PART [II - Case Study General Motors {GM} and Daewoo motors entered a Joint "Venture (JV) in [9315 to manufacture a car in Korea for sales in the US, based on GM's design, which was considered the best product that could be offered by lI'.'-iermany, Korea, and the US- From this venture, GM and Daewoo had different expectations and goals. Glut wanted Korea's low-wage workforce to build a low-cost car to compete for the with the Japanese car industry, whereas, Dacwoo's goals were to become a major car manufacturing company that wanted to go globally. The mutual ear created by Daewoo and GM did not bring success for either company so they decided to renegotiate their strategies and goals. The issue for hoth companies was that sales had dropped from 39% to 15%, and GM and Dsewoo were not pleased with their performance in Korea and America. l[ill-Ii and Daewoo did not meet their expectations, because to build a stateless or multinational car was harder than they thought. Neither party fully assessed and understood the other's strengths and weaknesses, neither did they understand the other's corporate culture. Git-1's methodical extended decision making did not suit well Daewoo, where decisions were made quickly to respond to the market conditions. The unexpected changes in the market conditions could have been managed if GM and Daewoo would have worked toward presenting the potemial shortfalls, cooperating, and sharing their market assumptions in the car industry, as well their strategies on how to keep up with their competitors. The GM and Daewoo's JV shortfalls were attributed to endogenous and exogenous factors that had a negative inuence on the JV- Fit the endogenous level, both companies had poor cooperation, for instance, GM retsed Daewoo's request to manufacture newer car models to keep up with the rivals that were introducing the cars wit new technology in the market- From the exogenous point ot'yiew, the market conditions in Korea changed, the Korean Won rose higher than the US dollar which leads to a prospered country, higher wages, and a decrease in the low-cost export base. GM and Daewoo blamed each other without assessing the factors that influenced their alliance, and surely automakers should learn from this JV that they should look at the basic qualities of the chosen company for a W and then create a J's" or alliance- l. in your own words explain why GM and Daewoe Joint Venture was a failure? 2- What GM and Daewoo should have done for this alliance to have success