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International strategic management ( answer the 2 exam questions) - Essay Example

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Honda has been the most dominant firm in the world’s motorcycle manufacturing industry since 1959. In addition, Honda has been the…
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International strategic management ( answer the 2 exam questions)
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Download file to see previous pages da Motor Company, it seems that the company had been following a “glocalisation” strategy since mid 1980s in order to internationalise its business segments giving more focus on local markets. However, the company has recently brought a strategic change in its global market operations, according to which the Honda sets up its own wholly owned subsidiaries across the globe. To illustrate, referring to Aylward (2003), Honda established its wholly owned subsidiary in India in 1999 under the name Honda Motorcycle & Scooter India and announced plans on cancelling the joint venture with its Indian partner Hero. This strategic change is supported by the performance comparison framework, which tells that stockholders expect more revenues as time goes by (Lecture note). In addition, the company has abandoned its traditional manufacturing policies, and adapted to a new manufacturing policy called ‘Lean manufacturing system’ by the end of the 20th century. The lean manufacturing strategy would produce maximum level of output with minimum level of inventory. Also, this strategy would avoid production waste. Strategic change approaches illustrate that a change process involves three phases including strategic planning, project management, and operationalistion.
Today, governments worldwide encourage foreign direct investments as it is one of the best measures to promote economic growth. This trend is particularly seen in emerging economies like India and China. Since Honda is a globally recognised company and a potential employment provider, governments tend to welcome the organisation on the belief that Honda can add value to the nation’s industrial and economic status. In addition, since globalisation has eliminated cross border trade barriers, organisations enjoy easy access to foreign markets. At this juncture, the Honda management thinks that the strategic change would provide them with more operating freedom and innovation capabilities.
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