Evaluating strategic management inside Honda Motors

Evaluating strategical management inside Honda MotorsHonda is a Japan- based cable cars go with. It is a well known association for the returnion of cars and motorcycles. Honda automobile company offers mixed varieties of vehicles, ranging from compact, can efficient cars to SUVs, minivans and trucks. It is one of the top automobile manufacturers in the b all told and is well known for producing affordable and reliable forms of transportation.This report contains a comprehensive examination study of Honda automobiles. It looks at the current strategies of Honda automobiles, that how they put their strategies to implement their objectives. The main tendency of the report is to analyze the harvest-tideion line Honda automobiles and how they contend with their competitors.2.0 ObjectivesTo look into into the current strategic position of Honda motors.To critical analyze the external and internal environment of Honda motors.To invent a selection of strategic option utilisin g the internal and external psychoanalysis3.0 Company OverviewIn the global trade scenario, Honda is the creative activitys largest engine manufacturer and market leader in Automobile. Honda has been operating 120 manufacturing facilities in 29 countries and employs 167,231 plenty widely distri simplyed. Honda has expanded in main markets following years i.e. In 1959 Honda establish its first overseas subsidiary, American Honda Motor Co. Ltd, 1964 Honda established its first Asian subsidiary in Thailand, Asian Honda Motor Co., Ltd. 1965 Honda (U.K.) Limited established in London (the first market of Honda in, Europe) 1971 Honda Motor does Brazil Ltd. established in Sao Paulo (presently Honda South America Ltda.)The key point lead to Hondas success is the regular novelty that was found by Mr. Honda as a basis. In todays automobiles world Honda is a largest manufacturer of motorcycle and it stands at a 9 largest automobile manufacturer in he world. The market sh atomic number 18 of Honda until now is 10.2 percentage and it is ranked as No.5 in UK (the most particular/fastidious market). In United Kingdom, North America and Asias automobile industries, Honda Company becomes a expert force in the motorcycle sector.3.1 Mission and VisionMISSIONMaintaining a global view point and we atomic number 18 dedicated to supplying results of the highest quality, to that degree at a reasonable expenditure for worldwide node satisfaction. romanceStriving to be a company society fatalitys to exist.The main cerebrate of Honda is on the developing a technologies and crossways in the both areas, electro-motive technology and motorcycles to take a shit breakthrough for the future.3.2 schema of Honda Motors3.2.1Enterprise dodgeHonda wants to charter its operation in worldwide to supply the highest quality of crossways at a reasonable price, with a committal of consumer satisfaction. With untried challenges in pursuit of quality, technology and initiative, H onda is pursuing their vision by striving a company society who wants to exist through creating the new value, globalization and commitment for the future. Moreover, Honda wants to take new challenges with the pursuit of Initiative, Technology and Quality.3.2.2 bodied StrategyHondas portfolio includes three agate linees Automobiles clientele, Motorcycles business, Power business. Even though stepping into Automobile fabrication rather late at 1963, Honda quickly leads the assiduity with characteristics like transcendent fuel economy, optimum safety, and driving pleasure. Hondas gross sales and intersection in this indus outsmart word prove successful steadily not just in U.S. but also in many regions worldwide.Mean magic spell, motorcycle business is the first business of Honda, from 1963 with the event of the first overseas plant in Belgium, Honda has devoted in one basic rule build products pixilated to the client. Now Honda has its question and Development operations i n many countries like U.K, U.S, Italy, China, Germany, Thailand and India. In the future they will shit a very promising and potential Honda.3.2.3Business StrategyRD is sharpening the business advantage of Honda, together with the fierce competition between Honda and competitors, and they all define the business strategy of Honda. One of the proudest things rough Honda is its RD system. With the systematic counselling of approaching, focus on dur skill, reliability and basic performance to establish a creative and innovative technical foundation. With the wisely approach to the future, the Honda products do aid about the economical, environmental, and social issues. Honda keeping involving in the research and reading that proceeds people in the future through leading-edge technology and commitment to innovation that opens up new possibilities in mobility.With The Joy of Selling- The dealership of Honda is also one of its strengths. Through creating products and services that provide the core values that make Honda unique, the Hondas associates just about the world keep creating such inspiring experience for its customer.3.2.4 Operational StrategyHonda operates in the worldwide market with 134 production facilities in 28 countries and at 31 RD facilities in 15 countries, about 167000 Honda employees and associates serve 23 million customers worldwide annually. Hondas global operations are divided into 6 administrative regions responsible for operating. Hiring and engaging the people and philanthropic initiatives locally in the communities that Honda operates. Honda is energy the independence of their local management and sales operations, at the same cartridge holder with integrating and forward-looking plan for each region. They operate under the expatriate guidelines that help member companies and associates in evaluating and managing risks, complying with laws and regularisations, keeping a high aim of transparency in operational level, thats all to maximize the worldwide customer satisfaction.3.2.5 The Individual StrategyThis strategy reflects the Hondas values the three gladdens. That is The joy of buying, the joy of selling and the joy of producing. The individual(a) strategy of Honda is reflected through the Hondas philosophy The trinity Joy-The Joy of buying, the joy of selling, and the joy of producing. With the joy of buying, the Hondas associates must try their best to exceed the customers expectation. Meanwhile, with the joy of selling, which reside not scarcely about the relationship between the dealers and their customers, but they also feel the pride of having a positive relationship with their customers. And the last one, the joy of producing comes from manufacturing, research and development by producing quality products that satisfy customers worldwide, the Hondas employees can experience pride in prodigious the expectation of their customers. That all bring the strategies of Honda from their enter prise level, through corporation, business, operational level, to individual strategy level, that spread the Hondas strategic spirit throughout the company.3.3 GLOBAL OPERTION AND mart PLACEIn 2009, Honda able to create their products nighs to the customers. Honda delivered 23 million units to the customer round the six different regions worldwide. Honda always conscious about its operations, that they do not have any impact on the environment. In concern with all these things, Honda started turn tailing on the environmental stability around the world.4.0 mart Analysis4.1 SWOT AnalysisSTRENGTHSProducing high quality of productsHaving the Pioneer engineering science in hybrid technologyBuild products which are always close to the customer.WEAKNESSESIn non luxury vehicles, prices are much higher(prenominal) as coincidence to other automobile companies.Do not have a sinewy offering in a truck line.Product are pretty brand and inoffensive in terms of styling.OPPURTUNITIESCompany have to relieve oneself on work on the low emission vehicles and other election power sources.An offering in a truck line business would be profitable, beca mathematical function these kinds of vehicles have the highest profit margin among anyone else.THREATS- Changes in the government rules and regulation- Credit crunch4.2 Competitive AdvantageHonda posses a large subject of advantages in the automobile fabrication that makes it the most running brand in the market among a large number of consumers.ReliabilityHondas effort towards the building up of its quality has maintained its top position in the market. Its product quality can be easily tested from the fact that a large number of older Honda automobiles are still running fine on the roads.Fuel efficiencyHonda is just not except intention and presenting varied expressive stylels but is most importantly insisting on the fuel efficiency. Honda is the moreover brand that has launched the concept of Hybrid vehicles to save the consumers pocket while enjoying luxury.ValueHonda has been known for its offering a complete product to the customers in terms of value for money whether you go for luxury segment or sports.5.0 External Analysis5.1 PESTEL AnalysisPolitical/ Legal environmentThe mixed government rules and regulation imposed over automobile and power product industries regarding level of pollution, noise pollution, fuel consumption, vehicle emission level norms and nitrogen-bearing substances. This changes from time to time and is made stricter to follow.Economic environmentHondas operations are diversified throughout the globe like Japan, Asia, Europe, North America and so forth A bad impact over a countries economic state of affairs resulting because of various factors like credit crunch, slowing down of economy, market hits cod to recession and rising fuel prices could lead to decrease in a demand of Hondas product.Technological EnvironmentUtilizing the most advanced information technologies, Honda has genuine and innovated itself continuously. The changes in IT lead to almost Hondas operation were controlled more(prenominal) effective.On the production process by using the innovation basals of production and mode of production, like the auto fit machine, Honda can mass product to chasten the cost, save the time and increase the capacityNatural environmentThe more industry develops, the more the environment is negative change. Among the environmental problems, Global warming and Pollution Level are the problems that take the most concern of community. many another(prenominal) Non- government activity Organizations has requested industrial firms to strangle CO2 emission and toxic wastes. So, as to tackle these kinds of problems, Honda is making a continuous effort towards various research and development of new technology and product.6.0 Industry Analysis6.1 Porters vanadium ForcesThe stated five environments above, Porters Five Forces is to analyze the busines s and industries of a company. It encourages the managers and marketers not only to look outside the current competitors but also with their prospective competitors. Moreover, it helps the company to understands what its customers want and control its supplier more effective. Now we utilize the Porters Five Forces to analyze Honda Company.The scourge of substitute productsThat is defined as the existence of close substitute products increases the propensity of customers to switch to alternatives in response to price increases (source from Wikipedia.org). This does mean that when a Hondas competitor can recruit with high performance and economical price rather than Hondas. This product will substitute Hondas product in the market. Hence, simultaneous reducing the market appoint and profit of Honda are the results. For example, the product line of sport motorbike, R6 of Yamaha is the close substitutes of Hondas F4. If Yamaha can achieve an modernism to produce R6 with the impose price against F4, It can in fact replace Hondas F4 on the market because customers have the same prospect with both the two products.The threat of entry of new competitorsThe hypothetical meaning is that in marketing with many existing competitors, the profit of each company will be lower than the maximum level. For example, in American Market the crossbreeding and Honda is uncompromisingly compact together in this market to get the proper attention of the customer. Honda cannot get the upper limit profit in this market because of the policies of American Government protective domestically Company. Moreover, Honda has to spend money on accessing to distribution in American market. Moreover, it also finds difficulties in adopting the culture differences, etc. Those reasons will reduce the Hondas profit level.Rivalry among existing competitorsThe above five characteristics is significant to the automobiles industry to analysis the competitive rivalry. The 3 main rivals that Honda ha s to compete violently are Toyota Motor Corp. (TM), Ford Motor Co. (FM), and General Motor (GM). However the changes in the approach of one of those competitors will be influences on the performance of Honda. Honda as well as its three rivals always keeps on innovating, improving, researching and developing to compete effectively in this auto industry. For example, whenever one of these four company releases a new sample, the others will catch up and have similar products to compete. care when Honda just comes with a new technology that is FCX CLARITY, the fuel cell vehicle in the next generation, GM Motors come with a Chevy equinox SUV and put their fuel cell platform into it.A well-known forge of Honda, Accord, has been challenging with its chief rival, Toyota Camry since its first appearance. Since Accord was released in the market in 1976, and until 1983, Toyota has launched its sedan i.e. Camry. Since then, these two models have kept on competing with each other. GM Malibu and Ford Fusion are also two models that GM and Ford use to compete with Accord and Camry. For, Toyota, and GM all can replace Honda in this auto industry. So, what Honda has to do is trying to improve its technology, research and development to create a competitive advantage, maybe as a Greenest automakeThe negociate power of customersIn business, if a company wants to exist it must create a good relationship with customers. Honda is a global company, it means Honda have a lot of competitors. So customers will confuse when they make ending for what Brand will be the best choice. It depend not only the famous company but also the price and quality. For example, Honda introduced Air marque Scooter with functions like sport and fashion model, more fuel-efficient engine technology. It quickly attracted the youth the supply was not enough for demand. Then it made the dearth of Air Blade in the market and pushed price higher. Customer want to buy it must order and wait around one to two months. No longer after, Suzuki has utilized maximize the advantage of its competitors to its product. Suzuki introduced new model Hayate Scooter that have the same functions of Air Blade but preparation the amazing price (lower than 23%) and customer can take their product immediately. As a result, many customers change of their mind, therefore the market share of Honda to shrink.The bargaining power of suppliersOne of the factor helps the company competes against with other companies is the ability to reduce the cost. Therefore, suppliers plays an important role to make the companys success. Suppliers may refuse to work with the firm or increasing prices for unique resources. Realizing the serious element, Honda purchases raw material, components and parts, from many external suppliers. Moreover, Honda relies on some main suppliers for the items and raw material that use in the manufacture of it products.There are some key suppliers of Honda in term of Metal Stamping Part Takao Kinzoku Kogyo Co., Ltd Hirata Technical Co., Ltd Hongo Co., Ltd Kikuchi Co., Ltd Marujun Co., Ltd,Among these companies, Kikuchi Co., Ltd deal with not only the supplier of Honda but also Nissans supplier. If Nissan was willing to purchase with higher price or had some benefit promotion than Honda, Honda might be affected on the capacity and increase the cost.7.0 Financial AnalysisAs oppose to fiscal year 2007 there was an increase of 8.3% in the net sales at the end of fiscal year 2008.This increase is fuelled by the higher sales of automobiles business. This was also due to the increase in the power product sales in Asia and from the effect of the foreign currency changes.8.0 Conclusion and RecommendationsThe objectives of the company have been met, and then the strategies of the company that are followed are correlated with business environment and industry.