Welcome to Honda Ltd.

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HCM International University
Strategic Management for Global Group 8

Outline
• • • • • • • • • • • • Introduction Five levels of strategy Decision maker The six external environments Global challenges Analyze the firm’s structure Organizational process Social responsibility Managing people Evaluations and controls Conclusion References

The Power of Dream
• Soichiro Honda (1906-1992) was Japanese engineer and industrialist, and founder of Honda Co.,Ltd. • In 1937, Honda began producing piston rings-used in motorcycles. • In 1948, Honda stared producing complete motorcycles. • In 1949, Takeo Fujisawa joined the Honda ( one of the most person lead to Honda’s success ) • In 1968, Launching the Honda 1300Honda’s first small car.

Describe the firm today
• 4 main segments following:
– – – – Motorcycle business Automobile business Financial service business Power product and other business

• More than 167.231 associates in the Global scale. • Stand the largest motorcycle manufacturer and the 7th automobile manufacturer in the world. • On the march, 2008, Honda was ranked as the best car in US by Consumer Reports.

The five levels of strategy

Enterprise Strategy
• The Mission Statement of Honda is try to maintain a global point of view, with the dedication to supply the highest quality products at a reasonable price for worldwide customer satisfaction. Moreover, taking new challenges with the pursuit of Initiative, Technology and Quality, Honda is pursuing their 2010 Vision: Striving to be a company society wants to exist through creating new value, globalization, and commitment for the future.

Corporate Strategy
• Automobile Industry
– – – – Superior Fuel economy Optimum safety Driving Pleasure World wide

• Motorcycle Industry
– Build product close to customer – 28 plant, 21 countries, R&D 6 countries

• Power Business
– – – – – First business of Honda Expanded 11 plant, 9 countries, sold 156 countries, used by 5.5M people ASIMO Honda jet

Business Strategy
• R&D System
– Approach:
• Durability • Reliability • Focus Foundation

– Dimensions:
• Economical • Environmental • Social Issues

Business Strategy
• Globalization Characteristic

Business Strategy
• “The Joy of Selling” - Dealership
– Create inspiring experience for its customers – Response to changing value – Increasingly complicated needs of customers
– => Improve customer relations
• Friendly and attentive sales • Responsive service support • Thorough maintenance and repair

– => “Life with Honda”

Operational Strategy
• Divide 6 administrative regional group • Pursue independence of local management and sales operations • Operate under conduct guidelines => keep evaluating and risk managing • High level of transparency

Individual Strategy
• “The Three Joy”
– The Joy of buying – The Joy of Selling
• Not only relationship • But feel pride by positive relationship

– The Joy of Producing
• Pride in exceeding the customer expectation

Organizational Process
– Organization culture – Innovation Management

Organization culture
Respects for the Individual and The Three Joys

Organization culture
• “Respects for the Individual” • “The Three Joys”

“Respects for the Individual”
• Initiative: Encouraging creative thinking • Equality: Fairly treating. • Trust: Good relationship between employees

“The Three Joys”
• The Joy of Buying • The Joy of Selling • The Joy of Producing

Innovation Management
• Developing new technologies of manufacturing system • Building environmentally responsible and people-friendly plants.

Managing People

Managing people
• Environmental training • Ensuring diversity in employment

Environmental training
• Part of Honda’s training curriculum • Deepen associates’ understanding about Honda’s policy toward environmental • Training programs are continuously provided to associates • Promote activities focusing on energy and resource conservation and recycling

Ensuring diversity in employment
• Provide human rights education, based on Honda’s principal of respect for individual • Opendoor employment policy, hiring based on individual merit • Employ people with disabilities • Reemploy retirees, create opportunities for those who reach the retirement age of 60

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