Reconciling Management Dichotomies at Honda Motors

Topics: Honda, Motorcycle, Automobile Pages: 17 (4926 words) Published: November 10, 2011
Name:Josphat waititu

Author: josphat waititu

Instructor: A B W Wachira

Subject: Management


Honda Motor Company is a Japanese manufacturing company primarily involved in the manufacture of motor cycles and motor vehicles. It is currently the world’s leading motor cycle manufacturer in the world, a position it has held since 1959 and the world’s sixth largest vehicle manufacturer in terms of volume; being Japan’s second largest vehicle manufacturer and the fourth largest in America. Some of its other products include power products and engines. The firm also produces lawn mowers, solar panels as well as aircraft and robots.

Honda is a publicly traded company listed on both the Tokyo and New York stock exchange and headquartered in Tokyo, Japan. Globally, the company employs over 179,000 people in its operations with a total production volume of over 17 million units of motor cycles sold in the financial year ended 2010 while over 3.5 million vehicles were sold in the same period. with Its global operations, the company is s divided into four key business segments, automobiles, motor cycle, power products and financial services, it also divides its business on a geographical basis; Honda has its manufacturing and assembly plants in key current and future markets in order to help it meet the needs of those markets effectively. Some of its manufacturing and assembly operations are based in China, Indonesia and Japan in Asia. In North America, the firm has operations in the USA and Canada; its operations in Europe are mainly based in England and Belgium while its South American operations were based in Brazil and Peru. Honda motors also has operations in other key emerging markets such as India, turkey, New Zealand and Thailand.

Vision statement

The firm’s vision statement aims at satisfying the expectations of its stakeholders by taking on new challenges and being flexible. The firm aims at leveraging on new technology in order to supply new cars with more fuel efficiency and competitive pricing. A friendly after sales support is also a key component of its vision all while maintaining quality throughout its key activities.

Mission statement

As a firm, Honda strives to meet the needs of its global clientele by supplying them with products that are of the highest quality but at an affordable price. The firms aim to compete at the global stage by competing on both cost and quality.

Some of the management policies adopted by Honda to assist in meeting the set goals include encouraging the organization to remain and ambitious and youthful in its outlook in order to be able to respond to changes in market requirements quickly. The company’s management also seeks to follow the tested and proven management theories and practices all while encouraging the development of fresh ideas and using time efficiently. Towards this end, the company places a lot of value on research and development of new products and maintains an open communication policy to facilitate in the flow of ideas and in maintaining harmonious and a coordinated, working relationship that helps the organization maintaining its harmonious working relationship.


Honda motors was founded in 1946 as Honda technical research institute before changing its name to Honda motors company two years later. Founded by Japanese entrepreneur Soichiro Honda, the company first found its niche in the market through the manufacture of generator motors during the world war two and the manufacture of motor cycles. Starting operations with twenty employees the company found its first success with the production of the “c” class model motorcycle before manufacturing a “D” model which was a three horse power and twin transmission engine. The two models were followed by the “E” model which was equally successful. These motor cycle models were quite popular as they were inexpensive and were fuel efficient and helped Honda motors build a...

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Bruno Duck, Mitchell Neubert, (2008), Management: Current Practices and New Directions, Cengage Learning, page 624
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