INTERNATIONAL CASE

Topics: Automotive industry, GM Daewoo, General Motors Pages: 3 (1141 words) Published: May 17, 2014
Q 1. What are the advantages and disadvantages of a hands-off, decentralized management approach ? Advantages of Decentralization
Decentralization will not work unless you really delegate both responsibility and authority. This means that the final decisions must be made at that lower level. You just can’t beat a decentralized system. It gets decisions closest to the level where the action really is. And it really does something for people. The executives are now essentially running business of their own. The companyhas confirmed their authority by making it very clear it will not let people dissatisfied with their decisions ‘jump’ over to the home office. Finally, getting the decision-making out of the home office creates something like a family feeling in the outlying location. People there begin to depend on each other.

Disadvantages of Decentralization
This means that the final decisions must be made at that lower level. Two things stand in the way of this working. One isthat the people who now have the authority may not let go of it. The other is that the people at lower levels may not want to accept it. One of the problems, which decentralization aims to solve, is that the chief executive never has enough time to think about the major problems affecting the future of the operation.

Q2. How Can Daewoo Stay Competitive with the Japanese ?

Auto industry is important to developing countries is this intensive linkage. Most of developing countries selected auto industry as one of the prime elements for launching industrialization in the country. An independent auto maker and to be global top ten as in Daewoo's long range plan, with 3.5 million production indomestic (3.0 million) as well as in overseas plants (2.5 million) could not achieved without the success of globalization.The leadership in domestic market might be another important factor. Korean auto makers including Daewoo has tomeet the challenges...
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