ered heavy loses due to workers demand for pay raises.3. Operating in a Global Economy: International demands for free trade is forcing the Korean government to open its market. The chaebol will lose its protectionist import controls. Most recently, the North American Free Trade Agreement and the European Economic Community imposed trade limitations.4. Product Quality from Korea: Korean products were considered cheap quality. Companies are trying to improve that image. 5. By the 1990s, Daewoo Group was heavily leveraged, major markets were stagnant, expenditures on R&D were increasing, labor unrest continued, and government policy adds to their worries.6. Kim was most recently charged with allegedly paying campaign contributions to former president Roh Tae Woo government in exchange for a large government contract to build a submarine base.SOLUTIONS:Daewoo Group president was an excellent entrepreneur. He led the company’s growth from an 18,000 initial capital value to $25 billion in annual sales. Some of the solutions he employed to counter problems identified in his company are as follows:1. He used organizational politics to work with the government. He understood that to gain power, resources, and growth, he needed the protection of the government.2. Daewoo Group was excellent at turning around faltering companies due to a well-managed, highly centralized organizational structure. Under Kim’s vision, he developed a unique culture in his chaebol known as the Daewoo Spirit. This spirit consists of a commitment to creativity, challenge, and sacrifice. Kim believed in co-prosperity whereby the company provides value to employees, customers, suppliers, partners, and the country as a whole.3. Daewoo enlarged its capital supply sources by diversifying its method of securing funds, including leasing and deferred payments. They raise funds successfully overseas for large foreign investment projects. 4. Daewoo est...
