COMPANY INTRODUCTION:

 HONDA get started in 1930’s.

 Established as company on 24sept.1948.
 Its main headquarter is in TOKYO, JAPAN.
 SOICHIRO HONDA, the founder
 TAKEO FUKUI, the CEO

MISSION STATEMENT:

 We see "The Power of Dreams" as a way of thinking that

guides us and pushes us forward. The strength of our
company comes from this philosophy — which is based on
the visionary principles of our founder, Soichiro Honda.

 We see the world not as it is, but as it could be.

 We see the world through the eyes of dreamers. Because we

are a company founded by a dreamer. And we are a company
built on dreams.
PRODUCTS:

Honda Atlas Cars (Pakistan) Limited is offering different models

of Honda cars motorcycles,generators,water pumps in wide range
of colors with unique technological and other features.

 AUTOMOBILES

Accord
CRV
Civic

 MOTORCYCLES
CD-125
CD-100
CD-70
  GENERATORS

•EU1000iA (1000 watts, 120V)

•EU2000iA Camo (2000 watts, 120V)

•EU6500iSA (6500 watts, 120/240V)

 Strategic Business Units:

AUTOMOBILES

Honda's global lineup consists of the Fit, Civic, Accord, Insight, CR-V, and
Odyssey. An early proponent of developing vehicles to cater to different
needs and markets worldwide, Honda's lineup varies by country and may
feature vehicles exclusive to that region. A few examples are the latest
Acura TL luxury sedan and the Ridgeline, Honda's first light-duty pickup
truck. Both were engineered primarily in North America and are exclusively
produced and sold there.

MOTOR CYCLES
Honda is the largest motorcycle manufacturer in Japan and has been since it
started production in 1955. At its peak in 1982, Honda manufactured almost
3 million motorcycles. By 2006 this figure had reduced to around 550,000
but was still higher than its three domestic competitors.

During the 1960s, when it was a small manufacturer, Honda broke out of the
Japanese motorcycle market and began exporting to the U.S. Taking
Honda’s story as an archetype of the smaller manufacturer entering a new
market already occupied by highly dominant competitors, the story of their
market entry, and their subsequent huge success in the U.S. and around the
world, has been the subject of some academic controversy. Competing
explanations have been advanced to explain Honda’s strategy and the
reasons for their success
 Power Equipment

Production started in 1953 with H-type engine (prior to motorcycle).

Honda power equipments reached record sales in 2007 with 6,4 million
units. By 2010 (Fiscal year ended March 31) this figure had decreased to 4.7
million units. Cumulative production of power products has exceeded 85
million units (as of September, 2008).
Honda power equipments include:
Tiller
Lawn mower
Riding mower
Trimmer
Sprayer
Hedge trimmer
Snow thrower
Generator, welder
Water pumps

JET ENGINES
ROBOTS
AIRCRATS
MOUNTANIE BIKES
MOTOR SPORTS
Electric and alternative fuel vehicles

Compressed natural gas

Flexible-fuel
Hybrid electric
Hydrogen fuel cell
BCG Matrix
The Boston Consulting Group (BCG) Matrix is a
simple tool to assess a company’s position in terms
of its product range. It helps a company think
about its products and services and make decisions
about which it should keep, which it should let go
and which it should invest in further.

Figure 1
  Stars
Stars generate large sums of cash because of their strong
relative market share, but also consume large amounts of
Cash because of their high growth rate. So the cash being
spent and brought in approximately nets out. If a star can
maintain its large market share it will become a cash cow
when the market growth rate declines.
AUTOMOBILES businesses stand in Stars business in Honda
Company because of its good growth rate and high market share.
This business is generated the maximum part of its company.

 Cash Cows
As leaders in a mature market, cash cows exhibit a return
on assets that is greater than the market growth rate – so
they generate more cash than they consume. These units
should be ‘milked’ extracting the profits and investing as little
as possible. They provide the cash required to turn question
marks into market leaders.
MOTOR CYCLES business has high market share but its growth
is decreased with the time because of tough competition. So it
included in cash cow business category in Honda Company.

 Question Marks
Question marks are products that grow rapidly and as a
result consume large amounts of cash, but because they
have low market shares they don’t generate much cash. The
result is a large net cash consumption. A question mark has
the potential to gain market share and become a star, and
eventually a cash cow when the market growth slows. If it
doesn’t become a market leader it will become a dog when
market growth declines.
ELECTRIC AND ALTERNATIVE FUEL VEHICLES
ROBOTS
AIRCRATS
MOUNTANIE BIKES
MOTOR SPORTS
These are all business required maximum investment because these
are having a good market growth rate. Honda Company trying to
increased the production of these things from investing in this
sector.
 Dogs
Dogs have a low market share and a low growth rate and
neither generates nor consumes a large amount of cash.
However, dogs are cash traps because of the money tied up
in a business that has little potential. Such businesses are
Candidates for divestiture.
Power Equipment production of Honda Company with passage of
decreased due to less demand in market. So the company trying to
closed down these things production because of low market share
and low growth rate.

Decisions after Analyses BCG

•Build Market Share: Make further investments (for example, to maintain

Star status, or turn a Question Mark into a Star)
•Hold: Maintain the status quo (do nothing)
•Reduce the investment (enjoy positive cash flow
and maximize profits from a Star or Cash Cow)
•Get rid of the Dogs, and use the capital to invest
in Stars and some Question Marks.
 Assignment # 1

Subject : Principal of Marketing

Submitted To: Miss Sadaf Nagi

Submitted By: Naveed Nasir

Shoaib Qureshi

Faisal Ghais

Babar Khan

Date: October 28, 2010

FEDERAL URDU UNIVERSITY OF ARTS,

SCIENCE AND TECHNOLOGY
ISLAMABAD