This document provides an overview of Honda Ltd., including its history, current operations, and strategic management approach. It discusses how Honda was founded in 1948 and is now a global company with over 167,000 employees operating in motorcycle, automobile, financial services, and power product businesses. The document also outlines Honda's five levels of strategy, from enterprise strategy focusing on its mission and vision, to corporate, business unit, and individual employee strategies. Key aspects of Honda's organizational culture and processes are explained, including respect for individuals, innovation management, and diversity in employee management.

1. Welcome to Honda Ltd.,
HCM International University
Strategic Management for Global
Group 8

2. Outline
• Introduction
• Five levels of strategy
• Decision maker
• The six external environments
• Global challenges
• Analyze the firm’s structure
• Organizational process
• Social responsibility
• Managing people
• Evaluations and controls
• Conclusion
• References

3. The Power of Dream
• Soichiro Honda (1906-1992) was
Japanese engineer and industrialist,
and founder of Honda Co.,Ltd.
• In 1937, Honda began producing
piston rings-used in motorcycles.
• In 1948, Honda stared producing
complete motorcycles.
• In 1949, Takeo Fujisawa joined the
Honda ( one of the most person lead
to Honda’s success )
• In 1968, Launching the Honda 1300-
Honda’s first small car.

4. Describe the firm today
• 4 main segments following:
– Motorcycle business
– Automobile business
– Financial service business
– Power product and other business
• More than 167.231 associates in the
Global scale.
• Stand the largest motorcycle
manufacturer and the 7th automobile
manufacturer in the world.
• On the march, 2008, Honda was
ranked as the best car in US by
Consumer Reports.

6. The five levels of strategy

7. Enterprise Strategy
• The Mission Statement of Honda is try to
maintain a global point of view, with the
dedication to supply the highest quality
products at a reasonable price for worldwide
customer satisfaction. Moreover, taking new
challenges with the pursuit of Initiative,
Technology and Quality, Honda is pursuing
their 2010 Vision: Striving to be a company
society wants to exist through creating new
value, globalization, and commitment for the
future.

8. Corporate Strategy
• Automobile Industry
– Superior Fuel economy
– Optimum safety
– Driving Pleasure
– World wide
• Motorcycle Industry
– Build product close to customer
– 28 plant, 21 countries, R&D 6 countries
• Power Business
– First business of Honda
– Expanded
– 11 plant, 9 countries, sold 156 countries, used by 5.5M people
– ASIMO
– Honda jet

9. Business Strategy
• R&D System
– Approach:
• Durability
• Reliability
• Focus Foundation
– Dimensions:
• Economical
• Environmental
• Social Issues

10. Business Strategy
• Globalization Characteristic

11. Business Strategy
• “The Joy of Selling” - Dealership
– Create inspiring experience for its customers
– Response to changing value
– Increasingly complicated needs of customers
– => Improve customer relations
• Friendly and attentive sales
• Responsive service support
• Thorough maintenance and repair
– => “Life with Honda”

12. Operational Strategy
• Divide 6 administrative regional group
• Pursue independence of local management
and sales operations
• Operate under conduct guidelines => keep
evaluating and risk managing
• High level of transparency

13. Individual Strategy
• “The Three Joy”
– The Joy of buying
– The Joy of Selling
• Not only relationship
• But feel pride by positive relationship
– The Joy of Producing
• Pride in exceeding the customer expectation

14. Organizational Process
– Organization culture
– Innovation Management

15. Organization culture
Respects for the Individual and The Three Joys

16. Organization culture
• “Respects for the Individual”
• “The Three Joys”

17. “Respects for the Individual”
• Initiative: Encouraging creative thinking
• Equality: Fairly treating.
• Trust: Good relationship between
employees

18. “The Three Joys”
• The Joy of Buying
• The Joy of Selling
• The Joy of Producing

19. Innovation Management
• Developing new technologies of
manufacturing system
• Building environmentally responsible and
people-friendly plants.

20. Managing People

21. Managing people
• Environmental training
• Ensuring diversity in employment

22. Environmental training
• Part of Honda’s training curriculum
• Deepen associates’ understanding about Honda’s policy toward
environmental
• Training programs are continuously provided to associates
• Promote activities focusing on energy and resource conservation and
recycling

23. Ensuring diversity in employment
• Provide human rights education, based on Honda’s principal of respect
for individual
• Opendoor employment policy, hiring based on individual merit
• Employ people with disabilities
• Reemploy retirees, create opportunities for those who reach the
retirement age of 60