효성그룹의 경영전략

Management Strategy of Hyosung Group

Since Hyosung started her business in 1957, it has had a sustainable growth for 40 years. This growth was attributed to her appropriate management strategies corresponding to the changes of domestic as well as global business environment such as Five-Year Economic Development Plan, the oil crisis and financial crisis in 1997. In the period of establishment (1962-72), Hyosung pursued acquisition strategy and created new ventures in order to follow up export promotion and import substitution policy under the First Five-Year Economic Development Plan. During growth period (1973-79), Hyosung’s synthetic fiber production system was vertically integrated for overcoming oil crisis and following up the Third Five-Year Economic Development Plan. Inthis period, Hyosung also tried to cooperate with foreign corporations, and got the advanced technology in order to overcome the drawbacks as an industry follower. In addition, she diversified into PET and steel wire businesses, and diversified into unrelated field, heavy industry. Hyosung maintained and strengthened this diversification strategy also in the period of maturity (1980-96) to surmount difficulties from second oil crisis and severe global competition. She expanded into electronics business, and was developed as a strong chemical corporation. By internationalizing the level of synthetic fiber technology and production scale, she tried to take off synthetic fiber business. In this period, Hyosung implemented business innovation very strongly, and tried to internationalize her business with leading technology of synthetic fiber. Finally, in the period of Global Take-Off (1997-present), Hyosung restructured her businesses on a large scale to overcome financial crisis in 1997, and she had started to globalize her business since the end of 1990’s. For many years, Hyosung has established her strong foundation in Korean market by pursuing diverse management strategies according to the changes of domestic as well as foreign environment. However, it is necessary for Hyosung to develop new strategies under the era of global competition, and she should strengthen her core capabilities and global competencies through developing new technology continuously.