Essays on Strategic Activities and Decisions of a Multinational Company Honda Case Study

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The paper "Strategic Activities and Decisions of a Multinational Company Honda " is a perfect example of a business case study. A multinational company may refer to an establishment which has its presence in foreign countries but retains the central operational base in home country (Mortara, & Minshall, 2011). The main aim of establishing foreign base is to widen its revenue generation activities for stability purposes. Multinational companies take advantage of their wider coverage to influence the market hence enjoys economies of scale. Most multinational corporations use strategic activities and decisions in establishing their foreign offices.

The management evaluates the market critically before allocating funds for the expansion program (Heidenreich, 2012). Establishing an office in a foreign country carries heavy investment risk hence the need for strategic decision. Some of the factors they consider in their decision-making process include population size of the target country, cultural background, political structure and stability and economic strength among other aspects (Mortara, & Minshall, 2011). Looking at each of these aspects critically and analytically, they are able to come up with an ideal and strategic decision whether to establish a business in that country or not.

The final decision depends on whether there is a suitable and sustainable climate for investment in that particular country. After making the decision, the management in home country identifies various strategic activities to carry out in the target country. The main aim of these activities is to help the company penetrate the market (Meyer, Mudambi, & Narula, 2011). Note that penetrating a new market is a challenging task and requires strategic activities that suit the environment. The multinational company may start by conducting a market survey and research.

In respect of this, the management is in a position to compare various variables such as demand and supply for their products in this target market. Management may also invest in the community by establishing a project that benefits society. The company is able to gain acceptability in the society thus creating a positive image which helps in marketing its products (Khanna, & Palepu, 2013). Honda is one of the popular multinational corporations with a presence in almost every country throughout the world. Its main line of business is the Manufacture of motor vehicles and motorcycles (Mito, 2013).

It is important to note that this is a highly competitive business with many other manufactures in every corner of the world. For this reason, the management ought to develop strategies on how to tackle competition issues in order to have a stable market share in foreign countries. Tough challenges call for tough managerial decisions which enable the company to penetrate the new market, establish a reliable and sustainable share as well as achieve its objective efficiently (Meyer, Mudambi, et al, 2011). This paper aims at developing a critical analysis of strategic activities and decisions Honda management takes when establishing a subsidiary firm in a foreign location.

It includes the historical performance of this multinational company and its position in the automotive industry. The paper also provides a range of products this company manufactures and strategic choices available for the management to improve its current performance. In light of this, there is a clear understanding of the management role in determining the fate of such a large corporation.

It is the duty of the management to develop strategies and direct activities of the firm hence key determinant of the outcome (Mortara, & Minshall, 2011).

Reference

Heidenreich, M. (2012). The social embeddedness of multinational companies: a literature review. Socio-Economic Review, 10(3), 549-579.

Khanna, T., & Palepu, K. (2013). Winning in emerging markets: A road map for strategy and execution. Harvard Business Press.

Lee, K., & Carter, S. (2011). Global marketing management. Strategic Direction, 27(1).

Meyer, K. E., Mudambi, R., & Narula, R. (2011). Multinational enterprises and local contexts: the opportunities and challenges of multiple embeddedness. Journal of Management Studies, 48(2), 235-252.

Mito, S. (2013). The Honda book of management: a leadership philosophy for high industrial success. A&C Black.

Mortara, L., & Minshall, T. (2011). How do large multinational companies implement open innovation?. Technovation, 31(10), 586-597.

Pfeffer, J., & Sutton, R. I. (2013). The knowing-doing gap: How smart companies turn knowledge into action. Harvard Business Press.

Schlie, E., & Yip, G. (2000). Regional follows global: Strategy mixes in the world automotive industry. European Management Journal, 18(4), 343-354.

Taylor, M., & Thrift, N. (Eds.). (2012). The Geography of Multinationals (RLE International Business): Studies in the Spatial Development and Economic Consequences of Multinational Corporations (Vol. 37). Routledge.

Wan, W. P., Hoskisson, R. E., Short, J. C., & Yiu, D. W. (2011). Resource-Based Theory and Corporate Diversification Accomplishments and Opportunities. Journal of Management, 37(5), 1335-1368. Grein, A. F., Craig, C. S., & Takada, H. (2001)

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