Provide 3 recommendations to enhance the company\\\'s effectiveness in applying the external analysis

Refer essay below

Legal/Regulatory Analysis

Although, Honda is a Japanese based automobile company, it has numerous subsidiaries in Asia, Europe and North America. Besides, the manufacture of motorcycles, the company also produces sports equipments, marine engines, power generators, and luxury cars called the Acura (Scott, 2012). Since the country operates in different countries, there are external business challenges to be addressed.

In terms of legal factors, the company is expected to adhere to the laws and regulation of the country where it operates. For example, in most countries in North America and Europe, the working hours are standardized, and employees are only expected to work for 8 hours. What is more, employee wages are calculated per hours, hence making it difficult for the company to sustain wages and salary. In the United Kingdom, employment laws require companies such as Honda to pay £ 6.93 per hour as minimum wage. Consequently, this highly affects the sustainability of the company operation and profits (McBeth, 2009).

Another legal factor that influences the operations of Honda in its subsidiaries is the proposed policies by foreign countries. For example, in the U.S, North America and Europe, multinational companies such as Honda are required to provide insurance cover for employees and offer training for skill development. Besides, companies are required by law to install safety equipments to protect employees. Therefore, if Honda Company fails to adhere to the set laws and regulations, it could be de-registered of face a number of lawsuits.

Technological Analysis of Honda Company

Due to the advancements in technology, Honda will be required to make use of the latest technological trends to stay competitive. For example, in the development of its new SUV cars and the luxury cars called the Acura, the company should include satellite navigation systems for the purpose of tracking and security. Furthermore, the cars and motorcycles can be installed with Global Positioning Systems to make it easy to provide the location of their cars. Most importantly, the company is passionate about using technology to produce innovative products and challenge the boundaries of mobility advancements.

The impact of technology affects the market because people are shifting towards the purchase of environmentally friendly cars. In response to this customer need, the company has started the production of cars fitted with vi-Tec engines, which are friendly to the environment because they produce fewer emissions to the biosphere (Shook, 2008). Furthermore, the rising cost of petrol globally, the company has been forced to use eco-friendly technology in order to ensure that their vehicles have a sustainable future.

Socio-Cultural Analysis of Honda Company

Socio-cultural factors affect the customer needs and potential markets because of the demography and cultural aspects. For example, in the American and UK market, consumers have a higher preference for the local brand of vehicles such as Mercedes or Jaguar model of vehicles. Therefore, Honda Company had to change the belief of consumers by introducing the Honda Civic Hybrid, which is an eco-friendly vehicle (Nonaka & Takeuchi, 2005).

Another socio-cultural aspect affecting the operations of Honda is the language barrier. Especially when venturing into English speaking countries. Therefore, the company is forced to employ English speakers to help in the marketing of its products. Furthermore, many consumers perceive the Honda cars are too expensive; hence they are less preferred to Bentley, Benz and BMW. In this regard, Honda has to grapple with the task of changing the social and cultural aspects of consumers on their products (Mitchel, 2005).

Although, the culture of Honda Company is innovation and creativity through the use of technology, customers still perceive its products as overly expensive and overrated. Therefore, the company should redouble its efforts in producing affordable products and marketing them as eco-friendly.

The Customer Environment of Honda Company

The Honda Company operates in a complex and challenging industry, and the company needs to take into considerations the changing needs, tastes and preferences of customers for the successful implementation of its strategies. Since its inception, the Honda Company has always focused its attention on marketing its products in developed countries such as Asian and American countries. In spite of the immense profits it has generated, the company should be aware of the several opportunities available; such as, new investment opportunities in the Mediterranean, Africa and other developing countries. Therefore, the company should expand its target market to ensure that the current and potential customers accept the products.

The overall brand position for Honda is manufacturing of efficient luxury cars. To deal with competition from its key rivals; Mercedes, BMW and Ford, Honda has adopted the "Joy III campaign" as its main strategy in addressing the concerns of its current and potential customers. The Honda philosophy is "joy of buying, selling and producing" which appeals to a larger market segment such as women, the youth and the family. Besides, the cars are now marketed with new product attributes such as reliability, pleasure, fuel efficiency and new car models (Alexander, 2009).

For a long time, the Honda Company has been focusing on producing cars that are more suitable for the working, middle and high class people in society. Although, Honda has succeeded in producing different models of cars for its consumers, the target market has always been limited to a specific segment. As a result, young people and unemployed have not been able to afford Honda cars, which have been perceived as too expensive and costly. However, to develop a formidable marketing strategy, Rothfeder (2014) argues that the company should shift its focus and target the urban youth market, which is extremely marketable in the automobile industry. This can be achieved by introducing new models aimed at attracting customers from this segment of the market. However, the company should be ready to venture into the market segment with branding difficulties due to the market share held by its competitors.

The company needs to intensify its marketing campaign because its cars and motorcycles are perceived as extremely expensive in comparison to other companies.

Currently, Honda cars focus mostly on the rich and affluent in society since the cars are exorbitantly expensive compared to models like Toyota. However, the prevailing needs of current and potential customers include fuel efficiency, affordability, reliability and durability (Rothfeder, 2014).

Honda has been exceptionally successful in the adoption of the 5W model. In terms of "who," the company strives to reflect positively in the society. In terms of "what" Honda vehicles have been regarded as highly efficient in terms of performance. In terms of "where" the company has strategically positioned their vehicles as the "ultimate driving machine" owing to the design and modification of their automobiles. In terms of "why," the company produces uniquely designed cars for comfort, class, style and elegance to satisfy the needs of customers. Finally, in terms of "when," the company has positively used technology to produce automatic cars, which can be tracked and operated using technology (Honda.com, n.d). Therefore, Honda has been highly successful owing to its unique brand, and differentiation of its vehicles, thus gaining competitive advantage in the market. The company continues to produce fuel-efficient cars that are affordable and stylish.