Honda Motor Company Analysis

Net Sales – totaled $4,485,000.00 for year 6, and grew +33.3% or $1,495,000.00 between years 6 to 7.

Organizational structure is a system used to define a hierarchy within an organization which improves operational efficiency by providing clarity to employees at all levels of a company. A systematically outlined structure can also provide direction for internal promotions, allowing companies to create employee advancement routes for entry-level workers. In other words, it identifies each job, its function and where it reports to within the organization. Harley-Davidson’s organizational structure, for example, assists centralized control of the business through the company’s arrangement of its components in terms of their interactions and functions. As one of the world’s oldest motorcycle manufacturers in the world, Harley-Davidson Inc. maintains this organizational structure and centers its current focus on a limited number of markets. While the business continues to grow by international expansion, Harley-Davidson’s corporate structure focuses mainly on the fact that most of the company’s revenues are generated in the United States. Thus, Harley-Davidson has a functional organizational structure that is based on the company’s current focus on the motorcycle markets in developed countries, especially the United States, in addition to ensuring centralized control of business activities. The basic characteristics of Harley-Davidson’s organizational structure include Function based groups, Centralization, and Global hierarchy.

Lastly, the matrix structure is a combination of the functional and multidivisional structures (Rothaermel, 2013). It is most appropriate when an organization needs a structure which allows for both centralized and decentralized decision-making, and can be organized by geographic areas and product divisions (Rothaermel, 2013). While a global strategy does not automatically lend to a matrix structure, a transnational strategy which has the requirements above is better served through a matrix structure (Rothaermel, 2013).

People – Culture – Autonomous Business groups: Cushy Armchair’s current organizational structure is decentralized and running by fully autonomous business groups in 17 countries. That means there are 17 managements independently working, or more likely 17 sub-organizations driving in CA and looks like there are two bosses. This is described in Marth’s book as, Matrix organization, a structure in

Honda has continued to embrace the changes that happen around its operations to ensure sustainability and profitability. The current global motorcycle manufacturing sector is full of competition. It, therefore, becomes crucial for every manufacturer to evaluate their strengths and weaknesses and then identify the opportunities to exploit to gain competitive advantage. Honda is Japanese based automobile company; it has numerous subsidiaries in Asia, Europe, and North America. Due to the advancements in technology, Honda will be required to make use of the latest technological trends to stay competitive. The business level strategy at Honda is in line with its enterprise and corporate strategy. The corporation also conducts Research and

This structure is unlike that of the Philips where locals, within the national organizations, held senior management positions. Basically, the structure gave some leeway to product control but still kept the same global image of Matsushita. As times/cultures changed, the strategy that existed with Matsushita during the early years proved to be the foundation of a successful company.

In order for one to evaluate and identify with the diverse business structures, he/she must be aware of the meaning and standards that makes that structure. Various businesses functions in different ways as the world is full of technology and new structures, company cultures and new ways in which companies are run. In order to fully grasp the concepts of Organizational structure and culture in the movies, I will use the Movie Up in the Air and The Devil Wear Prada movies to analyze a business scenario from them.

Support: As a % of revenue, the SG&A expense has decreased from 21% to 11% from 1996 to 1997, that’s aggressive considering the marketing activities the company carried out. This is associated with the year in which the company introduced a new product. Such years involve large expenses.

We can carry the concept from Ansoff Matrix that, diversification is the one of the best strategy to develop and stay in a competitive market. Honda motor company also follow the same i.e Diversification i.e new product in a new market. As at that time already Honda was a world’s largest motorcycle producer so they tried to capture the new market i.e US market by establishing U.S subsidiary and offering the customer a light weight motorcycle to its customer.

Also, the gross profit had a lower increase(+9.67%), that means the cost of sales increased more than the revenue increase in term of percentage. There was a 13.16% rose in net operating expense as both selling and distribution costs and administrative expenses increased. One of the reasons why net operating expense increased because the firm had a programme of reinvesting for organic growth which supply chain, IT and store portfolio had improved. The rose of the net operating expense lead to a 2.13% drop in the operating

The Harley-Davidson company has sold two-hundred-and-twenty-three-thousand-twenty-three units, and showed a thirty-nine percent pricing growth. In two-thousand-ten it sold two-hundred and twenty-six-thousand units, and the improvement was two to two point five percent, since two-thousand-six to twenty-ten even though sales for the CAGR were falling, in two-thousand-six to two-thousand-ten there was still a growth of sixteen point seven percent, (Forbes, (2014).

An organisation is a defined and stratified entity composed of people, who are united by association (e.g. through employment) toward meeting a specific goal (Business Dictionary, 2017). The foregoing definition lends insight into the existence of diverse roles and responsibilities expected from members of an organisation, which roles interface with supervisory, subservient and inter-personal interactions.

Regardless of their emergence in the market in the year, in 1903, Harley-Davidson together with the motorcycle industry did not have an easy start until the end of the Second World War. Many people used motorcycles during the period the war took place. Harley-Davidson was instrumental in supplying around 90,000 motorcycles to the American military during this period. Many veterans opted to buy motorcycles after returning home. This is because they enjoyed riding the motorcycles during the war and desired to continue riding them after the end of the war. This generation was called the "baby boomers" and became the primary target for Harley-Davidson to market their products.

Since 1986 the MOSS came out, Honda created thousands of job opportunities in US and in turn it gets a lot benefit.

Honda is one of the world’s largest motorcycle manufacturers and of the leaders in the automakers industry. It was founded in 1948 by Soichiro Honda and Takeo Fujisawa. It’s headquarter is in Tokyo, Japan and it serves worldwide. Honda has 492 subsidiaries and affiliates accounted under its equity. The company develops, manufactures, and markets a wide range of products such as: automobiles, motorcycles, scooters, ATV’s, electrical generators, water pumps, lawn and garden equipments, robotics, jets, jet engines, and thin-film solar cells. In 2001, Honda became the second-largest Japanese manufacturer and in 2008, it became the fourth largest automobile manufacturer in the United States. Honda’s major products are