Toyota and Daewoo

Running Head : Toyota and Daewoo

Toyota and Daewoo

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Abstract

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

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...