Profile of Honda Motor Company Ltd - Essay Example

Honda Motor Company Ltd. Introduction: Hondo Motor Company Ltd. is an example of Japanese business acumen rising from the ashes, as a result of the Second World War, to become a leading force in several spheres of business activity not just in Japan, but all round the world. So much so Honda has became a household name right across all parts of the globe. More popularly known for its motorcycles and automobiles, the range of Honda products is wide and includes research products in robotics today. This phenomenal rise had humble beginnings. Though the company was founded in 1948 by Soichiro Honda, the foundations for this business enterprise were laid immediately after the Second World War in 1946. Japan was a fuel and transport starved nation after the Second World War. Soichiro Honda seized this opportunity to provide cheap transport from small two-stroke motor cycle engines developed in the Honda Technical Research Institute in Japan. (History). This resulted in the launch of Dream D 98cc motor cycle in 1949 (Honda). From then on there has been no looking back for this multi-national company leading to a wide range of products, and a presence in nearly every part of the world. It is the leading manufacturer of motorcycles in the world, and an automobile manufacturer of repute. The name Honda in the modern era has been equated with value for money. Profile of Honda Motor Company Ltd: The business activities of Honda Motor Company Ltd. include the development, production and manufacture of motor products in many places around the world. The motorcycle business activity consists of the manufacture of motorcycles, all-terrain vehicles, and personal watercraft. The engine capacities of the motorcycles manufactured by Honda have a range from as low as 50cc to as high as 1800cc cylinder displacement. The models of Honda motorcycles consist of sports, business, and commuter models. Passenger cars in the automobile range of Honda consist of the Legend, Accord, Civic, City, and Acura brands. Honda also offers multi-wagons, sports utility vehicles, sports coupes, and mini-vehicles under different brand names. Financial services to customers and dealers also form a part of the business activities of Honda. This activity facilitates the purchase of vehicles by the dealers and the customers. Honda also manufactures a range of other power products, which include power tillers, portable generators, general purpose engines, grass cutters, outboard engines, water pumps, snow throwers, power carriers, power sprayers, lawn mowers, and lawn tractors. The products of Honda are made available to its customers through various outlets, wholesalers, and independent retail dealers (Honda Motor Co. Ltd. (HMC)). Moving into the twenty-first century, Honda has shown further interest in diversifying its product range. Honda has entered the aircraft sector with the announcement of sales initiatives for its advanced light jet the Hondajet. Its seriousness of purpose is clear from its application for FAA type certification for the Hondajet. The Hondajet is expected to go into production in America by 2010. (Honda Begins Sales of its HondaJet Advanced Light Jet). Honda is also demonstrating its capabilities in robotics with the presentation of the breakthrough version of its humanoid robot ASIMO at the Consumer Electronics Show (CES) at Las Vegas, Nevada early this year (Hondas Newest ASIMO Humanoid Robot Sprints to Its North American Debut At Consumer Electronics Show) History of Honda Motor Company Ltd.: Honda Motor Company Ltd. Was founded in 1948 by Soichiro Honda, along with investor Takeo Fujisawa, who provided the investment for the company. Honda was the engineering brain, while Fujisawa was the financier, and the marketing strategist. The two had different priorities, and this was to increase the range of the activities of the company. For Honda the company provided a means to his dreams of motorcycle racing, while for Fujisawa it was a commercial venture that offered opportunity for demonstrating business acumen. The first product of the company was the Dream D 98cc two-stroke motorcycle. In 1951 Honda demonstrated their engineering prowess by doubling the capacity of the then existing four-stroke engine. This development was to see Hondo become one of the industry leaders, and by 1954 Honda had taken fifteen percent share of the motorcycle market in Japan. The increased horse power developed for the Honda motor cycle engines saw Soichiro Honda realize his dreams in racing by Honda winning many of the prestigious motorcycle racing trophies, and making Honda a force to reckon with in the motorcycle racing circles by the end of the 1950s. In 1958 Honda introduced the 50cc Super Cub, which looked like a bicycle, but had three-speed transmission, automatic starter, and was extremely safe. The Super Cub was to see Honda become the leading motorcycle manufacturer in Japan by the end of 1959. (Honda Motor Company Limited). Having established a leading position in motorcycle manufacture in Japan, Honda turned its eyes to the United States of America with its large markets. In 1959 Honda established its presence in the United States of America by setting up a subsidiary American Honda Motor Company. This was in contrast to the then existing practice of foreign manufacturers relying on distributors. Another strategy employed by Honda to establish its grip on the American market for motorcycles was to develop the market in America on a region by region basis, giving sufficient time for each. Such strategies along with its superior products were to entrench Honda Motor Company in America. This success was to spur Honda on to look at other markets around the world. By the 1960s, Honda established its presence in Europe and some countries in Asia. This expansion was to continue subsequently into South America, and then further on to all the worldwide markets. (HONDA MOTOR COMPANY CELEBRATES FIFTY YEARS OF PRODUCT INNOVATION AND SUCCESS). The success Honda had with its motorcycles gave it the finances, and the confidence to diversify its business activities. As a result Honda started manufacturing cars and trucks in 1967, and subsequently into other products like portable power generators, power tillers, lawn mowers, pumps, and outboard motors (History of Honda Power Equipment). All was not rosy on the automobile front initially. The first two models failed to take off, and it was only in 1973 with the launch of the Honda Civic that Honda became accepted as an international car manufacturer of repute. Honda also had to face a period of hardships in the early 1990s. Its founder Soichiro Honda passed away. Tough competition from other car manufacturers eroded the market share of Honda in the automobile sector. In addition to all this, Honda was tarred by scandals of bribe-taking in appointing dealers. The resilience of Honda stood it good at this period of time, and the new management of Honda saw it through this period of decline. Honda concentrated their research and development in the 1990s on areas of concern like emission issues, rising cost of fossil fuels and their over exploitation, and use of renewable energy sources as transportation fuel. The results of these initiatives of research and development, and their implementation into products renewed the popularity and respect that Honda had gained through nearly five decades of effort, and positioned it to take on the business challenges that it would face in the twenty-first century (Honda Motor Company Limited). Nature of Honda Motor Company Ltd.: Honda Motor Company has relied on its strength in design and manufacture of engines to build a range of products around this strength, and then expanded into power products, and now into aircraft, demonstrating that the sky is the limit for Honda. Through all these developments within the business enterprise, the organization has shown that it is responsive to the concerns of society. To address such concerns has been one of the areas of concentration of research and development at Honda. These efforts have borne results too. The power product engines of Honda were the first to meet California’s new emission regulations in 1993. Research and development into alternative power sources for automobiles have led Honda to win the world’s largest solar car race with its Honda Dream. Honda is already marketing an electric scooter. The BP90 outboard motor of Honda was the recipient of the IMTEC Innovation Award. In 1997 Honda began manufacturing the Honda EV plus fulfilling its dream of introducing a fully electrical vehicle, as an alternative to address the environmental concerns of the use of fossil fuels as the only power source for transportation (It all began with a debate concerning the feasibility of solar power). Geographical Reach of Honda Motor Company Ltd.: A core philosophy of Honda has been to manufacture its products as close to its customers as possible. To Honda the world is divided into six regions. This has enabled speed, flexibility, and efficiency as key attributes to Honda, as a global enterprise. The new global strategy with emphasis on regional operations was initiated in the early 1990s. This led to the creation of six regions namely Japan; North America; South America; Europe, Middle east and Africa; Asia, Oceania, and China. Thus practically covering almost every sphere of human occupied space. The expansion of Honda’s global production and research and development prowess has caused the setting up of over 124 manufacturing plants in twenty-eight countries, and research and development facilities in each of these six regions. The management of each of the regions has the power to make autonomous decisions in keeping with the local customer and community needs. Yet to maintain a global perspective, the regions are networked, and work in a complimentary manner creating a global network that aspires to provide support to customers all around the globe (Worldwide Operations – Overview). Conclusion: Starting from humble beginnings, in a period that spans six decades, Honda Motor Company Ltd. Has truly established itself as a global enterprise, and has entered the twenty-first century demonstrating capabilities that indicate that it will remain a strong global enterprise. . Literary References History. Retrieved January 30, 2007, from, Honda in America. HONDA The Power of Dreams. Web site: http://corporate.honda.com/america/history.aspx History of Honda Power Equipment. Retrieved January 30, 2007, from, Honda Power Equipment. Web site: http://www.hondapowerequipment.com/his.htm Honda. Retrieved January 30, 2007, from Web site: http://world.honda.com/timeline/motor/ Honda Begins Sales of its HondaJet Advanced Light Jet. 2006. Retrieved January 30, 2007, from, HONDA The Power of Dreams. Web site: http://corporate.honda.com/press/article.aspx?id=2006101734116 HONDA MOTOR COMPANY CELEBRATES FIFTY YEARS OF PRODUCT INNOVATION AND SUCCESS. Retrieved January 30, 2007, from Web Site: http://www.autoworld.com/news/Honda/50_Years_Of_Success.htm Honda Motor Co. Ltd. (HMC). Retrieved January 30, 2007, from, YAHOO FINANCE! Web Site: http://finance.yahoo.com/q/pr?s=HMC Honda Motor Company Limited. Retrieved January 30, 2007, from, FUNDING UNIVERSE. Web site: http://www.fundinguniverse.com/company-histories/Honda-Motor-Company-Limited-Company-History.html Hondas Newest ASIMO Humanoid Robot Sprints to Its North American Debut At Consumer Electronics Show. 2007. Retrieved January 30, 2007, from, HONDA The Power of Dreams. Web site: http://corporate.honda.com/press/article.aspx?id=2007010954311 It all began with a debate concerning the feasibility of solar power. Retrieved January 30, 2007, from, Honda. Web site: http://world.honda.com/history/challenge/1988evplus/text/01.html Worldwide Operations – Overview. Retrieved January 30, 2007, from, Honda. Web site: http://www.hondanews.com/catID1011?mid=20010105001215&mime=asc Read More