Presentation of Strategy Audit Findings 15 page paper and 10 slide ppt

Due Sunday, December 8, 2013

Assignment 2: —Presentation of Strategy Audit Findings

In this assignment, integrate all the pieces of work you have drafted and formally turn it into the capstone strategy audit.

In previous assignments, you performed multiple, specified analyses of your company (or any company of your choosing). Those individual analyses provide the needed research to successfully complete the following LASA.

Part I: Strategy Audit Report

Using the tools and framework learned in class and throughout the program, prepare a 15-page strategy audit of your company with a companion presentation. The strategy audit is a comprehensive analysis of the company’s business strategy and operating performance, and culminates in a series of recommendations for improving your company’s performance based on the findings and conclusions of your analysis.

A strategy audit involves assessing the actual direction of a business and comparing that course to the direction required to succeed in a changing environment. A company’s actual direction is the sum of what it does and does not do, how well the organization is internally aligned to support the strategy, and how viable the strategy is when compared to the external market, competitors, and financial realities. These two categories, the internal assessment and the external or environmental assessment, make up the major elements of a strategy audit.

In your strategy audit:

• Provide a high-level analysis of the company’s business strategy and operating performance. Be sure to complete the following:

Analysis of the company value proposition, market position, and competitive advantage External environmental scan/five forces analysis Internal environmental scan/organizational assessment SWOT Analysis Balanced scorecard/strategy scorecard

• Recommend specific tactics for improving your company’s strategic alignment and operating performance.
• Recommendations

can include but are not limited to tactics in marketing, branding, alliances, mergers/acquisitions, integration, product development, diversification or divestiture and globalization (if you recommend your company go global, you must include a supply chain analysis and an analysis of your firm’s global capabilities). Explain how the recommendations will help the company achieve its strategy and vision.

You are to write this report as though you are a consultant to your company, and are addressing the executive officers of this company. You will collect and analyze a large amount of data in producing your report, but your final product will be condensed and focus on presenting your analysis findings and conclusions.

Your report should consist of the following sections in the given order.

1. Executive summary (1 page): A concise and insightful summary of the significant findings of your analysis and the recommendations you have for your executive team.
2. Strategic issues and recommendations (5 pages): Identify 5–7 most important strategic issues facing your business unit. Strategic issues arise from a mismatch between internal capabilities and external trends such that important opportunities are not being pursued or significant external threats are not being addressed under the current strategy.

The strategic issues list should integrate your SWOT analysis, your Five Forces analysis, and the organizational assessment and external environmental scan completed earlier during the course. These detailed analyses are the foundation for your final set of findings and recommendations presented to the executive team.

In developing your recommendations for addressing each strategic issue, consider misalignments that might be apparent in different operating areas:

Product portfolio: Are there changes to the target market segment, value proposition, or positioning of the product or service line needed? Structure: Are the organizational roles and responsibilities, decision-making authority, skill requirements, and work assignments properly configured and aligned to support the strategy? Organizational culture or behavior: Does the organizational culture inspire behaviors that support the strategy? Are the mission, vision, and values clearly articulated and aligned with the strategy? What new behaviors are needed? Value chain activities: Does the organization value chain fully align with the strategy? Are their activities that should be added, eliminated, or modified significantly? Performance measures: Do the organization’s performance measures focus on the key drivers of strategic success? Is there a strategy scorecard that ties the main elements of the strategy to specific operating capabilities, including goals and key performance indicators (KPIs) that give an indication of incremental or predictive progress toward reaching strategic goals?

Your recommendations should fall into these general categories, but should be specific in terms of scope and expected impact.

These sections have been completed earlier in the course, and should appear as appendices:

1. SWOT analysis (2 pages—completed in Module 4): SWOT matrix illustrating strengths, weaknesses, opportunities, and threats.
2. Balanced strategy scorecard (4 pages—completed in Module 4): Develop a Balanced Scorecard for your business unit that reflects the key drivers for your business strategy.
3. Organizational assessment (3 pages—completed in Module 3)
4. External environmental scan and five-forces analysis (3 pages—completed in Module 2)
5. Market position analysis (3 pages—completed in Module 1)

Use information from your previous assignments to support your conclusions and recommendations and conduct additional research when needed. Make sure you properly reference and cite so that the location of information is clear.

Submit your 15-page report in Word format. Apply APA standards to citation of sources. Use the following file naming convention: LastnameFirstInitial_M5_A2 .

Part II: Companion Presentation

Finalize the companion with a 10-slide Power Point Presentation that summarizes the audit and recommendations in a compelling manner that persuades senior management to explore and possibly implement your recommendations. The elements of the presentation should include the following:

• Title
• Agenda
• Summary of audit

Recommendations

• Key measurements
• Risks and benefits
• Call to action
• Next steps

 

MARKET

POSITION ANALYSIS:

HONDA

1

MARKET POSITION ANALYSIS: HONDA 4

Market Position Analysis:

Honda

Market Position Analysis: Honda

In

the current economy it is vital that a

company

strive to sustain a competitive

advantage

. This paper will provide information on Honda

Motor Corporation

’s

market position

analysis and a strategy audit interview.

Honda Motor Corporation

was founded in 194

6

by

Soichiro Honda

. Honda is a global

company that

manufactures, produces and develops a diverse range of motor products, varying from

motorcycles,

small scooters

, and

engines to exclusive sports cars. The

company’s

business

segments

are automobile, motorcycle, financial services, and power product businesses. Honda manages its business strategies world-wide including Asia, Europe, and North America. Since its founding Honda has become one of the most recognizable business entities in the world. To obtain first-hand knowledge of the company it was essential to interview a top-level manager and get their perception of Honda’s products. The Interviewer met with and interviewed Tom Pickens, a manager for Tipton Honda. Tom Pickens started working for the Honda Motor Corporation for over

2

0

years ago. Comment by Thomas Kemp: Who is that employee? WEhat was his credibility and position to know what he was talking about?

Part one: Interview

Interviewer: Hello Mr. Pickens. Thank you for taking time from your busy schedule to meet with me.

Interviewee: You’re welcome. I look forward to providing you with information and my perspective of the Honda Corporation.

Interviewer: What is Honda’s value proposition and how does it benefit the customer?

Interviewee: The Value Proposition is integrated into Honda’s business strategy. Our number one goal is to provide the customer sustainable value and satisfaction. We at Honda continuously analyze and review benefits, value and costs in order to deliver satisfaction to our customers and forthcoming customers.

 

Interviewer: What are Honda’s Marketing Positioning Strategies?

Interviewee: Since 1946 Honda has been successful in building their product portfolio to what it is today and market position has been a key factor. Some strategies include: Out designing and out innovating competitors, utilizing intimate customer knowledge and building an incredible customer experience (Deluxe for Business, 2009).

Interviewer: What is your expert perspective concerning the preparation of and carrying out of Honda’s business strategies to enhance the company’s operation? What actions would your division take to achieve this?

Interviewee: My first action would be to review statistical data of our revenue and marketing initiatives. This will provide me an initial assessment of my division’s performance. It will also give me an evaluation of what models of new and previously owned cars are selling more than others.

Interviewer: How has this review and evaluation benefited your division?

Interviewee: With today’s advancements in technology it is vital to use business processes to improve strategic value. These days, the utilization of technology is essential and as the assistant manager a part of my responsibilities is to explore digital media options such as free, advertising-supported email service, Twitter, Facebook and Youtube.

Interviewer: That is a great utilization of free marketing resources for your marketing ventures. What has been your dealership’s biggest challenge lately? How is your management team dealing with this challenge?

Interviewee: A continuing challenge is keeping up the sales momentum and adjusting the inventory to meet varied customer demands. The resolutions have involved modifying and meeting sales projections weekly and forming sales events to keep momentum moving forward.

Interviewer: How did you lead the course of action to attain the positive results?

Interviewee: The way I lead the process was ensuring everyone was aware of the division’s goals. I worked with the marketing and sales team on digital media options and sales events. The marketing team is currently fostering division readiness, responding to all internet inquiries and all personnel respond to the varied customer wants and needs.

Interviewer: What recommendations do you have for similar businesses in regards to their strategic operations?

Interviewee: It is to their advantage to use digital media and provide an atmosphere for their staff to educate themselves and learn about the internet’s offerings. The challenge is to guide their team to use their time wisely and assimilate technology that benefits Honda, their dealership and its customer base.

Interviewer: What are the needs and wants of your customers?

Interviewee: From our recent survey poll the following was provided from our customers: publicized dealership events, more car amenities to include more color choices, and an extended warranty at no extra charge to include an increase in mileage allowance on car leasing.

Interviewer: In regards to competitive advantage, what benefits does Honda have over its competitors?

Interviewer: Three areas that best represent Honda’s competitive advantage is the Honda brand, Research and Development and Engineering design. From 65 years of being in business we have learned that providing a superior product at lower prices for equivalent products of our competitors counterweighs a higher price.

Interviewer: Tom, thank you very much for setting some time aside from your busy day to talk with me about the Honda Corporation and your Dealership. Your perception of Honda’s products and strategies has been very informative.

Interviewee: It has been my please and you’re very welcome.

Part two: Analysis

Customers are at the center of Honda’s marketing efforts and philosophy. Some tasks of Honda’s marketing team are to determine customer demographics and satisfy their expectations and needs better than competitors. Honda market’s to and successfully sells its product portfolio worldwide. Per Honda’s founder Honda Soichiro, “Maintaining an international viewpoint, we are dedicated to supplying products of the highest efficiency, yet at reasonable prices, for worldwide customer satisfaction” (Honda, 1956).

Using a common engine and transmission platform, Honda developed three distinct Honda models in the series to appeal to a broad range of customer needs. Their aim is to exceed the expectations of customers around the world by adopting an approach to meet their needs while transcending across international borders.

Honda’s target customers for motorcycle sales are men and women ages

16

to 70 and beyond. In fiscal year 20

12

, unit sales of more than 150 billion dollars of Honda motorcycles to their market customers increased by 9.17% from 2011. Honda’s product portfolio of automobile, motorcycle, financial services, and power product businesses that satisfy the customer’s wants and needs. Consumers look at products as packages of benefits and they buy the products that give them the best package for their money. For example, Honda’s Civic is a great fuel economy and low priced car; an Acura means status, luxury and comfort. Given their wants and needs consumers demand products with amenities that add up to the most satisfaction.

Honda uses the Maslow’s pyramid of human needs theory in their strategy. They start with safety by making owners feel safe while driving their car. Then they move to social status and instill a sense of upper class. Next they employ their marketing strategy by focusing on self-esteem needs of Honda owners and make them feel confident by owning a Honda. Comment by Thomas Kemp: [You draw strongly on research in your paper; however, research is there to support your own thoughts and opinions. This means that quotations should be integrated with your own ideas.]

Honda gratifies their consumer base by providing excellent quality in their products. Each trait that Honda gives to the wants and needs of consumers has surpassed customer expectations because of their economical, long-lived, well-engineered products. Honda has been the world’s largest motorcycle manufacturer since 1959 and their motorcycle riders know when they buy parts these parts seldom fail and exceed the amount of time stated for use. For example, exhaust pipes are engineered to last for the life of the motorcycle.

Competition exists when players have similar strategies, there is not much

differentiation between players and their products and barriers for exit are high. Honda Automobile’s main competitor is the Toyota Corporation. Honda’s strength has been its ability to maintain an internationally flexible manufacturing policy that caters to the ups and downs of customer demand. The production lines on both sites are capable of making all models simultaneously and some models can be made on more than one line (Anonymous, 1995). The Batch-of-One theory from Toyota is well-known, but the procedures that have made Honda supremely successful have not been so well documented (Anonymous, 1995). Toyota’s Camry’s price is lower than Honda’s Accord. There are also five distinctive Camry models. There are just two distinctive Honda Accord models however the Accord Coupe is a two-door sportier model, of which Toyota doesn’t offer an equivalent. The Honda Accords are both readily available throughout the United States.

Brand image is crucial because their “Brand” is the image. According to Ramsey (2013), “Honda Motor Co. has the best brand image of any major auto maker. The 2013 Brand Image Awards say Honda was the most trusted brand and considered the best value of all car brands in the survey”. Comment by Thomas Kemp: [Place commas and periods inside quotation marks.]

The differentiation is critical to consumers because it goes back to Maslow’s pyramid of human needs theory and consumers want to be linked to a social class. For example, an upper class, family oriented, or both. Honda’s main competitive advantages are reliability, fuel efficiency and value. Honda has a notable reputation of quality manufacturing and value. The Honda CRX HF model was one of the first cars on the market with excellent gas mileage. Whether a consumer is shopping for a luxury or sports car, they will get a lot for their money with Honda.

In addition to receiving the German Sustainability Award 2011 in the category

of “Germany’s most sustainable products/services” in November 2011, ecoPOWER 1.0 was selected by readers of an industry journal as the “Most Sustainable Product of 2012,” an award

given to products that excels in the areas of management, marketing, and sustainability (Honda’s Corporate Social Responsibility Report, 2012). Honda continues to support their long-term sustainability as stated by Tom Pickens of Tipton Honda, “Honda’s use of digital media is the best way of advertising their products”. Comment by Thomas Kemp: I missed his credential.

In conclusion, Honda has placed their company at the Power of Dreams and continues to instill in their customers the yearning of being part of a brand known throughout the world.

References

Deluxe for Business., 2009. The Ten Best Positioning Strategies. Owning a Winning Position.

Retrieved from:

http://deluxesmallbizblog.com/wp-content/uploads/20

10

/01/9027_Ten_Best_Positioning_Strategies_Whitepaper

Honda’s flexifactory network. (1995). International Journal of Physical Distribution & Logistics

Management, 25(7), 6

8

-70. Retrieved from:

http://search.proquest.com/docview/1002715486?accountid=34899

Honda, S. (1951). Honda Monthly, 4. Retrieved from:

http://world.honda.com/history/limitlessdreams/satisfaction/index.html

Ramsey, M, 2013. Honda Takes Award for Best Brand Image. The Wall Street Journal.

Retrieved from:

http://blogs.wsj.com/drivers-seat/2013/03/25/honda-takes-award-for-best-brand-image/

Honda’s Corporate Social Responsibility Report, (2012). Retrieved from:

http://world.honda.com/CSR/report/pdf/2012/report_2012

Capstone Week 1 Assignment 3: Feedback on Market Position Analysis

These are the first requirements on the course project. By the end of the term you will use much of what you have done in previous parts of the project developed along the way. Throughout this course, you will conduct a strategy audit for a selected company. Begin this assignment by selecting an organization for your course project activities.

In this module, you will assess the product portfolio of your selected business unit by analyzing the value proposition, market position, and competitive advantage of its products and services.

Part I: Interview

To gain an understanding of your selected business unit’s market position, value proposition, and competitive advantage, conduct at least one interview with a mid-level or senior manager.

Use the interview to solicit the manager’s perception of his or her business unit’s product portfolio. Be sure to discuss the points of analysis listed below in Part II of this assignment.

Part II: Analysis

Based on the information gathered from the interview, analyze the product portfolio of your selected business unit. In your analysis, identify the business unit of your company and the product(s) and service(s) on which you will focus.

Make sure to include the following points in your analysis:

· Describe the target customer for the product/service in terms of relevant characteristics that impact the marketing strategy, including location (how it should be reached) and buying habits.

·

Identify each customer segment’s specific wants and needs. Explain why they buy your company’s product or service, or a competing product or service.

·

Justify how well your product/service satisfies customer wants and needs. Identify any wants and needs that are not met by your product/service.

·

Analyze the position of your product/service in relation to the competition. Identify the main competitors. Explain how your product differs in terms of features, function, quality, price, availability, brand image, and the like. Explain why this differentiation is important to your customers.

·

Describe the source of competitive advantage for your product. Evaluate how sustainable is this source of advantage.

· Assess the long-term sustainability of the source of differentiation and competitive advantage.

Include appropriate information from the interview in support of your answer.

Part III: Matrix

In comparing your product/service to that of the competition, construct a simple matrix in the following way:

· List the key customer wants or needs on the left-hand vertical axis.

· List the competing products on the top horizontal axis, starting with your product/service on the left.

· For each customer want or need, indicate how well each competing product satisfies the need using a scale of 0–2.

· 0 = need not met

· 1 = need partially met

· 2 = need fully met

This is a simple but effective visual mechanism for comparing the relative position of multiple offerings from competing sources.

Write a 3-page paper (1050 words) in Word format and attach the matrix as an appendix. Apply APA standards to citation of sources. Use the following file naming convention: LastnameFirstInitial_M1_A3 . For example, if your name is John Smith, your document will be named SmithJ_M1_A3 .

Deliver your assignment to the M1: Assignment 3 Dropbox.

Assignment 3 Grading Criteria

12

12

12

20

20

20

16

12

Assignment Component	Proficient	Maximum Points	Earned Points
Describe the target customer for the product/service in terms of relevant characteristics that impact the marketing strategy, including location (how reached), buying habits.	Target customer is clearly and accurately identified. Description includes all relevant characteristics that impact the marketing strategy, including (but not limited to) location and buying habits.					12
Identify each customer segment’s specific wants and needs. Explain why they buy your company’s product or service, or a competing product or service.	Each customer segment’s wants and needs are identified and are specific and appropriate. Explanation as to why customer buys product/service is clear, complete, and provides specific detail to support ideas.
Justify how well your product/service satisfies customer wants and needs. Identify any wants and needs that are not met by your product/service.	Justification of how well the product/service satisfies customer wants and needs is clear, complete, and provides sound examples that support stance. Any wants and needs not met by the product/service are identified and evaluated.				20
Analyze the position of your product/service in relation to the competition. Identify the main competitors. Explain how your product differs in terms of features, function, quality, price, availability, brand image, and the like. Explain why this differentiation is important to your customers.	Analysis of the product/service in relation to the competition is clear, complete, and detailed. Where the product resides in the market as a whole is clear and accurate. Main competitors are specified. Explanation of how the product/service differs from competition is clear and complete. It includes a discussion of features, function, quality, price, availability, brand image, and the like. Explanation of why differentiation is important to customers is clear and supports the justification as to customers’ wants and needs.
Describe the source of competitive advantage for your product. Evaluate how sustainable is this source of advantage.	Source of competitive advantage for product is clearly and completely described with details to highlight specific ideas. Evaluation of sustainability of source of advantage is clear and grounded in appropriate examples.		16
Include information from the appropriate interview.	Information from the interview is woven into the assignment and used as support throughout. Just did not see what his credentials were to offer a value proposition.	8	6
Write using ethical scholarship and proper grammar and mechanics.	Writing is clear, concise, and in an organized manner; demonstrates ethical scholarship in accurate representation and attribution of sources; and displays accurate spelling, grammar, and punctuation. Some issues of sustaining claims made.	10
Total:	Great job overall.	100	96

 

Matrix Appendix

1

1

2

1

1

1

1

1

1

1

0= not met 1 Partially Met 2 Fully Met

Sales

Service

Parts

Dealership Events

1

2

Amenities

Warranty

Lease a Honda

MARKET POSITION ANALYSIS:
HONDA

1

Market Position Analysis:
Honda

Market Position Analysis:
Honda

In
the current economy it is vital that a
company strive to sustain a competitive
advantage
. This paper will provide information on Honda Motor Corporation’s market position
analysis and a strategy audit interview.

Honda

Motor Corporation

was founded in 194
6

by
Soichiro Honda
. Honda is a global
company that
manufactures, produces and develops a diverse range of motor products, varying from
motorcycles,
small scooters
, and
engines to exclusive sports cars. The
company
’s
business
segments

EXTERNAL

SCAN: HONDA

2

EXTERNAL SCAN: HONDA 9

External Scan:

Honda

Running Head:

External Scan: Honda

1

External Scan: Honda

A lot of companies deem that delivering services and products to consumers is the only purpose of the company and generally it is. Sorry to say, for some companies there are external components that may obscure the efficiency of a company. On the flip side, some external component elements will assist the businesses to succeed. According to Honda (2013), Honda’s a corporation created on dreams and these dreams inspire them to build top-quality products that enrich human flexibility and profit civilization. Honda views “The Power of Dreams” as a philosophy that directs and motivates them to progress ahead. The power of their corporation emanates from this philosophy” (Honda, 2013).

In today’s market it is vital that a global company such as Honda be responsive to the issues and trends that come from technological, political and economic trends. Technology expansions are significant for Honda due to the ever changing developments of today’s information technology. For example, Honda’s Micro-sized Combined Heat and Power (MCHP) demonstrate Honda’s promise to be both ecologically responsive and use state-of-the-art operations to aid people in getting their goals achieved.

Since the economic recession dated 2007 to 2009, consumers were exceptionally penny-wise with how and on what they spent their money. According to Modern Global Automobile Industry (2004), there are multiple trends that are recognized in studying the international automobile market, categorized by the factors below:

· Global Market Dynamics – The globe’s biggest car makers continue to capitalize in manufacturing resources in developing markets in order to decrease their manufacturing costs.

· Creation of Global Alliances – U.S. automobile manufacturers, “The Big Three” (General Motors, Chrysler and Ford) united with and launched strategic alliances with Japanese and European automobile manufacturers. For example, the Chrysler Daimler-Mercedes Benz merger was originated by Mercedes-Benz to boost their market in the U.S. In general, the trend of the world’s automobile manufacturers was to expand in foreign markets.

· Industry Alliance – Rising global rivalry among worldwide producers in overseas markets placed the world’s automobile manufacturers into three stages, the first stage is Honda, Ford, GM, Volkswagen and Toyota and the two remaining manufacturers are combined with other car manufacturers to compete with first stage businesses (Modern Global Automobile Industry, 2004).

Consumers who buy Honda do so for two main reasons: The first is because Honda customers like the longevity of Honda products. The second reason is due to Honda’s fuel economy savings.

The automobile industry is fall under government regulations. The global automobile industry also falls under laws and government regulations to include laws that area associated to environmental matters and vehicle safety such as pollution, emission levels, fuel economy and noise. Honda’s political factors include government regulations that a company’s strategy must include and obey. The political factors include matters such as environmental law, advertising law, tariffs, trade barriers, taxes and exchange controls

Honda being one of the most prosperous automobile companies in the world with the help of SWOT analysis has come to understand what the political, technological, economic, and social factors are. SWOT analysis provides the company internal and external factors that if without focus, can negatively affect their business strategies. Honda’s use of SWOT analysis is crucial as they need to be aware of their strengths, weaknesses, opportunities, and threats in order to be successful in their business strategies.

The Supply Management Strategy (SMS) is used by Honda to direct its supply management activities. Through SMS, Honda’s suppliers are able to manage company contact information, business information and site location (Honda Supply Team, 2013). The SMS provides a supply management guideline that allows investors to successfully meet the continuing objectives of the Honda Corporation.

In regards to Honda motorcycles, Honda motorcycles have comparable qualities with their competitors however one of the main differences is cost. A company who desires to operate in a specific industry understands that they need to challenge their opponents and differentiate themselves to attract consumers.

Devoted customer relationships: Companies strive to make a connection between the company and the customer. Fostering a relationship can lead to repeat customers. The relative price for performance of substitutes: Because of Honda’s price points, their rivals strive to provide similar products, undercut Honda to gain more market share, and use similar marketing agendas. The aggressive competitiveness between Honda, Kawasaki, and Suzuki and is a more about quality and product status. They all have similar approaches but what set’s Honda apart is innovation and price points for a quality brand loyalty product.

Analysis is a succinct summary of a company that delineates the company’s strengths, weaknesses, opportunities and threats. Per Yousigma, (2011),

Honda’s strengths are:

· Global operations

· Front runner market standing

· Brand power

· Engineering ability

· Staunch distribution market

Weaknesses:

· Expenditures distributed for post-retirement benefits of employees

· Employee efficiency

Opportunities:

· Rising demand for hybrid electric vehicles

· Opportunities in the Asian market

Threats:

· Economic recession

· Rivalry in the global automobile market

· Rising Japanese Yen versus the U.S. dollar

· Tightening emission standard and End-of-Life Vehicle (ELV) directive (Yousigma, 2011).

The Threat of New Entrants in Porter’s five forces of the U.S. car manufacturing industry include: allegiance to major brands, incentives for buying a particular buyer, increased fixed costs, shortage of resources, lofty costs of changing, and government regulation’s barriers to entry. Success of foreign car manufacturers like Honda challenged the belief that the Big Three U.S. car makers were indomitable. The factors that slowed the threat of overseas automakers are the loyalty to U.S. manufactured vehicles and the after-sale services offered.
The five forces analysis of Honda is:

· Threat of New Entrants

· Barriers to entry

· Product differentiation

· Capital Requirements

· Substituting cost to buyers

· Entrance to distribution channels

· Government Policy

· Occupants resistance of market share

· Industry growth rate

· Determinants of Supplier Power

· Supplier Concentration

· Availability of substitute inputs

· Importance of suppliers input to buyer

· Supplier’s product differentiation

· Importance of industry to suppliers

· Buyers switching cost to other input

· Suppliers threat of forward integration

· Buyers threat of backward integration

· Rivalry among existing firms

· Number of competitors (concentration)

· Relative size of competitors (balance)

· Industry growth rate

· Fixed costs vs. variable costs

· Product differentiation

· Capacity augmented in large increments

· Buyers switching costs

· Diversity of competitors

· Exit Barriers

· Determinants of buyer power

· Amount of buyers compared to amount of sellers

· Product differentiation

· Substituting costs to use another product

· Consumers profit margins

· Consumers use of various sources

· Consumers threat of regressive incorporation

· Dealers threat of forward incorporation

· Value of product to the consumer

· Consumer volume

· Threat of substitute products

· Comparative cost of substitute

· Comparative quality of substitute

· Substituting costs to consumers

Honda is a “Power of Dreams” company that continually proves that their external trends thrive in their products’ industries and maximizes strength’s and opportunities while minimizing weaknesses and threats. Areas of improvement that Honda can incorporate are making ownership more economical by improving fuel economy, lowering CO2emissions, and lengthening the motorcycle service life (Honda, 2013). With the continuing needs and ever changing technology wants of the consumer, Honda will continuously look for ways of advancement. Going forward, Honda will go all-out to improve customer gratification by providing superior products and peace of mind and dependability to customers all over the world.

References

Official Honda website, (2013). HondaSupplyTeam Portal Application Overview. Retrieved

from:

http://www.hondasupplyteam.com/j_pstat/html/hondasupplyteam_portal_overview.htm

Official Honda website, (2013). Retrieved from:

http://corporate.honda.com/about/

Official Honda website, (2013). Implementing Customer Satisfaction. Retrieved from:

http://world.honda.com/CSR/customer/products/

Yousigma, (2013). Yousigma website. Retrieved from:

http://yousigma.com/comparativeanalysis/hondamotorcompanylimited.html

Running Head: External Scan: Honda

1

External Scan:
Honda

Running

Head: STARTING THE STRATEGY

1

Starting the Strategy

Abstract

Honda Motor Corporation was established in 1946 by Soichiro Honda. Honda is an international corporation that manufactures a varied range of motor products, from fuel efficient cars, mopeds, engines, motorcycles, to exclusive sports cars. This audit assesses Honda’s market position, value proposition and competitive advantage at the same time evaluates the existing atmosphere Honda functions in. This paper will also perform a preliminary assessment of external factors that comprise the Porter’s five forces. Lastly, this paper will focus on Honda’s strategic issues and provide proposals that will assist the company in determining problems while providing results and recommendations.

Table of Contents

Abstract……………………………………………………………………………………2

Introduction…………………………………………………………………………….….4

Value Proposition……………………………………………………………………….…5

Market Proposition…………………………………………………………………………6

Competitive Advantage……………………………………………………………………7

External Environment……………………………………………………………………..7

Current Environment……………………………….………………………………………8

Assessment of External Factors………………….……………………………………….8

Porter’s Five Forces……………………………….………………………………………13

Strategic Issues……………………………………………………………………….………16

Preliminary set of recommended tactics…………………………………………………17

Summary of Key Findings and Recommendations………………………………………18

References

………………………………………………………………………………..20

Starting the Strategy

Introduction

Honda Motor Corporation was established in 1946 by Soichiro Honda. Since its establishment Honda has become renown all over the world and has also been at the forefront of the automobile, motorcycle, and power products industry. In the current market few businesses recognize that continuing to uphold a competitive advantage is vital to the long life of a company.

The superiority of Honda cars show just how efficient the manufacturing is from beginning to completion. Honda cars last longer than American cars and maintenance although more costly, is not required as often. American drivers owning Honda cars have joined the mile high clubs for mileage over 200,000. Most American cars at this mileage would start to damage, though the excellence of Honda cars is long lasting and continuously perfecting. Owners have been known to retain their Honda cars for decades without many issues or problems.

Many consumers will buy American cars based on capital advantage. This is where faithful support of the countries’ products comes in. The three big car makers in the United States manufacture vehicles in every size and model ranging from small cars to large trucks. However for many years Honda’s main focus was on profits. During times of a bad economy, consumers are reluctant to make frivolous expenditures due to pay freezes, pay cuts, job lay-offs they are holding on to every dime and are making sure they receive their money’s worth.

According to Naylor (2013), Honda is thought to be one of the top auto makers in the world, and its customer base endures to see reliable growth time and again. Its revenues are also steadily greater than Toyota’s, however not by much. Honda’s motorcycle division gives them an edge over Toyota which has helped them draw customers from emerging markets like Thailand and Brazil (Naylor, 2013).

Honda

 

was the first to form a manufacturing facility in the United States, but later was joined by Nissan and Toyota. In Canada, Honda was yet again the first to form production facilities and was later joined by Toyota. In Mexico, Honda was preceded by Nissan. Overall, Honda took a leading role in establishing overseas operations and over half of its total production is from overseas plants. According to Chappell (2013), Nissan Mexico was the first Japanese company to produce cars outside Japan. Nissan anticipates its Mexican division to play a major role in Nissan’s strategy to attain an 8% global market share by 2016. This effort wouldn’t help Nissan-brand dealers in their competition against Honda. But it would help Nissan’s business strategy of manufacturing more small cars to increase total U.S. market share (Chappell, 2013). The differentiation is important to consumers because they want to be linked to a particular status. Honda’s competitive advantage comes from repeat consumers that appreciate the quality of Honda products.

Value Proposition:

Honda gratifies the customer base by providing superior customer value, speed to the market and product quality. In most aspects, Honda’s catering to the needs and wants of consumers surpassed customer expectations due to reputation for dependability and value. But moreover with the overall driving and owning experience, Honda reviews have common themes like insightful design, better-than-

average

fuel economy and awareness to safety. Per Edmunds (2012), annual report for best-retained value in 2010, Honda has reliably been the leader or second best each year since, maintaining highest tributes for the second time in 2012. Edmunds stated that Honda cars maintain virtually 48 percent of their initial value after five years. For example, if a Honda vehicle was purchased today for 25 thousand dollars in 2018 its value will still be 12 thousand dollars (Honda, 2013). This is one of the reasons why Honda is observed as huge value and reliability.  Unequaled quality is a chief factor, and the unmatched driving experience also contributes. The better-than-average gas mileage and the safety awards are often cited as well.

Honda has positioned themselves as a Motorcycle maker that is above pedigree and projects a certain status symbol that demands respect and admiration from onlookers. Honda strictly speaking has three main competitors; Toyota, Nissan, and the Big Three U.S. car makers, General Motors, Ford and Chrysler.

Market Position:

Honda’s target consumers for motorcycle retailing are women and men between the ages of 16 to 70 and up. Honda’s consolidated unit sales of motorcycles in fiscal year 2013 totaled over 9,000. This was an increase by 9.9% from the previous year. In 2012 the U.S. dollar sales of Honda motorcycles was more than 150 billion dollars and increase by 9.1% from fiscal year 2011 (Honda, 2013). Honda’s product offerings of power products, motorcycle, financial services and automobile businesses seek to gratify customer’s needs and wants. Customers view products as parcels of benefits and they purchase the products that provide them the most value for their hard earned money. For example, Honda’s sleek and fuel economy car the Civic it has many benefits and is also has a low price tag. The Acura represents prestige, extravagance and all the bells and whistles. Given their wants and needs consumers demand products with amenities that add up to the most satisfaction to include the reputation, the dealer, and the satisfaction of owning a certain brand.

Competitive Advantage:

Honda cars are well-known for their stellar reputation and quality leadership. Their prices are also similar with that of American cars of equal value. One of the main reasons why Honda cars are well-liked is due to the fact they are superior in fuel efficiency and quality. Honda spends a lot of money to repetitively upgrade technology. They also spend a lot of time and money on research and development to certify that cars are manufactured with the latest and sophisticated ways. Honda selects expert staff and provides them with continuous knowledge and training they need to develop highly efficient vehicles. Per Honda (2013), a front runner of the ground-breaking hybrid gasoline/electric drive trains are an example of Honda’s leadership in finding no-nonsense solutions for improved fuel efficiency and lower emissions (Honda, 2013).

External Environment

Current Environment:

Honda has placed the corporation to be at the front of automobile creativity and quality workmanship that consumers aspire to be on the front lines with. Consumers similarly want to be part of a trusted brand recognized all over the world.

Many companies think that just delivering products to customers is the main objective of the automobile industry and principally it is. Regrettably, for organizations there are external fundamentals that can cause difficulties to the success of their business. On the opposite end, some external elements can also help businesses succeed as well. Honda as an international corporation manufactures and develops a multitude of products, varying from exclusive sports cars, scooters, engines, motorcycles and automobiles.

Assessment of External Factors:

In today’s economy, it is critical that a universal corporation such as Honda be responsive of the external factors that come from technological, economic, political natural and cultural factors.

Technological Factors:

Using innovative Information Technology (IT), Honda continuously transforms and develops itself. Variations in IT lead Honda‘s operations effective such as: In the manufacturing process; Honda’s use of the auto fit machine, Honda can mass produce, reduce the cost and save time. In the marketing process, when the internet was available in the early 1990s the innovation of multi-media replaced Honda’s method of marketing for example, via television, newspapers and magazines. In terms of customers, when they shopped to buy a, they had to physically go to town to a dealership. In the present day, with the Internet and Multi-media shopping for a car is more convenient and efficient.

Economic Factors:

An economic recession, loss of consumer confidence, and rising fuel costs caused a decrease in demand for automobiles, motorcycles and power products that negatively affected Honda‘s operations. Total demand in the United States in calendar 2006 fell 2.6% from the previous year. Soaring gasoline prices in the summer buying season pushed up demand for fuel-efficient cars. Another reason was the expansion of on-road models and the declining in off-road models. The All-Terrain Vehicle (ATV) market held fast due to the new designs. In fiscal year 2007, Honda‘s unit sales in North America fell 18.2%, to 503,000 units. Rising fuel prices and interest rates deeply affected the North American Market. In general, sales declined by shifts in the market environment. According to The Economist (2008), Japan’s economy dropped into a recession during third quarter of 2008, as companies steeply cut back on spending and exports contributed to a negative growth. The impact of the global financial crisis began to have an effect on Japan’s economy (The Economist, 2008).

Political Factors:

In 1965, the U.S. was engaged in the war with Vietnam. Many young American men representing a part of Honda’s market went off to battle in the jungles of Southeast Asia. Society showed signs of uncertainty as the financial markets began to waiver. By the spring of 1966, sales of Honda products were in a decline. Honda had problems with motorcycle manufacturers in Southeast Asia in regards to violating a trademark and violating Japanese intellectual property of Japanese manufacturers. Consumers in this part of the world did not have enough money to buy Honda‘s motorcycles. They purchased imitation motorcycles that were made by Chinese manufacturers. The cost was less than half of the cost of a Honda product. To handle this problem Honda came up with an alliance strategy with Chinese manufacturers instead of challenging them. With this new strategy, Honda made a new model called the Wave that was sensible in price and in quality. The Wave became very popular in Vietnam. Political uncertainty affected the demand in the Asian Market causing the automobile market to shrink.

Honda’s political factors also include government regulations that Honda manufacturer’s strategy must contain and observe. The political factors include matters such as tariffs, trade barriers, taxes, exchange control and advertising laws. There are also Regulations concerning carbon emissions, fuel economy, and noise and safety are problems of the motorcycle, automobile and power product industries.

Natural Factors:

The more industry discovers and creates, the more the environment will be affected. Among the environmental quandaries such as the Pollution Level and Global Warming are the concerns of the citizens. Various organizations have demanded the industrial organizations to reduce toxic wastes and CO2 emission. To handle this problem, Honda researches and develops modern technology involving fuel cell and hybrid vehicles. To accomplish this goal, Honda established three resolutions: 

· Development of hybrid vehicles

 

· Promotion of alternative fuel-powered vehicles

· Expand improvements in the reduction of emissions from internal combustion engines and enhancement of fuel efficiency

 

Honda strives to create cleaner and more fuel-efficient technologies. The Company also plans to make additional progress with fuel and solar cells. Honda has also been furthering the efforts of minimizing its environmental impact. Honda established goals to reduce the environmental burden measured by the Life Cycle Assessment, in all areas of business, of production, logistics and sales.

Cultural Factors:

In 1969, the first automobile built by Honda that was imported to the United States was the N600. The sales did not go over well and one of the main reasons why was because this model was built for the Japanese market and American consumers preferred bigger cars with stronger engines. The Japanese’ declining Birthrate led to Aging population and the decreasing number of youth leads to the declining number of licensed motorcycle drivers. In 2006, the demand for motorcycles under 50cc of engine was displaced. The trend of the Japanese people was traveling, thus automatic-only vehicle licenses were introduced, and the Electronic Toll Collection (ETC) System was expanded to include motorcycles. These developments helped improve the transportation situation. As a result, it started an upswing in demand in certain categories during fiscal year 2007.  In 2008, Honda expected the demand to shrink slightly however, 720,000 units sold, this is up from 503,000 in 2007. Honda is world re-known for their motorcycle market. One of the main hi-lights of Honda’s success is the ability to market at the right time and to the right segment. Honda performed a research on gender and their demand the focus was on what products would be desired of a scooter. Depending on the wants and needs, Honda produced the Honda Active. The research provided the following information: men like its metal body and greater than 100cc power. Women like the ease of maneuvering and comfort. They also preferred a scooter with great mileage, good looks and safety. Honda later created the Scoot Pep with ABS (plastic) body and with less than 100cc power. The dominant consumer is young women aged 18 to 24.

In today’s economy, it is critical that a universal corporation such as Honda be responsive of the external factors that come from technological, economic, political, natural and cultural trends.

One of Honda’s marketing team responsibilities is to establish customer demographics and appease customer needs and wants better than the competitors. Honda market’s to and effectively offers its products all over the world. According to Honda’s founder Honda Soichiro, “Upholding an international reputation, we are devoted to providing products of the maximum efficiency and at sensible prices, for universal customer gratification” (Honda, 1956).

Honda’s target customers for their motorcycle sales are men and women ages 16 to 70 and beyond. In fiscal year 2012, unit sales exceeded more than 150 billion dollars. Honda’s sale of motorcycle’s increased by 9.17% from 2011.

Utilizing a transmission platform and common engine, Honda created three different models to fulfill a wide range of customer expectations. The purpose was to surpass the expectations of customers worldwide and adopt a method to transcend across international borders.

Since the economic recession from 2007 to 2009, consumers were especially spendthrift in the manner of how they spent their money. Customers who purchased Honda products do so for the following two reasons: The first is for the longevity of Honda products. The second is for Honda’s fuel savings.

The automobile industry falls under numerous government guidelines. The international car industry also falls under these laws and guidelines that include environmental concerns such as carbon emissions, fuel economy, and noise and safety technology such as air bags, stability control, wheel lock up, front, side and rear end collision.

Honda’s product portfolio of automobile, motorcycle, financial services, and power product businesses meet and exceed the consumers’ wants and needs. Consumers view products as a bundle of values and buy products that offer them the best value for their hard earned money. For example, all-new 2013 Honda Civic symbolizes the tenth generation of one of Honda’s most popular and globally distinguished products. Having earned a reputation for being a fun to drive car that is sporty, stylish, fuel efficient and durable, the Civic is also a trusted element of the global transportation dynasty. By 2012, Civic has been the top-selling car in Canada for 14 years.

The information flow throughout Honda allows all segments of the company to rapidly spot trends to Honda’s advantage. Honda formed a high-tech communications network that was a key element in the reduction of

cycle time

in new car assembly for the US market. Critical to Honda’s approach was the creation of multi-disciplinary redesign crews and the information technology infrastructure that allowed them to promptly seize, send and share information using communication networks, between Japan and Los Angeles. Honda’s business and information technology displays the importance to Honda of managing its knowledge base and expertise to development processes. Honda’s infrastructure abilities include a high-tech communication network and the management of databases (part ordering, finance and sales) on a global basis that are required for the sharing of information.

Porter’s Five Forces:

With the five external factors above, Porter‘s Five Forces is an analysis tool to evaluate the opportunities and competitive advantage of the Honda Motor Corporation. The information will inspire strategic managers and marketing to not only look at current competitors but also at perspective competitors. It will also help Honda recognize what consumers want and make its supplier operations more efficient.

The threat of substitute products or services:

A threat of substitutes can happen when a product’s demand is influenced by a price or innovation change of a substitute product. For example, when Honda‘s competitors produce a model with more incentives at a lower price than Honda‘s and the product replaces Honda‘s product in the market. This reduces Honda’s market share and revenue. For instance, Honda’s motorcycle CRF450 versus Yamaha’s YZ426, the YZ426 is the closest substitute to Honda’s CRF450. If Yamaha comes up with new innovations with a lower price it can replace Honda‘s CRF450 because consumers have the same expectation of both products, however Yamaha will have an advantage.

The threat of new entrants:

Honda is confronted by more competition than ever. New small entrants are disrupting the auto industry with their abilities in manufacturing alternative fuel engines and electric vehicles. Larger businesses are streamlining themselves to become more effective. As a consequence, companies like Honda are being bombarded with competition from both large and small players. The threat of new entrants includes two barriers; one to entry and two, the response from current competitors. For example, General Motors and Honda compete against each other in the auto industry. Honda cannot obtain maximum profit in the US market if there are policies from US Government protecting a domestic company. Honda will also have excessive expenditures to access distribution in the US market.

The intensity of competitive rivalry:

Among Porter’s five forces the most important to the automobile industry is competitive rivalry. Honda’s three main rivals are Toyota, Nissan, and the Big Three, General Motors, Ford and Chrysler. Changes in strategy or product offering that one of these competitors launch can sway the performance of Honda. According to GM’s 2012 annual report, GM reported 152.3 billion dollars in revenue (General Motors, 2013). According to Honda’s 2012 annual report, Honda reported 96.7 million dollars in revenue. According to Toyota’s annual report, Toyota reported 226 million in revenue. To keep up with the demand and technology Honda as well as its three rivals continues to revolutionize, refine, research, and develop. For example, when one of the three competitors release a new model, the others will follow up and have a similar product to compete. When Honda released the next generation of its fuel cell vehicles, FCX Clarity in 2008, GM put their fuel cell platform into its Chevy Equinox SUV. Honda’s prominent model the Honda Accord launched in 1976 has been competing with its principal rival, Toyota’s Camry since its first appearance in 1983. Chevy’s Malibu and Ford’s Fusion are also competitors of the Accord. Honda’s rivals can replace them at any time in the auto industry. Honda needs to continue improving on its technology, research and development to continue creating a competitive advantage.

The bargaining power of customers (buyers):

In the world of business, if a company wants longevity it must have products that consumers need or want. Honda being a global company has a lot of competitors. Therefore Honda needs to make products that make an easy decision for consumers. A sale is not only dependent on brand labels but by price and quality. For example, when Honda launched the Air Blade Scooter, it was sporty, fashionable, fuel thrifty and had new engine technology. It quickly appealed to the youth however the supply did not compensate the demand. The shortage of the Air Blade in the market increased its price. Customer’s had to place orders and wait up to two months for delivery. Suzuki took advantage and introduced the Hayate Scooter. It had the same qualities of the Air Blade but with a lower price and no shortage.

The Bargaining power of suppliers:

Suppliers have a significant role in a company’s success.  Companies need to build strong relationships with their suppliers. Without suppliers there is no business. 

Some suppliers will continuously increase prices or refuse to work with certain businesses. Understanding this, Honda has a supply contingency plan. Honda purchases raw materials and parts from many suppliers. Honda’s supply strategy has enabled them to purchase supplies efficiently and cost-effectively however is subject to a number of factors. Some factors are not within Honda‘s control, to include the ability to obtain a continued source of supply and to competing with other companies needing the same supplies. If Honda loses a key supplier, it may affect production and increase costs. One of Honda’s suppliers; Kikuchi Co., Ltd supplies not only Honda but also Nissan. If Nissan were willing to buy at greater prices or offered more incentives than Honda, Honda’s production could be at jeopardy.

Once the Business strategy and infrastructure are aligned, the IT strategy outlines what type of technology is needed to deploy the Business strategy.

Preliminary set of recommended tactics

Strategic Alignment:

There are four areas of Honda’s strategic alignment, two internal and two external. The internal domains include the Business Infrastructure and the Information Technology (IT) structure. The external domains include the Business Strategy and the IT strategy. The Business Strategy drives both the Business and IT Infrastructures. The priority is to enhance business procedures. IT efforts are focused on the application development that is driven by the need to maintain the business structure.

Operating performance:

Honda’s Operating Performance is measured against 

average or fixed 

indicators

 of efficiency,

effectiveness

, and environmental 

accountability

 such as, regulatory compliance, cycle time and 

productivity

. Honda’s operating performance ratios depict the association of Honda’s level of operations and the assets required to sustain their operating activities.

Strategic Issues

Identify Opportunities

Why is it an Issue?

According to Richardson, (2011), In 1958 Honda sent Kihachiro Kawashima (who later became president of Honda) to the U.S. to scope out the market. Honda did not have market research of any kind, and knew very little about America. Kawashima’s reaction upon arriving in the U.S. was, “How could we have been so stupid as to start a war with such a vast and wealthy country?” (Richardson, 2011).

Per Evans (2013), Honda wasn’t the first foreign auto company to open a plant in the U.S. Volkswagen, operating previously unfinished Chrysler factory in Pennsylvania in 1978, beat them by a few years and Rolls-Royce manufactured cars in Massachusetts in the 1920s. Both of those operations folded after 10 years of production. Honda’s plant in Marysville, Ohio, is still building Accords 30 years after it opened, and is the oldest foreign auto plant operating in America.

In today’s unyielding competition and technology changes, it is difficult to predict all opportunities with any assurance. Honda must have the elasticity and knowledge to adapt to change and control its forces to their advantage.

Implementation Plan

Why is it an issue?

According to Richardson (2011), during the early 1950’s, Honda lacked planning ahead of time. Soichiro Honda’s predecessor Kawashima recalled, “We had no strategy other than the idea of seeing if we could sell something in the United States.” (Richardson, 2011). According to Roper (2010), an implementation plan will allow for the process of thinking through critical elements, anticipation of challenges, identifying critical steps in advance, identifies and resolves discrepancies before they become costly (Roper, 2010).

Economic Strength

Why is it an issue?

According to Taylor (2011), for years, Honda has been thought of as the ultimate playground of engineers. They drove to work riding on their Honda motorcycles and got to discover abstract schemes like humanoid robots and jet airplanes. With their extensive list of scientific accomplishments dating back to the revolutionary CVCC engine of the 1970s (it produced a clean exhaust without a catalytic converter), they were proud of their heritage and enjoyed an elite status within the company (Taylor, 2011). A bad economy can have a number of effects on both small and large companies. For Honda to stay afloat during a bad economy they have to keep production costs low. However, during a recession the demand for automobiles decreases because consumers are being careful because they are looking to save money, not spend it. The auto industry is hit hard twice by decreased sales and increase in costs of producing automobiles.

Summary of key Findings and Recommendations

The Key Findings:

· Market Position

According to Blackman (2013), Honda’s Civic as compared to Toyota’s Corolla is higher priced, the Corolla received a five-star crash test rating from the National Highway Traffic Safety Administration, the Corolla is also designed better, Toyota offers a complimentary maintenance program with free oil changes and 24 hour roadside assistance for the first 2 years or 25,000 miles, lastly, Honda recalled more than 820,000 Civics and Pilots during the past year (Blackman, 2013). Honda should match or beat its competitors. Honda has been successful in making the company attractive to all ages however Honda should produce a motorcycle that is more female friendly to increase the number of female riders.

· Competitive Advantage

The reliability and quality of Honda are its key competitive advantage’s between buying Honda or a competitor like Yamaha or General Motors. In order to stay ahead of the tough competition in the auto industry Honda needs to be in the forefront of technologically. Many consumers will buy American cars based on capital advantage. The big three U.S. car makers manufacture vehicles in every size and model ranging from small cars to large trucks. For many years Honda’s main focus was on profits. They need to focus on maintaining the competitive edge ahead of their rivals.

· Strategic Issues

Honda’s strategic issue of Identify Opportunities, with today’s unyielding competition and technology changes, it is difficult to predict all opportunities with any assurance. Honda must have the elasticity and knowledge to adapt to change and control its forces to their advantage. Honda’s strategic issue of Implementation Plan, an implementation plan allows for the process of thinking through critical elements, anticipation of challenges, identifying critical steps in advance, identifies and resolves discrepancies before they become costly. Having a plan and carrying it out through to implementation is crucial for the longevity of Honda. The strategic issue of Economic Strength, for Honda to stay afloat during a bad economy they need to keep production costs low. However, during a recession the demand for automobiles decreases. The auto industry is hit hard twice by decreased sales and increase in costs of producing automobiles. Honda must be diligent and aware of the economy and its effect on the corporation.

References

Honda. (2013). Retrieved from:

http://world.honda.com/investors/library/annual_report/2013/honda2013ar-p14-17

Honda. (2013. Retrieved from:

http://blog.teamhonda.com/honda-a-true-value-

proposition

Tay, H. K. (2003). Achieving competitive differentiation: The challenge for

automakers. Strategy & Leadership, 31(4), 23-30. Retrieved from

http://search.proquest.com/docview/194378425?accountid=34899

Naylor, T.J. (2013). Which is the Better Investment: Honda or Toyota? Retrieved from:

http://www.benzinga.com/general/travel/13/11/4075804/which-is-the-better-investment-

honda-or-toyota

Chappell, L. (2013). Nissan’s new Mexico plant ready to unleash small cars. Retrieved

from:

http://www.autonews.com/article/20131112/OEM01/131119980/nissans-new-mexico-

plant-ready-to-unleash-small-cars#axzz2lm1a8lO4

The Economist. (2008). Japan in Recession. Japan enters a recession. Retrieved from:

http://www.economist.com/node/12627563

General Motors. (2013). 2012 Annual Report. Retrieved from:

http://www.gm.com/content/dam/gmcom/COMPANY/Investors/Stockholder_Infl

ormation/PDFs/2012_GM_Annual_Report

Richardson, Adam. (2011). Lessons from Honda’s Early Adaptive Strategy. Harvard

Business Review. Retrieved from:

http://blogs.hbr.org/2011/02/lessons-from-hondas-early-adap/

Taylor III, A. (2011). Why Honda is hurting. CNN Money. Retrieved from:

http://money.cnn.com/2011/08/02/autos/honda_problems.fortune/

Scott, E. (2013). 1812 Miles in Three 2013 Honda Accords. Land of Opportunity:

America Embraces an Automotive Immigrant.

http://www.motortrend.com/features/travel/1301_1812_miles_in_three_2013_hon

da_accords/

Roper, A. (2010). Best Practices for a Strong Implementation Plan. Retrieved from:

http://www.hhs.gov/ash/oah/oah-initiatives/webinars/slides_implementationplanwebinar121310

Blackman, T. (2013). Why the Toyota Corolla Is Better Than the Honda Civic. Retrieved from:

http://partsblog.olathetoyota.com/2190/why-the-toyota-corolla-is-better-than-the-

honda-civic/

LASA 1—Preliminary Strategy Audit Rubric

Response exhibits substantial gaps in the knowledge of the disciplinary content.
Response provides a minimal explanation of the specific issue within the context of the topic area.
Response fails to provide supporting details or examples.

Response demonstrates an exemplary understanding of the disciplinary content.
Response provides an in-depth discussion of the specific issue within the context of the topic area using relevant details and numerous examples.
Response analyzes the specific aspect of the issue to applicable areas within the discipline and provides insightful recommendations related to real-world contexts.
Response is supported by current and relevant literature based on sound theories and best practices leading to effective conclusions.

Response exhibits substantial gaps in the knowledge of the disciplinary content.
Response provides a minimal explanation of the specific issue within the context of the topic area.
Response fails to provide supporting details or examples.

Response exhibits some gaps in the knowledge of the disciplinary content.
Response discusses the specific issue superficially within the context of the topic area using a few details.
Response relates the specific aspect of the issue to applicable areas within the discipline.
Response is supported by current literature, but not consistently.

Response demonstrates a working command of the disciplinary content knowledge.
Response examines the specific issue within the context of the topic area using relevant details and examples.
Response analyzes the specific aspect of the issue to applicable areas within the discipline and their relevance to real-world contexts.
Response is supported by current and relevant literature.

Response demonstrates an exemplary understanding of the disciplinary content.
Response provides an in-depth discussion of the specific issue within the context of the topic area using relevant details and numerous examples.
Response analyzes the specific aspect of the issue to applicable areas within the discipline and provides insightful recommendations related to real-world contexts.
Response is supported by current and relevant literature based on sound theories and best practices leading to effective conclusions.

Assignment Component	Unsatisfactory	Emerging	Proficient	Exemplary	Score
Content Knowledge: Understanding Communicates understanding of how to assess an organization’s value proposition, market position, and competitive advantage.	Response does not incorporate analysis or synthesis of central concepts of the assigned topic. Response reflects lack of understanding of the specific topic within the discipline. Response provides inaccurate supporting details and irrelevant examples.	Response incorporates minimal analysis and synthesis of central concepts of the assigned topic. Response reflects a superficial understanding of the specific topic within the discipline. Response provides few details and examples.	Response incorporates analysis and synthesis of central concepts of the assigned topic. Response reflects understanding of the nature of the specific topic within the discipline and its applications in contemporary times. Response provides necessary details and specific examples.	Response incorporates in-depth analysis and synthesis of central concepts of the assigned topic leading to new conclusions and recommendations. Response reflects a thorough understanding of the nature of the specific topic within the discipline and its applications in contemporary times. Response provides a variety of insightful details and specific examples that consider different perspectives.	Unsatisfactory: <45 Emerging: 46–51 Proficient: 52–57 Exemplary: 58–60 __60____ / 60 pts. Comments Flawless work here … in great depth.
Content Knowledge: Application Component Communicates the ability to assess the external factors that impact the organization using five forces analysis.			Response exhibits substantial gaps in the knowledge of the disciplinary content. Response provides a minimal explanation of the specific issue within the context of the topic area. Response fails to provide supporting details or examples.	Response exhibits some gaps in the knowledge of the disciplinary content. Response discusses the specific issue superficially within the context of the topic area using a few details. Response relates the specific aspect of the issue to applicable areas within the discipline. Response is supported by current literature, but not consistently.	Response demonstrates a working command of the disciplinary content knowledge. Response examines the specific issue within the context of the topic area using relevant details and examples. Response analyzes the specific aspect of the issue to applicable areas within the discipline and their relevance to real-world contexts. Response is adequately supported by current and relevant literature.			Response demonstrates an exemplary understanding of the disciplinary content. Response provides an in-depth discussion of the specific issue within the context of the topic area using relevant details and numerous examples. Response analyzes the specific aspect of the issue to applicable areas within the discipline and provides insightful recommendations related to real-world contexts. Response is supported by current and relevant literature based on sound theories and best practices leading to effective conclusions.	Unsatisfactory: <30 Emerging: 31–34 Proficient: 35–38 Exemplary: 39–40 ____40__ / 40 pts. Comments I saw only focus and critical thinking.
Content Knowledge: Application Component 2 Communicates the ability to identify the most important (5–7) strategic issues facing an organization or business unit.		Response exhibits some gaps in the knowledge of the disciplinary content. Response discusses the specific issue superficially within the context of the topic area using a few details. Response relates the specific aspect of the issue to applicable areas within the discipline. Response is supported by current literature, but not consistently.		Response demonstrates a working command of the disciplinary content knowledge. Response examines the specific issue within the context of the topic area using relevant details and examples. Response analyzes the specific aspect of the issue to applicable areas within the discipline and their relevance to real-world contexts. Response is supported by current and relevant literature.	Unsatisfactory: <30 Emerging: 31–34 Proficient: 35–38 Exemplary: 39–40 __40____ / 40 pts. Comments There is no question in my mind that this student has excelled in all knowledge areas.
Content Knowledge: Application Component Communicates the ability to identify a preliminary set of recommended tactics for improving your company’s strategic alignment and operating performance.	Unsatisfactory: <30 Emerging: 31–34 Proficient: 35–38 Exemplary: 39–40 ___40___ / 40 pts. Comments Perfectly composed ideas and application components.
Written Communication/Personal Effectiveness Conveys through written word understanding and application of using ethical scholarship and proper grammar and mechanics.	Writing is disorganized and lacks appropriate APA style and format. Writing is unclear and includes major grammatical and usage errors.	Writing shows gaps with respect to organization and rhetoric and has some errors with respect to APA style and format. Writing is somewhat clear, but includes some major grammatical or usage errors.	Writing is concise and clear in content, language use, grammar, organization, and sentence structure. Writing is free of major grammatical and usage errors.	Writing is professional and scholarly, reflecting mastery of content, language use, grammar, organization, and sentence structure. Writing is cohesive, convincing, and well composed.	Unsatisfactory: <14 Emerging: 15–16 Proficient: 17–18 Exemplary: 19–20 ___14___ / 20 pts. Comments Too much written by non-original conventions of boilerplate and other copying.
Total: 97%	194/ 200 pts.

Running Head: STARTING THE STRATEGY

1

Starting the Strategy

Due

Sunday,

December

8

, 2013

A

ssignment 2:

—

Presentati

o

n of Strategy Audit Findings

In this assignment, integrate all the pieces of work you have drafted

and

formally turn it into the

capstone strategy audit.

In previous assignments, you performed multiple, specified analyses of your company (or any

company of your choosing). Those individual analyses provide the needed research to

successfully complete the following LASA.

Part I: Strategy Audit Report

Using th

e tools and framework learned in class and throughout the program, prepare a 15

–

page

strategy audit of your company with a companion presentation. The strategy audit is a

comprehensive analysis of the company’s

business strategy and operating

performance,

and

culminates in a series of recommendations for improving your company’s performance based on

the findings and conclusions of your analysis.

A strategy audit involves assessing the actual direction of a business and comparing that course

to the direction

required to succeed in a changing environment. A company’s actual direction is

the sum of what it does and does not do, how well the organization is internally aligned to

support the strategy, and how viable the strategy is when compared to the external m

arket,

competitors, and financial realities. These two categories, the internal assessment and the

external or environmental assessment, make up the major elements of a strategy audit.

In your strategy audit:

·

Provide a high

–

level analysis of the company’s

business strategy and operating

performance. Be sure to complete the following:

·

Analysis of the company value proposition, market position, and competitive

advantage

·

E

xternal environmental scan/five forces analysis

·

Internal environmental scan/organizati

onal assessment

·

SWOT Analysis

·

Balanced scorecard/strategy scorecard

·

Recommend specific tactics for improving your company’s strategic alignment and

operating performance.

·

Recommendations can include but are not limited to tactics in marketing,

branding

, alliances, mergers/acquisitions, integration, product development,

diversification or divestiture and globalization (if you recommend your company

go global, you must include a supply chain analysis and an analysis of your firm’s

global capabilities).

· E

xplain how the recommendations will help the company achieve its strategy and

vision.

You are to write this report as though you are a consultant to your company, and are addressing the executive officers of this company. You will collect and analyze a large amount of data in producing your report, but your final product will be condensed and focus on presenting your analysis findings and conclusions.

Your report should consist of the following sections in the given order.

1. Executive summary (1 page): A concise and insightful summary of the significant findings of your analysis and the recommendations you have for your executive team.

2. Strategic issues and recommendations (5 pages): Identify 5–7 most important strategic issues facing your business unit. Strategic issues arise from a mismatch between internal capabilities and external trends such that important opportunities are not being pursued or significant external threats are not being addressed under the current strategy.

The strategic issues list should integrate your SWOT analysis, your Five Forces analysis, and the organizational assessment and external environmental scan completed earlier during the course. These detailed analyses are the foundation for your final set of findings and recommendations presented to the executive team.

In developing your recommendations for addressing each strategic issue, consider misalignments that might be apparent in different operating areas:

i. Product portfolio: Are there changes to the target market segment, value proposition, or positioning of the product or service line needed?

ii. Structure: Are the organizational roles and responsibilities, decision-making authority, skill requirements, and work assignments properly configured and aligned to support the strategy?

iii. Organizational culture or behavior: Does the organizational culture inspire behaviors that support the strategy? Are the mission, vision, and values clearly articulated and aligned with the strategy? What new behaviors are needed?

iv. Value chain activities: Does the organization value chain fully align with the strategy? Are their activities that should be added, eliminated, or modified significantly?

v. Performance measures: Do the organization’s performance measures focus on the key drivers of strategic success? Is there a strategy scorecard that ties the main elements of the strategy to specific operating capabilities, including goals and key performance indicators (KPIs) that give an indication of incremental or predictive progress toward reaching strategic goals?

Your recommendations should fall into these general categories, but should be specific in terms of scope and expected impact.

These sections have been completed earlier in the course, and should appear as appendices:

3. SWOT analysis (2 pages—completed in Module 4): SWOT matrix illustrating strengths, weaknesses, opportunities, and threats.

4. Balanced strategy scorecard (4 pages—completed in Module 4): Develop a Balanced Scorecard for your business unit that reflects the key drivers for your business strategy.

5. Organizational assessment (3 pages—completed in Module 3)

6. External environmental scan and five-forces analysis (3 pages—completed in Module 2)

7. Market position analysis (3 pages—completed in Module 1)

Use information from your previous assignments to support your conclusions and recommendations and conduct additional research when needed. Make sure you properly reference and cite so that the location of information is clear.

Submit your 15-page report in Word format. Apply APA standards to citation of sources. Use the following file naming convention: LastnameFirstInitial_M5_A2 .

Part II: Companion Presentation

Finalize the companion with a 10-slide Power Point Presentation that summarizes the audit and recommendations in a compelling manner that persuades senior management to explore and possibly implement your recommendations. The elements of the presentation should include the following:

· Title

· Agenda

· Summary of audit

· Recommendations

· Key measurements

· Risks and benefits

· Call to action

· Next steps

Due

Sunday,

December
8
, 2013

A
ssignment 2:
—
Presentation of Strategy Audit Findings

In this assignment, integrate all the pieces of work you have drafted and formally turn it into the
capstone strategy audit.

In previous assignments, you performed multiple, specified analyses of your company (or any
company of your choosing). Those individual analyses provide the needed research to
successfully complete the following LASA.

Part I: Strategy Audit Report

Using th
e tools and framework learned in class and throughout the program, prepare a 15
–
page
strategy audit of your company with a companion presentation. The strategy audit is a
comprehensive analysis of the company’s business strategy and operating performance,
and
culminates in a series of recommendations for improving your company’s performance based on
the findings and conclusions of your analysis.

A strategy audit involves assessing the actual direction of a business and comparing that course
to the direction

required to succeed in a changing environment. A company’s actual direction is
the sum of what it does and does not do, how well the organization is internally aligned to
support the strategy, and how viable the strategy is when compared to the external m
arket,
competitors, and financial realities. These two categories, the internal assessment and the
external or environmental assessment, make up the major elements of a strategy audit.

In your strategy audit:

·

Provide a high
–
level analysis of the company’s
business strategy and operating
performance. Be sure to complete the following:

o

Analysis of the company value proposition, market position, and competitive
advantage

o

External environmental scan/five forces analysis

o

Internal environmental scan/organizati
onal assessment

o

SWOT Analysis

o

Balanced scorecard/strategy scorecard

·

Recommend specific tactics for improving your company’s strategic alignment and
operating performance.

o

Recommendations can include but are not limited to tactics in marketing,
branding
, alliances, mergers/acquisitions, integration, product development,
diversification or divestiture and globalization (if you recommend your company
go global, you must include a supply chain analysis and an analysis of your firm’s
global capabilities).

o

E
xplain how the recommendations will help the company achieve its strategy and
vision.