ATLAS HONDA ANALYSIS

ATLAS HONDA LTD.
Hailey College Of Banking & Finance
University of the Punjab
Executive summary
Management can be successfully be learned when I observe an environment
of a successful organization. I was asked to choose of favorite organization and to analyze its
managerial structure and function of management in that organization, because a successful
management makes a successful organization. For this project I chooses Atlas Honda limited (AHL).
I studied to AHL. In this I studied its whole history. We collected information regarding its
performance more critically. I analyzed its managerial structure and function of the management of
this organization. For this purpose, I visited its plant at Sheikhupura. There I met a well reputed
manager of AHL. There I conducted a detailed interview from him. Questions were asked regarding
managerial structure, management function, and operational procedures. The changes (Micro-
environment and Macro- environment) challenges, employee’s satisfaction, performance of the
organization and the ethical values they follow according to the society and culture.
I also visited training and warranty center of AHL at Mazang Lahore. Where I done interview from
manager of technical staff. Questions were regarding company policy about customer care and service
and code of conduct of AHL regarding these issues. Moreover I also interviewed twenty randomly
selected customers of AHL. I asked him about products quality, performance and their satisfaction
about the product and customer services.
Last but not the least, I also included library and internet study, regarding management challenges a
work force challenges in 21st
century.
I thoroughly analyzed Atlas Honda Limited in light of our knowledge and attained of the course;
principles of management and related library/internet material. There for I am presenting our project to
our resource person Prof.Dr.Khwaja Amjad Saeed.
I hope that the subject discussed in throughout this project report will not only the clear the strength of
managerial roots of AHL but also the tactical blend of principles of management.

ATLAS HONDA LTD.
Introduction
Company Name: Atlas Honda
Industry: Automobile
Atlas Honda Limited is a joint venture between the Atlas group and Honda motor
company limited Japan. The company was formulated by the merger of Panjdarya Limited and Atlas
Honda Limited in 1998. Atlas Honda Limited manufactures and market Honda motorcycles in
collaboration with Honda Company. The company also manufactures various hi-tech components in
collaboration with leading parts manufactures like Showa, Atsumitech, Nippon Denso, and Toyo
Denso. Honda motorcycles are the largest selling motorcycles in country with an unmatched
reputation for customer satisfaction, high quality, reliability and customer care.
AHL has attained to develop local manufacturing capability to highest, economically
feasible level. Atlas Honda Limited has countries largest in-house manufacturing capabilities at its
Karachi and Sheikhupura plants. AHL has established RND wing and tool making through
CAD/CAM which is growing rapidly in size and function as AHL expands. AHL has executed 12 joint
venture/technical assistance agreements between local venders and foreign manufactures for transfer
of technology besides, AHL has executed 9 joint ventures/technical assistance agreements other than
Honda.
AHL management is working to modernize company operation by adopting applicable
aspects of research and theory, more specifically, Honda’s unique philosophy of hard/soft technologies
according to the Pakistani conditions. Companies’ management structure, systems and processes are
changed according to the demands of the customer, growth and new technology. Efforts are being
made to develop participation of all levels of personals is discussion and effective delegation has been
established at all levels where applicable. Various participation programs for example “Alla Mayar”
quality circles movement, started in 1985, are strongly to allow constructive self-expression and team
work. Training and development programs encourage all members to develop themselves and
contribute to their full potential.
.

ATLAS HONDA LTD.
Financial Analysis
Annual production capacity: 750,000
Authorized capital: 1 Billion (rupees)
Paid up capital: 625.52
Karachi plant
Atlas group signed technical agreement with Honda in 1963 and plant started
commercial production subsequently. Plant spread over an area of 5 acres. In 1964, production began
with 7 motorcycles. Now plant production has reached to 300 units per day. Plant manufactures CD70
only.
Sheikhupura plant
The plant was built in 1981 over an area of 27 acres with the establishment of modern
and synchronized 500K plant in 2006. The plant manufactures all four models i.e. CD70, CD100,
CG125, CG125 Deluxe.
Exports
Bangladesh and Afghanistan
Now I compare the fiscal statements of year 2006 to 2011. Which shows the differences in the growth
in business, and this is definitely due to perfect managerial strategies of AHL.

ATLAS HONDA LTD.
Analysis of external environment and internal environment
External environment
External environment directly affects the performance and strategies of the organization AHL is a also
facing several kinds of external changes and adopting such a planning and strategies to compete with
these changes. The following main external changes affect AHL:
 Economic changes
Economic changes have affected the performance of AHL. With the growth 16.5% in auto
industry, the motorcycle industry has also shown the growth of 17.6%. The growth was some
what affected by the flood in 2010 which disturbed the economy of the whole country but
when the government gave compensation to the agriculture sector the demand of the
motorcycle increase in the rural areas specially. So the top management decided to increase its
market share in rural areas. More that the percentage increase in the GDP of the country since
2001 to 2011 AHL increased its production as demands of its products were increasing. By the
strong economic analysis of the fore coming years the production plans are made on the top
management level.
 Threats
The company is facing the threats of malpractices of informal sector through sales
tax avoidance, under invoicing and smuggling. So this end should monitor by government as it
gives also negative impact on the revenue of the government and sales of the AHL.
 Competition
AHL is also facing competition in the market. Especially invade of Chinese
motorcycle companies. But these companies are not giving good quality to the customers. It
gives the extra advantage to AHL because the buyers of Chinese motorcycle experience low
quality of Chinese motorcycle and for the future they would certainly prefer a product which
gives them better satisfaction. In this regard AHL gives its quality production with the addition
of after purchasing services to the customers. So this challenge is face by making good
planning, strategies and successful operational tasks.
 Changes in Customer’s choice
AHL observed that Pakistani population is consisted
of majorly youth group. Youngsters were largely interested in the CG-125 motorcycles. So
they increased the production of CG-125. And the target market of CG-125 was mainly in
urban and semi urban areas. So they operated in these areas focused to provide right product to

ATLAS HONDA LTD.
the right customers. The customers living in the rural areas were more interested in CD-70
motorcycle. Information was that the customers living in rural areas were more interested to
buy motorcycle in the days when their crops are sold. So AHL used this information
effectively and provided their product at right time to the right customer at right place.
Internal Environment:
AHL has its efficient workforce which is capable of
tackling all the challenges. To ensure good quality in the product AHL has attained qualities
and experienced technical staff. AHL provide them several training courses which make them
equipped of required knowledge and experience as the requirement of current dynamic
business environment.
AHL have a large workforce in it. It has a very transparent and merit based selection procedure
for the new employees. According to the policies of AHL, every employee has to work with
AHL at least for 10 years. So by this AHL has strength in this regard. The employees who
work with AHL keep learning the new technologies and due to this factor AHL attain much
more experienced workforce than earlier. More that AHL also gives retirement policy for its
employees, so the replacements are being done by recruiting new employees. AHL gets much
more loyal employees for its workforce. Every department has employees who have required
qualification and experience for their concerned jobs.
Managerial Functions of AHL:
Management is much more important for the
good performance of an organization. AHL has a very well reputed management staff which
successfully runs the operational tasks of the organization. And also they are capable to tackle
the dynamic business environment. Here we will discuss four managerial functions.
Planning:
Planning is first and very important managerial function. This function makes the
directions of the organization clear and guides its workforce what has to be done and why is
important to do. More that it also explain the strategies adapted to attain the exact result as the
planning was made. AHL has very clear plans for its long term, mid-term and short term
projects. AHL has its “AHL board” which is consisted of chairman, directors, CEO and
company secretary. In addition to that it also has management committee, which is consisted of
heads of several departments. Vision and strategies are made on the top management. Since

ATLAS HONDA LTD.
AHL is joint venture of Atlas group and Honda Motors, so vision is made by top executives of
the organization. The vision of Atlas Honda Limited is the following:
“Market leader in the motorcycle industry, emerging as a globally competitive center of
production and exports.”
I mention a practical example of AHL:
In 2010, by the research of R&D department of
AHL, economic and demographic changes were observed in the Pakistani market. The AHL
board gave a plan to enhance the sales of the company by tackling the changes. CEO delivered
that demand of CG-125 will increase in youngsters of urban and semi-urban areas. So
production department was advised to increase in the production of CG-125 up to required
amount. And marketing department was advised to market this product in the urban and semi-
urban areas among the youngsters. Similarly, the demand of CD-70 was increasing in rural
areas in the days when the crops are sold. So the AHL Board directed the Production
department to increase the production of CD-70 up to the requirement in the right days.
Marketing Department was directed to market CD-70 to majorly those where the demand of
this product is higher. We have mentioned about only two departments here. Actually the
whole organization was busy to attain the vision the organization. Technical department,
Finance department, department of quality assurance, R&D, IT department, department of
Supply Chain and all other were equally busy to bring the environment profitable for the
organization.
Organization:
As we all know that AHL is one of the biggest motorcycle company
in the Pakistan. To work more effectively and efficiently they made several departments like
service department, quality department, customer care department, finance department, and
Research and development department. Every department performs different tasks in the
organization. Every department have assigned with a several goals. These departments work
hard, more effectively and efficiently to achieve that goals. If their any technological changes
occur in the in industry, than to challenge this factor AHL R&D department will always ready.
The finance department follows the mechanistic approach to achieve the goals.

ATLAS HONDA LTD.
SWOT Analysis
swot analaysis
Strengths
Threats
Weakness
Opportunities

ATLAS HONDA LTD.
STRENGTHS:
 It largest auto mobile company.
 It has strong financial structure.
 It provides innovative midles of bicks.
 Mostly it is dealing at government level.
WEAKNESSES:
Major weakness of the atlas is that it has a less number of branches all over the Pakistan as
compared to their competitors.
The lower management of the atlas Honda is non skilled and most are undergraduate.
As it is customer focused company for the satisfaction of their customer his breakage of the
rules occurs.
OPPORTUNITIES:
Expansion.
 Prosperity.
 Growth.
 Trust.
 Excellence.
THREATS:
 Leading competitor.
 Financial and political instability.
 Lack of awareness.

ATLAS HONDA LTD.
Management profile
 AHL Board
1. Chairman
2. Directors
3. Chief Executive Officer
4. Company Secretary
 Management Committee
1. Chief Executive Officer
2. Vice President Marketing
3. Vice President Technical
4. Chief Financial Officer
5. General Manager Plants
6. General Manager Quality Assurance
7. General Manager Research and Development
8. General Manager IT
9. General Manager Marketing
10. General Manager HR, Admin and Corporate Affairs
11. General Manager Supply Chain
12. General Manager R&D and projects
13. General Manager Planning and Commercial
 Audit Committee
1. Chairman
2. Members
3. Head of Internal Audit
4. Sectary

ATLAS HONDA LTD.
Strategic Goals
Leading
AHL set different polices to better run their organization. Different policies help the
organization to increase its work performance. Policies help to motivate the employees.
 Environment policy
Reduce and prevent the generation of waste and pollution in our production system
Establish management program to promote energy conservation and reduce waste or
resources
Comply with requirements of environmental legislation and local regulations as a
responsible corporate citizen
Promote relevant environmental protection knowledge and activities through education and
training
Initiate and extend environmental improvement activities from the company itself to its
business partners including parts manufacturers, general suppliers and dealers.
 Organization prior strategy is to
o Recruit
o Retain
o Then retire
 If there is any industry down fall occurs than firstly we layoff our temporary employees.
 If any employee is continuously disobeying company rules and regulations we issue him a
show cause notice.
HRM Policies
1. Gratuity policy
Gratuity policy is an applicable to that person who is working for more than
ten years in the organization.
Rules
He has to inform one week before taking the gratuity to the administration.
He should have to complete ten years of his service.

ATLAS HONDA LTD.
2. Mobile policy
Mobile phones are given to the following person
General Manager
Department Manager
Manager
Assistant Manager
3. Travel policy
Organization will bear the travelling expense which is incurred by the
employee for the business and those expenses should be in the ordinance of the nature of the
business activity. If the organization takes the services of the special person in the sense on
recruitment, selection and training of the employee, the organization will bear his travelling
expense and also reserve a room in a five star hotel or any other good hotel in the city for his
residence.
4. Car policy
Car policy will be entertained by the eligible or competitive
employee’s.Organization give the car to the eligible employee.

ATLAS HONDA ANALYSIS

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