EXECUTIVE SUMMARYThis report is an effort which brings out the operations of Honda Motor Company Ltd, in four major areas namely, environment and sustainability, ethics and social responsibilities, planning and decision making and organisational structure. A comparison of these standards between Honda and its competitors will bring out Honda’s proficiency in these areas. Honda has an above par environment sustainability front as the company is an advanced thinking company and believes in looking forward for the future generations. Though the changes in this company are much big but a lot of motor companies are in race to catch up with Honda. Honda has very well taken over the responsibilities of a multinational company and is well into social aspects of charity, donation, involvement with local bodies and highly satisfied customers.
Its social motto is to become a company that the people want to be. Honda plans to enter in big markets like India and China as these countries have high potential and the company foresees a huge expansion corridor. But the market is different from the North American markets as the affordability is differ in this region so the prices are to be charged very carefully and this shall take a toll on quality issues.
So the decision making is required to be carried out with diligence and care. The organisational structure of Honda is quiet different as a part of it is influenced by Japanese corporate governance law and partly by western corporation structures. The decision making is done by the upper level of management as the company has a centralised organisation structure like that of Toyota. TABLE OF CONTENTSEXECUTIVE SUMMARYBACKGROUNDIntroductionHistoryENVIRONMENT AND SUSTAINABILITYIntroductionProduction InitiativesProduct DevelopmentGreen PurchasingGreen LogisticsGreen DealersProduct RecyclingWhat are Similar Organisations doing? PEST analysisConclusionETHICAL AND SOCIAL RESPONIBILITIESIntroductionSocio-Economic ViewpointAssociatesQuality ExperienceCustomer SatisfactionWorking with SocietyPhilanthropic Activities in the AmericasPhilanthropic Activities around the WorldGreat East Japanese EarthquakeOccupational Health and SafetyComparison with its Rival ToyotaConclusionPLANNING AND DECISION MAKINGIntroductionHondas Short Medium and Long Term GoalsSWOT AnalysisDeveloped Strategies and Their ResultsMoving into Emerging MarketsLocal CollaborationStriving for AffordabilityUn-Expected SetbacksJapanese Tsunami and Thai FloodsA Strong YenInappropriate TradingConclusionMANEGERIAL STRUCTUREIntroductionCurrent StructureOrganisation Analysis6 Point AnalysisComparison with ToyotaFuture StructureConclusionCONCLUSION AND RECOMENDATIONSREFERENCESBACKGROUNDIntroductionHonda Motor Company is a multinational company with its products selling worldwide.
It had a profit figure of 6.44 billion (USD) and a total strength of over 1, 79,000 employees in the last financial year.
(Honda Annual Report 2011) The company is listed in two different stock exchanges (Tokyo and New York) and has some important responsibilities towards its shareholders. These responsibilities are governed by legislative rules which state that “equitable principles of trade and sound business practices. ” (NYSE Rules Introduction 2012) the company is required to carry out its operations carefully to meet out the stakeholders in both the exchange. According to the annual report of 2011 the company works on the principles of “the three joys” namely “the joy of buying”, “the joy of selling” and “the joy of creating”.
These principles suggest that any individual who comes into contact with Honda, either as a product user or a part of the staff, must have a pleasurable experience. They achieved a sales figure of 11.45 million motorcycles and 3.5 million automobiles in the last financial year. (Honda Annual Report 2011)