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Honda Motors Company Ltd Case Solution & Answer

Honda Motors Company Ltd Case Solution

Summary Overview

About Honda Motor Company Ltd

Honda Motor is the world’s largest Japanese multinational company which was established in 1948 and founded by Mr. Soichiro. Honda is a major producer of automobiles, Engines, ATVs, Aircraft, power engines and motorcycles. In 1986, it dedicated the first largest Japanese manufacturer of luxury brand “Acura”. Its headquarters are in Minamoto, Tokyo and Japan. It is biggest Japanese exporter to the United States and other parts of the world. It is listed in stock exchange of Tokyo, New York as well as on other countries’ stock exchanges.

Vision Statement

“Serve people worldwide with the joy of expanding their life s potential – Lead the advancement of mobility and enable people everywhere in the world to improve their daily lives”

Mission Statement

“To seek technology that helps in realizing true peace and happiness on earth”

Values

  • Quality management.

Management of Honda

Honda’s management involves the activities of overseeing and coordinating, to accomplishits organizational goals efficiently and effectively.

Planning

It develops cooperative plans where they give the possible solution of the problem. To maintain the customer satisfaction; the company offers the highest quality with reasonable prices When the company develops any plan; it first starts with brainstorming sessions to set the objectives and to find out the ways to achieve those objectives.

Organizing

In this function, the company arranges a specialist team across the world,to assign the task of each member to accomplish the goal.

Leading

In the beginning Chirico Honda and Takeo Fujiwara developed a personal leadership but after that Takeo Fujiwara introduced “Team Leadership”.

Controlling

Most of the work in this company is done by Machines. But human factor is necessary to monitor the machines.

 Organizational Analysis and Industry Analysis

Organizational Structure

Honda motor company has a decentralized organizational structure. It is structured with as number of total directors, 3 independent directors, 4 non-executive directors and 2 executive directors. The President of Honda Motors Ltd is Hironobu Yoshimura and its Vice President is Maqsood-ur-Rehman.(Officials, 2020)

Please see Appendix A to see the list of all directors and other staff.

Market Potential

According to (NYSE: HMC); Honda shares are currently trading at approximately $26, generating its revenue through automotive segment and through the motorcycle segment  growth, i.e. 13.6% in 2019. In 2020, Honda’s revenue has declined by -4.92% as compared to its competitors. Also the net profit is recorded as 3.42% lower than its competitors.

Market Definition, Segmentation and Demand

Honda is applying the best principles of “Respect for the individual” to express the “The joy of Buying”, “The joy of Selling” and “The joy of Creating”.Further, Honda has a strong brand image because of its quality and uniqueness to satisfy the customers’ demands. (Hassan, 2018)

Segmentation of the Market

The four basic segment of the market are:

  • Geographic Segmentation

Honda has already opened its branches in countries like: Japan, Europe, Asia as well as many other regions. The existing sales unit and infrastructure of Honda provide the services of driving school, which is very suitable with respect to these countries in order have an  easy reach to city centres or commercial areas.

Demographic Segmentation

They are segmented into all categories: upper, middle and lower. At the age of 16 years; people are allowed to have auto-driving lessons,but in Asian countries, you can have driving lessonsat the age of 18. Honda provides driving lessons to every gender in order for them to learn driving skills much efficiently………………………

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