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Group 7 Case Study
Group 7 Case Study
In Partial Fulfillment
of the Requirements for the
MGT 406 Strategic Management
By:
OMGT 4101
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PROBLEM STATEMENT:
Honda Motorcycle Company faces a pressing challenge centered on the imperative
to enhance the environmental sustainability of its operations. In the wake of growing
concerns about climate change and environmental impact, the company recognizes the
necessity to reduce the carbon footprint associated with the manufacturing processes of its
motorcycles. This challenge extends across the entire supply chain, including raw material
extraction, production, transportation, and end-of-life considerations.
The complexity lies in devising comprehensive strategies that not only minimize
environmental impact but also align with the company's commitment to maintaining high-
quality standards and meeting the increasing demand for its motorcycles. Balancing these
Rizal Avenue Extension, Batangas City, Philippines +63 43 980-0385 loc. 1124
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STRENGTHS:
Strong brand reputation
Honda is known for its quality and reliability, which has contributed to its strong brand
image globally.
Diversified product portfolio
Honda offers many products to consumers including engines, cars, motorcycles, jets,
robots, generators, lawnmowers, water pumps, as well as many other power equipment
products. While the cars generate the most revenue for Honda, its overall product portfolio is
fairly diversified, when compared to Volkswagen, Toyota, General Motors, or Briggs and
Stratton (in an engine industry).
Technological innovation
Honda has a history of technological advancements in areas such as fuel efficiency,
hybrid technology, and safety features.
Strong R&D Departments
Honda has strong research and development groups. It has an R&D department on
every important location it has been operating its businesses. Additionally, for R&D purpose
it collaborated with other different institutions.
Strong position in Asia’s motorcycle markets
Asia Pacific region, which includes such countries as China, India, Vietnam,
Thailand, the Philippines, Malaysia, Indonesia, Australia and Japan, is the largest motorcycle
region in the world and Honda’s strong position in it is a powerful competitive advantage.
Environmental sustainability
Honda is committed to reducing its environmental impact by developing eco-friendly
products and manufacturing processes. The company has set ambitious targets for reducing
CO2 emissions and increasing the use of renewable energy in its operations.
WEAKNESSES:
Heavy reliance on the automobile segment
While Honda has a diverse product portfolio, a significant portion of its revenue is
generated from the automobile segment. This reliance makes the company susceptible to
fluctuations in the automotive industry, including changes in consumer preferences,
regulations, and economic conditions.
Dependence on key markets
Honda heavily relies on the North American and Asian markets for its sales and
revenue, which exposes it to market-specific risks.
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Pablo Borbon Campus
OPPORTUNITIES:
Increasing demand for electric vehicles
As the demand for electric vehicles grows, Honda can capitalize on this trend by
further investing in and expanding its electric vehicle offerings.
Expansion of electric vehicle (EV) offerings
As global demand for electric vehicles continues to grow, Honda has the opportunity
to expand its EV portfolio and establish itself as a leader in this market segment. This would
help the company stay competitive and capitalize on the shift toward sustainable
transportation.
Growing emerging markets
Honda can continue to expand its presence in emerging markets such as India and
China, where there is a rising middle class with increased purchasing power.
Technological advancements
Honda can leverage technological advancements such as autonomous driving,
connectivity features, and alternative fuels to stay competitive in the market.
THREATS:
Intense competition
The automotive industry is highly competitive, with major players like Toyota,
Volkswagen, General Motors, and Ford vying for market share. Increased competition can
pressure Honda’s sales, pricing strategies, and profit margins.
Economic factors
Economic fluctuations and downturns can impact consumer purchasing power and
demand for automobiles, affecting Honda's sales.
Changes in regulations
Changes in government regulations related to emissions, fuel efficiency, and safety
requirements can pose challenges for Honda in terms of compliance and adapting its
products.
Rizal Avenue Extension, Batangas City, Philippines +63 43 980-0385 loc. 1124
www.batstate-u.edu.ph cabeihm.pb@g.batstate-u.edu.ph
Pablo Borbon Campus
Rizal Avenue Extension, Batangas City, Philippines +63 43 980-0385 loc. 1124
www.batstate-u.edu.ph cabeihm.pb@g.batstate-u.edu.ph
Pablo Borbon Campus
Rizal Avenue Extension, Batangas City, Philippines +63 43 980-0385 loc. 1124
www.batstate-u.edu.ph cabeihm.pb@g.batstate-u.edu.ph
Pablo Borbon Campus
Rizal Avenue Extension, Batangas City, Philippines +63 43 980-0385 loc. 1124
www.batstate-u.edu.ph cabeihm.pb@g.batstate-u.edu.ph
Pablo Borbon Campus
Rizal Avenue Extension, Batangas City, Philippines +63 43 980-0385 loc. 1124
www.batstate-u.edu.ph cabeihm.pb@g.batstate-u.edu.ph
Pablo Borbon Campus
Product Price
Rizal Avenue Extension, Batangas City, Philippines +63 43 980-0385 loc. 1124
www.batstate-u.edu.ph cabeihm.pb@g.batstate-u.edu.ph
Pablo Borbon Campus
Rizal Avenue Extension, Batangas City, Philippines +63 43 980-0385 loc. 1124
www.batstate-u.edu.ph cabeihm.pb@g.batstate-u.edu.ph
Pablo Borbon Campus
IMPLEMENTATION
Collaborate with suppliers to develop and implement sustainable raw material
sourcing procedures, emphasizing environmentally favorable options. Implement a
transparent tracking system to trace the origins and environmental impact of goods sourced.
In manufacturing facilities, invest in energy-efficient technologies and procedures. When
possible, use renewable energy sources to power production. Use smart technologies to
reduce energy usage throughout the manufacturing process. Reduce emissions by
optimizing transportation routes. Introduce hybrid or electric vehicles to the distribution fleet.
Implement a waste reduction program that focuses on recycling and reusing goods in
collaboration with logistical partners. Investigate the viability of implementing a circular
economy model, in which end-of-life products are recycled into new components. Create a
dedicated environmental sustainability team to continuously analyze success and find
chances for improvement. Encourage staff participation through training sessions and public
awareness initiatives.
EVALUATION
Regularly audit suppliers to ensure compliance with sustainability standards. Monitor
the ecological impact of sourced materials and adjust strategies based on environmental
assessments. Conduct periodic energy audits to measure the effectiveness of implemented
technologies. Compare energy consumption data over time to assess the impact of energy
efficiency measures. Monitor transportation-related emissions regularly. Analyze the
efficiency of distribution strategies in minimizing the overall carbon footprint associated with
Rizal Avenue Extension, Batangas City, Philippines +63 43 980-0385 loc. 1124
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Pablo Borbon Campus
CONCLUSION.
Honda Motors, a Japanese multinational corporation with a long history of innovation,
has established itself as a global automotive industry pioneer. The company's unwavering
dedication to quality, technological advancement, and environmental sustainability has
earned it a reputation for excellence and consumer trust. However, as the industry changes
rapidly, Honda faces the challenge of adapting its strategies in order to maintain its
competitive edge.
There are several obstacles for the company because of its reliance on the auto
industry, recall problems, and a delayed uptake of electric vehicles. Honda needs to expand
the variety of products it offers, give electric vehicle technology innovation top priority, and
put strict quality control procedures in place if it wants to overcome these obstacles.
Furthermore, the business ought to take advantage of its worldwide reach in order to
penetrate new markets and profit from the rising need for environmentally friendly
transportation options.
Honda still has a number of advantages that can be used to its advantage in order to
succeed despite these difficulties. An excellent basis for expansion is provided by its broad
range of products, reputable brand, and dedication to environmental sustainability. Honda
can successfully negotiate the changing automotive landscape and maintain its position as a
market pioneer by building on these advantages and minimizing its disadvantages.
Honda has always been committed to providing excellent customer service and has
never stopped seeking out new ideas. The business needs to keep embracing change,
adjusting to new technologies, and putting sustainability first as it starts the next phase of its
growth. Honda can guarantee its future prosperity and firmly establish itself as the world's
foremost automotive company by doing this.
Rizal Avenue Extension, Batangas City, Philippines +63 43 980-0385 loc. 1124
www.batstate-u.edu.ph cabeihm.pb@g.batstate-u.edu.ph
Pablo Borbon Campus
Rizal Avenue Extension, Batangas City, Philippines +63 43 980-0385 loc. 1124
www.batstate-u.edu.ph cabeihm.pb@g.batstate-u.edu.ph
Pablo Borbon Campus
Rizal Avenue Extension, Batangas City, Philippines +63 43 980-0385 loc. 1124
www.batstate-u.edu.ph cabeihm.pb@g.batstate-u.edu.ph