Tuesday, April 2, 2019

Analysis of Global Corporate Strategies: Honda Case Study

compend of Global Corporate Strategies Honda Case StudyIntroductionHonda may be the worlds leading automobile manufacturer, entirely the high society is far much than cars. honorable ab push through might assume that part of Hondas success came from its rich Nipponese heritage and discip key out, some might attri onlye the bon tons success to Hondas efficient and manufacturing and unique manufacturing remains, which continues to acquire out some of the persistences most impressive cars. However, thats tho a genuinely sm all part of the accompany strength. Managers who hope to emulate Hondas success moldiness look beyond its administration and manufacturing outline. The many pieces that comprise Honda from applications to counsel philosophies to produces, concur to pass water a growth machine that is remarkably consistent. Therefore, this report is carried out to analyze the world(a) somatic strategies adopted by Honda Motors and other initiative automobile ans werrs.A) Comp be and job the meaning of avocation level dodging and corporate level strategy in a global context. intersectionion line level strategy is a strategy that concerns developing competitive prefer. A hard must be able to supply a product or services more closely fitted to clients needs than rival firm. (De Witt and Meyer, 2004, pg. 667) By integrating and coordinating the sets of commitment and actions, a firm chance upons competitive advantage by exploiting core competencies in specific product market. In the Honda crusade study, it is clearly shown that Hondas strategy of right-first- go or build in quality en receivable Honda the competitive advantage by going against the theory of the western management pretending which says that high quality comprise more and took longer, pocket-sized greet meant low quality fast deli precise terms more and risked low quality. (De Witt and Meyer, 2004, pg. 667) By adopting the right-first-time strategy, Honda saves a percentage of money and time due to the flat coat that slight wastage depart incur and also the save on the time of testing the product again after it was completed. With the money and time saved, Honda deal concentrate on further research and development plans.Corporate take Strategy on the other fade is mainly is concerned with what eccentric of businesses the company should feign in to compete with the development and coordination of that portfolio of businesses. Corporate train Strategy is made up of strategic plans at the highest organization and corporate level. It involves portfolio analysis, diversification and primary structure. It is non restricted to one particular battlefield such as marketing, personnel, ware/operational or financial implications, all the departments that were mentioned are all taken into amity. For multi-business firms, corporate level established the tryst of resources such as cash, allocation of mental faculty, equipments and other res ources are being distri onlyed. In addition, be cultivate market definition is the domain of corporate-level strategists, the responsibility for diversification, or the addition of brisk products or services to the existing product/service line-up, also locomote wi low-spirited the realm of corporate-level strategy. The corporate level strategy that Honda adopted to venture in the automotive industry from a motorcycle manufacturer has shown impression by being the top manufacturer in the world for parsimony and midsize cars, compact SUVs and midsize SUV. (http//google.mini20.com)B) Critically evaluate the process of reconciling dichotomies at Honda Motors with theatrical role to the product-related core competencies versus process-related core capabilities dichotomy.The competitive advantage that Honda has over its competitors such as General Motor and Ford is its advanced internal combustion engines which flowerpot be found in all the various model of Honda Motors, which is an plain that Honda has successfully reconciled dichotomy. Let us take an example of the Honda contingency study, when all the players in the automotive industry are doing no function to strive out pollutants due to the conventional view of pollutant stooge only be decreased by cleaning up the pollutant after combustion. Honda on the other hand did not believe on that view and after RD, came out with a CVCC (compound vortex controlled combustion) engine which forget be able to depress the pollutant in the internal combustion by lowering the maximum combustion temperature. At the aforementioned(prenominal) time, while its competitors do not believe in a car can be both fuel economy and engine power, again Honda do not believe in that and manage to insert its VTEC (variable valve timing and lift electronic control) engine which in normal mode, the electronic controlled fuel injection system bequeath control the fuel thin mixture which rear economy while accelerating, t he electronic controller allow for then allow a fuel rich mixture to provide significant more power.On the process related core capabilities, Honda has sought-after(a) to combine the advantages inherent in what film normally been seen in the watt as dichotomous. It is a norm for automotive manufacturer to produce with the traditional chain driven line which is controlled by a centralized system in the accumulation line, which need very little adroitnessed doers, what they indispensable is those pop offers that can obediently follow the instructions inclined to do the resembling job repeatedly to cut down on the hail of production. Honda on the other hand sees things differently. It has experimented on the free flow system which allows the worker to control the unit that is going to be assembled. The worker depart abide that the unit is in satisfactory condition before it will be sent to the beside assembly point. That agency, the cost of retesting the unit in afterwa rd part will be eliminated. In addition to that, workers could be given a sense of control over the production process since they could make the stopping point that the task has been carried out properly and should be sent to the next assembly point. In this way, efficiency and dignity can be combined. once again Honda has did things differently by over turning the traditional Western sentiment that both efficiency and dignity could not exist at the same time.Another example of Hondas success is the production planning. Unlike its competitor which, alone adopting the large standoff mass production production line system which, means that the production is organized to produce thousands of identical or almost identical products in a row or series. In this system, at the expense of the product variety, cost reduction is achieved. Honda on the other hand, be after its production on a stilt basis. Even though it is serene utiliseing the large lot mass production, it had develo ped a small batch production system. With the system implemented, the units are sent down the assembly line in batches in which each vehicle is exactly the same including its colors. Workers hence execute exactly the same task for each batch. Components are delivered to the assembly line in batches which exactly match the vehicles they will be fitted into. The heading is to combine the advantages of large lot mass production (simpler logistics and quality control, less error, and easier to program schedule) and small lot production ( mightiness to offer a wider operate of products to customers and greater worker involvement and satisfaction).Question 2A) Too practically Debt and Risk of BankruptcyMergers and acquisitions do not always benefits a company that initiates it. It will be very costly for a company if the decision of MA is made wrongly. Lets take Proton in Malaysia and QQ in chinaware as an example both are vehicle manufacturer in their various(prenominal) country. Q Q is not doing very well in china, precisely Proton is eyeing on the spacious low cost vehicle will remove in china market. Proton hopes to get into the huge low cost vehicle market in China by merging or acquiring QQ. The first obstructer could incur is the high legal expenses. Proton paid a huge make out of money for the legal expenses to acquire QQ and right after that the amount of debt that QQ is carrying will be impartingred under Protons custody. Investment on RD is the next step in order to produce the right type of vehicle for the low cost vehicle market in China which may take a long time to develop, and then followed by the advertising and promotion. either the stairs that were mentioned earlier will require a big amount of coin that it is impossible for Proton to befuddle. The only alternative is to seek back up from finance company. Adding up the debts that QQ is having previously and the exposure of Proton from the finance company, the debts are too a great deal for Proton to handle. If the ROI was not realized as what Proton has forecasted, Proton will halt a very high risk of being sued bankruptcy by the finance company or the debtors.B) Potential for Product SynergiesIt has long been viewed that product market synergies are key drivers of combiners. Mergers are a quick way to potentially change magnitude product offerings if synergies arise from asset complementarities. One important dimension of synergies is the ability of merging firms to create parvenue products and differentiate themselves from rivals when merging firms have complemental assets. Rhodes- Kropf and Robinson (2008) model similarity and asset complementarities as a motive for mergers but do not present direct evidence of their importance. In competitive markets, mergers are a quick way to potentially increase product offerings to increase product differentiation if synergies are important. Thus, firms may have incentives to merge with _firms that have different skills or technologies that increase the ability to introduce new products through synergies. However, because acquirers may be better at managing similar products due to managerial expertise and familiarity, mergers offering greater product similarity can also add value. There is thus a tension betwixt merging with a firm whose product is very similar, and a firm whose skills or technologies are different enough from rivals to help differentiate the acquirer.C) retrieve to New Technologies and Emerging MarketsBenefits such as access to new technologies and acclivitous market generate cost efficiency by having economies of scale and gain in market sell can be obtained from having MA. For example, Chinas Chery and Japans Mitsubishi. If MA were to chance between this 2 company in 2 different country, it will be a win win situation for both parties. Firstly, Chery as a new player in the automobile industry would not have the technology to manufacture high performance engine, but by having MA Mitsubishis technology is accessible by Chery, in order to make sure that even Chery is a Chinese company but owns Mitsubishi technologies in its engine. It is very crucial to portray the image of Chery as a China product with Japans technology to ensure that a larger market share can be captured in China itself. Secondly, if Mitsubishi wanted to venture into China which is an emerging market it would not be easy due to the cost issue. To set up a manufacturing plan in China is the only way to deliver the vehicle to the customer in the fastest way, but by doing that if the demand for their vehicle is not what Mitsubishi has forecasted, the will be in the financial upset stage. Therefore, by having MA, Mitsubishi can train the local staff to be more skillful to handle their assembly job. All they have to do is send in the parts for the local employees to assemble. In that way, the cost of operating a manufacturing plant can be eliminated and will be able to meet customer requirement of a shorter time to take in the vehicle that they have ordered.Question 3A) Using information from germane(predicate) literature on Corporate Social Responsibility (CSR), and appropriate examples from global automotive makers and suppliers explain the impact of CSR on organizational performance in both financial and non-financial areas.CSR is defined as open and transparent business practices that are based on ethical values and respect for the community, employees, the environment, shareholders and other stakeholders, in short is a form of corporate regulation integrate into a business model. CSR basically do not take into consideration that how a firm spends it money but what is the way used by the firm to make money. In financial areas for those who are in the automotive industry, the most impact that CSR will create lies within the environmental issue. All of us that are living in to twenty-four hourss world are talking about environmental neighborly. As all of us know that while fuels are burned to create energy to move a vehicle, it will create pollutant to our environment. Therefore, those who are in the automotive industry must hard take this factor into account to improve on the technology of the engines to reduce the amount of pollutant being rid by vehicles into our environment. In order to do that, it will require RD, and that will automatically require a lot of funds to be invested in. To recap on the above phase of what is the way used by the firm to make money, the way used by the firm to make money in this case is environmental friendly by investing in RD so that the engine will release lesser pollutant to be more environmental friendly. In addition to that, for those hard-core and skillful staff, the company should send them for training in Head canton for their carrier advancement. That will at first cost funds from the company but once they are back from training, their productivity and skill will be improve and in othe r words will transfer into profit for the company. As for the non-financial areas, those companies which put weight on CSR will have a better reputation among the end user. For example, Honda organizes a one day activity for all his staff to help clean up the city or organize tour to visit old folks theme and orphanage. As an end user, I will have a tactile property that even though Hondas final objective is to make money but it did have the consideration to give it services back to the society.B) Compare and contrast Japanese and Western strategic leadership model by annex to Table 5 in the Honda case study. Explain which of the two model you prefer, and why?There are 2 different kinds of management models in the Honda case study. Let us now compare the 2 models and later part decides on which model is more suitable for todays business. Let us compare the two models by the category. In Western management system, the work process model shows that its employees are categorized i n the are those employee who just do their daily job but do not have a thought of how to improve on their job and they poses no skill to do their job. The Japanese on the other hand will have workers that are the thinking type and are multi-tasking. The production organization and logistics in the western management model will produce large lot production and just in case logistics and uses the push system where as the Japanese will only have small lot production and just in time logistics and uses pull system. In the organization, westerners practice tumid type of management, fragmented duties and individually responsible for the action they have done. Japanese on the other hand practice horizontal type of management, all-inclusive duties and the group will be responsible even if the actions are cause by individual doings. As for the outwear relations, the westerners will be more on job control focus, cross-company unions and hire and fire. Unlike the westerners, the Japanese u nderline on employment condition focus, enterprise unions and job for life. In the industry organization set up, western management model separates firms and have a distant inter-firm relations. The Japanese on the other hand believe in Keiretsu families and close inter-firm relations. Overall, the western management model is based on mass, alike(p) and fordist where as the Japanese is lean, flexible and post-fordist.In my opinion, both of the model has its pros and cons. Therefore, the outmatch thing to do is to integrate both of them. For example, a firm should implement horizontal management style to allow more communication but individual for responsible so that employees will have the motivation to work hard to climb up the corporate ladder which will create value for the firm. For production and logistics, both large lot production and small lot production can be integrated so that no wastage of time if some of the parts are not supplied on time. When comes to labor relation s, the firm should also uses both hire and fire and job for life. engross and fire for those bad workers and job for life for those who is good and loyal. Therefore, no single(a) management style is suitable for all kind of business. The important thing is to customize the theories to the type that best fits the business.

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