One of the first strategies Hyundai should consider is the development of luxury vehicles which could then be heavily marketed toward the upper and middle class cultural societies in United States, China, Japan, Europe, etc. While Hyundai has come a long way since it first began, the automobile manufacturer has a long path of growth and expansion to meet the consumer recognition of the competition. There are both pros and cons of this type of strategic plan.
The greatest advantage presents Hyundai the opportunity to turn into a top contender amongst Toyota, Nissan, Lexus, and other well established and highly appreciated car companies. To further embellish upon the benefits, Hyundai stands to substantially increase the profit margins for each vehicle as well as overall revenues. The major disadvantages detail the cost factor of production in the current economic down turn and difficulties entering into the luxury vehicle trade.
A second option which should be considered involves the investment and expansion into countries where Hyundai holds little to no presence or existence, Hyundai's commitment to diversity and inclusion is an important reason for our success as one of the fastest growing automotive companies in the world. ” (Diveristy In Action, 2010) Developing these markets affords the company the prospect of creating a promising name for itself within rising commerce as well as building solid customer relationships and loyalties.
With the good comes the bad, the shortcomings include but are not limited to very strong competition, limited and reduced request for luxury vehicles, and again the pricy cost factors in a sluggish economy. The latest trend of car companies is, “going green”, cars which have significantly reduced the consumption of oil or otherwise known as the hybrid automobile. This is the third alternative Hyundai must continue to research and develop automobiles that will leave less of a foot on planet earth, “Over the next few years, Hyundai will introduce hybrids and other high-efficiency, low-emission models that cost far less than you’d expect.
” (Eco-Friendly Finally Got Econ-Friendly, 2010) Today, more automobile manufacturers and government incentives entice shoppers to purchase hybrid or electrical vehicles. The government in addition to car companies is beginning to strictly regulate emission policies and rules. Optimistic reactions and reviews of these new vehicles are ever growing and provide sound reasoning to explore such an endeavor. Once more, there are cons which consist of the huge expense of examining and developing electrical and hybrid vehicles and the vast competition of other automobile makers.
The recommended strategy of choice embraces the most sensible act of ongoing research and the continuation of expansion through the development of hybrid or electric vehicles. Luxury vehicles offer the opportunity of steady increase in profits in the long run, but with the current economic conditions, and slow recovery, and consumers reevaluating the importance of financial security, this alternative should not be the preferred. Most customers want to save money as well as the environment, the hybrid and electric car provide both, the efficiency of smaller and green cars are in high demand.
“With budgets tight, gas prices in flux and fuel economy on everyone’s mind, it’s more important than ever to possess the latest information on fuel-efficient vehicles and energy-saving technologies. ” (About Automotive Fuel Efficiency, 2010) Implementation Bringing into play the recommended choice of the third option, the growth and expansion of hybrid and electrical vehicles must be conducted within a series of phases rather than leap and jump without careful consideration and thorough processes.
The first stage instigates the enhancement and amplification of fuel efficient small automobiles which are affordable in all aspects, cost, fuel, and maintenance. The subsequent dictates a quick response and course of action regarding the investigation and advancement of the hybrid vehicle. Hyundai must move at the right pace, a slow cultivation would result in a negative outcome. Finally the company should work at a steady momentum and quicken the rate of maturity in reference to the electric automobile. It would be wise to remain on constant track or ahead of the competition.
“Obama also instructed the Transportation Department to draw up new interim targets for mileage standards starting in 2012 that ensure new vehicles reach the 35 mile-a-gallon level set by Congress for 2020. He left intact Bush administration guidelines for 2011 models already being designed. ” (Mufson & Eilperin, 2009) More than one (three or four) research and development managers ought to be responsible for the augmentation of small fuel efficient vehicles, making available research, design, and marketing capabilities.
A schedule should be set forth and stringently encouraged, one year to be the time period allotted. Three to four months would reflect the initial one or two vehicles with the completion of six to seven at the end of one year. Hybrid car deliveries references a bit longer, the time frame of two years should be adequate for the introduction of six to seven automobiles with one or two preliminary vehicles within the first six months. The commencement of electric vehicles should as take one year, the trial automobile prepared in six months. A financial plan must be observed in an effort to maintain a good profit level.
The improvements and further growth of small fuel efficient vehicles possess a budget of sixty million, hybrid vehicles three billion, and electric cars eight billion. Evaluation and Control Measuring productivity is a tedious but necessary function of a manager’s responsibility, failure to control the yield and efficiency will ultimately have harmful consequences on the firm, and revenues. Each vehicle type, small fuel efficient, hybrid, and electric vehicles as explained previously will have a time period to fulfill and accomplish required task.
As an example the addition and betterment of the small fuel efficient automobile directs the completion of four assignments during the first month, three during the second, and lastly but not least five throughout the fifth. With each monthly task finalizations, an analysis to evaluate the realization of completed task against what is expected will counteract unproductive and unsuccessful means of use and operations and uphold projected calculations and support, preserve, and control schedules for each vehicle debut.
Research and development managers as well will be evaluated during the sixth month of production on decisive factors and criterion. To effectively and impartially assess and appraise the true performance of the research and development manager’s, upper level staff members such at the Vice President and executive manager overseeing the venture should determine measurable standards. A sampling of considerations and points of review could incorporate the following: ? Vehicle design and fabrication ?Vehicle efficiency: fuel savings and miles per gallon ?
Vehicle charisma and magnetism ?Vehicle performance: Highest speed and horsepower ?Employee performance, turnover, and aptness of developmental stages Control and organization is vital, at all times management must retain timeliness and effectual operations to meet the necessary timetable of each vehicles launching. Just as with the evaluation process, the administration of control will grant opportunities of correction. The review and study of control takes upon the same aspects of evaluation, real numbers verses intended.
The unfavorable and undesirable inconsistencies and conflicts will be swiftly attended to enforce the process of research and development be completed on time. The obligation of reviewing excessive cost factors, overrun of budgeted allowances, and explanations of cause give way of rectifying errors and miscalculations. Hyundai Motor is well known and appreciated for affordability, however quality is a never ending performance issue. Consumers call for vehicles that will withstand the length of his or her loan, with few to no manufacturing defects and areas of concern.
Now is the time to strike, with Toyota and other largely recognized car companies issuing recalls and cause of anxiety, Hyundai must deliver worry free, fuel efficient, environment friendly, and long lasting automobiles. Currently the automobile maker has some of the best warranties on particular parts; nonetheless, Hyundai would be smart to focus on other regions to bestow wonderful warranty programs at no extra charge. Shoppers like to feel secure, financially, mentally, and physically.
Already with a good standing of quality identification and survival and subsistence in a great number of countries allows for an influential potency. Collectively these features demonstrate the ability for Hyundai to place itself as one of the leading contenders in the fuel efficient small, hybrid, and electric automobile industry. ? References About Automotive Fuel Efficiency. (2010). Retrieved September 19, 2010, from MSN. com: http://editorial. autos. msn. com/articles/fuelefficiency/default. aspx Diveristy In Action. (2010).
Retrieved September 19, 2010, from Hyundai: About Us: Diversity: http://www. hyundaiusa. com/about-hyundai/diversity/diversity-in-action/index. aspx Eco-Friendly Finally Got Econ-Friendly. (2010). Retrieved September 18, 2010, from Hyundai: About Us: Environment: http://www. hyundaiusa. com/about-hyundai/environment/ Mufson, S. , & Eilperin, J. (2009, January 27). The Washington Post. Retrieved September 19, 2010, from Obama Issues Orders Toward More Fuel-Efficient Cars: http://www. washingtonpost. com/wp-dyn/content/article/2009/01/26/AR2009012602028. html? nav=emailpage