Analysis of the Daewoo Group
Woo-Chong Kim founded the Daewoo Group in 1967. It became one of the Big Four chaebol in South Korea. Daewoo is an industrial and multi-faceted service conglomerate. Daewoo was prominent in expanding its global market through joint ventures all over the world. During the 1960s, after the downfall of the Syngman Rhee government, the new government intervened to promote growth and development in the country. They increased access to resources, promoted exports, financed industrialization, and provided protection from competition. In exchange for a company's loyalty, the government granted favorable treatment to the chaebol.
In the beginning, the Korean government instigated a series of five-year plans
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Those issues are as follows:
1. Government Interventions: Government policy served as a double edge sworn, it protected the chaebol, providing them with massive subsidies, unlimited cheap credit, and protection against foreign competition. However, the price for these services was total loyalty to the government. Chaebol were forced to take over industries against their will. The government was constantly involved in their businesses and stifled their creativity.
2. Labor Market: Traditional work ethics that helped Korea reach economic prosperity has been threatened as workers have begun increasingly violent protest against years of long hours and low pay. Daewoo shipbuilding suffered heavy loses due to workers demand for pay raises.
3. Operating in a Global Economy: International demands for free trade is forcing the Korean government to open its market. The chaebol will lose its protectionist import controls. Most recently, the North American Free Trade Agreement and the European Economic Community imposed trade
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Kim was most recently charged with allegedly paying campaign contributions to former president Roh Tae Woo government in exchange for a large government contract to build a submarine base.
SOLUTIONS:
Daewoo Group president was an excellent entrepreneur. He led the company's growth from an 18,000 initial capital value to $25 billion in annual sales. Some of the solutions he employed to counter problems identified in his company are as follows:
1. He used organizational politics to work with the government. He understood that to gain power, resources, and growth, he needed the protection of the government.
2. Daewoo Group was excellent at turning around faltering companies due to a well-managed, highly centralized organizational structure. Under Kim's vision, he developed a unique culture in his chaebol known as the Daewoo Spirit. This spirit consists of a commitment to creativity, challenge, and sacrifice. Kim believed in co-prosperity whereby the company provides value to employees, customers, suppliers, partners, and the country as a whole.
3. Daewoo enlarged its capital supply sources by diversifying its method of securing funds, including leasing and deferred payments. They raise funds successfully overseas for large foreign investment
For this purpose, he would have to implement a carefully planned strategy to regain its lost customers and respect from the community. First of all, he has to reintroduce the previous approach before Hannah, the founder, retired. This means he would have to publicly apologize for his unethical decision making and improper treatment of his employees. To further expand the effect for positive results, he should also write a letter to or set up an interview with the local newspaper to get the community’s attention. In addition to this, he should also apologize for wasting Nafeeza’s time. Second, when hiring new employess, he should from now on treat them with respect and dignity, and he should not substitute the costs for employee benefits. To regain high quality work performance, he would have to, as mentioned before, reintroduce the old managerial approach that includes: incentives, improvement meetings, and more than minimum wage. Furthermore, he should refrain from shouting and directing offensive words at his employees, especially in public. Instead, he should from now on call out the employee making errors to meet him in the manager’s office, so they can privately discuss the work-related issues in a professional manner. By doing so, he will achieve respect from his worker, which ultimately results in positive feedback from his community. Lastly, he should immediately develop an innovated
Pearson, Lester B. "Documents on the Korean Crisis." University of Manitoba. January 24, 1951. http://www.umanitoba.ca/libraries/units/archives/canada_war/tribune/website/clippings/korea/Documents_on_the_Korean_Crisis1.shtml (accessed December 18, 2011).
Martin Luther King Jr. once stated, “We must accept finite disappointment, but never lose infinite hope” (Brainy Quotes). Even though a nation agonizes over its collapse, it must never lose its optimistic views for the future. Korea was a nation that was annexed, however the determination for liberation was never diminished. Korea became a colony of Japan in 1910 for its natural resources and also for its territory which had an advantageous position, geographically. Thousands of Koreans who resisted annexation were killed by the Japanese military. During these years under the Japanese rule, the Koreans suffered greatly as the men were forced into extreme labor while the women were bounded into prostitution. Although the majority of Koreans detested the Japanese occupation, they were impotent against the Japanese harsh reign. Developments in industrial activities also took place, partially encouraged by the Japanese government, overall however the country’s citizens were living in destitution. Only the Japanese government was gaining resources and wealth, while Koreans were forced into harsh labor. In 1945, Korea was liberated from this sadistic rule partially due to its continuous efforts for freedom.
Tucker, Spencer C., Jinwung Kim, Michael R, Nichols, Paul G. Pierpaoli, Priscilla Roberst, and Norman R. Zehr, eds. Encyclopedia of the Korean War: A Political, Social, and Military History. Vol. I. Santa Barbara, CA: ABC-CLIO, 2000. Print. 89-90.
Lee, Sue Jin. "The Korean Wave: The Seoul of Asia." Elon 2.1 (2011): 85-93. Print.
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governmental intervention to revive the flailing economy. They demanded a president who would be a hero and representative of his people rather than an aloof,
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