Essay Title: 

Toyota and Daewoo

March 24, 2016 | Author: | Posted in finance, mathematics and economics

Running Head : Toyota and Daewoo

Toyota and Daewoo

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This describes the methods used by the Toyota and Daewoo car industry during the Asian crisis of the year 1997 . Toyota and Daewoo are the names of two renowned major firms in the car industry . They have accomplished years of successful business , which was interrupted by the Asian crisis . This also highlights the strategies used by Toyota after the Asian crisis to meet up its target sales and it also highlights the [banner_entry_middle]

issue of bankruptcy of Daewoo

The main causes of the Asian Crisis

The Asian crisis of the year 1997 is seen as a crisis that is explained as being macro and financial and which comprised of economic sectors such as banks , non-banks and borrowers . This viewpoint implies that the reason behind this financial crisis was the structural weaknesses of the developing economies in East Asia . Furthermore there are a number of structural weaknesses that caused the crisis which are

-The inaccurate and insufficient regulation of banks and their banking systems

-A Pre-modern corporate sector : non-transparency , family dominance non-separation of ownership and management , archaic accounting , etc

-The pernicious affiliations of the government and big business such as Korean chaebol corporate groups in Indonesia , Thailand , etc

-The hurdles , which affected business operations of productivity and competitiveness such as the low rate in technical advancement , lack of skilled experts and managers , lack of supporting (parts ) industries

-The complete dependence on export sector especially on US markets and IT products

-The prevailing of injustice and political favoritism (J Orlin Grabbe 1997

Toyota and Daewoo Car Industry and the Asian Crisis

The Asian crisis impacted the economy of a number of organizations and companies of the world of different natures of businesses . The car industries of Toyota and Daewoo were also adversely affected by the Asian Crisis and formulated strategies to deal with it

Daewoo is a company that deals with a wide range of products such as electronics , telecom , construction , heavy industries and motors . In 1995 Daewoo Motors was established in UK . The launch of Daewoo motors was held in UK and it began with the slogan of the ‘Biggest Car Company You ‘ve never Heard Of . The major tool Daewoo used to attract potential customers was to break all the rules and innovate a new way instead of a traditional kind of build up with a dealer network , it managed its own direct selling operation , which used `Halfords ‘ as its nation-wide service network (Wikipedia 2006-Daewoo

Daewoo held a distinction at that time in terms of being the solitary manufacturer which did not operate by the method of traditional dealerships . The method it used for running its successful business operations was that it possessed and ran its own retail network . It was the peak time of its popularity and it had grabbed a large market share It was the golden business period for Daewoo motors as it was renowned as to stand close… [banner_entry_footer]

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