1. 1 : Company Background Honda Motor Co. , Ltd. operates under the basic principles of “Respect for the Individual” and “The Three Joys” commonly expressed as The Joy of Buying, The Joy of Selling and The Joy of Creating. “Respect for the Individual” reflects our desire to respect the unique character and ability of each individual person, trusting each other as equal partners in order to do our best in every situation.
Based on this, “The Three Joys” expresses our belief and desire that each person working in, or coming into contact with our company, directly or through or products, should share a sense of joy through that experience. In line with these basic principles, since its establishment in 1948, Honda has remained on the leading edge by creating new value and providing products of the highest quality at a reasonable price, for worldwide customer satisfaction. In addition, the Company has conducted its activities with a commitment to protecting the environment and enhancing safety in a mobile society.
The Company has grown to become the world’s largest motorcycle manufacturer and one of the leading automakers. With a global network of 466* subsidiaries and affiliates accounted for under the equity method, Honda develops, manufactures and markets a wide variety of products, ranging from small general-purpose engines and scooters to specialty sports cars, to earn the Company an outstanding reputation from customers worldwide. 2. 0 : Environmental Analysis for Honda 2. 1 : Mission Statement Definition :
A mission statement is a formal short written statement of the purpose of the company or organization. The mission statement should guide the actions of the organization, spell out its overall goal, provide a sense of direction, and guide decision-making. It provide “the framework or context within which the company strategies are formulated. Mission statement often contain the following criteria : * Purpose and aim of the organization. * The organization primary stakeholders (Client, Stockholders and etc.
) * Responsibilities of the organization towards these stakeholders. * Product and Services offered, Honda Mission Statement “Maintaining a global viewpoint, we are dedicated to supplying products of the highest quality, yet at a reasonable price for worldwide customer satisfaction”. 2. 2 : Vision Statement Definition : A Vision statement outlines what the organization wants to be, or how it wants the world in which it operates to be. It Concentrates on the future. It is a source of inspiration. It provides clear decision-making criteria. Honda Vision Statement
“Focusing on “satisfaction” (Customers, associates and shareholders) with challenging spirit and flexibility, we are dedicated to supplying latest generation cars with advanced technology, greater fuel efficiency and competitive prices, along with friendly and efficient after sales back up, maintaining “quality” as core of all activities”. 2. 3 : Goals After an organization has analyzed its external opportunities and threats as well as internal strength and weaknesses and has defined its mission and vision, they can now establish goals for further its mission.
The purpose of setting such goals is to formalize statement about what organization hopes to achieve in the medium to long term period for example within the next three years. Honda Goals “Honda’s primary goals are originality, innovation and efficiency, resulting in high quality products at affordable price, and environment friendly”. 2. 4 : Strategies In order to achieve their mission and vision, Honda has developed several strategies in general which include of : 2. 4. 1 :
Corporate Strategy Honda‘s portfolio includes three businesses include Automobiles business, Motorcycles business and Power business.
Even though stepping into Automobile industry rather late at 1963, Honda quickly leads the industry with characteristics like superior fuel economy, optimum safety, and driving pleasure. Honda‘s sales and production in this industry prove successful steadily not just in U. S. but also in many regions worldwide. Meanwhile, 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 which is build products close to the customer.
Honda has operated successfully in 28 motorcycle plant in 21 countries, as well as Honda R&D operations in the U. S. , UK, Italy, China, Germany, Thailand, and India. 2. 4. 2 : Business Strategy Research and Development (R&D) 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 about Honda is its R&D system. With the systematic way of approaching, focus on durability, reliability and basic performance to establish a creative and innovative technical foundation.
With the wisely approach to the future, the Honda products do care about the economical, environmental, and social issues . This leads to a increase steady in American and Europe recently meanwhile the whole industry is going down by some external factors such as U. S. D. depreciation, Oil price raising, political recession. Honda is keeping involving in the research and development that benefit people in the future through leading-edge technology and commitment to innovation that opens up new possibilities in mobility.
2. 4. 3 : Operational Strategy
Honda operates in the worldwide market with 134 production facilities in 28 countries and at 31 R&D facilities in 15 countries, about 167000 Honda employees and associates serve 23 million customers worldwide annually. Honda‘s 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 pushing the independence of their local management and sales operations, at the same time with integrating and forward-looking plan for each region.
They operate under the conduct guidelines that help member companies and associates in evaluating and managing risks, complying with laws and regulations, keeping a high level of transparency in operational level, that‘s all to maximize the worldwide customer satisfaction. 2. 4. 4 : The Individual Strategy The individual strategy of Honda is reflected through the Honda‘s philosophy which is known as “The Three Joy”. The Joy of buying, the joy of selling, and the joy of producing.
With the joy of buying, the Honda‘s associates must try their best to exceed the customers‘ expectation. Meanwhile, with the joy of selling, which concern not only 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 Honda‘s employees can experience pride in exceeding the expectation of their customers.
3. 0 : SWOT Analysis 3. 1 : Strengths * Honda is the sixth largest automobile manufacturer in the world selling cars in over a 100 countries. * Excellent branding, advertising and after sales servicing. * Honda has over 180,000 employee globally. * Production system that is refined over the years along with high and powerful research and development (R&D). * High brand equity and brand loyalty among customers. * Strong presence in motorsport like F1 * Eco-friendly Honda Prius enhanced brand image. 3. 2 : Weaknesses
* Cost structures of Honda is very high as compare to other automobile manufacturers. * Caters to only the upper middle segment which limits the customer base. * Honda has to recall a few of their models for corrective measures which caused a lot of hue and cry. 3. 3 : Opportunities * Developing of hybrid cars and fuel efficient cars for the future. * Tapping emerging markets across the world and building a global brand. * Fast growing automobile market. 3. 4 : Threat * Government policies for the automobile sector across the world.
* The increasing of fuel prices. * Intense competition from global automobile brands. References Website : http://world. honda. com/profile/overview/ http://world. honda. com/profile/philosophy/ http://www. ukessays. com/essays/business/hondas-primary-goals-are-originality-innovation-and-efficiency-business-essay. php http://www. authorstream. com/Presentation/mukkubudhori-1572475-swot-analysisof-honda/ http://www. wikiswot. com/SWOT/4_/HONDA. html Books : Performance Management, Herman Aguinis, Third Edition, Pearson.