Welcome to Honda Ltd.

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 1300-
Honda’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