INDUSTRIAL PROJECT IV

JAIPUR NATIONAL UNIVERSITY

SCHOOL OF BUSINESS AND MANAGEMENT
INDUSTRAIL PROJECT REPORT IV

AT

MASTERS OF BUSINESS ADMINISTRATION- DUAL

4 SEM
SESSION 2022-2024

SUPERVISED BY: SUBMITTEDBY:

MS. SHRUTI AGGARWAL FIZA SINGH

ASSISTANT PROFESSOR MBA-DUAL

SCHOOL OF BUSINESS AND MANAGEMENT ERP ID- R32537

JAIPUR NATIONAL UNIVERSITY, JAIPUR

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TABLE OF CONTENTS

S.NO TOPICS PAGE NO

1 CERTIFICATE

2 DECLERATION

3 SUPERVISOR CERTIFICATE

4 ACKNOWLEDGEMENT

5 INTRODUCTION

i. ABOUT THE TOPIC

ii. THEORY AND BACKGROUND OF THE
TOPIC

6 COMPANY PROFILE

7 MY STUDY AS A HR IN A COMPANY

8 RESEARCH AND METHODOLOGY

9 ANALYSIS & INTERPRETATION

10 SWOT ANALYSIS

11 FINDINDS AND SUGGESTATION

12 CASE STUDY

13 CONCLUSIONS
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CERTIFICATE
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ACKNOWLEDGEMENT

I would like to express my sincere gratitude and appreciation to all who have supported me and
guided me throughout the course of my Industrial project and the preparation of this report.

First and Foremost, I am immensely grateful to the entire HYUNDAI team for providing me
with an enriching and conducive learning environment. The collective knowledge and camaraderie
within the team have fostered a remarkable atmosphere for professional growth, and I am thankful
for the opportunity to learn from each member. Their expertise and willingness to share their
knowledge have been instrumental in shaping my understanding of Financial Managment and in
helping me develop practical skills that will undoubtedly serve me well in my future endeavors
I would like to extend my gratitude to MS. Shruti Aggarwal, ASSISTANT PROFESSOR
my industrial project .
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COMPANY PROFILE

Hyundai Electronics is a subsidiary of the Hyundai Group, a multinational conglomerate

headquartered in Seoul, South Korea. The company is known for its extensive expertise in the
electronics industry, offering a diverse range of electronic products and solutions globally.
Hyundai Electronics has established itself as a reputable provider of consumer electronics, digital
appliances, semiconductor solutions, and industrial electronics products.

With a strong emphasis on technological innovation and quality assurance, Hyundai Electronics
aims to deliver cutting-edge electronic solutions that cater to the evolving needs of consumers and
businesses worldwide. The company has demonstrated a commitment to sustainability and
corporate social responsibility, integrating environmentally friendly practices and ethical
business operations into its core values.

Hyundai Electronics has also fostered strategic partnerships and collaborations with industry
leaders to enhance its technological capabilities, expand its market reach, and drive innovation in
the electronics sector. The company's global presence and distribution network have enabled it to
reach a wide customer base and maintain a competitive edge in the dynamic electronics market.

Founder: The company was founded as a part of the Videocon Group, a prominent Indian
conglomerate. The Videocon Group played a key role in establishing and nurturing the Hyundai
brand. The Videocon Group has been involved in various industries, including consumer
electronics, telecommunications, and home appliances. Hyundai, under the Videocon Group's
umbrella, gained recognition for its range of consumer appliances and home electronics, as
mentioned in the previous responses.

Competitors of Hyundai

Hyundai faces competition in the consumer electronics and home appliances sector from several
other brands, both domestic and international. Competitors of Hyundai in the Indian market may
include:

1. Consumer Electronics and Home Appliances:

1. Samsung Electronics
2. LG Electronics
3. Sony Corporation
4. Panasonic Corporation
2. Semiconductors and Memory Solutions:
1. Samsung Electronics
2. SK Hynix
3. Micron Technology
4. Intel Corporation
3. Mobile Devices and Smartphones:
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1. Samsung Electronics
2. Apple Inc.
3. Huawei Technologies
4. Xiaomi Corporation
4. Industrial Electronics and Components:
1. Siemens AG
2. ABB Group
3. Schneider Electric
4. Toshiba Corporation
5. Display Technologies:
1. Samsung Display
2. LG Display
3. Sharp Corporation
4. BOE Technology Group

Hyundai Electronics is a global leader in consumer electronics, semiconductors, and

telecommunications equipment. The company was founded in 1969 and is headquartered in Seoul,
South Korea. Hyundai Electronics has over 100,000 employees worldwide and its products are
sold in over 180 countries.

Hyundai Electronics' business is divided into three main segments:

 Consumer electronics: This segment includes products such as televisions, smartphones,

home appliances, and computers.
 Semiconductors: This segment includes products such as memory chips, logic chips, and
system-on-a-chip (SoC).
 Telecommunications equipment: This segment includes products such as mobile base
stations, network routers, and optical transmission equipment.

Hyundai Electronics is a major player in all three of these markets. The company is the world's
largest supplier of memory chips and is one of the leading suppliers of logic chips and SoCs.
Hyundai Electronics is also a major supplier of telecommunications equipment to mobile operators
around the world.

Hyundai Electronics is a major force in the global electronics industry. The company is known for
its innovative products, its high quality standards, and its competitive pricing. Hyundai Electronics
is also a major investor in research and development, which helps to ensure that the company
remains at the forefront of the electronics industry.
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FUNCTIONS OF VARIOUS DEPARTMENT

1. Research and Development (R&D):

o Develop new products and technologies.
o Improve existing products through innovation and technological advancements.
o Conduct market research to identify consumer needs and trends.
o Collaborate with other departments to ensure alignment with business goals.
2. Manufacturing/Operations:
o Oversee the production process of electronic components or devices.
o Maintain quality control standards to ensure products meet specifications.
o Optimize manufacturing processes for efficiency and cost-effectiveness.
o Manage supply chain logistics and inventory levels.
3. Sales and Marketing:
o Develop marketing strategies to promote products and increase brand awareness.
o Identify target markets and segments.
o Manage sales channels and distribution networks.
o Build relationships with clients and partners.
o Conduct market analysis and competitor research.
4. Finance:
o Manage financial planning, budgeting, and forecasting.
o Oversee accounting and financial reporting.
o Ensure compliance with financial regulations and standards.
o Provide financial analysis and decision support to other departments.
o Manage cash flow, investments, and financial risk.
5. Human Resources (HR):
o Recruit, onboard, and train employees.
o Develop and implement HR policies and procedures.
o Manage employee relations, performance evaluations, and compensation.
o Ensure compliance with labor laws and regulations.
o Foster a positive work environment and employee engagement.
6. Information Technology (IT):
o Manage IT infrastructure, including hardware, software, and networks.
o Provide technical support to employees and departments.
o Develop and implement IT security measures.
o Oversee data management and IT projects.
o Drive digital transformation initiatives.
7. Legal and Compliance:
o Provide legal advice and counsel to the company and its departments.
o Ensure compliance with laws, regulations, and industry standards.
o Draft and review contracts, agreements, and legal documents.
o Manage intellectual property rights and patents.
o Handle litigation and dispute resolution.
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SWOT ANALYSIS
Strengths:

1. Strong Financial Performance: Hyundai Electronics may have a track record of solid
financial performance, with healthy revenue growth and profitability.
2. Efficient Financial Management: The finance department may excel in managing
financial resources effectively, including budgeting, forecasting, and cost control.
3. Robust Financial Controls: Hyundai Electronics likely has established internal controls
to safeguard assets, prevent fraud, and ensure compliance with financial regulations.
4. Access to Capital: The company's strong financial position may provide access to capital
at favorable terms for investments, expansions, or strategic initiatives.
5. Strategic Financial Planning: The finance department may play a key role in strategic
planning, providing financial analysis and insights to support decision-making across the
organization.

Weaknesses:

1. Dependency on External Factors: Hyundai Electronics' financial performance may be

vulnerable to external factors such as economic downturns, currency fluctuations, or
changes in interest rates.
2. High Debt Levels: If applicable, the company may have high levels of debt, which could
increase financial risk and interest expenses, especially if not managed prudently.
3. Limited Financial Flexibility: Constraints on financial resources or liquidity could limit
the company's ability to pursue growth opportunities or respond to unexpected
challenges.
4. Complex Financial Reporting: Operating in multiple markets or segments could lead to
complex financial reporting requirements, increasing the risk of errors or compliance
issues.
5. Dependency on Hyundai Group: If Hyundai Electronics is part of a larger
conglomerate like Hyundai Group, it may face challenges related to intercompany
transactions, conflicts of interest, or reliance on group support.
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Opportunities:

1. Expansion into New Markets: Hyundai Electronics may have opportunities to expand
its financial operations into new markets or geographic regions, diversifying revenue
streams and reducing dependency on specific markets.
2. Financial Technology (FinTech) Innovation: Embracing financial technology
innovations could enhance operational efficiency, customer experience, and revenue
generation within the finance department.
3. Strategic Partnerships: Collaborating with financial institutions, technology firms, or
other companies could create opportunities for new products, services, or revenue
streams in the finance sector.
4. Economic Growth in Emerging Markets: Economic growth in emerging markets
presents opportunities for Hyundai Electronics to tap into new customer segments and
increase demand for financial products and services.
5. Mergers and Acquisitions: Strategic acquisitions or mergers within the financial sector
could provide opportunities for Hyundai Electronics to expand its market presence,
capabilities, or customer base.

Threats:

1. Regulatory Changes: Changes in financial regulations or accounting standards could

increase compliance costs, operational complexity, or legal risks for Hyundai Electronics.
2. Competition: Intense competition from established financial institutions, technology
companies, or new market entrants could pressure margins, market share, or pricing
within the finance sector.
3. Market Volatility: Fluctuations in financial markets, interest rates, or exchange rates
could impact Hyundai Electronics' financial performance, investment returns, or funding
costs.
4. Cybersecurity Risks: Increasing cyber threats and data breaches pose risks to financial
systems, customer data, and the company's reputation, requiring robust cybersecurity
measures and investments.
5. Global Economic Uncertainty: Economic uncertainties such as recessions, trade
tensions, or geopolitical events could disrupt financial markets, consumer confidence,
and business operations, affecting Hyundai Electronics' financial performance and
stability.
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FINDINGS AND SUGGESATION

1. Enhance Financial Reporting Transparency:
o Ensure accurate and transparent financial reporting to build trust with investors,
regulators, and other stakeholders.
o Implement robust internal controls and governance frameworks to mitigate the
risk of financial misstatements or irregularities.
o Provide clear and comprehensive disclosures in financial statements to enable
stakeholders to make informed decisions.
o
2. Optimize Working Capital Management:
o Improve working capital efficiency by optimizing inventory levels, streamlining
accounts receivable and accounts payable processes, and minimizing cash
conversion cycles.
o Implement cash flow forecasting and liquidity management strategies to maintain
adequate liquidity levels to meet short-term obligations and capitalize on
investment opportunities.
o
3. Mitigate Financial Risks:
o Identify and assess financial risks such as interest rate risk, currency risk, credit
risk, and market risk.
o Develop risk management strategies and hedging techniques to mitigate exposure
to adverse financial market conditions.
o Regularly monitor and review risk exposures and adjust risk management
strategies accordingly.
o
4. Invest in Financial Technology (FinTech):
o Embrace financial technology solutions to enhance operational efficiency,
automate manual processes, and improve customer experience.
o Explore opportunities to leverage blockchain, artificial intelligence, and data
analytics to optimize financial operations, detect fraud, and provide personalized
financial services.
o
5. Diversify Funding Sources:
o Diversify funding sources to reduce dependency on any single funding channel
and mitigate funding risks.
o Explore alternative financing options such as debt capital markets, equity
financing, venture capital, or strategic partnerships to access capital and support
growth initiatives.
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6. Strengthen Investor Relations:

o Foster open and transparent communication with investors, analysts, and financial
stakeholders to articulate the company's financial performance, strategy, and
outlook.
o Provide regular updates and engagement opportunities through investor
presentations, conference calls, annual reports, and investor conferences.
o
7. Focus on Sustainable Finance Practices:
o Integrate environmental, social, and governance (ESG) considerations into
financial decision-making processes to promote sustainability and long-term value
creation.
o Align financing activities with sustainable development goals and industry best
practices to enhance corporate reputation and resilience in a rapidly evolving
global landscape.
o
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CASE STUDY

Title: Enhancing Financial Risk Management at Hyundai Electronics

Background: Hyundai Electronics, a global leader in consumer electronics manufacturing, is

facing increasing financial risks due to volatile currency markets. Fluctuations in exchange rates
have the potential to impact the company's profitability, cash flow, and competitiveness in
international markets.

Challenge: The finance department at Hyundai Electronics needs to develop a comprehensive

financial risk management strategy to mitigate exposure to currency risk and ensure the company's
financial stability and resilience in the face of uncertain market conditions.

Case Study Scenario: Hyundai Electronics' finance team conducts a thorough assessment of the
company's currency risk exposure and identifies several key areas of concern:

1. Import/Export Transactions: The company imports raw materials and components from
various countries and exports finished products to global markets. Fluctuations in exchange
rates can affect the cost of imports and the competitiveness of exported products.
2. Foreign Currency Borrowings: Hyundai Electronics has outstanding foreign currency-
denominated loans used to finance operational activities and capital investments. Currency
fluctuations could increase debt servicing costs and financial vulnerability.
3. International Sales and Revenue: The company generates a significant portion of its
revenue from international sales. Currency depreciation in key export markets may reduce
revenue and profit margins when converted into the company's reporting currency.

Proposed Solutions: The finance department collaborates with cross-functional teams to develop
and implement a comprehensive financial risk management plan:

1. Currency Hedging Strategies:

o Evaluate different hedging instruments such as forward contracts, options, and
swaps to mitigate currency risk exposure in import/export transactions and foreign
currency borrowings.
o Implement a hedging policy specifying the use of hedging instruments based on
predetermined risk tolerance levels and market conditions.
2. Revenue Diversification:
o Explore opportunities to diversify revenue streams by expanding into new markets
with stable currencies or increasing sales in regions less affected by currency
volatility.
o Offer localized pricing strategies or currency hedged pricing to minimize the impact
of exchange rate fluctuations on international sales.
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3. Cost Management and Efficiency Measures:

o Implement cost-saving initiatives to reduce reliance on imported materials and
components, such as sourcing from local suppliers or optimizing supply chain
logistics.
o Enhance operational efficiency and productivity to mitigate the impact of currency
depreciation on production costs and maintain competitive pricing.
4. Financial Analysis and Reporting:
o Enhance financial modeling and scenario analysis capabilities to assess the
potential impact of currency movements on cash flow, profitability, and financial
ratios.
o Provide regular financial risk reports and updates to senior management and the
board of directors to facilitate informed decision-making and strategic planning.

Outcome: By proactively managing currency risk exposure and implementing robust financial
risk management strategies, Hyundai Electronics strengthens its financial resilience and stability.
The finance department's efforts contribute to maintaining profitability, preserving cash flow, and
safeguarding shareholder value amid volatile currency markets. Additionally, the company
enhances its competitiveness and ability to capitalize on global growth opportunities with greater
confidence and certainty.

This case study illustrates how Hyundai Electronics' finance department can address financial
challenges and opportunities through strategic planning, collaboration, and innovative risk
management practices.

Continuous Learning and Development:

o Invest in training and development programs to equip finance professionals with

the latest industry knowledge, technical skills, and regulatory expertise.
o Foster a culture of innovation and continuous improvement to adapt to changing
market dynamics and emerging financial trends effectively.
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BIBLIOGRAPHY

 Books:
1. Hyundai Electronics: The Rise of a Global Giant by Ki-Jung Lee (2015)
2. Inside Hyundai Electronics: Innovation and Success in the Global
Electronics Industry by David C. Teece and Sungwook Nam (2008)
3. The Hyundai Electronics Story: Lessons in Global Innovation by
Sungwook Nam (2006)
 Journal articles:
1. "Hyundai Electronics: A Case Study of Global Innovation" by Sungwook
Nam and David C. Teece, Journal of East Asian Studies 15, no. 3 (2005):
409-438.
2. "The Role of Government in the Success of Hyundai Electronics" by Ji-
hong Park, Asian Economic Policy Review 2, no. 1 (2007): 1-26.
3. "Hyundai Electronics' Global Strategy for Innovation" by Se-Wook
Lee, Technology Analysis & Strategic Management 18, no. 9 (2006):
1051-1072.
 Websites:
1. Hyundai Electronics official website: https://www.hyundai-
electronics.pl/
2. Hyundai Electronics Global Innovation
Center: https://hyundaiquocviet.com/gioi-thieu-cong-ty/
3. Hyundai Electronics
Newsroom: https://www.hyundainews.com/releases

These are just a few examples of the many sources available on Hyundai
Electronics. I recommend that you consult the library at your university or local
public library for more information