PT. Astra Honda Motor Strategy English
PT. Astra Honda Motor Strategy English
PT. Astra Honda Motor Strategy English
Question 1
State in your own words, main steps in carrying out the following :
A. Strategy Formulation
Company’s Vision and Mission
To develop strategies that are suitable for the company or business, we need to know our business and
targets to go. We are familiar with the company's vision and mission. By creates vision and mission
clearly, it will help companies develop strategies to achieve corporate goals.
Vision :
AHM wants to be the leader of the motorcycle market in Indonesia and become the world class
player, by realizing consumer dreams, creating excitement for consumers and contributing to the
Indonesian people.
Mission :
Creating mobility solutions for society with the best products and services.
AHM made a vision to be the leader of the motorcycle market in Indonesia. This state made
AHM focus on the motorcycle market with specific locations in Indonesia. The location is on Indonesia,
persuaded AHM to able to find out the needs of Indonesian consumers and design motorcycle products
to supports the activities of Indonesia's people (vision: contributing to the Indonesian people). The
vision of "creating excitement for consumers" was supported by made BEAT products which use ONE
HEART slogans with JKT48 to be the brand ambassador.
The mission is the action that companies must take to achieve their vision. AHM made a real
action by creating a motorbike as a mobility solution for the society with the best service.
SWOT Analysis
Furthermore, companies need to define SWOT analysis for companies or selling products. External
analysis of the company is important to observe the opportunities and threats from the side of
competitors, suppliers, customers, government, society, economic conditions, etc. So, the opportunities
and threats would be compared with internal analysis. The internal analysis includes the strengths and
weaknesses of the company such as labour, experience, products, brand, location, etc.
From the example, the rival of AHM is Yamaha Motor. AHM needs to find out the competitors do,
the product's launch and promotions made. Furthermore, compared with the strengths and weaknesses,
AHM can compete with competitors. For example for an automatic motorbike, Yamaha first introduced
Mio and booming. But AHM can compete with BEAT now.
Long Term Strategy
Companies must make long-term goals in addition to short-term goals. Long-term goals
prepared because each product will enter a decline phase. In order not to miss, AHM must form new
products with technology in the period.
Alternative Strategy
The alternative strategy can be formulated from SWOT namely SO (view strengths and
opportunities), or WO (view weaknesses and opportunities), or ST (view strengths and threats) or WT
(view weaknesses and threats). Of the various alternative strategies, which one is most likely to be done
in terms of costs, resources, and potential success.
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B. Strategy Implementation
The second phase is an implement of strategy that has been chosen by the company. The
company should support the implementation of strategy by creating a working atmosphere, for
example in AHM, the value of "ONE HEART" was encouraged. Every communication with employees
and customers will begin with "Salam Satu Hati".
The next is to prepare the require of the budget to implement the strategy. The budget can
include the socialization budget, the procurement of materials and materials budget, technology
budget, the labour budget and so on.
Today, the role of technology is getting bigger in all areas. Companies should attend
technological developments to not far behind competitors. Example: when consumers want to see a
motorbike, they must go to the showroom. But with technology and information systems, general
information is available on the website and social media.
C. Strategy Evaluation
After a strategy carried out, an evaluation is needed. It will clarify that the strategy need to
improve or not. Evaluation is supposed that the company always implement the right strategy because
the situation can change quickly. Measuring strategies performance can be done by comparing the
number of sales or by measuring customer satisfaction before and after the executing strategy.
Finally, the company should decide to change the strategy that has been running or not. For
example, there is a government policy regarding turns on motorcycle lights during the day. AHM
helped to change the new product which automatically turns on the headlights.
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Question 2
Vision :
AHM wants to be the leader of the motorcycle market in Indonesia and become the world
class player, by realizing consumer dreams, creating excitement for consumers and contributing to
the Indonesian people.
AHM has underscored that they have focused on the market of motorcycles, the location is in
Indonesia, and want to give something to the society and excitement for consumers. Imagine if that
vision just only "AHM wants to be the leader of the market in Indonesia..", that's not the vision
because it is too general and make the company even confused the focus to what field, a leader in
the market, so the strategy made even will not be effective. Therefore the formulation of the vision is
really important in the company because it is the way of all the actions that carried out the company.
Mission :
Creating mobility solutions for society with the best products and services.
When the mission of the AHM instilled by the employee and provide the best service,
consumers will be satisfied and make repurchases so that the loyal consumer will increase. For
example, every showroom Honda motor has the standard of the same service that is the best
service. Consumers get good service anywhere, so they not to be confused. It supported corporate
to achieve the vision, that becomes the market leader on a motorcycle in Indonesia.
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Question 3
A. How do you find Strengths and Weaknesses in Marketing
Business Function of a company?
With identifying every resource of the company, such as:
Physical resources
Include how the mapping of the location of the company, the equipment, machinery and
materials used
Human resources
Include how the behavior, experiences, skills, and knowledge of the employees
Organizational resources
Include the company's organizational structure, the IT infrastructure, system
That matrix show that strengt of AHM give more points than weakness. Overall, internal
factors give strong power with 3,40 points. It means that the strenghts on good point because it
above three points. So, The company has been able to maintain its strengths, but it does have
some weakness that has not been resolved yet.
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C. After you’ve collected company’s SWOT, explain briefly how do
you use them to formulate strategies.
With collecting stregths and weakness factors to be IFE matrix, opportunities and threats
factors to be EFE matrix. Analyzing IFE and EFE matrix to making SO, WO, ST and WT
strategy. Where :
SO Strategy
It is the strategy of using strengths to take advantage of opportunities
WO Strategy
It is the strategy of minimize weakness to take advantage of opportunities
ST Strategy
It is the strategy of using strengths to resolve threats
WT Strategy
It is the strategy of minimize weakness to avoid threats
Strength Weakness
High product quality The design is not fashionable
High production capability Expensive spare parts
Service and sales outlets are Lacks precision body
easy to find Body material is not good
Innovative product development Less attractive promotions
Opportuinities SO STRATEGY WO STRATEGY
1. Increasing exports to another
Total population
countries.
Community trends 1. Develop high-tech, efficient and
2. Increase the trust of Honda Japan
Export expansion fast motorcycle products.
Corp. for the supply of raw
Community 2. Large quantities production.
materials
demand 3. Establish the highest retail price
Threats ST STRATEGY WT STRATEGY
Intense industrial
competition 1. Creating new innovation
Rupiah exchange (differentiation). 1. Developing product design, to
rate reduce the impression of being
2. Extends the warranty period.
Public purchasing less fashionable.
power 3. Establish prices that are cheaper 2. Do more attractive promotions.
Global crisis than competitors. (cost 3. Producing machine in domestic.
Natural disasters leadership)
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Question 4
From the elements, it described the goal and desire what the organization be and who
will be served. The missions would be a living document. This mission must be carried out as
an integral part of the corporate culture in order to gain huge benefits in the future. It is
important to both as the scope of the organization and as decision-making.