Honda Motor Company Analysis Paper

Honda Motor Company Ltd. is a Japanese public multinational corporation primarily known as a manufacturer of automobiles and motorcycles. Honda has been the world’s largest motorcycle manufacturer since 1959, as well as the world’s largest manufacturer of internal combustion engines measured by volume, producing more than 14 million internal combustion engines each year. Honda surpassed Nissan in 2001 to become the second-largest Japanese automobile manufacturer.

As of August 2008, Honda surpassed Chrysler as the fourth largest automobile manufacturer in the United States. Honda was the seventh largest automobile manufacturer in the world behind Toyota, General Motors, Volkswagen AG, Hyundai Motor Group, Ford, and Nissan in 2010. Honda was the first Japanese automobile manufacturer to release a dedicated luxury brand, Acura, in 1986. Aside from their core automobile and motorcycle businesses, Honda also manufactures garden equipment, marine engines, personal watercraft and power generators, amongst others.

Since 1986, Honda has been involved with artificial intelligence/robotics research and released their ASIMO robot in 2000. They have also ventured into aerospace with the establishment of GE Honda Aero Engines in 2004 and the Honda HA-420 HondaJet, scheduled released in 2012. Honda invests about 5% of its revenues in research and development. History From a young age, Honda’s founder, (17 November 1906 – 5 August 1991) had an interest in automobiles. He worked as a mechanic at the Art Shokai garage, where he tuned cars and entered them in races.

In 1937, with financing from an acquaintance, Kato Shichiro, Honda founded Tokai Seiki (Eastern Sea Precision Machine Company) to make piston rings working out of the Art Shokai garage. After initial failures, Tokai Seiki won a contract to supply piston rings to Toyota, but lost the contract due to the poor quality of their products. After attending engineering school, without graduating, and visiting factories around Japan to better understand Toyota’s quality control processes, Honda was able, by 1941, to mass produce piston rings acceptable to Toyota, using an automated process that could employ even unskilled wartime laborers.

Tokai Seiki was placed under control of the Ministry of Commerce and Industry (called the Ministry of Munitions after 1943) at the start of World War II, and Soichiro Honda was demoted from president to senior managing director after Toyota took a 40% stake in the company. Honda also aided the war effort by assisting other companies in automating the production of military aircraft propellers. The relationships Honda cultivated with personnel at Toyota, Nakajima Aircraft Company and the Imperial Japanese Navy would be instrumental in the postwar period.

A US B-29 bomber attack destroyed Tokai Seiki’s Yamashita plant in 1944, and the Itawa plant collapsed in the 1945 Mikawa earthquake, and Soichiro Honda sold the salvageable remains of the company to Toyota after the war for ? 450,000, and used the proceeds to found the Honda Technical Research Institute in October 1946. With a staff of 12 men working in a 172-square-foot (16. 0 m2) shack, they built and sold improvised motorized bicycles, using a supply of 500 two-stroke 50 cc Tohatsu war surplus radio generator engines.

When the engines ran out, Honda began building their own copy of the Tohatsu engine, and supplying these to customers to attach their bicycles. This was the Honda Model A, nicknamed the Bata Bata for the sound the engine made. The first complete motorcycle, both frame and engine, and made by Honda was the 1949 Model D, the first Honda to go by the name Dream. Honda Motor Company grew in a short time to become the world’s largest manufacturer of motorcycles by 1964. The first production automobile from Honda was the T360 mini pick-up truck, which went on sale in August 1963.

Powered by a small 356 cc straight-4 gasoline engine, it was classified under the cheaper Kei car tax bracket. The first production car from Honda was the S500 sports car, which followed the T360 into production in October 1963. Its chain driven rear wheels points to Honda’s motorcycle origins. Over the next few decades, Honda worked to expand its product line and expanded operations and exports to numerous countries around the world. In 1986, Honda introduced the successful Acura brand to the American market in an attempt to gain ground in the luxury vehicle market.

Honda in 1991 introduced the Honda NSX supercar, the first all-aluminum monocoque vehicle that incorporated a mid-engine V6 with variable-valve timing. Later, 1995 gave rise to the Honda Aircraft Company with the goal of producing jet aircraft under Honda’s name. Company Perspectives Vision Honda is a company built on dreams. And these dreams inspire Honda to create innovative products that enhance human mobility and benefit society. Honda see “The Power of Dreams” as a way of thinking that guides the company and inspires it to move forward.

The strength of Honda company comes from this philosophy—based on the visionary principles of the Honda founder, Soichiro Honda. Mission Maintaining a global viewpoint, we are dedicated to supplying products of the highest quality, yet at a reasonable price for worldwide customer satisfaction. ’ Dreams inspire us to create innovative products that enhance mobility and benefit society. Furthermore, as a socially responsible corporate citizen, we strive to address important environmental and safety issues as we focus all our abilities on being a company that society wants to exist.

Value The driving force behind Honda’s growth was the leadership of its founders, Soichiro Honda and Takeo Fujisawa. The most valuable asset they gave us is the Honda Philosophy. Although written in the 1950’s, it still forms the basis of associates’ actions on a daily basis throughout Honda’s worldwide operations. At the foundation of the Honda Philosophy are two fundamental beliefs: – Respect for the Individual. This calls on each associate to nurture and promote individual differences and to trust their colleagues as equal partners.

Honda aims to cultivate these qualities so that people’s differences are respected and trust is developed on an equal basis. A human being is born as a unique individual with the capacity to think, reason and create – and the ability to dream. – Initiative. We encourage creativity and freedom of thought. This provides the right environment to create the best products. – Equality. We celebrate differences and are committed to creating equal opportunities for every associate. – Trust. We believe that when everyone embraces the philosophy, we will do what is best for the customer, each other and the company.

– The Three Joys. Our goal is to provide joy through our business. Anyone coming into contact with our company or our products should have a sense of joy through experience. – The Joy of Buying. We will create pride of ownership in our products and services by exceeding customers’ expectations. – The Joy of Selling. We take satisfaction in making customers happy – and take pride-representing Honda. – The Joy of Creating. We believe in providing a quality product to our customers every time. Volvo

Volvo is a Swedish manufacturer of trucks, buses and construction equipment, and a former manufacturer of cars. Volvo also supplies marine and industrial drive systems, and financial services. Although Volvo was incorporated in 1915 as a subsidiary of AB SKF, a Swedish ball bearing manufacturer, the auto manufacturer considers itself officially founded on 14 April 1927, when the first car, the Volvo OV 4 series, affectionately known as “Jakob”, rolled out of the factory in Hisingen, Gothenburg. Volvo means “I roll” in Latin, conjugated from “volvere”, in relation to ball bearing.

The name Volvo was originally registered in May 1911 as a separate company within SKF AB and as a registered trademark with the intention to be used for a special series of ball bearing, but this idea was only used for a short period of time and SKF decided to use “SKF” as the trademark for all its bearing products. In 1924, Assar Gabrielsson, a SKF Sales Manager, and Engineer Gustav Larson, the two founders, decided to start construction of a Swedish car. Their vision was to build cars that could withstand the rigors of Sweden’s rough roads and cold temperatures. This has become a trademark feature of Volvo products ever since.

The company AB Volvo had no activities until 10 August 1926, after one year of preparations involving the production of ten prototypes, was set up to carry out the car-manufacturing business within the SKF group. AB Volvo was introduced at the Stockholm stock exchange in 1935 and SKF then decided to sell its shares in the company. Volvo was delisted from NASDAQ in June 2007, but remains listed on the Stockholm exchange. In 1999, Volvo sold its car division Volvo Cars to Ford Motor Company for $6. 45 billion. The Volvo trademark was shared between AB Volvo, where it is used on heavy vehicles, and the unit of Ford, where it was used on cars.

Volvo stopped posting profits in 2005 and in 2008, Ford decided to sell its interest in Volvo Cars; in August 2010, Ford completed its sale of Volvo to the parent of Chinese motor manufacturer Geely Automobile for $1. 8 billion. History The Volvo Group has its origin in 1927 when the first Volvo car rolled off the production line at the factory in Gothenburg. Only 280 cars were built that year. The first truck, the “Series 1”, debuted in January 1928, as an immediate success and attracted attention outside the country.

In 1930, Volvo sold 639 cars,[8] and the export of trucks to Europe started soon after; the cars did not become well-known outside Sweden until after World War II. Marine engines have been part of the Group almost as long as trucks. Pentaverken, founded in 1907, was acquired in 1935. As early as 1929, however, the U-21 outboard engine was introduced. Manufacturing continued until 1962. The first bus, named B1, was launched in 1934, and aircraft engines were added to the growing range of products at the beginning of the 1940s.

In 1963, Volvo opened the Volvo Halifax Assembly plant, the first assembly plant in the company’s history outside of Sweden in Halifax, Canada. On 28 January 1999, Volvo Group sold its business area Volvo Car Corporation to the Ford Motor Company for US$6. 45 billion, with the resulting group largely set on commercial vehicles. A decade later, in 2010, Ford sold Volvo Cars to China’s Zhejiang Geely Holding Group. On 2 January 2001, Renault Vehicules Industriels (which included Mack Trucks, but not Renault’s stake in Irisbus) was sold to Volvo, which renamed it Renault Trucks in 2002.

As a result, former mother company Renault is AB Volvo’s biggest shareholder with a 20% stake (in shares and voting rights). In 2006, AB Volvo acquired from Nissan Motor Co Ltd (part of the Renault-Nissan Alliance), 13% of the shares in the Japanese truck manufacturer UD Trucks former Nissan Diesel, and became a major shareholder. In 2007, the Volvo Group took complete ownership of Nissan Diesel to extend its presence in the Asian Pacific market. In the last ten years, the company has undergone rapid growth in the service area with, for example, financial solutions supporting the sales of the manufacturing business units.

Company Perspectives Vision The Volvo Group’s vision is to be valued as the world’s leading supplier of commercial transport solutions. Mission By creating value for our customers, we create value for our shareholders. We use our expertise to create transport-related products and services of superior quality, safety and environmental care for demanding customers in selected segments. We work with energy, passion and respect for the individual. Value The Volvo Group views its corporate culture as a unique asset, since it is difficult for competitors to copy.

By applying and strengthening the expertise and culture we have built up over the years, we can achieve our vision. Quality, safety and environmental care are the values that form the Volvo Group’s common base and are important components of our corporate culture. The values have a long tradition and permeate our organization, our products and our way of working. Our goal is to maintain a leading position in these areas. Similarity 1. Industry Both Honda and Volvo produce final goods, which is products that are purchased for consumption by the consumer.

Final goods are the end result of production and manufacturing and are what a consumer will buy from the store. The “automotive industry” designs, develops, manufactures, markets, and sells motor vehicles, and it is one of the world’s most important economic sectors. 2. Sustainability Both Honda Company and Volvo do care in the environment. There are Sustainability program provided. * Honda Company The products that Honda produces and distributes have an impact on the environment and safety. That is why the company wants to ensure that the influence on the environment and health caused by use and production remains

limited. Honda must also take care to ensure that all activities take place safely. Every entity within the Honda family is encouraged to keep alert that they do. Honda, itself, wants to fulfill that assignment conscientiously. Only then will they be able to count on a successful future. That is why Honda does everything it can to protect the environment against the effects of its logistic operations. And to ensure the health, safety, and wellness of its employees, visitors and contractors. The company ensures that all social, civic, and legal obligations are met. Honda also try to continuously improve the situation.

To ensure that the effects of its activities are in accordance with the applicable legal environmental and safety regulations, Honda has set up a care system that meets the requirements of the European Order in respect of ISO 14001, EMAS and OHSAS 18001. * Volvo The challenge for commercial transports today is to constantly reduce the environmental impact of products and production, and continuously look for more efficient solutions. By introducing safe and efficient transport solutions and developing alternative solutions, Volvo Group strives to reduce the environmental impact of the use of their products.

At the same time, Volvo is tackling the challenge from a broader perspective. They take environmental impact into account at all stages of the product lifecycle – from the first sketches on the drawing board, throughout its service life until it is recycled. Environmental care is a corporate core value in Volvo Group. Their long-term vision for their production is to become carbon dioxide neutral. 3. Social Media Honda and Volvo use social network as media tools to promote and advertise their products and services. These social networks are effective media in advertising their brand. – Honda Website : http://www. honda.

com Facebook : http://www. facebook. com/Honda Twitter : https://twitter. com/Honda Blog : http://www. bloghonda. com Google+ : https://plus. google. com/+Honda Youtube : http://www. youtube. com/user/Honda – Volvo Website : http://www. volvocars. com/Pages/default. aspx Online Customer Service : https://www. securedcontact. com/contactus/ContactUs? lang=EN&brand=VCF&region=US Facebook : http://www. facebook. com/Volvo? v=app_6009294086 Twitter : https://twitter. com/volvocarsglobal Blog : http://www. volvoblog. us Google+ : https://plus. google. com/+VolvoCars Youtube : http://www. youtube. com/user/VolvoCarsNews

References http://www. hondamanufacturing. co. uk/ethics-values/ http://world. honda. com/profile/philosophy/ http://retailindustry. about. com/od/retailbestpractices/ig/Company-Mission-Statements/Honda-Company-Mission-Statement. htm http://en. wikipedia. org/wiki/Honda http://en. wikipedia. org/wiki/Volvo http://www. volvocars. com/Pages/default. aspx http://www3. volvo. com/investors/finrep/ar06/eng/fundamentalvalues/pops/printable/6_vision_mission. pdf? http://www. howdyhonda. com/blog/category/sustainability/? http://www. volvoce. com/constructionequipment/corporate/en-gb/environment/pages/environment. aspx?