWOT ANAYLSIS

Figure 15

STRENGTHS

 Brand image

Hyundai is a South Korean automaker with a global distribution and sales network. The company's
most important asset is its brand image, which is built on product quality, product safety, performance,
and customer service. Overall, Hyundai has retained its position as a top global vehicle manufacturer.
The Hyundai Motors Group (which includes Kia Motors) is one of the world's largest automakers.
Despite a drop in sales owing to the epidemic in the United States, Hyundai's market share in the US
remained stable. The Hyundai Motors group has introduced a wide range of vehicles, including a nice
middle-class line that is priced affordably.

 Global presence
 45

Hyundai is a well-known vehicle manufacturer with a global presence. Its global sales, distribution, and
service network has grown. The South Korean automobile manufacturer has increased its global reach.
The company's product line is sold in over 200 countries. Hyundai Motors, which was founded in 1967,
is the largest vehicle manufacturer in South Korea, which also happens to be its major market. The
Korean market generates the most annual net sales for the corporation, followed by North America and
Europe. The company's global distributor network has been strengthened further. An extensive list of
the markets where the company's distributors are situated may be found here.

 Strong business model

Hyundai has a solid business model, which was demonstrated during the epidemic. While many
automakers struggled to cope with the pandemic's effects and saw a significant drop in sales and
revenue, Hyundai and its subsidiary Kia Motors escaped relatively untouched. Other worldwide brands
encountered significant sales and service challenges, as well as manufacturing disruptions, as a result of
the epidemic. The way the pandemic affected supply networks around the world had a significant
impact on automakers' manufacture and sales.

Lower unit sales also had a big influence on their revenues. Despite a drop in unit sales, Hyundai's
revenue increased.

 Supply chain management

Supply chain management is an integral aspect of any automaker's overall business strategy. All
significant vehicle companies, whether in the United States or South Korea, must strategically manage
their supply chains to assure a continuous supply of raw materials and parts. Thousands of vendors
throughout the world supply the organisation with parts and raw materials. It makes an effort to
maintain solid long-term ties with its vendors. Thousands of suppliers in various parts of the world,
primarily in Asia, are used by the company. Because of its strong focus on supply chain management,
the company is able to manufacture improved automotive models that are more efficient.
 46

 Product portfolio

Hyundai's diverse product offering is another of the company's core assets. Sedans, SUVs, crossovers,
electric automobiles, and hybrids are among the company's many and varied product offerings. The
company has maintained a strong focus on product innovation in order to bring car models that not only
meet people's needs, but also perform well and are safe for passengers. At least ten new electric and
hybrid models have been added to the company's lineup. Kona, Nexo, IONIQ, and the Elantra, Tucson,
and Santa Fe plugin hybrid models are among them.

 Pricing strategy

Hyundai's price strategy is another important aspect in the company's global success. The automobile
market has become extremely competitive, and a huge number of passenger car manufacturers have
increased their selection of car models aimed at middle-income consumers. Hyundai has also primarily
targeted middle-class customers, introducing a big number of vehicles in the entry-level and entry-level
luxury segments. In a hypercompetitive business, its competitive pricing policy has helped it preserve
its competitive edge. Automobile companies are facing increased pricing pressure as a result of
increased competition. Competitive pricing, on the other hand, aids in sales and is also an e-commerce
benefit.

 Research and development

Hyundai is a very competitive automaker with a significant competitive advantage. The company has
concentrated on producing vehicles that are high-performing, elegantly styled, and safe for passengers.
Given the increased rivalry in the automobile business, preserving a brand's competitive advantage
necessitates a greater focus on innovation. The car industry has undergone some significant changes as
a result of technological advancements, including greater vehicle performance, super manufacturing
capacities, and more simplified company procedures. Digital technology and artificial intelligence (AI)
are also causing significant changes in the sector. To keep its market share and growth momentum, as
well as to stay ahead of the competition.
 47

 Manufacturing network

Hyundai has also built an impressive manufacturing network that is among the best in the world. It is
the owner of one of the world's largest automobile plants in Ulsan, South Korea. Hyundai maintains the
world's single largest integrated automobile production factory, according to Wikipedia, with an annual
capacity of 1.6 million units. Statista estimates that the facility will produce 1.5 million vehicles in
2020. Hyundai has also opened two new plants in South Korea, in Asan and Jeonju. Aside from that, it
has opened other manufacturing operations in various markets in order to meet local demand. Plants
have been established in the following locations: Russia.

WEAKNESSES

 Decline in the Chinese market

A few years ago, China eclipsed the United States as the world's largest vehicle market. However,
compared to most other significant vehicle markets where it sells its products, such as the United States
and India, Hyundai Motors has not been as fortunate in this market. The company's market share has
been falling in recent years, compared to the early 2010s. According to Statista, Hyundai's market share
in China's vehicle market has decreased from 9.8% in 2011 to 2.7 percent in 2018. China is a vital
market for vehicle manufacturers, and any company that succeeds in capturing the world's largest
market will see huge revenue growth.

 Costly recalls

Electric mobility is a potential sector for automakers, but it is not without risks. The expenses of recalls,
especially if a company is forced to do so, can be quite substantial. This year, it was demonstrated in
the instance of Hyundai. Electric vehicles worth $900 million, or 1 trillion Korean Won, are being
recalled by the business. According to CNN, the recall will cost the corporation roughly $11,000 per
vehicle unit, including around 82,000 electric cars. This is one of the most expensive automobiles ever
produced. GM also just issued a recall for $1.2 billion in total. However, it only cost $200 per vehicle.
 48

 Weak marketing execution

For publicity and word of mouth, Hyundai has mostly relied on its brand image, innovation, and
product quality. While the company's concentration on building dependable vehicles has resulted in a
stronger brand image, higher sales, and more popularity, it has been less aggressive in terms of
marketing and promotions when compared to other top brands such as Ford or GM, and Toyota. In
comparison to a few years ago, the vehicle business is more competitive, and brands are aggressively
spending in paid advertising to increase sales and market share. Hyundai does not have a targeted
marketing plan, which is critical if it wants to win the US and Indian markets in the long run.

OPPORTUNITIES

 Customer engagement and digital marketing

Hyundai must recognise the importance of marketing in long-term success. Because it competes against
huge rivals such as Ford, GM, Volkswagen, and Toyota, it risks losing market share in numerous key
areas if it does not maintain its marketing focus. It has already lost a considerable portion of the
Chinese market, and its efforts to boost sales there have also failed. However, in other areas, such as
India and the United States, where sales are robust, the corporation must focus on marketing and
consumer engagement through digital platforms in order to expand its penetration and attract more
middle-class customers.

 Technologies

Automobile manufacturers are investing in cutting-edge technology to improve the appeal of their
product lines and the performance of specific products. Hyundai must also maintain its focus on
cutting-edge technologies in order for its products to continue to surpass their worldwide competitors.
Artificial intelligence, automatic driving, and electric mobility are just a few of the hottest areas where
firms are pouring money into R&D.

 Chinese market
 49

Hyundai has a shaky hold on the Chinese market for several years. While government retaliation was
identified as one of the key causes for the business's sales decrease in China, it was also claimed that
the company had lost touch of local customers' tastes. Hyundai must concentrate on designing vehicles
that are specifically tailored to the needs and expectations of Chinese consumers. While the sharp
reduction in sales from 2016 points to a possible future exit from the market, Hyundai isn't completely
out of the running. It can yet increase its market share in China by refocusing on the types of vehicles
that Chinese consumers desire. With I it is already a winner in India.

 Electric mobility

Electric mobility is the way of the future, and investing in it can be quite beneficial. In light of this,
Hyundai has increased the number of electric and hybrid vehicles in its lineup. Electric and hybrid
automobile sales have increased dramatically over the world in 2020. Electric vehicle sales are
predicted to increase even further in 20201. While Hyundai has suffered a huge setback in the form of
recalls, this should not deter the company from continuing to innovate and produce more efficient and
safer electric vehicles. Electric and hybrid vehicle sales in Europe are predicted to expand rapidly in
2021. Given the rapid rise in demand for electric vehicles, Hyundai cannot afford to wait.

THREATS

 Competition

The primary threat to Hyundai sales is the worldwide market's fierce competition. Hyundai competes in
the global market against a slew of global brands such as General Motors, Ford, and Toyota, as well as
local brands in markets such as India and China. The major players in the automobile business are
substantially investing in R&D, marketing, and improving the appeal of their product lines. The high
degree of competition is also the key impediment to quicker global market expansion, necessitating a
greater focus on innovation. Hyundai's operating expenses are also rising as a result of the need to
spend more on R&D, marketing, and sourcing.
 50

 Regulatory risks

The automobile business is one of the most strictly regulated industries in the world, and corporations
must focus on maintaining compliant to avoid hefty fines. Apart from product quality and passenger
safety standards, noncompliance with labour and environmental regulations can have a negative impact
on a company's financial line. Hyundai and Kia will settle an expensive settlement over defective
engines in the United States in 2020. Litigations can be costly for vehicle companies, with fines ranging
from millions to billions of dollars, resulting in significant losses for major brands. It is for this reason
that Hyundai must be wary of the regulatory risks that come with doing business in the developing
world.

 Operating expenses

Automobile companies' operating expenses, including Hyundai's, have risen year after year as brands
increase their investment in research and development, marketing, and product quality. Apart from
rising raw material priced increased competition in the automobile business has resulted in increased
operating expenses for automobile brands in a variety of sectors, including human resources.
 51

Figure 16
 52

PESTLE ANALYSIS

Figure 17

Hyundai's PESTLE Analysis examines the company's business strategies. Hyundai's PESTLE Analysis looks
at how political, economic, social, and technical (PEST) aspects, as well as legal and environmental factors,
affect its company. The PESTLE Analysis identifies the various extrinsic circumstances that have an impact on
the brand's business.

PESTLE analysis is a methodology that is critical for companies like Hyundai to analyse market trends and
continuously improve their business.
 53

 Political factors

The following is an explanation of the political elements in the Hyundai PESTLE Analysis:

Hyundai is a global automobile manufacturer with operations in multiple countries. The Political
Stability Index data demonstrates that political stability in the Asian – Pacific region is steadily
improving, which is a positive sign for Hyundai. The political ties that exist between the two countries
can also play a role in determining where to invest. Unfriendly relations with a country can result in
higher taxes and more frequent and severe inspections. Changes in governments and their policies can
have an impact on Hyundai's company.

 Economic factors

The economic aspects in Hyundai's PESTLE Analysis are below:

The market continues to develop and slow around the world. In one of Hyundai's most important
markets, India, the economic slowdown has taken its toll. There have been around 3.5 lakh job losses.
Various vehicle behemoths are attempting to counteract the slowdown by giving steep discounts and
other strategies to resurrect their sales. Despite the fact that other Hyundai models appear to be affected
by the current economic environment, Hyundai cars are performing exceptionally well. It provides an
outstanding experience due to its stunning design and new features. That is why, despite being a late
entrant into the Compact SUV segment, it has managed to acquire a sizable market share. With
unemployment rates as high as 6%, or 30 million unemployed people.

 Social factors

The social elements influencing Hyundai PESTLE Analysis are as follows:

 54

Hyundai should absolutely respond to the desires of both sexes and customise its goods accordingly,
given that males and females share a considerable ratio of number of drivers, i.e. 60:40. Hyundai also
caters to persons in the middle and upper classes. Consider the following scenario: Hyundai offers over
15 different models, with prices ranging from $6000 to $35000.

 Technological factors

The technological variables in Hyundai's PESTLE Analysis are listed below:

Hyundai employs gasoline direct injection (GDI) technology, which improves fuel efficiency and
lowers CO2 emissions. Hyundai automobiles, on the other hand, get poorer mileage than Maruti Suzuki
vehicles in the same category. In addition, numerous businesses have begun to work on Artificial
Intelligence.

 Legal factors

The legal factors in the Hyundai PESTLE Analysis are as follows:

Intellectual Property Rights are protected by strong regulations in many countries. According to data
from India's Department of Industrial Policy and Promotion (DIPP), the filing of patents, trademarks,
and copyrights has increased significantly. This will attract international investment since investors will
not consider India to be a dangerous market. Intellectual Property Rights (IPR) protection is crucial
when picking which country to invest in. Laws Against Discrimination - Most of the countries where
Hyundai now operates have a number of agencies that monitor discriminatory activities at the
workplace.

 Environmental factors
 55

The following are the environmental factors that affect Hyundai's business according to the PESTLE
Analysis:

Environmental stewardship is a top priority for Hyundai, as it is for other automotive businesses.
Emission management is crucial for Hyundai because most automobiles operate on gasoline. Hyundai
has been fined $47 million by the United States for illegally importing and selling unclean diesel
engines that failed to meet US pollution requirements. Hyundai should avoid any unethical behaviour
because it could have a worldwide impact. News like this can harm the company's brand image and, as
a result, its income.

To summarise, the above Hyundai PESTLE Analysis identifies the many factors that influence the company's
performance. This knowledge aids in determining the importance of external business aspects for any brand.
 56

Figure 18

B) FINANCIAL STATEMENT ANALYSIS

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION AS OF JUNE 30, 2021 AND

DECEMBER 31, 2020
 57

ASSETS NOTES June 30, 2021 December 31, 2020

(In millions of Korean Won)
Current assets:
Cash and cash equivalents 20 11,027,344 9,862,136
Short-term financial instruments 20 8,718,337 7,219,695
Other financial assets 5,20 11,675,503 12,897,108
Trade notes and accounts receivable 3,20 3,441,675 3,283,972
Other receivables 4,20 3,726,706 4,016,972
Inventories 6 11,329,027 11,333,734
Current tax assets 134,302 138,848
Financial services receivables 14,20 33,348,637 32,596,052
Non-current assets classified as held for sale 8 30,819 304,469
Other assets 7,20 2,080,448 2,033,371
Total current assets 85,512,798 83,686,357

Non-current assets:
Long-term financial instruments 20 114,094 61,859
Other financial assets 5,20 3,318,918 2,779,227
Long-term trade notes and accounts receivable 3,20 133,892 124,269
Other receivables 4,20 720,788 702,341
Property, plant and equipment 9,40 34,355,517 34,092,229
Investment property 10,40 160,341 160,967
Intangible assets 11,40 6,003,689 5,677,567
Investments in joint ventures and associates 13 21,446,705 19,925,260
Deferred tax assets 2,684,238 2,847,454
Financial services receivables 14,20 42,902,345 37,069,158
Investments in operating leases 15 23,532,249 20,501,691
Right-of-use assets 12 874,576 836,324
Other assets 7,20 1,060,009 879,509
Total non-current assets 137,307,361 125,657,855

Total assets 222,820,159 209,344,212

CONSOLIDATED STATEMENTS OF INCOME FOR THE THREE-

MONTH AND SIX-MONTH PERIODS ENDED JUNE 30, 2021 AND 2020
2021 2020
Three-month Six-month
period ended period ended
 58

Sales 27,40 ￦ 30,326,066 ￦ 57,716,937 ￦ 21,858,991 ￦ 47,178,439

Cost of sales 32 24,594,797 46,949,098 18,147,164 39,201,302

Gross profit 5,731,269 10,767,839 3,711,827 7,977,137

Selling and administrative expenses 28,32 3,845,268 7,225,223 3,121,506 6,523,040

Operating profit 1,886,001 3,542,616 590,321 1,454,097

Gain (loss) on investments in joint ventures

and associates, net 29 373,847 734,454 (51,110) 34,709
Finance income 30 162,487 307,642 301,935 454,891
Finance expenses 30 119,466 239,807 337,144 566,514
Other income 31 387,138 754,055 477,105 707,363
Other expenses 31,32 188,054 550,730 384,841 764,012

Profit before income tax 2,501,953 4,548,230 596,266 1,320,534

Income tax expense 34 519,351 1,043,403 218,996 390,582

Profit for the period ￦ 1,982,602 ￦ 3,504,827 ￦ 377,270 ￦ 929,952

Profit attributable to:

Owners of the Company 1,761,887 3,089,137 227,386 690,700
Non-controlling interests 220,715 415,690 149,884 239,252

Earnings per share attributable to the owners

of the Company: 33
Basic earnings per share:
Common stock ￦ 6,765 ￦ 11,860 ￦ 869 ￦ 2,642
1st preferred stock ￦ 6,778 ￦ 11,885 ￦ 882 ￦ 2,667
Diluted earnings per share:
Common stock ￦ 6,765 ￦ 11,860 ￦ 868 ￦ 2,641
 59

CHAPTER-5

LEARNING EXPERIENCE

During Covid-19 Pandemic 2021, I did a desk research on Hyundai for my organisation
study. Due to the spread of the Corona virus, I was unable to intern in a company, so I
conducted thorough web research on Hyundai. I looked into how theoretical principles are
put into practise in the workplace. When each employee's job is defined, including his or her
duties and responsibilities, delegation of authority, and accountability, no employee can fail
to fulfil his or her responsibilities. The next crucial feature is the operation of all departments,
and coordination between them is critical. I learned about the many strategies that the
business employs. Also I got to know the different products of the company and also the
services they offer.
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BIBILIOGRAPHY

http://www.hyundaigroup.com/eng/product/index_14.jsp

https://www.hyundai.com/worldwide/en/company/newsroom/-0000016593

http://ncrdsims.edu.in/site/views/pdfs/Business%20Review%202019/6%20%20Marketing-
Strategies-of-Hyundai-Motors-in-India-%20Abhishek-V-3.

https://www.swotandpestle.com/hyundai-motor-company/

https://pestleanalysis.com/pestle-analysis-of-the-automotive-industry/