1. Evaluate Honda Motor Company’s operations in the Philippines and other countries. Select at least 2 countries. What are the advantages of the chosen countries? Why do you think Honda Motor Company was attracted to operate in these countries? 2. Suppose it is the first time of the Honda Motor Company to conduct international operations, as a business strategists, what type of international strategy and what country will you recommend to the company? 3. If you will be given a chance to operate a business internationally, what kind of business will you have?
Honda Motor Company, headquartered in Minato, Tokyo, Japan, is the world’s largest
motorcycle manufacturer and the world’s largest manufacturer of internal combustion engines.
Honda was the eighth largest automobile manufacturer in the world. Honda will re-enter Formula
One racing in 2015 as an engine supplier to the McLaren team. Honda annually produces and sells
thousands of scooters, water pumps, lawn and garden equipment tools, tillers, outboard motors,
robotics, jet engines, and solar cells. Honda has about 180,000 employees. In 2013, Fortune ranked
Honda Motor Company as the 50th most admired company in the world.
In late 2013, Honda moved away from its time-tested nickel-metal hydride batteries to
lighter, smaller and more powerful lithium ion chemistry, such as with the 2014 Accord Hybrid. Rival
Toyota continues to stick with NMH batteries on its conventional hybrids, citing their reliability and
lower cost. However, with its 2014 Accord Hybrid delivering an EPA-certified rating of 50 mpg in city
driving, Honda now offers a full three miles per gallon better than the previous “gas economy king,”
the 47 mpg Ford Fusion Hybrid. The Toyota Camry Hybrid comes in at 43 and the Hyundai Sonata
Hybrid at 40.Honda’s 2014 Accord Hybrid gets about 10 percent better fuel economy around town
than the original Toyota Prius, a dedicated gas-electric model that features a super-aerodynamic,
ultralight body. The new hybrid arrived in dealerships in late 2013. The number 50 is significant
because only the Prius has ever hit that EPA estimate mark for vehicles not plugged in for charging.
Honda is investing another $215 million in its Ohio operations, pushing the company’s total
to $2.7 billion in North American operations in only the past three years. The majority of the monies
will be spent on an expansion of manufacturing capabilities at the company’s Anna, Ohio, Engine
Plant, while the remainder is earmarked for a new building in Marysville, Ohio. Honda already has
the strongest foothold of any Japanese automaker, and produces more cars with U.S.-sourced parts than any automaker other than General Motors. Nine of Honda’s 16 mass-market cars are made with
over half American made parts, according to the survey – that’s more than Ford.
Honda is building a new car factory in Brazil, doubling its capacity in that country to 240,000
cars a year. The new factory is being built in Ityrapina, a city of almost 15,000, located approximately
120 miles northwest of Sao Paulo, Brazil’s largest city. The existing Honda factory in Brazil is in
Sumare, a city of around 100,000, located halfway between Ityrapina and Sao Paulo. The cost of the
new factory, including the purchasing of the 1,433 acres it will be located on, is about $435 million.
It will employ approximately 2,000 people, and produce the Honda Fit. The new plant should begin
operations in 2015. (David&David,2015)
Guide Questions:
1. Evaluate Honda Motor Company’s operations in the Philippines and other countries. Select
at least 2 countries. What are the advantages of the chosen countries? Why do you think
Honda Motor Company was attracted to operate in these countries?
2. Suppose it is the first time of the Honda Motor Company to conduct international
operations, as a business strategists, what type of international strategy and what country
will you recommend to the company?
3. If you will be given a chance to operate a business internationally, what kind of business
will you have?
a. Will you consider Philippines as a country for doing your business in? Why?
b. What kind of international strategies will you apply?
c. What other countries will you consider? Choose at least two
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