Case Study on Daewoo

Daewoo Case Study:

Daewoo is one of the largest conglomerates of South Korea. The company was founded in 1967 and was called Daewoo Industrial. In 1999 Daewoo was liquidated but the separate branches and departments continued working becoming the part of the American company General Motors.

Daewoo Company had a great number of branches which produced goods of all types. Primarily Daewoo focused on the production of electronics, electric appliances and automobiles. These branches were the most profitable activities of the company but still the company stopped existing.

Daewoo group consisted of 20 departments which produced their own goods and provided various services. Alongside with electronics and automobile production Daewoo was involved into heavy industry, shipbuilding, construction (building all over the world), securities, telecommunications, textile and hotel business.

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In 1998 Daewoo faced the problem of severe crisis because of the Asian financial crisis and tense relations with the Korean government. The conglomerate was deprived of the right to take credits, which supported it earlier. While other conglomerates that faced the crisis (Samsung, LG) optimised their actives and reduced the number of the departments, Daewoo decided to add 14 extra departments broadening the conglomerate and very soon its debt increased in 40% and the conglomerate bankrupted. After the bankrupting, Daewoo was reorganized into the three optimized branches: Daewoo International Corporation (trade and investing); Daewoo Engineering and Construction (building, energetic and oil and gas industry); Daewoo Shipbuilding and Marine Engineering (shipbuilding). Only Daewoo Electronics remained working after the bankrupting as a part of the old Daewoo conglomerate.

Now Daewoo is a part of other corporations and conglomerates but still there are departments which produce goods under the name of ‘Daewoo’, so it is interesting for students to learn about the so influential and prosperous former conglomerate and analyse the reasons of its bankrupting.

Daewoo case study is a research paper on the narrow topic which is aimed to present the successful conglomerate in the past and illustrate the cause and effect of its bankrupting. The student should collect information about the conglomerate, analyse the problematic and successful departments and observe how the executives solved the problems.

Only with the help of the reliable data one can make the appropriate conclusions and evaluate the problem on Daewoo professionally.

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