GROUP#1

PREPARED BY:- AMMAR YASIR, QURAT-UL-AIN, SAAD TARIQ, ROBBINSON JAVED, KASHIF SOHAIL

SUBMITTED TO:- SIR HASHIM BUTT

BBA 7TH
 Acknowledgment
In the Name of Allah, the Most Beneficent and Merciful

We are highly grateful to our course instructor Mr Hashim Butt who

taught us with great affection and whose supervision enabled us to

complete our Project. We hope this Project will fulfill the requirements

of our teacher.
Contents
No table of contents entries found.
EXECUTIVE SUMMARY
 BUSINESS STRUCTURE:-

Company Name Honda Motors.

Founded 1948.

Founder Soichiro Honda, Takeo Fujishawa.

CEO Takahiro Hachigo.

Headquarters Tokyo, Japan.

Revenue (2019) ¥15,888.6 Billion.

Net Income ¥610.3 Billion.

Number of Employees 219,722

Largest Market United States.

HISTORY:-

Honda Motor Co. Ltd. Together its subsidiaries, engages in the development,
manufacture, and distribution of motorcycles, automobiles and power products primarily
in North America, Europe and Asia. Its motorcycle line consists of business and
commuter models, as well as sports models, including trial and motor-cross racing all-
terrain vehicles; personal watercrafts and multi utility vehicles. The company also
produces various automobile products including passenger cars, minivans. Multi-wagons,
sports utility vehicles, and mini cars and power products composing tillers, portable
generators, general purpose engines, grass cutters, outboard marine engines, water
 pumps, snow thrower s, power carriers,
power sprayers, lawn mowers and
lawn tractors, home use cogeneration
units, thin film solar cells home use
and public and industrial uses. In
addition, it sells spare parts and
provides after sales services are
through retail dealers, as well as
involves in retail lending, leasing to
customers and other financial services,
such as wholesale financing to dealers.
The company was founded in 1946 and
is based in Tokyo, japan.

INTRODUCTION:-
has been the world’s largest motorcycle manufacturer since 1959, as
well as the world’s largest manufacturer of internal combustion engines
measured by volume, producing more than 14 million internal combustion
engines each year. Honda Motor Co. Ltd today tends to stand among the leading
automakers of the world and hence is the leader in the context of motorcycle
manufacturer in the whole world. Honda Motor Co. Ltd over the years has seen
massive growth and has stretched their area of operations. Today the
company tends to develop, manufacture and also market different range of products
form motorcycles to power products. Honda MoCo.Ltd have been able to widen its
operation beyond its home country Japan, today the company tends to operate and
functions in various parts of the world. However, Honda Motor Co. Ltd primarily
operates in North America, Asia, and Europe. It has it's headquarte r situated in the city
of Tokyo, whereas it tends to employ 179,060 people. As indicated above the company
has seen massive growth and the year 2011 was no different. Honda Motor Co. Ltd
recorded the revenues of JPY8, 936,867 million which tends to be interpreted as
$104,561.3 Million during the fiscal year which
ended in March 2011. Honda Motor Co. Ltd also
saw an increase of 4.2 percent as compared to the
year 2010.However, the operating profit of the
Honda Motor Co. Ltd tends to stand at JPY569,
775 Million which tends to interpret itself as
$6,666.4 Million during the fiscal year of
2011.Which is 56.6 percent more as compared to
the year 2010.Whereas, the net profit of the Honda
Motor Co. Ltd in the fiscal year of 2011 stood at
JPY534, 088 Million, this is translated as $6,248.8
Million.

The net profit of the Honda Motor Co. Ltd

strengthened by 99 percent as compared to year
2010. However, in some of the markets Honda
Motor Co. Ltd market share saw a decline such is
the case of United States where it fell from 10.6
percent to 9.Similarly in some markets the market
share of the company grew such is the case of
brazil where the market share in terms of the
motorcycles grew to 8O percent (world.honda.com).
Brand:-
What is Honda?

Honda is an entity that realizes the dreams of individuals and spreads joy to
people. Honda’s philosophy, unique corporate culture, pursuit of c hallenges that
fulfill individuals’ dreams and variety of products and activities born of
 challenges will remain the foundation of the Honda brand. We will continue
building on our history of realizing people’s dreams.
Honda’s driving force:-
The expectations and appreciation of people around the world for our dreams.
People see Honda as pursuing its dreams and always remaining a step ahead of
the world. This image and the people’s appreciation of our outlook will continue
to be the driving force of the Honda brand.

HISTORY:-
Soichiro Honda Biography: A Great History of Japanese Car Manufacturer Soichiro Honda (本
田 宗一郎, November 17, 1906 – August 5, 1991) is Japanese entrepreneur and inventor,
engaged in the development and industrial production of mopeds, motorcycles and cars. He is the
founder of the Honda Motor Co., Inc. Corporation and automobile companies in the U.S. and
Japan. Soichiro Honda is the creator of the popular models of motorcycles and cars: Super Cub,
Civic, Accord, Prelude and etc. He is the owner of multibillion-dollar status. Back in 1956, the
company presented to the staff job descriptions with “The Three Joys” they had to learn.

The first of them is the joy of producing. It is a joy known only to the engineer. It is an absolute
happiness of the engineers when the good is of great quality is welcomed by society. The second
joy is when a seller is happy because a buyer has got a Honda product. The third joy belongs to
the buyer. The buyer is so happy that he or she bought the product of Honda.

Honda Company is a unique example of a corporation that

successfully works on the markets on five continents; it is a member
of prestigious sporting events, it is the Company that is investing in
the development of high-tech projects and is working to radically
improve the environmental performance of manufactured products. The potential of Honda
engineers is fully consistent to the professional level of sales managers around the world.

Such a tandem has been ensuring the success of the company for many years and gives
confidence to be as successful in the future.

In 1922, after finishing eight years of schooling,

Soichiro noticed a job ad in a newspaper: an assistant
wanted to Art Shokai auto repair shop in Tokyo.

Curtiss:-
 After that he went straight to the capital of Japan. He was accepted,
but as the youngest employee, there was left only cleaning and
preparing meals job for him. Despite this the owner of the auto
repair shop allowed Soichiro to help in the second workshop, where
he was designing a racing car every night. During the earthquake in
1923, Soichiro drove out three cars from a burning garage, but he
had never sat behind the wheel. Honda was assigned as assistance at
Art Shokai; he helped the workshop’s proprietors, the Sakakibara
brothers, in designing a Curtiss race car. Soichiro was a riding car every night. During the
earthquake in 1923, Soichiro drove out three cars from a burning garage, but he had never sat
behind the wheel. Honda was assigned as assistance at Art Shokai; he helped the workshop’s
proprietors, the Sakakibara brothers, in designing a Curtiss race car. Soichiro was a riding
mechanic at races and their team took the first place at the fifth Japan Motor Car Championship
on November 23, 1924.

Honda A:

Soichiro literally lived in the workshop, developing piston rings. But it didn’t give any fruits.
Honda even handed over the jewels of his wife to the pawn shop. Only after that he admitted his
incompetence in the foundry business and changed the attitude toward education. Up to that time
Honda had considered science useless. “If the theory promoted creativity, then all teachers would
have been the inventors.” – Honda was saying. Now he has decided to acquire the necessary
knowledge in the technological school of Hamamatsu. And all his spare time Honda devoted to
the racing car design. Having developed his own method of engine cooling, he resolved the main
problem of the all sport cars of that time. His engine did not explode from overheating during a
race. Soichiro decided to take part in major competitions to experience his masterpiece.

Being at the hospital, Soichiro received bad news. Out of 30,000 piston rings, which he produced
in the recent years and sent for examination to the Toyota Company, only 50 were accepted for
consideration and only three pieces passed quality control tests. In addition, Honda was dropped
out of the college because he refused to take the examination: Soichiro needed knowledge, but
not a diploma.

During the Sino-Japanese War and then World War II Honda’s company was providing ‘Toyota’
with the piston rings by 40%, and also supplied parts to shipbuilding and aircraft manufacturing
companies. But with the defeat of Japan in World War II “Tokay Seiko” came to an end. In
1945, Hamamatsu was undergone a massive bombardment by American aircraft. Honda assumed
that the country is entering into a period of poverty and ruin and decided not to restore the
factory, but sold the business to ‘Toyota’ for 450,000
thousand yen. 10,000 ten thousand yen the
businessman spent on the purchase of alcohol tank.
By installing it in his yard, he said publicly that he
was going to rest a year. Indeed, Soichiro spent a year
in drunken revels, treating friends with homemade
whiskey. In 1946 Honda opened his own ‘factory’
with a grandiloquent name – ‘Honda Technology
Research Institute’ and became engaged in artisanal
production of mopeds. He fitted a generator engine of
a tiny army radio to a bicycle, used rubber hot water
bottle as a fuel tank and filled it with fir oil. There was plenty of fir oil in the countryside of
Japan in those times. Honda sold 1,500 one thousand five hundred of these mopeds,

Super:-
In the conquest of the automotive market Honda made a bet on his favorite race cars. The first
one was debuted in 1962. While Japanese officials tried to convince him in the futility of the
project, arguing that the country did not need another car manufacturer, but energetic
entrepreneur did not listen their arguments. In 1970 Soichiro Honda was the winner in the highly
competitive automotive industry.

Honda had worked for 65 years in the company and personally tested every new car. He never
admitted his relatives

Honda Civic 1975:-

To the leadership: “No matter how outstanding could be the company’s founder; there is no
guarantee that his son would be capable of the same. The company’s management should be
given to a person who has the distinctive qualities of a leader.”

In 1973, Honda Motor Co., Inc. celebrated its 25th anniversary. During the board of directors
meeting, dedicated to this event, Soichiro Honda declared that he was going to retire. The new
president, as expected, was chosen from among the employees. The founding father was fond of
saying that the company thrives when its former chief appears there as seldom as possible. So his
departure from the office was final.

Soichiro Honda once said: “Many people dream of success. I believe that success can be
achieved only through repeated failure and self-analysis. Success is only one percent of your
work, and the rest – bold overcoming of obstacles. If you are not afraid of them, success will
come to you itself”. Today’s prosperity of Honda Motor Co., Inc. proves the truth of its founder.

HEAD OFFICE:-
2 Chome-1-1

Minamiaoyama, Minato City, Tokyo, 107-8556, Japan

Honda is headquartered in Minato, Tokyo, Japan. Their shares trade on the Tokyo Stock
Exchange and the New York Stock Exchange, as well as exchanges in Osaka, Nagoya, Sapporo,
Kyoto, Fukuoka, London, Paris and Switzerland.
The company has assembly plants around the globe. These plants are located in China, the
United States, Pakistan, Canada, England, Japan, Belgium, Brazil, México, New Zealand,
Malaysia, Indonesia, India, Philippines, Thailand, Vietnam, Turkey, Taiwan, Peru and
Argentina. As of July 2010, 89 percent of Honda and Acura vehicles sold in the United States
were built in North American plants, up from 82.2 percent a year earlier. This shields profits
from the yen's advance to a 15-year high against the dollar.

Products and services:-

Honda is one of the best companies in the world. In Pakistan Honda is contributing a lot towards
welfare of people. Honda has various products and special services for its customers.

Honda is manufacturing following products:-

 Automobiles
Accord
Civic
City and etc.
 Motorcycles
 Power equipment’s
 Water pumps
 Power engines
Here we are discussing only automobiles that are Honda atlas. The
company has provided many comforts and specifications in its cars.

Honda is offering many different models of Honda cars.

  Automobiles:-
Accord
Accord is a graceful car with a comfortable driving with various and unique
specifications. A bold exterior presence with a luxury air, yet a sporty youthful feeling.
An expansive upper-class cabin with comfortable travel space for five adults and
panoramic visibility.it has the best driving force and powerful expansion. Accord
represents a distinct status upgrade for the sedan. A true prestige vehicle, it is designed
for a sophisticated and dynamic drive. The Accord doesn't yell, it speaks with quiet
authority.
Civic:
In Pakistan the bestselling car is Honda civic. It is best among mediocre and almost 65 %
of the people prefer this car over others. Its driving is too soft with best expansion and
less consumption of fuel due to effective engine and central control system. The air flows
smoothly over the front under spoiler and angled windshield to the sharply cutoff rear; it
passed the sides’ undisturbed thanks to reduced wheel arch clearance: and it streams
beneath the chassis with minimal turbulence from the smoother and flattened under
panels.

City:
It is the most sensitive car among other models of Honda with a stylish and attractive
body. It is the first euro 3 complaint car in Pakistan. Hondas affirmative answer is the
revolutionary new city.
The other products of Honda include:
 Motorcycles:
Honda motorcycles are the no#1 choice among people of Pakistan. 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 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.
 Honda power equipment’s:
Honda power equipment’s offers a complete line of generators for commercial and
consumer applications. Compact, fuel-efficient Honda generator models provide smooth,
clean power for recreation, construction, rental, emergency and home use. All Honda
Generators meet or exceed EPA (Environmental Protection Agency) emission standards.
 Water pumps:
Honda water pumps are known for their durable construction, quality engines and easy
portability. These features apply to all categories of pumps that are offered by Honda.
  Power engines:
Honda is the world’s largest manufacturer of engines and has earned its reputation for
unsurpassed quality, performance and reliability.

Honda competitors:-
Honda is one of the best companies of automobiles among various challenging companies. In
Pakistan the competitors of Honda are:

Toyota
Toyota stresses on increasing the sales volume and brand name image.
Suzuki and etc
Suzuki stresses on price.
Honda always stresses on dreams so there is a war between sales, prices and dreams.
Nissan Limited
MISSION & VISSION:-

VISSION:-
‘Market leader in the motorcycle industry,
emerging as a global competitive centre of
production and exports”

Focusing on “satisfaction” (customers’, associates’ and

shareholders’) with challenging spirit and flexibility, we are dedicated to supplying latest generation cars
with advanced technology, greater fuel efficiency and competitive prices, along with friendly and
efficient after sales back up, maintaining “quality” as core of all activities.

MISSION:-

“A dynamic growth oriented company through excellence in quality, dedication to provide

greater fuel efficiency at competitive prices, and service ensuring attractive returns to
equity holders, rewarding associates according to their ability and performance, fostering
a network of engineers and researchers ensuing unique contribution to the development of
the industry, customer safety, satisfaction and protection of the environment by
producing emission friendly green products as a good corporate citizen fulfilling its social
responsibilities in all respects ‘’

We see the pursuit of impossible dreams as an empowering force, capable of producing

revolutionary ideas. Dreams inspire us to create innovative products that enhance human
mobility and benefit society. Honda encourages all of its associates to pursue their dreams. And
it’s our mission to share these dreams with others and to make them a reality.

Objectives:-
The main objective of HONDA is “To be on the top”. One of their aims is “to be No.1 in
customer satisfaction in all three S, Sales, Service, and Spare parts”.

Goals and strategies

Official goals

Customers:- Our customers are the reason and the source of our business. It is our joint
aim with our dealers to ensure that our customers enjoy the highest level of satisfaction
from use of Honda Motorcycles.
Quality

To ensure that our products and services meet the set standards of excellence.

Local Manufacturing

To be the industry leader in indigenization of motorcycles parts.

Technology

To develop and maintain distinct business advantages through continuous induction of improved
hard and soft technologies.

Shareholders

To ensure health and viability of business and thus safeguarding shareholders interest by
maximizing profit. Payments of regular satisfactory dividends and adding value to the shares.

Employees

To enhance and continuously up-date each member’s capabilities and education and to provide
an environment which encourages practical expression of the individuals potential in goal
directed team efforts and compensate them attractively according to their abilities and
performance.

Corporate Citizens
To comply with all government laws and regulation, to maintain high standard of ethics
in all operations and to act as a responsible members of the community.
 Operative goals:
 To maintain the repute of Honda in the market.
 To introduce latest safety tools in car industry.
 To introduce new design including exterior and interior of automobiles.
 To create fully automatic function replacing manual function.
 To Increase the profit of current year as compared to last year.
 To protect environment by introducing smokeless engines.

Management Policies:-

Proceed always with ambition and youthfulness.

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

International Management:-
Hondas Trade policy in global business Market is excelling due to its highly effective team
work world wide. Honda’s Board of Directors and CEOs frequently interact with each

OWNERSHIP:-
Honda Motor Co. is a publicly owned company traded on the New York Stock Exchange.
Organizational hirarchey:-
Board of Directors:-

Current Board Membership

Takahiro Hachigo, 59President, CEO

Honda Motor Co., Ltd.
& Representative Director

Seiji Kuraishi, 60COO,

Representative Director, VP & Honda Motor Co., Ltd.
Head-Strategy

Kohei Takeuchi, 58Senior MD,

Honda Motor Co., Ltd.
Head-Finance & Administration

Yoshiyuki Matsumoto, 60Senior

Honda Motor Co., Ltd.
Managing Director, Head-R&D

Yoshi Yamane, 60Senior Managing

Honda Motor Co., Ltd.
Director & GM-Production

Masafumi Suzuki, 54Director Honda Motor Co., Ltd.

Masahiro Yoshida, 61Director Honda Motor Co., Ltd.

Toshiaki Mikoshiba, 61Senior MD,

Honda Motor Co., Ltd
GM-North America & Head-Sales
 MARKETING OBJECTIVE OF HONDA:-
Print and television advertising
Honda has brought several attractive product models to the market. It has also used a smart
marketing strategy with focus upon creating a reliable image and trust among the customers. It
uses both traditional and digital methods of promotion to promote its brand and products. The
‘Power of Dreams’ slogan features across Honda’s advertising and promotion campaigns and
events. The brand has set a vision 2030 for itself which is going to guide its business strategy in
the near term. Advertising has always been a key component of Honda’s marketing and
promotional strategy. The brand has always spent heavily on promoting its car and bike models
in local markets. Whether it is the Honda City, Civic or Honda CBR bikes, they are always
promoted heavily in newspapers and magazine advertisements. Auto magazines, auto blogs and
other websites dedicated to automobile industry also feature articles on Honda and its products
regularly. Being a leading vehicle brand, Honda finds mention in news and media regularly.
Television advertisements are also a major method of promotion for the Honda products. The ads
of its beautiful family cars are promoted through creative television ads. For example, the Honda
Fit Sport advertisement highlighting interior space of the model. The ad shows everything you
need to keep with you on a picnic can be easily packed into the Honda Fit Sport, promoting it as
a family car suitable for leisure moments.

PROMOTION STRATEGY:-
Apart from television and print ads, digital advertisements have also become an important part of
Honda’s advertising and promotion strategy. Digital advertising has become important for every
automotive brand because avery large number of customers are found online most of the time.
Not just in terms of marketing, but production, supply chain as well as distribution too, these
automotive brands are investing heavily in digital technology. However, Honda’s marketing
strategy is not limited to just promotions and advertising but the brand also promotes itself
through sponsorship of key sports events and social initiatives. It sponsors a wide range of
initiatives in Ireland and across the world to support communities and charities as well as
sporting events and personalities. Apart from its sponsorship of ‘Wings for Life world Run in
Ireland’, the brand has also partnered with several sports and film personalities for promoting of
its brand and products. It partnered international model and presenter Alison Caravan who is
known for her work in fashion, film and television. Caravan is also known for her work in the
area of parenting and children. Honda also partnered with Munster Rugby star J J Hanrahan and
GAA star Larkin. The company also sponsored women’s procycling team. It has also run several
photo contests for the fans of Honda to show there appreciation of the brand. Apart from
attracting customers, such initiatives work well to retain the existing customers.
MARKETING MIX STRATEGY OF HONDA:-
Marketing strategies should be devised for specific purpose, which requires careful planning.
The launching of the eco-driving school is mainly for the promotion of the green cars and the
future developments of Honda. The target market segment consisting of the people who require
driving lessons has been selected as this segment will be more eager to buy a car.

It is a psychological behavior that people will chose things that they have been using and that
they already have knowledge about the product and its efficiencies. The first car that a person
drives will be the best car for him or her, specially, if the person has driven a relatively recent
car.

Product (Service):-

The service is a new concept. It is valued by the strong brand recognition of Honda. It promotes
the philosophy of a service with the “highest quality at a reasonable price”. In addition, it is an
eco-friendly initiative towards the environment which many people would like to contribute. On
completion of the driving program, customers are rewarded with a certificate in eco-driving and
appreciation of green engines.

Price:-

The pricing strategy is very tactical. The main objective of providing this service is to promote
the green vehicles that have been developed by Honda. Instead of spending money in big
advertising processes like preparing exclusive graphic designs, bill board, organizing car forums
etc, part of the money would be use to finance the marginal costs of the driving school. Expenses
for the driving school will be minimal as the same building infrastructure would be used. Recent
cars developed for showroom and test drives would be used. The registration taxes or
maintenance costs can be considered marginal as compared to the vehicle used for test drive.
Since Honda has its own financial and insurance business, the cost of insurance would be part of
the casual business with no additional cost. The driving instructors would be already trained
technical staffs of Honda. With some basic training in customer relation, these assets would be
used. An additional braking system should be installed to the school driving cars for safety
purposes and this can be done by Honda itself. However, for penetrating the market the price
would be lowered by 25% of the average costs. This is possible by considering all the existing
resources of Honda. Then the price may be varied for people who want to learn driving in some
luxury cars or higher grades vehicles, but will maintain the price less than the average market
price.
 Place:-

The place for picking up the customers would be at the business showrooms. This will enable
customers to visit the new releases and be inspired by “the way of doing things” at Honda. The
driving lessons would be conducted on the public roads and major parking areas as used by the
individual driving schools. This requires no additional costs except for the road registration
taxes.

Promotion:-

Promotion for the eco-driving school would be carried out through free internet networking
facilities like facebook.com. This would reach the selected target market of age group 18-45 as
most of the students and employees are connected through this global network.

Advertisement would also be conducted on radio and through automobile magazines. Since the
service may not cater for a big intake of customers at a time. Quiz competitions could be carried
out on Honda Green Technology to select the customers for batch intakes. This will trigger the
interest of the public towards Honda green technologies.

People:-

Since Honda has been long in the sales business. It has already trained staffs for customer care
and public relations. Some training may be required for the driving instructors, and these could
be carried out in-house itself.

Process:-

Honda already has established processes in quality management system for handling customer
reservations, preparation of quotations, tracking vehicle deliveries, taxation, pay rolls and
payment system. All these existing IT facilities could be used. Honda could also create a virtual
business unit for scheduling and payment of the driving lessons through the internet.

Physical evidence

On completion of the driving program, customers would be rewarded with a certificate in eco-
driving and appreciation of green engines. This is something tangible that to add value to the
type of training received at Honda.

SEGMENTATION OF HONDA :-
It is very important to understand the market place and the customer needs for which a new
service is to be offered.
 Geographic:-

Since Honda has already been set up in countries like Japan, North America, Europe, Asia and
other regions, the driving school service may be introduced in these countries because of the
existing sales units and infrastructure. A driving school will be best located in places which are
easily reachable like commercial areas.

Demographic:-

The age to pass a driving license will depend on the countries legal policies. Normally, people
are allowed to start the auto-driving lessons at 16 years old. But for most of the Asian countries it
is at 18 years old. The driving school will accept both male and female customers as both form
part of the working class and have the same need to learn driving.

Psychographic:-

There is a general belief that people who want to learn driving will be in need of a car in the near
future. Nowadays, most people that have recently joined an employment aspire at buying a car it
has become way of living. However, people have become more selective in terms of quality of
services. The driving school should target at offering quality services.

Behavioural:-

People are attracted by the latest technology. Knowing that a driving school is offering driving
lessons in the most recent released car, it would certainly attract people.

Operational Strategy:-
Honda worldwide operation is divided into 6 administrative regions. The operation of the
organizational units is based on the fundamental corporate philosophy of “Respect for the
Individual”. Honda pushes the people at local management and sales operation by placing greater
trust in them and by involving them into the forward looking plan for each region. Honda has
also integrated the enhancement of social reputation in its marketing strategy.

HONDA MARKETING STRATEGY:-

Honda is a leading manufacturer of automobiles and motorcycles. It is a global brand that has
brought several attractive car and bike models to the market. In the recent years, its sales have
grown fast. North America is its leading market accounting for a very large part of Honda’s
revenues in the automobile segment. Another important market is Japan; the domestic market of
Honda. There are several major competitors of Honda in the global market including
Volkswagen, Toyota and Ford. These brands have a large product portfolio and invest
aggressively in research and innovation. With economic growth in the Asian region, demand for
vehicles has also grown. Honda’s motorcycle sales are high in the Asian region. Yamaha is a
major competitor of Honda in the motorcycle segment. In the 21st century, every brand is eager
for faster growth. Each one is spending more on marketing as well as research and development
to acquire a larger market share and attract new customers. Auto firms spend millions on
advertising and promotions every year.

Honda Market:-
Honda Motors Total Revenue has grown by 10.4% between 2017 and 2019, and
is expected to grow by 2.9% in 2020:
Automotive Revenue has increased continuously over the years as sales volume
has shown good growth. It increased from $93.4 billion in FY 2017 to $99.7
billion in FY 2019. Trefis estimates FY 2020 revenue to be around $102.8 billion.
Motorcycle Revenue has increased continuously over the years as sales volume
has shown good growth. It increased from $15.9 billion in FY 2017 to $18.9
billion in FY 2019. Trefis estimates FY 2020 revenue to be around $20.1 billion.
Life Creation business Revenue has increased continuously over the years as
pricing has shown good growth. It increased from $2.9 billion in FY 2017 to $3.2
billion in FY 2019. Trefis estimates FY 2020 revenue to be around $3.3 billion.
Financial Services revenue has grown as the interest rate went up. It increased
from $17.4 billion in FY 2017 to $21.3 billion in FY 2019. Trefis estimates FY
2020 revenue to be around $21.1 billion.
International Leads Market:-
Globally, Japan's Honda Group sold about 5.3 million automobiles in its 2019
fiscal year, which is 124,000 more than the previous year. Additionally, the group
sold nearly 20.3 million motorcycles and 6.3 million power products that year.
Honda’s car sales
Honda, one of the largest conglomerates in the world, produced around 15.9
trillion Japanese yen in revenue in the fiscal year 2019. Much of its revenue was
generated from automobile sales, as Honda’s worldwide car sales surpassed 5.3
million units sold. Summarizing the year in the financial report of 2019,
Honda credited the positive year to the strong sales of their N-BOX model. Honda
Motor Co. (NYSE: HMC), whose stock currently trades at around $26, generates
its revenue primarily from its Automotive segment, which is projected to account
for 69.8% of total revenues in 2019, While the Motorcycle segment is expected to
contribute 13.6% to the top line. In this note we discuss the revenue segments of
Honda, their historical performance, and expected Total Revenue for 2020
Organizational Structure
Mechanistic and organic organizations are two organizational decision designs. Is Honda
mechanistic or organic?

Its decision making style is mechanistic.

 Structural dimensions
Formalization
Centralization
Specialization
Employee empowerment
Narrow span of control
 Formalization
Honda Company is formalized but in some cases its level of formalization is
normal. There are clear-cut rules for the employees, detailed description and
information is available and manuals are also given to employees in which rules
and regulations are clearly defined. Employees have no freedom to make
decisions. But employees can give opinions and then up to the management.
 Centralization
Honda Company is a little bit low in centralization. Decisions are made by upper
level management but the lower level employees can give their opinions to their
subordinates and managers.
 Specialization
Honda Company is highly specialized because all the work is divided into
particular specialized employees. There is a visible division of jobs.
 Employee empowerment
In Honda Company employee empowerment is low. Somehow employees have a
little authority of giving opinions.
 Span of control
Span of control is low in Honda worldwide. Specific number of employees
works under one supervisor. Wider span is effective and efficient in terms of cost
but efficiency may suffer.
Honda Motor Co., Ltd. PESTEL & Environment Analysis:-
Political Factors that Impact Honda Motor Co., Ltd.

Political stability and importance of Auto Manufacturers - Major sector in

the country's economy.
 Risk of military invasion
Level of corruption - especially levels of regulation in Consumer Goods
sector.
Bureaucracy and interference in Auto Manufacturers - Major industry by
government.
Legal framework for contract enforcement
Intellectual property protection
Trade regulations & tariffs related to Consumer Goods
Favored trading partners
Anti-trust laws related to Auto Manufacturers - Major
Pricing regulations – Are there any pricing regulatory mechanism for
Consumer Goods
Taxation - tax rates and incentives
Wage legislation - minimum wage and overtime
Work week regulations in Auto Manufacturers - Major
Mandatory employee benefits
Industrial safety regulations in the Consumer Goods sector.
Product labeling and other requirements in Auto Manufacturers – Major

Economic Factors that Impact Honda Motor Co., Ltd.

Type of economic system in countries of operation – what type of economic system there
is and how stable it is.
Government intervention in the free market and related Consumer Goods
Exchange rates & stability of host country currency.
Efficiency of financial markets – Does Honda Motor Co., Ltd. needs to raise capital in
local market?
Infrastructure quality in Auto Manufacturers - Major industry
Comparative advantages of host country and Consumer Goods sector in the particular
country.
Skill level of workforce in Auto Manufacturers - Major industry.
Education level in the economy
Labor costs and productivity in the economy
Business cycle stage (e.g. prosperity, recession, recovery)
Economic growth rate
Discretionary income
Unemployment rate
Inflation rate
 Interest rates

Social Factors that Impact Honda Motor Co., Ltd.

Demographics and skill level of the population

Class structure, hierarchy and power structure in the society.
Education level as well as education standard in the Honda Motor Co., Ltd. ’s industry
Culture (gender roles, social conventions etc.)
Entrepreneurial spirit and broader nature of the society. Some societies encourage
entrepreneurship while some don’t.
Attitudes (health, environmental consciousness, etc.)
Leisure interests
Technological Factors that Impact Honda Motor Co., Ltd.

Recent technological developments by Honda Motor Co., Ltd. competitors

Technology's impact on product offering
Impact on cost structure in Auto Manufacturers - Major industry
Impact on value chain structure in Consumer Goods sector
Rate of technological diffusion
Environmental Factors that Impact Honda Motor Co., Ltd.

Weather
Climate change
Laws regulating environment pollution
Air and water pollution regulations in Auto Manufacturers - Major industry
Recycling
Waste management in Consumer Goods sector
Attitudes toward “green” or ecological products
Endangered species
Attitudes toward and support for renewable energy
Legal Factors that Impact Honda Motor Co., Ltd.

Anti-trust law in Auto Manufacturers - Major industry and overall in the country.
Discrimination law
Copyright, patents / Intellectual property law
Consumer protection and e-commerce
Employment law
Health and safety law
Data Protection
CUSTOMER SERVICES:-
The service to be offer to the customer of the driving school would be of a professional
quality with a well structured database for the customers. The driving school will aim at
teaching customers eco-driving techniques, knowledge about the efficiency of green
engine and safe driving techniques. The driving school will assist the customer till they
obtain their driving license.

However, the main objective of this service would be to promote existing green products,
green cars that Honda has already launched on the market and to get closer to the
customer to better understand their needs, and to inspire them with the philosophies and
principles with which cars are being manufactured at Honda. As every business, the
service is expected to generate a marginal profit to sustain itself.
 Environment:
The internal and external environment of Honda Atlas is given below.

Internal Environment:
The general conditions that exist within Honda Atlas Cars (Pakistan) Limited are:
Organization Members:
At Honda atlas, the members of the organization are united. They have a peaceful
working environment in the organization, where they interact and work together. This
is applicable in departments and in all the administration offices.
Nature of Interaction:
At Honda Atlas the members of the organization interact with each other in a conflict
free environment. The employees are motivated by their managers and the managers
by their chief managers.
Thus we conclude that they operate in a tension free atmosphere and concentrate on
their growth.
External Environment
In external environment two major factors involve, they are
A: Macro- Environment
B: Micro- Environment
 Macro Environment
In macro environment, there are different factors to acting, they are as follows
Technological element
Economic element
Legal-political element
Social cultural element
International element
Honda‘s environment and these factors are reciprocal to each other
 Technological element
Honda is very advance in its technology as it introduces first automatic shifting
gear system. Its ABS,G_CON and VTECH is a broad example of it that used for
safety purposes. Honda is excelling due to its high technology in market.
 Economic element
 Honda’s economic element involves wealth production, distribution and
consumption. In Honda capitalist economy is functioning and handles all its
market growth and consumption. It also maintain and supervision of its market
shares and production with reference of consumption.
 Legal-political element
Honda have to follow all legal and government system.e.g.they are imposed by
government of Pakistan to purchase auto parts from local vendors to some extent.
Government implies tax legislation system on Honda as well.
 Social cultural elements
Honda face the problem of socio cultural differences, managers in Pakistan
monitor trends changes in design, technology and interiors according to the
environmental acceptance.
 International element
Honda is internationally recognized organization. It is most demanding
automobile in international market due to its high technology and
advancement. Honda is effectively penetrating in most of the parts of world..
Micro environment
 Customer and Clients:
The customers and clients of Honda Atlas are the public of Pakistan, the
organizations who are working in the country and the multinational
organizations that operate in Pakistan. The customers are loyal customers are
they are satisfied by the quality and manufacturing standards of the company.
Portfolio Analysis
THE BOSTON CONSULTING GROUP MATRIX
HONDA SWOT ANALYSIS

BCG MATRIX:-
The Boston Consulting Group (BCG) Matrix is a simple tool to assess a company’s position in
terms of its product range. It helps a company think about its products and services and make
decisions about which it should keep, which it should let go and which it should invest in further.

 Stars Stars generate large sums of cash because of their strong relative market share, but also
consume large amounts of Cash because of their high growth rate. So the cash being spent and
brought in approximately nets out. If a star can maintain its large market share it will become a
cash cow when the market growth rate declines.

AUTOMOBILES businesses stand in Stars business in Honda Company because of its good
growth rate and high market share. This business is generated the maximum part of its company.
 Cash Cows As leaders in a mature market, cash cows exhibit a return on assets that is greater
than the market growth rate – so they generate more cash than they consume. These units should
be ‘milked’ extracting the profits and investing as little as possible. They provide the cash
required to turn question marks into market leaders.

MOTOR CYCLES business has high market share but its growth is decreased with the time
because of tough competition. So it included in cash cow business category in Honda Company.
 Question Marks Question marks are products that grow rapidly and as a result consume large
amounts of cash, but because they have low market shares they don’t generate much cash. The
result is a large net cash consumption. A question mark has the potential to gain market share
and become a star, and eventually a cash cow when the market growth slows. If it doesn’t
become a market leader it will become a dog when market growth declines. ELECTRIC AND
ALTERNATIVE FUEL VEHICLES

ROBOTS AIRCRATS MOUNTANIE BIKES

MOTOR SPORTS These are all business required maximum investment because these are
having a good market growth rate. Honda Company trying to increased the production of these
things from investing in this sector.
 Dogs

Dogs have a low market share and a low growth rate and neither generates nor consumes a large
amount of cash. However, dogs are cash traps because of the money tied up in a business that has
little potential. Such businesses are Candidates for divestiture. Power Equipment production of
Honda Company with passage of decreased due to less demand in market. So the company trying
to closed down these things production because of low market share and low growth rate.
Decisions after Analyses BCG •Build Market Share: Make further investments (for example, to
maintain Star status, or turn a Question Mark into a Star) •Hold: Maintain the status quo (do
nothing) •Reduce the investment (enjoy positive cash flow and maximize profits from a Star or
Cash Cow) •Get rid of the Dogs, and use the capital to invest in Stars and some Question Marks.

The hot cakes for Atlas Honda is CD 70,civic i vatic is very successful in the market and has lot
more potential to grow in future. It has highest relative market share and highest growth rate as
compared to other products of honda.
 CD 100&CR-V is a new entrant in the market right now, having only 10% share in Atlas Honda
total sales. It has probability of growth and failure both. But chances for failure are very minute
(close to zero), because of the fact that Atlas first carries out many experiments. It first comes
out with many variants (brands with different features) in the industry for experimenting
purpose. It then examines the sales of those variants and carries on with only those variants
(brands) which have a potential to grow and which could contribute in increasing sales and
profits. CD 100 &CR-V has a potential to grow in future and become a STAR.

CG 125&CIVIC VTI-ORIAL is a growing brand constituting 20% of the total sales. It has potential to grow
but not as rapidly as CD 70. It has probability of becoming a Cash Cow

HONDA SWOT ANALYSIS:-

its strengths, weaknesses, opportunities and threats in a SWOT analysis for 2019.

Strengths :
Brand equity :
As an automobile business, Honda has managed a strong image. The company’s
focus upon technology, customer experience and product innovation has led to
strong brand equity. Apart from that, Honda enjoys high brand awareness in
North America as well as Asian and European markets. Strong brand awareness
has also resulted in higher market share for the brand.

Strong presence in U.S. market :

Honda is one of the leading car brands in U.S. where its focus upon mobility,
robotics and AI have helped it gain higher market share. Its products including
the luxury brand Acura have continued to grow in demand. Honda has
established seven manufacturing and assembly plants in the United States.
The locations of these plants include Alabama, Ohio, Georgia, North Carolina,
South Carolina and India. Ohio has 2 Honda plants. According to
sources, Honda’s market share in the U.S. was 9.1% in 2018. The company
generated ¥7,480.4 billion in 2019 in net revenue from the United states.

Large product portfolio :

Honda has a large product portfolio that includes cars, motorcycles, aircrafts and
aircraft engines as well as motor parts. The company sells a large range of
 automobiles that include passenger cars, light trucks and mini vehicles. The
passenger cars by Honda include Accord, City, Civic, Crider, Fit/Jazz. Its light
truck models include CR-V, Freed, Odyssey, Pilot, Vezel/HR-V, XR-V. N-BOX
is a mini vehicle by Honda. Apart from these cars, Honda also makes a large
range of motorcycles. The bikes made by Honda include tourer bikes, sports
tourer bikes, adventure bikes, street bikes, as well as scooters and dirt bikes. Just
as the popularity of Honda cars is higher in the U.S., the popularity of Honda
motorcycles is very high in the Asian markets.

Strong motorcycle sales in Asia :

Economic growth in the Asian markets has accelerated in recent years. China has emerged as the
largest market for automobiles and become the favourite investment destination for all the
leading vehicle brands. Most leading automobile companies are focusing upon producing locally
to grow their sales in China and to control operating costs. Honda automobiles has seen the
highest success in U.S. followed by its domestic market Japan. However, when it comes
to motorcycles, Honda motorcycles enjoy heaviest demand and sales in Asia. Compared to
North America, Europe, Japan or the other regions of the world, the sales of Honda motorcycles
is the highest in the Asian region. In 2018

Global network :
Japan has ten Honda manufacturing and assembly plants and China also has nine. Apart from its
around 30 principal plants, the company also has smaller plants and regional offices located
around the globe. The company itself is headquartered in Tokyo, Japan. The entire Honda group
includes 435 companies of which 364 are consolidated subsidiaries and 71 are affiliate
companies, accounted for under the equity method.
Weaknesses :
Automobile Sales Weak in Asian markets :
The Asian markets are the leading playground of the vehicle brands. All the major automobile
companies are investing in building local infrastructure in China and other Asian markets.
Several of them have entered into partnerships with the local automobile firms in China to grow
their sales and manufacturing network there. China is now the largest market for automobiles.
However, Honda’s penetration of the Chinese auto market is low when compared with the other
leading rivals like Volkswagen, Ford or General Motors. Unless, Honda grows its penetration of
the Chinese market by producing new models locally according to the local demand and
consumer expectations, it may lose the race to other leading vehicle brands. Even if the China
market has seen a slight decline in demand in 2019

High dependence on core markets U.S. and Japan

The entire Asian market excluding Japan accounted for less than 25% of Honda’s revenue in
2018. North America, which is the largest market for Honda products accounted for more than
50% of the company’s revenue in 2018. U.S. alone accounted for more than 45% of the revenue
of the group. However, while the sales of Honda in U.S. and Japan are higher, the company
depends on these two markets for most of its sales. Due to low penetration of the Chinese
market, especially in the automobile segment, the company has to depend on its other two main
markets. Its motorcycle sales in Asia are higher than the other regions but they constitute a very
small part of its revenue which is less than 15% of total. In Europe too, the company has
continued to lose market share. For reducing its dependence on the two main markets, the
company would have to increase its penetration of China and the leading European markets.

Vehicle Recalls:

For past some years, Honda has been dealing with a very high number of vehicle recalls.
Between 2008 and 2017, the company had made more than 11 million recalls. While vehicle
recalls on the one hand signify attention to passenger safety and product quality, on the other
hand, the cars made by Honda have also continued to lose shine. Honda’s financials look in great
condition but the cars including Civic have continued to fall in quality rankings. Even the CEO,
Takahiro Hachigo accepted that Honda had lost its Mojo and was not the same company, it was
years ago. In 2013 and 2014, the company had made five recalls back to back of its hybrid
vehicles due to transmission defects. In 2018 and 2019 also, the company made a large number
of recalls. It recalled around 1.6 million vehicles over Takata airbag defects in 2019. Recalls over
safety and product defect issues are common in the automobile industry. However, Honda needs
to take these things seriously because otherwise its car models will continue to lose shine.
Organisational structure and bureaucracy :

Of all the major problems Honda has dealt with for several years, the severest are its complex
organisational structure and red tape. Red tape inside the organisation has mostly stopped it from
investing in new innovations and latest technologies. Current CEO of Honda had highlighted this
problem some years back. For past two-three years, he has been working upon solving it.
However, unless Honda simplifies its organisational structure and gets rid of the red tape, it will
start reflecting upon its bottom line sooner than expected. If Honda lost much of its shine in a
decade, it was because of the bureaucracy inside the organisation and because the company
could not take the right steps to secure its position in the auto industry. The environment is
growing more and more challenging and the company needs to be highly flexible to respond to
the fast changing environment. A simpler organisational structure will make it an agile
organisation and enable it to take challenges and respond to changing customer expectations at
higher speed.

Opportunities:
Electrical vehicles :
The demand for electric vehicles is growing around the world. People want cars that are
fuel efficient and free from harmful emissions. The adoption rate of plug in hybrids and
 electric cars has grown fast. China is leading the world as the largest market for electric
vehicles. In 2018, the sales of plugin vehicles globally including plugin hybrid vehicles
and all electric vehicles reached 2.1 million units. Plugin hybrids comprised 69% and
electric vehicles 31% of the total sales in 2018. China was the largest market where the
sales of EVs and plugins reached 1.2 million vehicles. 56% of all the sales of plugin
vehicles in 2018 took place in China. In the U.S. as well, plugin sales increased by 79%.
Tesla sold more than 128,000 units of its Model 3 during Q1 and Q2 of 2018. Including
Model S, X and Model 3, Tesla sold more than 158,000 EVs during the first two quarters
of 2018

Asian markets and mainly China :

The China market has grown into the world’s largest market for automobiles. Both U.S. and
China are the leading markets for automobile brands. Automobile companies are growing their
penetration of China through local partnerships and by investing in local manufacturing
infrastructure. Honda’s sales are high in North America but its penetration of the China market
is still comparatively low. In other Asian markets too, sales of Honda motorcycles are high but
that of Honda cars low. Honda has retained most of its focus on its domestic market and the
United States. However, with growing potential of China as a market for cars and motorcycles,
ignoring it will mean losing a major opportunity

Autonomous driving:
Investing in autonomous driving technology will also prove profitable for Honda. All the leading
automobile brands are investing in autonomous driving technologies. Several of them have
partnered to work together on this technology. Tesla’s autonomous driving technology is
considered to be the most advanced and the safest. Investing in autonomous driving technology
will also help grow the demand for the existing models of Honda. Autonomous driving and IoT
are considered to be the future of mobility. The transportation industry is going through a phase
of transformation. To sustain demand and sales of its products, the company must invest in these
technologies. Connected cars with digital interfaces and automated driving features will define
the future of mobility. These technologies can grow the attraction of Honda’s portfolio.

Autonomous driving:
Investing in autonomous driving technology will also prove profitable for Honda. All the leading
automobile brands are investing in autonomous driving technologies. Several of them have
partnered to work together on this technology. Tesla’s autonomous driving technology is
considered to be the most advanced and the safest. Investing in autonomous driving technology
will also help grow the demand for the existing models of Honda. Autonomous driving and IoT
are considered to be the future of mobility. The transportation industry is going through a phase
of transformation. To sustain demand and sales of its products, the company must invest in these
technologies. Connected cars with digital interfaces and automated driving features will define
the future of mobility. These technologies can grow the attraction of Honda’s portfolio.
 Threats :
Higher regulation:
The level of regulation of the automobile industry
throughout the world has grown a lot. In the U.S.,
laws are stringent requiring companies to pay
special attention to compliance in areas including
passenger safety, product quality and labor. With
higher regulation, the entry and exit barriers are
higher as well as faster growth can be difficult.
Incumbent players are forming alliances for growth
and expansion worldwide. Moreover, the level of
fines have grown and can be a significant
percentage of the net revenue of a brand. From U.S.
to China and Europe, legal and regulatory agencies
have adopted stricter laws. Businesses have to be
careful regarding tax laws and tariffs as
well. Several international businesses have
complained how rising tariffs are hurting their businesses.

Competitive pressure :
Growing competitive pressure also poses a big threat before the automobile brands. Higher
competition has led to higher growth related pressure and increased operating costs. In 2018,
Honda invested more than $7 billion in research and development. Moreover, with growing
competition, brands also have to focus more on marketing as well as technology and product
innovation. Some of the leading competitors of Honda include Ford, Toyota, Volkswagen, BMW
and Hyundai. All of Honda’s rivals invest a lot in research and development as well as
marketing. They are investing aggressively in latest technologies as well as market expansion.
Honda’s automobile market share is high in Japan and U.S. but weak in Asia. With higher
competitive pressure, the company’s operating expenditure has also grown higher. Operating
costs of Honda grew by 4.4% to ¥15,162.2 billion in 2018 as compared to the previous year. Its
costs of sales also grew by 4.8% in 2018 as compared to last year.
 Growing costs of raw material and labour:
Costs of raw material and labour have grown fast in recent years which reflects in the rising
operating costs and expenses of Honda. Moreover, due to growing focus on customer experience
and product quality, the company is investing more in its human resources and good quality raw
materials. These factors are driving the costs higher. However, keeping in mind the level of
competition in the industry as well as rising expectations of customers, these expenses are
essential. Honda needs to retain its market share and leading position for which it will need to
invest in both the things. With growing rivalry in the automobile industry the need for talented
employees has also grown.

Investment in CSR:
The brand also invests in CSR and charity initiatives so as to grow trust and build a reliable
image. In 2017, Honda celebrated the 2017 week of service during which its dealers and
suppliers served more than 162,000 meals, collected 1000 bags of trash and also donated 700
pints of blood. These actions and initiatives help build a socially responsible image and prove
Honda an accountable brand. Across the entire North America, the company has partnered with
non-profits working in fields like education and other kind of support as well as protection of the
environment. The brand also engages its associates in socially productive work. Its associates
volunteer for social initiatives. The brand also started a special campaign to raise awareness
among its customers about the distractions on the road. It posted a series of videos that are meant
to make people aware of the perils of distracted driving. Such videos do not just engage users but
also market a socially responsible image of the brand. Honda also donates to several charity
organisations.
Application of MIS in Honda:-
Helps in decision making:-
With the presence of computer everywhere, it is hard for any business to escape from the use of
IT systems. Some of the fields or departments are there in HONDA where MIS is priceless.
While computers are not able to create strategies of their own but still they can help mangers of
the organization in efficient decision making process and make them understand the usefulness
of strategies. MIS is capable of converting data into useful information which can be employed
in decision making. Even, MIS assists Honda in providing performance reports and financial
statements which is functional for planning, supervising and implementation of plans.
MIS also aids Honda in collating valuable information and transform it into rational reports
which otherwise be useless as it is impossible to manage volumes of data manually. With the
help of these reports, Honda can recognize trends and patterns which would be impossible if all
the work is done physically. MIS systems make use of the raw data to run replication and answer
a variety of theoretical questions such as ‘what if’ concerning modification in strategies. For
instance, MIS can tell Honda about the effect of alterations in price on the sales of their cars. Due
to the Decision Support Systems, Honda can be enabled to make more of the informed decisions
within the organizations which otherwise would be impossible without MIS.
Data collection:-
Even though MIS helps in collating numerable amounts of business information, but they are
also useful for providing saving time benefit to the employees. In contrast with the past where
files are to b handled manually, now MIS quickly examines the data after entering it into the
computer through data processor. Thus, enhancing faster decision making in the organization
which is reflect in the efficient working.
Information system:-
Everyday business require some or the other kind of information system in the organization.
With the computerized system recording and business process management is vital to run the
company at a profit as well as responding to the fluctuations in the market. Management
information system, however, are perfect for gathering and reporting information related to the
company’s business process. MIS enables Honda to review the data and make use of the
information for achieving the company’s objectives. (Clarke, 2007)
Management methods:-
The information provided by the MIS help the managers to look at the areas or departments
where there is need for the improvement (Pearlson, nd). What will be the techniques and
approaches for correcting the business activities will lie on the part of mangers abilities and style
of management that is practiced in the organization. By making use of de-centralized
management approach, line mangers are able to make corrections quickly as it requires a great
amount of autonomy in the management process. With the centralized management approach,
the power and authority lies with the top management only so that they can take decisions
(Stone, 2002).
Resource management:-
MIS system allows Honda to look at the utilization of resources and see if they are making use of
the resources in a proper and efficient manner. Equipments, raw materials, assets, labor and some
other are the examples of management resources that must be supervised and monitored
regularly by the organization. With an inefficient use of resources company may be pulled back
in the competitive environment and may loose competitive edge over the competitors. This also
leads to the losses for the company by reducing profit margins and lessening sales.
Decision process:-
Many of the companies make use of some sort of decision processes when they gathered
information from the MIS system. Every single unit of data is reviewed and is used to make
decisions regarding operational activities, market trends, profit margins etc. the process of
decision making consists of all the levels of management, tends to generate most well-informed
decisions (Wright, 2009).
Communication:-

Appropriate communication allows managers to take decisions for the organizations based on the
information provided by the MIS. Communication system permits top-level managers to discuss
the data from the front-line managers and department level managers, thus, creating downward
flow of the communication for making decisions. Upward flow of communication is also
important for the decision making process which allows front-line managers to have an
opportunity to discuss the information from MIS with the top level management. Open
communication flow allows Honda to obtain input or information from all the levels of the
management to make informed decisions obtained from the MIS system.

Environmental management

With the establishment of the business in the global environment, Honda is planning to introduce
environmental management system for continually improving the practices to be done for the
protection of environment. With the MIS system, Honda is getting proactive to acquire
environmental management ISO 14001 certification for the production processes and other
services. (Garson, 2003)

Kinds of MIS in HONDA:-

Financial MIS – this MIS states the past and present records of the Honda and its
activities. The financial MIS shows the profits and losses of Honda, its financial records
to represent how well company is going, decisions regarding control of the cost and
spending of funds.
Manufacturing MIS – this MIS monitors the flow of goods and services, raw materials
and components of Honda. Raw goods which are processed on Honda get monitored by
this manufacturing MIS. In this way, Honda with the aid of manufacturing MIS can
reduce and control the cost of goods and services.
Marketing MIS – this MIS is created for handling all the aspects of marketing like
prices, sales, advertisements, product innovations, future decision making etc. Marketing
MIS aids decisions regarding product appearance of the Honda. It helps the company in
enhancing customer contacts by preparing questionnaires for the feedback by customers
about the services of Honda and tracks out the spending habits of the customer.

Human Resource MIS – HR MIS helps Honda in recruiting and selection of candidates.
Human Resource views the requirements of the workers, hiring procedures, workforce
rules, and training and performance assignments. The task for the Honda’s Human
Resource MIS is to look at MIS also deals with the external and internal information or
data. The information regarding the internal working of the Honda can be easily available
from the company’s network, for e.g., sales for each car. The information of the external
environment can be collated from:

MIS is however, different from information system and data processing system (Lauden, 2007).
Operational information systems just read the collated data and perform the tasks like producing
lists of stuff that are required for re-ordering. Data processing systems helps in recording daily
transactions like sales of Honda cars in a particular month. Whereas MIS assist the managers in
analysing and evaluating the data related to the sales to show the pattern and trends of diverse
product lines, enabling them to make efficient decisions regarding the product and its promotion
or whether the promotion should be discontinued. It even collects the external data:

Data on the population shifts – with the increase in age of the people, they are less
likely to be interested in customizing cars.
Intelligence about competitor’s activities – this information can be gathered from the
newspapers, articles or from market intelligence.
Government Legislation – if there is increase in minimum wages, then financial
condition would change.
Economic and Social Factors – sales for the cars would fall in a particular area where
the employer had closed its plant.

E-business strategies:-
To keep pace with the fast changing technologies in the IT sector, Honda has embraced
some broad strategies in the implementation of e-business facilities. The setting up of a
website with the modern way of interacting with the world has definitely helped the
company in its marketing strategies. This has eliminated geographical boundaries, and
has provided Honda with opportunities to reach new markets. Through its website the
company provides a live platform 7 days a week over 24 hours.

Honda publishes a large amount of useful information on its website. This allows people
to be more aware of the company profiles, company history, company philosophies,
mission and vision statements, company structure, company goals and objectives and
other important financial data that help in building the firm credibility.

Honda uses its website to publish its annual report and to promote its products. The internet
provides a fair platform for comparison of similar products. Since Honda his very strict in
developing quality products at average cost. The e-business strategies provide a definite
advantage to reach its target market.

Why should buy a Honda?

Performance and Durability:-

The first reason why you should buy a Honda is its reputation for building durable
cars that perform exceedingly well. Right across the entire Honda lineup, you’ll
find cars that are long-lasting, fuel-efficient, and fun to drive.

Affordability:-
On most trims, you can get Android Auto, Apple Car Play, 16-inch alloy wheels, and a bunch of
advanced safety tech:

Honda Lane Watch blind spot display

Forward collision warning system
Lane departure warning system
Collision mitigation braking system
Adaptive cruise control
… and much more. That’s an impressive amount of equipment for a low-cost car.
Great Resale Value:-
Another compelling reason to buy a Honda is that their vehicles have outstanding resale values.
That means you’ll get a larger return on your investment when you sell or trade-in your vehicle
later on.
Versatility and Flexibility:-
Honda has a vehicle modeled for every lifestyle. If you need a towing and hauling workhorse for
the jobsite, the 2018 Ridgeline has your back. It’s powered by a 3.5-liter V6 that produces 280
horsepower and 262 lb-ft of torque. It also has best-in-class acceleration and fuel economy, and
can tow up to 2,268 kg (5,000 lbs). It was named the North American Truck of the Year in 2017,
and one of Car and Driver’s 10 Best Trucks and SUVs for 2018, so don’t let anyone tell you the
Ridgeline isn’t a truck.
Excellent Fuel Economy:-

why you should buy a Honda is fuel-efficiency. Gas prices aren’t going to stay low forever.
For that reason, you should get into a Honda – their vehicles are all posting exceptional fuel
economy numbers. Just look at the Civic, for example. At its best, it can achieve 7.4
L/100km in the city, 5.6 L/100km on the highway, and 6.6 L/100km combined. The fun-
sized Fit, for its part, gets 7.0 L/100km in the city, 5.9 L/100km on the highway, and 6.5
L/100km combined.
What’s more, fuel-efficiency isn’t just reserved to Honda’s smaller cars. Throughout the
entire lineup, Honda has strived to make their vehicles as environmentally friendly as
possible.

Safety and Reliability:-

This consists of forward-collision warning, automatic emergency braking, lane-departure
warning, lane-keeping assist, adaptive cruise control, and more. Other models have
similar things to offer, and you don’t have to spring for the top trims to access them.
In addition to advanced active safety tech, Honda’s ACE body structure also deserves
some praise. ACE stands for Advanced Compatibility Engineering. It’s a Honda-
exclusive body design that uses a network of front-frame structures to mitigate the impact
 from a frontal collision. In the event of a collision, it reduces and distributes evenly the
force exerted on the cabin. It’s the structure you want if or when the worst happens.
Repeat Best-Sellers:-
Honda continues to be one of the best-selling brands in Canada, and that’s no fluke. Just
over the past year, its market share in Canada grew by more than 2%. Also, annual sales
numbers increased by 6%. These are significant increases, and they serve to confirm
Honda’s excellence, as well as its popularity.
CUSTOMER NEEDS & EXPECTATION :-
Eco-driving techniques
Lessons on efficiency of green engines
Driving the latest released car
Driving instructors being highly technical people
Price reduction with respect to average market price
Selection possibilities for car models that the customer wants to drive
Benefit insurance reduction facilities
More personalize service
Flexibility in terms of time
A certificate of completion for eco-driving techniques
Marketing Plan for a new product or service:-
“Devise a new product or service for the car manufacturer and develop a marketing
strategy for that product or service. Alternatively, develop a marketing strategy for an
existing car in a market with which you are familiar. Your strategy should include:

Segmentation of the market

Selection of target market
Differentiation and positioning of the offering in the customers mind
Marketing objectives
A marketing mix for the new product or service
An indication of the costs of the marketing strategy and when the company should expect
a return on their investment.”

Maintenance and feedback:-

This phase is of vital importance of maintaining the reputation of the product in the Global
market. Feedback must be taken from the customers to check out of they are satisfied with the
products or what kind of the development process. This is most beneficial for to increase product
sale and to fulfill needs of the customer.

The IMC Concept:-

Formed an ad agency with a group to develop a comprehensive marketing plan for fuel cell
concept vehicle FCEV for the client, Honda Motor Company. The project given by Honda was
to develop a comprehensive integrated marketing communications plan for the upcoming release
of their concept vehicle. Honda allocated the group a very small budget asking for an online and
social media based plan. The objective is to effectively move consumers through the consumer
purchase funnel and ultimately get 1,000 qualified customers on the wait list for the vehicle's
release

Conclusion:-

Honda is one of the leading automobile brands in the global market. It has a large market share
in both Japan and the United States. However, Honda might need to focus upon the China market
to grow its sales there. Its light Honda Jet has also become a hit and was among the best selling
light jets of 2019 during the first half of the year. Honda motorcycles are popular in the Asian
markets. Honda’s focus on style, performance and competitive pricing has helped it acquire a
large market share in the Asian motorcycle market. For faster growth Honda must focus upon
technological innovation and invest in the latest technologies like AI, autonomous driving
technology and digitalization. As customers’ lifestyles have changed, so have their expectations
and demand.

The global automobile market has entered a challenging phase in 2019. Demand and sales have
fallen compared to last year. However, the demand and sales of electric cars is growing higher in
2019 and this trend is expected to continue in the coming years. Tesla’s sales in 2019 show that
the popularity of electric cars has grown. Honda too must focus upon growing its lineup of
electric vehicles and hybrids. This change has come somewhat abruptly and will benefit the
brands that have been investing more aggressively in electrified cars. Customer experience
should also be a top priority for Honda. Honda has a large product portfolio and that gives the
company some extra edge. However, it must not remain behind in the race for technology.
Investing in autonomous driving and electrical cars which help it retain its position when new
trends and technology are taking mobility into a new era.