Examining the Business Failure of Daewoo
Running head: EXAMINING A BUSINESS FAILURE: DAEWOO
Examining a Business Failure: Daewoo
YOUR NAME
University of Phoenix
LDR/531
DATE
NAME OF PROFESSOR
EXAMINIG THE BUSINESS FAILURE: DAEWOO
Daewoo is South Korean based textile company founded by Kim Woo Choong. It was started as small entrepreneur and by the help of free market theory turned in to Giant Corporation, which extended its trade and product world wide. But the ladder of success, which was going up suddenly fell down, according to Ihlwan, when company suffered $32 billion loss, along with gigantic debt due to sleaze of employees and slackness. Ihlwan writes in business week that “Korea 's chaebol relied on accounting maneuvers to plump up profits, diminish liabilities, and generally make the business look good. But the scale at Daewoo was breathtaking” (p. 4). Means, apparently the dealings were looking fine but the hidden situation was the false making of profit by corruption and bribery. In order to understand the failure of Daewoo, scholars suggested different theories and behaviors, for example, number one is Organizational Behavior. According to Robbin and Judge, organizational behavior or attitude is, “A field of study that investigates the impact that individuals, groups, and structure has on behavior within organizations, for the purpose of applying such knowledge toward improving an organization’s effectiveness” (p. 9). This theory suggests that how individuals, groups, and structures work together and helps each other to improve the conditions and profits of an organization. It is further sub-divided in change process. By the help of this theory we may understand the failure of Daewoo in international market.
Change Process, which is subtype of organizational behavior, explains how the company copes up with changes. This change may come either with in the government or outside of government. For example, the theory of free market assist Daewoo to
Examining a Business Failure: Daewoo
YOUR NAME
University of Phoenix
LDR/531
DATE
NAME OF PROFESSOR
EXAMINIG THE BUSINESS FAILURE: DAEWOO
Daewoo is South Korean based textile company founded by Kim Woo Choong. It was started as small entrepreneur and by the help of free market theory turned in to Giant Corporation, which extended its trade and product world wide. But the ladder of success, which was going up suddenly fell down, according to Ihlwan, when company suffered $32 billion loss, along with gigantic debt due to sleaze of employees and slackness. Ihlwan writes in business week that “Korea 's chaebol relied on accounting maneuvers to plump up profits, diminish liabilities, and generally make the business look good. But the scale at Daewoo was breathtaking” (p. 4). Means, apparently the dealings were looking fine but the hidden situation was the false making of profit by corruption and bribery. In order to understand the failure of Daewoo, scholars suggested different theories and behaviors, for example, number one is Organizational Behavior. According to Robbin and Judge, organizational behavior or attitude is, “A field of study that investigates the impact that individuals, groups, and structure has on behavior within organizations, for the purpose of applying such knowledge toward improving an organization’s effectiveness” (p. 9). This theory suggests that how individuals, groups, and structures work together and helps each other to improve the conditions and profits of an organization. It is further sub-divided in change process. By the help of this theory we may understand the failure of Daewoo in international market.
Change Process, which is subtype of organizational behavior, explains how the company copes up with changes. This change may come either with in the government or outside of government. For example, the theory of free market assist Daewoo to
References: Breaking up Daewoo. (1999, August 19). The Economist, business section). Retrieved February 3, 2009, from www.economist.com.ezproxy.apollolibrary.com/business/displaystory.cfm?story_id=E1_NPPVGN#top Cho, M., & Patton, M. "Daewoo Adds Luster to the Pearl of Southeast Asia." Cornell Hotel & Restaurant Administration Quarterly 41.3 (June 2000): 32. General One File. Retrieved on February 3. 2009 from Gale. Apollo Library. . Ihlwan, M. (2001, February 19). Kim 's fall from Grace at Daewoo: Inside the Korean conglomerate 's fraud scandal. Business Week. Retrieved February 3, 2009, from www.businessweek.com/2001/01_08/b3720110.htm. Mintzberg, H., Lempel, J., Quinn, J. B., & Ghoshal, S. (2003). The strategy process: Concepts, contexts, cases (4th ed.). Upper Saddle River, NJ: Prentice Hall. Robbins, S. P., & Judge, T. A. (2007). Organizational behavior (12th ed.). Upper Saddle River, NJ: Pearson Education. Yukl, G. (2006). Leadership in organizations (6th ed.). Upper Saddle River, NJ: Pearson Education.