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KIA organization Organization developement Kyumin Lee
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Abstract Kia motors corporation is the second-largest automobile corporation in South Korea, headquartered in Seoul. Kia motors corporation was founded in 1944 as a manufacturer of steel tubing and bicycle parts by hand. At 1991, Kia expand their market to US - created Kia Motors America, and later, to Europe At 1997, during the asia-financial crisis period, Hyun-dai motor company acquired 51% of the Kia stock.
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Problem Statement To arrive with the successful structural intervention, Kia needs to understand the cultural difference and their marketing preferences. To align the manufacturing and the office department, Kia has to change the structure. To determine how Kia-Hyundai group merged successfully.
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Review of Related Literature For marketing in Europe, Kia sponsored a lot of soccer events. They sponsored US famous sport events like superbowl or LPGA. Kia-Hyundai group might want to keep their organization structure and culture seperately, so that they can develop their organization with their own way. But at the some parts, there are integration of Hyun-dai and Kia.
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Results and Discussions In terms of cultural difference, Kia has to separate each culture in the corporation. To solve communication problem between headquarter office and manufacturing factory, IT technology was improved. To apply sports marketing efficiently, Kia has to change their marketing department to fit with this strategy and needs sports experts To balance Hyun-dai and Kia, some parts need to integrated, and some parts need to separated.
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Conclusion By using localization strategy, they can solve cultural difference problems. In terms of communication problem, they improve IT technology. In terms of balance: two corporations problem, they would better to merged in some parts and separate others parts. (Ex. Design VS Payroll System) For Kia’s successful sports marketing programs, kia needs sports experts.
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References http://www.prnewswire.com/news-releases/kia-motors-america-promotes-three- executives-as-us-sales-market-share-brand-awareness-and-organizational-structure- continue-to-expand-159018095.htmlhttp://www.prnewswire.com/news-releases/kia-motors-america-promotes-three- executives-as-us-sales-market-share-brand-awareness-and-organizational-structure- continue-to-expand-159018095.html Kia Motors America Promotes Three Executives as U.S. Sales, Market Share, Brand Awareness and Organizational Structure Continue to Expand(IRVINE, Calif., June 14, 2012 /PRNewswire) http://businesscasestudies.co.uk/kia-motors/using-sports-marketing-to-engage- withconsumers/promotion.html http://dlsps-online.com/file.php/1/Kia_Hyundai.pdf THE ACQUISITION AND RESTRUCTURING OF KIA MOTORS BY HYUNDAI MOTORS(Yonsei university, school of business/2009-2-3) http://articles.sae.org/12192/ Kia and Hyundai avoid 'cloned' look with separate organizations (Paul Weissler,20013-5-29 SAE international)Paul Weissler
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