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Honda Strategy

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Strategic Management Project

Published in: Business, Technology
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Honda Strategy

  1. 1. Welcome to Honda Ltd., HCM International University Strategic Management for Global Group 8
  2. 2. Outline • Introduction • Five levels of strategy • Decision maker • The six external environments • Global challenges • Analyze the firm’s structure • Organizational process • Social responsibility • Managing people • Evaluations and controls • Conclusion • References
  3. 3. The Power of Dream • Soichiro Honda (1906-1992) was Japanese engineer and industrialist, and founder of Honda Co.,Ltd. • In 1937, Honda began producing piston rings-used in motorcycles. • In 1948, Honda stared producing complete motorcycles. • In 1949, Takeo Fujisawa joined the Honda ( one of the most person lead to Honda’s success ) • In 1968, Launching the Honda 1300- Honda’s first small car.
  4. 4. Describe the firm today • 4 main segments following: – Motorcycle business – Automobile business – Financial service business – Power product and other business • More than 167.231 associates in the Global scale. • Stand the largest motorcycle manufacturer and the 7th automobile manufacturer in the world. • On the march, 2008, Honda was ranked as the best car in US by Consumer Reports.
  5. 5. The five levels of strategy
  6. 6. Enterprise Strategy • The Mission Statement of Honda is try to maintain a global point of view, with the dedication to supply the highest quality products at a reasonable price for worldwide customer satisfaction. Moreover, taking new challenges with the pursuit of Initiative, Technology and Quality, Honda is pursuing their 2010 Vision: Striving to be a company society wants to exist through creating new value, globalization, and commitment for the future.
  7. 7. Corporate Strategy • Automobile Industry – Superior Fuel economy – Optimum safety – Driving Pleasure – World wide • Motorcycle Industry – Build product close to customer – 28 plant, 21 countries, R&D 6 countries • Power Business – First business of Honda – Expanded – 11 plant, 9 countries, sold 156 countries, used by 5.5M people – ASIMO – Honda jet
  8. 8. Business Strategy • R&D System – Approach: • Durability • Reliability • Focus Foundation – Dimensions: • Economical • Environmental • Social Issues
  9. 9. Business Strategy • Globalization Characteristic
  10. 10. Business Strategy • “The Joy of Selling” - Dealership – Create inspiring experience for its customers – Response to changing value – Increasingly complicated needs of customers – => Improve customer relations • Friendly and attentive sales • Responsive service support • Thorough maintenance and repair – => “Life with Honda”
  11. 11. Operational Strategy • Divide 6 administrative regional group • Pursue independence of local management and sales operations • Operate under conduct guidelines => keep evaluating and risk managing • High level of transparency
  12. 12. Individual Strategy • “The Three Joy” – The Joy of buying – The Joy of Selling • Not only relationship • But feel pride by positive relationship – The Joy of Producing • Pride in exceeding the customer expectation
  13. 13. Organizational Process – Organization culture – Innovation Management
  14. 14. Organization culture Respects for the Individual and The Three Joys
  15. 15. Organization culture • “Respects for the Individual” • “The Three Joys”
  16. 16. “Respects for the Individual” • Initiative: Encouraging creative thinking • Equality: Fairly treating. • Trust: Good relationship between employees
  17. 17. “The Three Joys” • The Joy of Buying • The Joy of Selling • The Joy of Producing
  18. 18. Innovation Management • Developing new technologies of manufacturing system • Building environmentally responsible and people-friendly plants.
  19. 19. Managing People
  20. 20. Managing people • Environmental training • Ensuring diversity in employment
  21. 21. Environmental training • Part of Honda’s training curriculum • Deepen associates’ understanding about Honda’s policy toward environmental • Training programs are continuously provided to associates • Promote activities focusing on energy and resource conservation and recycling
  22. 22. Ensuring diversity in employment • Provide human rights education, based on Honda’s principal of respect for individual • Opendoor employment policy, hiring based on individual merit • Employ people with disabilities • Reemploy retirees, create opportunities for those who reach the retirement age of 60

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