SUMMER TRAINING REPORT

A Study on the marketing overview

Undertaken at Hyundai Motor India Limited

Submitted in partial fulfillment of the requirements

for the award of the degree of

BACHELOR OF BUSINESS
ADMINISTRATION
to

Guru Gobind Singh Indraprastha

University, Delhi

Under the Guidance of:

Prof. G.B SITARAM

Submitted by:
NITISH SACHDEVA
BBA V Sem. (E)
Enrollment No. 0692131708

Session 2008 - 11

TECNIA INSTITUTE OF ADVANCED

STUDIES
Approved by AICTE, Ministry of HRD, Govt. of India Affiliated To Guru Gobind Singh
Indraprastha University, Delhi

INSTITUTIONAL AREA, MADHUBAN CHOWK, ROHINI, DELHI110085

E-Mail: director.tecniaindia@ gmail.com, Website: www.tecnia.in
Fax No: 27555120, Tel: 27555121-24
INSTITUTE IS RATED AS A CATEGORY BEST BUSINESS SCHOOL BY LATEST AIMA - BUSINESS
STANDARD & BUSINESS INDIA PUBLICATIONS SURVEYS & INCLUDED IN TOP 100 B
SCHOOLS & IT -SCHOOLS BY DALAL STREET INVESTMENT JOURNAL

CONTENTS

S NO
1
2
3
4
5

TOPIC
CERTIFICATE (S)
ACKNOWLEDGEMENTS
LIST OF SYMBOLS
LIST OF ABBREVIATIONS
CHAPTER-1: PROFILE OF THE FIRM/COMPANY
GENERAL INFORMATION
NATURE OF THE ORGANIZATION
VISION AND MISSION
PRODUCT RANGE
SIZE IN TERMS OF MANPOWER AND TURNOVER
ORGANIZATION STRUCTURE
MARKET SHARE AND POSITION
PRESENT LEADERSHIP
SOURCES OF DATA COLLECTION
CHAPTER-2: SWOT ANALYSIS OF THE COMPANY
STRENGTHS AND WEAKNESSES
OPPORTUNITIES AND THREATS
LOGISTICS
CORPORATE GOVERNANCE
CHAPTER-3: ANALYSIS OF FINANCIAL REPORTS OF THE COMPANY
ANALYSIS OF BALANCE SHEET
ANALYSIS OF CASH FLOW STATEMENT
ANALYSIS OF INCOME STATEMENT
CHAPTER-4: LESSONS LEARNT
WORKING EXPERIENCE
PRACTICAL KNOWLEDGE GAINED
RECOMMENDATIONS/SUGGESTIONS TO OTHER STUDENTS FOR
TRAINING
REFERENCES/BIBLIOGRAPHY

PAGE NO
3
4
5
6
14-33

34-37

38-46

47-52

53

Tecnia Institute of Advanced Studies

New Delhi 110085
Batch (2008-2011)

Certificate

I, MR NITISH SACHDEVA, Roll No. 0692131708 certify that the Summer Training
Report (Paper Code BBA 311) entitled MARKETING MGT-AN OVERVIEW is
done by me and it is an authentic work carried out by me at HYUNDAI MOTOR
INDIA LIMITED . The matter embodied in this has not been submitted earlier for
the award of any degree or diploma to the best of my knowledge and belief.

Signature
Student
Date:

of

the

Certified that the Summer Training Report (Paper Code BBA 311) entitled MARKETING
MGT-AN OVERVIEW done by MR. NITISH SACHDEVA, Roll No 0692131708., is completed
under my guidance.

Signature

of

the

Guide
Date:
Name of the Guide:
Designation:
Countersigned
Director
ACKNOWLEDGEMENT
This report has been made possible through direct & indirect support of various
people
for whom I wish to express my appreciation & gratitude.
Mapping in this would can be achieved without proper coordination .Every work of
marketing, finance, production or successful launching of a product, is the result of
team
work. This project of mine wouldnt have seen the light of the day without the
coordination of PROF Mr. SITARAM ,my project guide .I would like to express my
special

thanks & gratitude to him for constantly guiding me and tackling a variety of hurdles
with implicit patience throughout my research project and whose deep involvement
and
interest ,infused in me great inspiration and confidence in taking up this study in the
right
direction .without his overall guidance and help ,the project may not have been
completed .

NITISH SACHDEVA
0692131708

LIST OF SYMBOLS

S.No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15

Symbol
,
;
:
%
.
$
*
#
/
@
(
)
{
}

Nomenclature & Meaning

Hyphen
Comma
Semi-Colon
Colon
Percentage
Full-Stop
Dollar
Asterisk
Number Sign
Solidus
Commercial at/At the Rate
Left Parenthesis
Right Parenthesis
Left Curly Brackets
Right Curly Brackelts

16
17

Apostrophe
Low line/Underscore

LIST OF ABBREVIATIONS

ABBREVIATED

NO

NAME

1
2
3
4
5
6
7

KM
Rs
GOI
MGT
O and M
US
UD

FULL NAME
Kilo Meters
Rupees
Government of India
MGT
Operation and Maintenance
United States
Urban Development

8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26

MOUD
Tp
Elect.
HR
GM
CE
Asst.
HOD
AGM
JGM
DGM
POH
ED
R and S
F
O
SGA
MD
Secy.

Ministry Of Urban Development

TP
Electrical
Human Resource
General Manager
Chief Engineer
Assistant
Head Of the Department
Additional General Manager
Junior General Manager
Deputy General Manager
Process On Help
Executive Director
Finance
Operation
Senior General Manager
Managing Director
Secretary

HYUNDAI MOTOR INDIA LIMITED (HMIL)

Chairman & CEO

M. K. Chung

Date of Establishment
December 29, 1967

Company Motto
Diligence, Frugality, Love

MGT Policy
Trust-based MGT, Site-intensive
MGT, Transparent MGT

Company Vision for the 21st century

World-Class Automobile Company, Company
Providing Hope of Life to Hyundai Workers, Company
Winning Reliability in the World Market

EXECUTIVE BIOS

Mr.JAE IL KIM graduated from the Sung Kyun Kwan University in Korea with a
specialisation in English Literature and started his career with the Hyundai group,
joining Hyundai Precision in 1977 and worked his way upwards, handling various
responsibilities in diverse capacities within the group over the past 25 years.

A specialist in Overseas Sales and Marketing, Mr.Kim has spent over 20 years of his
career in Hyundai's global operations. Prior to assuming his current role as Managing
Director of Hyundai Motor India in April 2007, he was the head of Kia Motors Asia /
Pacific and later of Kia's Western / Eastern Europe operations, where he was
responsible for helping the company make a turnaround, both in terms of marketshare
and financials in these markets.
A keenly systems focused person, Mr.Kim brings to Hyundai Motor India his strong
quality and process MGT skills that will help the Indian subsidiary emerge as a global
export hub.

Mr. B.V.R Subbu is a Masters in Economics from the 'Centre for Economic Studies
and Planning' (CESP), Jawahar Lal Nehru University. He joined the Tata
Administrative Services in 1977 and after a brief stint with TAS, moved to Telco
where he was involved in both line & staff functions in various areas of Marketing &
Sales including Spare Parts, Service and Hire-Purchase.
At Telco, Mr. Subbu has been instrumental in building the companys market share in
the Light Commercial Vehicles and Multi Utility Vehicles segment. He also helped
build the concept of TP logistics in the country and structured a well defined two-tier
service network at Telco.
Mr. Subbu left Telco in 1996 to Join Hyundai Motor India Ltd. as Director Marketing & Sales and was elevated as President of HMIL in April 2006.
Mr. Subbu is credited with building the Hyundai brand in India and played a pivotal
role in setting up the company's product sales and customer service network from
scratch to its current position of India's second largest.

INTRODUCTION
INDUSTRY PROFILE

The birth of the car as we know it today occurred over a period of years. It was only
in 1885 that the first real car rolled down on to the streets. The earlier attempts,
though successful, were steam powered road-vehicles.

The first self-propelled car was built by Nicolas Cugnot in 1769 which could attain
speeds of upto 6 kms/hour. In 1771 he again designed another steam-driven engine
which ran so fast that it rammed into a wall, recording the worlds first accident. In
1807 Franois Isaac de Rivaz designed the first internal combustion engine. This was
subsequently used by him to develop the worlds first vehicle to run on such an
engine, one that used a mixture of hydrogen and oxygen to generate energy.
This spawned the birth of a number of designs based on the internal combustion
engine in the early nineteenth century with little or no degree of commercial success.
In 1860 thereafter, Jean Joseph Etienne Lenoir built the first successful two-stroke gas
driven engine. In 1862 he again built an experimental vehicle driven by his gasengine, which ran at a speed of 3 kms/hour. These cars became popular and by 1865
could be frequently espied on the roads.

10

The next major leap forward occurred in 1885 when the four stroke engine was
devised. Gottileb Damlier and Nicolas Otto worked together on the mission till they
fell apart. Daimler created his own engines which he used both for cars and for the
first four wheel horseless carriage. In the meanwhile, unknown to them, Karl Benz,
was in the process of creating his own advanced tri-cycle which proved to be the first
true car. This car first saw the light of the day in 1886.
The season of experiments continued across the seas in the United States where Henry
ford began work on a horseless carriage in 1890. He went several steps forward and in
1896, completed his first car, the quadricycle in 1896. This was an automobile
powered by a two cylinder gasoline engine. The ford motor company was launched in
1903 and in 1908 he catapulted his vehicle, model t ford to the pinnacle of fame.
Continuing with his innovations, he produced this model on a moving assembly line,
thus introducing the modern mass production techniques of the automobile industry.
The modern car, therefore comes from a long list of venerated ancestors, and its
lineage will, hopefully grow longer as we progress!

11

with the invention of the wheel in 4000 B.C., mans journey on the road of
mechanized transport had begun. Since then he continually sought to devise an
automated, labour saving machine to replace the horse. Innumerable attempts reached
conclusion in the early 1760s with the building of the first steam driven tractor by a
French captain, Nicolas Jacob Cugnot. It was however left to Karl Benz and Gottlieb
Damlier to produce the first vehicles powered by the internal combustion engine in
1885. It was then that the petrol engine was introduced, which made the car a
practical and safe proposition. The cars in this period were more like the cars on our
roads today.
With cars came the era of speed, The first ever land-speed record was established
about a 100 years back, in 1898. Count Gaston de Chasseloup-Laubat of France drove
an electric car (in Acheres near Paris) at a speed of 39.24 miles per hour. This flagged
off the era of wheels racing, which lasted till 1964, after which jet and rocket
-propelled vehicles were allowed. Then onwards, it has been one big journey...on the
roads.

12

MAJOR MANUFACTURERS ARE:

1. Maruti Udyog Ltd.
2. Hindustan Motors Ltd.
3. Daewoo Motors (India) Ltd.
4. Premier Automobile Ltd.
5. PAL Peugeot Ltd.
6. General Motors (India) Ltd.
7. Tata Group
8. Mahindra & Mahindra Ltd.
9. Mercedez Benz (India) Ltd.
10. 10.Ford India Ltd
11. 11.Huyndai India Ltd.
12. 12. Honda SIEL India Ltd.
13. 13.Toyota India Ltd.
14. 14. Skoda India Ltd.

13

CHAPTER-1:
PROFILE OF THE COMPANY

1.1COMPANY PROFILE
1.1.1 The beginning of Hyundai Motor Company dates to April 1946 when founder,
Ju-Yung Chung established Hyundai Auto Service in Seoul, South Korea at the age of
31 years. The name Hyundai was chosen for its meaning which in English translates
to modern. The Hyundai logo is symbolic of the company's desire to expand. The
oval shape represents the company's global expansion and the stylized "H" is
symbolic of two people (the company and customer) shaking hands.
1.1.2 Hyundai Motor Company was founded by Ju-Yung Chung and younger
brother Se-Yung Chung in December 1967. In 1968 the company entered into a
contract with Ford motor company to assemble the Ford Cortina and Granada for the
South Korean market and continued to produce them until 1976. Hyundai completed
construction of the Ulsan plant in six months and achieved the shortest
groundbreaking to first commercial production of any of Fords 118 plants. The eight
year journey provided Hyundai with assembly knowledge, blueprints, technical
specifications, production manuals, and trained Hyundai engineers.
1.1.3 Hyundai Motor Company is a Korea-based automobile manufacturer. The
Company produces and markets passenger cars under the brand names of Equus,
Genesis, Genesis Coupe, Azera, Sonata, Elantra, Accent, Getz, i30, i30cw, i20
and i10; recreational vehicles under the brand names of Veracruz, Santa Fe,
Tucson, Matrix and H-1, and commercial vehicles, which include medium and
heavy duty trucks, and buses. The Company also provides automobile
maintenance services

14

1.1.4 HYUNDAI MOTOR INDIA LIMITED (HMIL)

Established : 1996
Collaborators : Hyundai Corporation, South Korea
Product range : Hyundai Santro, Accent, Sonata, Terracan.
Unlike most other MNCs, Hyundai of South Korea decided to enter India with its
small car model, Santro, which it priced attractively at about $7000. Hyundai chose
to set up a fully owned subsidiary and hired some of the most reputed executives in
the Indian automotive industry. Hyundai also invested heavily in a modern car plant
near the city of Madras, in the southern part of India. The facility can manufacture
130,000 engines, transmission sets and components per annum. According to
Business India1, What makes HMIs (Hyundai Motor India) progress even more
impressive is that the Sriperambadur plant is not another knocked down (KD)
operation but an integrated manufacturing facility. The Santros that will roll out of
this plant will be manufactured from day one and not merely assembled. This is a
historic achievement. No company has begun operations in this manner, not even
Maruti Udyog, which initially imported CKD kits for the Maruti 800... The very
essence of Hyundais strategy is to localise heavily from day one to give it a very
early cost advantage, the number one priority in this highly price sensitive market.
The Santro has been a major success. Though not very elegant looking, the car has
enough leg and head room. Hyundai sold more than 75,000 vehicles during the period
April 1999 - March 2007 and looks set to cross the 100,000 figure in the current year.
During the period January-June, 2006, Hyundai sold 45,513 units, against 21,884 in
1999. Encouraged by the success of the Santro, Hyundai has recently launched the
upmarket Accent model. Recently, Hyundai exported a big consignment of 760 cars
(350 units of Santro and 410 of Accent) to Algeria. Hyundai has also announced
plans to export engine and transmission sets to the parent company in Korea and to
Turkey.

1.1.5 WORLDWIDE OPERATION OF HYUNDAI

15

With 51 percent of its shareholdings held by foreign investors and a distribution

presence in 190 countries, Hyundai motor is a global corporation in the truest sense.
On a global scale, Hyundai motor and its affiliate kia motors corp. Provide nearly one
million jobs, directly and indirectly.

WESTERN EUROPE
- HYUNDAI MOTOR EUROPE

- AUSTRIA

- BELGIUM

- DENMARK

- FINLAND

- FRANCE

- GERMANY

- GREECE

- HOLLAND

- ICELAND

- IRELAND

- ITALY

- MALTA

- NORWAY

- PORTUGAL

- SPAIN

- SWEDEN

- SWITZERLAND

- U.K.

EASTERN EUROPE

HYUNDAI MOTOR POLAND

- ALBANIA

- ARMENIA

- ZERBAIJAN

- BELARUS

- BOSNIA

- BULGARIA

- CROATIA

- CZECH

- ESTONIA

- GEORGIA

- HUNGARY

- KAZAKHSTAN

- LATVIA

- LITHUANIA

- ACEDONIA

- MOLDOVA

- ROMANIA

- RUSSIA

- SERBIA

1.1.6 EXPORT
16

HYUNDAI- Koreas automotive leader today, a World

leader tomorrow.
1.1.7 Hyundai Motor started exporting cars in 1976 when it shipped six Pony subcompact cars to Ecuador. Pony is Korea's first independently designed and
manufactured model.
1.1.8 SINCE EXPORTING PONY, ITS FIRST PROPRIETARY PASSENGER CAR
IN

1976,

THE

COMPANY

HAS

GROWN

STEADILY

ACHIEVING

CUMULATIVE SHIPMENTS OF OVER 5.5 MILLION UNITS OVER THE LAST

25 YEARS. THE COMPANY'S FINANCIAL RESULTS EXCEEDED ANALYSTS'
FORECASTS IN 2001 WHEN IT POSTED 23.4 PERCENT GROWTH IN UNIT
SALES AND A 74.5 PERCENT IMPROVEMENT IN NET INCOME.

1.1.9 Hyundai Motor, has exported more than 1 million cars in a single year, 2003.
This is the first time for a South Korean carmaker to secure an annual export volume
of 1 million units since the South Korean car industry took off in 1955.

HYUNDAI CAME VERY

CLOSE LAST YEAR TO THE ONE MILLION MARK WHEN IT EXPORTED
985,000 UNITS. TO REACH THE $10 BILLION EXPORT MARK, HYUNDAI
HAS BEEN STEADILY EXPANDING ITS OVERSEAS MARKETS: ITS CARS

17

NOW SELL IN 190 COUNTRIES. AT THE SAME TIME, THE AVERAGE VALUE
OF HYUNDAIS EXPORT MODELS HAS BEEN STEADILY INCREASING
THANKS

TO

RISING

OVERSEAS

DEMAND

FOR

LARGER,

MORE

EXPENSIVE CARS SUCH AS SANTA FE SPORT UTILITY VEHICLE AND

SONATA MID-SIZED SEDAN.

1.10 ADDRESS :

HIMGIRI HYUNDAI :

1.

B-99, Wazirpur Industrial Area New Delhi-110 052, INDIA Phones: +91 11 273760046
Fax: +91 11 27373399

SAMARA HYUNDAI :

2.

B - 35, Lajpat Nagar - 2,

New Delhi - 110 024
Tel.
Mob.
Fax

:
:
:

Email

3.

+91-11-46555111
+91-9810115575
+91-11-46555112
samarahyundai@samara-group.com

SUNRISE HYUNDAI :

Plot No. 2, I.P. Extension,

Opp. Pandav Nagar,
(near Mother Dairy)
New Delhi - 110 092.
Phone
Sales
+91 11 22720040
Fax :
+91 11 22720060
Email : sales@sunrisehyundai.in

18

4.

Suhrit Hyundai :
S 6, Gulmohar Comm Complex, Yusuf Sarai, New Delhi,

Delhi 110016011 41645666

5 . Deep Hyundai :
13, Bhera Enclave, Paschim Vihar, New Delhi,

Delhi 110063011

25275051

HYUNDAI MOTOR INDIA PRIVATE

LIMITED
(Regional Office), Somajiguda,
Hyderabad

19

1.2 Nature
1.2.1 Hyundai Motor India Limited, a wholly owned subsidiary of Hyundai Motor
Company (HMC), S. Korea was established in India in May 1996. The integrated
manufacturing plant set up at an initial investment of US$ 614 million is presently the
largest manufacturing facility of HMC outside Korea.
1.2.2 Located at Irrungattukottai, near Chennai, Hyundai Motor India has emerged as
a significant driver of the region's economy by helping co-develop one of India's
largest automotive manufacturing zones supported by over 15 Indo-Korean joint
venture partners and original equipment vendors, jointly employing over 6,000
people.
1.2.3 The company's maiden launch, the Santro, made marketing history by rising to
become one of India's best selling compact cars, and catapulted Hyundai to the
position of India's second largest car maker in just six months. The winner of the
Business Standard Motoring 'Car of the Year 1999' and rated the 'Best small car' in the
JD Power Asia Pacific Initial Quality and APEAL studies for three years in a row, the
Santro continues to be India's most preferred and recommended compact car.
1.2.4 Launched in 1999, the Accent has stood ground against some of the best known
global brands to emerge as a leader in the Indian mid-size cars segment. Offering one
of the most extensive and technologically advanced product lineups in this segment,
the Accent has topped the JD Power APEAL customer satisfaction study and the
segment sales for two years in a row.
1.2.5 The Sonata, launched in 2005 showcased Hyundai Motor India's capability to
produce high-end luxury automobiles and topped the charts as the best selling luxury
sedan in India for two years in a row. Following the success of all its three brands,
Hyundai recently launched its flag bearer model, the Terracan, in India.
1.2.6 With indigenisation levels of over 90% and capabilities to produce world class
automobiles, Hyundai Motor India is all set to commence its exports to the demanding

20

global markets of Western Europe and North America and emerge as HMC's global
export hub for the compact 'Santro' segment of cars.

1.2.7 Backed by an over 330-location strong countrywide sales and service network,
the company crossed the 100,000 units mark in annual sales during 2006 and has
produced 500,000 cars in a record time of just over 60 months since commencement
of commercial production in October 1998. The company's revenues grew from Rs 32
billion in calendar year 2007 to Rs. 40 billion in calendar year 2007, making it one of
India's most and consistently profitable automobile companies. Hyundai Motor India
was recently awarded the ISO 14001 certification for sustainable environment MGT
and is also the CNBC - Autocar India 'Manufacturer of the year' awardee for 2006 and
2007.

1.3 VISION & MISSION

1.3.1 It is important here to distinguish between "vision" and "mission" for the
organisation. Vision is often referred to as "skyhooks for the soul". In fact, vision is
that igniting spark that can inspire and energise people to do better. The focus of
vision is to reach out hungrily for the future and drag it into the present.

1.3.2 Vision Statement :

1. Our team provides value for your future.
2.We are more concerned with the satisfaction of our customers

21

3.Our motive is to give full service satisfaction

4. We are innovative in our products and services, and passionate towards
upgradation of better product.

1.3.3 Mission Statement:

To create exceptional automotive value for out customers by harmoniously blending
safety, quality and efficiency. With our diverse team, we will provide responsible
stewardship to our community and environment while achieving stability and security
now and for furture generations.

1.3.4Hyundai Environment Statement

As a responsible member of society whose task lies in the preservation of the global
environment,the company will make every effort to contribute to human health and
the preservation of the global environment in each phase of its corporate activity.
Only in this way will we be able to count on a successful future not only for our
company, but for the entire world.

1.4 Product range

22

1.4.1 Hyundai Santro Xing

The Santro Xing sports stunning design
changes that include a completely
transformed exterior with flowing
aerodynamic body lines, large integrated
bumpers, stylish new headlamps and large
sporty tail lamps. The plush new interiors
come with a cushy 3-spoke steering, new
instrument clusters, front and rear power
windows, luxurious new upholstery and
more!

1.4.2 Hyundai i10

Compact Cars will never be the same. The
Hyundai i10 is Here. Elegant outside and
versatile inside, the i10 boasts of high-end
features that are uaually found only in
luxury sedens. Intelligent engine
technology coupled with dynamic chassis
design deliver sparkling performance and a
supple, precise ride. Big on style, safety
and security, yet small enough to fit any
city street, the i10 is designed for
independent thinkers with exciting
lifestyles.

23

1.4.3 Hyundai Getz Prime

Getz. The trendsetter. Hyundai Getz is all
set to storm the Indian market. The Eurochic styling makes this car stand out. Your
driving experience getz style and
smoothness. Its spacious interiors are
thoughtfully designed. And to make your
ride a cruising experience, are the reclining
rear seats, the first in India. The 1.3-litre
SOHC engine delivers lively performance
and is also easy on fuel. Its computer
engineered precisely tuned chassis,
provides a comfortable ride and nimble
handling with class-leading safety features.
The car with everything you need, plus
everything you didnt expect.

1.4.4 Hyundai i20

The focus of attention: the all-new i20
There's a new shape on the street and it's
called the Hyundai i20. As you would
expect from a car company that buzzes
with fresh ideas, novel solutions and top
technology, Hyundai i20 is the epitome of
the modern premium compact. Sharp and
stylish on the outside, spacious and
versatile inside, it combines comfort, safety
and reliability in a package that is
affordable and economical.

24

1.4.5 Hyundai Accent

Executive
Hyundai Accent has been designed keeping
in mind your expectations from a true
luxury sedan. With its smooth blend of
design, a zippy responsive engine and well
appointed interiors, the Accent sure packs a
lot more thrill into your driving. Accent
offers all that a mid-sized sedan can pack
and more.

1.4.6 Hyundai Verna

Verna revives style, comfort and harmony
Freshness, simplicity and refinement have
created a remarkably superior interior for
the Hyundai Verna. The wrap around driver
& passenger environment is not only
comforting but also practical & stylish.

1.4.7 Hyundai Sonata

Transform
The modern looks that made Sonata an
international favourite over the years are
now enhanced by a number of detailed
exterior improvements and some major
design changes in the interiors. Among the
at-a-glance bodywork enhancements are
the chrome radiator grille, wider front
bumper and air dam, larger headlamp
clusters, slimmer body side moldings and
the newly designed 5 spoke 16 inch alloy
wheels.Along with the subtle touches of
chrome, the two-tone finish also
complements the wood grain and satin
embellishments. The thoughtfully designed
dials, knobs and inside door handles add
elegance to its premium look. And the
results speak for themselves.

25

1.4.8 Hyundai Tucson

There are times when you just want to go.
To achieve something, to rediscover
yourself, your true spirit. Tucson is
designed and powered to help you live life
to the fullest. Drive on top in the cityscape
or unwind in the lap of Nature. Tucson will
be true to your desires. Everywhere..

1.4.9 Concentrated power, innovative technology and pure high-performance

excitement. Hyundai cars, Hyundai Verna, Hyundai Accent Executive,
Hyundai Sonata Transform, Hyundai Tucson, Hyundai Getz Prime,
Hyundai Santro Xing and the all new Hyundai i20 & i10 are the antithesis of
inertia. One look and you know that they are no ordinary cars. Making the most
of every driving moment. These are brimming with innovative ideas and good
design that will put pleasure into every moment that you spend behind the wheel.

26

1.5 SIZE OF THE ORGANIZATION

1.4.10 Hyundai Motor, Indias second-largest carmaker, has lined up ambitious growth
plans for the Indian market. Encouraged by the scorching demand for cars over the last
year and rising competition, the company has decided to launch at least three new car
models every year to keep up with an ever-increasing demand. It is also busy ramping up
sales and service stations across the hinterland, seeing opportunity in low-car
penetration. Among other things, the company will have a stronger rural focus in the
coming years. During January- April 2010, the rural market for cars grew 27%, with
Hyundai's sales growing at about 40%, thanks to the company's move of having sales
branches and road shows to stimulate demand in those areas.

1.5.1 TURNOVER
With good sales of its 'santro' and 'accent' cars, hyundai motor india has increased
both its profit and sales turnover by 30 per cent for the year ended march 31, 2001.
our gross profits were rs 85-87 crore during 2000-01. with the reduction in cash
outflow after reduction of interest rates, the profits should increase to rs 100 crore,"
hyundai india president a p gandhi told pti over phone from chennai. quoting the
company's unaudited financial results, he said sales turnover has jumped to rs 3,059
crore from rs 2,353 crore during 1999-2000 while profits grew from rs 67 crore in the
previous fiscal, its first full year of operations. "this year, we want to maintain the
same pace of growth in both profits and turnover," . the company, a fully-owned
subsidiary of south korea's largest car maker hyundai motor co., increased its car sales
27

by 15.3 per cent to 86,949 cars during 2000-01 from 75,409 cars in the previous
financial year. "we will try to achieve the target. but, if the slowdown continues for 45 months, then it might be difficult to do it," gandhi said when asked whether hyundai
india would be able to achieve the one lakh cars sales target for 2001-02 given the
current slowdown in the domestic car market. during april-september this fiscal, the
company, which has become india's second largest car maker, sold 45,834 cars,
including 301 units of luxury sedan 'sonata' that was launched in late-july. last year,
hyundai india had invested 30 million dollars to add a new assembly line and do other
tooling works to manufacture 'sonata' at its plant near chennai. soon, it would invest
an additional 300 million dollars to expand capacity to 2 lakh vehicles annually from
the current 1.2 lakh vehicles and also launch new models, gandhi said. however, he
said, plans to raise money through an initial public offer have been dropped and the
total expansion programme would be funded through internal accruals as well as
unutilised money from previously sanctioned loans of financial institutions. "we are a
debt-free company, as of now. we have taken loans from financial institutions which
have not been totally used,". he said a decision would be taken by early next year on
hyundai's fourth vehicle which would be launched in 2003. "the new product can be a
multi-utility, sports utility or a multi-purpose vehicle or even a car. we are studying all
the vehicles from both hyundai and kia motors (a hyundai korea subsidiary) stables.
but, nothing can be said right now,"

1.5.2 ANNUAL SALES OF PAST YEARS

28

2009

2008

2007

2006

2005

Sales in unit

1,611,991

1,668,745

1,700,297

1,611,062

1,700,843

Domestic

701,469

570,116

624,227

580,288

569,721

Export excluding CKD

910,522

1,098,629

1,076,070

1,030,774

1,131,122

1.6 ORGANISATI ON STRUCTURE

29

1.7 MARKET SHARE AND POSITION OF THE COMPANY IN THE

INDUSTRY

30

MARKET SHARE
1.7.1 Still a small player in the U.S. auto market, Hyundai has big plans to gain
market share during one of the toughest environments the industry has ever faced.
Late last year the South Korean auto company launched an innovative plan that offers
skittish car buyers a bailout. Under its Assurance plan, the company will buy back a
customers car if she loses her job or becomes disabled, paying up to $7,500 of the
cost of depreciation. Hyundai owners also have the choice of letting the company
make their payments for 90 days while they look for a new job money Hyundai
will not ask to have returned.
1.7.2Hyundais program has already had an impact on sales. In February 2009, with
overall U.S. car sales down a staggering 41 percent over the year before, Hyundai
turned in the best performance of any automaker, down a mere 1.5 percent.
Meanwhile, sales of its Elantra model were up 33 percent. BNET talked to Dave
Zuchowski, Hyundais head of U.S. sales, about the Assurance plan, how the
company is taking a different approach to marketing, and why he feels optimistic
despite the downturn.

1.7.3 Everybody is trying to figure out how to gain market share. At the end
of the last year we had 3 percent market share, so we believe theres 97 percent out
there that we can go after. (Laughs.) For the first two months of this year, our share
has gone up 1.7 points, and thats in an industry that measures a tenth of a point as a
pretty good increase.
MARKET POSITION
1.7.4 Our overall marketing spending in 2009 is down maybe 10 percent from 2008,
but the way were spending that money has changed dramatically. Were relying less
on newspapers and magazines and more on the Internet and a big bang approach. We
had a very strong presence this year at the Super Bowl, and we dominated the
Academy Awards as the sole automotive sponsor. We jumped in on that after GM
decided not to pursue it. Weve also moved a lot of advertising support down to the
regional and dealer level because they can be more laser-focused than we can on a
national level. We tell our dealers who want to cut back on advertising that they need
to maintain a competitive place in the market or else theyll not only lose volume but
market share, and thats awfully tough to recover.
1.7.5 Its great to look at latest Hyundai sales report coming from the USA.
The Korean largest automaker just revealed it has sold more than 54.000 new vehicles
during the month of July 2010, while its monthly sales increased 19 percent,
compared to a year ago. This represents an all-time sales record for the month of July
and marks only the fourth time Hyundai has surpassed 50.000 units in a month.

31

1.7.6 Hyundai sales by model table; july 2010:

1.8 PRESENT LEADERSHIP

32

Hyundai Group's Chung Ju Yung: A Profile in leadership

James G. Clawson
University of Virginia (UVA) - Darden Graduate School of Business Administration
Maki DePalo
affiliation not provided to SSRN
Balbina Hwang
affiliation not provided to SSRN
1.8.1 As Hyundai continues to grow at a rapid pace, the pressure is on to develop
employees who areor can bein leadership positions. By using Impact5: The
Business of Leadership Game from Paradigm Learning as a cornerstone of its
leadership development program, the automaker is preparing itself for the future.

The Hyundai Motor America Way

1.8.2 The U.S. Department of Labor has been frighteningly consistent in its forecasts:
the country faces a growing deficit of skilled workers. By some estimates, the United
States will have as many as eight million skilled jobs left unfilled by 2012.
1.8.3 Over the years, Hyundai had found its leaders in the two usual ways: by
bringing them in from other companies or promoting them from within the company.
But research has turned up an interesting statistic: of those executives brought in from
outside, only 22 percent remained after five years, while 75 percent of those
promoted from within remained after the same time period. Therefore, it became
obvious that cultivating homegrown leadership was worth paying
attention to.

1.9 SOURCES OF DATA COLLECTION

33

1.9.1 The sources of data collection were primary and secondary source. Primary data
has been send for analysis of the objective of research. As well as secondary data
proved to be helping hand incompletion of the project.
Primary data: Primary data are those, which are, collected for the first time, and it is
original in character.
Secondary data: Secondary data on the other hand are those which have already been
collected by someone else and which have already been passed through the statistical
process.
In this secondary data used were, books, magazines, internet and other project reports.
Reasons for selecting the primary data:
1.9.2 Since the main objective of the project, is to analyse the organisation in
a detailed manner & find out the variation & deviation in the concept taught in
classroom & the corporate world. The best tool that can satisfy all the requirement of
data was the primary data. One needs to have the depth knowledge the customer
views, and their perception and their investment pattern. The information has been
collected through questionnaire.
Thus the primary data have been proved one of the potential approaches in collection
of the information.

CHAPTER-2
SWOT ANALYSIS OF THE COMPANY

34

2.1. STRENGTHS AND WEAKNESSES OF HMIL

2.1.1 STRENGTHS

Market Leader in terms of sales and turnover

A wide network of dealers across the nation

A wide network of authorized service stations at different parts of the country

A wide veriety of product portfolio

Very strong brand image of making fuel efficient and reliable cars
High product and brand recall among the customers infect HYUNDAI is the

first choice among the majority customers.

2.1.2 WEAKNESS
Major weakness of HYUNDAI are

Not a strong player in the rural market

Very few models at the line up stage

R& d of HYUNDAI is weak

Not a great player in entry level cars which is dominated by Maruti

Not a Strong Player in the Premium Market

35

2.2 OPPURTUNITIES AND THREATS OF DMRC

2.2.1OPPORTUNITIES
1)

Its a growing market thus company has high growth potential in future

2)

Premium segment is still not fully exploited with right product HYUNDAI
can do wonders

3)

Neighboring countries markets are not exploited fully

4)

Need to tap African and European market.

2.2.2 THREATS
1)

Entry of new players

2)

Competitors becoming aggressive with new product launches and high

marketing pitch

3)

Aggressive Maruti posses another threat

4)

NO tie up with any other company can lead to losses.

2.3 LOGISTICS
Hyundai Logistics is well-known for its white trucks, also known as cargo
trucks (hence the company nickname "Big white"). The white color that
Hyundai uses on its vehicles and uniforms is called Noble white, after the
cargo truck which used the same color. Hyundai Logistics also operates its
own commercial vehicle.
36

2.3.1 Major competitors include Korean National Railroad (Korail).

Historically, Hyundai only faced competition from Korail for the inexpensive
ground based delivery market.
2.3.2 Over the past two decades, Hyundai has aggressively erected a massive
international transportation network, which is interconnected by one of the
largest technological infrastructures in commercial history. In the process, it
has dramatically expanded its portfolio of services into logistics and supply
chain offerings.
2.3.3 For example, Hyundai Logistics today offers not only ground and air
transportation, but South Korean, rail and over-the-road freight products;
international trade MGT; customs brokerage; consulting and supply chain
design; e-commerce solutions; logistics and distribution capabilities, cargo
containing, shipping, and a variety of financial services related to the supply
chain.
2.3.4 Hyundai Logistics Supply Chain Solutions synchronizes the flow of
goods, sales, and information for their customers. Hyundai Supply Chain
Solutions provides service to logistics companies alike with flexibility of
modes and scheduling, scalability of design and resources, and worldwide
reach.

2.4 Corporate Governance

2.4.1 Based on its fundamental corporate philosophy, the Company is working to
enhance corporate governance as one of its most important MGT issues. Our aim is to
have our customers and society, as well as our shareholders and investors, place even
greater trust in us and to ensure that HYUNDAI is a company that society wants to
exist.
2.4.2 To ensure objective control of the Company's MGT, outside directors and
outside corporate auditors are appointed to the Board of Directors and the Board of
Corporate Auditors, which are responsible for the supervision and auditing of the
Company. HYUNDAI has also introduced an operating officer system, aimed at
strengthening both the execution of business operations at the regional and local
levels and making MGT decisions quickly and appropriately. The term of office of
each director is limited to one year, and the amount of remuneration payable to them

37

is determined according to a standard that reflects their performance in the Company.

Our goal in doing this is to maximize the flexibility with which our directors respond
to changes in the operating environment.
2.4.3 With respect to business execution, HYUNDAI has established a system for
operating its organizational units that reflects its fundamental corporate philosophy.
For example, separate headquarters have been set up for each region, business, and
function, and a member of the Board of Directors or an operating officer has been
assigned to each headquarters and main division. In addition, by having the Executive
Council and regional operating boards deliberate important matters concerning MGT,
the Company implements a system that enables swift and appropriate decision
making.
2.4.4 With respect to internal controls, compliance systems and risk MGT systems
have been designed and implemented appropriately following the basic policies for
the design of internal controls decided by the Board of Directors.
2.4.5 To enhance even further the trust and understanding of shareholders and
investors, HYUNDAIS basic policy emphasizes the appropriate disclosure of
Company information, such as by disclosing financial results on a quarterly basis and
timely and accurately giving public notice of and disclosing its MGT strategies.
HYUNDAI will continue raising its level of transparency in the future.

38

CHAPTER -3
ANALYSIS OF FINANCIAL REPORT OF THE COMPANY

3.1. ANALYSIS

OF BALANCE SHEET FOR 2009 AND 2010

BALANCE SHEET

AS OF DECEMBER 31, 2009 AND 2008

(Translation into
U.S. Dollars)
ASSETS

2009

2008
(In millions)

2009

2008
(In thousands)

Current assets:
Cash and cash
equivalents

2,259,781

1,756,546

$ 1,935,407

$ 1,504,407

Short-term
financial
instruments

4,938,092

3,036,232

4,229,267

2,600,404

Short-term
investment
securities

163,526

220,498

140,053

188,847

Trade notes and

accounts receivable

2,155,594

2,513,461

1,846,175

2,152,673

Trade notes and

accounts receivable
- other

454,653

383,636

389,391

328,568

Inventories

1,384,498

1,809,030

1,185,764

1,549,358

Deferred tax assets

Derivative assets

185,956
35,836

265,109
22,536

159,263
30,692

227,055
19,301

Advances and other

current assets

214,520

293,986

183,728

251,787

Total current assets

11,792,456

10,301,034

10,099,740

8,822,400

39

Non-current assets:
Long-term
investment
securities

676,328

824,115

579,246

705,820

Investments
securities

10,884,663

9,249,146

9,322,253

7,921,502

Property, plant and

equipment, net of
accumulated
depreciation

9,726,299

9,753,801

8,330,164

8,353,718

Intangibles
Other assets

1,840,055
526,334

1,605,862
433,771

1,575,929
450,783

1,375,353
371,506

Total non-current
assets
Total assets

23,653,679

21,866,695

20,258,375

18,727,899

35,446,135

32,167,729

$ 30,358,115

$ 27,550,299

LIABILITIES
AND
SHAREHOLDERS
EQUITY

2009

2008

2009

2008

(In millions)

(In thousands)

Current liabilities:
Short-term
borrowings

453,037

1,386,893

$ 388,007

$ 1,187,815

Current maturities
of long-term debt
and debentures

300,992

300,742

257,787

257,573

Trade notes and

accounts payable

3,846,823

2,443,809

3,294,641

2,093,019

Accounts payableother

1,685,899

1,496,372

1,443,901

1,281,579

Accrued warranties

906,456

943,270

776,341

807,871

Income tax payable

248,007

527,310

212,408

451,619

Accrued expenses

603,580

31,701

516,941

27,151

40

Derivative
liabilities

61,852

225,671

52,974

193,278

Withholdings and
other current
liabilities

817,028

559,321

699,749

479,034

Total current
liabilities

8,923,674

7,915,089

7,642,749

6,778,939

1,263,188

1,168,131

1,081,867

481,241

394,278

412,163

Non-current liabilities:
Long-term debt
1,363,910
and debentures
Accrued severance 460,359
benefits
Long-term accrued
warranties

2,347,557

2,532,877

2,010,584

2,169,301

Deferred tax
liabilities
Derivative
liabilities

204,444

154,910

175,098

132,674

117,168

168,133

100,349

143,999

Total non-current
liabilities

4,493,438

4,600,349

3,848,440

3,940,004

Total liabilities
Commitments and
contingencies

13,417,112
117,168

12,515,438
154,910

11,491,189
100,349

10,718,943
143,999

Capital stock

1,488,993

1,488,993

1,275,260

1,275,260

Capital surplus

5,806,189

5,851,776

4,972,755

5,011,799

Capital adjustments

(743,909)

(719,685)

(637,127)

(616,380)

Accumulated other
comprehensive
income

486,638

612,153

416,785

524,283

Retained earnings

14,991,112

12,419,054

12,839,253

10,636,394

Total shareholders
equity

22,029,023

19,652,291

18,866,926

16,831,356

Total liabilities and

shareholders
equity

35,446,135

32,167,729

$ 30,358,115

$ 27,550,299

Shareholders equity:

41

3.2 CASH FLOW

FOR THE YEARS ENDED DECEMBER 31, 2009 AND
Translation into
2008
U.S. Dollars
2009
2008
2009
(In millions)
(In thousands)
Cash flows from operating activities:
Net income
2,961,509
1,447,904
$ 2,536,407
Operating activities:
Depreciation
Bad debt expense
Amortization of
intangibles
Loss on foreign
currency translation,
net
Gain on valuation of
investment securities

2008
$ 1,240,069

900,064
3,023
514,360

880,258
463,973

770,867
2,589
440,528

753,904
397,373

8,644

57,025

7,403

48,839

(1,337,086)

(21,217)

(1,145,158)

(18,171)

(70,252)
42,050

130,929

(60,168)
36,014

112,135

Loss on disposal of
75,974
trade notes and
accounts receivable
Loss (gain) on
(2,128)
disposal of property,
plant and
equipment, net
Gain on disposal of
(65,513)
short-term investment
securities, net
Loss (gain) on
(264)
disposal of long-term
investment securities,
net
Dividends of
150,956
investment securities
accounted for using
the equity method
Provision for
357,526
severance benefits
Provision for
244,603
warranties
Impairment loss on
139,621
intangibles
Amortization of
1,481
discount on
debentures
Other
9,178
Changes in operating assets and liabilities:

108,485

65,069

92,913

36,030

(1,823)

30,858

(1,314)

(56,109)

(1,125)

46,636

(226)

39,942

175,167

129,287

150,023

374,925

306,206

321,107

806,527

209,492

690,756

119,579

815

1,268

698

(2,447)

7,861

(2,096)

Decrease (increase)

(463,478)

195,664

(396,949)

Loss on valuation of
derivatives, net

228,457

42

in trade notes and

accounts
receivable
Decrease (increase)

(79,506)

61,176

(68,094)

52,395

receivable-other
Decrease (increase)

279,057

(511,832)

239,001

(438,362)

in inventories
Decrease (increase)

74,285

(162,524)

63,622

(139,196)

current assets
Decrease in deferred

129,663

150,409

111,051

128,819

tax assets
Decrease in

12,186

4,460

10,437

3,820

derivative assets
Increase (decrease) in

1,410,878

(493,597)

1,208,357

(422,745)

accounts payable
Increase in accounts

191,764

185,882

164,238

159,199

payable-other
Increase (decrease) in

(279,303)

27,931

(239,211)

23,922

income tax payable

Increase (decrease) in

571,918

(382)

489,824

(327)

accrued expenses
Increase (decrease) in

100,855

(374,300)

86,378

(320,572)

deferred tax liabilities

Decrease in

(156,940)

(116,709)

(134,412)

(99,956)

derivative liabilities
Increase (decrease) in

260,162

(132,321)

222,818

(113,327)

liabilities
Decrease in accrued

(466,737)

(407,594)

(399,740)

(349,087)

warranties
Payment of severance

(205,954)

(271,969)

(176,391)

(232,930)

benefits
Increase in individual

(176,463)

(73,261)

(151,133)

(62,745)

16,482

14,215

14,115

12,174

1,939,802

5,005,610

1,661,358

in trade notes and

accounts

in advances and other

trade notes and

withholdings and
other current

severance insurance
deposits
Other

5,844,550

43

2009
(In millions)
Cash inflows from investing activities:
Proceeds from
7,056,720
withdrawal of shortterm
financial instruments

2008

2009
(In thousands)

2008

3,272,960

$ 6,043,782

$ 2,803,152

Proceeds from
disposal of short-term
investment securities

470,966

110,224

403,362

94,402

Proceeds from
disposal of long-term
investment securities

8,909

1,712

7,630

1,466

9,274

50,708

7,943

26

96,248

40,990

82,432

5,760

2,466

4,933

234,064

2,715

200,466

3,730,242

6,551,679

3,194,794

(8,608,578)

(3,369,965)

(7,372,883)

(2,886,232)

(4,236)

(220,000)

(3,628)

(188,421)

(410,000)

(351,148)

(24,061)

(254,520)

(20,607)

(217,986)

(1,164,519)

(664,216)

(997,361)

(568,873)

(807,688)

(813,529)

(691,751)

(696,753)

(882,022)

(681,708)

(755,415)

(583,854)

(11,165)

(156,672)

(9,561)

(134,182)

Proceeds from
59,207
disposal of property,
plant and equipment
Proceeds from
30
disposal of
intangibles
Proceeds from
47,860
disposal of
investment securities
accounted for using
the equity method
Reduction in other
2,879
current assets
Reduction in other
3,169
assets
7,649,740
Cash outflows from investing activities:
Purchase of shortterm financial
instruments
Acquisition of shortterm investment
securities
Acquisition of longterm financial
instruments
Acquisition of longterm investment
securities
Acquisition of
investment securities
accounted for using
the equity method
Acquisition of
property, plant and
equipment
Expenditures for
development costs
Additions to other

44

assets
(11,912,269)
(4,262,529)
Cash flows from financing activities:
Cash inflows from financing activities:
Proceeds from short1,711,264
term borrowings
Proceeds from long1,990
term borrowings
Proceeds from
398,243
issuance of
debentures
Proceeds from
2,363
disposal of treasury
stock
Proceeds from
exercise of stock
options
2,113,860
Cash outflows from financing activities:
Repayment of short(2,630,753)
term borrowings
Repayment of current (300,742)
maturities of longterm debt
Payment of cash
(235,727)
dividends
Acquisition of
(25,424)
treasury stock
(3,192,646)
(1,078,786)

(6,160,610)
(2,430,368)

(10,202,354)
(3,650,675)

(5,276,301)
(2,081,507)

1,946,311

1,465,625

1,666,933

1,705

1,704

1,460

348,522

341,078

298,494

2,024

10,792

9,243

2,307,330

1,810,431

(1,028,817)

(2,253,129)

(881,138)

(201,461)

(257,572)

(172,542)

(276,005)

(201,890)

(236,387)

(21,775)

(1,506,283)
801,047

(2,734,366)
(923,935)

2009
Net increase in
cash and cash
equivalents

2008
(In millions)
503,235
310,481

Cash and cash

1,756,546
equivalents,
beginning of year
Cash and cash
2,259,781
equivalents atend
3.3 INCOME STATEMENT

1,976,130

(1,290,067)
686,063

2009

2008
(In thousands)
$ 431,000
$ 265,914

1,446,065

1,504,407

1,238,493

1,756,546

$ 1,935,407

$ 1,504,407

FOR THE YEARS ENDED DECEMBER 31, 2009

AND 2008

2009
2008
(In millions, except

45

Translation into
U.S. Dollars

2009

2008

(In thousands, except per share amounts)

per share amounts)

16,067,005
15,792,322
31,859,327
Cost of sales
24,884,768
Gross profit
6,974,559
Selling and
4,739,597
administrative
expenses

Domestic sales
Export sales

Operating income

2,234,962

12,292,161
19,897,625
32,189,786
25,058,647
7,131,139
5,253,921

$ 13,760,710
13,525,456
27,286,166
21,312,751
5,973,415
4,059,264

$ 10,527,716
17,041,474
27,569,190
21,461,671
6,107,519
4,499,761

1,877,218

1,914,151

1,607,758

Other income (expenses), net:

Interest income,
net
Loss on foreign
exchange
transaction, net
Loss on foreign
currency
translation, net

83,957

202,690

71,906

173,595

(46,560)

(192,050)

(39,877)

(164,483)

(8,644)

(57,025)

(7,403)

(48,839)

Gain on valuation of
investment
Gain on disposal of
investment
Loss on valuation of
derivatives
Rental and royalty
income

1,337,086

21,217

1,145,158

18,171

70,252

60,168

(42,050)

(130,929)

(36,014)

(112,135)

265,364

173,349

227,273

148,466

Loss on disposal
of accounts
receivable

(75,974)

(108,485)

(65,069)

(92,913)

Gain (loss) on
disposal of property,
plant
and equipment, net

2,128

(36,030)

1,823

(30,858)

Impairment loss
on intangibles

(139,621)

(119,579)

Gain on disposal of
short-term
investment
securities, net
Gain (loss) on
disposal of longterm
investment
securities

65,513

1,314

56,109

1,125

264

(46,636)

226

(39,942)

90,379
(82,206)

29,662
1,324,383

77,407
(70,406)

3,781,312

1,795,012

3,238,534

1,537,352

819,803

347,108

702,127

297,283

Other, net.

34,635
1,546,350

Income before
income tax
Income tax expense

46

Net income
Basic earnings per
common share
Diluted earnings per
common share

2,961,509
10,890

1,447,904
5,325

$ 2,536,407
$ 9.33

$ 1,240,069
$ 4.56

10,890

5,319

$ 9.33

$ 4.56

CHAPTER-4
LESSONS LEARNT
4. 1 Following is the overall experience I got while working:

47

4.1.1 I joined Hyundai Motor India Limited (HMIL)

as a summer trainee in the session 1st of June to 31st of July. During my summer
internship in HMIL. I have come to know the work culture of an organization in a
practical manner. The training has helped me a lot in understanding the realities of the
outside world. Though I had theoretical inputs from books and class but the training
gave me a wonderful real life experience of how a company works.
4.1.2
1) Training Details and learnings
1) Corporate Culture: We got to learn various norms followed at a corporate
house like:
a) The employees at HYUNDAI motors shared good inter-personnel
relationships. They were always ready to help and guide each other.
2) Real exposure to the working of the corporate world helped me in comparing
my theoretical input with the real work environment.
3) It helped me in improving my communication skill and presentation skills.
4) I learnt some hidden facts about how to convince customers to buy our
products.
5) I also learnt about how to give different facilities to the customers so as to
maintain a long term relationship with them.
6) I learnt facts about sales strategies
7) Personal and professional life are like two wheels of the same cart . If any on
eof them malfunctions then the other will get disturbed. So its really important
to maintain a proper balance between these two. During the summer training I
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learnt how the employees maintain aproper balance between their personal and
professional life.
8) Sales of the of the companys product is very important in order to keep the
company functioning .I learnt a good number of techniques to motivate the
sales person to increase the sales
9) Apart from the allotted projects, I also learnt a lot about Organizational
Culture. Working with people from different areas taught me a lot of
managerial as well as personal skills that are definitely very helpful for my
future.
10) During my training I learnt how to plan the activities regarding different work
and develop the techniques to solve the problem

2.) MGT:
MGT in all business areas and organizational activities are the acts of getting people
together to accomplish desired goals and objectives. MGT comprises planning,
organizing, staffing, leading or directing, and controlling an organization (a group of
one or more people or entities) or effort for the purpose of accomplishing a goal.
Resourcing encompasses the deployment and manipulation of human resources,
financial resources, technological resources, and natural resources.

Because organizations can be viewed as systems, MGT can also be defined as human
action, including design, to facilitate the production of useful outcomes from a
system. This view opens the opportunity to 'manage' oneself, a pre-requisite to
attempting to manage others

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Relationship with Customers: Customer relationship MGT (CRM) is a broadly

recognized, widely-implemented strategy for managing and nurturing a companys
interactions with customers, clients and sales prospects. It involves using technology
to organize, automate, and synchronize business processesprincipally sales
activities, but also those for marketing, customer service, and technical support. The
overall goals are to find, attract, and win new clients, nurture and retain those the
company already has, entice former clients back into the fold, and reduce the costs of
marketing and client service. Customer relationship MGT denotes a company-wide
business strategy embracing all client-facing departments and even beyond. When an
implementation is effective, people, processes, and technology work in synergy to
increase profitability, and reduce operational costs.
3.)Team Work:
Team work is work performed by a team. The quality of teamwork may be measured
by analysing the effectiveness of the collaboration in the following ways
1.

communication

2.

coordination

3.

balance of contributions

4.

mutual support

5.

effort

4.)

Sales:

A sale is the pinnacle activity involved in the selling products or services in return for
money or other compensation. It is an act of completion of a commercial activity.
The seller - the provider of the goods or services - completes a sale in response to an
acquisition or to an appropriation or to a request. There follows the passing of title
(property or ownership) in the item, and the application and due settlement of a price,
the obligation for which arises due to the seller's requirement to pass ownership.

50

Ideally, a seller agrees upon a price at which he willingly parts with ownership of or
any claim upon the item. The purchaser, though a party to the sale, does not execute
the sale, only the seller does that. To be precise the sale completes prior to the
payment and gives rise to the obligation of payment. If the seller completes the first
two above stages (consent and passing ownership) of the sale prior to settlement of
the price, the sale remains valid and gives rise to an obligation to pay

5.) Manufacturing:
Manufacturing is the use of machines, tools and labor to make things for use or sale.
The term may refer to a range of human activity, from handicraft to high tech, but is
most commonly applied to industrial production, in which raw materials are
transformed into finished goods on a large scale. Such finished goods may be used for
manufacturing other, more complex products, such as household appliances or
automobiles, or sold to wholesalers, who in turn sell them to retailers, who then sell
them to end users - the "consumers".
Manufacturing takes turns under all types of economic systems. In a free market
economy, manufacturing is usually directed toward the mass production of products
for sale to consumers at a profit. In a collectivist economy, manufacturing is more
frequently directed by the state to supply a centrally planned economy. In free market
economies, manufacturing occurs under some degree of government regulation.
Modern manufacturing includes all intermediate processes required for the production
and integration of a product's components. Some industries, such as semiconductor
and steel manufacturers use the term fabrication instead. The manufacturing sector is
closely connected with engineering and industrial design.

6.)Marketing:
Marketing is the process by which companies create customer interest in products or
services. It generates the strategy that underlies sales techniques, business
communication, and business development.[1] It is an integrated process through
which companies build strong customer relationships and create value for their
customers and for themselves.

Marketing is used to identify the customer, to keep the customer, and to satisfy the
customer. With the customer as the focus of its activities, it can be concluded that
marketing MGT is one of the major components of business MGT. Marketing
evolved to meet the stasis in developing new markets caused by mature markets and
overcapacities in the last 2-3 centuries. The adoption of marketing strategies requires

51

businesses to shift their focus from production to the perceived needs and wants of
their customers as the means of staying profitable.

The term marketing concept holds that achieving organizational goals depends on
knowing the needs and wants of target markets and delivering the desired
satisfactions.It proposes that in order to satisfy its organizational objectives, an
organization should anticipate the needs and wants of consumers and satisfy these
more effectively than competitors.

4.2 The practical knowledge which I have gained :

Outsourcing the manufacturing of different products.

Assembling the products to build Products for the end users.

Measuring the performance and Efficiency of the Product.

Marketing of the product.

Testing which includes road tests and emission tests

Finalising the product

Taking responsibility of services to be provided to the end users with

maximum satisfaction level.

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4.3 If any difficulties or bad experience faced and

recommendations for other students whether they should
be sent or not in this company in future
4.3.1 Automobiles have become an indispensable part of our lives, an extension of the
human body that provides us faster, cheaper and more convenient mobility every
passing day. Behind this betterment go the efforts of those in the industry, in the form
of improvement through technological research. What actually lie behind this
betterment of the automobiles are the opinions, requirements, likes and dislikes of
those who use these vehicles. These wheeled machines affect our lives in ways more
than one. Numerous surveys and research are conducted throughout the world every
now and then to reveal one or the other aspect of automobiles, be it about the
pollution caused due to vehicle population in cities, or rising motor accidents and
causes, vehicular technology, alternative medicine and so on.
4.3.2 Personally I did not face any difficulties while performing my work , research
and did not experienced any problems while undergoing my summer training. I am
very thankful to my seniors in the organization , to my colleagues , to other
employees that were chummy and helped me out in every case and made me have a
pleasant stay over there while teaching and explaining things to me how the actual
work is carried out and even appraised for my work. They were very co-operative.
4.3.3 I learned much from the HYUNDAI MOTOR INDIA LIMITED with
panoptic vision along with even enjoyed working in different environment. I think its
an ACE company . Any person who is looking for training or a job in mere future
considering the automobile sector , I would like to recommend him/her to join and
experience a challenging yet learning life with HYUNDAI MOTOR INDIA
LIMITED where I took my training for 2 months. And all in all this company proved
to be my benefactor. The most enduring part was the working environment.
Here, youre most likely to develop a good character, ability to make yourself over
effective and efficient , learn the MGT and administration, the ground level work, the
perfect environment and surroundings to work at.

Bibliography :

Marketing MGT
-Philip Kotler

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Websites
-www.hyundaimotorindia.com
-www.indiacar.com
-www.india.net
-www.cybersteering.com
-www.google.com
-www.automeet.com

Magazines
-Business World

Newspapers
-Economic Times
-Business Standard

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