management skill honda car.docx

8/10/2019 Management Skill Honda Car.docx

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Research methodology

MARKET RESEARCH

Market research is the critical tool to derive the maximum advantage over the competitor from

the same market. The main advantage of doing the market research is the it helps to find out the

important information like market trend, market need, size of the market, future opportunities

and competition.

The research in the automobile industry is very vital and expensive since the auto mobile

industry is changing rapidly in the case demands according to the trends in a worldwide demand.

When we closely analysing the automobile industry the trends can be pointed out like the

frequent merging, outsourcing, off shoring etc. The component design of the most of the

countries in this field is now been outsourced to the countries which the labour and the row

material cost is less. Another important trend we can observe in the auto mobile industry is that

the popular auto makers are now expanding their business to the provide the financial service to

their buyers. In the case of the south East Asia countries also this modern trends are dominated in

the changing scenario of the market trends.

In the field of the technology the Morden technology like hybrid and green technology, clean

diesel, fuel cell technology etc are the areas the motor companies focusing and researching on.The skyrocketing price of the gas is the main challenge the companies facing in today business

environment. Improved technology for the fuel efficiency and environmental care are the most

effective business strategy for increasing the market share in the south East Asian courtiers. The

market in the south east Asian countries becoming saturation rapidly. Even the used care

business chains are establishing their business chains all over the globe due to the globalisation.

Another major factor which has influenced the automotive industry is the E commerce. Being

one of most important e marketing trends e commerce can play a vital role in the marketing andsales sector of auto mobile manufacturing industry. The internet is becoming the first option of

the customers to get the information and making the purchasing decisions. For example the

online site Autobtel helps to direct the customers to the dealer, but at the same time the site act

like making bids on the financing and insurance business of the car manufactures to increase the

level of competition in the market. Since the basic principle is that the lower price and the higher


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quality will enhance the customer to buy the product, companies have to consider a lot of things

in the market trough the market research. These include the adoption of the different cost

effective techniques and methods which should be effective in compelling the customers to buy

the new car in the market. (Alacrastore,2009)

Target market

Positioning a product in the market is the most difficult phenomena of every company. Because

this requires a lot of market research and planning in targeted market. In this case the Honda

Company is targeting the south East Asian market. The car designed is especially for middle

class people since it is an economic car. The south East Asia countries are developing countries.

so high expensive uneconomic cars cannot be successful in that market . The south East Asian

countries are recovering fast from the bad effect of financial crisis. They have demonstrated the

great recovery from the global financial crisis. The economic growth rate of all most six

countries had reached to &,3 percent in 2010. This was about 1.3 percent in 2009. One of the

major developments was in the transport infrastructure which made the country a good market to

introduce economic cars. The economic growth can be indentified from the graph.

(GDP growth rate of South East Asian countries)


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The south eastern countries are focusing to develop an integrated transport infrastructure as the

part of their development plan. This will promote the car manufactures to develop new models

which suite the new strategy of the countries. The new transport infrastructure will enable the

connectivity between regional and sub regional places. The main objective of the strategy is to

reducing the excessively increasing transport cost, improving transport sector and also to

increase the competition, efficiency etc. (oecd ,n.d.). This business environment is best for

placing an economic car. Since the transport infrastructure is growing the middle class people

tends to by the car which can be adaptable by them to maintain. The new Honda car is a fuel cell

car with advanced fuel efficiency technology, so it will best suited to this business environment.

To study the market i suggest the inductive method of research because the study will proceed

with the basis of the above observations we have and finalize to a theory. The observations are

the rapid overcome of the economic crisis and this can be studied more detailed with this

research method.

INDUCTIVE RESEARCH METHOD

The inductive method is the opposite way of deductive method of progressing the research. The

reasoning of this type of approach is moving from a more specific observation to broader idea or

theories. So this approach can be also called the bottom up approach. The first step is we bring

the specify theory we want to study on and measure it by identifying the regularities and

patterns. Formulates the hypothesis that we can explore the specific information. Finally ends the

research in much general theories or conclusions. (Social research methods, n.d)


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Targeted customer

Customer can be defined as the human to whom the company buys his products. Everyone in this

world is a customer of one or other. Selecting the good product according to his wants and needs

with the lowest available cost is the common nature of customers around the globe. The new car

of Honda is focusing on the following customer group.

Middle class people: The middle class people of South East Asian countries are highly emerged

by the new urban educated people and due to the stated modernization and capitalist

transformation. In the last two decade new urban middle class has developed as a result of the

educational expansion of the society. The people became more aware about the need of

education in enhancing the life style. Thus they can be get attracted to new trends in the market

if it is economic to them. Honda is focusing on delivering a new product which will suit this

requirement of the customer with the energy efficiency and other green technology of the car.

Youth and family: Since the car is well suited for the private use of the family this segment of

the market is also targeted. The interior space of the car is specially designed to occupy

maximum members of the family and their comfort level is also taken into account. The youth

population is also attracted to the car because of the Morden technology multimedia facilities are

also integrated in the car. Since the car is economic to use because of the less fuel conception

this can be more use full to this two groups of the customers.

Customer profile

To develop the strategy we need to know detailed about the customer profile. This includes the

information like their style, their needs, demand, preferences etc. This is critical in the placement

of a new product in the market. Sometimes companies made mistake in placing the product in

the wrong market without analysing the customer profile of the market. Now a days there is a lot

of research organizations to do research for the companies which are planning to introduce a new

product in particular market. The survey methods and the interview methods of research is very

well important for this type of research because it helps to obtain the personal preferences of the

customer in a specified locality so that the company can place a new product according to the

need of the customers.


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For the new car of Honda as well the perfect picture of the customers they targeting is important.

This helps the company to make some final adjustment to meet the upcoming trends and also to

ensure the the product is well suited in the market. The deductive method of the research can be

implemented in this type of research. This research studies different factors which affects the

profile of the customer and them confirms the final trend in the customer. So i recommend the

deductive method of research in this.

DEDUCTIVE METHOD OF RESEARCH

In this method of research approach the reasoning is moving from more general to the particular

and specific factors. This is the top to down approach in a manner. At first we will gather the

theory about the topic under consideration first and then the formulation of the hypothesis is the

next step. Thus we can narrow down the topic by the testing of the hypothesis weather it is true

or false. By the effective data collection methods we collect data and observations to analyze the

hypothesis. This may lead the researcher o final state in which we can confirm the result with the

original theory. (Lancaster, 2005 ,p.46)

QUANTITATIVE AND QUALITATIVE DATA ANALYSIS

An effective data collection process may deliver both numerical figure and literal information.

For getting the right information required for the research we need to analyze the data with the

right data analysis techniques. Normally the data logic, number and the changing static data can

be considered as the quantitative data. In this more precise convergent reasoning is good rather

the divergent reasoning. But the data deals with the words, emotions, feelings, experience,

colour, interpretations etc and all things which cannot be quantified can be considered as the

qualitative data. (Hague ,2009, p.59)


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Some of the traditional quantitative data collection methods are survey, questionnaire etc

through which the behaviour of a whole population can be derived from a smaller group. The

process is called the sampling, but a sample should be selected in such a way that it should

represent the whole population we want to research on. (Asia market research, 2000) By the

effective utilization of these techniques the market research can be framed out in such a way that

we can understand and measure the complexity of human behaviour (customer). For the data

analysis of the Honda car i am suggesting Triangulation method of data analysis. In

Triangulation method of data analysis uses quantitative and qualitative data, both primary and

secondary data to do the comparison to finalize the result. In this case also the customer profile

information from interview (Qualitative) , questionnaires (Quantitative ) and pervious researches

can be analyzed to study the customers and South East Asian market.

PRODUCT DEVELOPMENT: RESOURCES ALLOCATION

In the development of a new project the main goal at the primitive stage will be the effective

resources allocation because this is an important factor determines the profit of the new project.

For example the most efficient allocation of resources can be defined as the distribution of

available resources in such a way that all resources are fully utilized and there are increasing

return to the scale . For this the formulation of a Resource management category is important in

an organisation. Since in the current business environment the resource is limited even thoughthe human needs are unlimited, the effective utilization is good for the organization and the man

kind as well.

Well the main four factors in the production are the labour, land, capital and entrepreneur the

resource required can also be classified into three they are,

Human resources

Land resources

Investment resources

The most important factor in allocating this resource is that how resource management strategy

is employed? the combination of the resource also shows the effectives of the resource

allocation strategy of the company. Through this the organisation can get the maximum output

and profit. The marginal productivity of the recourses should be keep in mind in order to get the


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maximum profit margin. For example if the marginal productivity of all the resources are

effectively set and same then the output from the production will be high. The decision making

regarding the resource allocation is the next critical factor should be under consideration. If the

manager assigned to the task should carefully observe all the process and take decisions if the

cost can be saved without losing the quality of the products. Thus the process can be making

more productive to the availability of the resources. The time management of the professionals

also plays a vital role in the effective resource allocation to the project. (Latest business updates,

n.d.). For the new Honda car needed the following main recourses

Technology: The main technology which is planning to implement in this New car is the

Fuel cell. This is actually an alternative fuel vehicle which uses hydrogen for deliver

power. The technology is that the chemical energy of hydrogen is converted into

mechanical energy which is greener to the environment, economic to the user etc. The

development of this advanced technology to an economic car needs a good R & D

department. Other already existing technologies like wi fi, power driving system etc are

also incorporated in most economic way. So technological resources are extremely

important to this project.

Financial resources: The initial cost regarding this project for the R & D department,

studying the possibility challenges etc will cost the company. Since the idea need a

technical as well as market research the company have to spend some money in business

as well as technical side research. The technology is totally new to the customer new to

the customers so some should also spend on the promotion and advertisement of the New

Honda car.

Human recourses: This is the main resources the company should have, because for any

success the involvement of dedicated employees and their hard work is critical. The

success of the project starts from there. The new project requires technically talented

professionals to develop the ideas into a real car. Business professionals are required to

analyse the market and place the product perfectly in the market.

BCG MATRIX FOR HONDA


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Since each stage in the life cycle of the product represent different risk levels and return the

organisation should maintain a balanced performance to coordinate all the operational activities.

Especially in the case of new product introduction it takes some resources and effort to market it

and create efficient distribution channels. For this entire purpose BCG matrix can be used as an

effective analyzing tool to understand more about the current status of the company. In the case

of Honda the automotive industry is in the star section. We can also plot other industries of

Honda like jet engines, generator bikes, water pumps etc in BCG matrix. So the investment

opportunity is open so that the new project can be promoting new product in order to main the

growth and market of the company. (Stone, 2001,p.56)

The BCG matrix us created by the Boston Consulting Group in 1970 based on the product life

cycle theory. The two main dimensions represent in the BCG matrix is the market share and

market growth. The basis of the tool is that if market share and the growth of the product is high

then the product will be in the star position of the graph.(decide guide, n.d.)

Cash Cow:This indicates the high market share and the low market growth section of the BCG

matrix. In this stage the investment should be low in order to increase the profit of the business.

Since the company need not invest more in the product and can reduce the investment in the

product promotion and development. For Honda the generators and bikes comes under the cash

cow.


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Dogs:This the end stage of a product by which both the market growth and the market share are

minimum. We can liquidate the business if the product could not develop. For Honda the

business of water pump is already in liquidate stage.

Stars:the most optimum position in the BCG matrix in which the market share and the market

growth is high. The investment will be high in this case because the organisation may be the

market leader. Since the product in its high growth rate the organization should main the market

share and generate the cash from the market as well. Honda automobiles are in the star division

so that they can develop new products to sustain the growth rate. The new Honda car can be

implemented to maintain growth in the South East Asian countries.

Question Mark:This part is a high growth section but the market share of the product or the

organization is low. So in effect the cash flow will be less but the demand of the product will be

increasing. By the help of the effective management strategies we can turn thus stage into the

star section of the BCG matrix. It shows the future business opportunity of Honda. Jet engines

come under this question mark.

ANSOFF MATRIX STRATEGIC PLANNING

In 1957 the Harvard Business Review published the Ansoff matrix for the first time. Through the

Ansoff matrix the organization can select their strategy and understand the requirement to launchtheir products in the simplest form. According to Macmillan the starategic choice of a company

denotes the choice to the implementation. So the strategy formulation can be the core to the

success and failure of product. (Macmillan, 2000). The Ansoff matrix helps the organisation in

setting the strategy for developing the product in current and future business environment.

(Bennett, 1994). This includes the four main strategies they are, market development, market

penetration, product development and diversification.


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PRODUCT DEVELOPMENT

This is the right strategy to implement when the company is introducing a new product to the

market. This helps to keep the brand name of the company as a product innovator. Strategy an be

effective to utilize the capacity of the product. The company should focous on the factors like.

For Honda car the new strategy should be developed by concentrating on the following features

Evaluate the customer feedback of the previous products and decide the selling price according to

the competition and feedback. This information can take from the current customer feedbacksystem of Honda in south East Asian countries. The demand of economic and fuel efficient car

can be primarily analysed from this feed backs.

Proper and accurate forecasting of the market and sales volume of the product. Company should

make use of advanced forecasting software to predict the future sales volume profitability ,

payback period etc. So that the factors like advertisement, production rate, pricing etc can be

determined according to the forecasted values.

Evaluate the breakeven point of the new car project and also the profitability. These are the

investment apprise techniques which should be effectively calculated and analysed before makingan investment.

Marketing strategy

When developing a new product the company have to choose an effective marketing strategy to market

the product in the market. Marketing strategy of each company will be different even though the goal of

every business is same. The marketing strategy has a critical role in achieving the goal of the


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organization. Honda is using different marketing strategy for their new products. This is purely based on

the range of the product in the market, price of the product and quality of the product. Company market

value is also important for framing out the marketing strategy.

For the new car the i suggest a short term marketing strategy, because the product technology is new and

customers have to accept it first. If the product is successful in market the marketing strategy can be

continued and enhance the product. If the entry is not so good company have to change the strategy so

that the product can be marketed well by adding more quality. The main reason of implementing short

term marketing strategy is that the product is new and long term marketing strategy will not help the

company to perfectly position the car in the market. So first implement a short term plan, analyse the

response of customers and then reframe the plan.

Promotion of new product

Promotion of a new product includes the plan or procedure that the product is introduce to the market.

The distribution of the products through the channels should be in the professional way because the brand

name of Honda itself is the first advertisement of the car. Company have to choose a best advertisement

method so that everybody attracts to the products. Now a days Honda is implementing a lot of marketing

strategy for example Last Chance for 2010 latest among them. Likewise Honda should use its usual

channels of advertisement to create a good picture about this car , its benefits , technology. In addition to

this company should also make use of the social networks like Face book, orkut, twitter etc to get more

response from the youngsters.

management skill honda car.docx

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