Case Analysis: Honda Motor Company
President, Honda Motor Company
In order to be more competitive and successful in the Global Market, Honda Motor Company will consider the integration of two different cultures (Japanese and American).
II. Statement of the Objective
* To be able to assess the pros and cons of integration of the two different cultures.
* To identify the factors that may affect the current management style of two different cultures.
* To consider its effect in the whole company if integration is to put in place, what will be the model of operations.
III. Areas of Consideration
Honda Motor Company is one of the largest automobile in the world. There is much strength to Honda. It has a reputation for producing high quality products from cars to motorcycles. Have the international expansion in diversified operations. Honda also has the leading market position and brand strength. Engineering capability was a great ingredient in their success. Some of the opportunities of the company are they can increase the demand of producing specialized vehicles; they can capture biggest market in Asian countries and can have the aviation business.
As to their innovation, Honda Motor Company has its weakness and threats. Honda products are fairly bland and inoffensive in terms of styling. Their prices are higher for non-luxury vehicles than comparable models by other manufacturers. They can experience economic slowdown, competition in the global automobile market. The company much appreciates the Japanese yen against the US Dollars. And they can possibly have the tightening emission standard in their spare parts in production.
Honda Motor Company has its own way of operating its market; each culture has its management style in manufacturing their automobiles though spare parts are came from Japan. The American Company has shown flexibility in responding the changing market. The management should learn both cultures with the basic concept of reinvesting profits not only where the automobile manufacture but also to where the spare parts came. And also into the community and society. Custom taxes have a great impact in the operation of the company as the parts being supplied by the Japanese, payment of imports duties was triggered by consideration/non-consideration of content from US-Japanese owned supplier.
Alternative Courses of Action
Honda Motor Company can consider below courses of action in integrating the two different cultures:
1. Management of Honda Japan will take the American/Japanese blending present in the American division and transplant the success to Honda Japan.
2. Honda Motor Company will consider its cost, effect in the production/manufacturing industry; hire employees that both understand the two different cultures and the Return of Investment should satisfy its cost through its integration.
3. The management will search for the possibility of implementing one management process in the production of automobiles, the parts needed in manufacturing.
Based on my proposed Alternative Courses of Action, in considering the integration of two different cultures it has an effect on the management as they uses different management style. Through with this process it can help the production of automobile in an easy way since Honda Japan is the one who supply the spare parts to US manufacturing plant. In this effect Honda Company will utilize its resources. It has also a negative effect in the management, Employees of US and Japan will have a disagreement of changing its current management style. The main resource of its success is his people. Its philosophy in respect for the individual, globalization takes place as the company will hire employee who both know and understand the two different cultures (Japan/American) that have a marketing skills to help the company...
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