INB372

Final Assignment and Quiz

Name: Nazmina Bhuiyan Anni

ID: 1913088630

Section: 5

Submit to: Mohammed Abdul Mumin Evan, Lecturer, Department of Marketing and
International Business, School of Business and Economics, North South University

Date of Submission: 4th June 2020

Table of Content

Introduction………………………………………………………………………….…………..1

SWOT Analysis……………………………………………………………………………….....2

Market Analysis……………………………………………………………………….................3

Conclusion……………………………………………………………………………………….4

Bibliography……………………………………………………………………………………..4

Quiz………………………………………………………………………………………….......5
Introduction:
Honda: The power of dream.
Honda is one of the biggest motor multinational company in the world. They started their
journey in 1948 by the first motorcycle. Honda motor and co was first introduced in Hamamatsu,
Shizuoka, Japan. Japan is Honda’s mother country. The founders were Soichiro Honda and
Takeo Fujisawa. It is a conglomerate company. Honda produces automobiles, commercial luxury
vehicles, motorcycle, scooter, electric generator, jet aircrafts, solar cells, outboard motors and
robotic. Honda has a mission statement – global, quality, youthfulness, harmony, and joy. Honda
has a global mission for quality like every other carmaker in the world. Honda sells their product
in 30 countries across Japan and Asia Oceania, 38 countries in the Americas, 46 countries in
Europe and 36 countries in Africa and Middle East. Honda has 215,638 employees all around the
world according to the fiscal year of 2018. Honda specializes in transportation and Honda is one
of the leading vehicle manufacturing companies around the world. Honda is a multinational
company and they operate in many countries as mentioned above hence they have foreign direct
investment as they can operate their company in many places such as Honda has invested in
many countries such as America, India and Mexico.

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SWOT Analysis:
Honda has few strengths, weakness, opportunities, and threats.
Strengths: Weakness:

 They are the largest motorcycle
manufacturer around the world.
 They are the eight largest manufacturers
of automobiles around the world.
 They have high cost and pricing as
they spend a lot on research and
development. They invest a lot in
R&D hence the pricing of the
product increases.

 They have good research and
development sector hence they can
change and adopt with the changes.
 For the last few years, they have the
high product portfolio as they high
technology products.
 They make products for few
markers like upper class people.
Their products are usually expensive
hence everyone cannot afford it like
everyone can afford Toyota.

 They have high market shares as they

have good manufacturing factory.

Opportunities: Threats:

 They have alternate of fuel such as  There is a high completion of

hybrid. By the new hybrid system automobile company as there are
there is lack of emission of harmful many companies now and everyone
gasses. Hence, they are creating a is concentrating more on R&D.
vital role in the environment.
 As they do not have mass market
 They are bringing new products production, they cannot provide
every year due to good R&D sectors services to everyone.
help hence they are having a product
extension.

 They are expanding their business in

developing countries and in
developing country, where they are
wanting to use the alternate of fuel
hence hybrid is the best decision for
them.

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Market Analysis:
Honda has few targets for the upcoming years. They create value through the research and
development. They try to be effective every year and increase their efficiency. They upgrade
their products every year, increase their quality and, they try to meet their customer demands.
Honda also tries to improve their products such as they are bringing environment friendly
vehicles. They have different strategy such as enterprise strategy where they promise to maintain
viewpoint and produce the best quality of product at a lower price to the consumers. They
produce higher quality products and use safer technology in their market strategy. Corporate
strategy where they aspire at expanding its business to greater and higher profit and gaining
competitive advantage over rival organization. Honda also has business strategy where they are
always involved in research and development to develop their product every year.

Market 1: Bangladesh
Honda has entered the market in Bangladesh through joint venture with a manufacturing factory
in Bangladesh named the Abdul Monem Economic Zone. Honda has incorporated in Bangladesh
on December 4th,2012. They are manufacturing in Bangladesh and working on different
accessories related work. In Bangladesh, the labor cost is lower than America or Japan hence the
cost of making accessories would be lesser than the exported Japanese car. Now in Bangladesh,
Honda has a few best selling cars such as the Vezel, it is one of the most affordable cars in
Bangladesh now, which has both hybrid technology (environment friendly) and conventional
engine where it can be used for everyone.

Market 2: China
Honda has also entered the market through 2 joint ventures with companies named Guangzhou
Honda Automobiles and Dongfeng Honda Engine co. ltd. They have entered the market on 8th
September 2003. They have entered the market with automobiles. The Chinese automobile
companies were extremely competitive hence Honda did not have enough market shares as few
companies like Nissan, Toyota, and Mercedes. The market was declining by 5% slowly. Also,
Honda’s cars are expensive hence people of China could not afford it as their demand was high
for lower priced cars. After some years they have increased their industry in China and started
producing electric cars in China according to their demand, and now Honda is in a good position
in China.

Market 3: Thailand
Honda is expanding in many places such as Thailand, where they entered the market with
motorcycles. They have practiced foreign direct investment which have formed Asia Honda
Motor Co. Ltd., in 1986. They have gained 60% of the market share in Thailand as they started

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producing the products in Thailand and the cost of producing were lower than imported products.
Honda has become more of a local brand in Thailand hence the local people supported the
business in a small time. Slowly, Thailand’s Honda Company brought new cars into the market
and they also kept producing motorcycles.

Conclusion
Honda is a very prospective high aiming multinational company. Automobile companies are
incredibly competitive as there are many markets in the world to explore. Honda is one of the
leading automobile markets around the world. They are constantly changing and innovating their
products every year as their research and development is one of the best compared to other
companies. They are globalizing their market and gaining a lot of profit each year. Today Honda
is profitable and well renowned company due to their successful expansion around the world.

Bibliography:

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Quiz:
 Bangladesh
 Benefits:
- If Honda produces in Bangladesh, the Bangladeshi market will be able to
enjoy an increase in employment and economic growth. More of the
Bengali workers will be assigned by Honda. Therefore, the workers of
Bangladesh will be earning. All in all, the earning source will rise causing
the GDP to rise overall. This will help Bangladesh to achieve economic
growth. The unemployment rate will be lower since Bangladesh is a
developing country. This will boost the economy.
- There will be an increase in human resource development. The workers
will gain more skills as they will be working for a MNC like Honda. This
will bring a boost to the education, training of the workers.
- There will be a rise in development of backward areas. FDI will help to
enable changes from the backward areas of the country as well.
- There will be a rise in provision of finance and technology. Since Honda is
a multinational company, they will be operating with the most advanced
technology. Over time, they will introduce new technologies which will
benefit Bangladesh since they may use it elsewhere. This will enhance the
local economy resulting to more finance, effectiveness and efficiency.
- There will be an increase in exports. Many of the products will be
exported as well.
 Costs:
- There will be an adverse effect in the competition sector. Since Honda is a
MNC they will have the upper hand in terms of brand image. More people
will prefer buying their products since they already have a good name.
This will cause a reduction in the local demand of the country’s local
products.
- There might be a loss of national sovereignty.

 China
 Benefits:
- For China it is very easy to bring in new resources, technology and this will
benefit the country.
- There will be an increase in capital availability. FDI inflow will cause an increase
in investment in China. As a result, there will be economic development.
- The competitiveness will increase as well in the Chinese market
 Costs:
- China is a developed country which already has a lot of local competitiveness.
Hence, Honda might not bring immense changes in the economy.

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 - There might be an adverse effect on the balance of payments as well.
 Thailand
 Benefits:
- Effects on Resource – Transfer- Foreign direct investment can add great amount
of value to a landlord economy with providing cash and capital, innovative
technology, and governance sources that might the directly invested country does
not have and with the help of three important resource the country’s economy’s
expanding rate can be increased. That type of source transport can contribute to
the stimulating the fiscal expanding of the landlord economy. There are three
elements in Resource – Transfer Effect, which are Capital, Technology and
Management. ("Costs and Benefits of Foreign Direct Investment (FDI)", 2020)
- It is great source of tax revenue. Since Honda is a big MNC, it is beneficial for
Thailand to earn a great amount of tax from them. The profits earned by Honda
also act like an earning source for Thailand.
- It may help in the economic and social infrastructure too.
- It may also help in strengthening the government budget. Which may stimulate
the national economy.
 Costs:
- There might be a lot of cultural differences and political interference too.
- There might be over utilization of the resources that too by a foreign company. It
was both for the natural and human resources. So the foreign companies exploit
the resources. 1

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Costs and Benefits of Foreign Direct Investment (FDI). (2020). Retrieved 4 June 2020, from
https://www.ukessays.com/essays/economics/costs-benefits-foreign-direct-investment-6438.php

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