Modern management of Honda Company Research Paper

Modern management of Honda Company - Research Paper Example Honda is the leading global developer of motorcycles and internal combustion engines. It is located in Singapore, Japan. This company became dominant over Nissan in 2001 and gained the position of one of the most successful and largest manufacturers in Japan. In 2008 Honda over passed Chrysler and became the greatest manufacturer in the USA. In the world the Company gains the position of the sixth largest manufacturer of automobile. As far as we can see, the company is a powerful and estimable competitor in the arena of the global automobile industry. In order to advance its positions in the modern world, Honda should increase its sales. Unlike its main competitors, the Detroit Big Three and Toyota, Honda gained a 1% increase of sales in America (The Official Website of Honda). Still, there is a need to focus more on the demands of global markets and take into account advanced needs if the customers all over the world. Two basic pillars of the modern demand of the automobile industry is environmental safety and energy efficiency. Moreover, in accordance with recent statistical data: â€Å"Honda is the largest engine maker in the world, producing nearly 11 million engines annually for its three product lines, including sales of engines to other manufacturers. Honda also builds products in more than 100 manufacturing plants in 33 countries, employing more than 125,000 associates globally† (The Official Website of Honda). The most beneficial strategy chosen by Honda in terms of economical crisis in the world can be illustrated by the Civic and the Accord automobiles. These models of automobiles are of mid-size and there is a high fuel-efficiency of the vehicles. There is also an essential flexibility of the automobiles. Moreover, within the last decade Honda managed to create their factories more flexible and these are able to reshape any Honda model of the automobile at any moment. Global locations of the Company’s plants in such countries as Canada , England, Brazil, Belgium and many others indicate their leading positions of Japanese market and the important role it plays globally (Honda Raffles Trip to Japan to Celebrate 20 Years).   Another benefit of Honda is its acknowledgement by the customers around the globe, because it produces economically friendly automobiles. Moreover, constant innovative developments indicate Honda’s ability to be successful in the global arena. High quality products at a low price- this is one of the main advantages of the company as well, especially in the post-crisis economical period. Environmental factors affecting business Modern automobile industry exists in a challenging global environment. Such factors, as social, political, economic and technological ones should be taken into account by the car producers. On the example of Honda it should be noted that this large car manufacturer is surrounded by preventive environmental factors. Political factors, such as degree of intervention in the economy, are rather influential external factor for automobile industry. There are set customers protection laws, which are focused on the safety of customers’ interests. Moreover, the qualities of the infrastructure of the economy as well as the knowledge of the workforce are determinant factors in the political context of the country. Practices of employment or labor laws are also important for the automobile industry. Workforce protection laws are followed by Honda. Moreover, a tendency for a constant innovations and technological advancement is also reflected by the policies of the Company. Economic Environment of Honda influences development of economically safe and reliable automobiles and engines, which are customer-friendly. Business decisions of Honda are developed with respect to the main concerns of economic factors (Khanfan & Loudon, 2008). There is a strong