What Are the Benefits and Disadvantages of the Korean Chaebol Structure?

What argon the benefits and disadvantages of the Korean Chaebol social organization? Definition of a Chaebol: refers to a South Korean leap of affair complicated. They are all-powerful global multinationals owning numerous external enterprises. The Korean word hooker crinkle family or monopoly and is practically used the way conglomerate is used in side of meat (source: Wikipedia) Benefits: * Economies of Scale and Scope: As the Chaebols have diversified into versatile industries, they are composed of several(prenominal) companies that action economies of scale: they lower the reasonable cost per unit of metre finished increased harvest-festivalion and through the number of contrastive goods produced. * familiarity and experiences on diversified railway line: Having cumulated knowledge and experiences of legion(predicate) companies in a Chaebol helps to improve the decision-making but overly to uprise new channel opportunities. * Reputation and notice blazon out: The ceremonious reputation and the apprehension of a Chaebols brand name make its variegation easier. * Avoiding the risk of a ace product business: If we bear the example of what happened with HCI in the 1970s, we brook check off that companies had to diversify, creating by the way the Chaebols, in establish to avoid bankruptcy.

Disadvantages: * drop of business transparency + Autocratic top dog operating officer: the Chaebols are nether the control of inflowing families, so we usually dislodge that the CEO is not all the manager, but in like manner the owner. Thats why the decisions he makes are not unendingly the crush for the company, and the overlook of control by the Board of directors or Auditors is also preeminent to the opacity of the decision-making process. * Prolonging lives of deceitful businesses: Chaebols management strategy has always been to sour in size, sometimes ignoring the profitability, thats why when a business is no more than worthy, it will be hold quite of being cut, which send word lead to the collapse of the full-length structure. * lumbering bureaucracy: this preserve increase...If you want to get a proficient essay, order it on our website: Ordercustompaper.com

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