1.0. 1.0.
EXEC EXECUT UTIIVE SUMM UMMARY ARY:
Our report focuses on giving an insider view of the organization, its systems its strategies for staying market leader, its workings and also of the customers. It also high high light lights s the the diff differe erence nces s and and the the Simi Simila lari riti ties es betwe between en the the real real worl world d and and the the academic world. How How they they make make anal analyze yze thei theirr dynam dynamic ic envi enviro ronm nment ent and and make make strategies appropriate for organization. It also highlights Atlas Atlas Honda Limited leads the the list list of fift fifty y comp compet etit itors ors in moto motorc rcycl ycle e manuf manufact acturi uring ng indus industr try y in Paki Pakist stan an due due to distinctive quality policy. Their corporate vision and values are the driving forces and at present Atlas Group spreads over 11 companies both private and public limited. Atlas Group is a responsible re sponsible entity which is highly committed to comply with corporate, environmental laws and to conduct their business with socially responsible way. AHL has a manufacturing man ufacturing capacity capa city of 910 units per p er shift under strict quality standards and their sale network is well spread to sell all of them. They have a 5s dealer network to satisfy the customer to the optimum level. .
1
Contents 1.0.EXECUTIVE 1.0.EXECUTIVE SUMMARY:............................ SUMMARY:................................................ ........................................ ........................................ .................... 1 Contents......................... Contents............................................. ........................................ ....................................... ............................... .......................... ................... ..... 2 Introduction Introduction about organization organization Business sector (Automobile Industry):..................4 2.0.Overview of the Organization:.................... Organization:........................................ ............................................. .................................... ........... 4 2.1.Company:........................... 2.1.Company:.............................................. ....................................... ............................................ ...................................... .............. 4 2.2.Company location:........................... location:............................................... ........................................ ............................................ ........................ 6 2.4.Vision:....................... 2.4.Vision:.......................................... ....................................... ........................................ ................................................ ............................ 8 2.5.Mission:...................... 2.5.Mission:.......................................... ....................................... ....................................... ........................................ ........................... ....... 8 3.0.Products 3.0.Products and services:.............................. services:.................................................. ....................................... .................................... ................... .. 8 3.1.Products 3.1.Products and services description:.................................... description:.................................................. ............................ ................ ..8 8 3.2.Competitive Comparison:.................. Comparison:..................................... ................................................ ......................................... ............ 10 3.3.Production 3.3.Production and operation staretegy:....................................................... staretegy:............................................................. ...... 11 4.0.Market Analysis:............................. Analysis:................................................. ....................................... ....................................... ............................ ........ 12 4.1.Market Segmentation:............................ Segmentation:................................................ ........................................... ................................... ............ 12 4.2.Customer Type:................................. Type:..................................................... .................................................. ........................................ .......... 12 4.3.The analysis of five forces for motorcycle motorcycle industry of Pakistan.................... Pakistan.............. .......12 .12 5.0.Strategy and Implementation:..................................... Implementation:.......................................................................... ..................................... 17 5.1.COMPETITIVE 5.1.COMPETITIVE ADVANTAGE:....................... ADVANTAGE:........................................... ........................................ .................................17 .............17 5.2.Marketing Strategy:............................... Strategy:................................................... ........................................................ .................................... 18 5.3.Strategic Alliances:....................... Alliances:........................................... ........................................ ...................................... ......................... ....... 18 5.4.MILESTONES..................................................................................................19 6.0.Management:........................ 6.0.Management:.... ....................................... ....................................... ........................................ ..................................... ................. 21 6.1.Organizational 6.1.Organizational Structure:.......................... Structure:.............................................. ........................................ ................................. ............. 21 6.2.Management strategy:..................................................................................22 7.0.Human Resource Resource startegy:...................................... startegy:.................................................................... ......................................... ........... 23 8.0.SWOT Analysis:.......................... Analysis:.............................................. ........................................ ................................................... ............................... 23 Strategy conclusion:.................................. conclusion:...................................................... ..................................................... ......................................... ........ 26 Bibliography:.................... Bibliography:........................................ ........................................ ....................................... ....................................... ............................ ........ 27 2
3
Introduction about organization Business sector (Automobile Industry):
Irrespective of rising prices and flood devastation last year the sale of motorcycles continued to show positive trend on the back of huge demand from the rural areas during the first nine months of this fiscal year. Motorcycle assemblers however said that higher incomes due to good crops of wheat, cotton, rice, etc., had encouraged growers to buy new bikes. Figures of Pakistan Automotive Manufacturers Association showed that Japanese bikes maintained good sales. For example, Honda twowheeler posted a rise of 17 per cent to 407,133 units in July-March 2011-12 as compared to 345,955 units in the same period of last fiscal year. (mr, aamir shafaat, 2012) evidence suggests that rural demand for automobiles was higher than anticipated. This was wa s du due e to co cont ntin inue ued d liliqui quidi dity ty in rur rural al are areas as fo forr re reaso asons ns as me ment ntio ione ned d ab above ove.. However, Howeve r, the relentless cost increas increases es arisi arising ng from higher commodity higher commodity prices, weaker Pak Rupee against other foreign currencies, higher inflationary conditions and frequent interruptions to business caused by power and security concerns, continuously put pressure on the margins and pushed up the manufacturing cost. Considered to be one of the main contributors towards technology development and employment generation, the th e au auto to ind indust ustry ry nec necessi essitat tates es an enc encoura ouragin ging g env enviro ironme nment nt for mai mainta ntaini ining ng the confidence of the investors Changing Changing models, models, improving improving fuel efficiency, efficiency, cutting cutting costs and enhancing user comfort without compromising quality are the most important challenges of the auto industry in a fast globalizing world. Hence there is a need for exploring the industrial complementarities in the region for better quality, favorable costs, fuel efficiency and attractive designs. (Auto Market , 2012)
2.0. 2.0.
Over Overvi view ew of the the Org Organ aniz izat atio ion: n:
2.1.
Company:
4
Atlas Honda Limited (AHL) is a joint venture between the Atlas Group and Honda Motor Co. Ltd., Japan. The company was created by the merger of Panjdarya Limited and Atlas Autos Ltd. in 1988. Both these motorcycle manufacturing concerns were established by the Atlas Group. In addition, a third concern, Atlas Epak Ltd. was taken over over by the the Gove Govern rnme ment nt of Bang Bangla lade desh sh in 1971 1971 afte afterr the the fall fall of Dhak Dhaka. a. AHL AHL manufa manufactu ctures res and markets markets Honda Honda motorcy motorcycle cles s in collab collaborat oration ion with with Honda Honda Motor Motor Company. The Company also manufactures various hi-tech components in-house in collaboration with leading parts manufacturers like Nippon Denso and Toyo Denso. Honda motorcycles are by far the largest selling motorcycles in the country with an unmatc unmatched hed reputat reputation ion for high high qualit quality, y, reliab reliabili ility ty and after-s after-sales ales-se -servi rvice. ce. AHL has undertaken to develop local manufacturing capabilities to the highest, economically feas feasib ible le leve level. l. Whil While e a majo majorr role role in local localiz izat atio ion n has has been been assi assign gned ed to vend vendor or indust industries ries,, Atlas Atlas has the countr country’s y’s largest largest in-hou in-house se manufa manufactu cturin ring g capabi capabilit lity y at its Karachi and Sheikhupura plants. To support the production facilities, the company has established an R&D wing and tool making facilities through CAD/CAM which are growing rapidly in size and function as the company expands. Atlas has managed to execute 12 Joint Venture/Technical Assistance Agreements between local vendors and foreig foreign n manufa manufactu cturers rers for transf transfer er of technol technology. ogy. Besides Besides,, Atlas Atlas has directl directly y executed 9 Joint Venture/Technical Assistance Agreements other than Honda. AHL manage managemen mentt is strivi striving ng to moderni modernize ze company company operat operations ions by adapti adapting ng applic applicabl able e aspects of research and theory and more specifically, Honda’s unique philosophy of hard/soft hard/soft technologies technologies to the realities realities of Pakistani Pakistani conditions. conditions. Company management management structure, systems and processes are changed according to the demands of the customer, growth and new technology. Efforts are being made to develop participation at all levels of personnel in decision-making and a substantial and effective delegation has been established at levels where applicable. Various participation programs such as ‘Ala Mayar’ Quality Circles movement, launched in 1985, are strongly encouraged to allow allow constr construct uctive ive self-ex self-expres pressio sion n and teamwo teamwork. rk. The Company Company traini training ng and development programs encourage all members to develop themselves and contribute to their full potential.. A vast and growing network of over 1600 sales service and spare parts dealers has been established. In order to back up this system. Mobile training 5
facilities take the latest know-how, technology and maintenance of motorcycles to major rural and urban centers around the country.
Annual Production Capacity:
600,000 units
Authorized Capital:
1 Billion (rupees)
1 Billion (rupees) Paid Up Capital: - 625.52 Million
(staff, 2013)
2.2.
Company locat cation:
Karachi Plant:
Company mother plant is based in the city of lights and provincial capital of Sindh, The Karachi city. It is located at F-36, Estate Avenue, S.I.T.E. Karachi. Atlas Group signed technical agreement with Honda in 1963 and plant started commercial production subsequently. Plant spread over an area of 5 acres. In 1964, production began with 7 motorcycles per day. Now plant production has reached to 300 units in a day. Plant manufactures CD 70 only.
(Source: Atlas Honda, Karachi plant)
Sheikhupura Plant:
Another plant is situated in Sheikhupura Sheikhupu ra city, Punjab. It is located at 26-27 KM LahoreSheikhupura Road Sheikhupura. The plant was built in 1981 and spread over an area of 27 acres with the establishment of modern and synchronized 500K plant in 2006. 6
The plant manufactures all four models i.e. CD 70, CD 100, CG 125 and CG 125 Deluxe.
(source: Atlas honda.Sheikhupura plant)
Export: Export:
Bangladesh
Afghanistan
Maldives
2.3.
Regional Offi ffices:
Lahore: 1 Mecloed Road Lahore-54000 [ (042) 111-111-245, 37225015-17,
37233515-17 ]
Rawalpindi: 60-Bank Road, Saddar [ (051) 5120494-6, 5120497 ]
Multan: Azmat Wasti Road Multan-60000 [ (061) 4540054, 4540028, 4571989 ]
Rahim Yar Khan: Atlas Honda Limited, 4-B Zamindara Colony [(068) 5888809 ]
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2.4. 2.4. Vi Visi sion on: :
Market leader in the motorcycle industry, emerging as a globally competitive centre of production and exports.
2.5. 2.5. Miss Missio ion: n:
A dynamic growth oriented company through market leadership, excellence in quality and service service and maximi maximizin zing g export export,, ensuri ensuring ng attract attractive ive return returns s to equity equity holder holders, s, rewarding associates according to their ability and performance, fostering a network of engineers and researchers ensuing unique contribution to the development of the indus industr try, y, cust custom omer er satis satisfa fact ctio ion n and prote protect ctio ion n of the the envi environ ronme ment nt by produ produci cing ng emis emissi sion on frie friendl ndly y green green prod product ucts s as a good good corpor corporat ate e citi citize zen n fulf fulfililliling ng its its socia sociall responsibilities in all respects.
Our slogan:
For Honda to remain Honda, and for everyone to realize their aspirations, we must believe in "The Power of Dreams"
3.0.Products 3.0. Products and services: services: 3.1. 3.1.
Prod Produc ucts ts and and serv servic ices es descr descrip ipti tion on::
Currently we have following products to fulfill the needs of market.
Honda CD 70 8
Honda CD 100
Honda CG 125
Honda CG 125 delux
(source:
www.AtlasHonda.com)
Honda CD 70:
Honda CD 70 is the first choice in motorcycles. motorcycles. The New CD 70 gives a perfect blend blend of Japanese technology along with charismatic design, in addition to its established superiority in terms of durability and fuel economy. Further, 2 years engine warranty not only provides peace of mind to its valuable customers
but
also
the
best
value
for
their
money.
Honda CD 100 (Pridor)
Honda Motorcycles are defined by Quality, Performance, Speed, Economy Petrol and Re-sale Value. All these have managed to successfully bag your trust on the New Honda CD100. It is a stunning result of advanced Japanese technology and right up there as an outstanding performer representing all the qualities that make Honda motorcycles so special.
Honda CD 125:
9
Honda Motorcycles are defined by Quality, Performance, Speed, Economy Petrol and Re-sale Value. All these have managed to successfully bag your trust on the New Honda CG125. It is a stunning result of advanced Japanese technology and right up there as an outstanding performer representing all the qualities that make Honda motorcycles so special. Honda CD 125 delux:
The CG 125 Deluxe is the unique combination of power & style, a new addition in the company as 125 cc. The new power up 4 stroke engine gives same fuel economy as CG
125.
An
ideal
model
for
youth
and
high
income
segment.
product services:
Availability of Spare Parts where they are needed
Providing repairing services throughout the country
To server our first customers (dealers)
Asking the dealer to PDI (Pre Delivery Inspection)
Two free checkups are offered to customers
Dealing with warranty claims
3.2. 3.2.
Comp Compet etiitive tive Co Compar mpariison: son:
Honda Motorcycle’s positioning with respect to its Competitors:
Honda Motorcycle has brand competition with Suzuki and Yamaha and also with Chinese Motorcycles.
Competitors:
Major competitors of the organization: 10
Marke Markett alwa always ys crea create tes s comp compet etit itio ion n beca becaus use e ther there e is no restr restric icti tion on for for any any one, one, everyone try to compete other. AHL competitors are: Dawood Yamaha Motor Company. Sehgal & company. Suzuki Motorcycle. Sohrab Motorcycle. Chinese Brands: Ravi, Sthalco, Super Power, Metro, Super Star, Habib, Pak Hero, Super Asia, New Asia etc.
3.3. 3.3.
Prod Produc ucti tion on and and opera operati tion on stare stareteg tegy: y:
Six key principles of ATLAS HONDA operations Back to basics:
The analysis of customer, competition, company, and cost is put in focus at the start of each endeavor. 3Rs (Respect, Recognition, and Reward):
To b a great company, we need to put respect, recognition, and reward-and in that order-at the core of our management practices. Cash Ca sh is i s king ki ng :
The company is cash rich, we will have the resources to beat the competition. we must re-assess and re-vitalize the focus on generating and preserving cash. Analysis, analysis and analysis:
The decision making procedure be supported by a combination of ”data analysis” backed by ”genba” on the spot analysis. Customer first:
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The endeavor of our company need to be that we understand the company more deeply and create market or financial solutions for him to buy his “dreams product-our product” 650 k is must in 2012:
It is our goal to to sell a minimum of 650k in 2011. For this we must use revolutionary revolutionary path instead of evolutionary in everything we do.
4.0.
Market An Analysis:
4.1. 4.1.
Marke arkett Segme egment ntat atio ion: n:
Middle Middle Class
Middle Lower Class 4.2.
Customer Type:
Buying Situation
Usage Rate
Purchasing Procedure
4.3. 4.3.
First time & Straight Re-buy High Medium On cash/Credit
The analysi analysis s of five five forces forces for motorc motorcycl ycle e indus industry try of of Pakist Pakistan an
Background of industry
12
The motorcycle industry faces the tremendous growth in past year. Pakistan stands at number 7 in top manufacturer manufacturers s of motorcycles motorcycles by producing producing 751,000 units units about 2% of world’s total production. In Pakistan motorcycle assembly started 1964 by Atlas group and Honda motor company. Currently with Honda there are other Japanese brands (Suzuki, Yamaha) as well as Chinese brands (pak hero, ravi, eagle). Chinese brand enter in industry in late 1990 after the tremendous success of 70cc of atlas Honda. PAMA Pakistan automotive manufacture association which includes major’s players of industry atlas Honda, Suzuki, and Yamaha and others. “The “The ent entry of the NonNon-PA PAM MA OEM’ EM’s wit with a com compet petitiv itive e pric price e diff differ eren ence ce of approxim approximate ately ly 25% (Rs.52 (Rs.52,00 ,000 0 Vs. Rs.68, Rs.68,000 000 for the Honda 70CC 70CC in 1999) 1999) and continuous continuous price reductions reductions (2006 price for average average Non-PAMA Non-PAMA OEM 70CC clone is Rs.40,000 Vs. Rs.54,000 for a Honda 70CC). This has seen the total motorcycle market market increas increase e from 120,627 120,627 in 2001 – 02 to 751,667 751,667 in 2005 2005 – 06. (compet (competiti itive ve support fund, 2006) And this goes continue till 2011 with leading leading seller Honda 70cc price 65500. 13
14
Potential of new entrants:
High growth in tough economic conditions in Pakistan encourages the new investors in this industry as well as existing players are investing more for expansion. Significant increase in production volume and transfer or increase in technology remains low. Yamaha to invest $15 million in motorc motorcycle ycle industry. industry. Yamaha Japan has proposed to invest $15 million for the manufacture and sale of motorcycles of advanced functions, high quality and sophisticated designs in the 125cc and 150cc categories in Pakistan. (the dawn newspaper, Saturday, March 27, 2012).
15
This industry is going toward maturity so creating a barrier. So to compete new entrant should have economies of scale and low cost production which is another barrier. The new entrants should be aware of buying power of customers, energy crisis, raw material resources and competition from existing strong players like atlas group. Buying power reduces due to inflation and other reason but demand of motorcycles increases because of high prices of fuels .so people switching from cars to motorbikes.
Suppliers power
Suppliers in this industry posses low power. Large number of suppliers are there for smal smalll numb number er of bike bike manu manufa fact ctur ures es.. many many supp supplilier ers s depe depend nd on a part partic icul ular ar manufacturer for a large part of their revenue like ATLAS Honda develops their own supp supplilier ers s who who are are depe depend nden entt on ATLA ATLAS S Hond Honda a for for thei theirr busi busine ness ss.. thus thus,, the the manufacturers' bargaining power is high and suppliers usually try to accommodate the manufacturer's wishes. Labors their bargaining power varies according to the position they hold within the company assembly line worker vs. high-tech engineer (knowledge and innovativeness key resources)
Threat of Substitutes
Its low in Pakistan. At present, train, planes, public transport, walking, cycling, roller skating, skating, etc. can be considered considered substitutes. substitutes. Willingnes Willingness s to substitute substitute largely depends on two factors: convenience distance (different substitutes substitutes for different distances, e.g. Roller skates vs. Planes). Planes). time other factors: passengers, luggage, cost the higher the cost of buying and also operating (!) an automobile, the higher the likelihood that people will look for substitutes thus, the cost of complementary products, in particular petrol has a considerable influence on people's willingness to substitute.
Intensity of Rivalry among Competitors
16
Ita very high in this industry. Its quite Mature Industry which includes Increasing one's market share only possible by taking taking away someone someone else's. Economic crisis increase the pressure for consolidation of industry. It can be results in decrease in profitability even further consolidation to be expected. Its has competition both on price and nonprice dimensions. So having low costs is not enough by itself and brand image is not enough by itself either to compete successfully. There should be combination of both. So to win over customers, manufacturers started offering value-added services e.g. Easy low-interest finance options, extended warranties etc. but these decreases profit margin margins s furthe furtherr rising rising oil price price effect effect on compet competito itors. rs. Players Players starte started d findin finding g new markets like ATLAS Honda exporting bike to Afghanistan, Bangladesh, and srilanka.
Power of Buyers
Power of buyers is relatively low because of High in numbers. But their collective power is high, therefore big consumer trends e.g desire for more energy efficiency have considerable influence over manufacturers. A special power in this industry in these days is Low switching costs because of entry of Chinese bikes. Buyers of a larger volume can have a considerable influence influence on product development development and design e,g Police, fire brigades, military. (staff, 2012)
5.0. 5.0.
Stra Strate tegy gy and and Imp Imple leme ment ntat atio ion: n:
5.1. 5.1.
COMP COMPET ETIT ITIV IVE E ADVA ADVANT NTAG AGE: E:
Atlas Honda’s in-house technology with collaboration of Honda motor co, Japan, excellent network of vendors, QUALITY, dealership network with 5s facilitation, and cultur culture e are their their compet competiti itive ve edge edge in terms terms of admini administr strati ation, on, operat operation ional, al, human human resource. Marketing perspectives
17
5.2.
Market keting Stra Strate teg gy:
Quality product with resale value
Multiple Segment Strategy
Push strategy (as they force there dealers to keep specific models)
5.3. 5.3.
Strat trateg egic ic Alli Allian ance ces: s:
Engineering development board:
Its facilitates imports and less import duty by fulfilling the SRO (statutory regulatory ordinance.) and took facility of less duty.
PSQCA:
It controls quality. And standardize it. If any product meets its standards it gives a certificate for production. And this certificate is required to be renewing after a specific time period. government affairs affairs PAMA (Pakistan automotive manufacture association): All the government are handled through PAMA. E.g. cost, taxes etc.
Valuation:
Helps to stop misuse of law. E.g. other motor cycle manufacturers manufacturers imports parts from china and say them to paste less price tag and take original price from us to save themselves from taxes. So it was suggested that tax should be on value or import item not on price. Valuation of parts are done and duty will be according to their assigned value.
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5.4.
MILESTONES
2012: launched new CD 100 pridor 2011: manufacturing expansion 2010:
Launched Launched New New Model Model of CG 125 125 Deluxe Deluxe - Euro
II 2010: 2010:
SAFA SAFA Awar Award d for for Best Corpora Corporate te govern governance ance
disclosures in annual report 2008 2010: Best Corporate report award by Joint Committee of ICAP & ICMAP 2009: HRM Excellence Award 2009 2009: National CSR Award 2009 2009: Launched New Model of CD 100 100 - Euro II 2009: ISO 14001-2004 Environment Certificate acquisition 2008: Established DCC (Delivery (Delivery Control Center) at Karachi Plant Plant 2007: Successfully implemented implemented SAP ERP to its business process, all over Pakistan 2006: Top 25 company award by KSE 2006 Established DCC at Sheikhupura Plant 2006: Annual Production reached to 360,000 2004: Top 25 company award by KSE 2003: Best Corporate Report award by joint committee of ICAP & ICMAP 2002: Deletion level level reached to to 87% and 80% for CD70 & CG125 respectively 2002: 2002:
Establ Establish ishmen mentt of Resear Research ch and Devel Developm opment ent Wing Wing 2002 2002 Intro Introduct duction ion of
Gratuity 2002: Best Corporate Report award by joint committee of ICAP & ICMAP 2001 2001::
Conc Concep eptt of 5S dealers dealershi hip p - Sale Sales, s, Servi Service ce,, Spare Spare Parts Parts,, Second Second hand hand
exchange and .
.
Special (Credit) sales
launched 2000: Investment in Crankshaft Project 1999: ISO 9002 certification for both factories 1995: Export Agreement signed with Honda Motor Company Limited Limited Japan 1995: Exports to Bangladesh 1994 Mr. Kawamoto Kawamoto President, Honda Motor Company 19
Limited,
.
visited AHL
1992:
Change of name to Atlas Honda Limited (AHL
1991:
Inauguration of CG125 Engine Project at Sheikhupura Factory
1989:
Export of built up motorcycles to Nepal
1988:
Merger of Panjdarya Limited into Atlas Autos Limited
1988:
Production capacity expansion III
1988:
Joint Venture agreement signed with Honda Motor Company Limited
1987:
Inauguration of CD70 Engine Project at Karachi Factory
1981:
Commercial Production started at Panjdarya Limited
1981:
Production capacity expansion II
1979: 1979:
Incorpo Incorporat ration ion of Panjda Panjdarya rya Limi Limited ted as as Joint Joint Ventu Venture re with with Honda Honda Moto Motor r
Company
.
Limited
1976:
Production capacity expansion I
1965:
Public offering of Shares
1964:
Commercial Production started
1962:
Technical Assistance Agreement signed with Honda Motor Company Limited .
.
Japan
1962:
Incorporation of Atlas Autos Limited
20
6.0.
Management:
C.E.O
6.1. 6.1. Organi Organizat zation ional al Struct Structure ure::
Marketing
I.T
Finance
Sales
Production
Engineering
Logistics
H.R
V. P Human Resources
S. Parts
Services
Local Purchase
Industrial Relation
F. G. D
Paint I. Sales
V. I .P
Frame Assembly DD & CC
Out Source process
21 Welding
No doubt AHL’s organizational structure is working properly; all decisions are made by top managem management ent which which gives gives instru instructi ctions ons to Middle Middle manage manageria riall staff staff,, its middl middle e management responsibility to implements these orders. Company also gets feedback from their employees mean the feedback also transfer from lower to top management. A flat organizational structure exist in Atlas Honda Limited as in contrast to a tall organisation, a flat organisation will have relatively relatively few layers or just 3 to four layers of management. This means that the “Chain of Command” from top to bottom is short and the “span of control is wide”. wide”. Due to the small number number of management layers. layers. It has greater communication between management and workers, with a better team spirit and less bureaucracy and easier decision making, Management Team
6.2. 6.2. Manag Manageme ement nt strateg strategy: y: To dedicate to supplying product of the `highest quality for customer satisfaction. Honda remains its rich culture of customer satisfaction, it being serving nation. For management we have following our management strategy.
Proceed always with ambition and youthfulness.
Respect sound theory, develop fresh ideas, and make the most effective use of time.
Enjoy your work and encourage open communications.
Strive constantly for a harmonious flow of work.
Be ever mindful of the value of research and endeavor.
Respect for all – man has priority over others.
MANGEMENT LIFE CYCLE
PLANNING
CONTROLLING
ORGANIZING 22
LEADING 7.0. 7.0.
Huma Human n Res Reso ourc urce sta start rteg egy: y:
HR Department is the most impartment department in any type of organization. It depi depict cts s the the outer outer look look as well well as inner inner look to the the mark market et about about the compa company ny operations and image. HR Department in Atlas Honda Ltd is increasingly invited to participate in strategic planning and organizational goal setting. It has also becomes involved in personal and career development (to prevent stagnation and to develop talent), in interpersonal rela relati tion ons s (to (to assu assure re team teamwo work rk and and accu accura rate te comm commun unic icat atio ion) n),, in atte attend ndin ing g to associa associates tes’’ needs needs (to demonst demonstrat rate e the organi organizat zation ion’s ’s concern concern for them), them), and in associate participation in work life (to help associates perform at their full capacity).
Objectives:
Meeting Organizational Goals
Developing Future Managers
Major Functions:
Human Resource Planning
Forecasting Human Resource Needs by keeping touch the concerned departments
Competitive Influences
Retaining Employees
Attracting Employees
Labor Relations Influences
8.0.
SWOT Analysis:
8.1.
Strength: 23
Organizational culture.
Good Corporate Image.
Qualified and well trained staff
High Quality Products
Resale value
Motivated, loyal and skilled employees.
Experienced, developed and loyal service dealers network.
8.2.
Weakness:
Lack of excellent marketing.
Electric shortfall
High Price of Products
8.3. 8.3.
Opp Opportu ortuni niti ties es:
Exploration of new markets.eg. srilanka, Africa. and other countries.
Stabilize the improve process of export to Afghanistan, srilanka, and Bangladesh to
capture more market share.
Create loyal customer by various customer oriented activities/ services.
Improvement of relationship with dealers.
Newly developed Areas/Markets (e.g. Gawader)
8.4.
Threats:
Competitors follow up to AHL’s dealers and offering various incentives.
Chinese cheaper products challenges
Strong competition from competitors in near future
24
Instability of Government
Energy crisis
High rate of Taxation
25
Strategy conclusion:
Atlas Honda ltd gains its competitive advantage over time which starts after collaboration with Honda Motor Company Japan. A consistent growth and localization of technology from Japan to Pakistan was a breakthrough for competitive advantage. So technology and quality become immutable competitive advantages. So strategically they are using this advantage in quite a good and responsible way. Beside of technology they start working on local vendors for the supplies which was imported from Japan or other countries. So they start developing their own vendors locally, this strategy worked very well and now majority of things which was priorly imported can get localy and cheaply. Chinese bike assemblers import parts by misusing law as discussed in strategic collaboration. Atlas Honda makes authorities to to put tax and duties right. So to retaliate competitors. Next strategic move was when they saw that Pakistan market is going to saturate and they are market leader they got the maximum market share then they start developing new markets. Started Started exports to afganistan afganistan which have great potential potential if they stabilize stabilize politically politically.. And to other countries like Bangladesh and Maldives. Atlas Honda got an excellent network of dealers to put their products available to every region of Pakistan which is lack by competitors.
26
Bibliography:
Auto Market . (2012). retrieved from automarket. Retrieved from www.automarket.com) competitive support fund. (2006, december 12). policy Analysis on the competitive advantage of motorcycle industry of pakistan;problrm and prospects. mr, aamir shafaat. (2012). market demand of automobiles. the DAWN . staff. (2012, 9). www.paperscamp.cpm. Retrieved from www.paperscamp.cpm. staff, A. H. (2013). www.atlashonda.com. Retrieved from ATLAS HONDA. (Saturday, March 27, 2012). the dawn newspaper.
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