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HONDASTRATEGICANALYSIS
HONDASTRATEGICANALYSIS
Submitted to:
Dr. Sir Mubashir Mehdi
Submitted by:
1. Waheed Athar
2. Hamza Khadim
Vision Statement:
“To be the first preference at every level of car lovers, and be the market
leader.”
Mission Statement:
“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
Strategic Objectives/Goals
Customers
Our Customers are the reason and the source of our business. It is our joint
aim with our dealers to ensure that the customers enjoy the highest level of
satisfaction from use of Honda Cars.
Quality
To ensure that our products and services meet the set standards of
excellence.
Technology
Shareholders
Key Opportunities:
1. People’s awareness about Global Warming.
2. Customer desire for hybrid and fuel efficient vehicles.
3. Increase in technology in automobiles forces customers to return to
dealer for service.
4. Introduction of ethanol fuel in Pakistan.
5. Increase in demand of small vehicles.
6. Growing Automotive Market.
Key Threats:
1. Political Instability.
2. Energy crisis.
3. Rising fuel and steel prices.
4. Inflation & Tax rates.
5. Depreciation of rupee against dollar.
From the above matrix calculation, we can see that the total
weighted score for Honda Atlas is 2.58, which is above of 2.50 by
0.08 points and shows that it falls in attractive segment.
Internal Factors Evaluation (IFE Matrix)
The purpose of an internal audit is to focus on developing objectives and
strategies to capitalize on internal strengths and overcome weaknesses.
We list the organizations Key strengths & weaknesses so that we could use
them in a way to get positioned competitively. We try to overcome our
weaknesses and try to turn them in our strengths!
Key strengths:
1. Brand image
2. Strong R&D
3. Timely new models
4. Advance technology
5. Customer loyalty
Key weaknesses:
From the above matrix calculation, we can see that the total
weighted score for Honda Atlas is 2.74, which is above of 2.50 by
0.24 points and shows the company is above the minimum point.
TWOS MATRIX
Strengths:
1. Brand image
2. Strong R&D
3. Timely new models
4. Advance technology/equipment
5. Customer loyalty
6. Smoother drive as compare to its competitors
7. Safety
8. Environment Friendly Cars
Weaknesses:
1. Dealership Network
2. Costly Spare Parts
3. Limited Product Line
4. Shortage of Trained Technicians
5. High Cost of Production
Opportunities:
1. People’s awareness about Global Warming
2. Customer desire for hybrid and fuel efficient vehicles
3. Increase in technology in automobiles forces customers to return to
dealer for service
4. Budget friendly & economy cars
5. Automobiles increasing
Threats:
1. WTO (World trade Order) opening local markets for global
competition
2. Political instability
3. Energy crises
4. Depreciation of rupee against dollar
5. Increase in Petroleum and steel prices
6. Inflation
7. Declining quality of the infrastructure in the country.
1. Rightsizing
2. Strict employee policies to contain overhead and unfavorable
economic condition.
SO strategies: use firm strength to take advantage of external
opportunities.
Market segmentation
Importance of segmentation:
1. Demographic:
Income
Occupation.
2. Psychographic:
Personality
Social class
Product Positioning
Positioning entails developing schematic representations that
reflect how your products or services compare to competitors’ on
dimensions most important to success in the industry.
High convenience
Honda
Low convenience
High price
Honda
Low price
Conclusion:
After the analysis of Internal & External Factors as well the TWOS strategy
matrix, it is clear that it is appropriate and feasible for Honda firm to follow
the product diversification strategy.
In this context, the company will have to put new production plants in order
to produce new cars. This will include the arrangement of heavy budget
and extensive marketing of the new products. Since the monetary policies
of the country are tight at present, the company should arrange the capital
in form of equity by floating the shares in the market or wait for the interest
rates to fall down as the economic and inflationary situation of the country
stables. The products will contain product line of small cars i.e. 800 c.c. and
below.