NEW THINKING, NEW POSSIBILITIES

HYUNDAI MOTOR

Batkalova Zhanelya-202201199
Georget Arthur - 202208401
Abdullaev Azizkhon-202201123
Nazmul Hasan-202201153 SolBridge International School of Business
CONTENTS

I. Introduction

1. The history of the car manufacturer HYUNDAI

2. Founder’s Bio / Profile
3. Mission and Vision
4. Organization chart

II. The description of HYUNDAI's successful Business Model

III. SWOT Analysis

IV. References
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I. INTRODUCTION

YEAR OF FOUNDATION: 1967

FOUNDER: CHUNG JU-YUNG
INDUSTRY: AUTOMOTIVE
REVENUE: 117.6 TRILLION KRW
HEADQUARTERS: SEOUL

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1. THE HISTORY OF THE CAR MANUFACTURER HYUNDAI

Hyundai Motor Company- is a South Korean multinational automotive

manufacturer headquartered in Seoul, South Korea.

The company owns 33.88% of Kia Corporation, and also fully owns two
marques including its luxury cars subsidiary, Genesis Motor, and an
electric vehicle sub-brand, Ioniq.

Those three brands altogether comprise the Hyundai Motor Group.

Hyundai operates the world's largest integrated automobile
manufacturing facility in Ulsan.

Hyundai vehicles are sold in 193 countries through 5,000 dealerships

and showrooms.
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1. THE HISTORY OF THE CAR MANUFACTURER HYUNDAI

A GENERAL OVERVIEW...

1967 1975 1980s 2000s 2010s

Hyundai Motor Launch of the 'Pony' Rapid expansion and Internationalisation Pioneering the mobility
Company is founded car, Hyundai's first first electric/hybrid of Hyundai and focus of tomorrow, moving
and the first factory own design models on quality, design towards environmentally
opens in Ulsan. and manufacturing friendly vehicles and
of its models technologies

"SHAPED BY HISTORY, PROGRESS NEVER HAPPENS BY CHANCE"

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AND TODAY...?

South Korea's largest car manufacturer

Produces over 6.5 million vehicles in one year

The country's largest employer, with 75,000 employees

Launched the IONIQ 5, the first Battery Electric Vehicle (BEV) model

4th largest car manufacturer in the world

The Ulsan factory is the world's largest integrated automotive

plant with a production capacity of 1.6 million units per year

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2. FOUNDER’S BIO / PROFILE
CHUNG JU-YUNG

THE BEGINNING OF AN EXTRAORDINARY ADVENTURE...

Born in Asan, a village 50 km north of the Korean Demilitarized Zone, now North Korea
Growing up in a modest family and destined to take over the family farm
He ran away from home three times), in the hope of a better future than the one his
family had in store for him.
Ju-yung discovered a passion for civil engineering

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THE IMPORTANT MOMENTS OF HIS LIFE...

1931,1932,1933: BIG ESCAPE

He tried to escape in order to get freedom and escape the poverty of his family

1941: FIRST EXPERIENCE WITH THE AUTOMOBILE INDUSTRY

In 1941, he opened an automobile garage in Seoul – his. Ju-yung would later proudly recount that his garage
“repaired in five days what the competition repaired in twenty days’ The company already displayed the future
qualities of the Hyundai brand.

1947: CONTRIBUTION FOR WAR

After going from 20 to 70 employees in just three years, the garage merged – by government decision –
with steelworks to support the war effort.

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 An entrepreneurial profile...
RESOURCEFULNESS
Chung Ju-Yung had an idea
that he developed intelligently
and which led him to success.
He started from nothing
(having lived in a very modest
environment) but still managed
to adopt a winning mindset.
Allow Hyundai to become one
of the leading South Korean
chaebols.
STRONG DESIRE TO BE
THEIR OWN BOSSES
Since he began his projects,
the founder of Hyundai has
been on his own and has made
his mark by setting up his own
business.
Distinguished himself with his
challenging spirit and strong
leadership conviction.
DEAL WITH
UNCERTAINTY AND RISK
Embodies risk management,
particularly in the number of
projects he took on without
anyone predicting that it would
work.
In order to get out of his modest
background he played with
uncertainty, especially in his
many attempts to escape.
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3. MISSION AND VISION

MISSION
MISSION STATEMENT
"To create exceptional automotive value for our customers by
harmoniously blending safety, quality and efficiency".

THE MAIN MISSIONS

Ensuring stability and security today and for future generations
Realization of possibilities
Ensuring stewardship of our environment
Respect for mankind

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3. MISSION AND VISION

VISION

VISION STATEMENT
"We are here to do the right thing for humanity".

HYUNDAI'S VISION
Do the right thing, for humanity and the future
Humanity unites us and makes us stronger
Having an eye towards clean energy and sustainable transition
Believing in the value of humanity to strengthen our relationships

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 4. ORGANIZATION CHART
Board of Directors

Chairman & CEO

Trading Department Management Department HR Department

Commercial Infra & Petroleum & Corporate Strategy Finance &

Auto & Parts Management Accounting
Vehicle & Energy Machinery Chemical
Division Division Division
Division Division Products Division

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4. ORGANIZATION CHART

FUNCTIONAL DEPARTMENTALIZATION
DIVISION OF HYUNDAI ACCORDING TO GROUP FUNCTIONS

Management Department HR Department Trading Department

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II. HYUNDAI'S SUCCESSFUL BUSINESS MODEL
The main goal of Hyundai Motors- is to be the best automobile company and a global
corporate citizen. Their business plan is based on designing and manufacturing vehicles.

Distribution of revenue by spectators:

Sales of brand new car
Automobiles
Commercial vehicles
Engines
Auto parts
After-sale services

Based on the data on the official website of Hyundai Motors,

On April 25, 2022 – Hyundai Motor Company announced its business results for the first
quarter of 2022.

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 Business Model Affiliates
Hyundai owns 33.88% of Kia
Strategic alliance with DaimlerChrysler
Genesis Motors is the luxury car branch of Hyundai

KEY PARTNERS Manufacturers of parts and components

Technology developers
Distribution network
Hyundai Motorsport

Design
Research a development
Manufacturing and distribution
Production

KEY ACTIVITIES Quality control

Branding
Marketing
Salesforce
Sponsorships
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 Manufacturing plans
The company employs about 75.000 people
worldwide
Hyundai vehicles are sold in 193 countries through

KEY some 5000 dealerships and showrooms

Annual production capacity of 1.6 million units

RESOURCES Facilities and technology

Distribution network
Intellectual property
Brand
Hyundai has made an app with augmented reality
Showing users how to operate and maintain vehicles
Management Philosophy

VALUE Bring a new perspective to automobiles

Quality and innovation in mobility solutions
PROPOSITIONS Affordable TCO
Electric and hybrid vehicles

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 DESIGN EMPHASIS
"LIFETIME PARTNER IN AUTOMOBILES AND BEYOND"
ECO-FRIENDLY AND HUMAN-ORIENTED
TECHNOLOGIES
CUSTOMER ASSISTANCE

COSTUMER BRAND AWARENESS

REPUTATION

RELATIONSHIP RECOMMENDATION
CAMPAIGNS
SPONSORSHIPS

SHOWROOMS
ONLINE
SPONSORSHIPS. DEALERS REPAIRING SHOPS

CHANNELS RETAILERS
WEBSITE
SOCIAL NETWORKS
HYUNDAI TV
VEHICLE LINE-UP
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COSTUMER SEGMENTS
COST STRUCTURE

MASS MARKET
BUSINESS FLEET R&D
BRAND-CONSCIOUS DESIGN
CUSTOMERS MARKETING
PARTS AND COMPONENTS
TECHNOLOGY INCORPORATED TO
REVENUE STREAMS VEHICLES
MANUFACTURING PLANTS
SALES OF BRAND NEW CARS DEVELOPMENT AND MAINTENANCE OF
AUTOMOBILES PRODUCTIVE CAPABILITIES
COMMERCIAL VEHICLES MARKETING
ENGINES
AUTO PARTS
AFTER SALE SERVICES 17
REVENUE
THE FIRST-QUARTER REVENUE AND OPERATING PROFIT INCREASED 10.6 PERCENT
AND 16.8 PERCENT YEAR-OVER-YEAR TO KRW 30.3 TRILLION AND 1.93 TRILLION.

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During the period, the operating profit margin finished at 6.4
percent.

Net profit (including non-controlling interest) was up 16.8 percent

to KRW 1.78 trillion, paving the way for achieving its annual
guidance for 2022.

Hyundai sold 902,945 units around the globe in the January–

March period, a 9.7 percent decrease from the year earlier.

Sales in markets outside of Korea were down by 7.8 percent to

750,847 units, and sales in Korea decreased by 18 percent to
152,098 units.

The decrease in sales volume mainly stemmed from the chip and
component shortage hit worldwide.
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● AS WE CAN SEE IN THE PICTURE ABOVE, NORTH AMERICA (USA, CANADA,
MEXICO) RECEIVES HYUNDAI PRODUCTS MOSTLY. IN 2022, THE TOTAL
NUMBER OF EXPORTED PARCELS REACHED 417.351.

● EUROPE IMPORTED THE LEAST, A TOTAL NUMBER OF 102.271

● MEDIAN NUMBER TOOK OTHERS( LATIN AMERICA, RUSSIA, CENTRAL ASIA,
MIDDLE/EAST AFRICA, ASIA PACIFIC)- 216.148

COMPARED TO LAST YEAR, THE TOTAL NUMBER OF EXPORTS IS LOWER TO

184.280 VEHICLES. 20
BUSINESS MODEL DUE 2030
TO INCREASE A PROFIT THE COMPANY WILL FOCUS ON ENHANCING ITS
PRODUCT MIX WITH SUV AND LUXURY MODELS AND SECURING
PROFITABILITY BASED ON COST INNOVATION TO BECOME A LEADER IN
THE FUTURE MOBILITY INDUSTRY DESPITE THE CHALLENGING BUSINESS
ENVIRONMENT.

HYUNDAI DISCLOSED LONG-TERM FINANCIAL GOALS RUNNING THROUGH

2030, INCLUDING AN INVESTMENT OF KRW 95.5 TRILLION. OUT OF THE
TOTAL INVESTMENT, KRW 39.1 TRILLION WILL BE ALLOCATED FOR
RESEARCH AND DEVELOPMENT, AND KRW 43.6 TRILLION FOR CAPITAL
EXPENDITURES TO ENHANCE BUSINESS COMPETITIVENESS, WHILE KRW
12.8 TRILLION WILL BE DEDICATED TO STRATEGIC INVESTMENT.

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III. SWOT ANALYSIS OF HYUNDAI MOTORS

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III. SWOT Analysis

S
STRENGTHS
One of the largest car manufacturers in the
world
Affordable, safe, and comfortable vehicles
with the highest reputation - provide a 5-year
guarantee for any new car sold.
Strong business model and transparency of
the company
High sales around the world

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III. SWOT Analysis

W
WEAKNESSES
Low presence and no stability in the US
market. The USA is a leading place for vehicles
sold
Brand promotion and advertisement. Since
Hyundai has the largest manufacturer in the
world, it doesn't incline to promote
Few brands which reduce the number of
segments (Hyundai only owns KIA)

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III. SWOT Analysis

O
OPPORTUNITIES
The demand for hybrid/electric vehicles is gaining
more interest and attention. Indeed, the electric car
seems to be the future of transport. This illustrates
new growth perspectives with new consumers.
Development of new production and assembly
methods in the factories (increase production volume
and reduce costs)
Many technological opportunities for manufacturers
to develop (in terms of vehicle options, design,
technical improvements...)
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III. SWOT Analysis

T
THREATS
Competitors - nowadays the automotive spectrum is
getting wider by the day (Toyota, Volkswagen and
General Motors have conquered the major world
markets)
Increasing environmental/ecological pressure from
institutions and consumers - forcing companies to
change their production model, which may disrupt
them.
Shortage or lack of parts for the creation of vehicles
(these crises can have an impact and slow down the
growth of the industry).
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IV. REFERENCES
Over 50 years of progress: the history of Hyundai. (n.d.). Retrieved November 2, 2022, from
https://www.hyundai.news/eu/articles/press-releases/over-50-years-of-progress-the-hi story-of-hyundai.html

Hyundai Group - Company History. (n.d.). Retrieved November 2, 2022, from

https://www.company-histories.com/Hyundai-Group-Company-History.html

Hyundai Motor Announces 2022 1Q Business Results. (2022, April 25). HYUNDAI MOTORS.
https://www.hyundai.com/worldwide/en/company/newsroom/hyundai-motor-announc es-2022-1q-business-
results

Sales Performance | IR Activities | IR | Company | Company - Hyundai Worldwide. (n.d.). Hyundai Motor
Company, Hyundai Worldwide, Ir, Activities, Sales Performance. Retrieved November 2, 2022, from
https://www.hyundai.com/worldwide/en/company/ir/ir-activities/sales-performance

Hyundai Motor Accelerates Electrification Strategy, Targeting 7% of Global EV Market by 2030. (2022, June 13).
Hyundai Motor Group.
https://www.hyundaimotorgroup.com/news/CONT

Shastri, A. (2022, October 28). Detailed SWOT Analysis Of Hyundai - 2022 Update. IIDE.
https://iide.co/case-studies/swot-analysis-of-hyundai

Jurevicius, O. (2022, August 16). SWOT Analysis of Hyundai 2022. Strategic Management Insight.
https://strategicmanagementinsight.com/swot-analyses/hyundai-swot-analysis/
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