honda atlas cars
Post on 21-Apr-2015
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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 Alas 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 to seven 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.
We would like to thank our instructor Mr. Tariq Hamid for providing us knowledge and support to make this project, then our TA Miss Mehreen Rehmani who kept us motivated from time to time. We are also thankful to our friends who provided us support for many different obstacles we faced. We would also like to thank Mr. Sami Shafi "Senior Manager after sales division" for providing us very important information.
Company Background & MilestonesThe Honda Atlas Cars Pakistan Limited is a joint venture between two groups:
Honda Motor Company Ltd, Japan: Primarily known as the manufacturer ofautomobiles and motorcycles was created by Soichiro Honda. Honda Motor Company Limited is perhaps best known as an automaker. It is the third largest automaker in Japan but the company has its roots in motorcycles, and is the world's top motorcycle manufacturer. Its best market is in the United States, where the majority of its sales are generated. Honda's automobile product line accounts for approximately 90 percent of its sales, and includes well-known U.S. top-sellers such as the Accord, Legend, Civic, Prelude, and the luxury Acura. The Accord is the second most purchased car in the United States, although it actually ranks first on the country's list of most stolen (and thus, "in demand") vehicles. Honda also produces motorcycles such as the Super Cub, Foresight, and Shadow 750. Furthermore, the company's power products division makes other items that bolster annual sales, such as agricultural and industrial-use machinery, portable generators, outboard motors, and all-terrain vehicles.
Atlas Group, Pakistan: The Atlas group was founded by Mr. Yousaf Sherazi, aformer Income Tax official and journalist in 1962. The first company set by the Atlas Group was Sherazi Investments (Pvt) Limited and since then, there is no looking back. The East Pakistan tragedy, however, nearly crippled Sherazi but he never lost hope and went out forming numerous joint ventures with leading Japanese concerns like Honda. Atlas-Honda today is a name to reckon with in countrys engineering sector and associated with this just one name are hundreds of vendors. He holds stakes in insurance, financial services, information technology, leasing, warehouses, office equipment, motor cars and motorcycle-assembling units, besides running a renowned firm that manufactures batteries. Sherazi owns the Atlas Investment Bank too. The Federal Budget 2004-05 is perhaps the only budget in countrys history that has hit the very influential car manufacturers on the head, otherwise people like Yousaf Sherazi
have always managed to dictate terms where it matters. The Atlas Group owns no less than seven companies quoted on the stock exchanges of Pakistan. The groups assets are believed to have touched the Rs 15 billion mark and so have the sales. Below are the businesses under Atlas Group:
Honda Atlas Cars Pak Ltd was incorporated on November 1992 and a joint venture agreement was signed on August 1993. The ground breaking ceremony was held on 17th April, 1993 and within a record time of 11 months, construction and erection of machinery was completed. Official inauguration was done by President of Pakistan, Sardar Farooq Ahmad Khan Leghari. Mr.Kawamoto, President of Honda Motor Company Limited Japan was also present to grace the occasion. The company is listed on Karachi, Lahore and Islamabad Stock Exchanges on 14th July, 1994. Car bookings4
started at six dealerships in Karachi, Lahore and Islamabad. Since then the company has twenty one 3S (Sales, Service and Spare Parts) and thirty 2S (Service and Spare Parts) Pit stops network in all major cities of Pakistan. Since the commencement of production in 1994, the company has produced and sold more than 150,000 cars till Oct, 2008. All dealerships are constructed in accordance with the standards defined by Honda World over. Mainly parts are imported from Japan while some percentage of local parts conforms to the government's policy. Local vendors are continuously patronized to develop parts locally. The quality of local parts is thoroughly checked to meet stringent international standards. The company also regularly conducts Service Campaigns, to facilitate customer's need for service. This has given the customers absolute confidence in the vehicles, clearly evident from the ever increasing sale volumes. It is the constant endeavor of Honda Atlas Cars to achieve highest customer satisfaction. Honda Atlas Cars is committed to meet customer expectations, and to provide good value for money. Currently they are offering four different vehicles; each differentiates itself in its class.
PART 1 THE BUSINESS
Actual Vision Statement6
Focusing on satisfaction (customers, associates and shareholders) with challenging spirit and flexibility, we are dedicated to supplying latest generation cars with advanced technology, greater fuel efficiency and competitive prices, along with friendly and efficient after sales back up, maintaining quality as core of all activities.
Proposed Vision & Mission Statement
Vision Statement:"Our vision is to become the market leader and to earn respect by continuous improvement driven by the integrity, teamwork, and innovation of our people"
Mission Statement:"We focus on supplying the latest generation cars equipped with advanced technology, and competitive prices, along with efficient after sales back up to the educated and elegant class of Pakistan. We will meet customer expectations of highest quality with the help of our motivated staff while keeping in mind our social and environmental responsibilities. We are committed to act in the highest ethical manner and respect the rights and dignity of others. Satisfaction of our shareholders is also one of our main objectives which will be fulfilled by financial stability" Customers Products and services Markets Technology Concern for survival, growth, and profitability Philosophy Concern for public image Concern for employees
Description of Business
The Company's principal activities are to manufacture and sell passenger cars and spare parts. First car manufactured came out of the manufacturing plant in 1994. Since then company has made its unique image and its target market. The manufacturing plant is located near Manga Mandi on Multan road which is 42 km from Lahore. Basically the company only manufactures cars at its plant. Parts are mostly imported from Honda Motor Co Japan (which is partner in Honda Atlas Cars) and some are locally manufactured or bought from local manufacturers. The technology and designs are also imported from the same Japanese company. After the manufacturing these cars are sold through a sophisticated dealership network, which stretches throughout the country. These dealerships are 3s and 2s; the staff working in dealerships is first trained by the company. All kind of services are provided by these dealers.
This map shows the dealership network of Honda Atlas cars. Mainly all these dealerships are located in Punjab, which is not going in the favor of the company. A
major area on map does not show any dealer. Vehicles produced by the company have made their own market.
There are 4 different types of vehicles which are being sold by the company among which there is one SUV. Two from them are being manufactured here in Pakistan and other two are being imported directly from Japan. All four products are described as follows:
Honda city is midsized family sedan with a 1300cc engine. It is basically being targeted to the middle class who use it as their first car and indirectly it is also targeted to upper middle and upper class that use this vehicle as their 2nd or 3rd car. Recommend to people who want simple, economical and reliable transportation. It is more popular in female drivers. This car is manufactured here in Pakistan. Some strengths of this car as follows: Very elegantly designed Smaller engine resulting in more fuel efficiency Spacious inside room Class leader in Pakistani market
Civic is also manufactured here in Pakistan. This is also a midsized family sedan vary spacious. It is targeted to the upper middle cl