Strategic Management of Honda in Vietnam

Strategic Management of Honda in Vietnam I Preface: In business today, a company can have a good finance, good technologies but they cant get the success without good strategic management. A company or an organization has good strategic management. They will find out the methods to manage and develop the company or organization. Strategic Management is a process refers to the answers of three questions: What are your companys targets? What is the best way to manage and meet targets requirement? What are the things you need in strategic management process? Strategic Management is started from determining the goals of the company, resource and necessary policies to implement the targets which are given. This process also includes how to promote and innovate products or service of the company. In my opinion, Strategic Management with a producing company is a process which includes Strategic in quality management of products, this process help a can provide best products to the customers. Through it, the company can attack new clients. Strategic in product management, this process includes auditing, checking and managing financial problem in the bank. Strategic in sales and marketing, through this process the company can know about their problem in customers relationship, what they have done well and what they need to change. In my assignment, I have research on SWOT and 5 forces which refer to strategic management of a producing car company. I think that SWOT and 5 forces are used in a particular industry and economy and they affect to business status and policies of Honda that I have researched. II Introduction: In March 2005, Honda Vietnam has received the license of Ministry and Planning and Investment Portal of Vietnam to allow Honda produces and assembles cars in Vietnam. This is an important history of Honda Vietnam; it marked the development of Honda Vietnam in Vietnam market. After one year and five months, Honda Vietnam has successful built factories and construction agency network. The company has completed the training programs, service and safe driving for employees and agents released first car model in August 2006. Since this time, Honda Vietnam is not only known as motor manufactures with product reputation, but also a manufacturer of automotive prestige in Vietnam market. Manufacture of Automobiles: Established: 2005 Office: Phuc Thang, Phuc Yen, Vinh Phuc province. Capital: Approximately $ 60 million Area: 17.000m2 Labor: 408 People Capacity: 10,000 cars per year Automotive manufacturing plant is equipped with machinery and equipment similar to the Honda plant in other countries with criteria focusing especially on quality, safe and friendly environment. Moreover, the plant also is equipped with engine assembly lines with the desired gradual localization of products Cars. In my assignment, I will focus on 2 problems SWOT and 5 forces and write about how it assist decision making and business of Honda Vietnam. III SWOT analysis: In this part, I will write about SWOT of Honda Vietnam which used to compare with their competitors in Vietnam market. A, SWOT analysis of Honda Vietnam: (S)trengths: Vietnam has a big population therefore, Honda has a large market to provide cars and recruit employees. Honda has good brand in Vietnam market so; it helps the company to sell well in Vietnam market. Honda Vietnam concentrates on advanced technology, high quality and class leading safety. Honda always focuses on world-class quality cars, even the smallest accessories. Hondas products (cars) have good quality and design. In addition, they have reasonable prices therefore they will attract more customers. Hondas cars have good speed and power but they consume low fuel therefore, it is suitable with Vietnam traffic with many traffic jams. In addition, it contributes to make minimize pollution. Honda always tries to develop and research new technology therefore, they will make their cars better with good speed, power and low fuel. The company has some promotion programs for customers such as: Customers who has received Honda Civic will receive VISA Debit card issued by a bank with value is 20 million VND. (W)eaknesses: Honda Vietnam focuses on producing and researching motorbike too much therefore they cannot spend much time for cars. There are only two models cars that produced by Honda Vietnam, Honda Civic and Honda CRV so the customers have less choice than others brand. Honda Vietnam has accorded to parent company of Honda in Japan. Honda Vietnam has to flow the policies of Head Company therefore; they cannot apply their strategies in Vietnam market that havent allowed by parent company. The first factory car of Honda has established in august 2006 therefore Honda Vietnam has less experience than some competitors such as Toyota, Nissan, etc. Vietnam is one of countries where have high tax with car therefore, the price must be high in Vietnam market. Honda requires a deposit for purchasing cars but Nissan and Toyota dont do that therefore, it is a disadvantages of Honda. (O)pportunities: Brand of Honda has been created in the pass because motorbike of Honda is very famous in Vietnam market therefore they dont need much time to create brand so, when cars of Honda Vietnam has produced and go to market, the customers will have more trust with this brand. In addition, when Toyota (the biggest competitor of Honda) has many problems and must recall many cars. In the future, with good technology, Honda can focus on designing and implementing new product with good quality, reasonable price and low fuel. Improving the quality of product, services and customer relationship as well as building caring center for customers. Honda also has opportunities in developing the fuel efficiency according to the increase of energy price. (T)hreats: Economic crisis will affect directly to business status of Honda. It is very serious because, when crisis will make the bad sale and it also affects to Hondas loyal customers. There are many competitors in Vietnam market such as: Toyota, Nissan, CuuLong, etc. They try to attract and engage customers therefore, Honda cannot control the market. Economic crisis will make the USD charge the value therefore, price of cars of Honda will be charged. It will be difficult for customers. Honda can lose the market. The government has some policies about increasing tax of cars and fuel therefore, it will affect to business status of Honda. IV Five Forces of Honda Vietnam: 1. Socio-cultural Forces: Analysis of societal trends is very important because, almost of stakeholders are members of society and some value can bring from society therefore, it creates opportunities and threats of an organization, for example: when a tobacco company makes more pollution, they will be rejected by society therefore their business status will be down. In addition, firm can decrease the risk if they have good relations with society. In my assignment, I have researched and analyzed to understand how social cultural is important and how it affects to Honda Vietnam. Vietnam has nearly 89 million, we have a large market. In addition, the living of people is increasing especially in cities such as: Hanoi, Hochiminh city, Danang, etc. therefore, demand of cars is increasing however, traffic in Vietnam is not good therefore it is a difficult thing with customers. Vietnam is a developing society; it has many opportunities but also includes threat. Vietnam is socialist country. Political system has made the mechanism only one political party (the Communist Party of Vietnam) leadership. This thing will make some difficult things for Honda Vietnam and others companies have foreign investment. Socio-cultural creates a favorable for business of company. Government of Vietnam treats fairly with all of company. Vietnamese business people always base on helping of government with long-time subsidized, therefore, business which always require the helping from government. It is negative thing. Through some law, policies and regulations government has recognized the demand of the company such as Honda wants to decrease tax. It is very good for this company. Social-cultural of Vietnam also creates a fair competitive therefore, Honda Vietnam will have more than opportunities. Social-cultural forces relate to society and culture problems of Vietnam and how it affects to business status of Honda Vietnam. It also helps Honda Vietnam pay attention to enhance their reputation and long-term plans. 2. Economic forces: Economic forces include some factors which affect to organization action and its performances such as: GDP, inflation rate, employment rate, demographic changing, monetary policies and financial market, etc. In my assignment, I will research on Vietnam economy to find out information which influence to Honda Vietnam. Vietnam economic in 2009 was quite good in the context of global crisis. GDP is increasing with more than 6%. Exports were over 60 Billions USD. Financial and credit systems were quite stable. These things explain that: economy of Vietnam is still quite good therefore Honda Vietnam and many companies will not meet too serious problems. However, inflation of Vietnam was high in 2009 about more than 15%. This thing will influence to Honda Vietnam because this company has to pay high interest rate. In addition, low interest rate will make investment efficiency because, they are less costly to finance. In 2009, Vietnam economy has seen many changing in oil price, monetary and financial. They influence to price of Honda Vietnam product and make the demand of products of customers can be reduced. Besides that, Vietnam and many country depend too much on USD and Vietnam monetary is not good enough therefore, it makes some difficult things to Honda business such as: Honda Vietnam want to sell their product and receive USD because USD price is stable but Vietnamese customers want to buy by VND because, exchange rate of USD per VND is too high. Economic forces have many important missions in strategic management of Honda. It helps Honda can monitor and forecast in domestic and event international economic. 3. Technological Forces: Good technological creates a new and good product, service and event an industry. Technology includes internet, computers, machines, telephones, and technology innovation, etc. Technology refers to the knowledge of applying, producing and delivering product and service in a country. Vietnam technology is very important with Honda Vietnam because, there are many good technologies Vietnamese worker will be advanced and have many knowledge in producing. In recent years, many companies, organizations and corporate have tried to invest more in technology. However, they tried to invest in purchasing and improving hardware rather than build good software. In addition, they only buy technology of developed countries rather than produce, renovate and improve, etc. Although invest in to hardware however, about 36% of companies are asked still use the technology from 1980s. This thing is very bad because, Honda Vietnam will meet some difficult problems when they want to build more factories. In addition, the co-ordinate between foreign companies and domestic companies is bad therefore it make the difficult for transferring new technology. Technology is very important with all of industries and Honda Vietnam is not out of this thing. It helps the company to save time and money and participate in several kinds of several kind of technology can help the company get more profit. 4. Political/Legal Forces: Vietnam government has many policies, laws and legalization to protect and undertake for companies who has business in Vietnam including domestic and foreign companies. the government guarantees that they will not control and help any private company therefore, it creates a fair competitive market in Vietnam. Vietnam government always encourages the investment to many businesses. In addition, Vietnam has a stable policy. It is an important thing to attract the foreign investment; therefore, foreign and domestic investors want to invest more in Vietnam. This thing will be an advantage of Honda Vietnam because they will have more investment to develop their technology, market and business. Vietnam government always applies the same law, policies and legalization with all of companies therefore, it guarantees for Honda can run their business well. Besides that, Vietnam has a large market and it is a good place which Honda can use to join in other markets such as: China, Laos, Malaysia, etc. because our geographic is very good and it is easy to transfer product to many countries in Asia, Southeast Asia, ect. 5. Competitive Forces: Vietnam is an attractive investment therefore, there are many foreign companies invest to produce their product in Vietnam without Honda such as Toyota, Nissan, CuuLong, etc. However, Toyota is the biggest competitors of Honda because; they stay in Vietnam long time ago. They also have good technology and human resource. Their product is good and reasonable price. In addition, Vietnam government guarantees a fair competitive market therefore; they will not help any company. Honda must compete by your-self. However, in the beginning of 2010, Toyota has a big problem and they must recall more than 1 million cars. It is a crisis with Toyota but it is also a lucky thing with Honda because Toyota reputation will be down so, if Honda has good strategies, they will control the Vietnam market. In conclusion, competitive forces are very useful in the modern business. It helps the company as Honda can define their SWOT and find out the good way to compete. In addition, it also helps the company can look at the future and event deal with crisis.

Roles of Transportation

CHAPTER 3. ROLE OF TRANSPORTATION IN SOCIETY NPTEL May 7, 2007 Chapter 3 Role of transportation in society 3. 1 Overview Transportation is a non separable part of any society. It exhibits a very close relation to the style of life, the range and location of activities and the goods and services which will be available for consumption. Advances in transportation has made possible changes in the way of living and the way in which societies are organized and therefore have a great in uence in the development of civilizations.This chapter conveys an understanding of the importance of transportation in the modern society by presenting selected characteristics of existing transportation systems, their use and relationships to other human activities. Transportation is responsible for the development of civilizations from very old times by meeting travel requirement of people and transport requirement of goods. Such movement has changed the way people live and travel. In developed and develo ping nations, a large fraction of people travel daily for work,shopping and social reasons.But transport also consumes a lot of resources like time,fuel, materials and land. 3. 2 Economic role of transportation Economics involves production, distribution and consumption of goods and services. People depend upon the natural resources to satisfy the needs of life but due to non uniform surface of earth and due to di erence in local resources, there is a lot of di erence in standard of living in di erent societies. So there is an immense requirement of transport of resources from one particular society to other.These resources can range from material things to knowledge and skills like movement of doctors and technicians to the places where there is need of them. 3. 2. 1 The place, time, quality and utility of goods An example is given to evaluate the relationship between place, time and cost of a particular commodity. If a commodity is produced at point A and wanted by people of anoth er community at any point B distant x from A, then the price of the commodity is dependent on the distance between two centers and the system of transportation between two points. With improved system the commodity will be made less costly at B. . 2. 2 Changes in location of activities The reduction of cost of transport does not have same e ect on all locations. Let at any point B the commodity is to be consumed. This product is supplied by two stations A and K which are at two di erent distances Introduction to Transportation Engineering 3. 1 Tom V. Mathew and K V Krishna Rao CHAPTER 3. ROLE OF TRANSPORTATION IN SOCIETY NPTEL May 7, 2007 from B. Let at present the commodity is supplied by A since it is at a lesser distance but after wards due to improvement in road network between B and K,the point K becomes the supply point of product. . 2. 3 Conclusions †¢ Transport extends the range of sources of supply of goods to be consumed in an area, making it possible for user to get resources at cheap price and high quality. †¢ The use of more e cient systems of supply results in an increase in the total amount of goods available for consumption. †¢ Since the supply of goods is no longer dependent on the type of mode, items can be supplied by some alternative resources if usual source cannot supply what is needed. 3. 3 Social role of transportationTransportation has always played an important role in in uencing the formation of urban societies. Although other facilities like availability of food and water, played a major role, the contribution of transportation can be seen clearly from the formation, size and pattern, and the development of societies, especially urban centers. 3. 3. 1 Formation of settlements From the beginning of civilization, the man is living in settlements which existed near banks of major river junctions, a port, or an intersection of trade routes. Cities like New York, Mumbai and Moscow are good examples. . 3. 2 Size and pattern of settlements The initial settlements were relatively small developments but with due course of time, they grew in population and developed into big cities and major trade centers. The size of settlements is not only limited by the size of the area by which the settlement can obtain food and other necessities, but also by considerations of personal travels especially the journey to and from work. The increased speed of transport and reduction in the cost of transport have resulted in variety of spatial patterns. . 3. 3 Growth of urban centers When the cities grow beyond normal walking distance, then transportation technology plays a role in the formation of the city. For example, many cities in the plains developed as a circular city with radial routes, where as the cities beside a river developed linearly. The development of automobiles, and other factors like increase in personal income, and construction of paved road network, the settlements were transformed into urban centers of intense travel activity. 3. 4 Political role of transportationThe world is divided into numerous political units which are formed for mutual protection, economic advantages and development of common culture. Transportation plays an important role in the functioning of such political Introduction to Transportation Engineering 3. 2 Tom V. Mathew and K V Krishna Rao CHAPTER 3. ROLE OF TRANSPORTATION IN SOCIETY NPTEL May 7, 2007 units. 3. 4. 1 Administration of an area The government of an area must be able to send/get information to/about its people. It may include laws to be followed, security and other needful information needed to generate awareness.An e cient administration of a country largely depends on how e ectively government could communicate these information to all the country. However, with the advent of communications, its importance is slightly reduced. 3. 4. 2 Political choices in transport These choices may be classified as communication, military movement, travel o f persons and movement of freight. The primary function of transportation is the transfer of messages and information. It is also needed for rapid movement of troops in case of emergency and finally movement of persons and goods.The political decision of construction and maintenance of roads has resulted in the development of transportation system. 3. 5 Environmental role of transportation The negative e ects of transportation is more dominating than its useful aspects as far as transportation is concerned. There are numerous categories into which the environmental e ects have been categorized. They are explained in the following sections. 3. 5. 1 Safety Growth of transportation has a very unfortunate impact on the society in terms of accidents. Worldwide death and injuries from road accidents have reached epidemic proportions. killed and about 15 million injured on the road accidents annually. Increased variation in the speeds and vehicle density resulted in a high exposure to acci dents. Accidents result in loss of life and permanent disability, injury, and damage to property. Accidents also causes numerous non-quantifiable impacts like loss of time, grief to the near ones of the victim, and inconve- nience to the public. The loss of life and damage from natural disasters, industrial accidents, or epidemic often receive significant attention from both government and public. This is because their occurrence is concentrated but sparse.On the other hand, accidents from transport sector are widespread and occurs with high frequency. For instance, a study has predicted that death and disabilities resulting from road accidents in comparison with other diseases will rise from ninth to third rank between 1990 and 2020. Road accidents as cause to death and disability could rank below heart disease and clinical depression, and ahead of stroke and all infectious diseases. Significant reduction to accident rate is achieved in the developing countries by improved road des igned maintenance, improved vehicle design, driver education, and law enforcements.However in the developing nations, the rapid growth of personalized vehicles and poor infrastructure, road design, and law enforcement has resulted in growing accident rate. 3. 5. 2 Air Pollution All transport modes consume energy and the most common source of energy is from the burning of fossil fuels like coal, petrol, diesel, etc. The relation between air pollution and respiratory disease have been demonstrated by various studies and the detrimental e ects on the planet earth is widely recognized recently. The combustion of Introduction to Transportation Engineering 3. Tom V. Mathew and K V Krishna Rao CHAPTER 3. ROLE OF TRANSPORTATION IN SOCIETY NPTEL May 7, 2007 the fuels releases several contaminants into the atmosphere, including carbon monoxide, hydrocarbons, oxides of nitrogen, and other particulate matter. Hydrocarbons are the result of incomplete combustion of fuels. Particulate matters are minute solid or liquid particles that are suspended in the atmosphere. They include aerosols, smoke, and dust particles. These air pollutants once emitted into the atmosphere , undergo mixing and disperse into the surroundings. 3. 5. Noise pollution Sound is acoustical energy released into atmosphere by vibrating or moving bodies where as noise is unwanted sound produced. Transportation is a major contributor of noise pollution, especially in urban areas. Noise is generated during both construction and operation. During construction, operation of large equipments causes considerable noise to the neighborhood. During the operation, noise is generated by the engine and exhaust systems of vehicle, aerodynamic friction, and the interaction between the vehicle and the support system (road- tire, rail-wheel).Extended exposure to excessive sound has been shown to produce physical and psychological damage. Further, because of its annoyance and disturbance, noise adds to mental stress and f atigue. 3. 5. 4 Energy consumption The spectacular growth in industrial and economic growth during the past century have been closely related to an abundant supply of inexpensive energy from fossil fuels. Transportation sector is unbelieved to consume more than half of the petroleum products. The compact of the shortage of fuel was experienced during major wars when strict rationing was imposed in many countries.The impact of this had cascading e ects on many factors of society, especially in the price escalation of essential commodities. However, this has few positive impacts; a shift to public transport system, a search for energy e cient engines, and alternate fuels. During the time of fuel shortage, people shifted to cheaper public transport system. Policy makers and planners, thereafter gave much emphasis to the public transit which consume less energy per person. The second impact was in the development of fuel-e cient engines and devices and operational and maintenance practi ces.A fast depleting fossil fuel has accelerated the search for energy e cient and environment friendly alternate energy source. The research is active in the development of bio-fuels, hydrogen fuels and solar energy. 3. 5. 5 Other impacts Transportation directly or indirectly a ects many other areas of society and few of then are listed below: Almost all cities uses 20-30 percent of its land in transport facilities. Increased travel requirement also require additional land for transport facilities. A good transportation system takes considerable amount of land from the society.Aesthetics of a region is also a ected by transportation. Road networks in quite country side is visual intrusion. Similarly, the transportation facilities like y-overs are again visual intrusion in urban context. The social life and social pattern of a community is severely a ected after the introduction of some trans- portation facilities. Construction of new transportation facilities often require substant ial relocation of residents and employment opportunities. Introduction to Transportation Engineering 3. 4 Tom V. Mathew and K V Krishna Rao CHAPTER 3. ROLE OF TRANSPORTATION IN SOCIETY NPTEL May 7, 2007 3. Summary The roles of transportation in society can be classified according to economic, social, political and environmental roles. The social role of transport has caused people to live in permanent settlements and has given chances of sustainable developments. Regarding political role, large areas can now be very easily governed with the help of good transportation system. The environmental e ects are usually viewed negatively. 3. 7 Problems 1. Safety criteria of transportation is viewed under (a) Political role of transportation (b) Environmental role of transportation c) Social role of transportation (d) None of these 2. Which of the following is not a negative impact of transportation? (a) Safety (b) Aesthetics (c) Mobility (d) Pollution 3. 8 Solutions 1. Safety criteria of tr ansportation is viewed under (a) Political role of transportation (b) Environmental role of transportationv (c) Social role of transportation (d) None of these 2. Which of the following is not a negative impact of transportation? (a) Safety (b) Aesthetics (c) Mobilityv (d) Pollution Introduction to Transportation Engineering 3. 5 Tom V. Mathew and K V Krishna Rao

Biographies Of Individual Business Entrepreneur Steve Jobs

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What Makes The Paleo Diet Popular - 1087 Words

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But there is no doubt that geneticsRead MoreExercise, Strength Training, Stretching And Balance Exercises1742 Words   |  7 PagesThe four main types of exercise are aerobic exercise, strength training, stretching and balance exercises. The first type of exercise focuses more on cardiovascular and respiratory endurance. The type of activity where it makes you sweat, and makes you breathe harder and your heart to beat faster. This type of exercise helps improve the circulation of oxygen in the body and, it increases a person’s energy. It also helps reduce stress, anxiety, the risk of heart diseases, and most importantly bodyRead MoreA Meal Plan For A Meals1161 Words   |  5 PagesNo mat ter how you choose to plan out your paleo meals, it won’t take long for you to get the hang of it and it will come as natural as picking up that take out menu. The option to go with a meal plan service may prove to be a good way to get you into good habits. Try out a sample, free, or trial program and see what works best for you and your household. This, paired with some good paleo knowledge of what you should and shouldn’t eat, will help give you the necessary skills to plan meals on yourRead MoreShould You Go All Paleolithic?1771 Words   |  8 PagesSteven Yates Mrs. Kale Nutrition 6 December 2015 Should you go all Paleolithic? Paleo diet focuses on you consuming unrefined, unprocessed foods. In hopes of reducing hidden additives, sweeteners, sodium and other artificial flavorings by consuming what our ancestors did. The diet consists of fresh lean meats, fish, vegetables, eggs, nuts and seeds while avoiding dairy, grain, potatoes, salt and other processed foods. Not everything you read should be believed without supporting evidence many studies