Group 7 : Section D

13P205 : Deepti Thakral 13P210: Parth Khanna 13P217: Niket Gupta 13P218: Nikhil Saini 13P223: Praveen Kumar 13P228: Rishab Dugar 14IAE01:Chloe Andrieu

Worlds largest manufacturer and 2nd largest company of 2 wheelers subsidiary of Honda Motor Company Ltd, Japan youngest player in the 2 wheeler segment First factory was setup in Manesar with annual capacity of 1.65 million units Other facilities are at Tapakura, Rajasthan and Narsapura, Bangalore Dedicated to supplying products of the highest quality, yet at a reasonable price for worldwide customer satisfaction

Respect for the Individual

Honda recognizes and respects individual differences stems from these: Initiative Equality Trust

The Three Joys

Honda conducts all businesses in pursuit of these: The joy of manufacturing high quality products The joy of selling high quality products The joy of buying high quality products

Honda uses multiple suppliers for each type of component Believes in co-prosperity and exchanges industrys best practices with its suppliers Respects the suppliers capabilities and has an open door policy to build mutual trust

Many

Supplier

Labour Market

Task Environment
Customer

instances of wildcat strikes that hamper production An incident of a security personnel misbehaving with a temporary worker which led to strike Manesar plant Establishment of a union Honda conducts various MDPs for its managers

Strongly believes in enhancing the customer experience and in turn building customer trust These principles have led to the growth of the customer base from 10 million to 15 million in a short span of 18 months integrated its service departments for each region and established Customer Service Operations to provide world wide customer satisfaction Honda conducts customer

Government
100% FDI in automobile had led to almost all major global companies being present in India Increase in the fuel prices has led to need of fuel efficient and alternate fuel vehicles All this led to greater emphasis by Honda on its Research & Development Department

Economy
Slow growth and rupees depreciation has led to a rise in the cost of the imported auto components Led to reduction in the demand and a slump in the automotive industry

Political
political uncertainty till the next general elections has led to a slow economic growth This affects the sales of the automotive industry This downturn has led many companies to delay their expansion plans

 Hondas environment is of Low/Medium uncertainty To deal with this, Honda has a mechanistic structure with different functional departments for different purposes There are clearly defined roles and heads are responsible for integrating and co-ordinating among the different functional departments Feedback obtained through internet and satisfaction surveys is closely monitored by the companys Sales and Marketing department S&M works in close collaboration with the R&D department to ensure a good customer experience

Honda has a functional structure Activities are grouped together by common function Further these operations are divided into Departments Every department is responsible to achieve their own targets and works in close collaboration with other departments

ADVANTAGES
Economies of scale In-depth knowledge Skill Development DISADVANTAGES Slow response time Poor horizontal coordination among departments

Hierarchy structure is followed Employee is reports to his immediate senior and chain of command is followed till top management Workers report to supervisor/junior executive who are diploma holders Supervisor/ junior executive look after the daily production and manufacturing targets Span of control is more at bottom level of organisation Junior Executive handles around 15-20 workers Span of control reduce to approx. 3-4 as hierarchy reaches the top management

 They are the mechanism of coordination among various departments to increase the effectiveness In Honda direct contact and hierarchy are used Due to this time lag in decision making is always there In case of new project or in operations like sales & marketing, team mechanism is followed

 Honda has a collaborative relationship with its suppliers & dealers The long term benefits of Honda being partner with its suppliers High dependence and trust Low cost and high quality products Partnership approach rather than traditional adversarial approach

 Honda following of stringent rules & regulation and discipline culture Different culture is being followed in different operations In manufacturing: bureaucratic culture with daily targets to achieve Culture is to follow rules & regulation Employees wear a dress defined in companys book In operations like customer service, sales: Adaptable culture to fulfil customer requirements on priority basis

Overall Hondas Culture Friendly culture Follows equality, every employee is expected to wear the same uniform i.e. worker and presidents wear the same uniform As well as a very demanding culture wherein employees are expected to put in best effort in assigned job Honda believes in taking care of its employees and increasing their participation levels to improve quality

Honda parted ways with Hero In 2010 Since then Honda has been following very aggressive strategy to be no.1 in Market It has acquired 2nd position in two wheeler market after growing at very rapid rate It has opened 4 plants in last 3 years. Lot of changes in top management and new roles & responsibilities to managers With such rapid expansion , Honda needs to restructure its organisation structure

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