Case study reconciling managerial dichotomies at Honda motors

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Strategic management is the highest level of managerial activity, in general performed by the chief executive officer (CEO) and executive team of a company, used to specify objectives of the organization by developing policies and plans to achieve these objectives and reach the company's goals. Also it's a process of distributing resources of the company so as to pursue the plans.

Strategic management supply overall direction to the entire enterprise. An organization's strategy should be suitable for its resources, situations, and objectives. The process takes in consideration to join the companies' strategic advantages to the business environment the organization faces. The important objective of an overall strategy is to make the organization into a position to do its mission effectively and efficiently. A best corporate strategy must include an organization's goals, policies, and tactics into a cohesive whole.

Strategic management can be considered as combination of strategy formulation and strategy implementation.

1) Strategy formulation is first Doing a situation analysis: both internal and external and both micro-environmental and macro-environmental. Secondly, alongside with this assessment, targets are set. This includes crafting vision statements (long term), mission statements (medium term), overall corporate objectives (both financial and strategic), strategic business unit objectives (both financial and strategic), and tactical objectives. Finally, these objectives have to, in the light of the situation analysis, propose a strategic plan. The plan gives details about how to reach these goals.

This three-point strategy formation process determines where you are now, where you want to go, and then how to get there. These three questions are the basics of strategic planning.

2) Strategy implementation is affectation of adequate resources (financial, personnel, time, and computer system support), developing a chain of command or some alternative structure (such as cross functional teams), and posting responsibility of specific tasks or processes to specific individuals or groups. It also involves managing the process. This includes observation results, comparing to benchmarks and best practices, evaluating the efficacy and efficiency of the process, inspection for variances, and changing to another process if necessary. When execution specific programs, this involves having appropriate resources, developing the process, training, testing the process, documentation, and integration with (and/or conversion from) legacy processes.

(, accessed 12december2010)

II. Company's Background:

According to Honda Company is a producer of automobiles (such as CIVIC), trucks (Ridgeline), motorcycles (CBR), ATVs and scooters (SW- T600) also private jet (FAA). It is also a producer of electrical generators too, marine engines and kits for gardener and DIY (do it yourself). In 2008, Honda has sold more than seventeen million four-stroke engines, which made it the largest producer in the world.

From a young age, SOICHIRO HONDA the founder of Honda Company had a high interest in cars. He worked as a mechanic at Art Shokai in Japan, Art Shokai, where he transformed cars and introduce them in races. A self-educated engineer, he later worked on a piston design which he tried to sell to TOYOTA. The first drafts of his design were rejected, and Soichiro worked hard to make the design perfect, even going back to school and pawning the jewelry of his wife's as warranty. Finally, he succeeds and won a contract with Toyota and built a pistons factory for them, which was destroyed in an earthquake. Due to gasoline penury during World War 2, Honda was incapable to use the car, and his new idea of putting a small engine to his bicycle attracted lot of curiosity. So He installed the Honda Technical Research Institute in the city of Hamamatsu, Japan, to create, develop and produce 2 cylinder motorcycle engines. Contacting upon 18,000 bicycle shop owners in whole Japan to be part of revitalizing the nation destroyed by war, Soichiro received enough capital to build the Honda Cub, his first motorcycle; this was the beginning of Honda Motor Company, which will be the world's largest producer of motorcycles by 1964.

The first automobile produced by Honda was the T360 mini pick-up truck, which was on sale in August 1963. Powered by a small 356 cc straight-4 gasoline engine, it was classified under the cheaper Key car tax bracket. The first production from Honda of cars was the S500sports car, which come after the T360 into production in October 1963.Its chain driven rear wheels point to Honda's motorcycle origins.

As translated from Soichiro Honda said that dreams give meaning to life and until his death he will continue to intrude on new challenges and advise us that we must pursue our dreams.

Another person take part of this Honda dream is the business man Takio Fujisawa who said as reported and after I translated it from Honda .ma that he would have been disappointed if soichiro started talking about benefits and that would have meant to takio that soichiro was interested in his personal income but also declare that he was a great man who had a leading role. It was as if they all having secondary roles and having to build a theater - a society - to stage the main actor who is as said soichiro Honda.

(World Honda, accessed 12december2010)


Since the creation of Honda Company on 1948 seven leaders had take control of it (pictures are taken from Google .com/images):

1948-1973 - Soichiro Honda

1973-1983 - Kiyoshi Kawashima

1983-1990 - Tadashi Kume

1990-1998 - Nobuhiko Kawamoto

1998-2004 - Hiroyuki Yoshino

2004-2009 - Takeo Fukui

Since 2009 - Takanobu Ito

According to The only and exclusive retailer (importer and distributor) of Honda brand in Morocco is Universe Motors. Founded in 1973, Motors universe is retailer of various Honda products such as Automotive with its wide range of city cars, compact sedans, 4X4.Motorcycles with its rich and diverse range of road, custom, sports. ATVs (All Terrain Vehicle) targeting all enthusiasts from beginners to seasoned pilots. Also Honda's company Products of equipment likes pumps, generators, stationary engines and lawnmowers. And lot of other activities ...

The Honda brand is represented in ten important cities of morocco's kingdom: Casablanca, Rabat, Fez, Meknes, Marrakech, Agadir, Tetouan, Tangiers, Oujda and El Jadida.

(Honda Maroc, accessed 12december2010)

III. Company's Memorandum

• Company's Name:

Honda Motors Company, Ltd.

• Founded on:

Founded 24 September 1948

• Founders:

Soichiro Honda

Takio Fujisawa

• Legal Shape:

Public Company

• Industry:



• Employees Number:


• Headquarters:

Minato, Tokyo, Japan

• sub diaries:


Honda Aircraft Company

• Revenue: 120.27 billion dollars US (FY 2009)

• Website: (accessed 12December 2010)

IV. Question1

a)As define on QUICKMBA.COM any industry is influenced by five forces, the five forces model of Michael porter is an outside-in business unit strategy implement called also as competitive forces analysis and this analysis is based on 5 major competitive forces: RIVALERY, SUPPLIER POWER, BUYER POWER, BARRIERS TO ENTRY/THREAT OF ENTRY,THREAT OF SUBSTITUTES.

Michael porter defines according to the whole of interrelated generic activities as the Primary Value Chain Activities which is represented as below:










& Sales



The objective of these activities is generating a profit margin by creating value more important than cost for the product or the service,

These primary activities may be essential for developing competitive advantages

Porter distinguishes four other types of support activities which will facilitate the primary value chain activity: Procurement, Technology Development, Human Resource Management, And Firm Infrastructure.

(, accessed 13december2010)