"Develop New Niche Businesses for Breakthrough in Share Price"
Mark Juhn, who is best known for his success of opening up the US market with
his idea of ‘100,000 mile warranty for 10 years‘ while he was serving in Hyundai
Motors Company, has rolled up his sleeves now to make a breakthrough
in the share prices of Hyundai Corp. His growth strategy is summed up as
continued investment in energy sector and diversification of revenue sources
though developing new niche businesses.
His strategies start to bear fruit these days. The company’s share prices, which
were hovering below KRW 2,000 when he took office in April last year, even rose over
KRW 8,000 during March, barely a year after. As of 16th of May, the prices stood at
KRW 7,200. CEO Juhn has always been behind such positive growth with his efforts
to tap into new businesses from home electronics assembly, to shipbuilding and
to steel distribution, not alone to expand the company’s existing energy business.
And also he has pushed to start dining and fashion businesses in respect of
business portfolio diversification.
"The change of business environment has left us no option but to expand our
businesses. We simply cannot stay viable only with a general trading agency
service, " and "in order to survive, now it is required to understand the global
market trends and be the first to provide products and services to meet the
needs of the markets”, stressed CEO Juhn.
Among his successful moves to execute his niche market development strategy,
are to acquire a small and medium sized shipyard of China that produces vessels
between 10,000ton and 20,000ton ships, in November last year and to assemble
and sell the high tech digital home appliances such as PDP and LCD-TV.
Also, his idea of entering into distribution business of construction-use sheet files
is being highly appreciated in the market, which was, in fact, for the first time
among the general trading companies.
Due to the elimination of unprofitable business sectors, the company’s sales
in the 1st quarter have been declined to KRW 334.5 billion from the same period
of the previous year. However, the company recorded operating income of
KRW 4.8 billion in the first quarter this year, a decent 54.8% growth from the same
period last year, and its ordinary income and net income rose 19.6% to KRW 5.5 billion.
Most of all, the portion of its operating income in its ordinary income is distinctively
highest among its competitors, raising its future prospect of staying in black.
CEO Juhn has mapped out the corporate mid/long-term strategy to help the company
emerge as a ‘superbly sound’ corporation, achieving operating income of
KRW 26.1 billion through sales growth of KRW 1,591,3 billion this year and targeting
sales of KRW 4 trillion and operating income of KRW 100 billion by 2008.
To that end, he plans to gear his efforts to earlier operation of the shipyard in China
that the company has acquired last year, expansion of steel distribution business,
and new acquisition of home electronics assembly lines overseas. Participation in
new energy development projects will be aggressively pushed while the segment is
expected to generate KRW 25 billion this year, a hansom profit, following
KRW 24.5 billion last year.
Reportedly, CEO Juhn has recently got back from his visit to a powerplant in
Southeast Asia where he had talks for new orders.
As for liquidation plan of creditor banks and burden of high volume convertible bonds,
“I am not in the position to make any comments on the liquidation issue which is
creditor banks’ business to take care of and as for CB, I hope things will work out
best both for the company and the shareholders ", he said.
"Our creditor banks have willingness to support us starting up profitable businesses
although it is true that for a company under the corporate workout program, it has
many difficulties in starting new businesses. From this perspective, I expect we both
parties to maintain cooperative relationship going forward, in such matters as
advancing into new businesses", he added.
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전 회장님,
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김한수 배상
잘 한번 해볼려고 합니다. 종종 좋은 말 부탁합니다.
사장님,
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위에서 말씀하신 '집단 이기주의' 읽으면서 저부터도 뜨끔했었는데..회사에서는 워킹그룹이라는 그 작은 조직안에서부터 벌써 그런 집단 이기주의가 발생하니 이게 더 큰 조직으로 계속해서 나가다보면 결국 국가 전체적인 중병이 되는...
좋은 글 많이 써주세요. 열심히 읽고 많이 생각하게요~
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