Strategic Management on Honda Motors

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Executive Summary
The key to a firm’s success is its fit between the organization and its environment. We study Porter’s Five Forces and Porter’s Value Chain activities for Honda’s strategic planners to analyse the organisation’s role in itself and how it copes with the environment. The strategic planner’s role is to forecast and direct the organisation into future strategies.

Honda’s market positioning faces many challenges for example, the company’s core competencies in engine design and its engineers’ pursuit of technological mastery are not in accordance with market demand. honda’s positioning is not moving beyond the conservative Civic and Accord models, despite attempts to come up with other innovative cars.

How the global automobile industry configures its activities across borders is largely dependent on how it deals with the opposite demands of global integration of activities and handles demand for local responsiveness.

Prof. Whittington’s Classical and Processual Schools of Thought identifies with how differently strategies are developed. On one hand, strategic managers would like to forecast the future and to orchestrate plans to prepare for it. On the other hand, experimentation, learning and flexibility are required to deal with unexpected future events. The two model are applied on Honda Motors and we analyse which one is more suitable for Honda Motors.

Global strategic management is conducted by managers all over the world. Its success depends on clear communication and understanding between them. The cultural dimensions are discussed from five aspects. They are power distance, individualism, masculinity, uncertainty avoidance and long term/short term orientation. In the systemic perspective, the international strategic manager at Honda Motors will take into account the cultural dimension in building productive relationships.

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