Defines the strategic management concept in Honda.

2. INTRODUCTION
• HONDA MOTOR COMPANY, Ltd is a Japanese public multinational
corporation primarily known as a manufacturer of automobiles and
motorcycles.
• It was founded on 24 September 1948 by Soichiro Honda and Takeo
Fujisawa and is headquartered in Minato, Tokyo, Japan.
• Takahiro Hachigo is the present CEO of the company.
• World’s largest motorcycle manufacturer since 1959, as well as
world’s largest manufacturer of internal combustion engines.
• Surpassed Nissan in 2001 to become the second largest Japanese
automobile manufacturer.
• Sixth largest automobile manufacturer in the world.

3. PRODUCTS
• Automobiles
• Motorcycles
• Scooters
• ATVs
• Electrical generators
• Lawn And Garden Equipments
• Tillers
• Outboard motors
• Robotics
• Jets
• Jet Engines
• Thin-film solar cells

4. HONDA’S PHILOSPHY
THE THREE JOY’S:
•Joy of buying
•Joy of selling
•Joy of creating

5. BUSINESS OF HONDA
• Automobile Business- leads a good and fast
growing business with special features like-
great fuel economy, flexible safety and
driving satisfaction.
• Motocycle Business- former business of
Honda in 1963- committed to building the
products which was nearer to the purchaser.
• Power Business- started in 1953- expanded
to tillers, movable generators, outboard
engines, power carrier.

6. COMPETITORS
The top 12 Honda Motors
competitors:
1. Chevrolet
2. Toyota Motor Corporation
3. Nissan Motors
4. Hyundai Motors
5. Fiat
6. Mitsubishi Motors
7. Maruti Suzuki
8. Tata Motors
9. Skoda Auto
10. Volkswagen
11. Ford Motor Company
12. Volvo

7. HIERARCHY OF
STRATEGIC INTENT
Vision
“Market leader in the motorcycle industry, emerging as a
global competitive centre of production and exports.”
Mission
“A dynamic growth oriented company through market
leadership, excellence in quality and service and
maximizing export, ensuring attractive returns to equity
holders, rewarding associates according to their ability
and performance, fostering a network of engineers and
researchers ensuing unique contribution to the
development of the industry, customer satisfaction and
protection of the environment by producing emission
friendly green products as a good corporate citizen
fulfilling its social responsibilities in all respects.”

8. STRATEGIC GOALS
• Customers
Our Customers are the reason and the source of our business. It is our joint aim with our dealers to ensure that the customers
enjoy the highest level of satisfaction from use of Honda motorcycles.
• Quality
To ensure that our products and services meet the set standards of excellence.
• Local Manufacturing
To be the industry leader in indigenization of motorcycle parts.
• Technology
To develop and maintain distinct business advantages through continuous induction of improved hard and soft technologies.
• Shareholders
To ensure health and viability of business and thus safeguarding shareholders’ interest by maximizing profit. Payment of regular
satisfactory dividends and adding value to the shares.
• Employees
To enhance and continuously update each member’s capabilities and education and to provide an environment which
encourages practical expression of the individual potential in goal directed team efforts and compensate them attractively
according to their abilities and performance.
• Corporate Citizen
To comply with all Government laws, rules and regulations and to maintain a high standard of ethics in all operations and to act
as a responsible member of the society.

9. PLANS
• Honda aims to develop “level 4” autonomous cars by 2025
• Sets up electric car division to speed up development
• It would boost coordination between R&D, procurement and
manufacturing to tame development costs as it acknowledged it must
look beyond conventional vehicles to survive in an industry which is
moving rapidly into electric and self-driving cars.

12. STRENGHTS
1. 6th largest automobile manufacturer.
2. Excellent branding, advertising and after sales
services.
3. High brand equity.
4. Competence in engine manufacturing.
5. Diversified product portfolio.
WEAKNESSES
1. Intense competition in automobile segments.
2. Dependence on North America to generate most
of the revenue.
3. Low investments in R&D leading to innovative
products.
OPPORTUNITIES
1. Increasing government regulatiions.
2. Improving U.S economy.
3. Timing and frequency of new model releases,
4. Low fuel prices are increasing demand for pickup
trucks and SUVs.
THREATS
1. Increased competition.
2. Rising Japanese Yen exchange rates.
3. Natural disasters.
SWOT
ANALYSIS

13. BUSINESS STRATEGY
• Research & Development- most
significant and proudest thing in Honda-
because it is improving its business.
• Dealership- one of the powers in Honda-
via product creations and services-
providing basic values.
• Honda centres on good customer
relations, user friendly sales and
providing good service.
• Manufacturing and Distribution-
important part in success and
development. Competition is growing
between Honda & other companies is
growing.
OPERATIONAL STRATEGY
• Divided into six administrative regions
for their worldwide operations.
• Creates a major role in approximately in
28 countries with 134 production
facilities and 31 R&D facilities in 15
countries.
COPORATE LEVEL
STRATEGY

16. MERGERS &
ACQUISITIONS
• In past Hero Honda had joint venture with hero group but in
2010 but in 2010 Honda decided to move out of Venture
• Honda Motor Co and Hitachi Ltd agreed to merge four of their
car parts businesses to create a components supplier with
almost $17 billion in sales
• It will allow better access to technology developed by Hitachi’s
automotive arm.

17. COOPERATIVE
STRATEGY
• To be a “company that society wants to exist,” Honda must put into
practice a communication cycle.
• Appropriately and accurately conveying to society the value that it
seeks to provide. Also it engage in dialogue with diverse stakeholders
to grasp and understand the demands and expectations placed
• Translate these into concrete measures and implement them, and
finally listen to stakeholders

18. • Honda considers that stakeholder dialogue is a beneficial tool that
leads to a proper understanding of stakeholders regarding the
Company’s initiatives while also giving the Company an understanding
of changes and risks in the social environment
• Honda engages in dialogues globally through various opportunities.
These dialogues are conducted between key stakeholders (that are
either impacted by Honda’s business activities or whose activities
impact Honda’s business activities)
COOPERATIVE
STRATEGY

19. Passenger Cars - Perceptual MappingUnconventional Aspirational
Peripheral Mainstream
Centrality
Distinctiveness