Thursday, April 4, 2019
The Hondas Internationalization Process Business Essay
The Hondas Internationalization Process championship EssayHonda Motor Company, Ltd is the close to prominent automobile company of japan. It stepped into the Japanese securities industry in the 1949. It has the greatest market sh are in the spherical market. It is the major manufacturer of motorcycles. The companys major branch is headquartered in capital of Japan .In the beginning, the company was just a manufacturer of motor bikes but started to sell the automobiles and lawn mowers after in all the competitors. The achievement of the company is because of their strategies the company make outs the product for the markets where they are demanded. The founder of Honda, Mr. Soichiro Honda implemented his mechanical and commercial ideas to the company and this is his jumble that made Honda, a big success. A Honda motors is serving the market of 33 countries at present with its undestroyable manufacturing facilities.( Honda, 2013)Hondas Mission StatementThe mission statement of Honda is to maintain a standard of quality and deliver highest quality products at a rational price to retaliate the customers. ( Honda, 2013)Hondas Vision StatementThe vision of Honda is to create an organisational culture to achieve the goals and strengthen as the unbeatable brand and the best manufacturers of motors.Organizational Leadership wayThe first leader of Honda was the person who founded the company, Mr. Soichiro Honda. The research has shown that Mr. Honda was an innovative leader and he always encourages the employees to increase their business efficiency. He was a transformational leader. He always promoted a culture of communication between the managers and employees in cast to accomplish the objectives of the organization. All the employees at the company are enthusiastic and make up a prospered team.( Hunt, 2007) The company follows the concept of transformational leadership.Hondas Internationalization ProcessThe externalisticization means to expand the bus iness on global level. Honda proved itself as the most successful producers of cars on the global level. In 1959, Honda started its process of internationalization by having a subsidiary in United States, the Honda motor co. ltd. Honda in japan make the cars and they were exported to its subsidiary. Honda was late in introducing its automobile industry and this made the company to face many problems in the market of Japan. ( See extension 1). The import from japan was restricted afterwards and then the Honda Company initiated Honda of America Manufacturing in 1981, although the parts of cars were manufactured in japan and the assembling was in US. Honda started to export the cars to some other countries as well and introduced its products in the international market. In the 1980s, Honda recognized that it has strongly captured the market of United States and then the company took ahead its concept of globalisation to the idea of internationalization. The objective was to have mo re market share and to cater dissimilar needs of different customers in a better way. The management of Honda decided to divide its market in five regions. These regions accommodate unification America, Europe, Middle East Africa, South America, Asia Oceania and Japan.Honda Regions And SubsidiesYearHonda Regions and SubsidiesYearJapan1949Middle east Africa1970 atomic number 7 America1965South America1959Europe1962Asia Oceania1974The Situation in the Host CompaniesThe Honda products have come up with success in most of its host countries. When we talk about US, there are two types of views that are expressed about the Honda Company in the market. Some people think that it had a bad clashing on the domestic automobile market of US and some people consider it as a good deal. According to Richard Pascale, Honda had intended to protect an uncertain share of the traditional US motor-cycle market (1995).Contrary to this, the Honda products were failed to be accepted by the Europeans be cause the local companies were providing a higher quality at a cheaper price. The sales of Honda in Europe were 11% of the global turnover in the early 1990s as compared to Japan (33%) and the North America (43%). Honda is leave behinding to spend about $40 million and wants to appoint 300 employees to increase ware in Greensburg, Ind., as its North American operations have a big role in the global system of the company. ( Global automakers, 2012)Internationalization Strategy of HondaThe company made the subsidies more mugwump from the leaven company. All the subsidies were responsible for their own profits, manufacturing and RD. this was because of a difficulty to determine the audition of all the customers while sitting a single country. The company designed a strategy to make independent RD in all the regions i.e. Honda Research of America in 1984 to produce the cars that will sate the needs of the customers. It was very expensive to make products according to each strateg ic state, so Honda developed a strategy of platform for the automobiles. According to the strategy it established a common development center where the product was modified in accordance with the taste of the market of that region and to satisfy the customers. To control the increasing cost, Honda changed its manufacturing approach from the classical Ford Manufacturing System to the sparse Manufacturing System to compete with its internationalization strategies. At present, the Honda Company is promoting the concept of Green Technology to cater and satisfy the customers around the world. Honda Company has an effective international strategy according to which all the regions will have independent relationships to enhance the trust factor. (Mair, 1998) The corporations should contribute a part in the transfer of the technology. Hondas overseas strategy consists of the quaternary localisation principlesLocalization of productsLocalization of profitsLocalization of productionLocaliz ation of managementThe localization of products which means the products should be produced and marketed on the basis of the needs of the customers of that particular region and the RD of the company should conduct research to increase the level of efficiency in the production. The localization of profits means to reinvest the profits in the company as more as possible. The localization of production refers to the concept that the company should not depend on the products that are exported it should as well as conduct the production activities in the region to contribute in the development of the company. The last localization is the localization of management that refers to the practice of promoting the collaboration and communication between the management and the employees in order to achieve the international targeted common goals in an effective way.New Mission after InternationalizationThe mission after the internationalization is to maintain an international market and supp ly highest quality products at a rational price to satisfy the customers all over the world.New Vision of HondaThe vision of the Honda Company is to prove itself as the best and most efficient manufacturers of automobiles and motors in the world.COMPETITIVE STRATEGIES AND COMPANY ASPECTSIt would be beneficial for the corporation to form strategic alliances with the other local corporations of the host country in order to be successful. It will pave the way for its make and development. Moreover, the increased emphasis on delivering the high quality automobiles to the customers would assist the corporation in capturing the more market share. Furthermore, it would be advantageous for the corporation to enter the Asian markets due to the increase in the population there. It will help them in earning the optimal proceeds.