Going Global & Managing Global Businesses Case Study

General Motors in Korea: A Success Story

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Abstract:
This case deals with how General Motors (GM) turned around the business of Daewoo, which had gone bankrupt. GM acquired Daewoo and completely transformed its business. General Motors used Daewoo's assets to boost its Asian presence and strengthen their global operation, which was done using tailor made strategies, made to suit the Asia-Pacific region. The case helps us to understand how the performance of a company can be enhanced through an acquisition. Whether the purpose for which the acquisition was made was fulfilled, is the question that this case aspires to answer.

Pedagogical Objectives:

• To analyse the factors that influenced GM's performance in the US, Asian and European markets
• To analyse the factors that led to the failure of Daewoo
• To nalyse the factors that made GM acquire Daewoo
• To discuss how the performance of a company can be enhanced through an acquisition.

Keywords : General Motors; Daewoo; Acquisition; Business turnaround; Business transformation; Asian automobile industry; General Motors performance; Leveraging on acquisition; Bankruptcy; Brand transformation; Turnaround strategy; Managing an acquisition; Daewoo's rise and fall