Bombane, Aliza Katelyn M.

BSA – 4th year

Case study 3: How Honda became successful

Questions

1. How many different explanations for success are evident here? Can you think of any more
possibilities?

 There are two different explanations for success on how Honda became successful. It is
also one factor that makes them successful is that the company is financially secure.
Honda has always had engineers at the helm who have guided the company through
technology-driven development. It has been driven by diversification with everything
from powered equipment through to planes, giving them plenty of cross-pollination
technological developments.

2. How might you judge between the validity of these rival explanations?

 The first of these explanations is that the report concluded that the Japanese firms,
including Honda, had sought a very high scale of production in order to benefit from
economies of scale and learning curve effects. The second explanation was offered in
1984 by Richard Pascale, who had interviewed the Honda executives responsible for the
firm's entry into the US market. Creating the concept of core competencies with Honda as
an example, they argued that Honda's success was due to its focus on leadership in the
technology of internal combustion engines.

3. Does a company ever know whether its planned strategy is ever responsible for success?

 They have planned strategy but it is not the one who is responsible for their success
because Honda's success was due to the adaptability and hard work of its staff, rather than
any long-term strategy.