The paper "Hyundai Auto Company" describes The success or failure of an organization depends in part on several managerial decisions. In this context, business enterprizes in the present era, as a rule, enthusiastically represent the concept of managerial economics…
Download full paperFile format: .doc, available for editing
Download file to see previous pages
With focus on the automobile industry of the US, it can be apparently observed that the market structure prevailing in the economy is a monopolistically competitive market (Nguyen & Kira, 1998). The major features of a monopolistically competitive market include: The inclusion of a large number of market players, availability of substitute (but not identical) products, Higher price-elasticity with minimum influence of producers on commodity price increasing the bargaining power of customers, Fierce competition in terms of promotion, quality as well as other non-price factors, In a MCM structure, a firm also enjoys the liberty of ‘free entry and exit’ which again raises the threat of new entrants (Nguyen & Kira, 1998) Hence, operating in the MCM structure, Hyundai needs to face steep competition along with the barriers of high price and demand elasticity along with greater bargaining power of both suppliers as well as customers owing to the availability of close substitute products. This can be better illustrated with the assistance of its demand-supply curve. For instance, if the price for Hyundai Sonata increases with a single unit (e.g. from US$ 37.79 as on 2009 to US$ 38.79) it is quite likely that the demand for the brand will reduce proportionately with the availability of close substitute product of Toyota Camry. Therefore, its demand-supply curve can be formulated as below. Figure 1: Demand-Supply Curves of Hyundai As can be witnessed from the above diagram with a shift in the demand curve, the brand also needs to shift its supply curve in order to satisfy the equilibrium condition. Due to the fact that firms have limited influence over price structures, it...
It is in this context that both Hyundai Sonata needs to focus on their competitive strategies to preserve their leading positions in the monopolistic ally competitive market of the US. The company is further observed to focus on its profit maximization strategies, placing emphasis on the aspects of marginal costs as well as average total cost. This, in turn, depicts the impact of an MCM structure on the company strategies. Operating within the MCM structure, a company needs to maintain its MC as equal to MR. The competitive position of Hyundai Sonata, in relation to its profit maximization strategies, can be better observed in comparison to the position of Toyota Camry, which is a close substitute of the brand in the MCM structure of US automotive industry. In this context, the total cost of Toyota at the end of the year 2009, 2008 and 2007 stood at ¥20.99, ¥24.02 and ¥21.71 million respectively. Moreover, the quantity of units sold by the organization in the year 2009, 2008 and 2007 was recorded as 7.23, 9.23 and 9.49 million units respectively. Therefore, the MC for the year 2009 is 1.52 and 8.47 for the year 2008 in the case of Toyota. On the basis of the aforementioned figures, the ATC of Toyota for the year 2009 and 2008 is 2.90 and 2.60 million respectively. Similarly, the revenue of Toyota for the year 2009 was ¥6.22 million and for 2008 was ¥9.42 million.Thus, the calculated MR for the year 2009, in the case of Toyota, is ¥ 4.29, whereas, the AR for three consecutive years is ¥ 8 million.
...Download file to see next pagesRead More
The days when American companies monopolized the auto industry in the United States are over, and the global aspects of big business have taken over the marketplace.
General Motors (GM) began its climb to success in 1908, and as the twentieth century progressed so did the automobile industry.
For this study, the question of whether or not the products of Hyundai in America will ever be perceived as a Luxury automobile will be tackled. As part of answering the question, the marketing mix (4 P’s), target
Over the past decade, both companies have had significant changes in their brands due to external business pressures with each of them having reacted to such pressures differently with regard to leveraging their brands. Since the last great recession hit, General Motors, one of the largest automobile company in the US has faced quite a number of challenges in the market such as demand for low cost vehicles and more fuel efficient vehicles that cut costs.
Hyundai motor company is one of the most appreciated automotive companies in the global market. In this paper it has been analyzed that the company’s performance over the years from 2008 to 2010 has been improved on its operational side but the company has not been able to demonstrate the same performance in managing its finances.
According to the research findings Hyundai Motor Company maintains a set of well designed corporate responsibility policies. The success of the firm is attributed to the integration of its social responsibility programs with the business operations. The firm’s efficiency in social welfare programs aided Hyundai to effectively overcome various market crises.
This is where the concept of ethics and social responsibility comes into play. Generally, the term “corporate social responsibility” is used to describe this relationship between producers and consumers. According to Dimitriades (2007), this incorporates the ethical principles and values that steer conduct to ensure the production of consumer friendly goods, while also reflecting on the interests of the shareholders.
The author states that the new Asia-Pacific car markets such as India and China are growing significantly. For example, the company established the new factories between FY2008 and FY2009 in India and China, therefore its annual production capacity is 1.2 million vehicles from both countries.
4 Pages(1000 words)Essay
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Hyundai Auto Company"
with a personal 20% discount.