Sustainable Business Practices and Strategies KIA Motor

Question: Discuss about theSustainable Business Practices and Strategies for KIA Motor. Answer: KIA Motor Corporation has its headquarters in Seoul, which is the second largest manufacturer of automobiles in South Korea. The sales of the company have been estimated to be 3.3 million in the year 2015 and Hyundai is one of the major shareholders who has a total share of 34 percent in the company. The stakeholders of the company are a group of people who creates an impact on the sale of the products in a direct or in an indirect manner (Gupta Sharma, 2014). The stakeholders help in putting pressure on the company so that they can perform in a better manner and increase the output of the company. The decisions that are taken up by the stakeholders helps in influencing the decision of the company as well, as they act in the best interest of the company. The stakeholder of Kia motors is the investors, employees, suppliers and the customers (Chen, Feldmann Tang, 2015). One of the primary stakeholders of the company is the investors who look after the rate of profit of the organization. The investors are the primary stakeholders of the company, as it helps them in transforming the share of dividends that are earned on the shares and keep the operation cost of the company at a minimum level. This allows Kia Motors to maintain a higher rate of profit level and minimize the operating cost as well (Zorkociova, Simorova Sasikova, 2014). The employees of Kia motors are provided with equal opportunities so that they can work in an effective manner. Most of the employees are recruited without being discriminated on their nationality, gender, religion and race. They are taken in to the process of decision making by the company so that the management can make better decisions by consulting with the employees. This helps the employees to get motivated, which helps them in giving better levels of productivity (Dehning et al., 2017). The organization also provides its employees with job security so that the employees can work in an efficient manner. This helps the organization in increasing its level of productivity as well. One of the major concerns of the company is that they provide low wages to the employees, which may affect them psychologically. The employees may feel de-motivated within the organization, as they are not rewarded in a proper manner for the services that they are providing within the organization. This is one of the major issues that is present within the organization that needs to be solved in a proper manner so that the employees can remain motivated (Barron, Pereda Stacey, 2017). The suppliers of the company are those who will provide the raw materials so that it can be processed and supplied in the market for the customers to purchase it. The suppliers try to control the prices of the raw materials, which may affect the operating cost of the Kia motors, as the high prices may lead them to increase the prices when the product is available in the market. The increase in the prices of the products will help the suppliers in getting a better rate of return as well (Soo, 2014). The customers are important stakeholders for the company, as it helps them in selling the products in the market. The feedbacks of the customers will be considered by the company while making any changes so that the level of comfort can be increased in the new products (Rhee, Bohnsack Lee, 2017). One of the major competitors of Kia motors is Toyota, as they also provide new and better products automobiles in the market at a competitive price. This has helped Toyota in attracting a large number of customers towards them. Toyota is able to provide the products at a cheaper rate because they maintain a good relationship with the suppliers, as the raw materials are purchased by them at a cheaper cost. The company also takes in to consideration that the employees are remunerated in a proper manner so that they can be an integral part of the organization (Soo, 2014). The employees of Toyota are provided with a fair amount of wages and salaries so that they can be motivated within the organization. Additionally, the employees are also made part of the decision-making process so that their importance can be taken in to consideration by the company. This is due to the fact that the employees communicate with the customers at a regular interval. Toyota also provides the customers to be come premium customers so that they can avail the extra facilities that are present within the organization such as free maintenance of the vehicle after a period of time. This allows the company to attract a majority of customers towards them (Dehning et al., 2017). The annual report for the company for 2017 shows that the profit has come to 27, 54,640, that shows that the company is in a good position in its financial affairs. This salary of the employees has been given at an amount of 278,251. The company has also spent on the innovation part for their automobiles so that it can provide them a competitive advantage in the market (Rakita, Madic Markovic, 2017). The Research and Development team of the company is very active, as the manufacturing of the hybrid cars has helped Kia motors in gaining a competitive edge over the rivals that are present in the market. The company has sold around 62,510 cars in Korea and in the United States the sales volume for the company amounted to 112,490 units. In China, the volume of sales for the company was 193,410 units where as in Europe; the volume has been 219,000 units. 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