The Impact of the Financial Crisis on Honda - Research Paper Example

The case study of the impact of financial crisis on Honda car manufacturers is considered in terms of how the firm defines its core areas, evaluates its business methodologies and management philosophies, and conducts its diagnosis of management especially during a financial crisis which the world is facing now. The descriptive method of research is adopted. Accordingly, Creswell (1994) stated that the descriptive method of research is to gather information about the present existing condition.

The emphasis is on describing rather than on judging or interpreting. The aim of descriptive research is to verify formulated hypotheses that refer to the present situation in order to elucidate it. For this study, the descriptive research method was employed in order to identify the impact of competence and sustainability in the automotive industry of Honda. This study looks at the success that Honda Corporation has had in managing social capital in its supply chain. Using self-report surveys from 120 participants at a Honda-sponsored supplier competition, researchers find that those people who participate in the quality-teams report that they are more satisfied with their work, feel that they improved the effectiveness of their company, and continue to offer suggestions to improve their supplier’s operations.

Resources that are valuable especially human resources, rare, and can be exploited by the organization can produce sustained competitive advantage and earn above-average economic performance (Barney, 2001).A lot has been written about the value of people in organizations.