...Abstract: The case study focuses on the HR problems faced by Honda Motor Cycle & Scooters India (HMSI). The case discusses the various reasons which led to the dispute between the management and employees of HMSI. It elaborates the incidents, which led to the strike at the company that resulted in HMSI workers being severely beaten up by the police. Labour strife and the management's inability to deal with it effectively had resulted in huge losses for the company due to the fall in the production level at the plant. In addition to this, the company also received a lot of negative publicity as newspapers and TV channels gave wide coverage to the violence of the action. The case highlights the growing number of instances of clashes between the employees and the management of companies in India, which is often guided by external parties such as trade unions and political parties. Issues: » Understand the factors that lead to labour unrest at a factory and the impact of such incidents on the employees and the company. » Study HR policies adopted by organizations to prevent labour unrest at the workplace. » Examine top management's role in maintaining a peaceful working environment. » Analyse the role of external parties such as trade unions; political parties etc., in disturbing the working environment in a company Key Words: Labour unrest, Strike, Collective bargaining, Industrial relations, Industrial dispute, labour laws, Japanese management, Go-slow, Lock-out, Labour...
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...Honda in Europe( INTRODUCTION The Honda Motor Company first entered the European market in the early 1960s through the sale of its motorcycles. The company’s motor vehicles were introduced into Europe at a much later date. Honda’s motor vehicle sales in Europe have been relatively poor, especially in the previous five years. Despite its huge success in the North American market, Honda is struggling to gain a significant foothold in the European market. Honda executives wonder why their global strategy is sputtering. Is global strategy just a pipedream, or is something wrong with Honda's European strategy? History of Honda In 1946 Souichiro Honda founded the Honda Technology Institute. The company started as a motorcycle producer and by the 1950s had become extremely successful in Japan. In 1956, Honda entered the US market and was able to position itself effectively, selling small sized motorcycles. In the early 1960s, the company commenced automobile manufacturing and participated in Formula-1 racing (F-1) to assist its technology development. Thanks mainly to its F-1 efforts, Honda became recognized, not only in Japan but in the rest of the world as well, as a technological savvy company. Up to the early 1990s the company had experienced serious organizational mismanagement resulting from tension between the technology side and the marketing-sales side. The situation became so dire, that the technology biased president and founder, Souichiro Honda, was...
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...Honda workshop handout (Honda B) Extract taken from pages 84 – 89 of The Honda Effect. By: Pascale, Richard T. California Management Review. Summer96, Vol. 38 Issue 4, p80-91. 12p. Abstract: The article presents an excerpt of "Perspectives on Strategy: The Real Story Behind Honda's Success," by Richard T. Pascale, originally published in the Spring 1984 issue of "California Management Review". Copied under the terms of the Copyright Licensing Agency's (CLA) Higher Education licence, for students registered on UMSD7T-15-3 - Strategic management (business, international and management); UMSD7U-15-3 - Strategic management (accounting, economics and finance); and UMSDDJ-15-3 - Strategic management (marketing, events and tourism). Any account of Honda's successes must grasp at the outset the unusual character of its founder, Sochiro Honda, and his partner, Takeo Fujisawa. Honda was an inventive genius with a large ego and mercurial temperament, given to bouts of "philandering" (to use his expression).[ 8] Postwar Japan was in desperate need of transportation. Motorcycle manufacturers proliferated, producing clip-on engines that converted bicycles into make-shift "mopeds." Honda was among these, but it was not until he teamed up with Fujisawa in 1949 that the elements of a successful enterprise began to take shape. Fujisawa provided money as well as financial and marketing strengths. In 1950, their first D-type motorcycle was introduced. They were, at that juncture, participating...
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...E-Business Group Final Presentation and Project Depth Analysis AirBnB Tuesday Session-16h30/19h30 Agbaba Felipa- Bal Laura- B00538278 Castaneda Pablo- B00681481 Gillet Clara- B00537943 Hourlier Giovanni- Rimoux Tess- SUMMARY 1. Size and importance of the market globally, in Europe and (if relevant) in France 2. How the sector has traditionally worked 3. The effect of the Internet on the sector 4. Who the major global players are (then discuss one of the major global players as a more detailed example) 5. E-business models being used by the major player you chose in part #4 (including analysis of revenues and costs involved; you can use the business model canvas as a guide) 6. Consumer reaction to e-business in the sector (not just the chosen company, but the sector as a whole) 7. Future development of the sector driven by e-business (the sector as a whole) 1. Size and importance of the market globally, in Europe and (if relevant) in France. Tourism is one of the most dynamic and resilient economic sectors. With international globalization tourists’ arrivals are reaching one billion each year and growth only expected to increase. Opportunities in the tourism industry are endless. Europe is the world’s most visited regional destination, an increase of 5% in international tourist arrivals has been noticed. It’s the highest increase across all regions and a notable result for a rather mature region. In France tourism is a major industry, the...
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...Hero Honda Environmental Analysis Summary of the Hero Honda’s Environmental Analysis, Industry and Competitors. External Environmental Analysis Political: The United Progressive Alliance (UPA) lead by the Indian National Congress (Congress) was re-elected to a second five year term in 2009. The present political scene in India is quite exceptional due to the relatively strong position of the ruling coalition. Economic: India Ranks 11th (nominal) / 4th (PPP) has GDP growth 8.8% (2010, Q1), Inflation (CPI) 8.5% (August 2010) in spite of Global Meltdown and Population below poverty line is deceased to 37% (2010). Socio-cultural: Indians are religion, caste, family centric. Women work in companies but in day shifts only in big cities. Entrepreneurial trait in India is on a rise. Technological: Modern technologies in transport, communication, electricity, infrastructure, quality are available. A very favorable technological scenario. Environmental (Demographic): Population: 1,180,166,000(2010), Age structure: 15-64 years is 63.6% (male 381,446,079/female 359,802,209) (2009). India's per capita income (nominal) is $1016, ranked 142th in the world Wealth distribution in India is fairly uneven with top 10% of income groups earning 33% of the income. Legal: It takes 35 days to start a business in India. It has Quasi-federal, but unified judiciary. Taxation laws are very stringent and Corruption is also very much prevalent. Political Economic Socio-cultural Technological ...
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...Case Study 6 1. What are the motive of Honda to enter the western market? What were the opportunities and threats for this company? Opportunities One of the main reasons as to why Honda came to the Western market was because they were 2 different markets that despite both having customers willing to buy motorcycles had different characteristic when it came to the product. In the Eastern market the motorcycles where smaller and a cheaper way of transportation but in the Western Market motorcycles where more brand image and style. This differentiation of these markets led the way for Honda to enter a market where there weren’t many cheap motorcycles and exploit it. Threats Regarding the threats. Honda didn’t have much or any at all. In a way it could be said that the competition was the threat but there is no evidence of that in the case, they sound more like little inconveniences that were found on the road 2. How will you describe the operating strategy of Honda in western countries? Explain Why. As the tittle of the case suggests, their strategy was “genius” and it consisted in 3 solid steps 1. They basically changed what the customer was looking for, they changed what the customer wanted and convinced them that cheaper motorcycles were the way to go and attracted new customers through marketing of their product e.g. Inexpensive, reliable and easy to use. In order to accommodate all this demand, they had to build several dealerships throughout the country...
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...Strategic Management Case Study – Reconciling Managerial Dichotomies, Honda Motors in De Wit & Meyer Company Overview: Honda Motor Company was established in 1948 in Japan, on the backdrop of 1 million (Yen) and 34 employees. Over the years the company has grown to become the world's largest engine, motorcycle and automobile manufacturers, with more than 178000 employees and stock holder equity of 4,544265 million Yen (Annual Report, 2008). Honda is the 5th largest automobile manufacturer in the world. Moreover, it recently surpassed Chrysler as the 4th largest automaker in the US. It is the 2nd largest Japanese automaker, behind Toyota and ahead of Nissan (Just Auto, 2008). In the early years, the Company was focused in manufacturing locally and serving its domestic market, after which it began exporting its products internationally. In 1982, it became the first Japanese automaker to setup a plant outside its domestic boundaries (Ohio, USA). Now it has established plants all over the world, covering bases such as North America, South America, Europe and Asia. In terms of Japanese automakers, it has the largest share of plants as a ratio of total business outside its domestic boundaries (Dicken, 2007). North America, with Unit Sales of 1850 (thousands) is the largest Market of the company, noted for the year ended 31 March 2008. In 1963, the company set up its first international motorcycles production plant, in Belgium. Honda currently produces motorcycles...
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...Melanie Penaloza Dr. Nathan Himelstein BUS 211 Consumer Behavior at Scholfield Honda The top influences impacting a consumer’s decision to buy a car from Scholfield Honda is social influence and family influence. In the United State, where we drive pretty much everywhere, your car is the first contact of the world. When you look at someone’s car, you might get an idea of their politics, bank account, occupation, education, musical taste, and favorite weekend activity and that is how social influence works. Group membership influence an individual consumer’s purchase and behavior. Every group establishes certain norms of behavior which are the values, attitudes, and behaviors a group deems appropriate for its members. Also difference in group status and roles can affect the buying behavior. In social influences we also study the reference group and the social classes which has an influence impact in a consumer’s decision to buy a care but the most and principal influences to go and buy a car from Scholfield Honda is the family influence. Vinnie Koc, a sales consultant at Scholfield Honda, relies more on his experience than the data to sell cars. “The vehicle pretty much sells itself,” says Vinnie. “Most of my customers are previous owners or someone in the family owns a Honda that wants them to buy a Honda”. If I am going to purchase a car, I will see the sizes of the car, the color, the benefit that the car has, an inexpensive car, one that can satisfy my needs and...
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...suffers ‐ because they are culture‐bound, exploitative, and would be resisted by trades unions. Japanese practice has been interpreted as classic “Theory X” management. On the other hand, Japanese management systems are said to offer Western production workers new opportunities for teamwork, self‐expression and workplace democracy which should be grasped eagerly ‐ here Japan is interpreted as classic “Theory Y” management. The characteristic Western “either/or” analytical approach may have set up a false dichotomy. Adler’s (1993) study of the Toyota/GM joint venture NUMMI, in California, revealed that rigid management structures were combined with opportunities for worker participation in the “learning bureaucracy”. Mair’s (1994a) study of Honda in Ohio showed how workers participated but in a way that was strictly channelled, and that the “single status” system both provided a degree of democracy and equality and permitted authority systems to function more effectively. Innovative management appeared to have reconciled the dichotomies that academic observers continued to debate. Progress in understanding the Japanese multinationals has been further complicated by two other considerations. First, Japanese firms appear to have adapted their management systems to their new local environments in a process of “hybridization”. The questions become which elements of the model are retained and...
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...on. mers had an i initial prefer rence to pur rchase from them, these U.S. manuf facturers had been dislod d dged by Jap panese competitors and lost position despite tec n chnological s shifts that could have b been emulate as ed competition intens sified. Th Japanese invasion of th world mo he he otorcycle mar rket was spea arheaded by the Honda M Motor Comp pany. Its foun nder, Soichiro Honda, a v visionary inv ventor and in ndustrialist, h had been inv volved periph herally in the automotive i e industry prio to World W II. Howev Japan’s po or War ver, ostwar devast tation result ted in the downsizing of Honda’s ambitions; m d motorcycles were a mor technolog re gically mana ageable and economically affordable product for the average Japanese. R y Reflecting Ho onda’s comm mitment to a technologic cally based s strategy, the Honda Technical Resea arch Institute was e establ lished in 194 This inst 46. titute, dedica ated to impro ovements in internal com mbustion eng gines, repres sented Hond da’s opening move in the motorcycle field. In 194 Honda in e 47, ntroduced its first s A-typ 2-stroke en pe, ngine. As of 1948, Ho s onda’s Japan nese competit tion consisted of 247 Japa d anese particip pants in a lo oosely define motorcycle industry. M ed Most competit tors operated in ill-equipp job shops adapting cl d ped s, lip-on engin for bicycle A few larg manufactu nes es. ger urers...
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...in Indonesia (study case Honda beat and Telkomsel) Nur Endah Lizarifin Customer Loyalty Customer loyalty is the result of consistently positive emotional experience, physical attributebased satisfaction and perceived value of an experience, which includes the product or services. Customers exhibit customer loyalty when they consistently purchase a certain product or brand over an extended period of time. As an example, many customers stick to a certain travel operator due to the positive experiences they have had with their products and services. Customer loyalty is the key objective of customer relationship management and describes the loyalty which is established between a customer and companies, persons, products of brands, the individual market segments should be targeted in terms of developing customer loyalty. Four different reasons for loyalty should be promote Psychological Customer might also developing a sense of loyalty to a certain person working for a company. People can build up a good relationship with a bank advisor they have known for several years and who has always fulfilled their expectations. The fact that people develop a sense of loyalty can be described as a psychological reason to stick to a specific product. Economic In business to business markets, it might also be possible that customer loyalty results from the fact that switching to another company would lead to the company facing economic disadvantages. In this case, loyalty is based on...
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...on. mers had an i initial prefer rence to pur rchase from them, these U.S. manuf facturers had been dislod d dged by Jap panese competitors and lost position despite tec n chnological s shifts that could have b been emulate as ed competition intens sified. Th Japanese invasion of th world mo he he otorcycle mar rket was spea arheaded by the Honda M Motor Comp pany. Its foun nder, Soichiro Honda, a v visionary inv ventor and in ndustrialist, h had been inv volved periph herally in the automotive i e industry prio to World W II. Howev Japan’s po or War ver, ostwar devast tation result ted in the downsizing of Honda’s ambitions; m d motorcycles were a mor technolog re gically mana ageable and economically affordable product for the average Japanese. R y Reflecting Ho onda’s comm mitment to a technologic cally based s strategy, the Honda Technical Resea arch Institute was e establ lished in 194 This inst 46. titute, dedica ated to impro ovements in internal com mbustion eng gines, repres sented Hond da’s opening move in the motorcycle field. In 194 Honda in e 47, ntroduced its first s A-typ 2-stroke en pe, ngine. As of 1948, Ho s onda’s Japan nese competit tion consisted of 247 Japa d anese particip pants in a lo oosely define motorcycle industry. M ed Most competit tors operated in ill-equipp job shops adapting cl...
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...[pic] CASE STUDY GROUP 1 ASSIGNMENT 1 CASE STUDY SUMMARY Kinetic Company was formed in 1972 by H.K Firodia then taken over by his son in Arun Firodia in 1985. Kinetic then merged with Honda to form Kinetic Honda Motor Ltd with stakes of 28.56% each concentrating on scooters and spare parts. Kinetic Honda Manufactured Scooters while Kinetic engineering manufactured mopeds. In the 80s Kinetic Honda had the largest market share of mopeds which dropped in the 90s by half to 22%. There was also competition in the two wheeler industry by Suzuki and hero Honda. This led to a further poor performance of Kinetic in the market. The poor performance was brought about by conflicts of interests between Honda and Kinetic; each wanting their brand promoted more than it was at the time. Honda also competed with Kinetic Honda through hero Honda in the larger two wheeler market. The poor performance of the scooter industry was leading to a diminishing market. Kinetic realized that their brand was slowly diminishing and decided to pull away from the merger; Honda shared the same sentiments and asked Kinetic to buy them off or vice versa. Firodia bought the 51% stake of Honda and gained full control of the Organization. The new company was called Kinetic motor Company; the company restructured and was able to implement decisions much better. There was better promotion and growth in sales and revenue of Mopeds and Scooters. In 2001...
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...“Creating Lean Suppliers” a Consider that the new corporate procurement strategy in support of your manufacturing business includes securing purchased critical parts and subassemblies from “lean” practicing suppliers. Your supply chain management in previous years has practiced the strategy of single sourcing as well as long-term partnering for critical purchased material. Prepare a list of bullets showing the advantages and disadvantages of staying with current suppliers (i.e. not switching) that currently do not have a “lean” in place and also define in the response your plan to achieve the new “lean” supplier requirement. I Advantage: * Better relationship – further involved in new production process * Better reputation (ethics) * Knowing the supplier better – its problems, cost-structure, and technology * Supplier may be more responsive * Creating “trust” II Disadvantage: * Cost of the BP team * Require extensive capital investment or extra personnel for suppliers * Time consuming (for the suppler to be lean) * Difficulty to change and sustain In order to achieve the new “lean” supplier requirement, I would want suppliers that have substantial responsibility during product development; the ability to accommodate and respond to the request of changes in product or manufacturing process; extensive capital investment or extra human resources. Also the suppliers that is reliable, and “self-reliant.” b Analyze Honda’s...
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...responsiveness to customers. A firm with a competitive advantage may experience higher profits than the average profit in the industry while competing for the same customers. In the case of Honda, this is true. Honda has many distinctive competencies based on its resource and capabilities that allow it to have a competitive advantage in the auto manufacturing industry. Three areas that give Honda a competitive advantage in the auto industry include Honda's engineering and design, research and development, and brand equity. In order to determine whether Honda's competitive advantage in these three areas is sustainable, we analyze and apply each one to the VRIO framework. Honda is unique in that its corporate structure is made of three companies. Honda Research and Development is in charge of research and development of innovative products for the company. Honda Motor produces, sells, and services the all Honda products. Honda Engineering develops manufacturing processes, systems and equipment used to build all Honda products. Honda's superior design capability has enabled it to build high-quality reliable products and has also added value to the Honda brand. Honda's efficient manufacturing processes have also kept production costs low relative to other automakers in the industry (Snipes 2008). In terms of value, Honda excels at using its engineering expertise and design skills to build reliable cars that simply work. This ability is quite valuable to the company and its industry. Although...
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