Honda motors introduction and its operation

Honda Motor Company, Ltd., Japanese Honda Giken Kōgyō KK, leading

Japanese manufacturer of motorcycles and a major producer of automobiles for the
world market. Headquarters are in Tokyo.
Honda started as a bicycle auxiliary engine manufacturer in a small factory in
Hamamatsu. Then, Since 1959 it has been the top-selling motorcycle company in the
world and reaching a production of 400 million by the end of 2019, as well as the
world's largest manufacturer of internal combustion engines measured by volume,
producing more than 14 million internal combustion engines each year. honda
became the second-largest Japanese automobile manufacturer in 2001.In 2015,
Honda was the eighth largest automobile manufacturer in the world. Honda has
been involved with artificial intelligence/robotics research and released
their ASIMO robot in 2000.
Honda also has the luxury car line Acura. The company’s other major product
areas include farm machinery and small engines. Honda is a major Japanese
exporter to the United States and to other parts of the world. It also has assembly
plants in a number of other countries and is engaged in joint ventures and
technology-licensing agreements with several foreign companies.
They have also ventured into aerospace with the establishment of GE Honda Aero
Engines in 2004 and the Honda HA-420 HondaJet, which began production in
2012. Honda has two joint-ventures in China: Dongfeng Honda and Guangqi
Honda.
In 2013, Honda invested about 5.7% (US$6.8 billion) of its revenues into research
and development.Also in 2013, Honda became the first Japanese automaker to be a
net exporter from the United States, exporting 108,705 Honda and Acura models,
while importing only 88,357.
Its operation
The Business Operations of Honda motors is for motorcycles, automobiles and
power products develop medium-to-long-term plans for their respective products
and coordinate efforts with regions to optimize and facilitate global business
operations.
In addition, each of the Company’s functional operations — including Brand and
Communication Operations
Business Management Operations
Human Resources and Corporate Governance Operations
IT Operations
Production Operations
Purchasing Operations and Customer First Operations — is providing support and
coordinating efforts to increase the effectiveness and efficiency of the Honda
Group as a whole.
Strategy development process of Honda motors
There are some strategy development process of Honda motors which is:
Enterprise Strategy
According to Honda's mission statement, the company tries to keep a global
perspective while being committed to offering the best products possible for a fair
price in order to satisfy customers all around the world.
Furthermore, Honda is pursuing their 2010 Vision: Aiming to be a business society
wants to exist through creating new value, globalisation, and devotion to the future.
Honda accomplishes this by taking on new challenges in the pursuit of Initiative,
Technology, and Quality.
Corporate Strategy
Honda’s portfolio includes three businesses: Automobiles business, Motorcycles
business, Power business. Even though stepping into Automobile industry rather late at
1963, Honda quickly leads the industry with characteristics like superior fuel economy,
optimum safety, and driving pleasure. Honda’s sales and production in this industry
prove successful steadily not just in U.S. but also in many regions worldwide.

Meanwhile, motorcycle business is the first business of Honda, from 1963 with the event
of the first oversea plant in Belgium, Honda has devoted in one basic rule: build
products close to the customer. Honda has operated successfully in 28 motorcycle plant
in 21 countries, as well as Honda R&D operations in the U.S., Italy, China, Germany,
Thailand, and India. In 2005, the 150-millionth Honda motorcycle created, its business
goal is to make Honda cycles more popular than ever.

Business Strategy
R&D is sharpening the business advantage of Honda, together with the fierce
competition between Honda and competitors, and they all define the Business Strategy
of Honda. One of the proudest things about Honda is its R&D system. With the
systematic way of resembling, focus on durability, reliability and basic performance to
establish a creative and innovative technical foundation.

With the wisely approach to the future, the Honda products do care about the
economical, environmental, and social issues – This leads to a increase steady in
American and Europe recently meanwhile the whole industry is going down by some
external factors such as U.S.D. depreciation, Oil price raising, political recession. Honda is
keeping involving in the research and development that benefit people in the future
through leading-edge technology and commitment to innovation that opens up new
possibilities in mobility.

With “The Joy of Selling” The dealership of Honda is also one of its strengths. Through
creating products and services that provide the core values that make Honda unique,
the Honda’s associates around the world keep creating such inspiring experience for its
customer. Honda put heartfelt endeavors into services, responding to changing values
and increasingly complicated needs of customer worldwide. Its services focus on
improving customer relations, with friendly and attentive sales, responsive service
support, thorough maintenance and repairs. “Life with a Honda” Honda began unifying
its multiple dealership channels into a single Honda sales channel, seeking to strengthen
the Honda brand, enhance customer satisfaction, and help ensure lifetime customer
loyalty.

Operational Strategy
Honda operates in the global market, with 134 production facilities in 28 countries
and 31 R&D facilities in 15 countries, and approximately 167000 Honda
employees and associates serving 23 million customers globally each year. Honda's
global operations are divided into six administrative regions that are in charge of
operations. Hiring and engaging people, along with philanthropic initiatives in the
communities where Honda operates. Honda is promoting the independence of their
local management and sales operations while also integrating and planning for
each region. They follow conduct guidelines that assist member companies and
associates in evaluating and managing risks, complying with laws and regulations,
and maintaining a high level of transparency in operational levels, all in order to
maximise global customer satisfaction.
The Individual Strategy
The individual strategy of Honda is reflected through the Honda’s philosophy –
The Three Joy
  The Joy of buying:- the Honda’s associates must try their best to exceed the
customers’ expectation.
 The joy of selling:- which concern not only about the relationship between
the dealers and their customers, but they also feel the pride of having a
positive relationship with their customers.
 The joy of producing:- comes from manufacturing, research and
development. by producing quality products that satisfy customers
worldwide, the Honda’s employees can experience pride in exceeding the
expectation of their customers.

Nature nd scope:
The Honda Philosophy forms the values shared by all Honda Group companies and
all of their associates. It is the basis for Honda’s corporate activities and the
associates’ behavior and decision-making. To achieve both the creation of growth
opportunities for the Company and a sustainable society, Honda has set striving to
be “a company that society wants to exist” as its direction for the 21st century. It is
also advancing initiatives known as “Creating the Joys,” “Expanding the Joys” and
“Ensuring the Joys for the Next Generation.”
Scope:

The “2030 Vision” is one milestone indicating in concrete terms the direction
Honda ought to take toward realizing these objectives. For Honda to achieve
sustainability, it is important to meet stakeholders’ expectations and needs by
providing value through its products and services. Equally important is to fulfill its
corporate social responsibility, for instance by considering its impact on the
environment and society and to contribute to the resolution of social issues
through its business activities. To this end, Honda devises medium- and long-term
strategies that are based on the perspectives of both stakeholders and Honda
itself. In determining these perspectives, Honda uses the materiality matrix as its
guide and considers the roles it should play and contributions it should make,
geared to the characteristics of each region around the world.
4.
his strategy-formulation
tool (IFE Matrix)
summarizes and evaluates
the major strengths and
weaknesses in the
functional areas of a
business, and it also
provides a basis for
identifying and evaluating
relationships among those
areas. Intuitive judgments
are required in
developing an IFE Matrix,
so the appearance of a
scientific approach
should not be interpreted to
mean this is an all-
powerful technique
his strategy-formulation
tool (IFE Matrix)
summarizes and evaluates
the major strengths and
weaknesses in the
functional areas of a
business, and it also
provides a basis for
identifying and evaluating
relationships among those
areas. Intuitive judgments
are required in
developing an IFE Matrix,
so the appearance of a
scientific approach
should not be interpreted to
mean this is an all-
powerful technique
This strategy-formulation tool summarizes and evaluates the major
strengths and weaknesses in the functional areas of a business, and it also
provides a basis for identifying and evaluating relationships among those
areas. Intuitive judgments are required in developing an IFE table, so the
appearance of a scientific approach should not be interpreted to mean this
is an all-powerful technique.

Key internal Factors (strengths) Weight Rating Weighted Score

1. Brand image 0.15 4 0.60

2. Strong R&D 0.10 3 0.30
3. Timely new models 0.07 3 0.21
4. Advance technology/equipment 0.20 3 0.60
5. Customer loyalty 0.15 3 0.45
Key internal (weaknesses)
1. Costly spare parts 0.08 2 0.16
2. Dealership network 0.05 2 0.10
3. Shortage of trained technician 0.07 2 0.14
4. Limited product line 0.08 1 0.08
5. High production cost 0.05 2 0.10
Total Score 1.00 2.74

From the above table calculation, we can see that the total weighted score for
Honda Atlas is 2.74, which is above of 2.50 by 0.24 points and shows the company
is above the minimum point.

Balance scorecard of Honda: A balanced scorecard is a strategic management

performance metric used to identify and improve various internal business
functions and their resulting external outcomes. Balanced scorecards are used to
measure and provide feedback to organizations.
The balanced scorecard is used to attain objectives, measurements, initiatives, and
goals that result from these four primary functions of a business. The four
perspectives of the balanced scorecard – customer perspective, internal
perspective, innovation and learning perspective, and financial perspective.
1.CUSTOMER PERSPECTIVE: This measure market shares and customer
satisfaction.
The main objective is to ensure customer loyalty and lifetime value. To ensure that
the objective is meeting the customer’s perception of services, appropriateness of
the target market, and customers purchase pattern will be evaluated virtually. Thus,
Honda can use this strategy to increase customer trust and loyalty.
2.INTERNAL PERSPECTIVE: This includes friendly user interfaces, powerful
software architecture, and effectiveness of the distribution system. This critical
analysis of the human resources department, information technology and
distribution medium. Thus, this perspective evaluates the efficiency and
effectiveness of all the business process involved and enhances them for better
customer satisfaction.
3.LEARNING AND GROWTH PERSPECTIVE: This is designed to measure the
effectiveness and speed of innovation and creativity in Toyota, compared to that of
their competitors. Innovation is still a necessity to offer more secured product and
services to their customers; while increasing sales and market shares.
Increase research and development results with sustainable products Innovative
products
4.Learning and Growth Respond quickly to market quality issues from the
customer perspective Employee improvement Objectives to achieve.
Create customer service rewards and goals to improve new customer service
practices, create performance rewards for employees who reach out to different
organization Empowerment Employee satisfaction.
Teamwork rewards Improve employee recognition Training programs to improve
employee's abilities