The Strategic Direction For The Future Essay

THE HONDA MOTOR COMPANY LIMITED has established in 24th September 1948. Honda has enlargement to take a prima place in the field of bike car and power merchandise Nipponese market was in the nuisance because of the deficit of money and fuel but JAPAN was still in require of basic transit Honda utilise All rights booked. Honda fabricating installation attract engine to a bike that create inexpensive and efficient method of transit.

In the planetary market the Honda is universe largest engine industry and market leader in the bike. Honda has been runing 120 fabrication installation in 29 state and 167,234 people world-wide Honda has broaden whole over the universe in the undermentioned market.

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Honda established in United States of America in 1959 by the name of American Honda motor

In Thailand 1964 Asian Honda motor company limited.

The first market in the Europe in 1963 Honda ( UK ) limited recognized in the LONDON

Honda found in the South America ( BRAZIL SAO PAULO ) in the 1971 by the name of Honda motor Brazil.

By the late 1980 the merely 25 twelvemonth after the house entered in the car industry. The cardinal point of spell in forepart the Honda ‘s success is uninterrupted invention that was found by MR SOICHIRO HONDA had a great involvement in car as footing today the Honda company base as the 9th largest motor rhythm industry in the universe. The market portion of the Honda until now 10.2 % and its ranked a no 5 in the UNITED STATES OF AMERICA.

In 2006
Honda aircraft company begins the gross revenues of the in Honda jet progress visible radiation the 2006 the Honda air power company awarded by popular scientific discipline magazines the victor of the publications 2006 air power and infinite class

The Honda Philippines begins the mass production their bike works

Honda established subordinate in Ukraine.

New car works in the Vietnam begins operation ( civic ) and flexible auto at Brazil launched the cold wing airbag the first adult male market bike with an air bag company to carry on solar cell concern established.

In 2007
Honda gross revenues it is traveling to establish low monetary value loanblend and progress Diesel technological in the close hereafter.they were besides voted as figure one auto industry in the universe for the 3rd period.

In 2007 the monetary value of fuel was high and the less efficient ( US ) economic system but Honda reported 1 % gross revenues increased while its rival including Toyota has reported dual loss. Honda gross revenues grow about 20 % in 2007 twelvemonth.

Honda Nissan and Toyota were still non safe to the planetary fiscal crisis of 2008 as these company declined in the net incomes at the Beijing car show Honda presented the LI NIAN 5-door niche bank and announced that they were looking to developed an entry degree trade name entirely for the Chinese market similar Toyota SCION trade name in the USA


Chief merchandise and services


Motorcycle concern

Motor rhythm terrain vehicles and personal motor trade and vehicle

Research and development fabrication gross revenues related service

Car concern

Car and relevant parts

Research and development fabrication gross revenues related service

Financial service concern

Financial insurance services

Research and development fabrication gross revenues and related services

Power merchandise and other concern

Power merchandises and relevant portion and others

Research and development fabrication gross revenues and related services others


In whole over the universe Honda had 144.785 employee in 2006 this figure has increased in 2007 and reached at 167,231 in the Honda group.

In 2007 the sale of Honda grew 11.9 per centum compared in 2006.

In the foreign market the gross revenues grew 7.7 per centums on car and 9.3 per centum on the power merchandise. Because of the universe recession bike market of Honda in the North America, Europe or in the Asiatic market is non grew existent.

Honda runing informations in the per centum harmonizing to the concern portfolio in the 2007



As Honda is planetary company and Honda Company has broaden whole over the universe in America, Europe or in the Asia. The scheme is to keep the competent supply the utmost quality of the merchandise at low monetary value worldwide client and satisfied them. However besides better their quality to develop more in merchandise and launched into the planetary market and committedness for the hereafter.

Corporate Scheme
The Honda Company is includes four business- bikes, car, power and the fiscal concern. In 1963 the Honda becomes the leader with the features like utmost fuel economic system, best safety merchandise and driving more contentment. Honda proves their ego non in Japan and US but it has proved worldwide.

Motor concern was the first concern of the Honda because of the particular involvement of the MR HONDA in the car Mobile. Honda has operated lucratively in 28 bike works in the 21 states every bit good as R & A ; D operation in the US, INDIA, ITALY, CHINA, GERMANY and THAILAND. Then Honda becomes the more popular than of all time.

The first power merchandise lunched in the 1953 and has prolonged portable generator, out board engines, power bearer. The power merchandises are produced at 11 workss in the 9 different states. Honda is stretched it to the automaton industry with ASIMO and Honda has reached on the sky after launched Honda jet and besides supplying fiscal services worldwide to better the gross revenues.


Honda concern scheme is to R & A ; D compete in the competitory car industry.Honda ever concentrate on the quality of the merchandise, lastingness and environmental and societal issues, low fuel efficiency than other car industry in the market in the. Honda continuously originative and advanced proficient foundation, these all scheme leads Honda easy in the US and Europe at clip of oil rate flatution and the universe recession but Honda keep their R & A ; D scheme that will benefits people every bit good as company in the hereafter.

The franchise of the Honda is besides one the strength. The invention and the efficient service supply, fabrication and distribution system is besides a beginning of success in the planetary market.

The universe car market is captured by Asian trade names in the US market.threats to the US auto shaper is the turning TOYOTA, HONDA and NISSAN that are endangering scheme to the GENERAL MOTOR the universe current largest auto shaper.

The Honda motor rival of all clip whole over the universe TOYOTA MOTOR, NISSAN HYUNDAI.FORD VOLKES WAGON and GENERAL MOTOR.

Honda operational scheme is to fulfill their client worldwide by client or besides maintaining the high degree of transparence in the operational degree they besides follow the jurisprudence and the ordinance to execute better their operational scheme harmonizing to the state where they want to make concern. The Honda scheme is to look future prognosis. The Honda operates world-wide market with the 167234 employees and associate to bring forth their service to 23million client yearly worldwide.

The single scheme of Honda Company is to sell with felicity, green goods by felicity, and purchase with the felicity. Sell with the felicity means to do good communicating with their trader and. Produce with the felicity means fabrication and R & A ; D and produce choice merchandise whole over the universe for their client. Buy with the felicity means associate with their client outlook whole over the universe.

The macro analysis examines chances and menaces that exist in the environment. Both chances and menaces exist independently of the organisation. The SWOT ANALYSIS differentiates between a strength and failing from an chance and menace. PESTLE and Porters 5 Forces have been regarded as two effectual tools they are besides known as the macro factors.

P – POLITICAL – In the 1965 the US was engage with the Vietnam in war. American represents the Honda 50 modal in the south Asiatic market because of the bad economic status modal 50 was non so much success is was declined in the market. In the 2005 the involvement rates in the Indonesia were rise because of the authorities improbableness it consequence rising prices and lifting the monetary value of the gasolene in 2006 the authorities scheme remain same but all of a sudden the economic system of the India were boost on that clip the demand of the bike were high their and the easy concern regulation and the revenue enhancement ordinance lead Honda to India than Honda get down doing the net income that was one of the strength of the Honda.

E – ECONOMIC – Honda go wider its concern in whole over the universe ( North America, Europe, and Asia ) because of the universe recession Honda loss their consumer to a great extent the other factor besides influence like lifting the monetary value of fuel declined the demand for the car, bike, and the power merchandise. Because of the recession and the fluctuating gas monetary value in 2007 Honda unit gross revenues declined 18.2 % in the North America.

S – SOCIAL CULTURAL – Honda has 167,134 employees worldwide Honda has better the employment for the local community in the North America, Europe and in the Asia. Since the recession is entered in whole over the universe Honda is advanced and introduce new merchandise in the market less cost and the best quality than China makers they besides have done research and development on to bring forth or establish less pollution vehicles in whole over the universe.

T – TECHNOLOGICAL – Technology is critical for competitory advantage and is a most of import driver of globalisation. Honda has using the information engineering to command their universe broad operation. On the production procedure the Honda motor is innovated since they have started car concern. Honda is innovated in the car fit machine and mass production, distribution, reduces cost besides save clip. On the selling procedure Honda advertise on the intelligence paper, Magazine. With the aid of the cyberspace ( IT ) they have displayed their approaching modal on the different web site or promote people merchandising on line.

L – LEGAL – The parametric quantities set for a concern by a regulating organic structure like the legal deductions in footings of merchandises and services to be sold out, in footings of regulations and ordinances imposed on employment by jurisprudence etc.china maker start doing job to Honda.the mentums maker start doing the bike in the southern Asia to get the better of Honda the economic status of the south Asia was non good because of the recession or oil monetary value fluctuation.the people were non purchasing the Honda motor rhythm at the same clip mentums maker start doing the bike on the really less monetary value than Honda, to get the better of this state of affairs Honda launched new modal VAVE in the market with less monetary value and high quality.

E – ENVIRONMENTAL – the environmental job like planetary heating, hole on ozone bed because of the pollution. Honda continuously research on the less emit ion of CO2 & A ; toxic waste & A ; to develop intercrossed and electronic vehicle. They have besides generated and implement less pollution Diesel engine.

2.2 PORTERS FIVE Forces Analysis
Porters five forces analysis helps to contrast a competitory environment of the administration it ‘s besides shown in the diagram description are as following.

Menace of new entrant ‘s – now a yearss the concern environment is really competitory in whole over the is continuously, sharply perpetrating with the Honda or bring forthing barriers to do maximal net income for the Honda in the market. Honda has besides acquiring the job in the distribution system in the USA instead than FORD because of the US authorities jurisprudence and policies.

2. Dickering power of Buyers – Buyers are the client of Honda ever take attention of the outlook their client, as Honda is planetary company so the Honda ever maintain innovating, developing, researching and establishing new merchandise for the different age group for case Honda launched air blade scooter in the Vietnam in 2007 to pull immature people but in the 2007 Suzuki has besides launched modal of Hayete scooter with same map like air blade but monetary value was less than air blade so the client preferred to purchase Hayete scooter modal of Suzuki result the portion monetary value of Honda were shrink.

3. Menace of replacement merchandises – Trade names like Yamaha bike company Yamaha can be the best rival for the Honda. Yamaha is besides pioneered in the concern of the bike fabrication, if the Yamaha make good quality than the Honda for case R6 modal of the Yamaha is close replacements of the Honda modal F4 if the Yamaha innovative or better the quality and worsen the monetary value than Honda it can be really serious job for Honda.

4. Dickering power of providers – Contract, natural stuff providers, the volume of the natural stuff suppliers would find their supply capacity, provider are really powerful. Honda ever influence on to bring forth less monetary value vehicle than other motor company like general motor, Ford motor to vie in the market.supplier are really power full they can decline to make work with the or they can exchange their supply or get down making work with GM motor or the Ford motor, in instance Honda loss their cardinal provider it might be affect cost it could travel up.

5. Competitive competition – It ‘s the concern competition in between other company in the market in the car industry Honda has three bigger challenger Honda have to vie with them like general motor, Ford motor, and Toyota motor. these three challenger of Honda ever maintain invention research and development on their average clip to clip to vie in the market for case Honda introduce ACCORD modal in1976, after that the Toyota introduce the modal CAMRY in the market. At the same clip general motor introduce MALIBU and Ford introduced FUSION. Toyota. General motor and Ford motor can replace Honda from the market.Honda have to better their quality and should be more innovate to vie.

Highly cognizant trade name name and the company base on the 9 place on planetary graduated table with the 167000 employee and the associate.

Honda has made outstanding dealingss with their providers, interest holder or with client worldwide developing the fabrication engineering.

Differentiation from other company like Toyota, GM motor Ford economically.

Environmental witting they have launched intercrossed autos or less emit ion Diesel engines..

Since they have been start car concern Honda motor is Innovative, and making research and development to fulfill the demand of the client.

The Honda is planetary company Image of the company is more of a “ cool ” sort and non professional some clip they stress a batch on to bring forth a low monetary value car

It ‘s non planetary, focuses chiefly on the UNITED STATES or the Europe.

Has merely one chief hub and limited finish to make to concern

Since they started the concern in the car industry they extremely Target the major continents ( SOUTH ASIA, AMERICA, and EUROPE )

Honda has opening more hubs in cardinal geographical countries as concern units in the Vietnam China and India. Gross saless publicities and selling on the planetary graduated table through different web sites and different concern magazines.

Changing the authorities policies revenue enhancement policies in different states fuel rate fluctuation universe economic recession.

Menace from the large trade name in the planetary market like ( GENERAL MOTOR, FORD, TOYOTA. These all creates competitory environment in planetary market for Honda motor.

The Global economic recession, fuel monetary value fluctuation worldwide and natural catastrophes like tornado hurricane.

High quality, low monetary value more safety characteristic like airbag etc.

Honda motor organisational environment is really professional, they innovative the supply concatenation and the distribution system and the fabrication system is the nucleus competence. Personal research on the client demand in the planetary market. They have separate section to manage the client ailment and the client issue.

The nucleus competence of the Honda motor is to establish their merchandise in the planetary market with low monetary value than other automobile company in the planetary market.

Reference http//world, /organisation/

The Honda have supervise their operation from the Japan in whole over the universe like in the China, Asia & A ; pelagic, Europe Latin America north regional gross revenues operates from the Japan

As Honda is a planetary administration, the interest holder is client their employee, concern single company, merchandising brotherhood. The place of their interest holder is really strong worldwide. Board of the manager primary responsibility is to choose qualified employee and associated or the CEO to run their operation really swimmingly worldwide.

The working environment of the Honda corporation is really friendly, good communicating with employee and board of the manager.

Honda has continuously coordinated with internal and external work force in board of manager and hearers to execute good in the market. The Honda Corporation run their four basic operations in the car bike and power merchandise and service portion.

The undermentioned study looks after the macro analysis of an administration, and sing all these factors gives us the apprehension of SWOT analysis of the administration pestel analysis porter five forces and cardinal driver and nucleus competence. Based on this selling analysis, Mr sosichiro Honda the laminitis of the Honda motor because of his great involvement in the car. He has made a large planetary administration to function their merchandise in whole over the universe including American continent Europe and Asia.

Honda gives regard separately, every employee give them opportunity to turn up them self and originate. Initiate means the company encourage people to be originative. Honda motor is besides described as the all the three HAPPINESS. BUY WITH THE HAPPINESS, PRODUCE WITH HAPPINESS, SELL WITH THE HAPPINESS. Honda maintain his place in the planetary graduated table they have done invention since they have started Honda motor in 1948 and the consistence in the in the operations, fabrication and supply worldwide. in the term of the advertise to distribute consciousness about their merchandise clip to clip on different web sites and intelligence paper, different concern magazines

Key factor to last or vie in the planetary market & A ; fulfil the demand of their client & A ; and do happy their interest holders. Honda proudly focus on invention

The picks of the company is launched more innovated merchandise in the planetary market less pollution. Since they have launched less emit ion Diesel engine for the air trade and intercrossed auto for the safe environment. Now the Honda scheme is to research the concern in the market or India and China and North America ( Brazil ) because these two states economic system is grooving really fast so purchasing power the consumer is really they have already launched so many car in the Indian market like less monetary value Honda unicorn 150 milliliter engine, Honda dio, Honda eterno scooter and to be more innovated to bring forth more economical vehicle less pollution better characteristic and more safety for their consumer. Or they besides publicizing of their new merchandise launching on the different web site or in the different magazine their scheme is to do people to the full cognizant about their new merchandises in the planetary market. Honda besides gives the environmental preparation for employee and associate or develop more engineering to go a planetary market leader.

3.1.1 Based on the competitory scheme
Honda is planetary administration its spread around the universe it stand on the 9th topographic point in car industry there are some outstanding company in the universe of car besides spread around the universe like Toyota.general motor, Ford, mercerizes, these all motor has made the really competitory environment for concern in forepart of the Honda motor.

Harmonizing to the analysis of the subdivision one and two the place of the Honda motor in the planetary market is better than the other company in the market in 2007 the Honda motor is reported 1 per centum of growing in the clip of universe recession or fuel rate fluctuation in whole over the universe all company like General motor, Ford or other automobile company record really heavy losingss on their sale on the planetary graduated table but Honda motor is innovated since they start car concern.

After expression at all the analysis of the administration Honda should hold to make the smart work to go the planetary leader. Honda is planetary company. The board of manager and the associate have to choose right individual for the right occupation like the hire good and educated people to execute the in the administration and the manager of the Honda motor should hold to execute their responsibility to command the quality and to develop more engineering to execute in the fabrication procedure or in the distributing procedure

The hazard direction system prevent and addressed the different sort of the hazard in the company like fuel rate fluctuation, universe economic recession Natural catastrophe and the hazard manage section, should hold full knowledge how to do our administration more profitable in the planetary market or how to get the better of by this sort of hazard. The Honda motor has the possible to go genuinely planetary leader if they spread their units of two Wheeler states like Australia and some African state.

The information on the executing of the concern by manager.the clip to clip scrutinizing should be done by senior direction to hold control on the fabrication procedure or in the distribution procedure.

The Honda motor is making good concern in whole over the universe they get the good net income border at the clip universe economic recession nevertheless the other company like Toyota, GM motor and Ford motor got heavy loss in the sale.

Honda motor have to be more advanced developed their engineering in the fabrication and to be go oning with the research and development.

As Honda is planetary car administration on this degree the client outlook are will make on the top the Honda have to jam-packed the demand of the client in the planetary market. Honda has the possible to go the planetary leader in the car industry. In the some parts the Honda motor was non did good at the clip of universe economic recession because of the less potency of the employees to in the so many countries like information executing and analyze the hazard in the market that ‘s why one recommend to Honda motor should choose compose employee and the associate for write occupation to go planetary leader in this competitory environment.

And the Honda did non hold the possible to analysis hazard like economic recession, fuel rate fluctuation how to get the better of and do net income in the planetary market. After the whole analysis of the study of the Honda motor ‘s ( executive the top direction ) information executing was non executing good and the distribution system. one find the Honda should hold take attention of all these fact to go a advanced and the true car maker in the planetary competitory market.


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