HONDA Report Essays

HONDA Report Essays HONDA Report Essay HONDA Report Essay Introduction. Soichiro Honda was born on November 17, 1906, in Hamamatsu, Shizuoka, Japan. He was a racer, a businessman, and a manufacturer. He dreamed of a better way of making piston rings, founded a small company, and began production. He was also a Japanese engineer and industrialist, and founder of Honda Motor Company, Ltd, which is a Japanese multinational corporation primarily know as a manufacturer of automobiles and motorcycles. Headquartered in Japan, Honda Motor Company is one of the major producers of quality motor vehicles around the world. Honda Motor Company is by far the worlds biggest motorcycle maker since 1959. Hondas quality, innovation and reliability have made it one of the most sought after car brands in the world. Its major car models such as Accord have occupied the leadership position in global sales for years now. Honda cars are also renowned for their fuel efficiency and have a loyal customer following all around the world. Hondas leadership position is sustained due to its enormous focus on RD, quality and innovation. Along with Toyota, its major competitor, Honda has ruled the US markets with its uccessful models and captured market share of American manufacturers such as GM and Ford. This success turned Hondas focus to another dream, the American Dream, and the company also moved away from other companies who relied upon distributors to sell their bikes when the company set up its headquarters in the west coast of America. Company overview 0 Honda has grown to become the worlds largest motorcycle manufacturer and one of the leading automakers. Honda develops, manufactures and markets a wide variety of products ranging from small general-purpose engines and scooters to pecialty sports cars, to earn the Honda Motor Company an outstanding reputation from customers worldwide. The Companys business is carried out through four segments: The Two-Wheel segment manufactures two-wheel vehicles All-terrain vehicles (ATVs) Personal watercrafts And other related products. The Four-Wheel segment offers four-wheel vehicles and other related products. The first production automobile from Honda was the T360 mini pick-up truck, which went on sale in August 1963. He was produced as a conventional rear wheel drive pickup truck, a flatbed with folding sides, and as a covered van. But, Hondas major car models include its best selling Accord, Civic, CRV, Hybrid car Insight and its luxury range of cars under the Acura brand. The Accord automobile followed in 1976, the same year that American Honda released its first automatic transmission motorcycle, the CB750A. The Honda Civic is a line of subcompact and subsequently compact cars. On the automotive side, Honda became the first manufacturer to finish first, second and third in the Motor Trend Import Cars of the Year selections. The word ? « civic ? » means of, or relating to a citizen, a city, citizenship or civil affairs. As its name suggests, the Civic incorporated Hondas wish to create a car for all people, a car for the world. The Financial segment in engaged in the provision of financial and insurance services. The General-purpose and Others segment is engaged in the manufacture of general-purpose products and its related products. Headquartered in Tokyo, the Company has over 400 subsidiaries and over 100 associated companies in Japan, North America, Europe, Asia and other districts. It is essential that Honda Motor Company focused on making its cars more fuel- efficient. To make this idea work, Honda will need to spend heavily on continuous research and development. Such R process is an on-going activity at progressive and innovative organizations like Honda. Hondas engineers will need to think out of the box and come up with innovative technologies that can really set apart Honda from its compet itors. Focusing on high HP-to-weight ratio engines and environment friendly hybrid vehicles will help the company to protect its market share in the future. For example, the two seated Insight model, which derived its power from a ombination of a 3-cylinder gasoline engine, and a large battery pack providing power-assist during acceleration was a good start. Another innovation is the use of ethanol as an efficient and more environment friendly gas substitute. Honda Motor Company needs to create new models or redesign existing models to be more friendly and geared for comfort of the older generations, such as the baby boomers. This comfort should be teamed with a fashionable look, as baby boomers dont want to be reminded of their aging bodies. To come up with this range of product mix, Honda will need to make significant capital expenditure. However, this strategy can be dangerous as Honda might lose its focus. In an effort to capture this segment of the marketplace, Honda might lose its quality and strategic focus. However, if this option is pursued, Honda will need to raise capital in the form of equity as well debt in a suitable combination to fund this capital expenditure. 0 Honda is already expanding their U. S. production, today, 80% of the 1. 3 million cars Honda sells in North America are made at North American factories, and the parts in Hondas American cars increasingly come from local suppliers. Honda plans to increase its production from the current 1. 4 million units a year to 1. 62 million units within a year. This new growth should be put in areas where the cost of living is relatively low. This will ensure that Honda can pay workers fair wages for the area. Creating a loyalty to American made products is no t the only reason that Honda needs to expand its local production levels. Since over 70% of revenue for Honda is gained in America, it is important to make the vehicles where or close to where they are sold. With the ever-changing exchange rate between the United States and Japan, local production gives Honda stability. This helps Honda to be much more resistant to exchange fluctuations, says Satoshi Aoki, senior managing director at Honda in To Conclusion Unlike other global businesses that see size as the key to survival, Honda embraces the ideal that even as Honda operations expand around the globe, they want to maintain the qualities of a small company that is close to its customers. The ability to produce a worthwhile product with the speed, flexibility and efficiency of a small company and the essential elements of a large company global reach and echnological strength, is what drives them into the future and will continue to help them strategize their global efforts. Hondas global strategy is very simple put cost-effective plants in areas that best meet the needs of local customers. They integrate plants into markets with a Small Born manufacturing strategy, starting small and then expanding as local demand increases. This thinking has helped them establish more than 100 factories in 33 countries, an approach that allows Honda to achieve efficiency and profitability, even at low production volumes.