Introduction & Problem Statement
Donte Walker
Department of Business and Technology, William Woods University
BUS 585- Intergrated Studies and Business Administration – Fall 2 2022
Dr. Leathers
October 29, 2022
Introduction
Japanese automaker Honda Motor Co., Ltd. is a publicly traded company. Unlike its competitors, it has not been limited to a single product over the course of its decades-long reign over the global market. The business's reach spans many fields, making it highly versatile. The corporation is best known for manufacturing automobiles, airplanes, motorcycles, and power equipment (Badhon, 2019). The Honda Motor Company, Ltd., was established in 1959, and since then it has become a worldwide leader in the production of bikes and accessories. Honda Motor Company, one of the world's largest automakers, offers a diverse lineup. For Honda, the United States and Canada are the primary sources of revenue (Muniandy et al., 2020). Honda's products have evolved throughout the years, and the corporation today provides a wide variety of cutting-edge innovations. But competition is heating up as more businesses set their sights on the global market.
Mr. Honda developed the idea of attaching an engine to a bicycle. There was an immediate demand for Mr. Honda's motorcycles. With the help of his friends, he was able to raise enough money to buy the materials necessary to build a motorcycle with significantly more range (Badhon, 2019). His primary means of financial support were motorcycles and bicycles, which he sold to black marketers and small cycling enterprises. Company founder Soichiro Honda has had a passion for cars since he was a young boy (Bahety et al, 2018). At the Art Shokai tuning company in Japan, he filled in as a specialist, making adjustments to cars and entering them in competition. Since he had no formal architectural training, he worked on a cylinder layout to pitch to Toyota. After receiving negative feedback on his preliminary design suggestions, Soichiro spent a great deal of time honing and completing his final design. After some years, Toyota awarded him a contract, and he built a factory to produce pistons for the corporation. Unfortunately, the factory was destroyed by an earthquake. Because of the wartime fuel shortage, Honda was unable to drive his car, However, the idea of mounting a small motor on his bicycle sparked widespread interest (Bahety et al., 2018). Soon after, he established the Honda Technical Research Institute to focus on developing and producing lightweight, 2-cycle cruiser engines.
Soichiro got enough capital to design and produce his first motorbike, the Honda Cub, by enlisting the support of 18,000 bicycle shop owners across Japan in the struggle to rebuild a country ripped apart by World War II. Founded in this year, Honda Motor Company would soon grow to become the largest motorcycle manufacturer in the world. The T360 pick-up truck, manufactured by Honda and released in August 1963, was the first manufacturing automobile anywhere in the globe (Badhon, 2019). The automobile was powered by a 356 cc gasoline straight-4 engine and qualified for the more affordable Kei car tax category. After the T360, in October 1963, Honda began production on the S500 sports car, their first mass-produced automobile (Badhon, 2019). A chain drives the rear wheels, recalling Honda's origins in the motorcycle industry.
According to company’s goal statement, Honda strives to "provide products of the best quality, yet at a reasonable price for international customer satisfaction while keeping a global perspective." The statement demonstrates the company's commitment to provide high-quality items at competitive prices. The structure is comprised of the following element: Improvement of life and Improving affordability (Badhon, 2019). Since the beginning, Honda has been committed to producing high-quality products, giving them an edge on the competition. Honda's success can be directly attributed to its corporate statements.
To "service people globally with the joy of enhancing their life's potential - Lead the advancement of mobility and empower people everywhere to enhance their daily lives," as stated by Honda, is the company's stated mission. Honda has been at the forefront of ground-breaking designs that enhance mobility across all modes of transportation, including land, air, and sea (Badhon, 2019).
While Hondas firm limited has expanded into the automobile industry and is now the third largest carmaker in Japan, the company orginally began producing bikes and is currently the largest motorbike producer in the world. The United States is their best market and where the company sees the most success. Most of Honda's revenue comes from selling automobiles, including the Accord, Civic, CR-V, and the high-end Acura brand (Bahety et al., 2018). The Accord is the country's second most popular car purchase, yet it tops the list of most stolen cars, making it the most "in-demand" automobile in the country. Some of Honda's motorcycle offerings include the Super Cub, Foresight, and Shadow 750. In addition to agricultural and industrial gear, portable generators, outboard motors, and all-terrain vehicles are produced by the company's power products section, which contributes to the company's annual revenues (Bahety et al., 2018).
The market challenges experienced by Honda are the primary focus of this essay. Honda Motors employees in China wanted to form their own union so that they could have a voice in the company. In addition, they sought a raise in pay and benefits. Nearly 1700 employees went on strike when the corporation refused to meet their demands. Management now faces a critical issue as a result of this predicament (BHARGAVI). The company's sales and revenue dropped, and Honda had trouble finding enough people to work in its factories. It also became a political issue, which hurt the company's reputation in the eyes of its target audience.
References
Badhon, M. (2019). Analysis on Market and Business Strategy of Honda, DHS Motors Limited.
Bahety, S., Moffitt, B., Pruchnik, W., & O’Rourke, J. S. (2018).
Honda motor company: communication and the takata airbag crisis. The Eugene D. Fanning Center for Business Communication, Mendoza College of Business, University of Notre Dame.
Muniandy, A. M., Kee, D. M. H., Izwan, S., Imran, M., Al-Amin, A. A., Kumar, S., & Singh, S. (2020). The key success factor: A study of Honda Motor.
Journal of the Community Development in Asia (JCDA),
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BHARGAVI, T., & CHANDRAVATHI, K. A STUDY ON COMPARATIVE FINANCIAL STATEMENT ANALYSIS ON HERO MOTOR CROP.