Final Project On Honda Siel

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STRATEGIC MANAGEMENT PROJECT
ON
HONDA SIEL CARS INDIA LTD.
Submitted by:
Ashish Jain
Abraham Littu Ipe
Ankush Nautiyal
Garima
Inderpal Singh
Kunal Singhal
Rashmi Jain
Shilpa Bhatia
1
Table of Contents
Company’s History
Company’s Profile
Head office
Showcase Manufacturing Facility
Sales and Distribution Network
Sales performance
Honda's vision and role
Corporate Structure
Corporate Governance
Basic Models/ Products sold by HSCI
The Indian Automobile Market
PEST Analysis
Competitive Analysis
Consumer Analysis
Core Competencies
SWOT Analysis
2
Internal Factor Analysis Summary
External Factor Analysis Summary
Strategies Factor Analysis Summary
TOWS Matrix
Strategies
Bibliography
3
COMPANY’S HISTORY
The history of the Honda Motor Company began with the vision of one man - Soichiro
Honda. His dream was personal mobility for everyone.
Soichiro Honda founded the Honda Motor Company in 1948. In the same year, he
designed and engineered the first product of this company - a 50 cc motorized bike on a
bicycle frame - in his small shed at Hamamatsu. Today, Honda is a global company with
a global viewpoint that is reflected in a solid commitment to local markets and
economies.
COMPANY’S PROFILE
Honda Siel Cars India Ltd., (HSCI) was incorporated in December 1995 as a joint
venture between Honda Motor Co. Ltd., Japan and Siel Limited, a Siddharth Shriram
Group company, with a commitment to providing Honda's latest passenger car models
and technologies, to the Indian customers. While the company sold its first 50,000 units
in nearly five years, it is today geared to sell more than 50,000 units in a single year. The
Honda City, its first offering introduced in 1997, revolutionized the Indian passenger car
market and has ever since been recognized as an engineering marvel in the Indian
automobile industry. Thereafter, HSCI launched its high-end models the Accord and the
SUV, CRV. The City ZX, introduced in its new avatar in 2003, replicated the success of
the earlier car. The Honda Civic, launched in India in July 2006, too has matched the
success of other Honda models and has proved to be a great hit with Indian customers.
Head Office
The Head Office pf Honda Siel is located at Plot#A1, Sector-40/41, Surajpur KasnaRoad,
Greater GautamBuddha Nagar, Uttar Pradesh- 203207
4
Showcase Manufacturing Facility
HSCI's manufacturing unit was set up in 1997 at Greater Noida, U.P with an investment
of Rs. 450 crore. The project is spread across 150 acres of land (over 6, 00,000 sq. m.).
The initial installed capacity of the plant was 30,000 cars per annum, which was recently
increased to 50,000 cars. The capacity expansion was possible because of the excellent
performance of all the Honda models in India. The expansion process involved an
investment of Rs.150 crores, with the covered area increasing from 55,000 sq. m. to 1,
07,000 sq. m. The covered area now constitutes 17 per cent of the total land area of the
plant.
The company plans to further raise its capacity to 100,000 units per annum by the end of
2007 and 150,000 units per annum by 2010.
Sales and Distribution Network
Honda Siel Cars India has a strong sales and distribution network spread across the
country. The network includes 51 Honda Exclusive Authorized Dealerships in 21 cities.
All HSCI dealerships are based on the "3S Facility" (Sales, Service, Spares) format,
offering complete range of services to its customers.
The company is targeting 100 dealer outlets across India by 2007, as per their expansion
strategy which is based on the '1 dealer per 1000 cars’ formula
Sales Performance1
1
(Source: http://www.hondacarindia.com/about/HondaInIndia/Default.html
HSCI closed the 2005-06 financial years with total sales of 42,727 units in the domestic
market - a growth of 14% over the previous financial year. The company's, Honda City,
accounted for 37,545 units in the year. Of this, the City ZX, which was made available to
the customers in the end of November 2005, accounted for 17,165 units. Total Accord
and CR-V sales for 2005-06 stood at 3,324 and 1,858 units respectively.
5
Honda's globally successful Civic, which was launched in July 2006, proved to be an
immediate hit in India. In the first month of its launch it has emerged the segment leader,
posting figures of 2441 units in a month.
The company is targeting an overall growth of 44% in the current Financial Year.
Honda's vision and role

Fulfilling the global needs of personal mobility in the new automotive society - go hand
in hand with the corporate philosophy: maintaining a global viewpoint, they are dedicated
to supplying products of the highest efficiency and quality at a reasonable price for
worldwide customer satisfaction.
In India, it is through HSCI that customers can enjoy the benefits of Honda's expertise.
Soichiro's vision was international in character. His desire was to lead the world in
technology, and make a significant contribution to the creation of a better society. As a
result, most of the products that Honda developed started out by making a difference.
Honda is a global company with a global viewpoint and a four-region global strategy that
is reflected in a solid commitment to local markets and economies.
However, the most enduring challenge has been to satisfy the ever-changing needs
of their customers. This is the essential spirit of Honda.
The Company's vision is "To be a Company that the Society would want to
Exist". It strongly believes in Co-existence and Co-evolution, wherever it operates.
6
Corporate Structure
President and CEO
Regional operations of India
Automobile Operations
Customer Service Operations
Product Operations
Purchasing Operations
Business Management Operations
CORPORATE GOVERNANCE
HSCI practices high standards of Corporate Governance and there is a strong emphasis
on transparency in its transactions and Code of Conduct for all Associates. It believes
very strongly in the practice a unique work culture, which has a sound foundation right
from the time of inception of the company .The management style, is founded on the
principle of “Respect for the individuals.”
The Associates are trained by way of working, which is very participative and based on
Initiative, Equality and Trust. Regular Training programmes, including behavioral
trainings, are being arranged/conducted for all levels. It encourages its Associates to be
innovative at Work and practice Quality Circle activities in their respective work areas.
Need based overseas training are also a part of the training system whenever required.
Periodic Employee Satisfaction Surveys (ESS) are being carried out and due credence is
given to the feedback from the Associates.
7
BASIC MODELS /PRODUCTS SOLD BY HSCI
HSCI currently produces the Honda City, Civic and Accord models in India and the CRV
is sold as a full import from Japan. The company operates under the stringent standards
of ISO 9001 for quality management and ISO 14001 for environment management.
Company's products include the 7th Generation Honda "ACCORD", launched in August,
2003 and New Honda "CITY", launched in October, 2003. The company is also engaged
in selling its CR-V model through the CBU importation programmed from Japan.
THE INDIAN AUTOMOBILE MARKET
There is a cutthroat competition existing in India particularly in the Indian Automobile

market today and this has particularly happened because of the liberal policies of the
government. The consumers of today have become aware of what actually they want
particularly in an automobile. For example, consumers now demand the fuel efficient
vehicles and they have started showing concerns towards the environmental pollution.
Therefore the car manufacturers have to consider the consumer preferences.
Extensive research and development, option of alternate fuels, clean technologies and
quality control to oversee adherence to product conformance will shape the future of
automobile sector in India. The Government of India is slowly catching on to this trend
and would soon demand of the automobile sector such advanced technologies.
8
PEST ANALYSIS
THE POITICAL ENVIRONMENT
 Open Economy: India has recently opened up the economy and hence there is
tremendous scope in terms of growth here. As one of the emerging markets in
Asia, it has a lot of potential as the earning power of people increases. (+)
 Liberalization policy of Congress: The liberalization policy of the government

started in 1990s has reaped tremendous benefits at this stage. The Indian economy
has opened up and if such policy continues to be the agenda of the government
then it would pave the way for one of the most exciting markets for cars. (+)
THE ECONOMIC ENVIRONMENT
 Rising GDP and per capita Income indicates growth of economy and hence
rises in demand. (+)
 Segmentation: Younger generation has more disposable income with increasing

salaries & they are also perceived to be more technology savvy & ecologically
conscious. 58% of Indian population is youth population!! (+) This will be the
target market for the next few coming years.
9
 Low Interest Rates and Easy access to credit encourages spending. (+) Therefore
this will encourage the consumers to even those people who do not have lump
sum money but they wish to purchase the car.
 Trends of using Credit cards: This is an indicator of changing buyer behavior as

the Indian customer is increasing spending while buying goods on credit with
greater ease. ”Buy now pay later” have indirectly influence the sales in a positive
manner. (+)
 Employment: With the opening up of many dealership centers, and Honda

centers at various places in India, this has led to employment creation in India.
 Self reliance on the part of women has created a new market segment in itself
for the automobile industry. Women are more receptive of “something new”. (+)
10
THE SOCIO CULTURAL ENVIRONMENT
 Today’s society judges people on the type of car you drive. Society does not like
to admit to this but it is very true. Manufactures know this happens and targets
their markets by these thoughts. For example, anyone who drives a mini van is
perceived as a soccer mom. This is because the manufactures target mini vans to
mothers. Anyone who drives a nice vehicle is thought to be wealthy. No one
wants to be seen driving an unattractive piece of junk because of what other
people will think of him or her. Consumers also just feel better when they are
driving a nice or new car; it makes them feel better about themselves. Therefore
the car you buy reflects your social status also.
 Another aspect of the sociocultural is the environmental concerns for the need of
fuel-efficient vehicles.
THE TECHNOLOGICAL ENVIRONMENT
 Opening up of Indian market to foreign investors has created a rush of new

technologies. There is a thirst to grasp more and more of latest technologies by
the car manufactures. However, the R&D expenditure of HONDA has reaped
good benefits, making the cars best among its league. (+) and also coming up with
newer and newer models.
SUMARY OF PEST
 Political environment – Largest democracy, era of coalition governments, fair

amount of political stability, political consensus on economic reforms and higher
target of growth of the economy, sound legal system – a factor contributing to a
large foreign direct investment.
 Economic environment – continued economic liberalization, encouragement to
foreign investment, big growth in services sector, controlled inflation in recent
time, reasonably stable exchange rate, scarce and costly energy, abundance of
11
skilled low cost labor, easy availability of raw material being a major producer of
steel.
 Social environment – large middle class, major changes in life style, a major
increase in urbanization, consumption, both parent working, nuclear families,
leisure activities, and trend of using credit cards.
 Technological environment – technology import liberalized and a significant
effort in internal technology development.
 Increasing affluence of urban consumers would ensure reasonable demand for
cars. The changing lifestyles indicated an increase in demand for cars in the mid
price segment.
 The changing buying behavior of the consumers shows that they are becoming
choosy and looking for styling, comfort, etc, and fuel efficiency conforming to
environmental standards.
 Technologically the industry is experiencing major changes. The technology
rests with very few players in the world.
 Intense competition is indicated in the coming years.
COMPETITIVE ANALYSIS
PORTERS 5 FORCES MODEL:
We’ve used the Porters 5 Forces Model to gauge the industry attractiveness
 Threat of new entrants
 The threat of new entrants is very low in the automobile industry. The
industry is very mature and it has successfully reached economies of scale.
In order to compete in this industry a manufacture must be able to achieve
economies of scale. For this to occur, manufacturers must mass-produce
the automobiles so that they are affordable to the consumer.
 Another barrier to entry is that it takes an incredible amount of capital to

manufacture the automobiles. It takes an extreme amount of capital not
12
only to be able to manufacture the products but also to keep up with the
research and development that is necessary for the innovation
requirements.
 Access to distribution channels is another high barrier to entry. A

company must find a dealership to sell their automobiles or have their own
dealership. Space in the dealerships lots is very limited making it difficult
to have a wider variety of inventory.
 Brand Identity: Honda brand name is almost known all over the world
and its reputation in India is very strong. (+)
 Government Policy: The government has a very open policy in the

automobile sector with almost negligible control over the companies
(major companies) coming to India Hence, there would be no control over
who can come up with a new technology and a new model in the Indian
market. (-)
 Learning curve: HONDA has a huge learning curve in the Indian market
and since it has been here long enough to know its customers, it can
envisage their needs in a better way than any other new entrant. (+)
 Bargaining power of suppliers
 The bargaining power of suppliers is very low in the automobile industry.

There are so many parts that are used to produce an automobile, that it takes
many suppliers to accomplish this. When there are many suppliers in an
industry, they do not have much power. There are so many suppliers to this
industry; manufactures can easily switch to another supplier if it is
necessary.
13
 Bargaining power of buyers.
 The bargaining power of the buyers is moderately high. The buyers being
consumers purchase almost all of the industries output. The manufacturers
depend on them to stay in business. The buyers also are a significant
portion of the industries revenue. If they can not keep their buyers happy
then there is a risk of losing them to their competitors. The buyers have
low switching cost because if they are not happy, they can easily switch.
All the buyer has to do is sell the car they own and purchase a new one.
 The reasons why the power is not completely high is that the buyers are
not large and few in number. The buyers do not have the ability to
integrate backwards into the industry. If they want a car then they have to
purchase it from a dealership.
 Threat of Substitute Products
 There are not many substitute products for automobiles. Some of the
substitutes are walking, riding bike or taking a train. Substitutes products all
depend on the geographic location of the consumer. In some cities such as
New York or Chicago, a car is not as necessary. In cities such as those, the
subway is the most effective means of transportation. However, in most places
a person must have to access to an automobile in order to get around.
 Intensity of Rivalry among Competitors
 Rivalry among the competitors is very strong is this industry. The major
competitors are so closely balanced that it increases the rivalry. In order to
gain market share in the automobile market, one must gain market share
by taking it from their competitors.
14
 One of the other reasons there is such high rivalry is that there is a lack of
differentiation opportunities. All the companies make cars, trucks or
SUV’s. The competitors are compared to one another constantly. The
price, quality, durability, and many other aspects of different
manufacturers are greatly taken into consideration when deciding what
type of vehicle to purchase. When the different manufacturers advertise
they even compare their products to their competitors. For example, the
commercials will focus on areas where the company outperforms its
competitors.
CUSTOMER ANALYSIS
 Who buys the product?
Individuals: People who buy it and use it for them.

Taxi Services and Rentals: They would be interested in buying a car which
provides maximum luxury and fuel efficiency at the same time.
 What is bought?
Car, convenience, comfort, luxury, peace of mind
 Where do they buy?

From the company’s showroom and dealers.
 When do they buy?

When a genuine need arises or maybe a gift on birthday, festival (e.g. In Diwali
when they get bonus), on New Year etc.
 How is it bought?
 When the need arises: When they need to travel, additional car for the
family as the luxury item or as a status symbol. There is a growing trend
among the customers to posses the latest gadgets.
15
 Information Search: Customers will visit dealers, websites, company’s

websites, refer auto magazines, peer reviews, TV shows (CHALTI KA
NAAM GAADI on CNBC), Documentaries etc. to obtain maximum
information about the car and its technology.
 Evaluation: Customer will be influenced by Performance, Fuel Economy,

Luxury, Brand Name and many other factors before coming to a decision.
CORE COMPETENCIES:
Honda has a core competency in building small petrol engines with efficient profiles.
Apart from it the other core competencies are
 The cars performance in terms of fuel efficiency

 Delivery/guarantee of quality and reliability
 Research and Development into the Hybrid Technology
However, what differentiates it from the other auto makers in is the performance
of its car. Thus it needs to focus on improving the performance of its car by keeping up
with the R & D work
SWOT ANALYSIS
 Strengths
 Familiar brand name
 New age design.
 Reputation for producing high quality products.
 Honda has won many awards for initial quality and customer satisfaction
 Automobiles are reliable and generally fuel efficient
16
 Strong research and development which has afforded them competitiveness in

quality products.
 They were a pioneer in engineering low emissions internal combustion and
hybrid technology.
 Honda is the only other manufacturer outside of Mitsubishi to branch out into
many other areas outside of automobiles
 Huge learning curve.
 Weaknesses
 Prices are higher for non-luxury vehicles than comparable modals by other
manufactures.
 Opportunities
 To continue progressing low emission vehicles and alternative power sources.
While they have made progress in this area, the technology is still overpriced
for the consumer, and the infrastructure does not exist.
 Another area of opportunity would be developing nations like china and India.
These are large markets, and cheap dependable transportation would be a hot
seller.
 Easy Financing
 Threats
 If continuous innovations are not done, then competitors will beat you with
last year’s technology.
 Strict environmental Laws like EURO III Norms.
 Liberal Government Policies.
17
INTERNAL FACTOR ANALYSIS SUMARY
IFAS (Internal factor analysis summary) table

Internal Weight Rating Weighted Comments
Factors score
Strengths
S1. Brand Name .20 4.0 0.80 Creation of goodwill.
S2. Reliable and fuel .20 3.5 0.70 Preference factor for the
efficient automobiles users.
S3. Strong R & D .35 3.0 1.05 An aid to overcome

competitor’s threat.
S4. High Reputation for .10 4.0 .40
producing high A reliable company.
quality goods.
Will attract style
S5. New age design. .05 3.0 0.30 conscious potential
customers like youth.
Will help in better

S6. learning curve .05 3.0 0.15 understanding the
customers need.
Weaknesses
W1. Higher prices for Threat of losing potential

non luxury vehicles .05 3.5 .175 customers.
as compared to other
Manufacturer.
Total Score 1.00 3.575
18
EXTERNAL FACTOR ANALYSIS SUMARY
EFAS (External factor analysis summary) table

External Weight Rating Weighted Comments
Factors score
Opportunities
Encouragement for
O1. Easy Financing. .20 .20 .40 Indian middle class.
O2. Boom in low priced

technical product .25 3.75 0.937 Need to reduce the
Market. price of cars.
O3. Untapped markets of .25 3.0 .75 Market expansion.

Developing nations like
China.
Threats
T1. Strong Competition like .20 3.5 .70 Need to maintain the
Toyota corolla is its rival, quality and lower the
(which has competitive price.
pricing and a fantastic
warranty package).
T2. Strict environmental R&D Department

Laws like EURO III needs to come up
Norms. .05 2.5 .125 with environmental
innovations.
T3. Liberal Government Threat of new

Policies. .05 2.0 .1 entrants.
Total Score 1.00 3.012
19
STRATEGIC FACTOR ANALYSIS SUMARY
STRATEGIC WEIGHT RATING WEIGHTED SCORE

FACTORS
S1. Brand Name(s) .10 3.0 0.3
S3. Strong R & D(S) .20 3.75 0.75
S6. learning curve(s) .10 2.75 0.275
W1.Higher prices for

non luxury vehicles
as compared to other .20 2.5 5.0
manufacturer.(W)
O3. Untapped
markets of .20 3.75 0.75
Developing nations
like China.
T1. Strong
Competition like .10 3.0 0.3
Toyota corolla is its
arch rival, (which has
competitive pricing
and a fantastic
warranty package).
T2. Strict
environmental Laws
like EURO III Norms. .05 2 0.1
T3. Liberal .05 2 0.1

Government Policies.
TOTAL SCORE 1.00 7.575
20
TOWS MATRIX
SO
It reflects how strengths can be used to take advantage of opportunities .Honda Siel has a
highly reputed brand name and it has a strong hold in research and development.
Therefore it can manufacture the fuel efficient vehicles with low cost and can
successfully launch many hybrid vehicle models and through this it can tap the untapped
markets of both India and China
WO
It implies how you overcome your weaknesses to take advantage of your opportunities.
Honda Siel needs to produce the vehicles with more cost efficient manner so that it
produces the cars at lower price and can tap the untapped market in India and China
where customers require low priced cars.
ST
It implies how the strengths can be used to overcome threats. Since Honda Siel has a
huge learning curve and also it is extensively involved in new innovations and continuous
research and development. Therefore it can utilize its strength to overcome the weakness
of strong competition especially from Toyota and liberal government policies which
makes the entry of foreign firms easier. Therefore it can use its strong learning curve to
overcome its competitors because it understands its customers well.
WT
It implies you overcome your weaknesses to avoid threats. Honda can produce the cars
with cost efficiency through its continuous innovation so that prices are low and through
continuous innovations it can produce the stylized cars at low prices. Therefore it would
be able to overcome its competitors. It can come up with new models for other segments
also through its innovations
21
TOWS MATRIX
Internal Factors Strengths(S) Weaknesses(W)
External
Factors
Opportunities(O) SO Strategies WO Strategies
Use strong R&D and Brand Lower the price by

Name to tap the producing the vehicles in a
untapped markets of developing more cost efficient manner
nations like India and China and so as to tap the untapped
produce the low emission markets.
vehicles by using alternate
sources of energy.
Threats(T) ST Strategies WT Strategies
Use the huge learning curve and Avoid the threat of your
strong R&D to overcome competitors by producing
competitors and avoid the threats low priced cars and focus
from new entrants also. not only on the premium
segments but focus on
some other segments also.
22
STRATEGY
FUNTIONAL & COOPERATIVE STRATEGIES
 Till date, HSCI’S strategy has been to create value through expanded sales via
innovation in research and manufacturing. Instead of having one large
manufacturing plant, it uses an idea of “manufacturing products where they are
sold”. In this way manufacture is increased in areas where sales increase. This
practice has led to over one hundred manufacturing plants in over thirty
countries, a process they call “globalization”. They also are guided by a
commitment to the future. This ideal is reflected in several ways. Low emissions
vehicles are one example, anther are manufacturing plants that are focused on
environmental friendliness as well as efficiency and quality.
Till now the focus is on the premium segment in India for the time being as it was
bringing in the required volumes. They can focus on C and D segment cars where they
have a market share of 14%.
However, they should not ignore the other segment in order to avoid threats from their
competitors.
 Till date the implementation of ideas in a planned manner has helped the
company in achieving the progress it has achieved. The work culture at Honda
has made the implementation of ideas possible At the concept level, IT projects
are discussed with department heads, functional heads and the management; at
the user level different kinds of technical training is also carried out. The
company also invites some IT companies to share their thoughts about the
benefits of IT with certain users.
The result of all this is that IT at Honda Siel has helped the company cut costs and save
on manpower generation of different IT projects easier.
23
 It was Honda's policy not to offer discounts to push sales as such a strategy
lowered the image of the product. However Honda Siel did reduce the prices
because of excise cut. Honda should follow the same strategy of not giving any
discounts but it can come up with new lower priced models.
Since it has a great threat from Toyota which has a competitive pricing, therefore HSCI
needs to produce the cars at low prices also so as to cater other segments as well as it can
come up with the new products say with Hybrid technology cars which are few in
number in India. Therefore it can go for diversification where it can cater to newer
markets with new products or it can serve the same segment with newer products like the
hybrid cars.
 In tandem, Honda Siel Cars India has decided to increase its sales network from
the existing 55 dealerships to 100 outlets by 2008. It has dealerships in metros
and Tier I cities (Ahmedabad, Jaipur, Chandigarh, Ludhiana Surat, Kochi, etc)
and will now focus on Tier II cities (Jammu, Hubli, Jamshedpur, Jodhpur, etc) to
service a production plan to make one lakh medium sized luxury vehicles apart
from small cars. The company has set up additional regional sales office in
Mumbai and Chennai. Its existing offices in Greater Noida and New Delhi are
currently looking after the north and east.
Toyota and Honda have taken nine and 11 years to have a chain of 57 and 55 dealerships
respectively. Analysts believe it is a tough call though not as difficult as the initiative of
Tata Motors to scale up to 600 outlets from the existing 140 dealerships by 2008.
 Honda Siel Cars India Ltd (Honda) is firming up marketing plans to attain a
turnover of Rs 850 crore in fiscal 2000-01 up from Rs 700crore in 1999-00. The
marketing focus for the fiscal: to expand into secondary towns, focus on
enhancing market share in the south, maintain adequate level of media-spending,
rope in consumer finance companies with strengths in local markets, associate
with the hospitality sector for inviting prospects and build an interactive Website.
24
 Consolidating organized financing with consumer finance accounting for around

65 per cent of sales, Honda is now planning to consolidate organized financing --
at present it has tie-ups with ICICI and Standard Charted. ``Halfway through the
year, they may go for regionalize-ups with players having strengths in local
markets,'' says Gupta. The tie up with Standard Chartered and ICICI gives Honda
an internal rate, which is less than one per cent of the market rate (15 per cent
now).
MARKETING STRATEGY
The company can opt for penetration pricing in order to capture a larger market share.
This can be done through rapid technological development and new innovations in which
they can develop new products which are low priced and through this it can cater to the
needs of other segments also.
PRODUCT DEVELOPMENT STRATEGY
Since Honda Siel Cars India is having a strong edge in Research and development,
therefore they can focus on this to come up with newer and newer products as per the
customer’s requirements.
ADVERTISING AND PROMOTIONS STRATEGY
They can use the pull strategy in order to attract more customers through offers and lower
price models. The Brand promotions can be done through using the distribution network.
25
RESEARCH AND DEVELOPMENTS
They should continue to follow the same strategy in research and development as they are
following now i.e. continuously investing in R&D and keep coming up with new
innovations and products so as to maintain their leadership position in R&D.
OPERATIONAL STRATEGY
In this they can go for modular manufacturing strategy i.e. preassembled subassemblies.
The parts of the car can be made and stored in different units. As per the order of the
customer a group of workers can assemble the cars at a high speed mode and can make
the car available within the short period of time. This will enable the company to follow
and enhance Just in Time approach.
26
BIBLOGRAPHY
1) www.hondaindia.com
2) http://world.honda.com/HondaSielCarsIndia/
3) Auto Expo, Volume II, July 2006
4) Strategic Management and
27

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For useful Documents like this and Lots of more Educational and Technological Stuff Visit...

STRATEGIC MANAGEMENT PROJECT

HONDA SIEL CARS INDIA LTD.

Showcase Manufacturing Facility

Sales and Distribution Network

Honda's vision and role

Basic Models/ Products sold by HSCI

The Indian Automobile Market

Internal Factor Analysis Summary

External Factor Analysis Summary

Strategies Factor Analysis Summary

Showcase Manufacturing Facility

Sales and Distribution Network

Honda's vision and role

President and CEO

Regional operations of India

BASIC MODELS /PRODUCTS SOLD BY HSCI

THE INDIAN AUTOMOBILE MARKET

There is a cutthroat competition existing in India particularly in the Indian Automobile

THE POITICAL ENVIRONMENT

 Liberalization policy of Congress: The liberalization policy of the government

THE ECONOMIC ENVIRONMENT

 Segmentation: Younger generation has more disposable income with increasing

 Trends of using Credit cards: This is an indicator of changing buyer behavior as

 Employment: With the opening up of many dealership centers, and Honda

THE SOCIO CULTURAL ENVIRONMENT

THE TECHNOLOGICAL ENVIRONMENT

 Opening up of Indian market to foreign investors has created a rush of new

 Political environment – Largest democracy, era of coalition governments, fair

PORTERS 5 FORCES MODEL:

 Threat of new entrants

 Another barrier to entry is that it takes an incredible amount of capital to

 Access to distribution channels is another high barrier to entry. A

 Government Policy: The government has a very open policy in the

 Bargaining power of suppliers

 The bargaining power of suppliers is very low in the automobile industry.

 Bargaining power of buyers.

 Threat of Substitute Products

 Intensity of Rivalry among Competitors

 Who buys the product?

Individuals: People who buy it and use it for them.

 Where do they buy?

 When do they buy?

 Information Search: Customers will visit dealers, websites, company’s

 Evaluation: Customer will be influenced by Performance, Fuel Economy,

 The cars performance in terms of fuel efficiency

 Strong research and development which has afforded them competitiveness in

INTERNAL FACTOR ANALYSIS SUMARY

IFAS (Internal factor analysis summary) table

S1. Brand Name .20 4.0 0.80 Creation of goodwill.

S3. Strong R & D .35 3.0 1.05 An aid to overcome

Will help in better

W1. Higher prices for Threat of losing potential

Total Score 1.00 3.575

EXTERNAL FACTOR ANALYSIS SUMARY

EFAS (External factor analysis summary) table

O2. Boom in low priced

O3. Untapped markets of .25 3.0 .75 Market expansion.

T2. Strict environmental R&D Department

T3. Liberal Government Threat of new

Total Score 1.00 3.012

STRATEGIC FACTOR ANALYSIS SUMARY