1

Chapter-1: Industry Profile

Automotive Industry
Introduction
The world’s fifth largest industry is the automobile industry. India was the world's fifth largest car
manufacturer in 2019 and the seventh largest commercial vehicle manufacturer. 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
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MAJOR PLAYERS IN AUTOMOTIVE INDUSTRY

The majority of Indian vehicle makers rely on foreign technology. However, technology has progressed
over time, and Indian automakers now manufacture their own products using their own technologies. The
automobile business is one of the fastest expanding industries. In the Indian markets, there was no range of
automobiles or designs to choose from. However, the scene has evolved throughout time. Sedans, SUVs, and
MPVs are among the several car classifications available in the Indian market today. The top manufacturing
businesses in India are Hyundai, Maruti Suzuki, Tata Motors, Mahindra, and others.

MARUTI SUZUKI
Maruti Suzuki is an automobile manufacturer whose products or cars are one-of-a-kind or of exceptional
quality. In the Indian passenger car market, it controls around 53% of the market. Maruti Suzuki produced 1.6
million automobiles for both the home and international markets. In India, there are three production factories.
Maruti Suzuki's best-selling vehicles include the Swift Dzire, Brezza, and Alto.

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 one of India's top four automobile manufacturers. Trucks, buses, commercial vehicles, and
automobiles are among Tata's offerings. Tata makes a variety of passenger vehicles, including hatchbacks,
sedans, MUVs, and SUVs. The most popular vehicles are the Tiago, Safari, Nexon, and Hexa.
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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
India's automotive industry is currently valued at $93 billion and is steadily expanding. India's automobile
industry accounts for 49 percent of the country's manufacturing GDP. In 2018, India's automotive sector
generated 7.5 percent of the country's overall GDP (GDP). While this number dipped to 7% this year as a
result of COVID-19, new emission standards, and the economic slump, analysts anticipate it will rise by the
end of the year. All car manufacturing and dealers were shut down for a 40-day period from March to April
2020, contributing to the GDP decrease.

Automotive Industry Trends and Technologies

ARTIFICIAL INTELIGENCE
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Robotic automation applications are discovered using AI technologies such as deep learning, machine
learning, and computer vision in the automotive industry's future trends. Self-driving or autonomous
automobiles are guided by AI, which assists drivers with safety, controls the fleet, and improves services such
as vehicle insurance and inspection. Artificial intelligence is also used in the automotive industry to improve
production rates, accelerate output, and reduce costs. Chabot's is another another excellent example of AI
Development Solutions for Businesses and Enterprises in the automobile sector. They can lend a helping hand
in terms of reducing staff and efforts while also satisfying and serving consumer needs.

AUTONOMOUS VEHICLES

These are self-driving vehicles. They have a clear objective in mind: they want to eliminate the necessity for a
human driver and bring in a revolution in daily transportation. The availability of autonomous vehicles (AVs)
broadens the scope of last-mile deliveries, reduces overall downtime, and aims to convert the concept of
transportation into one that is safe and secure by lowering the number of accidents caused by human drivers'
irresponsibility.

DATA ANALYTICS

When a large amount of data is created during the life cycle of a vehicle, advanced data analytics helps to
guide numerous decisions. The vehicle data is used to qualify predictive maintenance, alert authorities in the
event of an emergency or an accident, and notify fleet managers. Predictive research can help automakers
make judgments about annual sales purchases and production targets. The programme also uses client
automobile data to optimise supply chains, increase sales, and improve the product design of upcoming new
vehicles.

AUTOMOTIVE INDUSTRY IN NEXT FIVE YEARS

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
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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.

CHAPTER-2
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COMPANY PROFILE
Hyundai Motor was created in 1967, and it is the fifth-largest automaker since 2007 and currently includes
more than two dozen auto-related companies and affiliates. After exporting its first vehicle, the Pony, in 1976,
Hyundai Motor now sells over one million high-quality automobiles, including sedans, SUVs, and trucks.

Hyundai's new brand tagline is "New Thinking. New Possibilities." This includes Hyundai's new brand
concept, "Modern Premium," which aims to provide customers with emotional value and positive experiences
based on new thinking and new possibilities. The new brand direction also symbolises the automaker's attitude
of change, which has seen substantial growth across the board.

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

Hyundai Motor India (HMI) is Hyundai Motor's completely owned subsidiary. It has the second-largest vehicle
industry in the country. In February 2008, Hyundai inaugurated its second plant in India, ten years after the
previous one. Hyundai Motor's capacity in India has expanded to 600,000 units per year because to the new $1
billion factory, which was erected in a record 13 months. The second facility is located in Sriperumbudur,
Tamil Nadu, on the same 525-acre area of land as the first.

The i20 and i10, both of which have received the most coveted "Car of the Year" honours from the industry's
main publications, will be produced principally at the new factory.

HISTORY
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Figure 2

For several years, the automobile was leading producer in UK. The globe had 32,028,500 vehicles in use
before the downfall with the United States producing over 90% of cars.

The Cortina, the company's first model, was produced in 1968 in conjunction with Ford and was founded in
1967. Hyundai hired George Turnbull, the former Managing Director of Austin Morris at British Leyland, to
design their own vehicle in February 1974. He then engaged five more of the best British car engineers. One of
them was Kenneth Ba, a body designer.

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.
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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 recognize 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.

Figure 3
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Figure 4

2. HYUNDAI MOVEX

The Terminal Operating System was created by merging the terminal container know-how of global maritime
shipping firm Hyundai Merchant Marine with cutting-edge IT technology from Hyundai U&I. As a result, in
the domestic market, terminal operating systems had the biggest market share.

Hyundai Movex is the country's leading cold storage company, providing a full spectrum of system
engineering services such as consulting, planning, implementing, maintaining, and replacing automated
logistics systems. For more than 30 years, Hyundai Movex has been a key division of Hyundai Elevator Co.,
Ltd. By merging our skills and know-how from many sectors, we build the best logistics system to help our
end clients boost their competitiveness.
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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. 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 prospered thanks to our members'
unwavering support, flawlessly fusing "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 Banyan Tree Kids Club, which offers the best play space as well as a fantastic learning environment for
children. You may potentially be eligible for discounts or benefits as a result of our collaboration.

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. 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 ideas for investing 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 low profile companies, assist investors.

HYUNDAI VISION
Hyundai Company is trying to give everyone the freedom to move by investing in mobility services, building
close alliances with premier mobility service providers, and increasing its role outside of the automotive
transportation sector. By establishing hydrogen as a viable energy source, the company will play a crucial role
in the global society's drive to clean energy.

HYUNDAI MISSION

To give consumers with exceptional automotive value by combining safety, quality, and efficiency. They give
responsible stewardship to the community and environment, guaranteeing stability and security for present and
future generations, thanks to a diversified workforce.

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
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.
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FINANCIAL TARGETS
Hyundai's Strategy 2025 roadmap includes updated mid- to long-term financial goals, such as a KRW 60.1
trillion investment by 2025, an automotive industry operating profit of 8%, and a 5% global automotive market
share. This strategy is an improvement above the one announced in December 2019, and it will be followed
regardless of whether market conditions worsen as a result of the epidemic. KRW 36.6 trillion will be spent on
R&D and capital expenditures to boost 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 expansion of the EV portfolio, investment in
the electrification and hydrogen sectors surged significantly to KRW 14 trillion from KRW 10 trillion the
previous year.

Despite the global market uncertainties generated by COVID-19, Hyundai Motor will continue to pursue its
8% operating profit margin goal for the automotive sector by 2025, establishing the foundation for long-term
success through cost innovation. Internal combustion engine vehicles are projected to reemerge in worldwide
market post COVID-19, and the company will focus on regaining profitability in this case.

ORGANIZATIONAL STRUCTURE
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Figure 11

COMPETITIORS INFORMATION

 Toyota Motor
Toyota, a major Hyundai competitor, is a well-known automobile manufacturer founded in 1937 in
Aichi, Japan. Toyota produces a variety of automobiles that are designed in-house to fulfil market
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demands and compete with its rivals. It plays an important role in research that has led to the
development of automobiles. Toyota manufactures a wide range of vehicles, including automobiles,
SUVs, 4WDs, and hybrids. Toyota is rated sixth in the world in terms of revenue. With the support of
their massive human muscle, the company manufactures around 10 million vehicles each year. Toyota
automobiles are analysed before making a purchase decision. Toyota automobiles are well-known for
their cutting-edge technology.

 Volkswagen

Volkswagen is a well-known vehicle brand and a major Hyundai competitor. Volkswagen was established
in 1937 and is based in Germany. The company manufactures buses, cars, heavy trucks, motorcycles, light
trucks, engines, and nautical apparatus. The company is active in over 117 countries throughout the world.
Every year, the company is estimated to produce roughly 10 million vehicles. Volkswagen is the world's
largest automobile manufacturer, producing models such as the Volkswagen Beetle, Volkswagen Jetta,
Volkswagen Phaeton, Volkswagen Passat, Volkswagen Vento, Volkswagen Polo, and Volkswagen
Touareg.

 Maruti Suzuki
Maruti Suzuki, a well-known vehicle manufacturer situated in New Delhi, India, is another Hyundai
competitor. It was established in 1981. Since the release of the evergreen Maruti 800, the company has
become well-known. It has a strong brand and dominates the Indian market. It is exceptional in terms of
customer service. Maruti is the market leader in the vehicle sector, with a market share of roughly 48.74
percent. The biggest advantage of Maruti is its nationwide dealer and after-sales service network. The
corporation has the most domestic sales, with over 9, 66,447 units sold in the preceding year.
 Honda Motor
Honda is a well-known automobile manufacturer that was founded in 1946 and has its headquarters in
Tokyo, Japan. It is the world's largest maker of motorcycles and internal combustion engines. Every year, it
produces about 14 million internal combustion engines. The success of this brand depends on having a
robust R&D department. Honda's R&D team makes a substantial contribution to the development of a wide
range of products, resulting in elegant and efficient designs that are a huge hit on the market. Honda
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automobiles are well-equipped with cutting-edge technology, which has attracted a large number of
customers.

Tata Motors

Tata Motors, headquartered in Mumba, India, is a well-known vehicle manufacturer. It was established in
1945. With a vast distribution and strong market penetration, it is one of India's oldest and most trusted brands.
This company's various segments include sedans, hatchbacks, and SUVs. It has risen to the top of the
automobile market by focusing on innovative technology to provide value to clients. Tata Motors has highly
qualified employees who provide outstanding customer service. Partnerships with Jaguar, Hispanic, Land
Rover, Macropolo, and others have helped Tata Motors expand its international reach. The organisation has a
robust Research & Development department to suit these needs.

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.

CHAPTER-3

CURRENT STRATEGIES

Wonhee Lee, President and CEO, and top executives presented a comprehensive mid-to-long-term strategy to a
variety of stakeholders, including shareholders and investors, outlining Hyundai's ambition to dominate the
future transportation sector as a Smart Mobility Solution Provider.
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The new Strategy 2025 roadmap is based on three main pillars: Smart Device and Smart Service, which were
both included in the original plan presented in 2019, as well as H2 Solution, which emphasises Hyundai's
commitment to fuel cell research and development.

Hyundai is focusing on three primary strategies: increasing the competitiveness of its automotive industry
through electrification, laying the foundation for being a premier mobility provider, and safeguarding plans for
a hydrogen ecosystem. The updated focuses on four major business areas: electric vehicles, urban air mobility
(UAM), autonomous driving technologies, and hydrogen fuel cell systems, with the goal of providing
customers with innovative and comprehensive mobility experiences while also contributing to the development
of the industry-wide ecosystem.

Among the company executives present were 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 vehicle industry, and obtaining a 5% worldwide market
share range.

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
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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.

 Television advertisements

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

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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
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.
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Figure 12

CHAPTER-4
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McKinsey 7 models
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Figure 13

Hard Elements Soft Elements

Shared Values
Strategy Skills
Structure Style
Systems Staff

Hyundai use the McKinsey 7s model on a regular basis to improve corporate performance and implement
successful change management procedures. Hyundai concentrates on the model's seven aspects to ensure that
performance standards are consistently maintained and improved.

1. Hard elements

1.1. Strategy, structure, and systems are all tough parts of the McKinsey 7s model. The model's difficult
parts are easier to identify, have a more definite form, and are directly controlled and impacted by the
organization's leadership and management.

1.2. Strategies

1.3. Clearly definied

1.4. 1.4. Hyundai's corporate strategy and plan are well-defined and communicated to all workers and
stakeholders. This assists the company in managing performance, coordinating activities, and
developing a variety of strategies that are in line with the organization's plan. In addition, creating and
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disseminating a business plan makes Hyundai's operations more visible and aligns the company's
duties and actions.

1.5. 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.

1.6. 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.

1.7. 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.

1.8. 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
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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 structure that is backed up by innovative and learning companies.
Employees feel more at ease and confident, and they have more access to information, with fewer
managerial levels between them and more access to high management and leadership. Hyundai can also
make faster decisions thanks to the flatter hierarchy, which boosts employee loyalty.

2.2. Inter-departmental coordination

Hyundai's cross-departmental coordination is superb. For projects and tasks that require several expertise,
the company's departments often form inter-departmental teams. Every aspect of cross-departmental
coordination is well-organized and effective. Hyundai has established a framework for starting and
monitoring cross-departmental collaboration to ensure smooth work operations and processes, as well as
goal attainment.

2.3. Internal team dynamics

Hyundai encourages collaboration and teamwork in its programmes. Jobs that require individual attention
and scope are given specific assignments and work tasks. On the other hand, all Hyundai employees must
be team players who can work successfully with and through others while also getting along with them.
Hyundai's teams work together to achieve the company's overall aims and objectives while staying true to
the company's strategy and values.

2.4. Centralization VS. decentralization

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Hyundai's organisational structure is a hybrid of centralization and decentralisation. Hyundai, like many
progressive organisations, prefers decentralised decision-making. Employees regularly collaborate with
their employers to set goals, and job obligations at Hyundai are designed to be fulfilled properly.

Hyundai, on the other hand, makes certain that supervisors review and approve the multiple activities and
techniques that employees do to ensure that they are in line with the company's strategy and values.

2.5. Communication

Hyundai has a comprehensive and well-developed structure in place to ensure that employees and various
levels of management communicate effectively. The company's general structure is strengthened by
Hyundai's communication systems. A seamless flow of information is ensured through structured,
specified, and regulated communication, which ensures that no organisational activities or goals are
jeopardised by 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 function smoothly
and that conflicts and misunderstandings are avoided. The majority of Hyundai's systems are
departmental in nature, including:

- Managing human resources

- Financial support

- Promoting

- Managing operation

- Branding
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- Supply chain management

- Managing public relation

3.2. Defined controls for systems

Hyundai has a special tools and control process to measure the performance in the certain systems. The
nature of the activity and the responsibilities is the reason for the control of each department. All those
departments control the people performance in a different way and also evaluates them.

3.3. Controls monitoring and evaluation

The controls which was developed for them to use helps them to monitor the systems regularly. This
monitoring of the performance is a daily routine. This monitoring is done by discussing casually and by
observing. A feedback is received informally by workers and other departments regularly. The project
requirements demand the performance evaluation which is done quarterly or semi-annually. This
process is structurally maintained that the managers and supervisors use this process to monitor and
analyse the performance gaps and suggests if any.

3.4. Internal processes for organizational alignment

Hyundai has its own process and some methods for monitoring the different departments of the
company are working with relation to the company’s objectives which should be archived. This
process is done by ensuring the systems are designed and achieving objectives and focusing on the
particular area and as part of overall business mission and vision. Also Hyundai strategy will ensure
that all systems are resourced and the targets are set to archive the goals or objectives.

4. Soft elements
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The McKinsey 7s model's soft aspects include shared values, people, skills, and strategy. These
elements are less visible and are more influenced by organisational culture. As a result, management
has no direct impact or control over them. These characteristics are more harder to identify and
pinpoint, yet they are just as important for a company's success and improved performance.

4.1.Shared values

Hyundai's fundamental values are defined and conveyed in order to foster a creative and supportive
organisational structure that encourages employees to perform at their best while also increasing their
motivation and devotion to the company. Some of Hyundai's basic values are listed below, but they are
not exhaustive: - Hyundai's key principles are defined and disseminated in order to develop a creative
and supportive organisational structure that helps employees to work at their best while also increasing
their passion and dedication to the company. Some of Hyundai's basic values are listed here, but they
are not exhaustive: -

-Uniqueness

- Honesty

- Transparency

- Accountability

- Trust

- Quality

- Heritage

4.2. Corporate culture

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Hyundai values diversity and encourages a welcoming environment. Hyundai has a global footprint,
with manufacturing facilities in numerous countries; as a result, the company ensures that its
organisational culture is accepting of diversity and that internal measures to prevent prejudice are in
place.

Hyundai's corporate culture fosters innovation and creativity by letting individuals and teams to
develop independently, allowing them to shape their careers and identities. Finally, Hyundai's
corporate culture includes a supportive leadership that focuses on enhancing staff motivation and job
satisfaction through increased exposure.

4.3. Task alligbments with values

Hyundai ensures that all staff roles and duties are in line with the company's core principles. This means
that all of Hyundai's actions, processes, and strategic approaches will be consistent with the company's core
values. This is necessary in order to maintain a constant and reliable brand image, as well as an open and
honest business culture. The company will continue to guarantee that all change management procedures
and methodologies match the company's core values, ensuring that the company's culture is preserved and,
if necessary, changed progressively.

5. Style

5.1. Management and leadership styles

Hyundai has a participative management strategy. Hyundai employs a participative leadership

approach to involve and engage its staff in decision-making and management decisions. This also
allows management to meet with employees and other management groups on a regular basis to detect
and resolve possible issues, as well as receive feedback on strategic approaches and operations.
Hyundai is able to increase employee motivation, organisational engagement, and ownership among
employees and other stakeholders by implementing participatory leadership.

5.2. Effectiveness of leadership styles

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Participative leadership is very helpful in accomplishing the firm's commercial goals and vision.
Employees believe they are active members of the organisation, and that their opinions, ideas, and
efforts are valued. Furthermore, participatory leadership can be used by leaders and managers to
identify current and potential problems within the Hyundai organisation and attempt to remedy them
as quickly as feasible.

5.3. Internal cooperation and competition

Internal collaboration and cooperation across individuals, systems, teams, and departments are
facilitated by Hyundai's supportive and encouraging organisational culture. Because Hyundai's
operations are dispersed around the globe, and internal responsibilities and obligations require inter-
departmental feedback and input on occasion, this cooperation and collaboration is critical. Project
teams are formed on a regular basis as the company grows and synergizes, and they perform well
because to Hyundai's cooperative and collaborative culture.

5.4. Team VS. Group

Hyundai has well-oiled teams that work together to achieve the company's numerous business goals and
objectives, as well as to fulfil their obligations. The leadership provides a compelling and realistic vision
for the company's growth, and the company's management is encouraging and helpful. All employees are
equally and transparently supported in their advancement through the human resource management system
and organisational training. This results in efficient team building inside the organisation for diverse
initiatives as well as department-specific tasks and functions, rather than nominal groups.

6. Staff

6.1. Employee skill level VS business goals

Hyundai has a huge workforce throughout its global businesses. Employees for various job types and
tasks are employed both within and externally, depending on the level of urgency and skill required.
As a result, it's clear that Hyundai hires employees who are well-versed in their respective fields. To
 31

familiarise themselves with the organisation and its goals, all employees receive on-the-job training.
To raise skill levels, both external and internal training is available.

6.2. Number of employees

Hyundai has a huge number of employees. The number of employees varies by country, based on the
business and activity's requirements and needs. Hyundai's global team welcomes, embraces, and
supports diversity, and it works together to achieve business objectives. The most crucial component
of Hyundai's success is its team members and employees.

6.3. Capacities and capabilities

Hyundai has a well-defined strategy in place for determining future organisational skills and capacity
needs. The business's human resource function takes a rigorous approach to recognising potential vacancies
or skill gaps, and all other divisions are involved. The human resource department conducts permanent or
temporary recruiting as well as training sessions for current employees, depending on the nature of the
need.

7. Skills

7.1. Employee skills

Hyundai has a fantastic workforce with a wide range of skills and abilities. Employees are hired based
on their qualifications and merit. Hyundai takes pride in hiring the best employees and investing in
their advancement.

7.2. Task requirements VS employee skills

Hyundai defines work roles and responsibilities, and hires and trains employees with the required skill
sets. All job criteria are met, and employees have the requisite abilities to carry out their
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responsibilities in accordance with Hyundai's values and culture, as well as the company's business
goals and strategy.

7.3. Skill management

Hyundai places a high value on the development of its employees' skills and abilities. It holds training
and workshops for its staff on a regular basis, both internally and externally managed, to provide
possibilities for growth and development. Hyundai prioritises its employees' personal and professional
development and collaborates closely with them to achieve this goal.

7.4. Advantage of competition

Human resources are one of the company's primary competitive advantages. Staff skills are developed
specifically for Hyundai's work duties and requirements, and they give the company a competitive advantage
because competitors can't duplicate employee skills or training. Hyundai now possesses a one-of-a-kind, non-
replaceable skill set.
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Figure 14
 34

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
 35

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.
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 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.
 37

 Manufacturing network

Hyundai has also developed a world-class manufacturing infrastructure. In Ulsan, South Korea, it owns
one of the world's largest vehicle plants. According to Wikipedia, Hyundai has the world's single
largest integrated automotive production complex, with an annual capacity of 1.6 million units.
According to Statista, the plant will produce 1.5 million vehicles by 2020. Hyundai has also opened
two new plants in Asan and Jeonju, South Korea. Apart from that, it has opened additional
manufacturing facilities in several areas to fulfil local demand. The following locations have had plants
established: Russia.

WEAKNESSES

 Decline in the Chinese market

China surpassed the United States as the world's largest automotive market a few years ago. Hyundai
Motors, on the other hand, has not fared as well in this market as it has in most other key vehicle
markets where it sells its vehicles, such as the United States and India. In comparison to the early
2010s, the company's market share has been declining in subsequent years. Hyundai's market share in
China's car market has declined from 9.8% in 2011 to 2.7 percent in 2018, according to Statista. For
automobile makers, China is a critical market, and any company that succeeds in conquering the
world's largest market would enjoy massive 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.
 38

 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 understand the value of marketing in achieving long-term success. Because it competes
against such large competitors as Ford, GM, Volkswagen, and Toyota, it risks losing market share in a
variety of crucial sectors if it does not maintain its marketing focus. It has already lost a significant
chunk of the Chinese market, and its efforts to increase sales in that country have also failed. However,
in markets where sales are strong, such as India and the United States, the company needs invest on
digital marketing and consumer engagement to grow its penetration and attract more middle-class
customers.

 Technologies

Automobile manufacturers are putting money into cutting-edge technology to improve the appeal of
their product lines as well as the performance of specific products. In order for Hyundai's products to
continue to outperform their global competition, the company must maintain its focus on cutting-edge
technologies. Artificial intelligence, self-driving cars, and electric mobility are just a few of the hottest
sectors where companies are investing heavily in research and development.

 Chinese market
 39

Hyundai has had a tenuous hold on the Chinese market for several years. While government retaliation
was blamed for the company's sales decrease in China, it was also claimed that the company had lost
touch with local tastes. Hyundai should concentrate on creating vehicles that are specifically tailored to
the needs and expectations of Chinese buyers. While Hyundai's sales have plummeted since 2016, this
does not rule out the potential of the company exiting the market in the future. It may yet be able to
increase its market share in China by focusing on the types of vehicles that Chinese purchasers desire.
It has already shown to be a success 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 strong competition in the global market is the biggest danger to Hyundai sales. Hyundai competes
against a bevvy of multinational brands, including General Motors, Ford, and Toyota, as well as local
brands in areas like India and China. The main vehicle manufacturers are investing much in R&D,
marketing, and boosting the appeal of their product ranges. The high level of competition is also a
major stumbling block to faster global market expansion, putting a larger emphasis on innovation.
Hyundai's operating costs are also rising as a result of increased R&D, marketing, and sourcing
expenditures.
 40

 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.
 41

Figure 16
 42

PESTLE ANALYSIS

Figure 17

Hyundai's PESTLE Analysis examines the company's business strategies. The PESTLE Analysis of Hyundai
looks at the company's influence on political, economic, social, and technical (PEST) issues, as well as legal
and environmental considerations. The PESTLE Analysis identifies the various extrinsic factors that have an
impact on a company's bottom line.

 Political factors
 43

These are the explanation of the political elements in the Hyundai PESTLE Analysis:

Hyundai is a multinational automobile manufacturer with operations in several countries. Political stability in
Asia-Pacific is improving, according to the Political Stability Index, which is excellent news for Hyundai.
Where investments are invested can also be influenced by the political relationships that exist between the two
countries. Unfriendly relations with a country can result in higher taxes and more frequent and severe
inspections. Hyundai's operations may be impacted by government rules and changes in government.

 Economic factors

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

The market continues to grow and slow all around the world. In India, one of Hyundai's most important
markets, the economic downturn has taken its toll. There have been approximately 3.5 lakh job losses.
Various car behemoths are attempting to minimise the decline by giving steep discounts and adopting a
variety of sales-boosting strategies. Despite the fact that other Hyundai models appear to be hurt by the
current economic environment, Hyundai automobiles are performing admirably. It provides an
excellent experience due to its beautiful appearance and new features. As a result, despite being a
latecomer to the Compact SUV segment, it has a sizable market share. The situation is terrible, with
unemployment rates as high as 6%, or 30 million unemployed individuals.

 Social factors

The social elements influencing Hyundai PESTLE Analysis are as follows:

Given that males and females share a 60:40 driver ratio, Hyundai should undoubtedly cater to both
sexes' desires and customise its products accordingly. Hyundai also caters to people in the middle and
upper classes. Consider the following scenario: Hyundai offers over 15 models, with prices ranging
from $6000 to $35000.
 44

 Technological factors

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

Hyundai's gasoline direct injection (GDI) technology improves fuel efficiency while lowering CO2
emissions. Hyundai vehicles, on the other hand, receive lower fuel economy than Maruti Suzuki
vehicles in the same class. Furthermore, a large number of businesses have begun to work on AI.

 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

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
 45

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 PESTLE Analysis of Hyundai highlights the several aspects that influence the
company's performance. This understanding assists in determining the value of external business

factors for any brand.

Figure 18
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B) FINANCIAL STATEMENT ANALYSIS

47
 48

Classification 2020 2019 2018 2017

Liability 174.2% 154.7% 144.5% 138.4%

equity

Return on 1.9% 3.0% 1.7% 4.7%

sales

Debt to 119.7% 106.6% 99.2% 96.3%

equity

EPS 5,454 11,310 5,632 14,993

Financial Ratio
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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.