honda's final presentation

8/8/2019 Honda's Final Presentation

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HISTORY

Honda's founder, Soichiro had a great interest

in automobiles.

In 1937, Honda began producing piston rings-

used in motorcycles. In 1948, Honda started producing complete

motorcycle

In 1968, launching the Honda 1300-Hondasfirst small car.


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Contd. 4 main segments following

Motorcycle business

Automobile business

Financial service business

Power product and other business

Stand the largest motorcycle manufacturer andthe 7th automobile manufacturer in the world.

In 2007 recorded a total revenue of US$94.24billion, while employing more than 160,000peoples.


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Hondas Success in North America

1975 Honda began its R & D operation in US.

1979 Begins production ofCR250M Elsinoremotorcycle in Marysville, Ohio

1982 Become first Japanese automaker to built car inAmerica.

1984 Introduce the 1984 Crx-HF, first care to achievea EPA fuel economy.

1986 Launched Acura, first luxury nameplates from a

Japanese automaker 1989 Accord is the first vehicle from international

automaker to earn the title of Americas best sellilngAutomobile


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Contd..

2001 C

ivicC

oup is the first compact car inAmerica to earn a 5-star safety rating from NHTSA

2002 Civic Hybrid, to apply gassoline-electric

powertrain technology

Honda FCX, become worlds first fuel cell vehicle

2008 - Civic GX is named "America's Greenest Car

On the march, 2008, ranked as the best car in US

by consumer reports.

2009 launch of affordable gas-electrics hybrid

car in America.


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Americanization of Honda

Hondas Investment in America 1979 Honda announced plans to construct an automobile

assembly.

In November 1982, the first US-built Honda was assembled.

By 1991 Honda invested $1.13 billion in three North Americaauto assembly plants

Additional $500 million in an engine plant in Ohio that suppliesits Ohio assembly plants.

Purchased an existing automotive test centeradjacent to theassembly plants

Honda has more than $7 billion in capital investment in Ohio,

2009 Have donated more than $28 million dollars to local United Way

agencies, 2009


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Contd..

Honda: Made in the USA

Before the plant was finished in 1979 a small group ofJapanese was sent to select workers.

Three interviews were held for each worker The corporate culture was to be neither Japanese nor

American.

Use of the word "associate" to describe all employees

Inexperienced workers were sought. sent to Japan for exposure to the Honda philosophy

Honda undertook expensive investments in people.


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Contd..

Honda's "self-reliance" in the US

Flexible or lean manufacturing was a concept

used

Focus was on Just in Time basis

Continual improvement in striving to eliminate

waste, facilitated by tracking and analyzing

production data combine its company culture with the local

culture

Many of its supplier close to its Ohio complex


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Contd..

The Economic Impact

employs 10,000 workers in its central Ohio plants

pumps a payroll of $7.3 million per week into thelocal economy.

Produce complementary investments by many of

its Japanese suppliers of component parts

More than 367,000 private sector jobs, and $17billion in annual wages and salaries, are generated

as a result of Hondas total U.S. operations, 2007.


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What makes honda to invest in N.A.?

To circumvent the threat of protectionist trade

legislation.

The sharp rise in the value of Japanese Yen

against the US $.

Being a latecomer to automobile production

in japan, honda had always struggle to make

profit in home country.

To make major inroads in the U.S.A. market

ahead's of it Japanese rivals.


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How Honda Localizes its global

strategy?1. Trade frictions between advanced nations

2. Economic problems must be discuss at the global level, notat the level or countries or even regions.

3. It is critical to build interdependent relationships among

nations, and in doing so, restore trust.4. Corporations from the advanced nations can contribute

through investment and technology transfer1st countries involved must clearly understand the goals to be attained

thorough mutual cooperation

2nd

each countrys role must be recognized and agreed upon


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Contd

1. Localization of Production :1. A corporation does not merely makes profits by exporting

completed products: it carries out production activities wheremajor market exist, thereby contributing to the development ofthe host nation and achieving mutual prosperity

2. This is the best way to gain acceptance of both the products and

the corporation3. There are two ways to make local production activity mosteffective

1. Increase ratio of local content

2. Increase local production. This also increase responsibilityand pride in the employees

2. Localization of Management:1. It goes beyond transferring knowledge about management

systems operations. It requires understanding the corporatephilosophy

2. It also requires creating a sense of unity between managementand labor so that everyone is working toward a common goal


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How Honda Localizes its global

strategy

3 Localization of Products:

Developing, manufacturing and marketing theproducts best suited to the actual andpotentialneeds of the customer and to the social and

economic conditions of the marketplace To localize products, corporations must invest in R&D

of products and on increasing production efficiency

4 Localization of Profits:

1. Reinvesting as much of the profits as possible in the

local market. A company investing abroad mustregard it self as a local company and endeavor toprosper together with the host community.


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Hondas Policies

Hondas three most important policies:1. Establish a good human relations between the management and the

workforce

2. Maintain and promote harmony with the local community. Animportant factor in producing high quality goods is securing high

quality labor3. Give top priority to maintaining high quality standards in Hondas

products. Quality level is determined primarily by the actual designof the product itself, not by quality control in the productionprocess.

o Hondas strategies and policies are aimed at achievingmaximum customer satisfaction

o It is essential for a corporation to interpret the wordcustomer in a broader sense to cover the whole societyin which it operates.

honda's final presentation

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