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JP Morgan Chase: The Balance Between Serving Customers and
Maximizing Shareholder Wealth
Penelope Bender
William Woods University
BUS 585: Integrated Studies in Business Administration
Dr. Leathers
Abstract
This paper investigates why JP Morgan Chase and other
financial institutions struggle to balance client interests over
maximizing wealth.
It is an exploratory study done through literature review.
Often financial institutions, like JP Morgan, put profits ahead of
the interests of those they serve.
The paper contributes to better understanding of corporate
culture.
This paper investigates why JP Morgan Chase and other
financial institutions struggle to balance client interests over
maximizing shareholder wealth. This exploratory study is done
through a literature review to answer why financial institutions,
specifically JP Morgan, often put profits ahead of those they
serve. The study will provide evidence of the complex nature of
balancing client interests over maximizing shareholder and
individual wealth and the need for tighter internal and external
oversight. This paper contributes to a better understanding of
why corporate culture encourages profit over stakeholders’
interests.
2
Research Question
Why does JP Morgan Chase and other financial institutions
struggle to balance client interests over maximizing shareholder
wealth?
Employees of JP Morgan Chase and other large banks work in
their best interests to increase wealth and succeed by meeting
management goals. However, because of the complex nature of
large banks, an individual(s), unethical behavior can go
unchecked.
3
Problem Statement
JP Morgan Chase competes globally and faces competition from
other large banks in the US and abroad.
JP Morgan Chase is part of a complex system of regulation,
self-interests, and wealth creation.
The interests of shareholders and investors is sometimes
overshadowed by agents working in their own best interests.
Financial markets are a complex web of interests, and because
of opportunities for individual profits, regulating individual’s
actions without stricter regulations and internal oversight is
impossible.
The study is not meant to be a moral or ethical analysis but
merely why the complex relationship exists and will continue to
exist in capitalist society. This paper contributes to a better
understanding of why capitalism or financialism’s (Clarke,
2014) fundamentals encourage wealth creation. Financial
markets are a complex web of interests, and because of
opportunities for individual profits, regulating individual’s
actions without stricter regulations and internal oversight is
impossible.
4
Literature Review
The literature review showed a connection between self-
interests, regulators, competition, and risk, which all lead to a
complex system of conflicting agendas.
5
How Self-Interests Influence Behavior
Ross (1973) explains that all employment relationships are
agency relationships and moral hazards are generally due to
such relationships.
In an SEC case against JP Morgan Securities (JPMS), JP
Morgan acknowledged violating federal securities laws from
January 2018 to November 2020, allowing traders to
communicate about securities through a texting app, WhatsApp,
and personal emails.
Corporate governance theory explains how leverage influences
agency costs and firm performance (Berger & Bonaccorsi di
Patti, 2006).
There are always conflicting goals within an organization, but
the problem is when the individual’s goals (because of
compensation packages) become part of the institutional
culture. It becomes a “theory of relationships embedded in
social structures featuring social norms” (Mitnick, 2021).
6
Financial Standards and Regulations
The financial crisis was during deregulation resulting in
devastating losses and economic upset.
Born (2011), who served on the Financial Crisis Inquiry
Commission (FCIC), believes the support for self-regulating
reforms caused the risk in the financial system.
Lobbying by large financial institutions affects regulations.
Lambert (2017) found that 44.7 percent of regulators do not
seek enforcement against banks that lobby.
Lobbyists have influenced the effects of the Dodd-Frank since it
was passed in 2010. Ban and You (2019) studied lobbying
regarding the Dodd-Frank Act. Their findings support other
research by Lambert (2017) on their influence on policymakers.
They found that the number of meetings with the SEC and
lobbying reports were positively correlated to citations on the
final rules.
7
How Competition Affects the Financial Markets
Competition often reduces banking stability by “squeezing
profits,” increasing pressure on banks’ to make risker decisions
to increase profit (Corbae & Levine, 2018).
Another study by Degl’Innocenti, Fiordelisi, Girardone &
Radica (2019) also found evidence supporting competition
leading to the fragility in the market.
Bannier, Feess, and Packham (2013) studied how executive
compensation and competition in the market for such talent
increased excessive risk-taking beyond the interest of the board
and its shareholders.
When risk-taking is rewarded because of talent competition, it
results in excessive risks to the market. Employees in this
category have a more significant stake in the company and may
feel privileged to make their own rules. For example, this
happened when managers of JP Morgan Chase allowed
employees to use “WhatsApp” to evade regulators (Franck &
Son, 2021).
8
Risks to the Financial Market
Research done by Erturk (2016) argues that no amount of
regulation will safeguard against risk until the shareholder
value business models are changed.
Bell and Hindmoor (2017) did a study focusing on the
information before 2005 and after (up to 2015) and found that
although regulation controlled leveraged financial trading, it
has not changed the dynamics of the banking industry.
The board of directors and the CEO are at the center of
controlling internal risk.
The board’s role is to ensure “bank stability by monitoring
executives” and controlling unnecessary risk-taking (Srivastav
& Hagendorff, 2016).
Boards have an influence on executive behavior and have
control of that behavior through compensation structure. For
example, research shows that after deregulation, US bank
boards created compensation packages with “option-based
equity incentives to encourage risk-taking” (Srivastav &
Hagendorff, 2016). To control risk-taking and encourage long-
term growth, boards could tie compensation to incentives that
encourage bank stability.
9
Methodology
This paper’s analysis is based on written sources.
It covers four areas: agency theory behavior, regulations
(external and internal), competition and economic risk.
It looks at JP Morgan and other large financial institutions'
unethical and illegal actions to make sense of the complex
relationships.
Explores why regulators are unsuccessful at controlling risk.
Explores how competition affects the actions of financial
institutions.
Finally, looks at how actions pose risks to the economy.
Traders are often motivated by self-interest to concentrate on
short-term profits and personal wealth creation. Jasper et
al.(2005) talks about the tensions between individuals’
strategies (opportunism) and institutional control (restraint).
Corporate governance theory explains how leverage influences
agency costs and firm performance (Berger & Bonaccorsi di
Patti, 2006).
10
Results
This exploratory study provides evidence of the complex nature
of balancing agents’ and principals’ interests.
This analysis found conflicting goals between regulatory
agencies and corporate governance.
Regulatory agencies aim to control risk and protect the economy
from a financial crisis, which conflicts with the shareholder
management model that aims to increase equity and share price.
Research by Srivastav and Hagendorff (2016) discusses the need
for additional risk management. To reduce risk in times of
crisis, we should design reforms to increase the probability that
the real economy remains insulated (Geithner, 2017).
11
Discussion
This research can help to better understand the complex nature
of the financial industry, regulatory agencies, corporate
governance, and risk.
Managers can benefit from understanding the importance of
corporate governance to control internal risks and corporate
culture.
The gap areas of this study was posed by the amount of current
research available on agency theory and corporate governance
in banking.
Future research should focus on addressing internal governance
and regulatory policies that deter illegal actions and promote
long-term stability in the market.
The literature review shows the complex nature of banking and
the risks of deregulation and competition. This paper reviews
prior work and gives insights for further research on agency
theory, governance, competition, and risk management. The
number of academic studies on banking limited the scope of this
paper
12
Conclusion
The research shows the need for stronger external and internal
regulations in financial institutions.
Failures in the banking system have a ripple effect throughout
the economy.
Banks have government guarantees which may increase risk-
taking (Srivastava & Hagendorff, 2016).
Governance is necessary to control the risks.
This paper aims to understand the complex nature of the
financial industry, the underlying culture of wealth creation,
regulatory struggles, and economic risks. After the financial
crisis, it was clear that banking regulations were insufficient to
control risk and that deregulation and self-governance were
inefficient. The research shows the need for stronger external
and internal regulations, a change in the corporate culture, and
penalties that deter illegal actions.
13
Works Cited
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Evidence from Dodd-Frank. Business and Politics. 21(2), 267-
295.
https://www.cambridge.org/core/journals/business-
and-politics/article/presence-and-influence-in-lobbying-
evidence-from-
doddfrank/C75E6EFC1109A84676EF6ABD0B2BC588
Bannier, C., Feess, E., & Packham, N. (2021, February 27).
Competition, bonuses, and risk-taking in the banking industry.
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Https://doi.org/10.1093/rof/rfs002
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Bell, S. and Hindmoor, A. (2017). Are the major global banks
now safer? Structural continuities and change in banking and
finance since the 2008 crisis. Review of International Political
Economy. ISSN 0969-2290
https://doi.org/10.1080/09692290.2017.1414070
Berger, A. and Bonaccorsi di Patti, E. (2004). Capital structure
and firm performance: A new approach to testing agency theory
and an application to the banking industry. Journal of Banking
& Finance, 1065-1102
Only references from this paper have been included. A complete
list of references is at the end of my thesis.
14
Works Cited
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and the Flash Crash: Reflections on eventalization, Economy
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Bradshaw, C. (2020). Credit rating agencies: regulation and
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and executive remuneration in banking industry: An analysis of
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1e06-4efa-b792-
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c955-4ff4-8ddc-
ac62e7a7073f%40redis&bdata=JnNpdGU9ZWRzLWxpdmU%3d
#AN=95697283&db=asn
The references from this paper are too long for the presentation,
therefore, only works cited in the presentation are included.
15
Works Cited
Clayton, N. (2015). Failures in the prudential regulation of
banks in the UK and US: Will the lessons be learn? Law and
Financial Market Review, 9(2), 130-153.
Corbae, D. & Levine, R. (2018, September 14). Competition,
Stability, and Efficiency in Financial Markets.
https://faculty.haas.berkeley.edu/ross_levine/Papers/JH091418.p
df
Dowd, K. (2009). Moral hazard and the financial crisis. Cato
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Erturk, I. (2016). Financialization, bank business models and
the limits of post-crisis bank regulation. Journal of Banking
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Geithner, T. F. (2017). Are we safe yet? How to manage
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16
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coming? Warning signs, acceptable risks, and the global crisis.
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Jasper, J., Abolafia, M. & Dobbin, F. (2005). Structure and
Strategy on the Exchanges: A Critique and Conversation About
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Jensen, M. C. & Meckling, W. H. (1976). Theory of the Firm:
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Menand, L. (2018). Too big to supervise: The rise of financial
conglomerates and the decline of discretionary oversight in
banking. Cornell Law Review, 103(6), 1527-1588.
Mitnick, B. (2021). The theory of agency redux. Academy of
Management Discussions, 7(2), 171-179.
Ross, S. A. (1973). The Economic Theory of Agency: The
Principal’s Problem. The American Economic Review, 63(2),
134-139.
Srivastav, A. & Hagendorff, J. (2016). Corporate governance
and bank risk-taking. Corporate Governance: An International
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Zeidan, M. J. (2012). Effects of illegal behavior on the financial
performance of US banking institutions. Journal of Business
Ethics, 112(2), 313-324.
17
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Results Section
Donte Walker
Department of Business and Technology, William Woods
University
BUS 585- Intergrated Studies and Business Administration –
Fall 2 2022
Dr. Leathers
Socialist market economy is distinct from 'market economy' due
to the CPC's continued authority over national policymaking,
which allows the country to follow its socialist growth path.
Deng Xiaoping and the CPC shifted their attention from culture
(Mao) to advancing the material productive forces, resulting in
the socialist market economy. The CPC uses a combination of
public and private actors to steer the Chinese socialist market
economy in the direction it wants to go. In this sense, the state
plays a considerably more significant role than it would in a
free market economy. As was clear from the start when MNCs
began relocating to China in the 1980s and 1990s, the Chinese
government is picky about the kind of businesses and industries
it allows to operate within its borders (Feng & Li, 2019). When
China first opened its doors to the automotive sector, it did so
after engaging in thorough negotiations with various
international manufacturers and licensing only those projects
deemed to be beneficial to China's development. The Chinese
were eager to master automobile production because of the
historical significance of the automotive sector to the country's
economy.
When an international company forms a joint venture with a
Chinese partner, the international company will often share its
proprietary know-how with the Chinese partner and teach the
Chinese partner how to use it. However, there are certain
exceptions to this rule. Despite the Chinese partner's contractual
and WTO obligations to cease such production, several
complaints have been lodged about the Chinese partner's
continued production of the same items after a JV has been
dissolved. This is despite the fact that the Chinese partner is
required to cease such production (Feng & Li, 2019). Since
September 2017, the Chinese government has been waging a
campaign to improve the country's protection of intellectual
property rights (IPR), in which they have pledged to crack down
on activities that infringe on intellectual property rights and to
increase judicial and administrative safeguards. Despite this, the
United States has continued to lodge a complaint against China
at the World Trade Organization (WTO) regarding the country's
weak protection of intellectual property rights (IPR). Due to the
high expense of research and development in the automobile
sector, protecting their intellectual property rights is absolutely
necessary in order to keep their advantage over their
competitors. The industry is currently going through a time in
which research and development is more important than it has
ever been before since driverless vehicles and NEVs seek to
shake things up (Wang, 2022). There is a compelling theoretical
case in favor of selecting an entry strategy that takes into
account the requirement to protect intellectual property. The
development of electric and hybrid vehicles is the focus of one
of the research and development facilities that GM maintains in
China. This center is a joint venture between GM and SAIC.
The fact that China has the most people of any country in the
world makes it a very appealing market for automobile
manufacturers. The rise in foreign direct investment (FDI) in
China can be attributed to the country's sizable consumer
market as well as its robust economic growth, which reached its
all-time high of $290 billion in 2013 before falling to $174
billion in 2016 (Foreign direct investment, net inflows (BoP,
current US$), no date) (Wang, 2022). Even though the pace is
much slower, multinational firms from other countries are
continuing to make significant investments in China. China has
been the largest market for vehicles globally since 2009, and
sales have only climbed since then, so automakers have been
increasingly looking to the country to enhance their bottom
lines. Since 2009, China has been the largest market for
vehicles worldwide.
References
Feng, K., & Li, J. (2019). Challenges in reshaping the sectoral
innovation system of the Chinese automobile industry. In
Innovation, Economic Development, and Intellectual
Property in India and China (pp. 415-438). Springer, Singapore.
Wang, K. H., Su, C. W., Xiao, Y., & Liu, L. (2022). Is the oil
price a barometer of China's automobile market? From a
wavelet-based quantile-on-quantile regression perspective.
Energy,
240, 122501.
Methodology Section
Donte Walker
Department of Business and Technology, William Woods
University
BUS 585- Intergrated Studies and Business Administration –
Fall 2 2022
Dr. Leathers
Quantitative and qualitative approaches are the two basic types
of research methods that should always be utilized in the field
of research. Quantitative methods focus more on numerical data
and provide and analyze that data, whereas qualitative methods
place more emphasis on narrative data and provide and analyze
that data. Both quantitative and qualitative methods collect and
analyze data (Basias & Pollalis, 2018). The primary objective of
this research paper written in the style of a case study is to
investigate the success that Honda has had in globe. This
investigation will focus on the company's entry modes, the entry
obstacles, and the trade barriers, as well as how these aspects
influence Honda's decision-making. As a direct consequence of
this, the research approach that was taken was qualitative. Case
studies can be developed by conducting in-depth analyses of
events, and qualitative research can be of assistance by shining
light on the conditions in question as they exist in the real
world. Any study of social phenomena that involves the
researcher using a wide variety of empirical data to assess a
case in order to obtain a deeper understanding of the subject
matter is considered to be qualitative research. In order for the
researcher to obtain a comprehensive comprehension, this study
takes a qualitative approach to Honda's research in order to
conduct the investigation.
PESTEL, which is one of the most effective tools for
conducting macro-environment analysis for the purposes of
conducting company operations, as well as the theories of joint
venture and exporting and totally owned subsidiary, will serve
as the initial foci of this article. Next, as a case study, we'll
investigate Honda Motors to find out more about the business's
approach to market entry. In this situation, we will use the OLI
paradigm to investigate Honda's entry mode strategy, after
which we will provide an analysis of our findings as well as
some suggestions for how the corporation might better its future
expansion into new markets (Borgstede & Scholz, 2021). The
techniques chapter devotes the majority of its discussion to the
overarching research perspective. The paper will start with an
introduction, then move on to a description of the research
methodologies and strategies that were utilized, followed by the
data collection, analysis, and interpretation sections. At long
last, the report will wind down with a summary of any pertinent
conclusions and recommendations.
The primary objective is to pinpoint Honda Motors' technology
utilization across its numerous entry modes in various markets.
From there, the objective is to construct a more solid basis upon
which to advise the company on the most appropriate entry
mode for its future global operations. Ultimately, the goal is to
advise the company on the most effective entry mode for its
future global operations. In light of the fact that this is of the
utmost significance when it comes to the process of providing
suggestions for the future operations of Honda all over the
world, we will be doing research into the regulatory
environment and entry difficulties.
In the process of doing research, both deductive and inductive
thinking are utilized to an essential degree. According to this
definition, the deductive method of inquiry comprises creating
hypotheses in light of previously established scientific
principles and theories, testing those hypotheses, and drawing
legitimate and, at times, paradoxical conclusions from the
results of those tests. In direct opposition to this is the
inductive method, which centers on the accumulation and
analysis of empirical facts in order to reach conclusions about
the world and, ultimately, on the generation of novel concepts
(Basias & Pollalis, 2018). Because qualitative research is
naturally more subjective and able to adapt to altering priorities
throughout the course of the research process, the inductive
method finds widespread application within this methodology.
Since empirical data, statistics, yearly reports, and corporate
websites were all reviewed in order to obtain information, the
inductive technique was applied to produce this paper. This
material was then studied in order to provide the researcher
with an in-depth acquaintance with Honda.
References
Basias, N., & Pollalis, Y. (2018). Quantitative and qualitative
research in business & technology: Justifying a suitable
research methodology.
Review of Integrative Business and Economics
Research,
7, 91-105.
Borgstede, M., & Scholz, M. (2021). Quantitative and
Qualitative Approaches to Generalization and Replication–A
Representationalist View.
Frontiers in psychology,
12, 605191.
Introduction, Problem Statement, and Literature Review
Donte Walker
Department of Business and Technology, William Woods
University
BUS 585- Intergrated Studies and Business Administration –
Fall 2 2022
Dr. Leathers
November 20, 2022
Introduction
Japanese automaker Honda Motor Co., Ltd. is a publicly traded
company. Unlike its competitors, it has not been limited to a
single product over the course of its decades-long reign over the
global market. The business's reach spans many fields, making
it highly versatile. The corporation is best known for
manufacturing automobiles, airplanes, motorcycles, and power
equipment (Badhon, 2019). The Honda Motor Company, Ltd.,
was established in 1959, and since then it has become a
worldwide leader in the production of bikes and accessories.
Honda Motor Company, one of the world's largest automakers,
offers a diverse lineup. For Honda, the United States and
Canada are the primary sources of revenue (Muniandy et al.,
2020). Honda's products have evolved throughout the years, and
the corporation today provides a wide variety of cutting-edge
innovations. But competition is heating up as more businesses
set their sights on the global market.
Mr. Honda developed the idea of attaching an engine to a
bicycle. There was an immediate demand for Mr. Honda's
motorcycles. With the help of his friends, he was able to raise
enough money to buy the materials necessary to build a
motorcycle with significantly more range (Badhon, 2019). His
primary means of financial support were motorcycles and
bicycles, which he sold to black marketers and small cycling
enterprises. Company founder Soichiro Honda has had a passion
for cars since he was a young boy (Bahety et al, 2018). At the
Art Shokai tuning company in Japan, he filled in as a specialist,
making adjustments to cars and entering them in competition.
Since he had no formal architectural training, he worked on a
cylinder layout to pitch to Toyota. After receiving negative
feedback on his preliminary design suggestions, Soichiro spent
a great deal of time honing and completing his final design.
After some years, Toyota awarded him a contract, and he built a
factory to produce pistons for the corporation. Unfortunately,
the factory was destroyed by an earthquake. Because of the
wartime fuel shortage, Honda was unable to drive his car,
However, the idea of mounting a small motor on his bicycle
sparked widespread interest (Bahety et al., 2018). Soon after, he
established the Honda Technical Research Institute to focus on
developing and producing lightweight, 2-cycle cruiser engines.
Soichiro got enough capital to design and produce his first
motorbike, the Honda Cub, by enlisting the support of 18,000
bicycle shop owners across Japan in the struggle to rebuild a
country ripped apart by World War II. Founded in this year,
Honda Motor Company would soon grow to become the largest
motorcycle manufacturer in the world. The T360 pick-up truck,
manufactured by Honda and released in August 1963, was the
first manufacturing automobile anywhere in the globe (Badhon,
2019). The automobile was powered by a 356 cc gasoline
straight-4 engine and qualified for the more affordable Kei car
tax category. After the T360, in October 1963, Honda began
production on the S500 sports car, their first mass-produced
automobile (Badhon, 2019). A chain drives the rear wheels,
recalling Honda's origins in the motorcycle industry.
According to company’s goal statement, Honda strives to
"provide products of the best quality, yet at a reasonable price
for international customer satisfaction while keeping a global
perspective." The statement demonstrates the company's
commitment to provide high-quality items at competitive prices.
The structure is comprised of the following element:
Improvement of life and Improving affordability (Badhon,
2019). Since the beginning, Honda has been committed to
producing high-quality products, giving them an edge on the
competition. Honda's success can be directly attributed to its
corporate statements.
To "service people globally with the joy of enhancing their
life's potential - Lead the advancement of mobility and empower
people everywhere to enhance their daily lives," as stated by
Honda, is the company's stated mission. Honda has been at the
forefront of ground-breaking designs that enhance mobility
across all modes of transportation, including land, air, and sea
(Badhon, 2019).
While Hondas firm limited has expanded into the automobile
industry and is now the third largest carmaker in Japan, the
company orginally began producing bikes and is currently the
largest motorbike producer in the world. The United States is
their best market and where the company sees the most success.
Most of Honda's revenue comes from selling automobiles,
including the Accord, Civic, CR-V, and the high-end Acura
brand (Bahety et al., 2018). The Accord is the country's second
most popular car purchase, yet it tops the list of most stolen
cars, making it the most "in-demand" automobile in the country.
Some of Honda's motorcycle offerings include the Super Cub,
Foresight, and Shadow 750. In addition to agricultural and
industrial gear, portable generators, outboard motors, and all-
terrain vehicles are produced by the company's power products
section, which contributes to the company's annual revenues
(Bahety et al., 2018).
The market challenges experienced by Honda are the primary
focus of this essay. Honda Motors employees in China wanted
to form their own union so that they could have a voice in the
company. In addition, they sought a raise in pay and benefits.
Nearly 1700 employees went on strike when the corporation
refused to meet their demands. Management now faces a critical
issue as a result of this predicament (BHARGAVI). The
company's sales and revenue dropped, and Honda had trouble
finding enough people to work in its factories. It also became a
political issue, which hurt the company's reputation in the eyes
of its target audience.
Literature Review
According to Badhon (2019), one of the most prestigious
product segments in terms of revenue is the automotive sector, a
term encompassing a wide range of businesses and trade groups
involved in the design, development, manufacture, marketing,
and exchange of motor vehicles, towed vehicles, two-wheeled
vehicles, and mopeds. It's a major source of international trade
and economic growth (Badhon, 2019). The term "automotive
industry" typically excludes businesses whose primary product
is a written providing to the support of autos and 1 subsequent
thing rounded up to the end-user, such as repair shops and fuel-
up stations.
As per Bahety et al (2018), there is a massive market for high-
tech automobiles. Many American businesses rely on
production, distribution, and maintenance. To compete in the
luxury market, Honda removed all references to the company's
origins from its vehicles. Customers did not connect Honda's
rising prestige with the company as a whole (Bahety et al,
2018). Honda has finally released an encouraging product, and
the success of this launch was measured by the company's
profitability, market share, and the success of the new model
thus far. The success of the expansion is heavily reliant on the
advertising strategy that backs it. In light of these gains, Honda
has satisfied the criteria for advancement necessary for vertical
growth. The company credits its successful advertising strategy,
which it says is vastly different from the advertising strategy it
employs for its non-luxury businesses (Bahety et al, 2018).
Honda enjoyed a perfect trait-relationship with its customer
base in terms of quality and consistency, but the renown-
relationship was less than stellar. Honda Motor Company felt it
necessary to counter the negative glory relationship of the
parent brand, in which the parent brand's name did not
automatically convey prestige in the high-end market (Bahety et
al, 2018). Honda came up with the Acura brand to combat this
problem, and it has been incredibly successful for the company.
There have been more seamless openings in the supply chain as
a result of the increased global trade of vehicle parts according
to Muniandy et al (2020). Pakistan has swapped vehicles with a
number of different economies. These days, it's not unusual at
all to see recycled cars or auto parts manufactured in Asia or
Europe. Due to their higher cargo costs, the value of imports
has not yet diminished the advantage of local manufacturers
(Muniandy et al, 2020). However, in Asia, this sort of trade is
prohibited because of the high interest rates in countries like
China and India. Auto manufacturing is the sixth largest
assembly sector in Pakistan. During the past few years, it has
experienced explosive growth, with year-over-year increases of
over 100%. Every year, the automotive industry adds over $6
billion to the US economy. It generates roughly $0.82 billion in
revenue for governments through indirect charges, and it
directly creates 215k jobs. At the same time, this region
contributes at least 16% to Pakistan's manufacturing sector
(Muniandy et al, 2020). The auto industry in Pakistan is quickly
rising to prominence as a driver of the country's economic
growth and international trade because to the country's plethora
of opportunities for workplace innovation and forward and
backward connections in allied businesses. Suzuki, Honda, and
Toyota are the three most well-liked automakers in Pakistan,
accounting for 62%, 9%, and 28% of the market share,
respectively.
According to Bhargava & Chandravathi, Honda operates in
Pakistan's automobile sector under varying theories of
diversification and specialized cooperative activity with leading
global fabricates. It is also argued that there is a strong
rationale for buying in from the nearest neighbors if the buy in
of completed products is to be established at a greater value.
The automobile industry in Pakistan might be considered to be
under distinct control (Bhargava & Chandravathi). There's no
denying that the top three automakers control the vast majority
of the industry. It's also more likely that prices in an
oligopolistic market will be set in stone. This rigidity could
manifest itself if, for example, a price hike by one manufacturer
isn't matched by others, or if a price cut by one manufacturer
leads to a price cut across the board. Honda Pakistan brought
this to customers' attention by offering price cuts of PKR
30,000 on the Honda Civic and PKR 40,000 on the Honda City
(Bhargava & Chandravathi). For better or worse, fascinating
times lie ahead for the auto industry and the three Japanese
automakers in Pakistan. Honda, the smallest of the big three
automakers, is now the brightest example. The company has
grown steadily, utilizing only 50% of its present capacity, but
its share of the automobile market has increased, from 9% in
2009 when it first began selling vehicles in the country to 20%
in 2014.
As per Boiral et al (2022), it’s possible that Honda may become
the industry leader in terms of both money and progress. In the
past year alone, its stock price has risen dramatically. The
company's redesign and introduction of a new Civic have been
well received by consumers (Boiral et al, 2022). The most
current data available (7MFY17) reveal that consolidated deals
are up 51% year-on-year, and that January 2017 witnessed the
most significant deals the company has sold in a month to date.
Five-one percent of Honda's production is local.
According to Thomas (2019), the distribution industry relies
heavily on achieving stronger restrictions, but this has become
increasingly difficult due to surging crude material imports.
Import prices will rise in response to any change in the dollar's
parity with the rupee. Retailers have already begun petitioning
for a waiver of the RD on steel component imports. It is
impossible to construct confinement without massive volumes
(Thomas, 2019). Each iteration of the model and layout
necessitates a fresh round of innovation, which in turn
necessitates massive investments of billions of rupees.
According to Chahande (2022), low numbers of coordinated
efforts were another reason for not achieving desired results
towards indigenization. Pakistan also pays a fraction of the cost
that Malaysia, Thailand, Vietnam, and India do for eminences
and specialized charges. Even that is difficult due to standard
and federal spending regulations.
As per Park (2021), Honda of Pakistan is a joint venture
between the Japanese and Pakistani branches of the firm. As
was just described, Honda operates in Pakistan's automotive
sector via two large, combined ventures, both of which are tied
to the Atlas Group. Perhaps most interestingly, the Atlas Group
owns a share in Honda in Pakistan exceeding 50%.
References
Badhon, M. (2019). Analysis on Market and Business Strategy
of Honda, DHS Motors Limited.
Bahety, S., Moffitt, B., Pruchnik, W., & O’Rourke, J. S.
(2018).
Honda motor company: communication and the takata
airbag crisis. The Eugene D. Fanning Center for Business
Communication, Mendoza College of Business, University of
Notre Dame.
Muniandy, A. M., Kee, D. M. H., Izwan, S., Imran, M., Al-
Amin, A. A., Kumar, S., & Singh, S. (2020). The key success
factor: A study of Honda Motor.
Journal of the Community Development in Asia
(JCDA),
3(2), 67-77.
BHARGAVI, T., & CHANDRAVATHI, K. A STUDY ON
COMPARATIVE FINANCIAL STATEMENT ANALYSIS ON
HERO MOTOR CROP.
Boiral, O., Brotherton, M. C., Rivaud, L., & Talbot, D. (2022).
Comparing the uncomparable? An investigation of car
manufacturers' climate performance.
Business Strategy and the Environment,
31(5), 2213-2229.
Thomas, V. J., & Maine, E. (2019). Market entry strategies for
electric vehicle start- ups in the automotive industry–Lessons
from Tesla Motors.
Journal of Cleaner Production,
235, 653-663.
Chahande, M. S. S.(2022)
“A study of various purches factor of Yamaha scooter
and its impact on buying behavior vis-à-vis other competition in
the segment (Doctoral dissertation, Rashtrasant Tukadoji
Maharaj Nagpur University).
Park, Y. W., & Park, Y. J. (2021). Corporate Strategy for
Corporate and Ecosystem Sustainability. In
Corporate Social Responsibility and Entrepreneurship
for Sustainability (pp. 71-79). Springer, Singapore.
Write a Discussion/ Recommendations and Conclusion for the
paper attached
Discussion/Recommendations – In this section, you should
apply your results to the specific problem under investigation in
a more subjective way. List and discuss any recommendations
developed in response to your research and results pertaining to
the problem under investigation. “Organization X should
identify individuals high in emotional intelligence as potential
leaders within the organization. Training and development
programs can aid in this effort and reduce the randomness that
is currently present in leader emergence and development within
the firm…”
Conclusion – a concise conclusion to the paper.
Fighting Food Insecurity From The Top
How can the USDA and THE FDA can help through the US
Food Code?
United States Department of Agriculture and The Food and
Drug Administration
1
US Food Insecurity has surpassed 50 Million
During the COVID pandemic, Food Insecurity in America grew
from 35 Million to over 50 Million (rts.com).
2
What is being done?
SOUP KITCHENS
FOOD PANTRIES
DONATIONS
MONETARY
GROCERS
RESTAURANTS
Locally in Champaign, IL, there is one soup kitchen and a half
dozen food pantries and numerous churches receiving donations
to pass out to the food insecure.
3
Results of What is being done
Daily bread soup kitchen feeds 400 people two meals a day.
Champaign has 30,000 citizens suffering from food insecurity
29,600 citizens are left food insecure and relying on food
pantries daily to provide sustenance with no guarantee of
availability.
4
What is our government doing?
Pure Food and Drug act (1906) – pure ingredients in food
US Food Code provides guidelines to sale of food
Comprehensive resource for food recovery programs
Bill emerson act
Federal food donation act
Us food loss and waste 2030 champions
Results of What Our Government is Doing
The US Food Code provides standards and regulations of
handling food from farm to the table.
Bill emerson act provides companies from civil and criminal
liability to the foods that are donated to non-profits.
Federal food donation act provides further protection of liability
for companies
USDA and EPA(environmental protection agency) encourage a
50% reduction by 2030 by creating The US Food and loss 2030
champions.
NRA(National restaurant Association), EPA, and Feeding
America create the Comprehensive resource for food recovery
programs.
The 768 page US Food Code has less than one page devoted to
food recovery to help the food insecure. The Comprehensive
Resource is 51 pages devoted to increasing the food supply to
the food insecure.
6
Why has Food Insecurity Worsened?
For over 50 years, the USDA and FDA have concentrated their
efforts on the safeties of Food from farm to table.
The efforts for food to go from table to salvaged have been
minimal.
Even the Comprehensive Resource for Food Recovery Programs
is a concentration on building relationships from
grocer/restaurant to Food Distribution Organization (FDO).
How can we fix the Problem?
Food Insecurity has worsened while the US and the world places
greater amount of food into landfills. In 2020, during the
pandemic, the US discarded 40 million tons of food. With 50
million suffering from food insecurity, this equates to 4.38 #s of
food a day for each person suffering!!!
8
How do we get less of this?
And more of this?
40% of food waste is accounted for my grocers, restaurants and
food service companies. If we can reduce half of that, we will
create 0.8 #s of food per day for each person suffering from
food insecurity.
9
How government has helped?
Vermont passed the Universal Recycling Law banning three
materials from trash bins
‘Blue bin’ recyclables
Leaf and yard debris
Food scraps
As of July 1st, 2020 every Vermont citizen must keep ALL food
scraps out of the trash!!!
10
What is next?
FDA separates into Food Administration (FA) and Drug
Administration (DA)
FDA is too big
16 board members and 3 with food experience
Only one ‘Food’ board member is Full-Time
DA creates departments that concentrate on different steps of
the food process with one concentrating on Salvaging Foods
Education of Restaurant Managers of certification of Salvaged
Food.
Can this be done?
The US Food Code currently states that food that has been held
warm for four hours must be discarded. Why can food at 3:59
be sold for profit; however, food at 4:00 is not salvageable.
In 2017, the Illinois Department of Health instituted a
requirement for one manager in each restaurant/facility to have
Allergen Awareness Training. Why can we not train the
salvaging of food?
With training, this food could go from being servable to
salvageable; creating a considerable amount of food that can
help tackle our food insecure problem.
Why the US Gov’t and the Food Code are the answer?
US Government(new DA)
Local solutions are limited and have been unsuccessful
Greater problems require greater solutions
The new DA would have greater resources to help tackle the
problem
Making actions into laws guides citizens to act morally and
ethically correct.
Churches can only do so much, we need governmental bodies
effectively tackling the food insecurity issue.
The Food Code
The Food Code’s guides and standards are part of the problem
If they were a part of the problem, the Food Code can and
should be a part of the solution
Governmental guidelines provide methodologies for managers
to utilize in the salvaging of food.
Governmental guidelines of the FDOs can increase the quality
and the quality of the food prepared as well as the delivery of
the foods to those in need.
If Americans could help tackle the Food Insecurity problem
from the top down, we could see significant progress in the
lives of our neighbors!!!
13
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Results Section
Donte Walker
Department of Business and Technology, William Woods
University
BUS 585- Intergrated Studies and Business Administration –
Fall 2 2022
Dr. Leathers
Socialist market economy is distinct from 'market economy' due
to the CPC's continued authority over national policymaking,
which allows the country to follow its socialist growth path.
Deng Xiaoping and the CPC shifted their attention from culture
(Mao) to advancing the material productive forces, resulting in
the socialist market economy. The CPC uses a combination of
public and private actors to steer the Chinese socialist market
economy in the direction it wants to go. In this sense, the state
plays a considerably more significant role than it would in a
free market economy. As was clear from the start when MNCs
began relocating to China in the 1980s and 1990s, the Chinese
government is picky about the kind of businesses and industries
it allows to operate within its borders (Feng & Li, 2019). When
China first opened its doors to the automotive sector, it did so
after engaging in thorough negotiations with various
international manufacturers and licensing only those projects
deemed to be beneficial to China's development. The Chinese
were eager to master automobile production because of the
historical significance of the automotive sector to the country's
economy.
When an international company forms a joint venture with a
Chinese partner, the international company will often share its
proprietary know-how with the Chinese partner and teach the
Chinese partner how to use it. However, there are certain
exceptions to this rule. Despite the Chinese partner's contractual
and WTO obligations to cease such production, several
complaints have been lodged about the Chinese partner's
continued production of the same items after a JV has been
dissolved. This is despite the fact that the Chinese partner is
required to cease such production (Feng & Li, 2019). Since
September 2017, the Chinese government has been waging a
campaign to improve the country's protection of intellectual
property rights (IPR), in which they have pledged to crack down
on activities that infringe on intellectual property rights and to
increase judicial and administrative safeguards. Despite this, the
United States has continued to lodge a complaint against China
at the World Trade Organization (WTO) regarding the country's
weak protection of intellectual property rights (IPR). Due to the
high expense of research and development in the automobile
sector, protecting their intellectual property rights is absolutely
necessary in order to keep their advantage over their
competitors. The industry is currently going through a time in
which research and development is more important than it has
ever been before since driverless vehicles and NEVs seek to
shake things up (Wang, 2022). There is a compelling theoretical
case in favor of selecting an entry strategy that takes into
account the requirement to protect intellectual property. The
development of electric and hybrid vehicles is the focus of one
of the research and development facilities that GM maintains in
China. This center is a joint venture between GM and SAIC.
The fact that China has the most people of any country in the
world makes it a very appealing market for automobile
manufacturers. The rise in foreign direct investment (FDI) in
China can be attributed to the country's sizable consumer
market as well as its robust economic growth, which reached its
all-time high of $290 billion in 2013 before falling to $174
billion in 2016 (Foreign direct investment, net inflows (BoP,
current US$), no date) (Wang, 2022). Even though the pace is
much slower, multinational firms from other countries are
continuing to make significant investments in China. China has
been the largest market for vehicles globally since 2009, and
sales have only climbed since then, so automakers have been
increasingly looking to the country to enhance their bottom
lines. Since 2009, China has been the largest market for
vehicles worldwide.
References
Feng, K., & Li, J. (2019). Challenges in reshaping the sectoral
innovation system of the Chinese automobile industry. In
Innovation, Economic Development, and Intellectual
Property in India and China (pp. 415-438). Springer, Singapore.
Wang, K. H., Su, C. W., Xiao, Y., & Liu, L. (2022). Is the oil
price a barometer of China's automobile market? From a
wavelet-based quantile-on-quantile regression perspective.
Energy,
240, 122501.
Methodology Section
Donte Walker
Department of Business and Technology, William Woods
University
BUS 585- Intergrated Studies and Business Administration –
Fall 2 2022
Dr. Leathers
Quantitative and qualitative approaches are the two basic types
of research methods that should always be utilized in the field
of research. Quantitative methods focus more on numerical data
and provide and analyze that data, whereas qualitative methods
place more emphasis on narrative data and provide and analyze
that data. Both quantitative and qualitative methods collect and
analyze data (Basias & Pollalis, 2018). The primary objective of
this research paper written in the style of a case study is to
investigate the success that Honda has had in globe. This
investigation will focus on the company's entry modes, the entry
obstacles, and the trade barriers, as well as how these aspects
influence Honda's decision-making. As a direct consequence of
this, the research approach that was taken was qualitative. Case
studies can be developed by conducting in-depth analyses of
events, and qualitative research can be of assistance by shining
light on the conditions in question as they exist in the real
world. Any study of social phenomena that involves the
researcher using a wide variety of empirical data to assess a
case in order to obtain a deeper understanding of the subject
matter is considered to be qualitative research. In order for the
researcher to obtain a comprehensive comprehension, this study
takes a qualitative approach to Honda's research in order to
conduct the investigation.
PESTEL, which is one of the most effective tools for
conducting macro-environment analysis for the purposes of
conducting company operations, as well as the theories of joint
venture and exporting and totally owned subsidiary, will serve
as the initial foci of this article. Next, as a case study, we'll
investigate Honda Motors to find out more about the business's
approach to market entry. In this situation, we will use the OLI
paradigm to investigate Honda's entry mode strategy, after
which we will provide an analysis of our findings as well as
some suggestions for how the corporation might better its future
expansion into new markets (Borgstede & Scholz, 2021). The
techniques chapter devotes the majority of its discussion to the
overarching research perspective. The paper will start with an
introduction, then move on to a description of the research
methodologies and strategies that were utilized, followed by the
data collection, analysis, and interpretation sections. At long
last, the report will wind down with a summary of any pertinent
conclusions and recommendations.
The primary objective is to pinpoint Honda Motors' technology
utilization across its numerous entry modes in various markets.
From there, the objective is to construct a more solid basis upon
which to advise the company on the most appropriate entry
mode for its future global operations. Ultimately, the goal is to
advise the company on the most effective entry mode for its
future global operations. In light of the fact that this is of the
utmost significance when it comes to the process of providing
suggestions for the future operations of Honda all over the
world, we will be doing research into the regulatory
environment and entry difficulties.
In the process of doing research, both deductive and inductive
thinking are utilized to an essential degree. According to this
definition, the deductive method of inquiry comprises creating
hypotheses in light of previously established scientific
principles and theories, testing those hypotheses, and drawing
legitimate and, at times, paradoxical conclusions from the
results of those tests. In direct opposition to this is the
inductive method, which centers on the accumulation and
analysis of empirical facts in order to reach conclusions about
the world and, ultimately, on the generation of novel concepts
(Basias & Pollalis, 2018). Because qualitative research is
naturally more subjective and able to adapt to altering priorities
throughout the course of the research process, the inductive
method finds widespread application within this methodology.
Since empirical data, statistics, yearly reports, and corporate
websites were all reviewed in order to obtain information, the
inductive technique was applied to produce this paper. This
material was then studied in order to provide the researcher
with an in-depth acquaintance with Honda.
References
Basias, N., & Pollalis, Y. (2018). Quantitative and qualitative
research in business & technology: Justifying a suitable
research methodology.
Review of Integrative Business and Economics
Research,
7, 91-105.
Borgstede, M., & Scholz, M. (2021). Quantitative and
Qualitative Approaches to Generalization and Replication–A
Representationalist View.
Frontiers in psychology,
12, 605191.
Introduction, Problem Statement, and Literature Review
Donte Walker
Department of Business and Technology, William Woods
University
BUS 585- Intergrated Studies and Business Administration –
Fall 2 2022
Dr. Leathers
November 20, 2022
Introduction
Japanese automaker Honda Motor Co., Ltd. is a publicly traded
company. Unlike its competitors, it has not been limited to a
single product over the course of its decades-long reign over the
global market. The business's reach spans many fields, making
it highly versatile. The corporation is best known for
manufacturing automobiles, airplanes, motorcycles, and power
equipment (Badhon, 2019). The Honda Motor Company, Ltd.,
was established in 1959, and since then it has become a
worldwide leader in the production of bikes and accessories.
Honda Motor Company, one of the world's largest automakers,
offers a diverse lineup. For Honda, the United States and
Canada are the primary sources of revenue (Muniandy et al.,
2020). Honda's products have evolved throughout the years, and
the corporation today provides a wide variety of cutting-edge
innovations. But competition is heating up as more businesses
set their sights on the global market.
Mr. Honda developed the idea of attaching an engine to a
bicycle. There was an immediate demand for Mr. Honda's
motorcycles. With the help of his friends, he was able to raise
enough money to buy the materials necessary to build a
motorcycle with significantly more range (Badhon, 2019). His
primary means of financial support were motorcycles and
bicycles, which he sold to black marketers and small cycling
enterprises. Company founder Soichiro Honda has had a passion
for cars since he was a young boy (Bahety et al, 2018). At the
Art Shokai tuning company in Japan, he filled in as a specialist,
making adjustments to cars and entering them in competition.
Since he had no formal architectural training, he worked on a
cylinder layout to pitch to Toyota. After receiving negative
feedback on his preliminary design suggestions, Soichiro spent
a great deal of time honing and completing his final design.
After some years, Toyota awarded him a contract, and he built a
factory to produce pistons for the corporation. Unfortunately,
the factory was destroyed by an earthquake. Because of the
wartime fuel shortage, Honda was unable to drive his car,
However, the idea of mounting a small motor on his bicycle
sparked widespread interest (Bahety et al., 2018). Soon after, he
established the Honda Technical Research Institute to focus on
developing and producing lightweight, 2-cycle cruiser engines.
Soichiro got enough capital to design and produce his first
motorbike, the Honda Cub, by enlisting the support of 18,000
bicycle shop owners across Japan in the struggle to rebuild a
country ripped apart by World War II. Founded in this year,
Honda Motor Company would soon grow to become the largest
motorcycle manufacturer in the world. The T360 pick-up truck,
manufactured by Honda and released in August 1963, was the
first manufacturing automobile anywhere in the globe (Badhon,
2019). The automobile was powered by a 356 cc gasoline
straight-4 engine and qualified for the more affordable Kei car
tax category. After the T360, in October 1963, Honda began
production on the S500 sports car, their first mass-produced
automobile (Badhon, 2019). A chain drives the rear wheels,
recalling Honda's origins in the motorcycle industry.
According to company’s goal statement, Honda strives to
"provide products of the best quality, yet at a reasonable price
for international customer satisfaction while keeping a global
perspective." The statement demonstrates the company's
commitment to provide high-quality items at competitive prices.
The structure is comprised of the following element:
Improvement of life and Improving affordability (Badhon,
2019). Since the beginning, Honda has been committed to
producing high-quality products, giving them an edge on the
competition. Honda's success can be directly attributed to its
corporate statements.
To "service people globally with the joy of enhancing their
life's potential - Lead the advancement of mobility and empower
people everywhere to enhance their daily lives," as stated by
Honda, is the company's stated mission. Honda has been at the
forefront of ground-breaking designs that enhance mobility
across all modes of transportation, including land, air, and sea
(Badhon, 2019).
While Hondas firm limited has expanded into the automobile
industry and is now the third largest carmaker in Japan, the
company orginally began producing bikes and is currently the
largest motorbike producer in the world. The United States is
their best market and where the company sees the most success.
Most of Honda's revenue comes from selling automobiles,
including the Accord, Civic, CR-V, and the high-end Acura
brand (Bahety et al., 2018). The Accord is the country's second
most popular car purchase, yet it tops the list of most stolen
cars, making it the most "in-demand" automobile in the country.
Some of Honda's motorcycle offerings include the Super Cub,
Foresight, and Shadow 750. In addition to agricultural and
industrial gear, portable generators, outboard motors, and all-
terrain vehicles are produced by the company's power products
section, which contributes to the company's annual revenues
(Bahety et al., 2018).
The market challenges experienced by Honda are the primary
focus of this essay. Honda Motors employees in China wanted
to form their own union so that they could have a voice in the
company. In addition, they sought a raise in pay and benefits.
Nearly 1700 employees went on strike when the corporation
refused to meet their demands. Management now faces a critical
issue as a result of this predicament (BHARGAVI). The
company's sales and revenue dropped, and Honda had trouble
finding enough people to work in its factories. It also became a
political issue, which hurt the company's reputation in the eyes
of its target audience.
Literature Review
According to Badhon (2019), one of the most prestigious
product segments in terms of revenue is the automotive sector, a
term encompassing a wide range of businesses and trade groups
involved in the design, development, manufacture, marketing,
and exchange of motor vehicles, towed vehicles, two-wheeled
vehicles, and mopeds. It's a major source of international trade
and economic growth (Badhon, 2019). The term "automotive
industry" typically excludes businesses whose primary product
is a written providing to the support of autos and 1 subsequent
thing rounded up to the end-user, such as repair shops and fuel-
up stations.
As per Bahety et al (2018), there is a massive market for high-
tech automobiles. Many American businesses rely on
production, distribution, and maintenance. To compete in the
luxury market, Honda removed all references to the company's
origins from its vehicles. Customers did not connect Honda's
rising prestige with the company as a whole (Bahety et al,
2018). Honda has finally released an encouraging product, and
the success of this launch was measured by the company's
profitability, market share, and the success of the new model
thus far. The success of the expansion is heavily reliant on the
advertising strategy that backs it. In light of these gains, Honda
has satisfied the criteria for advancement necessary for vertical
growth. The company credits its successful advertising strategy,
which it says is vastly different from the advertising strategy it
employs for its non-luxury businesses (Bahety et al, 2018).
Honda enjoyed a perfect trait-relationship with its customer
base in terms of quality and consistency, but the renown-
relationship was less than stellar. Honda Motor Company felt it
necessary to counter the negative glory relationship of the
parent brand, in which the parent brand's name did not
automatically convey prestige in the high-end market (Bahety et
al, 2018). Honda came up with the Acura brand to combat this
problem, and it has been incredibly successful for the company.
There have been more seamless openings in the supply chain as
a result of the increased global trade of vehicle parts according
to Muniandy et al (2020). Pakistan has swapped vehicles with a
number of different economies. These days, it's not unusual at
all to see recycled cars or auto parts manufactured in Asia or
Europe. Due to their higher cargo costs, the value of imports
has not yet diminished the advantage of local manufacturers
(Muniandy et al, 2020). However, in Asia, this sort of trade is
prohibited because of the high interest rates in countries like
China and India. Auto manufacturing is the sixth largest
assembly sector in Pakistan. During the past few years, it has
experienced explosive growth, with year-over-year increases of
over 100%. Every year, the automotive industry adds over $6
billion to the US economy. It generates roughly $0.82 billion in
revenue for governments through indirect charges, and it
directly creates 215k jobs. At the same time, this region
contributes at least 16% to Pakistan's manufacturing sector
(Muniandy et al, 2020). The auto industry in Pakistan is quickly
rising to prominence as a driver of the country's economic
growth and international trade because to the country's plethora
of opportunities for workplace innovation and forward and
backward connections in allied businesses. Suzuki, Honda, and
Toyota are the three most well-liked automakers in Pakistan,
accounting for 62%, 9%, and 28% of the market share,
respectively.
According to Bhargava & Chandravathi, Honda operates in
Pakistan's automobile sector under varying theories of
diversification and specialized cooperative activity with leading
global fabricates. It is also argued that there is a strong
rationale for buying in from the nearest neighbors if the buy in
of completed products is to be established at a greater value.
The automobile industry in Pakistan might be considered to be
under distinct control (Bhargava & Chandravathi). There's no
denying that the top three automakers control the vast majority
of the industry. It's also more likely that prices in an
oligopolistic market will be set in stone. This rigidity could
manifest itself if, for example, a price hike by one manufacturer
isn't matched by others, or if a price cut by one manufacturer
leads to a price cut across the board. Honda Pakistan brought
this to customers' attention by offering price cuts of PKR
30,000 on the Honda Civic and PKR 40,000 on the Honda City
(Bhargava & Chandravathi). For better or worse, fascinating
times lie ahead for the auto industry and the three Japanese
automakers in Pakistan. Honda, the smallest of the big three
automakers, is now the brightest example. The company has
grown steadily, utilizing only 50% of its present capacity, but
its share of the automobile market has increased, from 9% in
2009 when it first began selling vehicles in the country to 20%
in 2014.
As per Boiral et al (2022), it’s possible that Honda may become
the industry leader in terms of both money and progress. In the
past year alone, its stock price has risen dramatically. The
company's redesign and introduction of a new Civic have been
well received by consumers (Boiral et al, 2022). The most
current data available (7MFY17) reveal that consolidated deals
are up 51% year-on-year, and that January 2017 witnessed the
most significant deals the company has sold in a month to date.
Five-one percent of Honda's production is local.
According to Thomas (2019), the distribution industry relies
heavily on achieving stronger restrictions, but this has become
increasingly difficult due to surging crude material imports.
Import prices will rise in response to any change in the dollar's
parity with the rupee. Retailers have already begun petitioning
for a waiver of the RD on steel component imports. It is
impossible to construct confinement without massive volumes
(Thomas, 2019). Each iteration of the model and layout
necessitates a fresh round of innovation, which in turn
necessitates massive investments of billions of rupees.
According to Chahande (2022), low numbers of coordinated
efforts were another reason for not achieving desired results
towards indigenization. Pakistan also pays a fraction of the cost
that Malaysia, Thailand, Vietnam, and India do for eminences
and specialized charges. Even that is difficult due to standard
and federal spending regulations.
As per Park (2021), Honda of Pakistan is a joint venture
between the Japanese and Pakistani branches of the firm. As
was just described, Honda operates in Pakistan's automotive
sector via two large, combined ventures, both of which are tied
to the Atlas Group. Perhaps most interestingly, the Atlas Group
owns a share in Honda in Pakistan exceeding 50%.
References
Badhon, M. (2019). Analysis on Market and Business Strategy
of Honda, DHS Motors Limited.
Bahety, S., Moffitt, B., Pruchnik, W., & O’Rourke, J. S.
(2018).
Honda motor company: communication and the takata
airbag crisis. The Eugene D. Fanning Center for Business
Communication, Mendoza College of Business, University of
Notre Dame.
Muniandy, A. M., Kee, D. M. H., Izwan, S., Imran, M., Al-
Amin, A. A., Kumar, S., & Singh, S. (2020). The key success
factor: A study of Honda Motor.
Journal of the Community Development in Asia
(JCDA),
3(2), 67-77.
BHARGAVI, T., & CHANDRAVATHI, K. A STUDY ON
COMPARATIVE FINANCIAL STATEMENT ANALYSIS ON
HERO MOTOR CROP.
Boiral, O., Brotherton, M. C., Rivaud, L., & Talbot, D. (2022).
Comparing the uncomparable? An investigation of car
manufacturers' climate performance.
Business Strategy and the Environment,
31(5), 2213-2229.
Thomas, V. J., & Maine, E. (2019). Market entry strategies for
electric vehicle start- ups in the automotive industry–Lessons
from Tesla Motors.
Journal of Cleaner Production,
235, 653-663.
Chahande, M. S. S.(2022)
“A study of various purches factor of Yamaha scooter
and its impact on buying behavior vis-à-vis other competition in
the segment (Doctoral dissertation, Rashtrasant Tukadoji
Maharaj Nagpur University).
Park, Y. W., & Park, Y. J. (2021). Corporate Strategy for
Corporate and Ecosystem Sustainability. In
Corporate Social Responsibility and Entrepreneurship
for Sustainability (pp. 71-79). Springer, Singapore.
Final Project Presentation Each student will prepare a Power
Point presentation covering the major sections of their final
project report and use the notes section of the Power Point to
provide a narrative or script for their final presentation.
Students will use no more than 12-15 slides to present their
information and will follow the provided slide outline. The
presentation and narrative must be concise yet informative
enough to convey the major points of the final project report
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JP Morgan Chase The Balance Between Serving Customers and Maxim.docx

  • 1. JP Morgan Chase: The Balance Between Serving Customers and Maximizing Shareholder Wealth Penelope Bender William Woods University BUS 585: Integrated Studies in Business Administration Dr. Leathers Abstract This paper investigates why JP Morgan Chase and other financial institutions struggle to balance client interests over maximizing wealth. It is an exploratory study done through literature review. Often financial institutions, like JP Morgan, put profits ahead of the interests of those they serve. The paper contributes to better understanding of corporate culture. This paper investigates why JP Morgan Chase and other financial institutions struggle to balance client interests over maximizing shareholder wealth. This exploratory study is done through a literature review to answer why financial institutions, specifically JP Morgan, often put profits ahead of those they serve. The study will provide evidence of the complex nature of balancing client interests over maximizing shareholder and individual wealth and the need for tighter internal and external oversight. This paper contributes to a better understanding of why corporate culture encourages profit over stakeholders’ interests.
  • 2. 2 Research Question Why does JP Morgan Chase and other financial institutions struggle to balance client interests over maximizing shareholder wealth? Employees of JP Morgan Chase and other large banks work in their best interests to increase wealth and succeed by meeting management goals. However, because of the complex nature of large banks, an individual(s), unethical behavior can go unchecked. 3 Problem Statement JP Morgan Chase competes globally and faces competition from other large banks in the US and abroad. JP Morgan Chase is part of a complex system of regulation, self-interests, and wealth creation. The interests of shareholders and investors is sometimes overshadowed by agents working in their own best interests. Financial markets are a complex web of interests, and because of opportunities for individual profits, regulating individual’s actions without stricter regulations and internal oversight is impossible. The study is not meant to be a moral or ethical analysis but merely why the complex relationship exists and will continue to exist in capitalist society. This paper contributes to a better understanding of why capitalism or financialism’s (Clarke, 2014) fundamentals encourage wealth creation. Financial
  • 3. markets are a complex web of interests, and because of opportunities for individual profits, regulating individual’s actions without stricter regulations and internal oversight is impossible. 4 Literature Review The literature review showed a connection between self- interests, regulators, competition, and risk, which all lead to a complex system of conflicting agendas. 5 How Self-Interests Influence Behavior Ross (1973) explains that all employment relationships are agency relationships and moral hazards are generally due to such relationships. In an SEC case against JP Morgan Securities (JPMS), JP Morgan acknowledged violating federal securities laws from January 2018 to November 2020, allowing traders to communicate about securities through a texting app, WhatsApp, and personal emails. Corporate governance theory explains how leverage influences agency costs and firm performance (Berger & Bonaccorsi di Patti, 2006). There are always conflicting goals within an organization, but the problem is when the individual’s goals (because of compensation packages) become part of the institutional culture. It becomes a “theory of relationships embedded in
  • 4. social structures featuring social norms” (Mitnick, 2021). 6 Financial Standards and Regulations The financial crisis was during deregulation resulting in devastating losses and economic upset. Born (2011), who served on the Financial Crisis Inquiry Commission (FCIC), believes the support for self-regulating reforms caused the risk in the financial system. Lobbying by large financial institutions affects regulations. Lambert (2017) found that 44.7 percent of regulators do not seek enforcement against banks that lobby. Lobbyists have influenced the effects of the Dodd-Frank since it was passed in 2010. Ban and You (2019) studied lobbying regarding the Dodd-Frank Act. Their findings support other research by Lambert (2017) on their influence on policymakers. They found that the number of meetings with the SEC and lobbying reports were positively correlated to citations on the final rules. 7 How Competition Affects the Financial Markets Competition often reduces banking stability by “squeezing profits,” increasing pressure on banks’ to make risker decisions to increase profit (Corbae & Levine, 2018). Another study by Degl’Innocenti, Fiordelisi, Girardone & Radica (2019) also found evidence supporting competition leading to the fragility in the market. Bannier, Feess, and Packham (2013) studied how executive compensation and competition in the market for such talent increased excessive risk-taking beyond the interest of the board
  • 5. and its shareholders. When risk-taking is rewarded because of talent competition, it results in excessive risks to the market. Employees in this category have a more significant stake in the company and may feel privileged to make their own rules. For example, this happened when managers of JP Morgan Chase allowed employees to use “WhatsApp” to evade regulators (Franck & Son, 2021). 8 Risks to the Financial Market Research done by Erturk (2016) argues that no amount of regulation will safeguard against risk until the shareholder value business models are changed. Bell and Hindmoor (2017) did a study focusing on the information before 2005 and after (up to 2015) and found that although regulation controlled leveraged financial trading, it has not changed the dynamics of the banking industry. The board of directors and the CEO are at the center of controlling internal risk. The board’s role is to ensure “bank stability by monitoring executives” and controlling unnecessary risk-taking (Srivastav & Hagendorff, 2016). Boards have an influence on executive behavior and have control of that behavior through compensation structure. For example, research shows that after deregulation, US bank boards created compensation packages with “option-based equity incentives to encourage risk-taking” (Srivastav & Hagendorff, 2016). To control risk-taking and encourage long- term growth, boards could tie compensation to incentives that
  • 6. encourage bank stability. 9 Methodology This paper’s analysis is based on written sources. It covers four areas: agency theory behavior, regulations (external and internal), competition and economic risk. It looks at JP Morgan and other large financial institutions' unethical and illegal actions to make sense of the complex relationships. Explores why regulators are unsuccessful at controlling risk. Explores how competition affects the actions of financial institutions. Finally, looks at how actions pose risks to the economy. Traders are often motivated by self-interest to concentrate on short-term profits and personal wealth creation. Jasper et al.(2005) talks about the tensions between individuals’ strategies (opportunism) and institutional control (restraint). Corporate governance theory explains how leverage influences agency costs and firm performance (Berger & Bonaccorsi di Patti, 2006). 10 Results This exploratory study provides evidence of the complex nature of balancing agents’ and principals’ interests. This analysis found conflicting goals between regulatory agencies and corporate governance. Regulatory agencies aim to control risk and protect the economy from a financial crisis, which conflicts with the shareholder management model that aims to increase equity and share price.
  • 7. Research by Srivastav and Hagendorff (2016) discusses the need for additional risk management. To reduce risk in times of crisis, we should design reforms to increase the probability that the real economy remains insulated (Geithner, 2017). 11 Discussion This research can help to better understand the complex nature of the financial industry, regulatory agencies, corporate governance, and risk. Managers can benefit from understanding the importance of corporate governance to control internal risks and corporate culture. The gap areas of this study was posed by the amount of current research available on agency theory and corporate governance in banking. Future research should focus on addressing internal governance and regulatory policies that deter illegal actions and promote long-term stability in the market. The literature review shows the complex nature of banking and the risks of deregulation and competition. This paper reviews prior work and gives insights for further research on agency theory, governance, competition, and risk management. The number of academic studies on banking limited the scope of this paper 12 Conclusion
  • 8. The research shows the need for stronger external and internal regulations in financial institutions. Failures in the banking system have a ripple effect throughout the economy. Banks have government guarantees which may increase risk- taking (Srivastava & Hagendorff, 2016). Governance is necessary to control the risks. This paper aims to understand the complex nature of the financial industry, the underlying culture of wealth creation, regulatory struggles, and economic risks. After the financial crisis, it was clear that banking regulations were insufficient to control risk and that deregulation and self-governance were inefficient. The research shows the need for stronger external and internal regulations, a change in the corporate culture, and penalties that deter illegal actions. 13 Works Cited Ban, P. & You, H. Y. (2019). Presence an influence in lobbying: Evidence from Dodd-Frank. Business and Politics. 21(2), 267- 295. https://www.cambridge.org/core/journals/business- and-politics/article/presence-and-influence-in-lobbying- evidence-from- doddfrank/C75E6EFC1109A84676EF6ABD0B2BC588 Bannier, C., Feess, E., & Packham, N. (2021, February 27). Competition, bonuses, and risk-taking in the banking industry. Review of Finance, 17(2), 653-690. Https://doi.org/10.1093/rof/rfs002 Batson, C. D. & Thompson, E. R. (2001, April). Why don’t
  • 9. moral people act morally? Motivational considerations. Current Directions in Psychological Science, 10(2), 54-57 Bell, S. and Hindmoor, A. (2017). Are the major global banks now safer? Structural continuities and change in banking and finance since the 2008 crisis. Review of International Political Economy. ISSN 0969-2290 https://doi.org/10.1080/09692290.2017.1414070 Berger, A. and Bonaccorsi di Patti, E. (2004). Capital structure and firm performance: A new approach to testing agency theory and an application to the banking industry. Journal of Banking & Finance, 1065-1102 Only references from this paper have been included. A complete list of references is at the end of my thesis. 14 Works Cited Borch, C. (2016). High-frequency trading, algorithmic finance, and the Flash Crash: Reflections on eventalization, Economy and Society, 45(3-4). 350-378, https://doi.org/10.1080/03085147.216.1263034 Born, B. (2011). Foreword: Deregulation: A major cause of the financial crisis. Harvard Law & Policy Review, 5(2), 231-243. Bradshaw, C. (2020). Credit rating agencies: regulation and liability. Lewis & Clark Law Review, 24(4), 1489-1526. Chen, J., Zhang, H. Xiao, X, & Li, W. (2011). Financial crisis and executive remuneration in banking industry: An analysis of five British banks. Applied Financial Economics, 21(23), 1779- 1791. https://eds-p-ebscohost- com.wwu.idm.oclc.org/eds/detail/detail?vid=2&sid=931d8bac- 1e06-4efa-b792-
  • 10. 1be9fc77e84a%40redis&bdata=JnNpdGU9ZWRzLWxpdmU%3d #AN=64853456&db=buh Clarke, T. (2014, March). The impact of financialization on international corporate governance: the role of agency theory and maximizing shareholder value. Law and Financial Markets Review.8(1), 39-51. https://eds-s-ebscohost- com.wwu.idm.oclc.org/eds/detail/detail?vid=6&sid=544ded74- c955-4ff4-8ddc- ac62e7a7073f%40redis&bdata=JnNpdGU9ZWRzLWxpdmU%3d #AN=95697283&db=asn The references from this paper are too long for the presentation, therefore, only works cited in the presentation are included. 15 Works Cited Clayton, N. (2015). Failures in the prudential regulation of banks in the UK and US: Will the lessons be learn? Law and Financial Market Review, 9(2), 130-153. Corbae, D. & Levine, R. (2018, September 14). Competition, Stability, and Efficiency in Financial Markets. https://faculty.haas.berkeley.edu/ross_levine/Papers/JH091418.p df Dowd, K. (2009). Moral hazard and the financial crisis. Cato Journal, 29(1), 141-166. https://eds-p-ebscohost- com.wwu.idm.oclc.org/eds/pdfviewer/pdfviewer?vid=33&sid=2 095a84d-21ae-4adb-832b-9970e0562211%40redis Erturk, I. (2016). Financialization, bank business models and the limits of post-crisis bank regulation. Journal of Banking Regulation. 17(1/2), 60-72. Geithner, T. F. (2017). Are we safe yet? How to manage
  • 11. financial crises. Foreign Affairs, 96(1), 54-72. He, W. P. (2012). Banking regulation in China: What, why, and how? Journal of Financial Regulation & Compliance, 20(4), 367-384. https://doi- org.wwu.idm.oclc.org/10.1108/13581981211279336 Hill, C. & Jones, T. (1992, March). Stakeholder-Agency Theory. Journal of Management Studies, 29(2), 131-154. 16 Works Cited Hindmoor, A. & McConnell, A. (2013). Why didn’t they see it coming? Warning signs, acceptable risks, and the global crisis. Political Studies, 61, 543-560. Jasper, J., Abolafia, M. & Dobbin, F. (2005). Structure and Strategy on the Exchanges: A Critique and Conversation About Making Markets. Sociological Forum, 20(3), 473-486. Jensen, M. C. & Meckling, W. H. (1976). Theory of the Firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305-360. Menand, L. (2018). Too big to supervise: The rise of financial conglomerates and the decline of discretionary oversight in banking. Cornell Law Review, 103(6), 1527-1588. Mitnick, B. (2021). The theory of agency redux. Academy of Management Discussions, 7(2), 171-179. Ross, S. A. (1973). The Economic Theory of Agency: The Principal’s Problem. The American Economic Review, 63(2), 134-139. Srivastav, A. & Hagendorff, J. (2016). Corporate governance and bank risk-taking. Corporate Governance: An International Review, 24(3), 334-345.
  • 12. Zeidan, M. J. (2012). Effects of illegal behavior on the financial performance of US banking institutions. Journal of Business Ethics, 112(2), 313-324. 17 image1.jpeg image2.png image3.emf Results Section Donte Walker Department of Business and Technology, William Woods University BUS 585- Intergrated Studies and Business Administration – Fall 2 2022 Dr. Leathers
  • 13. Socialist market economy is distinct from 'market economy' due to the CPC's continued authority over national policymaking, which allows the country to follow its socialist growth path. Deng Xiaoping and the CPC shifted their attention from culture (Mao) to advancing the material productive forces, resulting in the socialist market economy. The CPC uses a combination of public and private actors to steer the Chinese socialist market economy in the direction it wants to go. In this sense, the state plays a considerably more significant role than it would in a free market economy. As was clear from the start when MNCs began relocating to China in the 1980s and 1990s, the Chinese government is picky about the kind of businesses and industries it allows to operate within its borders (Feng & Li, 2019). When China first opened its doors to the automotive sector, it did so after engaging in thorough negotiations with various international manufacturers and licensing only those projects deemed to be beneficial to China's development. The Chinese were eager to master automobile production because of the historical significance of the automotive sector to the country's economy. When an international company forms a joint venture with a Chinese partner, the international company will often share its proprietary know-how with the Chinese partner and teach the Chinese partner how to use it. However, there are certain exceptions to this rule. Despite the Chinese partner's contractual and WTO obligations to cease such production, several complaints have been lodged about the Chinese partner's continued production of the same items after a JV has been
  • 14. dissolved. This is despite the fact that the Chinese partner is required to cease such production (Feng & Li, 2019). Since September 2017, the Chinese government has been waging a campaign to improve the country's protection of intellectual property rights (IPR), in which they have pledged to crack down on activities that infringe on intellectual property rights and to increase judicial and administrative safeguards. Despite this, the United States has continued to lodge a complaint against China at the World Trade Organization (WTO) regarding the country's weak protection of intellectual property rights (IPR). Due to the high expense of research and development in the automobile sector, protecting their intellectual property rights is absolutely necessary in order to keep their advantage over their competitors. The industry is currently going through a time in which research and development is more important than it has ever been before since driverless vehicles and NEVs seek to shake things up (Wang, 2022). There is a compelling theoretical case in favor of selecting an entry strategy that takes into account the requirement to protect intellectual property. The development of electric and hybrid vehicles is the focus of one of the research and development facilities that GM maintains in China. This center is a joint venture between GM and SAIC. The fact that China has the most people of any country in the world makes it a very appealing market for automobile manufacturers. The rise in foreign direct investment (FDI) in China can be attributed to the country's sizable consumer market as well as its robust economic growth, which reached its all-time high of $290 billion in 2013 before falling to $174 billion in 2016 (Foreign direct investment, net inflows (BoP, current US$), no date) (Wang, 2022). Even though the pace is much slower, multinational firms from other countries are continuing to make significant investments in China. China has been the largest market for vehicles globally since 2009, and sales have only climbed since then, so automakers have been increasingly looking to the country to enhance their bottom lines. Since 2009, China has been the largest market for
  • 15. vehicles worldwide. References Feng, K., & Li, J. (2019). Challenges in reshaping the sectoral innovation system of the Chinese automobile industry. In Innovation, Economic Development, and Intellectual Property in India and China (pp. 415-438). Springer, Singapore. Wang, K. H., Su, C. W., Xiao, Y., & Liu, L. (2022). Is the oil price a barometer of China's automobile market? From a wavelet-based quantile-on-quantile regression perspective. Energy, 240, 122501. Methodology Section Donte Walker Department of Business and Technology, William Woods University BUS 585- Intergrated Studies and Business Administration – Fall 2 2022 Dr. Leathers
  • 16. Quantitative and qualitative approaches are the two basic types of research methods that should always be utilized in the field of research. Quantitative methods focus more on numerical data and provide and analyze that data, whereas qualitative methods place more emphasis on narrative data and provide and analyze that data. Both quantitative and qualitative methods collect and analyze data (Basias & Pollalis, 2018). The primary objective of this research paper written in the style of a case study is to investigate the success that Honda has had in globe. This investigation will focus on the company's entry modes, the entry obstacles, and the trade barriers, as well as how these aspects influence Honda's decision-making. As a direct consequence of this, the research approach that was taken was qualitative. Case studies can be developed by conducting in-depth analyses of events, and qualitative research can be of assistance by shining light on the conditions in question as they exist in the real world. Any study of social phenomena that involves the researcher using a wide variety of empirical data to assess a case in order to obtain a deeper understanding of the subject matter is considered to be qualitative research. In order for the researcher to obtain a comprehensive comprehension, this study takes a qualitative approach to Honda's research in order to
  • 17. conduct the investigation. PESTEL, which is one of the most effective tools for conducting macro-environment analysis for the purposes of conducting company operations, as well as the theories of joint venture and exporting and totally owned subsidiary, will serve as the initial foci of this article. Next, as a case study, we'll investigate Honda Motors to find out more about the business's approach to market entry. In this situation, we will use the OLI paradigm to investigate Honda's entry mode strategy, after which we will provide an analysis of our findings as well as some suggestions for how the corporation might better its future expansion into new markets (Borgstede & Scholz, 2021). The techniques chapter devotes the majority of its discussion to the overarching research perspective. The paper will start with an introduction, then move on to a description of the research methodologies and strategies that were utilized, followed by the data collection, analysis, and interpretation sections. At long last, the report will wind down with a summary of any pertinent conclusions and recommendations. The primary objective is to pinpoint Honda Motors' technology utilization across its numerous entry modes in various markets. From there, the objective is to construct a more solid basis upon which to advise the company on the most appropriate entry mode for its future global operations. Ultimately, the goal is to advise the company on the most effective entry mode for its future global operations. In light of the fact that this is of the utmost significance when it comes to the process of providing suggestions for the future operations of Honda all over the world, we will be doing research into the regulatory environment and entry difficulties. In the process of doing research, both deductive and inductive thinking are utilized to an essential degree. According to this definition, the deductive method of inquiry comprises creating hypotheses in light of previously established scientific principles and theories, testing those hypotheses, and drawing legitimate and, at times, paradoxical conclusions from the
  • 18. results of those tests. In direct opposition to this is the inductive method, which centers on the accumulation and analysis of empirical facts in order to reach conclusions about the world and, ultimately, on the generation of novel concepts (Basias & Pollalis, 2018). Because qualitative research is naturally more subjective and able to adapt to altering priorities throughout the course of the research process, the inductive method finds widespread application within this methodology. Since empirical data, statistics, yearly reports, and corporate websites were all reviewed in order to obtain information, the inductive technique was applied to produce this paper. This material was then studied in order to provide the researcher with an in-depth acquaintance with Honda. References Basias, N., & Pollalis, Y. (2018). Quantitative and qualitative research in business & technology: Justifying a suitable research methodology. Review of Integrative Business and Economics Research,
  • 19. 7, 91-105. Borgstede, M., & Scholz, M. (2021). Quantitative and Qualitative Approaches to Generalization and Replication–A Representationalist View. Frontiers in psychology, 12, 605191. Introduction, Problem Statement, and Literature Review Donte Walker Department of Business and Technology, William Woods University BUS 585- Intergrated Studies and Business Administration – Fall 2 2022 Dr. Leathers November 20, 2022
  • 20. Introduction Japanese automaker Honda Motor Co., Ltd. is a publicly traded company. Unlike its competitors, it has not been limited to a single product over the course of its decades-long reign over the global market. The business's reach spans many fields, making it highly versatile. The corporation is best known for manufacturing automobiles, airplanes, motorcycles, and power equipment (Badhon, 2019). The Honda Motor Company, Ltd., was established in 1959, and since then it has become a worldwide leader in the production of bikes and accessories. Honda Motor Company, one of the world's largest automakers, offers a diverse lineup. For Honda, the United States and Canada are the primary sources of revenue (Muniandy et al., 2020). Honda's products have evolved throughout the years, and the corporation today provides a wide variety of cutting-edge innovations. But competition is heating up as more businesses set their sights on the global market. Mr. Honda developed the idea of attaching an engine to a bicycle. There was an immediate demand for Mr. Honda's motorcycles. With the help of his friends, he was able to raise enough money to buy the materials necessary to build a motorcycle with significantly more range (Badhon, 2019). His primary means of financial support were motorcycles and bicycles, which he sold to black marketers and small cycling enterprises. Company founder Soichiro Honda has had a passion for cars since he was a young boy (Bahety et al, 2018). At the Art Shokai tuning company in Japan, he filled in as a specialist, making adjustments to cars and entering them in competition. Since he had no formal architectural training, he worked on a cylinder layout to pitch to Toyota. After receiving negative
  • 21. feedback on his preliminary design suggestions, Soichiro spent a great deal of time honing and completing his final design. After some years, Toyota awarded him a contract, and he built a factory to produce pistons for the corporation. Unfortunately, the factory was destroyed by an earthquake. Because of the wartime fuel shortage, Honda was unable to drive his car, However, the idea of mounting a small motor on his bicycle sparked widespread interest (Bahety et al., 2018). Soon after, he established the Honda Technical Research Institute to focus on developing and producing lightweight, 2-cycle cruiser engines. Soichiro got enough capital to design and produce his first motorbike, the Honda Cub, by enlisting the support of 18,000 bicycle shop owners across Japan in the struggle to rebuild a country ripped apart by World War II. Founded in this year, Honda Motor Company would soon grow to become the largest motorcycle manufacturer in the world. The T360 pick-up truck, manufactured by Honda and released in August 1963, was the first manufacturing automobile anywhere in the globe (Badhon, 2019). The automobile was powered by a 356 cc gasoline straight-4 engine and qualified for the more affordable Kei car tax category. After the T360, in October 1963, Honda began production on the S500 sports car, their first mass-produced automobile (Badhon, 2019). A chain drives the rear wheels, recalling Honda's origins in the motorcycle industry. According to company’s goal statement, Honda strives to "provide products of the best quality, yet at a reasonable price for international customer satisfaction while keeping a global perspective." The statement demonstrates the company's commitment to provide high-quality items at competitive prices. The structure is comprised of the following element: Improvement of life and Improving affordability (Badhon, 2019). Since the beginning, Honda has been committed to producing high-quality products, giving them an edge on the competition. Honda's success can be directly attributed to its corporate statements. To "service people globally with the joy of enhancing their
  • 22. life's potential - Lead the advancement of mobility and empower people everywhere to enhance their daily lives," as stated by Honda, is the company's stated mission. Honda has been at the forefront of ground-breaking designs that enhance mobility across all modes of transportation, including land, air, and sea (Badhon, 2019). While Hondas firm limited has expanded into the automobile industry and is now the third largest carmaker in Japan, the company orginally began producing bikes and is currently the largest motorbike producer in the world. The United States is their best market and where the company sees the most success. Most of Honda's revenue comes from selling automobiles, including the Accord, Civic, CR-V, and the high-end Acura brand (Bahety et al., 2018). The Accord is the country's second most popular car purchase, yet it tops the list of most stolen cars, making it the most "in-demand" automobile in the country. Some of Honda's motorcycle offerings include the Super Cub, Foresight, and Shadow 750. In addition to agricultural and industrial gear, portable generators, outboard motors, and all- terrain vehicles are produced by the company's power products section, which contributes to the company's annual revenues (Bahety et al., 2018). The market challenges experienced by Honda are the primary focus of this essay. Honda Motors employees in China wanted to form their own union so that they could have a voice in the company. In addition, they sought a raise in pay and benefits. Nearly 1700 employees went on strike when the corporation refused to meet their demands. Management now faces a critical issue as a result of this predicament (BHARGAVI). The company's sales and revenue dropped, and Honda had trouble finding enough people to work in its factories. It also became a political issue, which hurt the company's reputation in the eyes of its target audience. Literature Review According to Badhon (2019), one of the most prestigious product segments in terms of revenue is the automotive sector, a
  • 23. term encompassing a wide range of businesses and trade groups involved in the design, development, manufacture, marketing, and exchange of motor vehicles, towed vehicles, two-wheeled vehicles, and mopeds. It's a major source of international trade and economic growth (Badhon, 2019). The term "automotive industry" typically excludes businesses whose primary product is a written providing to the support of autos and 1 subsequent thing rounded up to the end-user, such as repair shops and fuel- up stations. As per Bahety et al (2018), there is a massive market for high- tech automobiles. Many American businesses rely on production, distribution, and maintenance. To compete in the luxury market, Honda removed all references to the company's origins from its vehicles. Customers did not connect Honda's rising prestige with the company as a whole (Bahety et al, 2018). Honda has finally released an encouraging product, and the success of this launch was measured by the company's profitability, market share, and the success of the new model thus far. The success of the expansion is heavily reliant on the advertising strategy that backs it. In light of these gains, Honda has satisfied the criteria for advancement necessary for vertical growth. The company credits its successful advertising strategy, which it says is vastly different from the advertising strategy it employs for its non-luxury businesses (Bahety et al, 2018). Honda enjoyed a perfect trait-relationship with its customer base in terms of quality and consistency, but the renown- relationship was less than stellar. Honda Motor Company felt it necessary to counter the negative glory relationship of the parent brand, in which the parent brand's name did not automatically convey prestige in the high-end market (Bahety et al, 2018). Honda came up with the Acura brand to combat this problem, and it has been incredibly successful for the company. There have been more seamless openings in the supply chain as a result of the increased global trade of vehicle parts according to Muniandy et al (2020). Pakistan has swapped vehicles with a number of different economies. These days, it's not unusual at
  • 24. all to see recycled cars or auto parts manufactured in Asia or Europe. Due to their higher cargo costs, the value of imports has not yet diminished the advantage of local manufacturers (Muniandy et al, 2020). However, in Asia, this sort of trade is prohibited because of the high interest rates in countries like China and India. Auto manufacturing is the sixth largest assembly sector in Pakistan. During the past few years, it has experienced explosive growth, with year-over-year increases of over 100%. Every year, the automotive industry adds over $6 billion to the US economy. It generates roughly $0.82 billion in revenue for governments through indirect charges, and it directly creates 215k jobs. At the same time, this region contributes at least 16% to Pakistan's manufacturing sector (Muniandy et al, 2020). The auto industry in Pakistan is quickly rising to prominence as a driver of the country's economic growth and international trade because to the country's plethora of opportunities for workplace innovation and forward and backward connections in allied businesses. Suzuki, Honda, and Toyota are the three most well-liked automakers in Pakistan, accounting for 62%, 9%, and 28% of the market share, respectively. According to Bhargava & Chandravathi, Honda operates in Pakistan's automobile sector under varying theories of diversification and specialized cooperative activity with leading global fabricates. It is also argued that there is a strong rationale for buying in from the nearest neighbors if the buy in of completed products is to be established at a greater value. The automobile industry in Pakistan might be considered to be under distinct control (Bhargava & Chandravathi). There's no denying that the top three automakers control the vast majority of the industry. It's also more likely that prices in an oligopolistic market will be set in stone. This rigidity could manifest itself if, for example, a price hike by one manufacturer isn't matched by others, or if a price cut by one manufacturer leads to a price cut across the board. Honda Pakistan brought this to customers' attention by offering price cuts of PKR
  • 25. 30,000 on the Honda Civic and PKR 40,000 on the Honda City (Bhargava & Chandravathi). For better or worse, fascinating times lie ahead for the auto industry and the three Japanese automakers in Pakistan. Honda, the smallest of the big three automakers, is now the brightest example. The company has grown steadily, utilizing only 50% of its present capacity, but its share of the automobile market has increased, from 9% in 2009 when it first began selling vehicles in the country to 20% in 2014. As per Boiral et al (2022), it’s possible that Honda may become the industry leader in terms of both money and progress. In the past year alone, its stock price has risen dramatically. The company's redesign and introduction of a new Civic have been well received by consumers (Boiral et al, 2022). The most current data available (7MFY17) reveal that consolidated deals are up 51% year-on-year, and that January 2017 witnessed the most significant deals the company has sold in a month to date. Five-one percent of Honda's production is local. According to Thomas (2019), the distribution industry relies heavily on achieving stronger restrictions, but this has become increasingly difficult due to surging crude material imports. Import prices will rise in response to any change in the dollar's parity with the rupee. Retailers have already begun petitioning for a waiver of the RD on steel component imports. It is impossible to construct confinement without massive volumes (Thomas, 2019). Each iteration of the model and layout necessitates a fresh round of innovation, which in turn necessitates massive investments of billions of rupees. According to Chahande (2022), low numbers of coordinated efforts were another reason for not achieving desired results towards indigenization. Pakistan also pays a fraction of the cost that Malaysia, Thailand, Vietnam, and India do for eminences and specialized charges. Even that is difficult due to standard and federal spending regulations. As per Park (2021), Honda of Pakistan is a joint venture between the Japanese and Pakistani branches of the firm. As
  • 26. was just described, Honda operates in Pakistan's automotive sector via two large, combined ventures, both of which are tied to the Atlas Group. Perhaps most interestingly, the Atlas Group owns a share in Honda in Pakistan exceeding 50%. References Badhon, M. (2019). Analysis on Market and Business Strategy of Honda, DHS Motors Limited. Bahety, S., Moffitt, B., Pruchnik, W., & O’Rourke, J. S. (2018). Honda motor company: communication and the takata airbag crisis. The Eugene D. Fanning Center for Business Communication, Mendoza College of Business, University of Notre Dame. Muniandy, A. M., Kee, D. M. H., Izwan, S., Imran, M., Al- Amin, A. A., Kumar, S., & Singh, S. (2020). The key success factor: A study of Honda Motor. Journal of the Community Development in Asia
  • 27. (JCDA), 3(2), 67-77. BHARGAVI, T., & CHANDRAVATHI, K. A STUDY ON COMPARATIVE FINANCIAL STATEMENT ANALYSIS ON HERO MOTOR CROP. Boiral, O., Brotherton, M. C., Rivaud, L., & Talbot, D. (2022). Comparing the uncomparable? An investigation of car manufacturers' climate performance. Business Strategy and the Environment, 31(5), 2213-2229. Thomas, V. J., & Maine, E. (2019). Market entry strategies for electric vehicle start- ups in the automotive industry–Lessons from Tesla Motors. Journal of Cleaner Production, 235, 653-663. Chahande, M. S. S.(2022) “A study of various purches factor of Yamaha scooter and its impact on buying behavior vis-à-vis other competition in the segment (Doctoral dissertation, Rashtrasant Tukadoji Maharaj Nagpur University). Park, Y. W., & Park, Y. J. (2021). Corporate Strategy for Corporate and Ecosystem Sustainability. In Corporate Social Responsibility and Entrepreneurship for Sustainability (pp. 71-79). Springer, Singapore. Write a Discussion/ Recommendations and Conclusion for the paper attached Discussion/Recommendations – In this section, you should
  • 28. apply your results to the specific problem under investigation in a more subjective way. List and discuss any recommendations developed in response to your research and results pertaining to the problem under investigation. “Organization X should identify individuals high in emotional intelligence as potential leaders within the organization. Training and development programs can aid in this effort and reduce the randomness that is currently present in leader emergence and development within the firm…” Conclusion – a concise conclusion to the paper. Fighting Food Insecurity From The Top How can the USDA and THE FDA can help through the US Food Code? United States Department of Agriculture and The Food and Drug Administration 1 US Food Insecurity has surpassed 50 Million During the COVID pandemic, Food Insecurity in America grew from 35 Million to over 50 Million (rts.com). 2 What is being done? SOUP KITCHENS FOOD PANTRIES DONATIONS
  • 29. MONETARY GROCERS RESTAURANTS Locally in Champaign, IL, there is one soup kitchen and a half dozen food pantries and numerous churches receiving donations to pass out to the food insecure. 3 Results of What is being done Daily bread soup kitchen feeds 400 people two meals a day. Champaign has 30,000 citizens suffering from food insecurity 29,600 citizens are left food insecure and relying on food pantries daily to provide sustenance with no guarantee of availability. 4 What is our government doing? Pure Food and Drug act (1906) – pure ingredients in food US Food Code provides guidelines to sale of food Comprehensive resource for food recovery programs Bill emerson act Federal food donation act Us food loss and waste 2030 champions
  • 30. Results of What Our Government is Doing The US Food Code provides standards and regulations of handling food from farm to the table. Bill emerson act provides companies from civil and criminal liability to the foods that are donated to non-profits. Federal food donation act provides further protection of liability for companies USDA and EPA(environmental protection agency) encourage a 50% reduction by 2030 by creating The US Food and loss 2030 champions. NRA(National restaurant Association), EPA, and Feeding America create the Comprehensive resource for food recovery programs. The 768 page US Food Code has less than one page devoted to food recovery to help the food insecure. The Comprehensive Resource is 51 pages devoted to increasing the food supply to the food insecure. 6 Why has Food Insecurity Worsened? For over 50 years, the USDA and FDA have concentrated their efforts on the safeties of Food from farm to table. The efforts for food to go from table to salvaged have been minimal. Even the Comprehensive Resource for Food Recovery Programs is a concentration on building relationships from grocer/restaurant to Food Distribution Organization (FDO).
  • 31. How can we fix the Problem? Food Insecurity has worsened while the US and the world places greater amount of food into landfills. In 2020, during the pandemic, the US discarded 40 million tons of food. With 50 million suffering from food insecurity, this equates to 4.38 #s of food a day for each person suffering!!! 8 How do we get less of this? And more of this? 40% of food waste is accounted for my grocers, restaurants and food service companies. If we can reduce half of that, we will create 0.8 #s of food per day for each person suffering from food insecurity. 9 How government has helped? Vermont passed the Universal Recycling Law banning three materials from trash bins ‘Blue bin’ recyclables Leaf and yard debris Food scraps
  • 32. As of July 1st, 2020 every Vermont citizen must keep ALL food scraps out of the trash!!! 10 What is next? FDA separates into Food Administration (FA) and Drug Administration (DA) FDA is too big 16 board members and 3 with food experience Only one ‘Food’ board member is Full-Time DA creates departments that concentrate on different steps of the food process with one concentrating on Salvaging Foods Education of Restaurant Managers of certification of Salvaged Food. Can this be done? The US Food Code currently states that food that has been held warm for four hours must be discarded. Why can food at 3:59 be sold for profit; however, food at 4:00 is not salvageable. In 2017, the Illinois Department of Health instituted a requirement for one manager in each restaurant/facility to have Allergen Awareness Training. Why can we not train the salvaging of food? With training, this food could go from being servable to salvageable; creating a considerable amount of food that can help tackle our food insecure problem. Why the US Gov’t and the Food Code are the answer? US Government(new DA) Local solutions are limited and have been unsuccessful
  • 33. Greater problems require greater solutions The new DA would have greater resources to help tackle the problem Making actions into laws guides citizens to act morally and ethically correct. Churches can only do so much, we need governmental bodies effectively tackling the food insecurity issue. The Food Code The Food Code’s guides and standards are part of the problem If they were a part of the problem, the Food Code can and should be a part of the solution Governmental guidelines provide methodologies for managers to utilize in the salvaging of food. Governmental guidelines of the FDOs can increase the quality and the quality of the food prepared as well as the delivery of the foods to those in need. If Americans could help tackle the Food Insecurity problem from the top down, we could see significant progress in the lives of our neighbors!!! 13 image2.jpeg image3.jpg image4.jpg image5.png image6.jpeg image13.jpeg image14.jpeg image15.jpeg image16.jpeg image17.jpeg image1.jpg
  • 34. Results Section Donte Walker Department of Business and Technology, William Woods University BUS 585- Intergrated Studies and Business Administration – Fall 2 2022 Dr. Leathers Socialist market economy is distinct from 'market economy' due to the CPC's continued authority over national policymaking, which allows the country to follow its socialist growth path. Deng Xiaoping and the CPC shifted their attention from culture
  • 35. (Mao) to advancing the material productive forces, resulting in the socialist market economy. The CPC uses a combination of public and private actors to steer the Chinese socialist market economy in the direction it wants to go. In this sense, the state plays a considerably more significant role than it would in a free market economy. As was clear from the start when MNCs began relocating to China in the 1980s and 1990s, the Chinese government is picky about the kind of businesses and industries it allows to operate within its borders (Feng & Li, 2019). When China first opened its doors to the automotive sector, it did so after engaging in thorough negotiations with various international manufacturers and licensing only those projects deemed to be beneficial to China's development. The Chinese were eager to master automobile production because of the historical significance of the automotive sector to the country's economy. When an international company forms a joint venture with a Chinese partner, the international company will often share its proprietary know-how with the Chinese partner and teach the Chinese partner how to use it. However, there are certain exceptions to this rule. Despite the Chinese partner's contractual and WTO obligations to cease such production, several complaints have been lodged about the Chinese partner's continued production of the same items after a JV has been dissolved. This is despite the fact that the Chinese partner is required to cease such production (Feng & Li, 2019). Since September 2017, the Chinese government has been waging a campaign to improve the country's protection of intellectual property rights (IPR), in which they have pledged to crack down on activities that infringe on intellectual property rights and to increase judicial and administrative safeguards. Despite this, the United States has continued to lodge a complaint against China at the World Trade Organization (WTO) regarding the country's weak protection of intellectual property rights (IPR). Due to the high expense of research and development in the automobile sector, protecting their intellectual property rights is absolutely
  • 36. necessary in order to keep their advantage over their competitors. The industry is currently going through a time in which research and development is more important than it has ever been before since driverless vehicles and NEVs seek to shake things up (Wang, 2022). There is a compelling theoretical case in favor of selecting an entry strategy that takes into account the requirement to protect intellectual property. The development of electric and hybrid vehicles is the focus of one of the research and development facilities that GM maintains in China. This center is a joint venture between GM and SAIC. The fact that China has the most people of any country in the world makes it a very appealing market for automobile manufacturers. The rise in foreign direct investment (FDI) in China can be attributed to the country's sizable consumer market as well as its robust economic growth, which reached its all-time high of $290 billion in 2013 before falling to $174 billion in 2016 (Foreign direct investment, net inflows (BoP, current US$), no date) (Wang, 2022). Even though the pace is much slower, multinational firms from other countries are continuing to make significant investments in China. China has been the largest market for vehicles globally since 2009, and sales have only climbed since then, so automakers have been increasingly looking to the country to enhance their bottom lines. Since 2009, China has been the largest market for vehicles worldwide. References Feng, K., & Li, J. (2019). Challenges in reshaping the sectoral innovation system of the Chinese automobile industry. In Innovation, Economic Development, and Intellectual Property in India and China (pp. 415-438). Springer, Singapore. Wang, K. H., Su, C. W., Xiao, Y., & Liu, L. (2022). Is the oil price a barometer of China's automobile market? From a
  • 37. wavelet-based quantile-on-quantile regression perspective. Energy, 240, 122501. Methodology Section Donte Walker Department of Business and Technology, William Woods University BUS 585- Intergrated Studies and Business Administration – Fall 2 2022 Dr. Leathers
  • 38. Quantitative and qualitative approaches are the two basic types of research methods that should always be utilized in the field of research. Quantitative methods focus more on numerical data and provide and analyze that data, whereas qualitative methods place more emphasis on narrative data and provide and analyze that data. Both quantitative and qualitative methods collect and analyze data (Basias & Pollalis, 2018). The primary objective of this research paper written in the style of a case study is to investigate the success that Honda has had in globe. This investigation will focus on the company's entry modes, the entry obstacles, and the trade barriers, as well as how these aspects influence Honda's decision-making. As a direct consequence of this, the research approach that was taken was qualitative. Case studies can be developed by conducting in-depth analyses of events, and qualitative research can be of assistance by shining light on the conditions in question as they exist in the real world. Any study of social phenomena that involves the researcher using a wide variety of empirical data to assess a case in order to obtain a deeper understanding of the subject matter is considered to be qualitative research. In order for the researcher to obtain a comprehensive comprehension, this study takes a qualitative approach to Honda's research in order to conduct the investigation. PESTEL, which is one of the most effective tools for conducting macro-environment analysis for the purposes of conducting company operations, as well as the theories of joint venture and exporting and totally owned subsidiary, will serve as the initial foci of this article. Next, as a case study, we'll investigate Honda Motors to find out more about the business's approach to market entry. In this situation, we will use the OLI paradigm to investigate Honda's entry mode strategy, after which we will provide an analysis of our findings as well as some suggestions for how the corporation might better its future expansion into new markets (Borgstede & Scholz, 2021). The
  • 39. techniques chapter devotes the majority of its discussion to the overarching research perspective. The paper will start with an introduction, then move on to a description of the research methodologies and strategies that were utilized, followed by the data collection, analysis, and interpretation sections. At long last, the report will wind down with a summary of any pertinent conclusions and recommendations. The primary objective is to pinpoint Honda Motors' technology utilization across its numerous entry modes in various markets. From there, the objective is to construct a more solid basis upon which to advise the company on the most appropriate entry mode for its future global operations. Ultimately, the goal is to advise the company on the most effective entry mode for its future global operations. In light of the fact that this is of the utmost significance when it comes to the process of providing suggestions for the future operations of Honda all over the world, we will be doing research into the regulatory environment and entry difficulties. In the process of doing research, both deductive and inductive thinking are utilized to an essential degree. According to this definition, the deductive method of inquiry comprises creating hypotheses in light of previously established scientific principles and theories, testing those hypotheses, and drawing legitimate and, at times, paradoxical conclusions from the results of those tests. In direct opposition to this is the inductive method, which centers on the accumulation and analysis of empirical facts in order to reach conclusions about the world and, ultimately, on the generation of novel concepts (Basias & Pollalis, 2018). Because qualitative research is naturally more subjective and able to adapt to altering priorities throughout the course of the research process, the inductive method finds widespread application within this methodology. Since empirical data, statistics, yearly reports, and corporate websites were all reviewed in order to obtain information, the inductive technique was applied to produce this paper. This material was then studied in order to provide the researcher
  • 40. with an in-depth acquaintance with Honda. References Basias, N., & Pollalis, Y. (2018). Quantitative and qualitative research in business & technology: Justifying a suitable research methodology. Review of Integrative Business and Economics Research, 7, 91-105. Borgstede, M., & Scholz, M. (2021). Quantitative and Qualitative Approaches to Generalization and Replication–A Representationalist View. Frontiers in psychology, 12, 605191.
  • 41. Introduction, Problem Statement, and Literature Review Donte Walker Department of Business and Technology, William Woods University BUS 585- Intergrated Studies and Business Administration – Fall 2 2022 Dr. Leathers November 20, 2022 Introduction Japanese automaker Honda Motor Co., Ltd. is a publicly traded company. Unlike its competitors, it has not been limited to a single product over the course of its decades-long reign over the global market. The business's reach spans many fields, making it highly versatile. The corporation is best known for
  • 42. manufacturing automobiles, airplanes, motorcycles, and power equipment (Badhon, 2019). The Honda Motor Company, Ltd., was established in 1959, and since then it has become a worldwide leader in the production of bikes and accessories. Honda Motor Company, one of the world's largest automakers, offers a diverse lineup. For Honda, the United States and Canada are the primary sources of revenue (Muniandy et al., 2020). Honda's products have evolved throughout the years, and the corporation today provides a wide variety of cutting-edge innovations. But competition is heating up as more businesses set their sights on the global market. Mr. Honda developed the idea of attaching an engine to a bicycle. There was an immediate demand for Mr. Honda's motorcycles. With the help of his friends, he was able to raise enough money to buy the materials necessary to build a motorcycle with significantly more range (Badhon, 2019). His primary means of financial support were motorcycles and bicycles, which he sold to black marketers and small cycling enterprises. Company founder Soichiro Honda has had a passion for cars since he was a young boy (Bahety et al, 2018). At the Art Shokai tuning company in Japan, he filled in as a specialist, making adjustments to cars and entering them in competition. Since he had no formal architectural training, he worked on a cylinder layout to pitch to Toyota. After receiving negative feedback on his preliminary design suggestions, Soichiro spent a great deal of time honing and completing his final design. After some years, Toyota awarded him a contract, and he built a factory to produce pistons for the corporation. Unfortunately, the factory was destroyed by an earthquake. Because of the wartime fuel shortage, Honda was unable to drive his car, However, the idea of mounting a small motor on his bicycle sparked widespread interest (Bahety et al., 2018). Soon after, he established the Honda Technical Research Institute to focus on developing and producing lightweight, 2-cycle cruiser engines. Soichiro got enough capital to design and produce his first motorbike, the Honda Cub, by enlisting the support of 18,000
  • 43. bicycle shop owners across Japan in the struggle to rebuild a country ripped apart by World War II. Founded in this year, Honda Motor Company would soon grow to become the largest motorcycle manufacturer in the world. The T360 pick-up truck, manufactured by Honda and released in August 1963, was the first manufacturing automobile anywhere in the globe (Badhon, 2019). The automobile was powered by a 356 cc gasoline straight-4 engine and qualified for the more affordable Kei car tax category. After the T360, in October 1963, Honda began production on the S500 sports car, their first mass-produced automobile (Badhon, 2019). A chain drives the rear wheels, recalling Honda's origins in the motorcycle industry. According to company’s goal statement, Honda strives to "provide products of the best quality, yet at a reasonable price for international customer satisfaction while keeping a global perspective." The statement demonstrates the company's commitment to provide high-quality items at competitive prices. The structure is comprised of the following element: Improvement of life and Improving affordability (Badhon, 2019). Since the beginning, Honda has been committed to producing high-quality products, giving them an edge on the competition. Honda's success can be directly attributed to its corporate statements. To "service people globally with the joy of enhancing their life's potential - Lead the advancement of mobility and empower people everywhere to enhance their daily lives," as stated by Honda, is the company's stated mission. Honda has been at the forefront of ground-breaking designs that enhance mobility across all modes of transportation, including land, air, and sea (Badhon, 2019). While Hondas firm limited has expanded into the automobile industry and is now the third largest carmaker in Japan, the company orginally began producing bikes and is currently the largest motorbike producer in the world. The United States is their best market and where the company sees the most success. Most of Honda's revenue comes from selling automobiles,
  • 44. including the Accord, Civic, CR-V, and the high-end Acura brand (Bahety et al., 2018). The Accord is the country's second most popular car purchase, yet it tops the list of most stolen cars, making it the most "in-demand" automobile in the country. Some of Honda's motorcycle offerings include the Super Cub, Foresight, and Shadow 750. In addition to agricultural and industrial gear, portable generators, outboard motors, and all- terrain vehicles are produced by the company's power products section, which contributes to the company's annual revenues (Bahety et al., 2018). The market challenges experienced by Honda are the primary focus of this essay. Honda Motors employees in China wanted to form their own union so that they could have a voice in the company. In addition, they sought a raise in pay and benefits. Nearly 1700 employees went on strike when the corporation refused to meet their demands. Management now faces a critical issue as a result of this predicament (BHARGAVI). The company's sales and revenue dropped, and Honda had trouble finding enough people to work in its factories. It also became a political issue, which hurt the company's reputation in the eyes of its target audience. Literature Review According to Badhon (2019), one of the most prestigious product segments in terms of revenue is the automotive sector, a term encompassing a wide range of businesses and trade groups involved in the design, development, manufacture, marketing, and exchange of motor vehicles, towed vehicles, two-wheeled vehicles, and mopeds. It's a major source of international trade and economic growth (Badhon, 2019). The term "automotive industry" typically excludes businesses whose primary product is a written providing to the support of autos and 1 subsequent thing rounded up to the end-user, such as repair shops and fuel- up stations. As per Bahety et al (2018), there is a massive market for high- tech automobiles. Many American businesses rely on production, distribution, and maintenance. To compete in the
  • 45. luxury market, Honda removed all references to the company's origins from its vehicles. Customers did not connect Honda's rising prestige with the company as a whole (Bahety et al, 2018). Honda has finally released an encouraging product, and the success of this launch was measured by the company's profitability, market share, and the success of the new model thus far. The success of the expansion is heavily reliant on the advertising strategy that backs it. In light of these gains, Honda has satisfied the criteria for advancement necessary for vertical growth. The company credits its successful advertising strategy, which it says is vastly different from the advertising strategy it employs for its non-luxury businesses (Bahety et al, 2018). Honda enjoyed a perfect trait-relationship with its customer base in terms of quality and consistency, but the renown- relationship was less than stellar. Honda Motor Company felt it necessary to counter the negative glory relationship of the parent brand, in which the parent brand's name did not automatically convey prestige in the high-end market (Bahety et al, 2018). Honda came up with the Acura brand to combat this problem, and it has been incredibly successful for the company. There have been more seamless openings in the supply chain as a result of the increased global trade of vehicle parts according to Muniandy et al (2020). Pakistan has swapped vehicles with a number of different economies. These days, it's not unusual at all to see recycled cars or auto parts manufactured in Asia or Europe. Due to their higher cargo costs, the value of imports has not yet diminished the advantage of local manufacturers (Muniandy et al, 2020). However, in Asia, this sort of trade is prohibited because of the high interest rates in countries like China and India. Auto manufacturing is the sixth largest assembly sector in Pakistan. During the past few years, it has experienced explosive growth, with year-over-year increases of over 100%. Every year, the automotive industry adds over $6 billion to the US economy. It generates roughly $0.82 billion in revenue for governments through indirect charges, and it directly creates 215k jobs. At the same time, this region
  • 46. contributes at least 16% to Pakistan's manufacturing sector (Muniandy et al, 2020). The auto industry in Pakistan is quickly rising to prominence as a driver of the country's economic growth and international trade because to the country's plethora of opportunities for workplace innovation and forward and backward connections in allied businesses. Suzuki, Honda, and Toyota are the three most well-liked automakers in Pakistan, accounting for 62%, 9%, and 28% of the market share, respectively. According to Bhargava & Chandravathi, Honda operates in Pakistan's automobile sector under varying theories of diversification and specialized cooperative activity with leading global fabricates. It is also argued that there is a strong rationale for buying in from the nearest neighbors if the buy in of completed products is to be established at a greater value. The automobile industry in Pakistan might be considered to be under distinct control (Bhargava & Chandravathi). There's no denying that the top three automakers control the vast majority of the industry. It's also more likely that prices in an oligopolistic market will be set in stone. This rigidity could manifest itself if, for example, a price hike by one manufacturer isn't matched by others, or if a price cut by one manufacturer leads to a price cut across the board. Honda Pakistan brought this to customers' attention by offering price cuts of PKR 30,000 on the Honda Civic and PKR 40,000 on the Honda City (Bhargava & Chandravathi). For better or worse, fascinating times lie ahead for the auto industry and the three Japanese automakers in Pakistan. Honda, the smallest of the big three automakers, is now the brightest example. The company has grown steadily, utilizing only 50% of its present capacity, but its share of the automobile market has increased, from 9% in 2009 when it first began selling vehicles in the country to 20% in 2014. As per Boiral et al (2022), it’s possible that Honda may become the industry leader in terms of both money and progress. In the past year alone, its stock price has risen dramatically. The
  • 47. company's redesign and introduction of a new Civic have been well received by consumers (Boiral et al, 2022). The most current data available (7MFY17) reveal that consolidated deals are up 51% year-on-year, and that January 2017 witnessed the most significant deals the company has sold in a month to date. Five-one percent of Honda's production is local. According to Thomas (2019), the distribution industry relies heavily on achieving stronger restrictions, but this has become increasingly difficult due to surging crude material imports. Import prices will rise in response to any change in the dollar's parity with the rupee. Retailers have already begun petitioning for a waiver of the RD on steel component imports. It is impossible to construct confinement without massive volumes (Thomas, 2019). Each iteration of the model and layout necessitates a fresh round of innovation, which in turn necessitates massive investments of billions of rupees. According to Chahande (2022), low numbers of coordinated efforts were another reason for not achieving desired results towards indigenization. Pakistan also pays a fraction of the cost that Malaysia, Thailand, Vietnam, and India do for eminences and specialized charges. Even that is difficult due to standard and federal spending regulations. As per Park (2021), Honda of Pakistan is a joint venture between the Japanese and Pakistani branches of the firm. As was just described, Honda operates in Pakistan's automotive sector via two large, combined ventures, both of which are tied to the Atlas Group. Perhaps most interestingly, the Atlas Group owns a share in Honda in Pakistan exceeding 50%.
  • 48. References Badhon, M. (2019). Analysis on Market and Business Strategy of Honda, DHS Motors Limited. Bahety, S., Moffitt, B., Pruchnik, W., & O’Rourke, J. S. (2018). Honda motor company: communication and the takata airbag crisis. The Eugene D. Fanning Center for Business Communication, Mendoza College of Business, University of Notre Dame. Muniandy, A. M., Kee, D. M. H., Izwan, S., Imran, M., Al- Amin, A. A., Kumar, S., & Singh, S. (2020). The key success factor: A study of Honda Motor. Journal of the Community Development in Asia (JCDA), 3(2), 67-77. BHARGAVI, T., & CHANDRAVATHI, K. A STUDY ON COMPARATIVE FINANCIAL STATEMENT ANALYSIS ON HERO MOTOR CROP. Boiral, O., Brotherton, M. C., Rivaud, L., & Talbot, D. (2022). Comparing the uncomparable? An investigation of car manufacturers' climate performance. Business Strategy and the Environment, 31(5), 2213-2229.
  • 49. Thomas, V. J., & Maine, E. (2019). Market entry strategies for electric vehicle start- ups in the automotive industry–Lessons from Tesla Motors. Journal of Cleaner Production, 235, 653-663. Chahande, M. S. S.(2022) “A study of various purches factor of Yamaha scooter and its impact on buying behavior vis-à-vis other competition in the segment (Doctoral dissertation, Rashtrasant Tukadoji Maharaj Nagpur University). Park, Y. W., & Park, Y. J. (2021). Corporate Strategy for Corporate and Ecosystem Sustainability. In Corporate Social Responsibility and Entrepreneurship for Sustainability (pp. 71-79). Springer, Singapore. Final Project Presentation Each student will prepare a Power Point presentation covering the major sections of their final project report and use the notes section of the Power Point to provide a narrative or script for their final presentation. Students will use no more than 12-15 slides to present their information and will follow the provided slide outline. The presentation and narrative must be concise yet informative enough to convey the major points of the final project report