Brent McClain
LDR/531
23 May 2011
Annie Moats
The Failure of Daewoo Motor America
In Korean, Daewoo means Great Universe. Looking posterior at what Daewoo had become before their collapse in 1999, superstar would have to acknowledge that the Daewoo Group operated in almost any industry in the universe to be sure. They had interests in electronics, shipbuilding, construction, moneymaking(prenominal) vehicles, personal vehicles, small arms, musical instruments, and investing. The Group consisted of 275 subsidiaries with interests in much than 100 countries, and they were the second largest company in southmost Korea, tracking only Samsung in size and revenue (The Economist, 1999).
Kim Woo-Jung, the son of the eclogue governor of Daegu, founded the Daewoo Group in 1967. Benefitting from the pro-growth business incentives of the Park Chung Hee Korean government, the Daewoo Group grew to one of the largest business conglomerates, or chaebol, in South Korea. The Daewoo Group was an integral part of South Koreas stinting landscape of the 1970s and 1980s and, by the mid-1990s, their annual revenue was over $60 billion while employing to a greater extent than 200,000 multitude in South Korea and overseas (The Economist, 2000).
At the time of the Asiatic Financial Crisis of 1997-1998, the Daewoo Group accounted for nearly 15% of Koreas unrefined domestic product.
The Korean government under the Park Chung Hee memorial tablet supported the chaebol by offering them loans and awarding them non-competition contracts and special incentives because the chaebol were Koreas engines of commerce and employment. In Korean, chaebol means family but their business practices resembled more of what western business would call monopolies with government sponsored positive discrimination. The Korean government, however, demanded loyalty for their favoritism. One example of this incestual behavior occurred when the government tell Daewoo into shipbuilding. With no...If you want to get a full essay, order it on our website: Orderessay
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