WAQAS ALI KHAN / REG.

1552208008

NAME: - WAQAS ALI KHAN

REG. No.:- 1552208008

PROGRAM: - EMBA (Health Management)

COURSE: - PRINCIPAL OF MANAGEMENT

SESSION: - 2008-09

ASSIGNMENT TOPIC: - “CASE STUDY”

(Restructuring at Korea’s Daewoo)

COURSE FACILITATOR: - MR.FEROZ ALAM

 WAQAS ALI KHAN / REG. 1552208008

“CASE STUDY”
(Restructuring at Korea’s Daewoo)

Q.1 What are the advantages of a hands-off, decentralized

Management approach?

Ans.Advantages of a hands-off Decentralization:

1. Some experts believe that decentralization encourages the
development of professional managers. As decision making
authority is pushed down in the organization, manager must adapt
and prove themselves if they are to advance.
2. In decentralization mangers or employees from lower level
participate in decision making, that participation increases
their loyalty and dedication for their organization. In other
words this can be use as the motivation tool for organizational
success.

Disadvantages of a hands-off Decentralization:

1. Managers must be trained to handle decision making, and this
may require expensive formal training program.
2. Since many managers have worked in centralized organizations,
it is uncomfortable for them to delegate authority in a
decentralized management. Their attitudes are difficult to alter,
and attempts often lead to resistance.

Q.2 How can Daewoo stay competitive with the Japanese?

Ans. Following strategic objectives can be more effective for

Daewoo stay competitive with the Japanese:-

1. Full Product line; presence in all segments in Local and

International market.
2. Improved Car sales in Europe and Asia.
3. Should be developed more Sales and Service network in
International market.
4. Financial Power; Productivity should be enhance.
5. Innovation potential and technologies know-how.
6. Developed lower-price products, especially for Asia.
7. Worldwide assembly and production.
8. Brand Image for Luxury Cars.
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Q.3 What were some of the controllable and uncontrollable factors

in this case? How should Mr. Kim have responded to
those factors?

Ans. Controllable factors in this Case;

1. Philosophy of Hard work.
2. Value Placed in People.
3. Quality Products.
4. Long time achievable plans.
5. Avoiding of fixing blame on employees.

Uncontrollable factors in this Case;

1. Unprofitable heavy shipping units.
2. Labor Coast.
3. Unnecessary expenses.
4. Lack of proper check and balance.
5. Financial Discipline.

Mr. Kim should have responded;

1. Reforms corporate structure for proper check & balance.
2. Concentrations of power of controlling shareholders.
3. Enhance transparency and accountability.
4. Reward and Motivation by peers.
5. Control Focus on Group performance.

Q.4 What do you think of Daewoo expansion into Europe? What are
the advantages and risks for the company?

Ans.In my opinion the importance of Daewoo's moves in Europe, as

well as the importance of Daewoo Motor when Kim moved to
concentrate solely on the Daewoo Group's overseas auto business.
The company's expansion into Eastern Europe seemed savvy as the
region's emerging democracies could provide the car manufacturer
with cheap labor, and as the market for affordable, also the
joint venture could be very valuable impact in international
market.

Advantages for the Company;

1. Establishing existing brands in new markets.
2. Addressing needs in new segments.
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3. Developing and introducing new models.

4. Utilizing new sales channels.
5. Broadening service (mobility, & Financing).

Risks for the Company:

1. Economic problems in emerging markets.
2. Potential conflicts in operational and management systems.
3. Falling stock market value.
4. Lack of product to entered lower-priced segment.
5. High-priced Position.

Q.5 What do you think GM acquired the company, while Ford did
not?

Ans. The acquisition is a key component of GM global strategy. On

the other hand, restructuring Daewoo is going to be formidable
task. The branch image has to be stored. The Korean Market of
share 10 percent has to be improved. Further, GM existing
production capacity has to be constrained by demand for its
current and a couple of its future models. While Ford strategy
did not want vast experiment and also did not want to take risk
to establish the bankrupt company from the bottom-line. Ford also
avoid the down falls factors into the share market.

Q.6 What Problems can GM-Daewoo expect in the future?

GM-Daewoo Problems could be expected in Future;

1. Economic problems should be raised by changing political
situation.
2. Technologies competition behind the Japanese Market.
3. Stable European Export Markets.
4. Industry Coast competitiveness.
5. Increases Wages.
6. Customer Demanding Position.
7. Stock Market value persists.