1. The Secrets of StrategicManagement: the Ansoffian Approach Used to dissect and give recommendations to the Hyundai Motor Corporation regarding the Electric/Hybrid SBA

2. Hyundai History and Background Part of the 4th largest Hyundais reputationconglomerate of autohas transitioned frommanufacturers cheap to affordable Began in Korealuxury First Hyundai sold in the Company goal is to raiseUS in 1986the quality and Currently exportperception to meet thatmanufacturing servicesofaround the worldVolkswagen, Mercedes,and BMW 3. What is Environmental Turbulence? Environmental Turbulence is a combinedmeasure of the discontinuity orchangeability, predictability, and frequency ofthe shifts of the firms environment. (Ansoff34). 4. Environmental Turbulence of the Auto Industry 5. Environmental Turbulenceof the Electric/Hybrid Industry 6. Strategic Aggressiveness Strategic Strategic AggressivenessAggressiveness is theis described by 2firms application ofcharacteristics:tools, techniques, and Discontinuityknow-how to position Timelinessitself in theenvironment, (Ansoff35). 7. Matching Strategic Aggressiveness toEnvironmental Turbulence Level 12 345 Environmental REPETITIVE EXPANDING CHANGING DISCNTUOUS SURPRISEFUL TurbulenceNo changeSlowFast Incremental DiscontinuousDiscontinuousIncremental Change Predictable Change UnpredictableChangeChange AGRESSIVNESSSTABLE REACTIVEANTICAPATORY ENTREPRENEUR CREATIVE DEGREE OF Zero Incremental IncrementalDiscontinuousDiscontinuous CHANGEFamiliar Novel DATA BASE Historical HistoricalExtrapolated Future Opportunities Creativity Precedents Experience 8. Level 4 Strategic Aggressiveness Can experience quick Repositions resourceschanges and poor as necessarypredictability In every industry the Constant environment firm will reassessanalysis factors to bring future Stays in an industry successeslocation as long as it When historical strategyremains attractive will not work - the firm Continuously seeks develops new strategiesother opportunities 9. Capability Responsiveness Capability or A manner in which aOrganizationalfirm handles changeResponsiveness is the Responsiveness typesfirms ability to respond vary as environmentaland it includes both thelevels and strategicmanagers capabilitiesaggressiveness levels doand those of theorganization (system) asa whole, (Ansoff 35). 10. Matching Responsiveness toEnvironmental TurbulenceLevel 12 345Environmental REPETITIVE EXPANDING CHANGING DISCONTINUOUSSURPRISEFULTurbulenceNo ChangeSLOWFast Incremental DiscontinuousDiscontinuous SlowChange Predictable Change Unpredictable Incremental Change ChangeResponsiveness of STABILITYEFFICIENCYMARKET DRIVENENVIORNMENTENVIORNMENTGeneral SEEKINGDRIVEN DRIVEN CREATINGManagementCapabilityChangeRejects Change Adapts to Seeks Familiar Seeks Related Change Seeks NovelManagement ChangeChangeChange 11. Manager Success ProfilesTURBULENCE 123 4 5 LEVELArchetypes CustodiansController PlannerEntrepreneur CreatorGoal Status QuoMinimal Cost Optimal Profit Optimum Profit Creation PotentialSuccess MindsetStability Least PriceResponse toStrategicCreativeCustomersPositioningInnovationLeadership Political Rational InspirationalCharismaticVisionaryProblem SolvingChange ControlDiagnostic Optimizing OpportunityOpportunity FindingCreatingTime Perspective PastPresentExtrapolated Predictable Future Possible FutureFutureAcceptance ofRejectTolerate Accept Seek PreferAmbiguityRisk PropensitySuppressControlFamiliar NewNovelKnowledge Base Internal Politics Internal Historical Markets Global Emerging OperationsEnvironmentPossibilities 12. Strategic Diagnosis: Strategic Capability Gaps Strategic Diagnosis: Strategy Capability Gaps P=Present F= FutureLevel11.522.533.54 4.5 5Turbulence P FStrategy P FCapability P F 13. Positioning Matrix 14. Possibilities for the Future Chinese production Potential Risks Joint venture with Beijing Nationalization of industryAutomotive Group Confiscation Currently sells about Currency inconvertibility800,00 units in China Political battles betweenlocal and centralyearlygovernment Cultural Differences Influential to cost Influential to business practices 15. Resistance to Change 2 types: Strategic Myopia Systemic resistance Phenomenon with Behavioral resistance managers See new ventures as unrealistic and impractical Managers learn by trail and error Easily can reject things they have little experience with 16. Situation Specific Resistance Systemic Resistance: Behavioral Resistance: Capacity Management not on Competence board Budget Political fears Management Cultural fears Skills/training 17. Change Management Strategy:Maintained Resistance Medium Urgency Timeframe is undefined Managers in place to alter timeline if needed A.K.A. The Accordion Method