Obstacles Faced by Honda

Obstacles Faced By Honda:
Honda faces the following obstacles or problems.
1. Energy Crises:
Honda motor is one of the leading automobiles industries and in couple of years they
have been facing problems as the industry was weakened by the rapid increase in the
fuel prices as well as to energy crises of 2003-2008 due to which people buy less of
automobiles with low fuel economy. In the year, 2008 there were some models released
by Honda with fuel-efficient models to offer to the costumer.
2. Political Factors:
Political factors axes such as tax policy, labor law, advertising law, environmental law,
trade restrictions, traffics and political stability. Government plays an important role in
the economy as well as in taxes to be charged to the company. The company cannot
make specific prices, as they have to follow the competition regulations.
3. Economic Factors:
Economic factor have “economic growth, interest rate, exchange rates and the inflation
rate”. They have major impact on how business works and decision making e.g. interest
rate effects a firm cost of capital and therefore it effects the business and how to grow
and expand. Exchange rate effects the cost of exporting goods and the supply and price
of imported goods that is also an obstade to face by the company.
4. Social Factors:
Social factors affect the needs and wants if customers and the way they buy a product
as the demand may decline with new product. Company have to change various
management strategies to adopt to these social trends.
5. Changing Customers Wants:

The industry have to really work hard to meet the demands are the new wants as what
type of cars they went in automobile industry. Specialization (Honda) sector is
increasing becoming segment specific as each of these countries is finding its niche.
6. Customers Attitudes:
Customer attitude and behavior are confined to social systems with given norms, values,
roles, culture and ethics. That is also a challenge for the company. Honda understands
all these behavior and attitude to develop a better strategy in future.
7. Credit Risk:
Credit risk will determine the growth and profitability of a company. During economic
crisis Honda have taken some critical decisions to maintain competitive among the
companies. Some of the companies will shutting down their product such as Honda.
Honda are facing to shut down its business in Sweden for four months in 2009, which is
caused by the decline of sales.
8. Operational Risk:
Operational risk is a risk of cost from insufficient and unsuccessful management. Honda
have faced this problem where the performance of production and management
department are declining. Honda unable to export its products in order to serve foreign
markets where as it has expended the foreign companies’ production.
9. Employees Demand Increase Salary:

In case of Honda, motors in China the issue and problem were rise by the employees
because they wanted to increase their salaries. It has been observed that the china is
not the destination of cheap labor so the company decided to shut down the production
of five units to tackle the situation. When Honda was facing this issue, it was the chance
for the compotators to enjoy the monopoly.
CHAPTER NO: 02:
APPLYING DEMINGS PHILOSOPHY ON HONDA:
1. Drive Out Fear, Create Trust And Create A Climate For Innovation:
Honda is a company founded on aspect for one another. We know people have their
own ideas, so we encourage our associate to act on them as well take responsibility for
them without the fear of failure. Our culture of mutual trust helps us rely on one
another and share knowledge among our self’s for innovations of product.
2. Create And Publish The Aims Of Organization:

Honda have well defined vision and mission statements that is communicated to their
employs and other organizations all over the world. Honda has clearly defined its goal
and purpose of stance, roles and responsibilities between global and regional functions
in such areas as designed /development, manufacturing, sales/service and quality to
enhance and improve quality.
3. Improve Constantly And Forever The System:

Honda has created the Honda quality cycle that continuously enhances quality at every
stage, in compassing design, development, and production. Sales and after-sales service
in order to realize product offering a new level of out-standing quality.
4. Understand The Purpose Of Inspection:

Honda operates a TQM system its philosophy is to push quality back to the supplier,
expecting the products to arrive defect free to Honda’s defined level but this won’t stop
the company from inspection.
With the tolerance and complexity of some of the components, we have found that
some suppliers are not always able to guaranty meeting or specifications so we rely
heavily on inspection.
5. Learn New Philosophy:

Honda believes in the power of dreams but believing is not enough. As soichiro Honda
said, “Action without philosophy is a lethal weapon; philosophy without action is
worthless”. Honda TQM is on integrative philosophy of management for continuously
improving the quality of product and processed.
6. Optimize The Efforts Of Terms, Groups And Staff Arears:

Honda Company supports the creation of a high performing work environmental by
ensuring a balance between personal and professional lives of its employees. The
company believes in a culture of inclusion and well- being that inspires employee
engagement for better productivity. The quality of a product and processes is the
responsibility of everyone who is involved with a creation or consumption of the
products or services offered by the company.
7. Encourage Education And Self Improvement Of Everyone:

Honda offers a training curriculum divided into 4 courses according to in house
qualifications and the extant of individual workers quality control responsibilities in
order to improve associates quality assurance skills. The Honda QC Basic Course (HBC),
which was a 1st, offered 40 years ago provided an example of how Honda is working to
train its personal to be leaders in improving in improving quality.
8. Remove Barriers In Organization Between Workmanship:

Honda vision is more than just words. Our associates know the company trusts them
and encourage them to take on challenges without fear of failure. Everyone is respected
within Honda. Company is committed to ensure the health and safety of employees and
creation of an environment free of discrimination and harassment. Remove
communication barriers between workmanship.
9. Eliminate Management By Objective:

Honda encourage the employees for working and living beyond limits. It drives
competitive spirit, is evidenced of energy, excitement, determination, and drive to
advance the human experience and become the organization that society wants to exist.
10.Treat Challenges As Opportunities:

Whether from the market place the racetrack or the pursuit of a new technology or
business, Honda associates have always viewed challenges as opportunity. We are
energized by the unwavering question for a better way and are consistently inspired to
exceed the limits of imagination.
11.Eliminate Exhortations For Work Force:

In Honda world, we want everyone to enjoy their work, speak openly, proceed with
ambition and value endeavor. We think that helps our associates produce high quality,
good value products. Our goal that is customer satisfaction. Motivation of employees is
one of the main objective of human resource management at Honda.

Obstacles Faced by Honda

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Obstacles Faced By Honda:

Honda faces the following obstacles or problems.

5. Changing Customers Wants:

9. Employees Demand Increase Salary:

2. Create And Publish The Aims Of Organization:

3. Improve Constantly And Forever The System:

4. Understand The Purpose Of Inspection:

5. Learn New Philosophy:

6. Optimize The Efforts Of Terms, Groups And Staff Arears:

7. Encourage Education And Self Improvement Of Everyone:

8. Remove Barriers In Organization Between Workmanship:

9. Eliminate Management By Objective:

10.Treat Challenges As Opportunities:

11.Eliminate Exhortations For Work Force:

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