Analysis of Honda company Analysis of Honda company Geo-Political Environment Re

Question

Analysis of Honda company Analysis of Honda company Geo-Political Environment Research Paper: Each student will analyze a corporation (students choose their own corporation) External and Internal environment. Once the analysis is complete students should provide evidence-based suggestions leadership of these corporations take For the purpose of assurance of learning, one score will be given, based on the student's ability to identify relevant Macro and Micro level business issues and suggestions to address them (MBA-3M).

Explanation / Answer

Answer : The organization chosen for analysis is Honda.Honda deals with manufacturing, distribution and develpment of automobiles, motor cycles, power products.

External environmental analysis is as follows:

Political:

Government proposal for restricting the volume of cars produced in European countries

High pre tax prices in Europe as compared globally

Economic:

Rising fuel price pinching customer's pockets: demand for more economic and fuel efficient cars

Increase in disposible income of consumers

Dollar-Yen currency rate fluctuations

Social:

Consumer preference for highly esteemed ultra luxury brands like mercedes, Benz ,BMW as a symbol for social status

Sentiments of people to go for local and indegeneous brands in Europe

Technology:

Demand for hi tech cars with all modern accessories including inbuilt navigation system , self driving capsbilities etc.

Drive for product innovation to support development of eco friendly and fuel efficient vehicles

Legal

Stringent labour laws : minimum wage, safe workplace,work timings etc

Protectionist policies

Environmental:

Stringent emmission norms to reduce carbon foot print and increase fuel efficiency

Impact of weather on car engines

The internal factors are:

Value system,mission and philosophy: They are committed to provide high quality products to the customers and invest in developing products whcih can closely meet the current market demands.

Organization structure and operational strategy:Honda maintains a lean organization structure with minimal hierarchy. Maintains high leve of transparency. Divided into regional administrative groups for operations but local management and sales independence is persisted.everyone operates under strict guidelines and rules.

Suppliers: Honda has good relationships with its suppliers and generally oes for long term contracts

Customers: Honda is extremely sensitive to consumer trends and caters to the majority segments of customers . It provides products for all segments and has also invested in hybrid cars . It has invested in R&D to provide highly fuel efficient and eco friendly cars to its customers.

Culture: Hoda has a strong ethical culture and strives to provide a work environment conducive for growth of its employees and the employees also strive to achieve operational efficiency by following the best practices. Honda has a multicultural workforce which helps them to understand the demands from various geographies better.Honda provides and equal opportunity and egalatarian work environment.Joy of buying, selling and producing is promoted. Upholds a culture of inovation and continuous learning.

Honda leadership has adopted strategies steps to take Honda to the next level:

-Expand global dealership network

-Increase brand visibility through power products

-Localize/customize based on customer preferences and operating geography. Stay close to customers-build production centers closer to the market it serves.

-Adoption of high production quality standards

-Factory flexibility by co-locating in house engineering at production facility

-Online marketing channel

-Focus on hybrid vehicles and eco friendly cars with high fuel efficiency: Huge investment in R&D

- Environment training provided to employees

-Diversity maintained at work place

-High tech manufacturing units which are also envirinment friendly

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