VIJAYANGARA SRI KRISHNADEVARYA UNIVERSITY
PROJECT REPORT
ON
HONDA COMPANY LTD.
“CONSUMER BEHAVIORTOWORDS HONDA COMPANY”
Submitted to
VIJAYANAGARA SRI KRISHNADEVARAYA UNIVERSITY
MASTER OF BUSINESS ADMINISTRATION
DEPTT. OF COMMERCE AND MANAGEMENT STUDIES
Submitted by:
IRFAAN R
(Reg. no. : MB190018
Under the guidance of:
MIS. Dr.NIRMALA madam
IRFAAN R
II Semester, MBA
Reg No: MB190018
VSKUB.UNIVERSITY
DECLARATION
I here by declare that this Project Report entitle “CONSUMER BEHAVIOUR
TOWARDS HONDA COMPANY” is an original work carried out by me during the
academic year 2020 under the guidance of MS. Dr.NIRMALA madam MBA
lecturer Commerce and Management, Vijayangara Sri KRISHNADEVARYA
University, BALLARI, VIJAYANAGARA SRI KRISHNADEVARAYA University.
I also declare that this Project has not been submitted to any other
university or institution for the aware of any degree.
Place:
Date: Signature of the Student
(IRFAAN R)
CONTENTS
Page No.
CHAPTER-1
INTRODUCTION
CHAPTER-2
COMPANY PROFILE
CHAPTER-3
INDUSTRY PROFILE
CHAPTER-4
CONSUMER DATA SURVEY ANALYSIS
CHAPTER-5
SUGGESTIONS AND CONCLUSSIONS
BIBLIOGRAPHY
INTRODUCTION :
Honda Motor Company Limited is perhaps best known as an automaker--it is the third
largest automaker in Japan--but the company has its roots in motorcycles, and is the
world's top motorcycle manufacturer. Its best market is in the United States, where the
majority of its sales are generated. Honda's automobile product line accounts for
approximately 90 percent of its sales, and includes well-known U.S. top-sellers such as
the Accord, Legend, Civic, Prelude, and the luxury Acura. The Accord is the second most
purchased car in the United States, although it actually ranks first on the country's list of
most stolen (and thus, "in demand") vehicles. Honda also produces motorcycles such as
the Super Cub, Foresight, and Shadow 750. Furthermore, the company's power products
division makes other items that bolster annual sales, such as agricultural and industrial-
use machinery, portable generators, outboard motors, and all-terrain vehicles.
"Accord"ing to Honda, you might be in your Element if you do you Civic duty and get Fit.
Honda Motor is Japan's #2 automaker (after Toyota) and the world's largest motorcycle
producer. The company's car models include the Accord, CR-V, Civic, Element, and Fit;
gasoline- electric hybrid versions of the Civic and Accord; and seven models of
the luxury Acura line. Honda's line of motorcycles includes everything from scooters to
superbikes. The company also makes a line of ATVs and personal watercraft. Honda's Of
power products division makes commercial and residential machinery (lawn mowers,
VISION
snow blowers, and tillers); portable generators; and outboard motors. Almost 70% of
Honda Motor sales come from outside Japan. &
MISSION
OF
HONDA
SWOT ANALYSIS OF HONDA
Vision
Strengths Market
leader in
the
-Benz and BMW, according to Interbrand.
Motorcycle Diversified product portfolio. Honda unlike many other automotive
companies does not focus only on selling vehicles. It is the largest producer of the
engines and motorcycles as well. Therefore, the company is not as susceptible as its
competitors are to market cycles or technology disruptions.
Huge investments in R&D. Honda’s investments in R&D reach as much as 5%
of revenue. The business relies on these investments to achieve competitive advantage
through various technologies, such as improved vehicle painting process, new hydrogen
and hybrid engines or new welding technologies. In 2012, the company owned 42,000
patents and had pending applications for 29,000 more patents.
Strong brand image. Honda has a reputation for producing the best quality
engines around the world. The company’s brand was the 21st most valuable brand in
the world valued at $17 billion and was only behind Toyota, Mercedesmarket share in
Asia. In 2012, Honda sold 80.5% of its motorcycles in Asia, the market that has
greatest growth potential. Having the largest motorcycle market share, Honda is well
positioned to compete with other companies for the sales and profits.
Weaknesses
Product recalls. Over 2011 and 2012, Honda recalled more than 1,000,000
vehicles to fix various faulty parts and manufacturing defects. Car recalls severely
damages firms brand reputation and future sales.
Weak position in Europe automotive market. Honda holds a very weak
motorcycle industry, emerging as a global competitive centre of production
and exports.
Mission
A dynamic growth oriented company through market leadership, excellence
in quality and service and maximizing export, ensuring attractive returns to
equity holders, rewarding associates according to their ability and
performance, fostering a network of engineers and researchers ensuing
unique contribution to the development of the industry, customer
satisfaction and protection of the environment by producing emission
friendly green products as a good corporate citizen fulfilling its social
responsibilities in all respects.
Quality Policy
Commitment to provide high quality motorcycles & parts
Right work in first attempt and on time
Maintain and continuously improve quality
Training of manpower and acquisition of latest technology
Safe, clean and healthy environment
Market leadership and prosperity for all
PROFILE OF BOARD OF DIRECTORS
Yusuf H. Shirazi
Chairman
Mr. Shirazi is a Law graduate (LLB) with BA (Hons) and JD (Diploma in
Journalism) from Punjab University and AMP Harvard. He served in the
financial services of the Central Superior Services of Pakistan for eight years.
He is the author of five books including “Aid or Trade” adjudged by the
Writers Guild as the best book of the year and continues to be a columnist,
particularly on matters – socio – politico – economic.
Mr. Shirazi is the Chairman of Atlas Group, which, among others, has joint
ventures with Honda, GS Yuasa and MAN. He has been the President of
Karachi Chamber of Commerce and Industry for two terms. He has been the
founder member of Karachi Stock Exchange, Lahore Stock Exchange and
International Chamber of Commerce and Industry. He has been on the
Board of Harvard Business School Alumni Association and is the Founder
President of Harvard Club of Pakistan and Harvard Business School Club of
Pakistan. He has been a visiting faculty member at National Defense
University, Navy War College and National School of Public Policy. He has
been on the Board of Governors of LUMS, GIK and FC College (Chartered
University) and Pakistan Institute of Management. Previously, he also
served, among others, on the Board of Fauji Foundation Institute of
Management and Computer Sciences (FFIMCS) and Institute of Space
Technology – Space & Upper Atmosphere Research Commission (SUPARCO).
Sanaullah Qureshi
Director (Non-Executive)
Mr. Sanaullah Qureshi qualified as a Chartered Accountant from Scotland
and joined ICI Pakistan Limited in 1962. He worked in different capacities as
General Manager and Director in-charge of Finance, Human Resources and
various other businesses of ICI. He retired as the Deputy Chairman of ICI in
1993. Mr. Qureshi joined as CEO of Forbes Forbes Campbell & Co. Limited,
an old established Group dealing in shipping, trading and manufacturing. He
retired from Forbes in 1995 and is now acting in advisory capacity with
Captain-PQ Chemicals Industries Limited. He is the former President of
Management Association of Pakistan. He holds directorship in Linde Pakistan
Limited (formerly known as BOC Pakistan Limited) and MYK Associates
(Private) Limited. He has been on the Board of Atlas Honda Limited since
February 2001.
Jawaid Iqbal Ahmed
Director
Mr. Ahmed is an AMP from Harvard Business School, Boston USA, and IPBM
from IMD Lussanne, Switzerland. He is also MBA from IBA Karachi
University. He has been working in Atlas Group in various capacities. He has
over 48 years of experience in the field of industrial and financial markets of
Pakistan. He spearheaded joint venture partnerships of Atlas Group with
Honda Japan, JSB Japan, Bank of Tokyo, Asian Development Bank and ING.
Abid Naqvi
Director (Non-Executive)
Mr. Abid Naqvi is the CEO of ACL Capital (Pvt.) Limited, a business
development company affiliated with Associated Constructors Ltd. He is also
on the Board of Associated Constructors Limited, Alfalah GHP Investment
Management Limited and Cherat Packaging Ltd. He has worked in the fields
of Commercial and Development Banking and Stock Brokerage for a period
of Twenty Five years. He has also worked as CEO of Taurus Securities
Limited, a renowned name in stock brokerage industry. He is a graduate
from the University College London, UK in the field of Economics and
Finance.
Kazuhisa Hirota
Director (Non-Executive)
Mr. Kazuhisa Hirota is General Manager of Finance Division of Honda Motor
Co. Ltd. Japan. He is also responsible for the region as General Manager of
Regional Operation. He joined Honda in 1987. He has also served at
Business Planning Division. He has also served in China at Honda Automobile
(China) Co. Ltd. and was in-charge of regional operations of Honda Motor
(China) Investment Co. Ltd.
Hiromitsu Takasaki
Director (Executive)
Mr. Hiromitsu Takasaki has served at Planning Division of Honda Motor
Company (HM), Japan before being appointed to Pakistan. Earlier he was
stationed in U.S.A. He has started his career from four wheelers in 1989. He
is member of the Board of Atlas Honda Limited since January 2014.
Kobayashi
Director (Hisao Executive)
Japan before being appointed to Pakistan. He was stationed in U.S.A. for
Motorcycle Production Planning & Logistics, then assigned at Taiwan as
Automobile Marketing and Product Planning Manager. Later on, he was
appointed as the Managing Director of Honda ICVS Singapore. He has
diversified knowledge of Honda Products and has Mr. Hisao Kobayashi was
acting as Head of Automobile Product Planning Office, experience of working
in different cultures and with Honda Partners. He is Vice President –
Technical and a member of the Board of Atlas Honda Limited Board since
June 2010.
Saquib H. Shirazi
Chief Executive Officer
Mr. Saquib H. Shirazi has been the Chief Executive Officer of Atlas Honda
Limited for the last thirteen years. He graduated from the Wharton School of
Finance, before completing his Masters from the Harvard Business School.
He has worked with the Bank of Tokyo – Mitsubishi UFJ Limited in Japan and
is the former CEO of Atlas Investment Bank Limited. At present, he is
serving as a member on the Board of Pakistan Petroleum Limited, Pakistan
Cables Limited and Cherat Cement Limited. Previously, he has been on the
Boards of National Refinery Limited, Sui Southern Gas Company Limited,
PERAC and the Privatization Commission of Pakistan. He has also been on
the Board of Harvard Business School’s Global Alumni and served as
President for the year from 2006 to 2008. He has been on the Board of Atlas
Honda Limited since November 2000.
One vital aspect of Honda's motorcycle safety research has been careful
analysis of the key statistics concerning accidents. Data from Japan, the US
and Europe all indicate that frontal collisions account for over half of all
collisions. It also has been confirmed that many injuries result from the
rider's impact with vehicles or the road surface. In view of these facts,
Honda engineers sought to reduce the incidence and severity of injuries by
absorbing the energy of an impact and reducing the rider's forward velocity.
To achieve this objective, Honda decided to develop a motorcycle airbag. In
the event of a frontal collision, the airbag is designed to inflate and absorb
some of the rider's kinetic energy. As a result, the force of impact between
the rider and the vehicle or the road may be reduced, mitigating injuries.
Ceo Of Honda News
Auto Stock Roundup: Honda Picks New CEO, Tesla Tops Consumer Reports
Survey -…
Zacks via Yahoo! Finance,
2/26/2015
Honda (HMC) will have a new President and CEO from June, while Tesla's
(TSLA) Model S has retained its top position in this year's Consumer Reports'
Top 10 Picks. Read More
Honda to replace its CEO amid air bag crisis, sales drop
WFMJ Youngstown,
2/27/2015
(AP Photo/Shizuo Kambayashi). Honda Motor Co. newly appointed President
Takahiro Hachigo, center right, shakes hands with Takanobu Ito during a
press conference at the automaker's… Read More
Honda to replace its CEO
Coeur d'Alene Press,
TOKYO - Honda Motor Co. - hurt by falling sales and embroiled in a crisis
over defective air bags - is replacing its CEO. Read More
Honda replacing CEO amid sales drop - Tue, 24 Feb 2015 PST
The Spokesman-Review,
TOKYO – Honda Motor Co. – hurt by falling sales and embroiled in a crisis
over defective air bags – is replacing its CEO. The Japanese automaker said
Monday that ... Read More
Product Of Honda News
Herhold: Mike Honda nods off in Congress
The Milpitas Post,
To quote Dave Barry, I am not making this up. By nodding off before the
camera, U.S. Rep. Mike Honda, a solid progressive vote and one of the
nicest men in Congress, might just have handed… Read More
Long-lost Padraig Harrington redeemed in Honda thriller
New York Post,
PALM BEACH GARDENS, Fla. — Padraig Harrington has won three major
championships in his career, but Monday’s survival of a two-hole playoff to
capture the Honda Classic at PGA National... Read More
The Zacks Analyst Blog Highlights: Toyota Motor, Morgan Stanley and Honda
Motor…
Zacks via Yahoo! Finance,
The Zacks Analyst Blog Highlights: Toyota Motor, Morgan Stanley and Honda
Motor Read More
Seven-Year Itched
Rotoworld via Yahoo! Sports,
Padraig Harrington won for the first time in seven years with his playoff
victory at The Honda Classic at PGA National on Monday. Read More
Corporate February 21, 2006
Honda to Strengthen Structure of its R&D Operations
TOKYO, Japan, February 21, 2006 – Honda Motor Co., Ltd. announced
plans, effective April 1, 2006, to launch a new organizational structure
for Honda R&D Co., Ltd., a wholly owned subsidiary of Honda
responsible for research & development activities.
Due to recent technological advancements and continued business
expansion, the variety and complexity of technological components and
the number of vehicles under development at Honda R&D have
increased dramatically. The new structure will be launched both in
response to this situation and to prepare for further expansion of
business in the future. The new structure will enable each associate to
demonstrate a high level of initiative, with more clear definition of roles
and responsibilities and bold delegation of authority. Moreover, the
new structure is designed to achieve smoother communication to help
accelerate decision making within the organization. The key elements
of the new structure are as follows:
Outline of the New Structure:
1 Existing R&D centers including Asaka R&D Center, Wako R&D
. Center, and Tochigi R&D Center, which are currently organized
based on geographical location, will be reorganized into five centers
based on specific functions. The names of the five centers will be
Motorcycle Development Center, Automobile Development Center,
Power Products Development Center, Aero Engine Development
Center, and Basic Technology Research Center.
2 Each center will have separate offices for planning, product
. development, technology development and administration with
clearly defined roles.
3 Primary authority to make operational decisions, currently held by
. the head of each center, will be delegated to the head of each office
within each center to achieve an autonomous operational structure
through which each office can make more decisions.
4 A flat and less-layered organizational structure will be employed to
. ensure smooth and direct communications between the head of the
office and each associate.
5 The product development function of the Automobile Development
. Center will be further separated between the Honda brand and
Acura brand.
This structural change is a part of Honda’s continuous effort to
strengthen the core characteristics that makes Honda unique, and its
purpose is to continue creating advanced and creative technologies and
products that are unique to Honda, which in turn will enable Honda to
continue to be a company that society wants to exist
Organisation Structure
