1.

Introduction :

1.1 Vision:

To be the market leader in the motorcycle Industry, emerging competitive center of

production and exports

1.2 Mission:

To be a dynamic profitable growth oriented company through market leadership, excellence in quality
and service optimizing value for the shareholders and maximizing exports.

To give attractive return to business associates and shareholders as per their expectations.
To be a responsible employer and reward employees according to their abilities and performance.
To be a good corporate citizen in order to fulfill its social responsibilities.
To create and foster a network of researchers, engineers, who will make unique contribution to the
development of motorcycle industry ensuring satisfaction of our valuable customers and protection of
the environment by producing emission friendly green products.

1.3 Slogan:

For Honda to remain Honda, and for everyone to realize their aspirations, we must believe in
"ThePower of Dreams"

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1.4 History:

Atlas Honda Limited is a joint venture between the Atlas Group and Honda Motor Co.
Japan. Atlas Honda is market leader in motorcycle industry. It is emerging as a global
competitive centre of production & exports. AHL can produce 600K motorcycles per annum.
Being a dynamic, profitable and growth oriented company. It is sharing market leadership,
maximizing exports & excellence in quality & service. AHL is producing 4 models with
fulfilling its ISO 9002 & ESH (ISO 14001) requirements. AHL is also committed to provide
green products /nonhazardous/environment friendly bikes to fulfill its corporate citizen
responsibilities.

Currently, there are 2 plants working day and night to meet the demand of motorbike in
Pakistan. These plants are located in Sheikhupura and Karachi. The head office is located at
Karachi. Sheikhupura plant manufactures all 4 models while Karachi plant only prepares 1
model. SKP Plant comprises of 500K plant (Frame & engine assy), HI TECH (Engine Plant),
Casting Plant and manufacturing Plant. Daily motorcycle production is 1325 units comprising 4
models.
Presently, Atlas Honda has to compete with 51 companies in the market. Despite of such
tough competition, Atlas Honda has 52 percent share in the total sales in Pakistan. This has only
been achieved by maintaining tough standards in quality. Further, motorbikes are also exported
in limited quantity to Bangladesh. With market share of worth more than 55 rupees, Atlas Honda
is one of the leading automobile manufacturers of Pakistan. The turn over here is less than 3
percent which is very less as compared to other industries who expect 10 percent turn over per
year.
The company has 250 dealers nationwide, who are responsible for the sales of
motorbikes. Further, there are 6400 service dealers throughout the country, who are providing
services of repairing to the customers. They are also responsible for the sale of spare parts. In this
way, directly or indirectly, Atlas Honda is creating job opportunities for almost 25,000 people.

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1.5 Annual Production Capacity

750,000 (being enhanced to 800,000)

1.6 Authorized Capital

Rs. 1 Billion

1.7 Paid up Capital

Rs. 625.52 Million

1.8 Exports

Bangladesh

Afghanistan

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2. Organizational Hierarchy:

2.1 AHL Board

2.2 Organizational Structure

The above chart shows that there is centralization in the organization. The main decisions
come from the Chairman of the company while Board of Directors approves his decisions and
implemented in the organization by respective committees. The Board of Directors is committed
to good corporate governance. The company is managed and supervised responsibly and through
proper internal controls and risk management policy. Its procedures are in place for efficient and
effective operations of the company, safeguarding of assets of the company. This is in
compliance with laws and regulations proper financial reporting in accordance with International
Financial Reporting Standards. As a part of group corporate it has committees at group level to
guide the management in various key areas of the companys operations ranging from Human
Resource, Information Technology, Environment Safety and Health.

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2.3 Management Committee:

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 GM-E & P

3. Products and Market Analysis GM-R & E

3.1 Products :
GM-Plants
Atlas Honda Limited is considered to be the pioneer of automobile industry of
manufacturing quality motorcycles andGM-Finance
creating superior value to the customers. AHL is
producing four types of motorcycles.
CEO GM-Marketing

CD-70
GM-Logistics
Honda CD 70 is the first choice in motorcycles. The New CD 70 gives a perfect blend of
Japanese technology along with charismatic design, in addition to its established superiority in
terms of durability and fuel economy. GM-QA

GM-HR
CD-100

Honda Motorcycles are defined by Quality, Performance, Speed, Economy Petrol and Re-
GM-R & E
sale Value. All these have managed to successfully bag your trust on the New Honda CD100. It is
a stunning result of advanced Japanese technology and right up there as an outstanding performer
representing all the qualities that make Honda motorcycles so special.

CG-125

Honda Motorcycles are defined by Quality, Performance, Speed, Economy Petrol and
Re-sale Value. All these have managed to successfully bag your trust on the New Honda CG125.
It is a stunning result of advanced Japanese technology and right up there as an outstanding
performer representing all the qualities that make Honda motorcycles so special.

CG-125 Deluxe

The CG 125 Deluxe is the unique combination of power & style, a new addition in the
company as 125 cc. The new power up 4 stroke engine gives same fuel economy as CG 125. An
ideal model for youth and high income segment. Honda CG 125 Deluxe has heavy duty front
absorbers and 130 mm brake drum with environment friendly non-asbestos brake shoes, Elegant
contoured seat for better riding posture.

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3.2 Product Market Share

Producing quality products back by a strong brand image, Honda Motorcycles have
captured more that 65% share of total market as graphed below.

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4. Organizational Culture

A system of shared meanings within the organization that determines in larger degree
how employees act is called organizational culture. AHL culture is a blend of Pakistan and
Japanese culture. This blend is so strong in nature that the employees proudly indentify their
selves with the organization as a whole. Its main characteristics are observed as follows.

4.1 Culture

Merit, Equality and Diversity

This is the salient feature of AHL that being an equal opportunity employer, it recruits on
merit regardless of sex, cast and religion. AHL firmly believes in workforce diversity and
their grooming with equality. The history reflects that the employees enter at a junior post
have risen to General Manager, Vice President and CEO.

Respect for every individual and recognition

The organization strongly believes in self respects of their members and feels no
ambiguity in recognizing their abilities and performances.

Conflict tolerance
AHL always welcome criticism and conflicted ideas and consider them as a tool for the
success of their organization

Performance Appraisal and Motivation

AHL have never been reluctant to recognize the performance of their members and
motivate them by awarding numerous prizes and through arranging visits to abroad.

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 Openness to Share Ideas
In this organization all the employees regardless of their position can share ideas with the
management at each level. This is a true blend of Japanese culture.

Easy access to higher management

There is no obstacle for the employees to submit their problems to the higher
management. Management strongly believes in solving their problems efficiently.

Employees Service Security and Sustainability

History of AHL shows that a significant majority of employees are working in the
organization since last two or three decades which reflects job security and sustainability
from the employer.

Employees Health & Welfare.

The organization firmly believes that performance of their employees is associated with
their health and welfare thats why AHL has never been hesitant to provide adequate
funds in this regard.

Training and Development

AHL spends a significant amount of their resources to attract talented individuals and
offering them attractive trainee programs designed to provide fast career growth. The
organization arranges frequents training visits of their employees to abroad such as Japan,
Thailand etc.

Same uniform, cafeteria and meal everyone

The successful organizations always believe in equality of their employees. Same is the
case with AHL where the same uniform, same cafeteria and meal dor everyone regardless
of their position in the organization.

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4.2 AHL Core Values

AHL core values have remained the same throughout the years and are as follows:

Strongly believe in that Customer is King

Respect for individual
Winning remain ahead of competition through quality
Continuous innovative & Value added services
Best return on investment
Hard-work & Continuous self-improvement & development
Un ambiguous excellence in all aspects of the Company
Corporate social responsibility

4.3 Quality Policy

AHL has the following quality policy being pursued by every member

Commitment to provide high quality motorcycles & parts

Right work in first attempt and on time

Maintain and continuously improve quality

Training of manpower and acquisition of latest technology

Safe, clean and healthy environment

Market leadership and prosperity for all

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5. AHL Management Policy and Decision Making

As told earlier that the culture of AHL is a blend of Pakistan and Japanese culture and
being backed by a strong brand image holder, the organization derives its procedures, rules and
policies accordingly.

5.1 Management Policy:

AHL management policy has the following basic principles

Proceed always with ambition and youthfulness.

Respect sound theory, develop fresh ideas and make the most effective use of time.
Enjoy your work and encourage open communication.
Strive constantly for a harmonious flow of work.
Be ever mindful of the value of research and endeavor.

5.2 Decision Making

Since there is centralization in the organization and all the strategic decisions come from
Chairman and AHL Board approves these decisions. However, the tactical and operational
decisions are made by management committee and respective departments. The hierarchy of
decisions is reflected below.

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5.2.2 Problems and Decision
Structured Problems and Decisions
All the problems related to procurement, production and administration are solved
through programmed decisions following the procedures and the rules approved by AHL Board
from time to time.

Ill Structured Problems and Decisions

As regards ill structured problems, after identification, the problems are analyzed
rationally through group discussions and the solutions are extracted without any ambiguity. For
example, after the inclusion of local manufacturer in the industry with low price products during
the financial year 2004-05 and onward, sales of AHL products declined to a significant extant. It
was a big challenge for the management. However at the end through study of the problem
analytically, and cutting down the price to a significant extent with no compromise on quality,
the management succeeded to restore the desired market position in a shorter period of time.

5.2.2 Decision Making Styles

Following the culture of AHL two types of decision making have been observed.
Analytical Style
This style is observed while taking decisions of strategic tactical nature.

Behavioral Style
This style is being practiced in operational activities.

5.2.3 Management By Objective

AHL vigorously uses the concept of management by objective. Every year all the
management staff prepares their next years objectives and action plans in align with company
objectives. These objectives are discussed and approved by immediate managers and reviewed
by the senior management on half yearly basis. Annual performance appraisal also based on
achievements of these objectives and reward recognition follows accordingly.

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6. Major Achievements
The process of industrialization started in Pakistan in mid 1950s. Atlas group of
companies took part in this revolution by establishing their investment activities. This group has
not only introduced modern technologies in Pakistan but also promoted corporate governance
thus providing a sense of participation at every level from gross to the top.

Going further this group created a company named Atlas Honda Limited by the merger of
Panjdarya Limited and Atlas Autos limited. Since after their establishment, Atlas Honda Limited
has achieved certain milestones in the history of automobile industry. AHL is now playing a
pioneering role in creating conditions for easy and confident use of motorcycles all over the
country.

Here are some of the major landmarks achieved by AHL reflected in chronological order.

Winning a Best Corporate Report award by joint committee of ICAP & ICMAP 3 times

2010 Launched New Model of CG 125 Deluxe - Euro II

2010 SAFA Award for Best Corporate governance disclosures in annual report 2008

2009 HRM Excellence Award 2009

2009 ISO 14001-2004 Environment Certificate acquisition

2007 Successfully implemented SAP ERP to its business process, all over Pakistan

2006 Annual Production reached to 360,000

2004 Top 25 company award by KSE

2002 Establishment of Research and Development Wing

1995 Company makes its first exports to Bangladesh, Nepal, Sri Lanka, Middle East and
Central Asia.
1988 Merger of Panjdarya Limited into Atlas Autos Limited

1988 Joint Venture agreement signed with Honda Motor Company Limited

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7. SWOT Analysis:

SWOT analysis is a strategic planning tool used to evaluate strengths, weaknesses,

opportunities and threats involved in a project or in a business venture. AHL SWOT analysis is
as follows.

7.1 Strengths:

Largest manufacturing plant in Pakistan (Global Standard factory)

World-renowned HONDA Brand

Market leadership with precision quality

Largest product lineup with four popular brands CD70, CD100, CG125 and CG125 DLX
to meet the future challenges

Wide spread dealers network

Professional management and high skilled staff

7.2 Weaknesses:

Low manufacturing ability of vendors to supply parts for 500K motor cycles annually

Difficult to maintain high quality production at high market demand

Complexity in coordination and communication among facilities, vendors and two

geographical locations i.e. Karachi and Sheikhupura plants

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 Slow response or long lead-time from the vendors

High warranty claims pressure due to premium price product

7.3 Opportunities:

Poor infrastructure of mass-transit. i.e., limited substitution of 2 wheelers

Rapidly changing Market dynamics

Being a largest manufacturer can enter India, China and other countries as per WTO
rules and regulations

Purchasing/Buying behavior is changing (more quality conscious)

More investors in the vendor business to invest in latest technological specialized

manufacturing processes

More inflows from the companies, growth in installment

7.4 Threats:

Low barrier of entry of major players after WTO implementation

Unpredictable frequent changes of government or its policies

Bargaining power of suppliers (Vendors)

Bargaining power of buyers (dealers/customers)

Price war

Threats of copy products

Substitute services

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 Indian & Chinese entry in Pakistan Market

8. Conclusion:

Since its establishment, Atlas Honda Limited has been playing a leading role in
automobile industry. This group is playing a vital role in industrial development of Pakistan. As a
responsible citizen, the company is also extending cooperation to government by being among
the highest tax payers and also generating employment for educated and skilful people of society.
AHL is committed to ensure production of quality products through a process of total quality
management. The blend of Pakistan and Japanese culture has brought this organization to the
existing position in market and consumers mind.

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