Research Article
The Start-up and the Growth of a Great Enterprise : Case Study of Hyundai Heavy Industries Co.
Kookmin University
Published: January 2015 · Vol. 19, No. 1 · pp. 1-32
Full Text
Abstract
The purpose of this case study is to confirm the Hyundai Heavy Industries Co.(HHI) as a great enterprise. HHI built the world's largest shipyard in March 1972, and succeeded in a start-up by solving the problems of foundation fund, technology, and new market creation. Also HHI has maintained the position of world's top shipbuilder and turned Korea into the world's leading shipbuilding country. HHI has pursued the growth and evolution using diversification policy utilized its accumulated technologies in shipbuilding to diversify its business activities into other industrial fields: Offshore & Engineering, Industrial Plant & Engineering, Engine & Machinery, Electro-Electric Systems, Green Energy and Construction Equipments. HHI has developed the 37 items of World Class Products with the drive of the technology development policy for the dominant products. These are designated by the government of Korea with the criteria. It is as follows: a product needs to be in a market worth more than USD 50 million a year or has annual exports of USD 5 million, ranked in the top five products in its field, and have at least 10% world market share. HHI has supported fully the improvement of education and cultural art activities, the achievement of healthy life for the local residents with the strategic philanthropy as the education support activity, culture and art support activity, and volunteer service activities. HHI has generated the high performance, the impact for the Korean and world shipbuilding industries, the remarkable reputation, the social value for a long time, and the longevity for 40 years over. As a result, HHI is the world's leading heavy industrial company which contributes immeasurably to the development of the Korean economy and Korean society in general. I developed the great enterprise framework in order to verify a great enterprise and suggested the great enterprise creation process for the growth of Korean companies to a great enterprise.
