Overview of KIA Motor

An organization can only be made effective by utilizing their resources in an efficient manner and organization is completely aware of their strengths and weaknesses. Globalization has changed the scenario in the global market due to increase in competition among the global industry giants and entry of the smaller players in the market. Automobile industry is the global market is always a highly competitive market due to the presence of companies such as Toyota, Ford, Renault and Volkswagen. KIA motor is among the top companies in the automobile industry but it is still is the follower in the market.  There are different cases in the appendices which depict the various strengths and weaknesses of the company and the various due to which the organization has not been able to gain competitive advantage over the global leader, Toyota.

KIA motor is one of the South Korean automobile and is the second largest producer of automobiles in South Korea. The stakeholders are not pleased with the performance of the organization and they expect the organization to do much better and pose a significant threat in the global market. The organization has developed effectively human resource policies to provide employees with benefits and motivate them to work at their full potential. However, the employees are provided with low compensation packages which have developed dissatisfaction among a huge chunk of employees. On the other hand, the biggest concern for the organization is the suppliers that always try to control the prices of the raw materials. Toyota is the market leader and is the biggest competitor for KIA Motor. Toyota has established good relationship with their suppliers and has used innovative ideas to introduce economies of scale into their business model. This is the reason that they are able to serve better quality automobiles at similar prices which has provided them with competitive advantage.

The main objective of the company is to gain competitive advantage in the market by increasing their sales volumes and decreasing their production cost.  The quality of product by KIA motor is high but they lack in their marketing activities which has not been able to leverage their position in the market. Moreover, the some of their cars sold in the United States had technical issues which had an adverse effect on the brand image.  Therefore, the organization aims to improve their marketing strategies to enhance the recognition off the brand and the product line. The organization wishes to use market development to enter new markets to increase their sales volumes by keeping a close eye on the competitors.

The major issues faced by the organization are inconsistent payment of the employees in the organization and development of effective reward system for the employees. Therefore, it is essential for the organization to motivate their workforce to perform in a better way to gain competitive advantage.  The supplier policy of KIA motor is also faulty which shows that developing better relationship with the internal stakeholders is another factor that the organization will have to focus on. Therefore, the prime objective of this project is improvement in salary structure, conduction sessions with the employees, develop effective marketing strategy and add value to the brand by using technological advancement. However, the organization will face issues due to lack of effective branding policies and absence of multicultural dimension.

Issues Faced by KIA Motor

There are three major recommendations that are being provided to the organizations for sustaining their growth in the business are improvement in global human resources management policy. This can be achieved by engaging the employees effectively which will boost the morale the workforce. Moreover, this will facilitate in reducing the turnover rate of the organization thus by decreasing the human resource cost. This can be achieved by using innovative strategies for improving the engagement of employees. The organization has also been recommended to promote positive attitude among the employees.  These will enable to increase their competencies in the international market.  The organization will also have to develop rewards and recognition programs for motivating the employees and thanking them for their service to the organization.

The next strategy recommended to the organization is development of effective sales strategy for attaining success in the global market that is sustainable. This is highly recommended before making an expansion into foreign market and using market development strategy.   Therefore, analyzing the foreign market and understanding the needs of the local consumers is essential. KIA motors will be able to develop automobiles based on these specifications that will suit the need of the consumers. The organization will also have to analyze the disposable income of the consumers so that they can develop products based on the purchasing power of the consumers. In order to compete in the global market, KIA motors will have to use competitive pricing as a strategy. The organization will also to make improvement in their supply chain process which is necessary for increasing their production capacity. This can be obtained by using innovative technological processes which will improve the overall logistics process. The organization will have to use economies of scale to increase the efficiency of the supply chain processes and reduce their cost of production. This will enable them to use competitive pricing effectively to attain cost leadership in the market and gain majority of the market share.  Moreover, the organization can outsource their business units to reduce the cost of production in developing countries where the labour costs are low. The organization will also have to focus on their marketing strategy where they will have to make use of digital communication to increase their market penetration.

W.E.I.M is a strategy which consists of factors such as Workforce, economies of scale, innovation and marketing. These factors are the key factors for improving the market competitiveness of KIA motors. These factors will have their own set of metrics which will be used to identify the success of the strategy. Workforce management will consist of metrics such as reduction in turnover art, increase in productivity, motivation level of employees and employee participation. Economies of scale will deal with metrics such as cost reduction, quality, production rate and stock availability. Innovation will use metrics such as increase in efficiency of the processes and improvement in the quality of the products. Marketing will use metric such as increases in sales volumes, increase the footfall in outlets, and increase in traffic on online websites and social media websites.  These factors will be essential for developing a balance scorecard which will be essential for evaluating the progress of KIA motors.

Strategy map

Recommendations for Sustainable Growth

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