HONDA
HONDA
HONDA
MGT 303/2:30-4:00
BLOCK C PROF. DANTE NARCISO
1. Why did Honda build a plant in the United States (what were the objectives)?
How is the plant in the United States affecting the company in Japan? What
problems or advantages might the U.S. operation give Honda in the future?
Japanese automaker Honda was hiring American workers for its first plant
on US soil. Honda was a household name. We recognized it for its quality and
reasonable price that has left the future of Japan's auto industry on American soil
looking uncertain. When Honda arrived in the United States, the "made in Japan"
label was tarnished by bad memories of World War II and associated with poor
quality workmanship due to low levels of economic development in Japan in the
post-war years. As Americans started seeking smaller, more fuel-efficient
vehicles, Japanese car makers had an advantage over gas-guzzling US brands.
That's what sold a lot of the US public to the Japanese brands to this day.
Everyone saw Honda as an advantage, not a threat because they knew that job
creation in a very rural state in Ohio would have an immense impact on the
economy. In the beginning, we talked about the Japanese culture and we also
had an American way of doing things. But what we found is that we created
what we called the 'Honda way’. It became the best of the American and
Japanese ways.
2. Why was Honda able to build economy cars in the United States when American
car manufacturers could not? What advantage does Honda have over American
companies?
3. How much of Honda's success is due to its policies? How much is due to non-
managerial factors?