Environmental Analysis – Honda Company

Legal/Regulatory Analysis

Although, Honda is a Japanese based automobile company, it has numerous

subsidiaries in Asia, Europe and North America. Besides, the manufacture of

motorcycles, the company also produces sports equipments, marine engines, power

generators, and luxury cars called the Acura (Scott, 2012). Since the country operates

in different countries, there are external business challenges to be addressed.

In terms of legal factors, the company is expected to adhere to the laws and

regulation of the country where it operates. For example, in most countries in North

America and Europe, the working hours are standardized, and employees are only

expected to work for 8 hours. What is more, employee wages are calculated per hours,

hence making it difficult for the company to sustain wages and salary. In the United

Kingdom, employment laws require companies such as Honda to pay £ 6.93 per hour

as minimum wage. Consequently, this highly affects the sustainability of the company

operation and profits (McBeth, 2009).