Hero Honda's Mission, Vision, Environmental & Indusrtial Analysis

VIVEKANAND COLLEGE FOR BBA
An
Assignment
Of
strategic Management
TOPIC: - MISSION, VISION, ENVIRONMENTAL &

INDUSRTIAL ANALYSIS OF HERO HONDA
SUBMITTED BY: -
ROLL.NO:-
[1.] JASOLIYA HIREN H. [14]
[2.] SORATHIYA ASHISH L. [79]
[3.] RAHOL INDRAJIT V. [70]
[4.] RAMANI PARTH V. [71]
[5.] SOJITRA DIVYESH R. [78]
SUBMITTED TO:-
MR. RAKESH LARA
VIVEKANAND COLLEGE FOR B.B.A.

T.Y.B.B.A {6TH SEM}
FINANCE
2009-2010
Hero Honda
HERO HONDA 1
 Introduction:
Hero Honda Motors Limited, based in Delhi, India is a joint venture between
the Hero Group of India and Honda of Japan. It has been referred to as the world's
biggest manufacturer of 2-wheeled motorized vehicles since 2001, when it produced
1.3 million motorbikes in a single year.
During the fiscal year 2008-09, the company has sold 3.28 million bikes and
the net profit of the company stood at Rs. 1281.7 crore, up 32% from the previous
fiscal year.
The company's most popular model is the Hero Honda's Splendor,

which is the world's largest-selling motorcycle, selling more than one million units
per year.
Company profile
"Desh ki Dhadkan"
Hero Honda is the World's No.1 two-wheeler
manufacturing company having the trust of more than 5 million customers. The
company is a joint venture of Hero Cycles of India and Honda Motor of Japan.
Achiever, CBZ, CD Dawn, Karizma, Passion, Pleasure and Splendor are its famous
brands on Indian roads.
Company profile
HERO HONDA 2
Munjal Brothers: Mr. Satyanand Munjal, Mr. Brijmohan

Founder
Lall Munjal and Mr. O. P. Munjal.
Year of Establishment 1984 (The Hero Group was established in 1956)
Foundational Work Before the establishment of the Hero Group in 1956,

Munjal Brothers use to manufacture bicycle
components in the early 1940's.
Industry Automotive - Two Wheelers
Business Group The Hero Group
Capitalization Ratio Hero Group - 26%

Honda Motor Co., Ltd. - 26%
Others - 48% (listing)
Listings & its codes BSE - Code: 500182

NSE - Code: HERO HONDA
Bloomberg - Code: HH@IN
No. of Sales Outlets 1500+
Joint Venture The Hero Group (India) with Honda Motor Co., Ltd.
(Japan)
Registered & Corporate 34, Community Centre

Office Basant Lok, Vasant Vihar
New Delhi - 110057
Tel.: +(91)-(11)-26142451 - 59
Fax: +(91)-(11)-26143321 / 3198 / 1830; 26152453 /
2132
Work Station 69 Km Stone

New Delhi-Jaipur Highway
Daruhera - 121106, Haryana
Website www.herohonda.com
www.herogroup.com
HERO HONDA 3
“Hero” is the brand name used by the Munjal brothers for their flagship
company Hero Cycles Ltd. A joint venture between the Hero Group and Honda
Motor Company was established in 1984 as the Hero Honda company,India.
During the 1980s, the company introduced motorcycles that were popular in
India for their fuel economy and low cost. A popular advertising campaign based on
the slogan 'Fill it - Shut it - Forget it' that emphasised the motorcycle's fuel efficiency
helped the company grow at a double-digit pace since inception.
Hero Honda has three manufacturing facilities based at Dharuhera and

Gurgaon in Haryana and at Haridwar in Uttarakhand. These plants together are
capable of churning out 3.9 million bikes per year. Hero Honda's has a large sales
and service network with over 3,000 dealerships and service points across India.
Hero Honda's customer loyalty program, the Hero Honda Passport Program, claims
to be one of the largest programs of its kind in the world with over 3 million members.
The 2006 Forbes 200 Most Respected companies list has Hero Honda Motors
ranked at 108.
History
India became the second largest two wheeler manufacturer in the world
starting in the 1950s with the Automobile Products of India (API) that manufactured
the Lambrettas and Bajaj Auto Ltd. with its association with Piaggio of Italy
(manufacturer of Vespa scooters) as the largest manufacturers within the country.
The license raj that existed between the 1940s to 1980s in India did not allow
foreign companies to enter the market and imports were tightly controlled. This
regulatory maze, before the economic liberalization, made business easier for local
players to have a seller’s market. Customers in India were forced to wait up to 12
HERO HONDA 4
years to buy a scooter from Bajaj. The CEO of Bajaj commented that he did not need
a marketing department, only a dispatch department. By the year 1990, Bajaj had a
waiting list that was twenty-six times its annual output for scooters.
The motorcycle segment had the same long wait times with three
manufacturers: Royal Enfield, Ideal Jawa, and Escorts. Royal Enfield made a 350cc
Bullet with the only four-stroke engine at that time and took the higher end of the
market but there was little competition for their customers. Ideal Jawa and Escorts
took the middle and lower end of the market respectively.
In the mid-1980s, the Indian government regulations changed and permitted

foreign companies to enter the Indian market through minority joint ventures. The
two-wheeler market changed with four Indo-Japanese joint ventures: Hero Honda,
TVS Suzuki, Bajaj Kawasaki and Kinetic Motor Company (Kinetic Honda). The entry
of these foreign companies changed the Indian market dynamics from the supply
side to the demand side. With a larger selection of two-wheelers on the Indian
market, consumers started to gain influence over the products they bought and
raised higher customer expectations. The industry produced more models, styling
options, prices, and different fuel efficiencies. The foreign companies new
technologies helped make the products more reliable and with better quality. Indian
companies had to change to keep up with their global counterparts.
 Definition of Mission Statement:
A mission statement is a formal short written statement of the

purpose of a company or organization. The mission statement should guide the
actions of the organization, spell out its overall goal, provide a sense of direction,
and guide decision-making. It provides "the framework or context within which the
company's strategies are formulated.
Mission statements often contain the following:
 Purpose and aim of the organization.
HERO HONDA 5
 The organization's primary stakeholders: clients, stockholders, congregation,

etc.
 Responsibilities of the organization toward these stakeholders.
 Products and services offered.
Hero Honda’s Mission statement
"Its our mission to strive for synergy between technology, systems and human
resources, to produce products and services that meet the quality, performance and
price aspirations of our customers. While doing so, we maintain the highest
standards of ethics and societal responsibilities."
Hero Honda should have this type of Mission statement

from our point of view:
“Hero Honda is committed to being a highly profitable, socially responsible, and

leading manufacturer with maintains the highest standards of ethics and societal
responsibilities, to produce products and services with environmentally friendly,
lifetime personal transportation products under the Hero Honda brand and to provide
fulfillment and prosperity for employees, dealers and suppliers.”
 Definition of Vision Statement:
A Vision statement outlines what the organization wants to be, or how it

wants the world in which it operates to be. It concentrates on the future. It is a source
of inspiration. It provides clear decision-making criteria.
Vision: Defines the desired or intended future state of an organization or

enterprise in terms of its fundamental objective and/or strategic direction. Vision is a
HERO HONDA 6
long term view, sometimes describing how the organization would like the world in
which it operates to be.
 Hero Honda’s Mission & Vision Statement are same:
Hero Honda should have this type of vision statement

from our point of view:
“Hero Honda pioneered India’s motorcycle industry, and it's our responsibility now to
take the industry to the next level. We'll do all it takes to reach there.”
SWOT ANALYSIS OF
HERO HONDA COMPANY
A) STRENGTH:-
a) Achievement:
Retained the coveted position of World No 1 Two-wheeler Company for the

seventh consecutive year.
HERO HONDA 7
b) High Sales Growth:

Hero Honda experienced great growth throughout its early days. The Munjal
family started a modest business of bicycle components. By 2002 Hero Group had
sold 86 million bicycles producing 16000 bicycles a day. Today Hero Honda has an
assembly line of nine different models of motorcycles available. It holds the record
for most popular bike in the world by sales for Its Splendor model. Hero Honda
Motors Limited was established in joint venture with Honda Motors of Japan in 1984,
to manufacture motorcycles. It is currently the largest producer of Two Wheelers in
the world. It sold 3 million bikes in the year 2005-2006. Recently it has also entered
in scooter manufacturing, with its model PLEASURE mainly aimed at girls. HUNK is
the latest offering from the HHML stable.
SALES PERFORMANCE
FY 04-05 FY 05-06 FY 06-07 FY 07-08 FY 08-09
Total Sales 26,21,400 30,00,751 33,36,756 33,37,142 37,22,000
Exports (incl in
64,015 92,666 97,341 90,571 81,193
above)
c) Fuel economy:
Over all fuel consumption by its products is less in compare to other brand’s product.
They have so far been able to give better mileage output. Because of this Hero Honda
splendor has magical sales record.
d) Quality policy:
Total quality management is the chore philosophy of the company and it is
thus always focussed on product innovation and performance.
e) Service schedule:
HERO HONDA 8
Hero Honda offers free services on all its two-wheelers. Customer should
avail all these service within the stipulated time period or km range, whichever
condition gets satisfied earlier from the date of purchase. After the completion of free
services or its validity period one must continue availing paid services as per the
recommended service schedule
e) High financial performance:
The Hero Honda financial chart clearly shows that it has strong financial
background in terms of asset, sales, profit more over, Hero Honda Motors Ltd.
(HHML), the world’s largest two-wheeler manufacturer, today reported 31% per cent
growth in profit after tax (PAT) at Rs 275 crore for the third quarter (October-
December) of this financial year (2007-08). Hero Honda’s profit after tax in the
corresponding period last fiscal stood at Rs 209.18 crore.
Total Turnover (sales turnover plus other income, net of excise) grew to Rs
2795.17 crores, a growth of 3.54 per cent over Rs 2699.63 crores recorded in the
corresponding period last fiscal. The company has recorded an EBIDTA margin of
13.95% in the quarter. The EBIDTA margin in the previous quarter (July-
September’07) was 12.39%.
This strong financial performance comes close on the heels of the company’s
good overall sales even in the face of the prevailing slowdown in the two wheeler
industry. Hero Honda’s cumulative total turnover for the first three quarters (April–
December 2007) of this financial year stood at Rs. 7673.43 crores.
Hero Honda's strategy for aggressive top line growth through new product
launches, brand building initiatives backed by innovative communication has resulted
in market share gain across every segment. Indeed, Hero Honda’s share in domestic
motorcycles market has been growing upward of 50 per cent, despite the slowdown
in the two-wheeler industry.
B) Weakness:
HERO HONDA 9
a) Less promotion:
The promotions and ads of Hero Honda are very less as compared to its
competitors.
b) High maintenance:
Some of the products of hero Honda like Karizma require high maintenance .
c) Lack of recycling scrap:
It expected that by 2020 scrap generated by end of life vehicles in India would
be about 2.5 million tonnes and 40% of it will come from two wheeler.But hero honda
is not capable enough to recycle the scrap generated and may impose
environmental threat. TVS Company has this facility and is future threat to this
company as it can affect the future sales as well.
d) Labor relations:
In Hero Group there is no organized labor union and family members of

employees find ready employment within Hero. The philosophy with regard to labor
management is "Hero is growing, grow with Hero." Hero workers receive a uniform
allowance, as well as House Rent Allowance (HRA) and Leave Travel Allowance
(LTA). Extra benefits include medical check-ups not just for workers, but also for the
immediate family members. For the majority of the production workers, who are hired
through contractors, these benefits are out of reach. This and other problems lead to
a strike and factory occupation by 4,000 temp workers in the Gurgaon plant in spring
2006.
C) Opportunities:
a) High GDP & increasing income level of consumer:
Supported by strong demand impulses, especially in the manufacturing and

service sector, India’s gross domestic product grew at 8.9 per cent. This is the fourth
HERO HONDA 10
successive year in which the country’s growth has exceeded 8 per cent growth, and
India is now in a select club of 12 countries with a trillion dollar plus economy.
As a nation, India has prospered. People living in households with incomes

ranging from 2 lakh – 10 lakh a year has grown from 15 million in 1991 to 100 million
in 2005-06. Not surprisingly, therefore, between 1991 and now, the two wheeler
market has grown more than four times.
Urban India is growing at a rapid pace. NCAER data for top 24 cities in India
shows migration to higher income levels growing at over 40 per cent per annum.
Prosperity in rural India is also a significant phenomenon, with 43 per cent of
households in middle and the high income groups coming from rural India.
More incomes per person, more persons will lead to a quadrupling of India’s
consumer markets in the next two decades, a 2007 study by McKinsey Global
institute has projected. And this will provide Company the ballast to sustain and
consolidate its leadership position.
b) Good will of the company:
If the company utilizes the good will they have gained so far from their
customers, they can increase the sales performance by economizing the cost and
few technical renovation of the product. With new launch they can be benefited at
present market scenario like Karizma, Hunk has huge attraction towards the younger
generation because of its style, sporty look, and high accelerating power and is
stable at its feet even at high speeds.
D) Threats:
a) Finance assistance:
Easy availability of finance is the main cause of sales growth and any
restriction will hamper its growth prospects.
HERO HONDA 11
b) Inflation:
If inflation increases cost of raw material used in production will go high and
selling price may go high that may decrease demand of the two wheeler.
c) Technical renovation aspect:
Competitor bike like pulsar and apache are threat to Hero Honda product like
Karizma and Hunk in respect to fuel economy. So if they don’t short out in the new
launches and give something extra in its engineering performance it may affect in
demand of this company product.
Environmental factors OF hero Honda

There are mainly five Environmental factors that are affects Hero Honda.
1. Economic Environment
2. Political – legal Environment
3. Technological Environment
4. Socio cultural Environment
HERO HONDA 12
5. International Environment
1. Economic Environment
Like any other emerging country, India experienced the knock-on effects of
the global crisis during the year in review. The effects were felt through the
monetary, financial and real channels. Drying up of global finance impacted from
the middle of the fiscal impacted domestic capital finance; and corporate earnings
came off peaks.
In April 2009, Reserve Bank of India predicted that the Indian economy's
growth for 2008-09 would slow to 6.6 per cent, breaking an excellent five-year
growth sequence.
There were two dimensions to the economic slowdown. In the first half,
inflation ran into double digits as a result of the global crude shock and the global
food grain shortage.
To control inflation, the RBI clamped down on money supply, and reduced
liquidity in the economy. By the time inflation started coming under control,
domestic interest rates started shooting up. Meanwhile, the global crisis erupted,
putting further pressure on liquidity levels.
By October 2008, slowdown was clearly apparent in export-intensive
sectors, both in the manufacturing and service side. By December, the slowdown
turned into de-growth. The cutback in demand from Europe and the US was so
sharp that even a competitive rupee, which devalued by around 12 per cent
during the year, couldn't act as a buffer.
By December 2008, the growth momentum of the first six months was lost.
Planned investment projects were shelved; live projects faced a shortage of
funds as credit flows dried up. As money became dearer, pay packets became
slimmer and risk aversion grew both from the demand and supply side.
Compulsions of coalition politics at the Centre and the impending
Lok Sabha elections didn't help either, and slowed down reforms and
implementation of projects, particularly in critical sectors like roads, ports and
power. The worst hit was the manufacturing sector. From the second half of the
HERO HONDA 13
financial year, the index of industrial production contracted on three occasions,

remained close to zero on two occasions, and was mildly positive only once.
There was moderation across other sectors as well. Growth in the service sector
slipped from double digits to single digits.
Agriculture growth once again slipped to less than 2 per cent, mostly on
account of indifferent production of cotton and pulses. On its part, the
government came out with three rounds of fiscal measures to revive the
economy. Yet the effects hadn't begun to show, at least till the financial year had
ended. While the year in review was disappointing by Indian standards, India was
still an outperformer by global standards.
Along with China, India still provided a beacon of light to the world. There
were in fact, some signs of some sort of recovery taking shape towards the end
of the financial year, and this momentum continued in the first quarter of 2009-10
as well. Cement despatches in April were the highest in five years, thanks to
revival in construction activity. The World Steel estimated that India would be the
only major country in 2009 with a positive consumption trend.
The overall economy continues to remain a bit volatile, and yet a positive
feel-good sentiment does seem to have returned, especially with the coming of a
stable government at the centre.
In the previous year, the domestic two-wheeler industry entered a period

of de-growth. However, this was arrested in 2008-09, largely on the back of Hero
Honda's performance.
After the blip of last year, the two-wheeler industry went back to a growth
phase, largely driven by Hero Honda and exports. The industry clocked total
volumes of 8.5 million during the year in review, a growth of 5 per cent compared
to a fall of 5 percent in the previous year. The pace of growth was lower in the
domestic market, where the industry clocked sales of 7.43 million, a rise of only
HERO HONDA 14
2.60 per cent. This, however, was a significant improvement over the previous
year when the industry had shrunk by 8 percent.
Motorcycles continue to constitute the largest chunk of the two-wheeler
industry, and during the year in review, accounted for four fifth of sales.
Interestingly, for the second year in succession, scooters increased their share in
the two-wheeler pie from 14 per cent to 16 per cent. This is clearly a trend
reversal from the last 10 years, where the share of scooters in the two-wheeler
pie had been shrinking.
Changing lifestyles among women, and the introduction of feature-rich,
high-quality scooters possibly has much to do with the revival in demand. The
entry segment - made up of basic 100 cc bikes -had started slowing two years
ago, and during the year in review, sales in this segment were down by more
than 15 per cent. This could be attributed to the fact that Deluxe segment bikes
have become affordable on account of a 4% excise cut 1% reduction in CST and
the special package of reduction in excise duty in December, which most
manufacturers passed on to the consumers.
The deluxe segment-made up of value for money and feature-rich bikes in
the 100-125 cc category-grew by 15.2 per cent. The 125-250 cc category-grew at
8.8 per cent.
The pace of growth has fallen from last year's levels. There is no doubt
that the higher interest rates have brought down growth. Nevertheless, this
segment was still able to clock a growth rate in high single digits mainly because
of the excitement caused by a slew of new models that came into this segment
during the year.
The bigger story, of course, is that buyers in small-town India and rural
India, as well as employees of the state and Central government, were relatively
less affected by the slowdown, and this benefited the two wheeler industry.
Hero Honda expects sales to continue to grow in the 2009/10 fiscal year,
in spite of a tough economic and financing environment. Hero Honda is looking to
maintain growth and continue to gain market share in the fiscal year starting in
April by focusing on the rural market and continuing to carry out an aggressive
marketing campaign.
HERO HONDA 15
2. Political - Legal Environment
Political and Legal environment is an important factor particularly in a

mixed economy like – ours, and affect the working of business organization
significantly.
ARAI provides technical expertise in R&D, testing, certification,

homologation and framing of vehicle regulations. ARAI is a co-operative industrial
research association established by the automotive industry with the Ministry of
Industries, Government of India. It works in harmony and complete confidence
with its members, customers and the Government of India to offer the finest
services, which earned for itself ISO 9001, ISO 14001, OHSAS 18001 and NABL
accreditations. ARAI is well-equipped with state-of-the-art infra-structural facilities
and highly qualified manpower.
The Indian Auto Industry is harmonizing both Safety & Emission

regulations with International Standards for sustained growth of the Industry for
combating the environment and become a global export hub.
India has a well established and Regulatory Framework under the Ministry
of Shipping, Road Transport and Highways in which SIAM (SOCIETY OF INDIAN
AUTOMOBILE MANUFACTURERS) plays a very important role. All the stake
holders are part of the regulation formulation setup. The ministry issues the
notifications under the Central Motor Vehicle Rules and Motor Vehicles Act.
The Safety Regulations are being aligned with the ECE regulation and the
Road Map prepared by SIAM (SOCIETY OF INDIAN AUTOMOBILE
MANUFACTURERS) envisages alignment by 2010.
The In use Vehicle Emission norms have been tightened with effect from
1st October 2004 and computerization model has been developed by
SIAM(SOCIETY OF INDIAN AUTOMOBILE MANUFACTURERS, which is
HERO HONDA 16
already in place in the Major Metro Cities and would be extended throughout the
country in a phased manner.
KEY POLICIES FOLLWED BY HERO HONDA
AN ENVIRONMENTALLY AND SOCIALLY, AWARE COMPANY
At Hero Honda, our goal is not only to sell you a bike, but also to help
you every step of the way in making your world a better place to live in. Besides its
will to provide a high-quality service to all of its customers, Hero Honda takes a stand
as a socially responsible enterprise respectful of its environment and respectful of
the important issues.
Hero Honda has been strongly committed not only to environmental
conservation programmers but also expresses the increasingly inseparable balance
between the economic concerns and the environmental and social issues faced by a
business. A business must not grow at the expense of mankind and man's future but
rather must serve mankind.
"We must do something for the community from whose land
we generate our wealth."
A famous quote from our Worthy Chairman Mr.Brijmohan Lall Munjal
 Environment Policy
We at Hero Honda are committed to demonstrate excellence in our

environmental performance on a continual basis, as an intrinsic element of
our corporate philosophy.
To achieve this we commit ourselves to:
HERO HONDA 17
 Integrate environmental attributes and cleaner production in all our business

processes and practices with specific consideration to substitution of
hazardous chemicals, where viable and strengthen the greening of supply
chain.
 Continue product innovations to improve environmental compatibility.
 Comply with all applicable environmental legislation and also controlling our
environmental discharges through the principles of "alara" (as low as
reasonably achievable).
 Institutionalize resource conservation, in particular, in the areas of oil, water,
electrical energy, paints and chemicals.
 Enhance environmental awareness of our employees and dealers / vendors,
while promoting their involvement in ensuring sound environmental
management.
 Example of ethical practice:
Among the two and three wheelers, both selected models of Hero
Honda (Splendor and CD 100) are the most eco friendly two wheelers. They have
scored above average in vehicle and engine design and are one of the very few
four-stroke two wheeler fitted with any kind of pollution control equipment.
 Quality Policy
“Excellence in quality is the core value of Hero Honda's philosophy.”

We are committed at all levels to achieve high quality in whatever we do, particularly
in our products and services which will meet and exceed customer's growing
aspirations through:
HERO HONDA 18
 Innovation in products processes and services.

 Continuous improvement in our total quality management systems.
 Teamwork and responsibility.
 Example of ethical practice: On the comparative performance undertaken for

two-stroke and four-stroke two wheelers, the outcome clearly established that
four stroke two-wheelers are better that two stroke two-wheelers with respect to
both emission and fuel efficiency. The carbon monoxide (CO) and hydrocarbons
and nitrogen oxides (HC+NOx) emitted by two-stroke two-wheelers (with catalytic
converter) are 23 per cent and 38 per cent, respectively higher than their
equivalent four-stroke two-wheelers without catalytic converter.
 Safety Policy
Hero Honda is committed to safety and health of its employees

and other persons who may be affected by its operations. We believe that the
safe work practices lead to better business performance, motivated workforce
and higher productivity.
We shall create a safety culture in the organization by:
 Integrating safety and health matters in all our activities.

 Ensuring compliance with all applicable legislative requirements.
 Empowering employees to ensure safety in their respective work places.
 Promoting safety and health awareness amongst employees, suppliers and
contractors.
 Continuous improvements in safety performance through precautions
besides participation and training of employees.
 Example of ethics followed: The performance and safety of your bike not
only depends on the world class design and workmanship assured by Hero
Honda but also on the parts being used in the assembly line. Even the finest
components manufactured need replacement from time to time. And to ensure
the continued impeccable performance of your vehicle, the spare parts should
also be made and replaced as good as the components fitted by Hero Honda.
HERO HONDA 19
To ensure this, we manufacture and procure the replacement parts according

to the specifications and standards set by us and Honda Motor Co. As a
responsible Hero Honda bike owner, we recommend that for your safety, long
life and high performance of your bike, use only Hero Honda genuine parts.
 HERO HONDA FOLLOWS 3E’s IN FORM OF ETHICS
 As a socially responsible company we urge you to join us in making this world

a safer, healthier and more environment friendly place.
 At Hero Honda we like to promote the three E’s.
Engineering – which is the right technology, specifically designed for Indian

customer requirements, and road conditions? It is exemplified in the 4-stroke Hero
Honda engines that give you amazing reliability and fuel-efficiency, year after year.
We have always manufactures 4-stroke engines, ever since inception in 1985.
Environment – which is about ensuring that the high technology 4-stroke Hero
Honda motorcycles continue to meet the most stringent pollution control norms at
every level – as they have since the very beginning?
Education – which is about promoting comfortable and safe driving, through a wide
dealer network and service centers; as well as in educating people on road safety, in
association with the traffic police and the transport department? Do remember that
you and your family are not only riders, but pedestrian as well.
It is as part of the Hero Honda family that ‘We Care’ to drive home the message of
Road Safety and a Healthy Environment.
Our Hero Honda, the environment and you. It is a three-way relationship that you
should nurture, to reap the benefits for years to come. A well tuned bike keeps the
environment healthy. Good riding practices will keep you healthy. Taking good care
of your bike will always keep your bike healthy.
Here are simple steps to a healthy bike, healthy environment, and a healthy you.
HERO HONDA 20
 Health and Environment

 Safety
 Facts and Information
 Social Responsibility
Key Issues and Problems:
1. Management approach to practicing a non-union model made them blind
to reality DID NOT LISTEN TO WORKERS
2. Workers viewed Mgmt activity as coercive and repressive
3. Incompetent people mgt. by Indian Middle managers—Indifference
4. Indian mgmt. blocking direct access to top company executive
5. The 3 joys of HONDA were used as a means of control
6. Issues in cross-cultural management
7. Japanese didn't understand issues in Diwali in Indian IR
8. Tokenism of conciliation in resolving collective issues
9. managing Indian people
10. Failure of mgt. to realize importance of
11. Complacency on the part of Indian mgrs. about labour power
Till last 10 years, in India has political stability …………so……….
3. Technological Environment:
a. Hero entered a joint venture for technical and financial participation
with one of the world's largest automotive makers, Honda Motor
Company Limited of Japan, in 1984 for the manufacture of 100cc
motorcycles in India.
b. Hero's quest for a low-budget, fuel-efficient and environment-friendly

two-wheeler led Hero Motors to enter into a Technical Collaboration
HERO HONDA 21
with Steyr Daimler Puch of Austria in 1987 for the manufacture of

the 65cc, Porsche-design mini-motorcycles.
c. Munjal Showa Limited was formed in Technical and Financial

Collaboration with Showa Corporation, Japan, to design, develop
and manufacture of front forks, shock absorbers, struts and gas
struts.
d. Sunbeam Auto Limited has set-up a state of the art piston

manufacturing facility in technical collaboration with M/S Honda
Foundry Company Limited of Japan, the pioneers in the world for
manufacturing high-strength lightweight pistons used in light, powerful
fuel-efficient engines.
e. Munjal Auto Industries Limited has a joint venture with the State-
owned Gujarat Industrial Investment Corporation, to cater to the
needs of the overseas market.
f. Hero Cycles CR Division was set up in consultation with MECON,

Asia's largest engineering consultants and in Technical
Collaboration with Wean United, USA.
g. Hero Cycles Cold Rolling Division has also entered into a technical
collaboration with Kawasaki Steel Corporation, Japan for the
improvement of production yield, elimination of defects, reduction of
customer returns and enhancement of maintenance operations
against certain predetermined targets.
TECHNICAL SPECIFICATIONS (AMBITION)
Engine 4-stroke, single cylinder, Air Cooled, OHC

Displacement 133cc
Maximum Power (11 BHP) 8.2Kw at 8000 rpm
Gear Box 5-speed Constant Mesh
Clutch Multi-Plate Wet type
Max. Speed 100 km/ph
Acceleration 0 to 60 km/ph in 6 seconds
HERO HONDA 22
Frame Single Cradle Tubular Diamond Type

Suspension(Front Telescopic Hydraulic Front Fork
)
Suspension(Rear) Swing Arm with 5-step adjustable Hydraulic
Shock absorber
Tyres(Front) 2.75x 18-42P(Unidirectional)
(Rear) 3.00x18-6 PR
Brakes(Front) 130mm
(Rear) 130mm
Headlight Halogen Bulb 35/35 w DC type
Final Drive Roller Chain
Battery 12V-2.5Ah
Ignition Electronic CDI
Starting Kick Starter
Wheelbase 1235mm
Ground Clearance 160mm Length
Width 720mm
Height 1060mm
TECHNICAL SPECIFICATIONS (CBZ)
Engine 4-stroke,Single cylinder, Air Cooled, OHC

Displacement 156.6cc
Maximum Power 12.8ps @ 8000 rpm
Max. Speed 85 km/ph
)
HERO HONDA 23

Shock absorber
(Rear) 100/90x18-56p
Brakes(Front) Disc-180mm
(Rear) Internally expanding type 130mm
Headlight 12v 35/35 W
Battery 12V-2.5Ah (Kick Start)12V-7Ah(Self Start)
Ignition Digital CDI system
Starting Kick Starter/Self Starter**
Wheelbase 1365mm
Ground Clearance 150mm Length: 2030mm
Width 755mm
Length 2100mm
Kerb Weight 138 kg (Kick start)/142kgs(Self Start)
Fuel Tank 13 iters(Reserve 2.5 liters)
Capacity
TECHNICAL SPECIFICATIONS (PASSION +)

Displacement 97.2cc
Maximum Power 7.5 Ps at 8000 rpm/ 5.5 KW at 8000rpm
Max. Speed 85 km/ph
Frame Tubular Double Cradle
HERO HONDA 24
)
Damper
Tyres(Front) 2.75x 18-42P
(Rear) 3.00x18-4/6 PR
Brakes(Front) 130mm/240mm(Disc)
(Rear) 130mm
Headlight 35/35 w DC type
Battery 12V-2.5Ah (Kick Start)12V-5Ah(Self Start)
Ignition Digital CDI system(AMI)*
Starting Kick Starter/Self Starter**
Wheelbase 1285mm
Ground Clearance 150mm Length: 2030mm
Width 760mm
Height 1130mm
TECHNICAL SPECIFICATIONS (CD-DAWN)

Displacement 97.2cc
Maximum Power 7.4 Ps at 8000 rpm
Maximum Torque .79 Kg-m @ 5000rm
Compression 8.8:1
Ratio
Starting Kick Start
Clutch Multi-Plate wet
Gear Box 4 speed constant mesh
Frame Tubular double cradle
Suspension(front) Telescopic Hydraulic Shock Absorber
Suspension(front) Swing Arm with Hydraulic Shock Absorber
Tyre(Front) 2.75 x 18 – 4PR
HERO HONDA 25
Tyre(Front) 2.75 x 18 – 6PR

Battery 12V-2.Ah
Head Lamp 35/35 W- Halogen Bulb
Fuel Tank 10.5 Liter (Reserve 1.8 Liter)
Capacity
Dimensions 1980x720x1045 mm
(LxWxH)
Wheelbase 1230mm
Ground Clearance 150mm
Kerb Weight 108kgs
TECHNICAL SPECIFICATIONS (SPLENDOR +)

Displacement 97.2cc
Maximum Power 7.5Ps at 8000 rpm/ 5.5KW @ 8000 rpm
Max. Speed 85 km/ph
Frame Tabular Double Cradle Type
Suspension(Front Telescopic Hydraulic Fork
)
Suspension(Rear) Hydraulic spring loaded type with both side
action
(Rear) 2.75x18-6 PR
Brakes(Front) Drum type (130mm diameter)
Optional : Disc type (240 mm diameter)
(Rear) Drum type (110 mm Diameter)
Headlight 12 V, Halogen Bulb 35/35 w DC type
HERO HONDA 26

Battery 12V-2.5Ah
Ignition Electronic CDI
Starting Kick Starter
Wheelbase 1230mm
Ground Clearance 159mm Length
Kerb Weight 109kgs(Kick start)
Fuel Tank 10.5 liters(Reserve 1.4 liters)
Capacity
India is harmonizing its Emission Norms from Apr 1, 2005. For Two Wheelers,
which constitutes 70% of the vehicle population unique Indian emission norms,
which are one of the tightest in the world have been adopted.
The Fuel Quality plays a very important role in meeting the stringent emission
regulation. The fuel specifications of Gasoline and Diesel have been aligned with the
Corresponding European Fuel Specifications for meeting the Euro II, Euro III and
Euro IV emission norms.
The use of alternative fuels has been promoted in India both for energy
security and emission reduction Delhi and Mumbai have more than 100,000
commercial vehicles running on CNG fuel. Delhi has the largest number of CNG
commercial vehicles running anywhere in the World. India is planning to introduce
Biodiesel; Ethanol Gasoline blends in a phased manner and has drawn up a road
map for the same.
The Indian auto Industry is working with the authorities to facilitate for
introduction of the alternative fuels. India has also setup a task force for preparing
the Hydrogen road map. The use of LPG has also been introduced as an auto fuel
and the oil industry has drawn up plans for setting up of Auto LPG dispensing station
in major cities.
HERO HONDA 27
The latest technology is being adopted by the companies and is being

launched in India as well. One of the latest technologies is the Hybrid Engines which
are launched by Honda motors in India.
A lot of new safety measures are now taken into consideration before the car
or any other motor vehicle is launched to ensure its safety and reliability.
 Programmed Electronic Fuel Injection (PGM – FI) for the best drivability
& lesser gear changes in traffic
 Real time Mileage indicator (RTMI) for achieving optimum mileage
 Bank Angle Sensor – Cuts off fuel supply in case of a tip over - an
industry first safety feature
 Lowest Emissions – will meet even the most stringent emission norms of
the future
 No carburetor – less maintenance
 Starts easily in all weather conditions – even in very low temperatures
Hero Honda Motors Ltd., the ‘World No.1’ two-wheeler company, today
announced the launch of India’s first Fuel Injection technology for two-wheelers, with
the 125 cc Glamour FI. The new technology eliminates the need for a carburetor,
offers the most comfortable drive and the lowest emissions, in addition to a host of
other features, which will be available for the first time to Indian two-wheeler riders.
The Glamour FI will be launched in 2 variants – Drum Kick at Rs. 49,990/- and the
fully loaded Disc Self at Rs. 53,990, ex-showroom Delhi. and will be available in 60
towns at over 180 Hero Honda dealerships throughout the country. Hero Honda
plans on extending the Fuel Injection technology to other models gradually.
Glamour FI, based on stylish 125cc motorcycle Glamour, has better fuel
efficiency and ease of engine start, due to the effect of PGM-FI. Riders can view the
digital real-time fuel economy indicator situated at meter face, to know the bike’s fuel
efficiency at any given point of time. Its design is more refined, with its engine
integrated with black color and its unique FI logo.
Speaking on this momentous occasion, Mr. Brijmohan Lall, Chairman, Hero
Honda Motors said, “The Hero Honda family is elated to have set yet another
precedent in the Indian two-wheeler industry. Fuel Injection Technology has till now
been used in cars and is being introduced in two wheelers for the very first time in
HERO HONDA 28
India by Hero Honda, with the help of Honda Motor Company. This is the technology
of the future for all two-wheelers and we feel privileged to be the first company to
offer this technology in India, with the launch of the Glamour FI.”
According to Mr. Pawan Munjal, Managing Director, Hero Honda Motors,

“Today’s launch reiterates Hero Honda’s superior technological edge and pedigree
of bringing world class technology to India. Through the years, we have successfully
endeavored to deliver the best value proposition to our customers and we will
continue to provide them with products that incorporate the most advanced
technology, design and fuel-efficiency”.
The Glamour FI has a distinctive PGM - FI feature (Programmed Fuel

Injection) , a first in two-wheelers. This is an intelligent computer controlled electronic
fuel injection system which scans critical engine operating conditions through
sensors and provides input to the Electronic Control Unit (ECU) to inject the accurate
amount of fuel as per the requirement. The sensors include - throttle position, engine
operating temperature, intake air temperature, manifold absolute air pressure and
crank angle.
• Offers improved fuel efficiency & better emission performance

• Excellent drivability owing to quick throttle response
• Excellent cold starting ability (no choke operation)
• Consistent engine performance at varying altitudes and ambience temperature
• Ability to run the bike at lower speeds on top gear without engine knocking that
translates into less gear changes in congested traffic conditions.
• No starting problems after long storage periods.
The RTMI takes input on distance travelled and fuel consumed from the
speed sensor and ECU and displays the average mileage for the preceding 10
seconds.
• Enables the rider to know the "Real Time Mileage"

• Provides an opportunity to adjust riding style to get the optimum mileage
HERO HONDA 29
The Glamour FI has a Bank Angle Sensor, an industry first feature, is an

important safety feature which cuts off the fuel supply & ignition if the bike tips over
(falls). Apart from these the motorcycle has a FI Malfunction Indicator Lamp which
diagnoses any malfunction of sensors and indicates the same to the rider and a LCD
Fuel Gauge displays fuel level in the fuel tank which is easy to read and
contemporary. Apart from the new FI technology, Hero Honda’s Glamour also
showcases new body coloured grab rail and rear view mirrors.
The overall two-wheeler market in India has been growing rapidly, reaching
approximately 7,300,000 units in 2005, a 15% increase from 2004. The market is
expected to grow further in 2006, up to approximately 8,500,000 units, a 17%
increase from 2005.
Hero Honda Motors was incorporated in 1984 as a joint venture between

Honda Motor Company and the Hero Group. Hero Honda began production of
motorcycle in 1985. Its annual capacity of production at the moment is 3,450,000
units together with its first plant in Dalhera and the second in Gurgaon. This
September, the annual capacity of production in the first plant in Dalhera will be
expanded to 1,950,000 units from 1,500,000 units by adding a new line. Moreover,
its annual capacity will increase to 4,400,000 units in 2007 when the third plant with
500,000 units of annual capacity of production will be constructed.
Hero Honda's product range includes successful motorcycles that have

redefined the Indian motorcycle market: Hero Honda Super Splendor, Hero Honda
Glamour; Hero Honda Karizma; Hero Honda Passion Plus; Hero Honda Splendor +,
Hero Honda CD Deluxe, Hero Honda CD Dawn and Hero Honda Achiever. Hero
Honda Splendor is the largest selling motorcycle brand in the world. The company
recently ventured into the scooter market with launch of Hero Honda Pleasure, which
has been very well received in the market.
4. Social-Cultural Environment
CORPORATE SOCIAL RESPONSIBILITY (CSR) OF HERO HONDA
HERO HONDA 30
 STAKEHOLDER TIES AT THE GRASSROOTS
Hero Honda Motors takes considerable pride in its stakeholder relationships,

especially ones developed at the grassroots. The Company believes it has managed
to bring an economically and socially backward region in Dharuhera, Haryana, into
the national economic mainstream.
An Integrated Rural Development Centre has been set up on 40 acres of land

along the Delhi-Jaipur Highway. The Centre-complete with wide approach roads,
clean water, and education facilities for both adults and children-now nurtures a
vibrant, educated and healthy community.
The Foundation has adopted various villages located within vicinity of the
Hero Honda factory at Dharuhera for integrated rural development. This includes:
 Installation of deep bore hand pumps to provide clean drinking water.

 Constructing metalled roads and connecting these villages to the National
Highway (NH -8).
 Renovating primary school buildings and providing hygienic water and toilet
facilities.
 Ensuring a proper drainage system at each of these villages to prevent water-
logging.
 Promoting non-conventional sources of energy by providing a 50 per cent
subsidy on biogas plants. Other key projects taken up by the Foundation
include:
 Raman Munjal Memorial Hospital
Multi-specialty hospital equipped with the latest diagnostic and surgical

technology. The Raman Munjal Memorial Hospital provides healthcare to the
rural population in and around Dharuhera, and also caters to accident and trauma
victims driving along the Delhi-Jaipur highway.
 Raman Munjal Vidya Mandir
HERO HONDA 31
The Raman Munjal Vidya Mandir began with three classes

(up to class II) and 55 students from nearby areas. It has now grown into a
modern Senior Secondary, CBSE affiliated co-educational school with over 1200
students and 61 teachers. The school has a spacious playground, an ultra-
modern laboratory, a well-equipped audio visual room, an activity room, a well-
stocked library and a computer centre.
 Raman Munjal Sports Complex
The Raman Munjal Sports Complex has basketball courts, volleyball

courts, and hockey and football grounds are used by the local villagers. In the
near future, sports academies are planned for volley ball and basket ball, in
collaboration with National Sports Authority of India.
 Vocational Training Centre
In order to help local rural people, especially women, Hero Honda has
set up a Vocational Training Centre. So far 26 batches comprising of nearly 625
women have been trained in tailoring, embroidery and knitting. The Company has
helped women trained at this centre to set up a production unit to stitch uniforms
for Hero Honda employees. Interestingly, most of the women are now self-
employed.
 Adult Literacy Mission
This Scheme was launched on 21st September, 1999, covering the

nearby villages of Malpura, Kapriwas and Sidhrawali. The project started with a
modest enrolment of 36 adults. Hero Honda is now in the process of imparting
Adult Literacy Capsules to another 100 adults by getting village heads and other
prominent villagers to motivate illiterate adults.
 Marriages of underprivileged girls
HERO HONDA 32
Marriages are organized from time to time, particularly for girls from
backward classes, by the Foundation by providing financial help and other
support to the families.
 Rural Health Care
Besides setting up a modern hospital, the Foundation also regularly

provides doorstep health care services to the local community. Free health care
and medical camps are now a regular feature in the Hero Group's community
outreach program.
 As a part of ‘Hero Honda We Care’, the company’s Corporate Social

Responsibility (CSR) program, the company has lined up several initiatives that
promise to bring about significant improvements in the lives of people residing in
Haridwar and neighboring areas. This is reflective of the sustainability mantra that
Hero Honda has always believed in and followed wherever it does business.
A group company will be setting up a Technology Park, two Industrial Parks

and a shopping mall within the plant complex over the next two years. Housing
issues will be addressed with the construction of two residential complexes.
Accessibility of quality healthcare and education are other priority areas, and
accordingly the company plans to set up 200-bed hospital and a school within the
plant complex. All this envisions creation of an industrial cluster in Uttarakhand
which will multiply generation of wealth and prosperity in the region.
5. International Environment
Today’s economy has globalized in which geographical boundaries of country
have only political relevance; the economic relevance has extended beyond this.
Today market classification does not take into account only national
parameter but global parameters.
One factor that directly contributes to the industry's disproportionate impact on

economic activity is its cyclical nature. Detailed information on the automobile
HERO HONDA 33
industry illustrates its disproportionate impact on regional and national economic

activity.
Starting as a bicycle company, it set up a 50/50 joint venture, set up in 1984

with Honda Japan, to manufacture and sell motorcycles in India. Honda brought in
the technological know-how and Hero the India presence, and the local
manufacturing ability.
Hero Honda Motors captured the market for motorcycles in India, by offering
an affordable 4-stroke, 100 CC motorcycles that was extremely fuel efficient.
They also established dealerships al over the country even rural areas.
The strategy of Hero Honda Motors was to capture the market by offering a
superior product at an affordable price, with excellent customer service. (Right cost)
The strategy has been successful to date and Hero Honda Motors (India) Ltd.
is the dominant market leader with over 50% of market share, ahead of closest
competitors Bajaj (Kawasaki JV) and TVS-Suzuki in the international market.
Hero Honda is World No 1 Two-wheeler Company for the seventh

consecutive year. So, in the international market Hero Honda’s performance also
well.
HERO HONDA 34
Industry analysis of hero honda

There are mainly five points into industry analysis.
1. Industry setting
2. Industry structure
3. Industry attractiveness
4. Industry performance
5. Industry practices
1) Industry Setting
Its deal with the pattern of an industry in terms of their stages of evolution and
maturation as well as geographically diemension.such as-
a) Fragmented industry
b) Emerging industry
c) Industry undergoing on maturation
d) Decline industry
e) Global industry
According to survey of Hero Honda the industry belongs to the Fragmented,

Maturation and Global industry as well.
Feagmented – Because of Hero Honda are in Two-wheelers, Four- wheelers

Bicycles segments.
Maturation-now Hero Honda is on maturation lifecycle.
HERO HONDA 35
Global industry- Hero Honda is World No 1 Two-wheeler Company.
2) Industry Structure
The industry structure means the economical and technological factors of an

industry, structure decide by some basic criterias:
Which is been mention some following criteria such as-
a) Pure monopoly
b) Pure oligopoly
c) Pure competition
d) Differentiation oligopoly
e) Monopolistic competition
“Here, the Hero Honda belongs to the Pure Competitons because of here
large numbers of the sellers are exist who are selling bikes. Like Two-wheelers,
Four- wheelers.”
3) Industry Attractiveness
Every company try to increases its overall customers by various activates

whatever it is marketing or other strategy.
But if company’s attractiveness is to be good so customers are also magnetic

related products of a company.
Industry attractiveness define as-
a) Nature of the demand

b) Industry potential
HERO HONDA 36
c) Profit potential
d) Entry & exit ratio
According to Hero Honda‘s survey:

1. The nature of the demand- so high, you can see the nothing place of an India
where you don’t see the Hero Honda’s Two-wheelers.
2. Industry potential- the scope of the Hero Honda is great in whole market of an
India as well as in global market.
3. Profit potential-here the attractiveness of the company is high due to profit

margin of the company is high
4. Entry & exit ratio- Hero Honda doesn’t has any exit barriers.
4) Industry Performance:
If the performance of the company is high so profit is high and if profit is high
so industry’s growth is high.
How to measure the performance,
a) Profit
b) Task efficiency
c) Innovation
d) Technology
According to Hero Honda’s survey
a. Profit- the profits of Hero Honda is Net profit after tax at Rs 306.30 crores,
(Q2, FY'08-09) growth of 50 per cent which is more than to past year.
SALES PERFORMANCE

FY 04-05 FY 05-06 FY 06-07 FY 07-08 FY 08-09
HERO HONDA 37
Total Sales 26,21,400 30,00,751 33,36,756 33,37,142 37,22,000

Exports (incl in
64,015 92,666 97,341 90,571 81,193
above)
b. Innovation-Company more and more focused behind innovation.

like in to launch new model in the market.
c. Technology- Hero Honda used highly standard technology.
5) Industry Practices:
a) Price
b) Distribution
c) Promotion
d) R&D
a) Price-
Hero Honda provides full qualitative product and provide after sales services
but,MODEL
they not compromise with
PRICEtheir pricing policy.
CD DELUXE 38531
CD DAWN
PRICE LIST
35401
SPL. PLUS 44777
PASSION 46446
SUPER SPL DRUM 47907
PRICE
SUPER SPL DRUM SS 50264
SUPER SPL DISC 50264
SUPER SPL DISC SS 52336
GLAMOUR DRUM 49577
GLAMOUR DRUM SS 51720
GLAMOUR DISC 51648
GLAMOUR DISC SS 53791
MODEL
ACHIEVER DRUM 53435
ACHIEVER DRUM SS 55304
ACHIEVER DISC 56255
ACHIVER DISC SS 58133
ACHIEVER (R) DRUM 53125
HERO HONDA 38
ACHIEVER (R)DRUM SS 55003

ACHIEVER (R) DISC 55939
ACHIEVER (R) DISC SS 57818
CBZ * DRUM 55271
CBZ * DISC 60492
CBZ * DISC SS 65994
KARIZMA 77182
PLAZER 40974
b) Distribution-
The sales and service network of Hero Honda now spans over 3000
points. The service network comprises of a mix of dealerships, service and
spare points, spare parts stockiest and authorized representatives of dealers
located across different parts.
c) Promotion- Hero Honda more and more concentrate behind ambassadors

such as for:
India's largest motorcycle maker, Hero Honda Motors, said on
it has signed –
Hrithik Roshan, Prianka Chopra, Virender Sehwag,

Sourav Ganguly, Mohammad Kaif, Yuvraj Singh and Zaheer Khan
- as its brand ambassadors.
d) R&D-
Hero Honda has been finding the going tough in a competitve motorcycle
market environment with Bajaj Auto and TVS Motors.
Royalty payments to secure technology and research and development
support are needed. Royalty & Technology (R&T) fee is now Hero Honda`s third
biggest expenditure head, after raw materials and employee expenses, and the
fastest growing too.
HERO HONDA 39
While royalty payments are increasing, realizations are declining in real terms
and input costs are rising. With each passing year, Honda is walking away with a
higher share of Hero Honda`s revenue, even as the average price of the 100cc
motorcycle has declined by around 25% in last four years.
Together with its own R&D expenses, product development cost (PDC) now
accounts for over 2.7% of its net sales compared to less than 1% five years ago. In
contrast, the figure for Bajaj Auto and TVS Motors was only 1.4% and 2.3% of net
sales, and is declining as revenues and sales grow.
BIBLIOGRAPHY
 Books
 Strategic Management
By: L.M.Prasad
 Sites
1) www.herohonda.com
2) www.herogroup.com
3) www.indiaautomobile.com
4) www.athorstream.com
5) www.google.com
6) www.wikipedia.org
HERO HONDA 40

Hero Honda's Mission, Vision, Environmental & Indusrtial Analysis

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VIVEKANAND COLLEGE FOR BBA

TOPIC: - MISSION, VISION, ENVIRONMENTAL &

VIVEKANAND COLLEGE FOR B.B.A.

The company's most popular model is the Hero Honda's Splendor,

Munjal Brothers: Mr. Satyanand Munjal, Mr. Brijmohan

Year of Establishment 1984 (The Hero Group was established in 1956)

Foundational Work Before the establishment of the Hero Group in 1956,

Industry Automotive - Two Wheelers

Business Group The Hero Group

Capitalization Ratio Hero Group - 26%

Listings & its codes BSE - Code: 500182

No. of Sales Outlets 1500+

Registered & Corporate 34, Community Centre

Work Station 69 Km Stone

Hero Honda has three manufacturing facilities based at Dharuhera and

In the mid-1980s, the Indian government regulations changed and permitted

 Definition of Mission Statement:

A mission statement is a formal short written statement of the

Mission statements often contain the following:

 Purpose and aim of the organization.

 The organization's primary stakeholders: clients, stockholders, congregation,

Hero Honda’s Mission statement

Hero Honda should have this type of Mission statement

“Hero Honda is committed to being a highly profitable, socially responsible, and

 Definition of Vision Statement:

A Vision statement outlines what the organization wants to be, or how it

Vision: Defines the desired or intended future state of an organization or

 Hero Honda’s Mission & Vision Statement are same:

Hero Honda should have this type of vision statement

Retained the coveted position of World No 1 Two-wheeler Company for the

b) High Sales Growth:

e) High financial performance:

c) Lack of recycling scrap:

In Hero Group there is no organized labor union and family members of

a) High GDP & increasing income level of consumer:

Supported by strong demand impulses, especially in the manufacturing and

As a nation, India has prospered. People living in households with incomes

b) Good will of the company:

c) Technical renovation aspect:

Environmental factors OF hero Honda

financial year, the index of industrial production contracted on three occasions,

In the previous year, the domestic two-wheeler industry entered a period

2. Political - Legal Environment

Political and Legal environment is an important factor particularly in a

ARAI provides technical expertise in R&D, testing, certification,

The Indian Auto Industry is harmonizing both Safety & Emission

KEY POLICIES FOLLWED BY HERO HONDA

AN ENVIRONMENTALLY AND SOCIALLY, AWARE COMPANY

A famous quote from our Worthy Chairman Mr.Brijmohan Lall Munjal

We at Hero Honda are committed to demonstrate excellence in our

To achieve this we commit ourselves to:

 Integrate environmental attributes and cleaner production in all our business

 Example of ethical practice:

“Excellence in quality is the core value of Hero Honda's philosophy.”

 Innovation in products processes and services.

 Example of ethical practice: On the comparative performance undertaken for

Hero Honda is committed to safety and health of its employees

We shall create a safety culture in the organization by:

 Integrating safety and health matters in all our activities.

To ensure this, we manufacture and procure the replacement parts according

 HERO HONDA FOLLOWS 3E’s IN FORM OF ETHICS

 As a socially responsible company we urge you to join us in making this world

Engineering – which is the right technology, specifically designed for Indian