Case Study- DAEWOOS AGGRESSIVE CORPORATE INVESTMENTS THAT FLEW HIGHER UNTIL IT FELLGROUP 3

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Failure to maintain effective management

Focus more on expanding Daewoo instead of making the business more profitable

Nonstop borrowing of big amount of money without assurance that it can be paid

Problem:

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Daewoo should start to liquidate their company. This will enable them to have enough money to pay their debts. The subsidiaries which have the lowest profitability should be sold first. Also, they should focus more on the subsidiaries which have high profitability.Solution:

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STRENGTHSDiversified businessLarge market share in South Koreas IndustryGlobal presenceSecond biggest conglomerate

WEAKNESSESDiversified businessFocus more on expansion than profitability

SWOT Analysis

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OPPORTUNITIESGovernment support in finding loans

THREATSBanks refused with their loan proposals

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