1. UNIVERSITY OF
JAMMU
NAME : DHEERAJ SINGH ANDOTRA
ROLL NO. : 0002MBIB21
SUB. TITTLE : INTERNATIONAL HUMAN RESOURSE MANAGMENT
SUB. CODE : PSIBTC213
SUBMITTED TO : Mrs. Isha Sharma
3. MERGERS
• Merger refers to consolidation of two or more companies to form an all-
new entity with a new name. Merger arises the companies in uniting their
strengths, resources and weaknesses. Merger leads to a reduction in trade
barriers and competition.
TYPES OF MERGER
• Horizontal
• Vertical
• Congeneric
• Conglomerate
4. ACQUISITION
• Acquisition is the purchase of an entity by another entity. This can be
done either by acquiring ownership over 51% of its share capital or by
taking over the assets of the company. The acquiring company is
more influential in terms of structure, operations and size as compare
to target company.
TYPES OF ACQUISITION
• Hostile
• Friendly
• Buyout
5. ISSUES IN INTERNATIONAL HRM
• Cultural differences.
• Environmental differences.
• Managing international assignments.
• Language and Communication.
• Selecting the right person for foreign
assignments.
6.
7. Hero MotoCorp
• Hero MotoCorp Limited, formerly Hero Honda, is an
Indian multinational motorcycle and scooter manufacturer
headquartered in New Delhi. The company is one of the largest
two-wheeler manufacturers in the world as well as in India.
• Type : Public
• Founder : Brij Mohan Lall Munjal
• Headquarters : New Delhi, India
• Founded : 19 January, 1984
• Revenue : 31,517 Crore (US $4.1billion)
• Products : Motorcycles & Scooters
8. Honda Motorcycle and Scooters
India
• Honda Motorcycle and Scooter India, Private Limited (HMSI) is
the wholly owned Indian subsidiary of Honda Motor Company,
Limited, Japan. Founded in 1999, it was the fourth Honda
automotive venture in India.
• Type : Private
• Founder : Atsushi Ogata, President and CEO
• Headquarters : Gurgaon, Haryana, India
• Founded : 20 August, 1999
• Products : Motorcycles & Scooters
9. SPLIT OF HERO HONDA
• Munjal brothers started their flagship company named the Hero
Cycles Ltd.They established a joint venture between the Hero Group
and Honda Motor Company in 1984, as the Hero Honda Motors Ltd.
at Dharuhera, India. Honda Motor Company was the world’s largest
world’s largest manufacturer of two-wheelers. Both the companies
owned 26% stake in the company respectively.
• During the 1980s Hero-Honda Motor Company brought the concept
of two-wheeler motorcycles in India.Their motorcycles were popular
in the Indian market because of their fuel economy and low cost. By
2010, Hero Honda Motor Company was regarded as the world’s
world’s largest manufacturer of two-wheelers.
10. REASONS FOR THE SPLIT OF HERO-
HONDA
1. Conflict in Exports
• Both the companies went into a joint venture with an
agreement that it was only for domestic production and
consumption. As Hero Honda Motor Company was one of the
largest manufacturers of two-wheelers, it wanted to expand
itself by exporting to other countries. Subsequently, the
agreement was modified and allowed the exports to a few
countries like Nepal, Bangladesh, Sri Lanka and Columbia.
• Now, Honda had its subsidiary companies in many
countries. The issues arose when Hero Honda came up with
exporting its motorbikes to other countries in 2008, where
Honda already had its subsidiaries. Honda made a opinion that
Hero Honda will have to compete on its own in the other
countries because Honda could not influence its subsidiaries
to import their JV’s products.
11. 2. Conflict of Interests
It was basically related to the Board Representation. The four members of the
board included two executive directors who were the heads of Honda in India
and Bangkok, and two other members nominated by Honda, which made the
Honda Group have access to all their plans and strategies while Hero Honda did
not have access to any of Honda’s plans.
3. Conflict in Visions
When the joint venture was started in 1984, it was a totally different world
then, and in 2010, the visions of both the companies, Hero Honda and Honda
begged to differ form each other. Hero Honda wanted to expand its business
its business and scale it up by entering into the next growth phase by focusing
on manufacturing its own products. So, it needed to invest in its own Research
& development for which they had to get approval from the head office in
Japan, with which Honda was not comfortable.
12. 4. Conflict in Competition
Honda Motorcycles and Scooters India Pvt. Ltd. (HMSIPL) a 100%
subsidiary company of Honda, entered India in 1999 which mandated
the company to take a No Objection Certificate (NOC) from its existing
JV partner, Hero Honda.The NOC was given, on a clause that Honda
will not make products that would compete directly with its partner.
