Examining a Business Failure
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Examining a Business Failure
Oluwaseun Afolayan
University of Phoenix
LDR/531 Organizational Leadership
Group No ONO9MBA07
Kathleen Kemmer
January 25, 2010.
The Business Failure Daewoo Group
The Daewoo group was founded by Kim Woo Choong in March 1967. Daewoo means “Great Universe.” The company came up as a result of South Korea’s rapid transformation from its hostile invasions and lacking essentials resources to an economic miracle after the World War II. The company started with an initial capital of $18,000 and then became South Korea’s fourth largest business organization with operations in trading, or chaebol with operations in trading, motor vehicles, shipbuilding, heavy industry, aerospace, consumer electronics, telecommunications and financial services. The company comprised of 25 subsidiaries linked together in a complicated system of cross holdings. The major company in the group was Daewoo cooperation.
Daewoo cooperation became licensed as a general trading company (GTC) by the Korean Government in 1975. Daewoo had a network of over 100 branches worldwide, with some 3,500 different products traded in over 130 countries, in exchange for promoting Korean goods abroad. The company was able to finance its expansion through preferential loan agreements, reduced foreign exchange requirements, and improved government advice on exporting and marketing abroad. However, Kim woo Choong’s global ambitions overextended the company’s resources, sinking the company in so much debt by the late 1990’s Kim was indicted on charges of cooperate misconduct. The South Korean government issued an order to dismantle the company chaebol in 1999, and the majority of the Daewoo group’s holdings were sold to other co operations.
Organizational Behavior is the sturdy that finds out the impact that individuals, group, and structure have on behavior within organizations, in other to apply such knowledge toward improving organizations effectiveness....
Oluwaseun Afolayan
University of Phoenix
LDR/531 Organizational Leadership
Group No ONO9MBA07
Kathleen Kemmer
January 25, 2010.
The Business Failure Daewoo Group
The Daewoo group was founded by Kim Woo Choong in March 1967. Daewoo means “Great Universe.” The company came up as a result of South Korea’s rapid transformation from its hostile invasions and lacking essentials resources to an economic miracle after the World War II. The company started with an initial capital of $18,000 and then became South Korea’s fourth largest business organization with operations in trading, or chaebol with operations in trading, motor vehicles, shipbuilding, heavy industry, aerospace, consumer electronics, telecommunications and financial services. The company comprised of 25 subsidiaries linked together in a complicated system of cross holdings. The major company in the group was Daewoo cooperation.
Daewoo cooperation became licensed as a general trading company (GTC) by the Korean Government in 1975. Daewoo had a network of over 100 branches worldwide, with some 3,500 different products traded in over 130 countries, in exchange for promoting Korean goods abroad. The company was able to finance its expansion through preferential loan agreements, reduced foreign exchange requirements, and improved government advice on exporting and marketing abroad. However, Kim woo Choong’s global ambitions overextended the company’s resources, sinking the company in so much debt by the late 1990’s Kim was indicted on charges of cooperate misconduct. The South Korean government issued an order to dismantle the company chaebol in 1999, and the majority of the Daewoo group’s holdings were sold to other co operations.
Organizational Behavior is the sturdy that finds out the impact that individuals, group, and structure have on behavior within organizations, in other to apply such knowledge toward improving organizations effectiveness....