HONDA (1)

UNIVERSITY OF LAHORE

SUBMITTED TO Ma’am Aqsa Khan

SUBMITTED BY

COURSE MBA

SEMESTER 2nd Semester

SUBJECT MANAGEMENT

DATE MAY

Page No.1

Table of content

ACKNOWLEDGEMENT...................................................................................5

EXECUTIVE SUMMARY.................................................................................7

INTRODUCTION TO COMPANY..................................................................10

VARIOUS OFFERINGS:................................................................................12

HIERARCHY OF HONDA..............................................................................13

MANAGERIAL ROLES.................................................................................13

ORGANIZATIONAL HIRARCHE...................................................................14

ORGANIZATIONAL CULTURE....................................................................16

MANIFESTATIONS.......................................................................................16

ENVIRONMENT:...........................................................................................18

MEGA ENVIRONMENT.................................................................................19

TASK ENVIRONMENT..................................................................................20

SOCIAL RESPONSIBILITIES & SOCIAL ETHICS:......................................21

FORECASTING AT HONDA:........................................................................22

HONDA LOUNGE:........................................................................................22

MANAGAMENT BY OBJECTIVE (MBO)......................................................23

GOALS..........................................................................................................23

Page No.2

DEPARTMENTALIZATION...........................................................................24

CHAIN OF COMMAND:................................................................................27

JOB DESIGN:................................................................................................29

JOB ROTATION:...........................................................................................29

JOB ENRICHMENT:......................................................................................29

JOB ENLARGEMENT:..................................................................................29

TECHNOLOGY..............................................................................................30

SAFETY:........................................................................................................31

VTECH (VARIABLE VALVE TIMING AND LIFT ELECTRONIC CONTROL...................33

INNOVATION IN CITY...................................................................................35

RECRUITMENT.............................................................................................36

TRAINING & DEVELOPMENT......................................................................36

COMPENSATION..........................................................................................36

TEAMWORK & GROUP WORK...................................................................37

OPERATING TEAM WORK STRATEGY:....................................................37

TOTAL QUALITY MANAGEMENT...............................................................38

INTERNATIONAL MANAGEMENT...............................................................38

STOCK DATA:..............................................................................................40

ATLAS HONDA KEY DATA:........................................................................41

Page No.3

COMPETITIVE ANALYSIS:..........................................................................43

QUESTIONAIRE OF MANAGEMENT...........................................................45

RESPONSIBILITIES......................................................................................46

CONCLUSION:..............................................................................................47

SUGGESTIONS.............................................................................................47

References:....................................................................................................48

Page No.4

ACKNOWLEDGEMENT

FIRST of all thanks to ALLMIGHTY ALLAH who has given me the

strength to complete this project and due the blessing of Almighty I am

able to deliver what is beyond my knowledge.

It is befitted that some one who has helped me too much in so many

ways is our respected Teacher SIR TASSADAQ HUSSAIN who

privileged me with their experienced thoughts and professional tactics

of Management Without his guidance I was not able to achieve my

target. His precious time and courtesy for my project made me

confident and perfect on my work style.

Page No.5

Executive Summary

Introduction:

This project is mainly focusing the strategy & techniques that are adopted by HONDA ATLAS cars Pakistan ltd. I am covering the department that what type of techniques they are using or adopting to maintain their product in front of their customer. And what are the threats & opportunities they have.

Objectives:

Basically I am covering the management department and their techniques under the heading of organization management, that what there management techniques, what are there goals, how they manage there product, how they permute there product and last but not the least how they do management by objective.

Conclusion:

In my opinion the management techniques adopted by Honda Atlas cars Pakistan are up to the mark that is reason this company is one of the leading car selling companies in Pakistan and has strong share holders in the stock market as well.

Page No.6

Page No.7

Page No.8

Introduction to company

Introduction and history:

Honda Atlas Cars (Pakistan) Ltd is a joint venture between Honda motor company Japan and the atlas group of companies, Pakistan.

Construction of the factory started on April 17, 1993 and within a record time of 11 months, construction and erection of machinery was completed. The first car rolled off the assembly line on May 26, 1994. President of Pakistan, sardar farooq Ahmad khan leghari, did official inauguration. Mr. N. Kawamoto, President Honda motor company ltd. Japan was also present.

On July 14, 1994, car bookings started at 6 Dealerships in Karachi, Lahore and Islamabad. Now the dealership network comprises eighteen 3-S dealerships in 10 major cites of Pakistan and almost 57500 cars have been sold till March 2004.

To date, more than 80,000 cars have been produced and sold by the company. The company is also maintaining network of thirty 2-S Dealerships to provide efficient sale service to the Honda customers.

All dealerships are constructed in accordance with the standards defined by Honda world over. Local vendors are continuously patronized to develop local industry. The quality of local parts is thoroughly checked to meet stringent international standards.

Honda always strives to give outstanding service to its valued customers. In addition, our after sales division also conducts service campaigns to facilitate customer’s need for service. This has given our customers absolute confidence in our product, clearly evident from the ever-increasing sales volume.

It is the constant endeavor of Honda atlas cars (Pakistan) ltd to achieve No.1 customer satisfaction. They are committed to meet customer expectations and to provide them good value for money.

In 1996 the full model change was introduced, after just one and half year of commencement of production. Three models in Civic VTI, EXI and LXI with 1.6L and 1.5L engines were introduced in VTI and EXI models respectively. In 1997 Honda CITY 1.3L car in Et and EX models and Honda City EXI with 1.5L were launched.  Currently they are offering 9 different models of Honda CIVIC and CITY cars in wide range of colors with unique technological and other features.

Page No.9

Location of Office/Factory

Registered Office

1-Mcleod Road, Lahore.

Ph: (042)-7225015-17

Fax: (042)-7233518

Factory:

43-Km, Multan Road,

Manga Mandi, Lahore.

Ph: (042)-5871100, (04951)-384263-70

Fax: (042)-5877711-12

Email: [email protected], Website: www.honda.com.pk

Number of Employees:

The total number employees in the company are 1041.

And there are 11 employees in the marketing department all over Pakistan

Head of marketing department is Mr. Ayaz Hafeez.

Goals and objectives

The main objective of HONDA is “To be on the top”.

One of their aims is “to be No.1 in customer satisfaction in all three S, Sales, Service, and Spare parts”.

Page No.10

Various Offerings:

Product:

Page No.11

Hierarchy of Honda

In Honda hierarchy depends upon the current scenario and situations. They follow both horizontal and vertical line of hierarchy according to the need and demand of the situation.As Honda is Japanese based organization and it follow the structure with few hierarchal levels and narrow span of control i.e. having flat structure.

Managerial Roles

The managers at Honda practiced in all directions either they continuing in doing all perspectives of managerial jobs i.e. organizing, planning, leading and controlling. Honda arrange training session for their managers for their penetration in the system become polished

i)Planning.In planning, the managers at Honda set the specific goals to achieve their task and decide all alternatives how to best achieve them. E.g. whenever they plan to import Accord, they set the goals that how it can be suited to our environment.

ii)Organizing

In organizing managers at Honda allocate and arrange human and non-human resources so that their plan can be carried out successfully. Like it allocate the machinery and advanced technology in production unit that must be a relating to

iii)LeadingManagers at Honda influence others work behavior. Labours and subordinates to get optimum task achievement even by satisfying them accordingly.

iv)ControllingHonda’s manager regulates organizational activities so that actual performance conforms to expect organizational standards and goals e.g. Honda’s goal is to achieve customer satisfaction ratio so that can evaluate overall performance of their after sales service centre regularly.

Page No.12

Organizational hirarche

Page No.13

Board of DirectorCEO

Executive CommitteePresident

Corporate Governance Secretariat

Secretary

Audit Committee

Code of Conduct

Director Level Policy

Divisional / Functional Level

Policy

Compliance VP

Risk Management

GM

Corporate Ethics

VP Internal Audit

GM

Marketing

Finance

After Sales Services

Logistics

Production

Admin

HR

Individual Level Code of Conduct

Individual Associates

Front Division for Corporate Governance Improvement & Suggestions

Organizational Culture

Honda’s organizational culture is a beauty in itself. All members, all employees are in production department having the same shirts and caps with Honda’s logo.Organizational culture is also called as corporate culture. It represents the internal culture of the organization.

Manifestations

Symbols refer to the Honda’s logo and its high technology and quality.

Ceremonial In its dealership level they select the sales person of the year and annually arranged an award ceremony for its sales representatives.

Rites are at Honda represents by plan to conducting the environmental health.

Story Honda is famous for best of its quality and technology. And its customer assurance for its best after sales service

It is the constant endeavor of Honda Atlas Cars (Pakistan) Ltd to achieve “No.1 customer satisfaction”. They are committed to meet customer expectations and to provide them good value for money

Page No.14

Page No.15

Environment:The internal and external environment of Honda Atlas is given below.

i) Internal Environment: The general conditions that exist within Honda Atlas Cars (Pakistan) Limited

are:

Organization Members:

At Honda atlas, the members of the organization are united. They have a

peaceful working environment in the organization, where they interact and

work together. This is applicable in departments and in all the

administration offices.

Nature of Interaction:

At Honda Atlas the members of the organization interact with each other in

a conflict free environment. The employees are motivated by their

managers and the managers by their chief managers. Thus we conclude

that they operate in a tension free atmosphere and concentrate on their

growth.

ii) External Environment

In external environment two major factors involve, they are

A: Macro- Environment

B: Micro- Environment

Macro Environment

Page No.16

In macro environment, there are different factors to acting, they are as follows

i) Technological element

ii) Economic element

Iii) Legal-political element

IV) Social cultural element

v) International element

Honda‘s environment and these factors are reciprocal to each other.

i)Technological element

Honda is very advance in its technology as it introduces first automatic shifting gear system. Its ABS,G_CON and VTECH is a broad example of it that used for safety purposes.

Honda is excelling due to its high technology in market.

ii)Economic element

Honda’s economic element involves wealth production, distribution and consumption. In Honda capitalist economy is functioning and handles all its market growth and consumption. It also maintain and supervision of its market shares and production with reference of consumption.

iii)Legal-political element

Honda have to follow all legal and government system.e.g.they are imposed by government of Pakistan to purchase auto parts from local vendors to some extent.

Government implies tax legislation system on Honda as well.

iv)Social cultural elements

Honda face the problem of socio cultural differences, managers in Pakistan monitor trends changes in design, technology and interiors according to the environmental acceptance.

v) International element

Honda is internationally recognized organization. It is most demanding automobile in international market due to its high technology and advancement. Honda is effectively penetrating in most of the parts of world.

Micro environment

Page No.17

Customer and Clients:

The customers and clients of Honda Atlas are the public of Pakistan, the

organizations who are working in the country and the multinational

organizations that operate in Pakistan. The customers are loyal customers

are they are satisfied by the quality and manufacturing standards of the

company.

Competitors:

Other organizations that offer or have high potential for offering rival

products against Honda Atlas Cars (Pakistan) Limited are:

Pak Suzuki Motor Company Limited

Toyota Indus Motors Limited

Dewan Farooque Motors Limited

Ghandara Nissan Limited

Suppliers:

The organizations and individuals the supply the resources that are

requires by an organization to produce its products are called as

Suppliers. Honda Atlas is an autonomous manufacturing company. it

produces its own parts of vehicles.

Labor Supply:

At Honda Atlas there are more then 2000 employees who are working at

the lowest level of the hierarchy. They are employed in the departments of

welding, assembly, final assembly, after finishing and cleaning.

Government Agencies:

Page No.18

At Honda Atlas, the government agencies are providing help in the areas

of social responsibility. They have also reduced the amount of tax that is

applicable to the imported cars.

Social Responsibilities & Social Ethics:Honda Atlas Cars Pakistan ltd being responsible member of the society

considers preservation of the global environment as a crucial concern. Our

environmental philosophy is firmly based on the following guide lines.

1) Recognize the impact of significant aspect on the environment

resulting from activities , product and services

2) Formulate objectives and targets to control the effects of activates on

local environment as for as technically feasible.

3) Operate in compliance with relevant environmental laws , regulation

and other requirements that apply to our activities.

4) Create environment friendly attitude among associates.

Problem SolvingCrisis Problems:

Honda faced serious problem when they failed to provide dynamic

manufacturing and assembling facilities due to delay in supplies of spear

parts, interiors, etc from other countries as well as from local venders.

Non-Crisis Problem

In Honda issue when requiring resolution but without the simultaneous

importance and immediacy characteristics of a crisis e.g. The company

contributed Rs.10 millions ,to the President Relief Fund for Earthquake

Victims to support relief activities after the unfortunate disaster hit in 2005.

Page No.19

Opportunity Problems

Honda try to get significant organizational goal in appropriate actions like they

sensed that they can get maximum profit and sales by opening their

dealerships at canal near Doctors Hospitals and Allama Iqbal International air

port to maximize their customers.

Managament by Objective (MBO)GOALS

Official Goals:

HONDA MOTOR COMPANY LIMITED, JAPAN

Maintaining a global viewpoint, we are dedicated to supplying

products of the highest quality yet as a reasonable price for

worldwide customer satisfaction.

Proceed always with ambition & youthfulness.

Respect sound theory, develop fresh ideas, & make the

most effective use of time.

Enjoy your work & encourage open communications

Strive constantly for a harmonious flow of work

Be ever mindful of the value of research & endeavor.

Focusing on “satisfaction (customers, associates and

shareholders) with challenging spirit and flexibility, we are

dedicated to supplying latest generation cars with advanced

technology, greater fuel efficiency and competitive prices, along

with efficient and friendly after sales back up, maintaining

“quality” as core of all activities.

Page No.20

Page No.21

DepartmentalizationHonda Atlas Cars (Pakistan) Limited has a hybrid structure. Here some jobs

are grouped into departments by functions and others grouped by products or

market. At Honda Atlas, we have Office and Production. They are further

divided into different departments.

Office: Production:

Administration & HR Production Control

Logistics Welding

EDP Paint

Finance Engine Assembly

Marketing Fuel Assembly

Service Quality Control

Vendor Development

In the office section the Administration Department performs the duty of the

administering the organizations daily activities and planning for its further

improvement. Here at Honda Atlas, the CEO / President is the overall head of

the company. He makes such long term plans that can be carried to

administer the company’s performance and activities more minutely and

effectively.

Logistic Department looks after the transportation and motor vehicle

maintenance by updating the mileage, fuel consumption and maintenance of

all vehicles on daily basis. The Head of the department is a Senior Manager

to whom the Deputy Manager has to report after completing the log books of

every vehicle being used for administrative uses in the company. The logistic

department has its own importance in any organization. The keeping up of

records is the basic duty and task of this department.

Page No.22

Finance Department provides the financial support and resources to the

company. in this department, the Head is a Senior Manager who is a qualified

person in the studies of Corporate Finance.

Marketing department is of special significance to the company. the

products hat the company make are to be marketed by this department. They

use different marketing strategies to promote a new product e.g. a new model

of Honda Civic. They are in continuous touch with the market in order to get

daily updates for their products and new marketing strategies.

Service Department deals with the public dealings. They provide information

about the organization, cars and working conditions of the company. They

have special employees who are tasked to operate calls and give the correct

information on request.

Page No.23

Chain of Command:There is an effective Chain of Command at Honda Atlas Cars (Pakistan)

Limited. The line extends form the upper organizational level to the lower

level and they clarify the continuous updates/reports with the upper levels.

The first-line manager who is working in a department reports to the Deputy

Manager. The Deputy Manager is answerable to the Manager. Manager to

the Senior Manager, and ultimately the Technical Advisor is answerable to

the Senior General Manager. Finally, the Senior Manager is respo0nsible to

report the updates and news of daily activities to the Vice President and the

Chief Executive Officer.

Page No.24

CEO

Vice President

DepartmentDirectors

First- line managers

Span of Control and Trend toward the Downsizing: Span of Control at Honda Atlas Cars (Pakistan) Limited is efficient and

effective. There are many employees working in the departments of the

organization and almost all of them are being utilized to their maximum

capabilities.

In the department of Welding, there are 560 employees working eight ours a

day. They all work efficiently and the manager has his control over them.

When the work finishes the employees report to the manager at the end and

get further ideas and jobs from him. The contemporary view of span of control

recognizes that many factors influence the appropriate number of employees

that a manager can efficiently and effectively manage.

DOWN SIZING is not practiced at Honda as it is Japan based company.

Tall Structure

Page No.25

CEO

Present /Vice Present

HR/ IT/Finance/Marketing Manager

Employees

Job Design:Job design at Honda Atlas Cars (Pakistan) is well organized. Every

person knows his job well and performs it to his/her utmost capacity.

An employee working in the welding department knows his job well. He

has been provided with modern technology machines and instruments.

Due to job design he has a complete understanding of the work that is

to be done by him and what is required out of him. Similarly, every

working department knows work agendas and work requirements.

Therefore there is no confusion related to job design here at Honda

Atlas.

Job Rotation:In Honda Atlas, workers are periodically shifted in different

departments through different set of jobs in a planned sequence. An

employee who works in the department of welding is rotated in the

other departments like department of Final Assembly. This enables the

employees to learn jobs other than in which they are employed.

Job Enrichment : In Honda Atlas, the process of upgrading the job-task mix in order to

increase the potential for growth, achievement, responsibility and

recognition exists. Every employee gets an equal chance of new tasks

but they are somewhat related to the original task that he is

performing. This enables them to give a potential increase in the

growth and achievement.

Job Enlargement:The allocation of a wider of similar tasks to a job in order to make it

more challenging exists at Honda Atlas. This enables the employees of

the company to work in an environment that offer sufficient challenges

and stimulation. Although it is an improvement over the narrow span

job specialization, but it has limited success in motivating employees.

Page No.26

Recruitment1. They advertise the vacancies using the mass media.2. They collect the c.v via mail, email, through online apply on there web

site.3. They prefer people who are energetic not the people who come with

reference.4. They select the person after panel interview.5. In some vacancies the candidate had to pass written test.

Training & Development The company has spent more than Rs 13.7 million on the training and development of its associates as against 1.4 million last year.

Compensation

The company provides health facilities to its manpower and annual bonus as well. Honda conducts award ceremony for best sales executive

Product Life Cycle

According to our research Honda is laying in the boom stage. it has kept its position in that place due to its innovations. as soon as they feel they are going in decline stage the release the new model with new feature or enhanced features. Thus they prevent themselves from going into the declineStage.

Page No.27

Teamwork & Group work

Proceed always with ambition & youthfulness. Respect sound theory, develop fresh ideas, & make

the most effective use of time. Enjoy your work & encourage open communications Strive constantly for a harmonious flow of work Be ever mindful of the value of research & endeavor.

Operating Team work Strategy:

I. Always keep the deadlineII. Never make excusesIII. Team work

Page No.28

Total Quality Management

To achieve the No.1 customer satisfaction, they are dedicated to supplying

the prestigious products of Honda’s highest quality through our smart team

work defined by the regulatory parameters and continually improving

strategies and goals for better performance.

International ManagementHondas Trade policy in global business Market is excelling due to its highly

effective team work world wide. Honda’s Board of Directors and CEOs

frequently interact with each

Page No.29

Page No.30

Stock Data: Recent Stock Performance:

Current Price (10/26/2007):

162.55

Page No.31

1 Week 0.0%  13 Weeks 9.8% 

4 Weeks 15.3%  52 Weeks n/a

Atlas Honda Key Data:

Ticker:

ATLH

Country:

PAKISTAN

Exchanges:

KAR

Major Industry

Automotive

Sub Industry:

Diversified Automotive Mfrs.

2006 Sales

17,420,263,000

(Year Ending Jan 2007).

Currency:

Pakistan Rupees

Page No.32

Market Cap:

7,688,363,990

Fiscal Yr Ends:

June

Shares Outstanding:

47,298,456

Share Type:

Ordinary

Closely Held Shares:

34,320,117

Page No.33

Competitive Analysis:

The competitive analysis for Honda Atlas is as follows:

Porter’s Competitive Forces Model:

Porter’s Competitive Forces model analyzes the nature and

intensity of competition in a given industry in terms of five major

forces.

Rivalry:

Honda Atlas Cars (Pakistan) Limited has rivalry with the

other automobile manufacturing companies in the

Automobile Industry of Pakistan. The companies that

offer rivalry to Honda Atlas are:

i. Pak Suzuki Motor Company Limited

ii Toyota Indus Motors Limited

iii Dewan Farooque Motors Limited

iv Ghandara Nissan Limited

Various competitive tactics among rivals lower prices that

can be raise costs of doing business.

Bargaining Power of Customers:

At Honda Atlas Cars (Pakistan) Limited there is no

customer power of bargaining, because the company is

already giving good quality at a reasonable rate.

Page No.34

Bargaining Power of Suppliers:

In the automobile industry of Pakistan there is

comparison between the rivals in prices. But as Honda

Atlas is an autonomous body in manufacturing their

products, so they do not encounter the bargaining

power of suppliers.

Threat of substitute products:

Honda Atlas has a threat from their rivals in the industry,

but they maintain their quality standards and

manufacturing status at a relatively affordable rate.

Page No.35

QUESTIONAIRE OF MANAGEMENT

Q.1;What are basic managerial roles are follow in your organization?

Q.2; What is your organizational culture and its manifestations?

Q.3;What are your environmental elements?

Q.4;What are the roles performed by external and internal environmental elements?

Q.5;How you are identify your social responsibility and social ethics?

Q.6;What method your organization adopt for solving a problem?

Q.7;What type of forecasting technique is used in your organization?

Q.8;Is management by objective technique used in your organization or not?

Q.9;What about your departmentalization process?

Q.10;What is the job design in your organization?

Q.11;What is your decision making method?

Q.12;How your organization adopt downsizing strategy?

Q.13;How your organization better in technology?

Q.14;How do you innovate the technology?

Q.15;What strategy your organization adopt for recruitment and selection?

Q.16;How do you provide training to your employees for better development?

Q.17;How do your organization compensate its employees?

Q.18;What is your organizational life cycle?

Q.19;What polices are adopted to motivate the employees?

Q.20;How your leadership polices work?

Q.21;What do you prefer teamwork or group work?

Q.22;What about your total quality management?

Q.23;How your organization’s International Management work?

Q.24;What are the contents of your performance appraisal forms?

Page No.36

R esponsibilities

Masood sadiq:

1. Slides editing and customizing2. Company information.3. Typing of documentation.4. Surfing for information.

Sofia Afzal rana:

1. Prepared Questioner2. Introduction of company.3. Typing of project.4. Environment study of company.

Ambreen Khan:

1. Found feature analysis of Honda cars.2. Study technology of cars.3. Found MBO of the company.4. Preparing slides5. H.R study of company.

Syed fahad hussian shah:

1. Found job & ORGANIZATIONAL HIRARCHE

2. Editing and final touching of project.

3. Given CONCLUSION & SUGGESTIONS.

4. GROUP MANAGEMENT.

5. TASK ALLOCATION.

6. FOUND FINANCIAL DATA.

Page No.37

Conclusion:

After reviewing and studying the company, we conclude that Honda Atlas

Cars (Pakistan) Limited has a well structured Organizational Design and

Structure. It stands in the top 300 hundred companies of Pakistan.

The financial position of Honda Atlas is stable and therefore it is better for an

investor to invest in this company.

Suggestions :

Honda Atlas should increase their product line

besides Honda Civic and Honda City.

They should improve upon their social

responsibilities.

Build cars with strong body structures.

Page No.38

References:

Books:

Management by Kathryn M. Bartol & David C. Martin

Financial Report:

Honda Atlas Cars (Pakistan) Limited- Annual Report

Websites:

www.honda.com.pk

www.honda.com

http://cc.msnscache.com/cache.aspx?

q=72314581226354&mkt=en-GB&lang=en-

GB&w=6ccbdd50&FORM=CVRE2

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