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Date Submitted: 11/24/2010 01:00 AM
Daewoo Motor America Failure
David Vandygriff
University of Phoenix
LDR 531
Professor Margaret McAskill
November 15, 2010
Daewoo Motor America Failure
The research was conducted and provided concerning the failure of Daewoo Motor America. A description of how specific organizational behavior theories could have predicted or explained Daewoo Motor America’s failures will be provided. A compare and contrast of leadership, management, and organizational structures that contributed to Daewoo Motor America’s failure will be conducted. The Daewoo Motor America’s failures will be outlined. In the end, one will see how the organizational behaviors were the key factor in failure.
History of Daewoo
The Daewoo Motor America was a subsidiary to one of the big four conglomerates in South Korea, known as Daewoo Group. The Daewoo Group began in March 1967 and was founded by Kim Woo Choong. Mr. Choong started the company with only $18,000.00 and was reported to have annual sales in excess of $25 billon. The Daewoo group operated with 20 different divisions. The Daewoo Group purchased Saehan Motor in 1978 and changed the company name to Daewoo Motor in 1983 (Pak, Lee, and An, 2002).
Mr. Choong envisioned the success of Daewoo Group through close ties and connections with government. The political support gained helped fend off competitors by his own government. With the close ties to the government, Mr. Choong was able to have access to low interest loans to help ensure growth of his company. The Daewoo Group grew through purchases of defaulted companies and rock bottom prices through the government. As the international marketplace grew, the Daewoo Group entered the international marketplace. After some issues with organization and management of a worldwide company, Daewoo formed smaller groups based on key countries.
The Daewoo Group found the company finances to be in trouble around in the 1990’s, as a direct result of Asia financial crisis....