Strategic Management at Honda Essay -- Business Management Studies

Strategic steering at Honda1. Firstly what is strategic way? It is the process ofspecifying an organizations objectives, developing policies and plansto achieve these objectives, and allocating resources so as toimplement the plans. Strategic management is usually performed by thehighest direct of managers in the company. A companys dodge must berealistic enough for it to achieve it hence it must make sure it hasthe right resources to be able to wield with the strategy. An exampleof an overall headache strategy may be to gift the organization in aposition where it sight carry start its mission. Now to see how thedefinition of strategic management conforms to whats been scriptedabout how Honda grew and developed its markets in the US. Firstly inthe BCG account of how Honda grew into the US markets it credits thesuccess of the Japanese manufactures originated with the growth oftheir domestic help market during the 1950s. To think strategically in that locationargon three big questions that need to be answered that are, where arewe promptly? Where do we lack to go? How will we get there? I believe thefirst question of thinking strategically is now answered, where arewe now Honda must of seen that they have been successful in their possess domestic market and are ready to go into other markets so at thispoint they must have been thinking where do they want to go next hencethe second strategic question. Another quote from the BCG report,.the basic philosophy of the Japanese manufactures is the highvolumes per model provide the potentiality for high productivity as aresult of using crownwork intensive and highly automated techniques. This now I believe has answered the trio question of thinkingstrategically, how will we get there. Honda k refreshing from the successof their own domestic market the key to their success was gainingeconomies of scale as the cost of producing motorbikes declined withthe level of output. So this would be their way of enter ing the USmarkets as they likewise knew their competitors would have a scale economydisadvantage in engineering and manufacturing. If we look at thesecond account of how Honda grew and developed its markets in the USwe can see other ways of how its conforms with strategic management. Pascals version is based on interviews with the Japanese executives. They say they had no ... ...aving aformalised approach to strategy and implementations there are somedisadvantages. Having a formalised strategy can humble a lot of snipand thought need to be put into forming a good strategy which mightmean a huge drawback in cost nest egg whereas this time and thoughtcould be implemented elsewhere in the business. A formalised approachto strategy development can also mean a slow response when there is a switch over in the market. Developing a strategy and implementing as saidbefore takes a long time and a lot of thought which in business meansmoney so when there is a change in the market the stra tegy may not berelevant to the new situation which could consequently mean furthercost occurring such as forming new strategies and responding to thenew market situation. A situation like this can be learnt from Hondawhen they thought their larger bikes would sell as Americans liked big things and also they thought the Buddha like handlebar wouldassist in sales of these larger bikes, but when this was not the caseand they learnt it was the smaller bikes (50cc) the consumers wantedthey had to quickly change their main strategy and follow on with anew one.