The Japan-based garage conceived a burning idea and has exploded into an internationally renowned company in a short while. The outcome is revolutionary motorcycle technology that is available for consumers to own today. From the time that the first prototypes were released, in 2006, Honda Motorcycles has been inviting interested motorcycles who crave for motors with more than 1100 cc to go for a test ride. Honda Motorcycles believes that seeing is believing and presents clients with an experience that will explain their technology better than mere words and advertisements.
The Product
Motorcycle lovers have a long-standing love for V-twin motorcycles, and for a worthy reason. The V-twin powered motorcycles come with a classic look and feel as well as a reachable power delivery that is basically biased toward mid-range and strong low-end punch. In a nutshell, the power engines are fun to cruise.
In 1983, the manufacturing company, Honda, tapped into the riders’ passion for V-twin motorcycle by producing the VT750C, followed closely by the 500 model. The models amazed consumers as 37,000 units were sold in the initial year of production. Two years after that, Honda released a better version of a powerhouse, the 1099cc VT1100C, which was an impressive machine that depended on proven technology already tested by its predecessor.
Decades later, Americans, which presents as the best market for the Honda’s V-twin engines, reserves their passion for the VT1100C model (Shadow 1100). The powerhouse continues to attract novel customers. However, an aspect of modernity has been added to the design to ensure that consumers are continually attracted amid changing perspectives and tastes. This shows that motorcycle riders love their V-twins engines, they preserve a special section in their hearts for the Honda-made Shadow 1100 (Honda, 2014).
Balancing Short-term and Long-term Needs
Short term rationale tops the headlines today as a major contributor for the economic crisis in many companies. While long term strategies are important to companies, entrepreneurs and managers want to find ways of combining short-term operational targets to their long term or future vision, if they are to survive in a corporate environment that is increasingly inclined to serving the public interest. Executives face two unnerving challenges as they rediscover the need to have long-term thinking and develop sustainable companies. First, the earnest need for short-term stewardship causes major distractions to executives. Second, outlining the long-term and integrating it into modern-day operations are intricate that they appear at first stance.
Honda Motorcycles must pay attention to the following important dimensions if it is to balance its short term needs with a long term ones:
Cost leadership
Cost leadership entails long-standing efforts to enhance efficiency and minimize the cost of resources utilized by the business. Beyond the instant corporate advantages, this factor promotes reduced use of the globe’s best resources while ensuring production levels are high.
Supply chain’s durability
Supply chain’s durability need to be balanced against the need to attain cost leadership. For instance, excessive pressure on manufacturers to offer low prices could affect the ability of the manufacturer to pay employees thus having adverse effect on the durability of supply chain.
Motivated workforce
The manufacturer should promote the ethos of doing what is right, even in the absence of supervision to help the business, as well as the community in general. Ethical behavior minimizes the continuity of fraud within an entity and improves the reputation of the company among its wider community and stakeholder group.
Attracting and making customers loyal
Consumers are increasingly seeking responsible organizations to supply them with goods and services. Today, consumers want to know where the materials that are used to develop new products are manufactured. Further, more and more consumers want to be assured that no child labor is involved in developing the products that they use.
Innovation
The capacity to innovate reinforces the other four important areas of focus. Innovation enables a company to find novel ways to satisfy the needs of consumers, keep workers encouraged and excited regarding the future, guarantees suppliers of the prospects of a company, and ultimately leads to cost-saving advances in both production and delivery processes (Cogliandro, 2007).
Changing the production from the existing products to touring class motorcycles calls for proper management to ensure a proper balance is stricken. Today, consumers want great design and speed, which is what is the main focus of the 1100 cc touring class motorcycles design. To ensure that there is a balance between the two products, it is essential to assess the material changes and design implications involved. Sourcing the lightweight material will ensure that the touring motorcycles are fast enough. Further, identifying suppliers of material is key as it will ensure that the touring class motorcycles will always be in the market. Through and through, the sales team will have to monitor the demand in the market to ensure that the manufacturing unit is not overwhelmed.
Project Management Leadership
To guide the company through change successfully, a transformational leader will be key. Transformational leaders inspire working teams with a mutual vision of the future. The vision of the leader importantly provides the motivation needed to accomplish the vision of the organization. The essential value of a transformational style of leadership is the amount of enthusiasm and commitment it elicits from the working teams. Thus, teams are always motivated and need little or no supervision making them highly innovative and proactive. Even in the absence of the project manager, transformational leaders leave an enthusiasm legacy behind to the team (Hood, 2007).
Risk mitigation measures
Risk mitigation handling alternatives include:
Exposure avoidance
This option entails adjusting the program constraints or requirements to reduce or eliminate the risk. A technical requirement, change in funding, or schedule could determine this adjustment. This can be the most effective way that Honda can use to manage any loss exposure. By employing loss exposure successfully, the company will be able to minimize the probability of any loss exposure completely. The goal of this strategy is not simply to reduce the frequency of loss, but to eliminate any possible occurrence of loss.
This strategy presents as a great option in the event that Honda Manufacturers expect the value of the loss to outdo the perceived benefit. For instance, if the motorcycle manufacturer perceives the cost of liability claims as higher than the returns from sales, he will desist production activities. The method can be proactive in that it eliminates the loss before its existence.
Risk Control
This risk handling measure entails implementing actions to minimize the likelihood or impact of the risk. Firms use this method to evaluate probable losses and take necessary action to reduce or eliminate such threat wholly. Companies may use findings from risk assessments or studies to mitigate risks that may lead to massive losses. From the studies and risk assessment findings, companies can easily develop policies, standards, and even physical changes to reduce the chances of suffering losses due to losses. This model would serve as a great method to ensure that the motorcycle organization does not incur losses. Proper assessments by the research and development department can ensure that the introduction of a novel product does not lead to losses.
Transfer
This method of managing risk involves reassigning responsibility, organizational accountability and authority to a different stakeholder who is ready enough to take up the risk. The organization may choose to introduce a third party product into the market and let the party bear all the burden in case there is a poor response from clients or problems with the product. Such an arrangement may serve the business well as it will enable it to maximize on the opportunity to make profit while reduce the chances of suffering losses due to risks.
References
Wu, T., & Blackhurst, J. V. (2009). Managing Supply Chain Risk and Vulnerability: Tools and Methods for Supply Chain Decision Makers. Springer Science & Business Media.
Hood, J. D. (2007). Transformational and Transactional Leadership Styles: An Exploratory Investigation of Traditional and Nontraditional Student Perceptions. ProQuest.
Cogliandro, J. A. (2007). Intelligent Innovation: Four Steps to Achieving a Competitive Edge. J. Ross Publishing.
Honda. (2014). Honda Powersports - Motorcycles, ATVs, Scooters, SxS. Retrieved October 21, 2014, from http://powersports.honda.com/
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