Daewoo Group and Financial Business Essay -- GCSE Business Marketing C

Daewoo Group and Financial BusinessProblem DefinitionDaewoo multitude started as a small textile company and in plainly 20 yearsdeveloped into second largest Korean chaebol ( family ownedconglomerate). It had everyplace 250000 employers worldwide, over 30domestic companies and 300 overseas subsidiaries, generating sales of more than 100 billion dollars annually. However, in 1999 it seemed thatthe golden days of Daewoo were over as it was governing bodyd with over 50billion dollars dept and had to decide to sell most of its business to carryon. Can Daewoo really survive and if yes, how? The roots of Daewoos crisis argon in a) Korean economical Systems Structure, Chaebols and Asian Crisis b) Daewoo corporate structure, Kim Woo-Choong and his policiesThe main problem is that Korean economic system is diligent for changeand already changing, so does the governance and its policies. However,the chaebols such as Daewoo are living in the past and find it difficult toadapt to changes. The motility is whether there is any place in a changingKorea for chaebols at all or they will be soon replaced by littler but moreefficient companies? Problem JustificationKorean Economic System, Chaebols and Asian crisisSouth Koreas mad rush economic growing was initiated by late dictator common Chung-hee in the early 1970. Park saw export growth as the key foreconomic growth. He provided cheap loans and tax benefits to nurtureDaewoo and different Korean business into conglomerates that muddleproduced for export markets( http//detnews.com/2001/ autos). Most ofChaebols were family owned and all of this families were connected to thegovernment which would demote them lots of support and get their loyalty.As a trouble would come along ,as in example of Daewoo problem in the1980s when Daewoo shipbuilding do losses that threaten the collapseof the whole convention, the government stepped in to provided conglomerate andto provide emergency loans, chaebols could always count on thegovernment to help. So they would continue to borrow money fromgovernment owned vernaculars. The bank were forced to continue borrowingmoney to Korean Losers and never got paying back. It continued ... ...he best solution would be the government to come up with the plan ofrestructuring Daewoo ( force it to sell bump off most of its businesses andconcentrate on the key once) and for Daewoo to accept the plan as soon aspossible. similarly government should push on the chaebols to restructure (mainly to cut off their size and concentrate on the most importantbusinesses) because there is no place for old-style conglomerates inchanging Korea, if they stay the same they will face the same problem asDaewoo did and will also badly travel future economic development ofKorea. Korean government did come up with the plan of restructuring Daewoo incutting down its size by interchange off its businesses, as an example sellingDaewoo Motors to General Motors and etc., giving independence to someof its big divisions such as shipbuilding. But this plan came besides late andDaewoo did not implement it until it really got bankrupt. There is notDaewoo group any more. Most of it was sold and what is left is nowcalled Daewoo International and has its main businesses in InternationalTrade, Information, Project Organising, Research Development and someother ( www.daewoo international.com).