SHAH ABDUL LATIF UNIVERSITY KHAIRPUR MIRS

ATLAS HONDA PAKISTAN

SUBMITTED TO: PROF.DR.RAHEEM BUX SOOMRO

SUBMITTED BY: MOHSIN ALI HULLIO

ROLL NO: BBA-17-42

 SHAH ABDUL LATIF UNIVERSITY KHAIRPUR MIRS
Table of contents
S.No. Topics names Page No.
1 Executive summary 3

2 Introduction 4

3 Vision and Mission 5

4 Strategic goals /Core values 6-7

5 Organization chart 8

6 Financial review 9-12

7 13
Why our organization company engaged in international Business

8 Pestle analysis 14-17

9 Competitive advantage 18
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Executive Summary
Honda atlas Pakistan Ltd was created by the joint venture of Atlas Group of
Pakistan and Honda Motor Company Japan. The first car rolled out from the plant in
1994, since then Honda Atlas has been growing in terms of production capacity, market
share etc. Honda is a strong brand name worldwide and it is differentiated by very high
quality standards, technology, safety standards and advanced designs. In Pakistan
Honda Atlas has successfully maintained its brand image hence they are the only local
manufacturers who are concentrating on these factors other than only making profits
like its competitors. Market share of Honda Atlas is 11%. The customers they make are
very loyal so there is an increasing trend in the market share since the company started.
Pakistan's automobile industry has flourished more than four times in last six toseven
years and the reason behind that was increasing demand. All the companies are
successfully fulfilling this demand successfully. But currently due to the political instability,
global recession, war on terror and some other factor our economy had been damaged
a lot, due to which buying power has decreased a lot. It resulted in the decreasing
demand of automobiles which affected the local car producers. Moreover we have
analyzed the company thoroughly, internally and externally. We have analyzed the
financial position its competitors and finally the suggested strategies are given to
increase sales and improve the weak areas.

INTRODUCTION
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Atlas Honda Limited is a public listed company which was incorporated on October
16, 1962. It is a joint collaboration between Honda Motor Company Limited Japan,
the largest and most reputed motorcycle brand in the world, and Atlas Group, one of
Pakistan’s most renowned business conglomerates. The Company is principally
engaged in progressive manufacturing and marketing of motorcycles and spare
parts.

Atlas Honda Limited is the largest motorcycle manufacturer in Pakistan with the
strongest brand value and highest customer loyalty. The Company is considered a
pioneer of motorcycle industry in the country and has been leading two wheeler market
successfully for over 50 years.

The Company currently has a production capacity of over 1.35 million units per annum
and continues to maintain its status as market leader both in terms of volume and
quality. It also exports its motorcycles and spare parts to Bangladesh and Afghanistan.

With highest quality products, state of the art manufacturing facilities, largest dealership
network & impeccable after sales service, Atlas Honda Limited is today considered a
benchmark for two wheeler manufacturing. It has been proudly and successfully fulfilling
its role as the flag bearer of motorcycle industry in Pakistan.

As one of the largest tax payers in the private sector and being one of the best
employers in the country, Atlas Honda Limited stands as a beacon of light for the
corporate, social and intellectual sectors of Pakistan.

Manufacturing Facilities:
1.
a. Sheikhupura…plant
26-27 KM, Lahore-Sheikhupura Road, Sheikhupura-39321
This plant is the country’s largest in-house manufacturing facility for
motorcycles and related spare parts. It’s a modern state of the art factory that
is involved in manufacturing of all the models of the Company. Its spread over
27 acres.

b. Karachi…plant
F-36,Estate,Avenue,S.I.T.E.,Karachi-75730
This is the mother plant of the Company. Atlas Honda Limited started its
operations from here back in 1963. It is spread over 5 acres and is used for
manufacturing CD70 (one of Company’s most famous models). It also
operates as Company’s Head Office.

Vision
“Market leader in the motorcycle industry, emerging as a global competitive centre of
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production and exports.”
MISSION
“A dynamic growth oriented company through market leadership, excellence in quality
and service and maximizing export, 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 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 Goals/Core values

Customers
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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 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 motorcycle 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. Payment of regular satisfactory dividends and adding value to the
shares.

Employees

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

Corporate Citizen

To comply with all Government laws, rules and regulations and to maintain a high
standard of ethics in all operations and to act as a responsible member of the
society.

Quality Policy
 Commitment to provide high quality motorcycles & parts.

 Right work in first attempt and on time.

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 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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Financial overview
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Why our organization company engaged

in international Business.
The Company is committed to offer sustainable mobility solutions by maintaining the
quality of products, ensuring customer safety, appropriate marketing and providing best
after-sales service. The Company is continuously expanding its business and providing
customers with a diversified selection of quality products. In addition, the Company
keeps expanding its sales and service network across Pakistan. To ensure customer
satisfaction, the Company takes dealer training initiatives and encourages customer
feedback. Further, Company provides safety training to customers throughout the year.
The Company follows Honda’s vision and takes into account health and safety impacts
of its products to ensure safety of customers and other road users. Constant monitoring
and regular reviews are carried out on all business aspects and processes in order to
ensure they continue to comply with the Company’s commitment to produce quality
products.

Product Quality

Atlas Honda aims to be a company trusted by its customers for its quality products. The
Company focuses on quality at every stage, from the planning of new products through
development, manufacturing, distribution and sales to after-sales. The Company
evaluates its products’ performance and health & safety impacts. Information derived is
used to develop and implement effective solutions. During the year, all products of the
Company were in compliance with requirements concerning health and safety impacts.

Honda’s Quality Cycle

The Company’s global partner, Honda Motor Company Limited follows a uniform quality
strategy worldwide. In order to live up to the high quality standards, quality assurance
activities are governed by a central body at cross band level. By applying and reflecting
design and development expertise at the preparation and production stages, the
Company is able to deliver enhanced quality through the creation of drawings designed
to facilitate manufacturing, as well as develop manufacturing control techniques that
limit process variability. Post-sale, improvements are made to product quality based on
an analysis of customer’s feedback. These improvements are reflected in our know-how
for the next round of design and development.
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PESTLE ANALYSIS

Political factors play a significant role in determining the factors that can impact Honda
Motor Co., Ltd.'s long term profitability in a certain country or market. Honda Motor Co.,
Ltd. is operating in Auto Manufacturers - Major in more than dozen countries and
expose itself to different types of political environment and political system risks. The
achieve success in such a dynamic Auto Manufacturers - Major industry across various
countries is to diversify the systematic risks of political environment. Honda Motor Co.,
Ltd. can closely analyze the following factors before entering or investing in a certain
market-

 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
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ECONOMIC

The Macro environment factors such as – inflation rate, savings rate, interest rate, foreign
exchange rate and economic cycle determine the aggregate demand and aggregate investment
in an economy. While micro environment factors such as competition norms impact the
competitive advantage of the firm. Honda Motor Co., Ltd. can use country’s economic factor
such as growth rate, inflation & industry’s economic indicators such as Auto Manufacturers -
Major industry growth rate, consumer spending etc to forecast the growth trajectory of not only
--sector name-- sector but also that of the organization. Economic factors that Honda Motor Co.,
Ltd. should consider while conducting PESTEL analysis are –

 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
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SOCIAL

Society’s culture and way of doing things impact the culture of an organization in an environment.
Shared beliefs and attitudes of the population play a great role in how marketers at Honda Motor
Co., Ltd. will understand the customers of a given market and how they design the marketing
message for Auto Manufacturers - Major industry consumers. Social factors that leadership of
Honda Motor Co., Ltd. should analyze for PESTEL analysis are -  

 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
Technology is fast disrupting various industries across the board. Transportation industry is a good
case to illustrate this point. Over the last 5 years the industry has been transforming really fast, not
even giving chance to the established players to cope with the changes. Taxi industry is now
dominated by players like Uber and Lyft. Car industry is fast moving toward automation led by
technology firm such as Google & manufacturing is disrupted by Tesla, which has stated an
electronic car revolution.
A firm should not only do technological analysis of the industry but also the speed at which
technology disrupts that industry. Slow speed will give more time while fast speed of technological
disruption may give a firm little time to cope and be profitable. Technology analysis involves
understanding the following impacts -

 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.
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LEGAL
In number of countries, the legal framework and institutions are not robust enough to
protect the intellectual property rights of an organization. A firm should carefully
evaluate before entering such markets as it can lead to theft of organization’s secret
sauce thus the overall competitive edge. Some of the legal factors that Honda Motor
Co., Ltd. leadership should consider while entering a new market are -

 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
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COMPETITIVE ADVANTAGE:

Atlas Honda’s in-house technology with collaboration of Honda motor co, Japan,
excellent network of vendors, QUALITY, dealership network with 5s facilitation, and
culture are their competitive edge in terms of administration, operational, human
resource. Marketing perspectives.
The Company's real competitive advantage comes from its associates who are
technically skilled and professionally committed. They are the real strength of our
manufacturing and marketing powers. These talented individuals have managed to
nurture a unique element we are most proud of – the culture of Atlas Honda.