Honda Motor's Case

Honda Motor's Case

SIM336 (Off Campus)
Strategic Management

Individual Assignment
Case study – Reconciling Managerial Dichotomies @ Honda Motors in De Wit & Meyer (2004:671)

Module Leader : Dr. Augustus Osseo-Assare
Submission Date: Monday 10th January 2011
Word Account: 3,000 words

Executive summary

Honda’s strategic management has been built up based on a special method of thought: reconciling dichotomies, which means that Honda chooses to take advantage of all the contradictions of strategic concepts such as individualism-collectivism, vertical-horizontal structure, vertical integration-market relationship, sequential-simultaneous development, cost-differentiation strategy and load more. Reconciliation refers to an approach in which the two poles are somehow made in harmony with each other.

Honda’s approach to reconciling dichotomies is an exemplary innovation in management. Honda has contributed efficiently in teaching twentieth-century managers the best ways to resolve some of the hardest management dilemmas. It is also a great reference for management students all around the world.

Question 1 :

a) In order for a business to assess the balance of power in different situations, it is actually important for it to rely on two helpful techniques which are Porter’s five forces model and Porter’s value chain.

Porter’s five forces is as simple but powerful tool that helps companies out understanding both actual and future competitive position in terms of strength. It is also relevant at determining whatever new products or services are likely to be successful or not, which actually determines its profitability, and thus its performance.

Porter’s five forces analysis for Honda:

1- The threat of new entrants :

For Honda Motors case, I would say that the automobile industry is a very hard one to enter, since economies of scale and costs of entrance are a high barrier for new manufacturers, and not...

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