Case Notes/Answers
The Acquisition and Restructuring of Kia Motors by
Hyundai, by Seungwha (Andy) Chung, Sunju Park
Discussion Questions:
1. Did Hyundai make a strategically correct choice when it acquired Kia?
2. What administrative tasks did Hyundai need to complete after acquiring Kia?
3. Analyze the restructuring in the two years after the acquisition with regard to synergy effects.
4. How did Kia, which had gone bankrupt, revitalize the organization in such a short period of time?
, Teaching Note
THE ACQUISITION AND RESTRUCTURING OF KIA MOTORS BY
HYUNDAI MOTORS
SYNOPSIS
In recent years, greater competition and diminished profits due to domestic and global oversupplies as well
as higher development costs have led the automobile industry to engage in domestic and international
mergers and strategic collaboration. This case study examines one of the largest mergers and acquisitions
(M&As) in the Korean automobile market in recent years: the acquisition of Kia Motors (Kia) by Hyundai
Motors (Hyundai). The case describes the background conditions of the acquisition, the integration
processes after the acquisition and the requisites for Kia Motors to normalize management within a short
time.
Hyundai, in acquiring Kia, enhanced its competitive power in both domestic and global markets, achieving
economies of scale and scope and strengthening its global market basis. That said, Hyundai/Kia faced
several pressing challenges, among them the cooperation of Renault and Samsung Motors, the unclear
domestic treatment of Daewoo Motors and M&As taking place among top motor companies worldwide.
This case study asks students to analyze the process of post-acquisition restructuring and the resulting
synergy effects, inviting them to think through the strategies by which Hyundai/Kia may thrive on the
global automobile market. Further, it illustrates both the current state of the domestic Korean automobile
industry and recent trends in the global automobile market.
ASSIGNMENT QUESTIONS
The following questions can be posed to students as class preparation. Teams of students can be asked to
make a presentation on a given question. The requisite content for each question may be found in the case
analysis that follows.
The Acquisition and Restructuring of Kia Motors by
Hyundai, by Seungwha (Andy) Chung, Sunju Park
Discussion Questions:
1. Did Hyundai make a strategically correct choice when it acquired Kia?
2. What administrative tasks did Hyundai need to complete after acquiring Kia?
3. Analyze the restructuring in the two years after the acquisition with regard to synergy effects.
4. How did Kia, which had gone bankrupt, revitalize the organization in such a short period of time?
, Teaching Note
THE ACQUISITION AND RESTRUCTURING OF KIA MOTORS BY
HYUNDAI MOTORS
SYNOPSIS
In recent years, greater competition and diminished profits due to domestic and global oversupplies as well
as higher development costs have led the automobile industry to engage in domestic and international
mergers and strategic collaboration. This case study examines one of the largest mergers and acquisitions
(M&As) in the Korean automobile market in recent years: the acquisition of Kia Motors (Kia) by Hyundai
Motors (Hyundai). The case describes the background conditions of the acquisition, the integration
processes after the acquisition and the requisites for Kia Motors to normalize management within a short
time.
Hyundai, in acquiring Kia, enhanced its competitive power in both domestic and global markets, achieving
economies of scale and scope and strengthening its global market basis. That said, Hyundai/Kia faced
several pressing challenges, among them the cooperation of Renault and Samsung Motors, the unclear
domestic treatment of Daewoo Motors and M&As taking place among top motor companies worldwide.
This case study asks students to analyze the process of post-acquisition restructuring and the resulting
synergy effects, inviting them to think through the strategies by which Hyundai/Kia may thrive on the
global automobile market. Further, it illustrates both the current state of the domestic Korean automobile
industry and recent trends in the global automobile market.
ASSIGNMENT QUESTIONS
The following questions can be posed to students as class preparation. Teams of students can be asked to
make a presentation on a given question. The requisite content for each question may be found in the case
analysis that follows.
