SUBJECT-STRATEGIC MANAGEMENT PLEASE HELP ME TO FIND THE ANSWERS AS SOON AS POSSIBLE. THANK YOU SO MUCH, HAVE A NICE DAY WITH YOUR FAMILY AND FRIENDS :) Case Study on Honda Ever since the days of Henry Ford, the global car manufacturing industry, one of the world's biggest employers, has blazed the trail in both the product innovation, and perhaps most notably for the Japanese motor industry, the development of leading manufacturing methods. The industry is not unlike many others, with blistering competition on all fronts, which makes strategic planning utterly important for both the sort as well as long term survival of any industry player. The ratification of the Kyoto Protocol for instance, spurred car manufacturing companies into the adoption of strategies such as the "closed-loop-strategies", in the not only the development of more efficient engines, but also the production, distribution, operation and ultimately recycling of decrepit cars etc. With over 182,000 employees, 10,011, 241 million in annual revenues in 2009 coupled with upwards of $ 1370.1 million$ and 1896.4 in operating profits for the FY 2008 and 2009 respectively, Japan's Honda is easily the industry's biggest manufactures of motor cycles, besides being a among the leading automobile producers. Operating across the globe, Honda is involved in the development, manufacturing as well as marketing and distribution of motor cars, motor cycles and a range other power products (Honda Ltd, 2010). RECONCILIATION OF DICHOTOMIES Honda ltd's strategic innovation is founded on a process of dichotomies reconciliation which include both learning and planning, positioning on the market vs. internal resources development and lastly, core competencies related to the product against the core capabilities related to the processes. These three dichotomies do representing divergent strategies etc that drive Honda as a company since its establishment and through years of exemplary growth and expansion. De Wit & Meyer (2010), assert that a critical look at Honda's strategies points especially its successful entry and dominance of new markets raises questions as to whether, Honda's strategy and subsequent decision making is solidly based on a meticulous, analytical and rational planning or whether its strategies are a direct result of the some decisions/ strategies reached at by the company, which evolved or became modified due to the environmental influences of the industry in which the company operates. PLANNING v. LEARNING While designing its strategies, the company has consistently followed a rational approach based on a critical analysis of the market and the industry environment. This strategy hinges on and it suited for a seasoned industry player such as Honda, since it seeks to built on, and exploit the company's immense experience in the automotive industry (Johnson et al., 2005). As a strategy, this is an important bottom up strategy that uses the already gained knowledge to optimize the company's needs. Planning takes into consideration both the company's resources as well as the environmental factors, as such will most likely utilize the company's set objectives within the constraints. Honda's largely seen as having successfully employed the planning strategy while entering into new markets notably while launching into the US motor cycle industry. Its recent strategic alliances with GE as well as its design and launch of innovative new products and expansion of manufacturing plants, in the ultimate attainment of huge scale economies and extremely law costs represent examples of internal planning. Planning is largely apparent from an outsider's point of view. However, interviews with the company's top management reveal a far different picture that suggests at best a company that is far from an overly rational, academic planning seeking to impose its corporate values and policies on the market and the industry, but rather a company, with a management structure that is at all times willing to learn. It is evident and widely accepted by many observers that Honda's strategies have evolved, without a clear plan or analysis of the industry. "POSITIONING" VERSUS "DEVELOPMENT OF INTERNAL RESOURCES" Honda's positioning helps its brand to be associated with a given market segment. It is an equally helpful guide to the company's other strategies, particularly the marketing strategy, not least because it does clarify the essence of the brand and the helps the consumers to better identify the goals that the product seeks to meet in a unique way. In positioning a product or brand, managers must make decisions, seeking to appeal a given segment of the population, while at once risking losing the other(s). Honda has placed its various products on the basis of benefit, target, distribution as well as prices. The company offers competitive prices owing to its scale and technology advantages, which in turn permits it to achieve better client franchises. This strategy does however; affect the prestige of the brand, besides reducing the profit margins. Target, distribution and benefit positioning, that has seen the introduction of green models to serve the needs of green conscious clients, coupled by Honda's expansion into India, China and Vietnam, which was entirely meant at catering for emerging middle class in those countries. As against, development of internal resources, Honda's product positioning allows it to use fewer resources but still reach the target markets. It however, has enormous resources in capital, management, cutting production technology as well as manpower, which have driven the company's expansion across the globe. More investment in R&D is, and has been possible, leading to greater innovation. While other smaller industry players struggle with limited resources constraining their R&D as well as expansion, bigger companies like Honda, Toyota and GM can attain a better edge in the industry. Honda's has been able to pursue both strategies owing to the availability of niche products that it has successfully positioned e.g. motor bikes in Vietnam (over 400,000 units in annual sales), coupled by its huge availability of resources which allows it rope for R&D, diversification and expansion. This does not entirely hold though, Honda spends just a fifth of GM expenditure on R&D and launches fewer models than the latter, yet it products/models are more successful than GM's. CORE COMPETENCIES' VERSUS 'CORE CAPABILITIES' Competencies are as a result of coordination of multiple production skills as well as a complex coordination of numerous technologies. They give a company access to newer markets; provide high barriers for competitors to enter the market, besides contributing considerably to the benefits of the end product(s). Honda's core competencies as regards products are the driving force behind the development of the numerous, innovative end user products. Hamel & Prahalad regard Honda's product competencies as a brilliant example of how a small company can break into, and establish itself in a mature, stable market. In 2010 alone, Honda has set up a solar H2 station (Los Angeles), introduced the versatile iGX and GX engine series for general purposes. The company has as well produced lithium-ion based batteries intended for the new range of hybrid motor vehicles, alongside an ELC to spear head its green agenda. Honda is famed for its ability to recycle technologies in all its range of products, affording it R&D efficiency. There are elements of core capabilities associated with its processes, but perhaps far lacking behind Toyota and many other industry players. These include efficient distribution channels, cost effective production processes. It trains dealers, determines shop floor plans and has strict operating procedures among others. Core product competencies in the automobile industry are far superior to the process capabilities and Honda's success is an outstanding testimony to this fact. Questions 1. What are Honda's distinctive competencies? Explain. 2. Discuss Honda's strengths and weaknesses