The Honda Effect

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INTRODUCTION The two reports are based on Honda’s entry onto the US. They are The BCG report, which was commissioned by the British government to investigate the decline of the British motorcycle industry, and the second report was recorded by Richard Pascale, which looked at Honda’s entry into the US Market. Honda is a Japan based company and is the world’s largest manufacturer of motorcycles as well as the world’s manufacturer of internal combustion engines (motor vehicles) producing more than 14 million internal combustion engines each year. Honda’s trademark had been registered in Japan since November 13, 1953 it was not until a decade later that the motorcycle and automobile company filed for trademark registration in the…show more content…
Deliberate strategies can be seen as the ‘intended’ pattern or path, before it is realized, or before the journey takes place and, the Emergent strategies are patterns that are realized despite or in absence of the intended path or pattern. Emergent strategies are rather common in an organization, or more to the point. (www.jstor.org) According to Pascale’s report, Honda had two incidents where emergent strategies had to be implemented; they were first not aware that the motorcycle business in the United States occurs during a seasonable April-August window and their timing coincided with the closing of the 1959 season, therefore they had to come up with an alternative plan and that was to try go to retailers direct. Again in Pascale’s report Honda had another emergent strategy that had to be implement fast. When their larger bikes started breaking and leaking oil causing clutch failure. Honda’s reputation was destroyed before it could be established. It turned out that motorcycles in the United States were driven much farther than in Japan. As they were busy sending their machines back to their factory to be fixed, they were running errands around Los Angeles in Honda 50cc motorcycles, which they had initially decided not push because the market they were hoping to attract was macho, to they surprise, the lightweight motorcycles attracted a lot of attention. So they

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