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Honda BCG Record Analysis

Introduction:

Honda proven an American subsidiary in 1959. The strategy of Honda was discussed in an annual record in 1963. The plan of the business was selling, not only for the motorcyclists but rather to everyone. The North american Honda engine company had made a technique to get started on making motorcycles open to the general public. The theory was to first add the smaller lightweight motorcycles to the united states.

By advertising to younger family members, Honda made a style of 'Meet the Nicest People on the Honda', they handles to be successful in setting up a demand for the light-weight motorcycle and they increased the sales from 1960-1965 by $76 500 000. The BCG survey exhibited that success of the Japanese manufacturers started with the growth of their own domestic market segments. The high development for local demand led to Honda experiencing economies of scale as the price of producing motorbikes dropped with the level of productivity. This provided Honda to achieve a highly competitive cost position and it obviously helped them establish their business lead.

Case 1 (b)

In this case study Richard Pascale tends to disagree with the BCG article. He feels that not everything was as clean as the actual BCG report expresses. In the case of Honda they actually came into the market at the incorrect time. Honda also got lack of funding from the ministry of fund.

With case study b) Pascale feels that the first circumstance is not as accurate and shows thta through incidental happenings actually resulted in the success of Honda getting a strong hold of the united states untapped market. When looking at the BCG record it expresses that Honda pressed the compact motorcycles when in reality Pascale argues that's not true. In fact Honda wished to promote the bigger motorcycles but this failed anticipated to mechanical faults which almost demolished the image of Honda.

Compare and distinction these two accounts of Honda's entrance into the US?

Introduction:

Case A is the Boston Consulting Statement that investigates the decrease of the United kingdom motorcycle industry. The BCG survey informs us about the success of the Honda's light motorcycle and the impact so it made in the industry. It says the way the company do well it by doing deliberate strategising as well. IN THE EVENT B an Insider of the Honda team, Richard Pascale, informs us about the actual problems that Honda experienced in the motorcycle industry and states that it wasn't as clean as the BCG helps it be acoustics. Therefore by campaigning the two conditions we will identify the similarities and distinctions.

The key similarities of both accounts:

In case's A and B they both show and interest to the US Market and they both want to attain to make as must sales as they can and to provide the standard members of the public with motorcycles. Case A and B wished to attract the general public and get people who would never consider getting a motorcycle to begin considering. The thought of breaking away from the normal stereotype of bikers was Hondas main concern and to insure this both of the circumstances had the plan for Honda that was: "You meet the nicest people on Honda"

Case A and B both show success results with the smaller motorcycles been offered in the US and the increase demand in Japan. The actual fact that in Case B when they stumble across the fact that they would make better income with small 50cc, after realising that both the cases were away from home when you are in the business lead competitively. Honda got into the US market right by the end of the motorcycle trade season which signifies that both the situations didn't really consider what they could in the end cause, but by taking that risk they found and untapped a market.

In both situations' it shows that Honda was more superior to their opponents by producing more and much better prices. The advantages of the two accounts was the tasks that your founders performed. Pascale's main concern wasn't about profitability or the company and its own products, but instead showing his innovative capability by producing better machines. Fujisawa on the other side was more concerned with the financial portion of the company and exactly how to market the ideas of the motorcycles to the general public. With each of them it was clear that in both conditions they were able to pull resources jointly and function as a team.

Honda Management team also got similar aspects in the way that they performed jointly to ensure that the business succeeds in america, despite the management distinctions as in the event B it clear that the Honda team wished to ensure that the options made for the business would only help them. In Case A the management team guaranteed that the light and portable motorcycle was pressed in the US and they made certain that the image of the business wouldn't normally be from the Bad Youngster image of motorcyclist but rather a family group experience with small version.

The key variations that these two accounts have are the following;

The case's show that in the event A they does environmental analysis and that's the reason they achied the success whereas in the event B it shoes that they didn't do an environmental examination in to the market because if indeed they did they might have uncovered that there wasn't a demand for the bigger motorcycles and in the event B if indeed they experienced done more research they might have prevented the condition of almost damaging the image of the business.

Case A shows that there was an admittance strategy which was to ensure providing and promoting the motorcycles not and then the motorcyclists but to the general public. Whereas in the event B they didn't exactly have strategy planned nonetheless they did have the thought of selling something in the United States which is not actually having a precise technique to have for a company and therefore could have been another reason they didn't do well as easily as they didn't know what they wished to achieve.

In case A it seems as if the Honda company didn't come across any problems and that everything went relating to how they planned. In case B it demonstrates not everything visited as planned and not everything travelled that smoothly. Including the financing was only limited plus they were required to keep some of the amount of money in the inventory. Another example is the fact in the event B they didn't initially prompt small motorcycle and through incidental event they found out the untapped market seeking smaller light in weight motorcycles instead of the originally designed much larger ones.

The Boston Consulting groupings (BCG) report clearly shows a deliberate method of Hondas strategy in penetrating the united states motor cycle market whereas in the case B demonstrates the procedure was more of an emergent procedure. Case A had a Research and Development effort and an insurance plan of developing the united states market region by region. In Case B it doesn't really point out much research and development concepts they had the thought of selling the bigger motorcycles which by the end of the day didn't workout for the coffee lover but if they had done the proper research they may have prevented wasting of your time and initiatives. http://www. oppapers. com/essays/Key-Differences-Between-These-Two-Accounts/185956

To what level was Honda's obvious strategy deliberate and/or emergent?

Introduction:

A deliberate strategy is more of any desired strategy that is intentionally formulated or planned by the professionals. It's from the use of tools, techniques and frameworks for strategic analysis and evaluation. (G. Johnson, K. Scholes, R. Whittington, 8th Model Exploring Corporate Strategy, web page 401) Deliberate strategy involves a 6 step process particularly: 1 Environmental Examination, 2 GOAL SETTING TECHNIQUES, 3 Strategy Formulation, 4 Strategy Execution, 5 Analysis/Control, 6 Reviews.

An Emergent strategy on the other side comes about through everyday exercises, activities and operations in organisations resulting in decisions that turn into a long-term direction of any organisation. (G. Johnson, K. Scholes, R. Whittington, 8th Edition Exploring Corporate Strategy, page 408)

An emergent strategy is a design of action that produces over time in an corporation in the lack of a specific quest and goals, or despite a quest and goals. http://planningskills. com/glossary/154. php

Honda's strategy in Case A came about as been a deliberate Strategy whereas in the event B the strategy looked more emergent.

BCG observed Honda, as a organization, who do deliberate planning by looking at the market and doing an environmental evaluation, setting goals, designed a strategy to cope with the environment and competition pressures from Harley Davison, Triumph etc. and carried out the strategy.

The first strategy-making process is conscious and analytical, relating assessments of market composition, competitive advantages and weaknesses, the type of customer needs, and the individuals of market development. Strategy in this process typically is created in a project with a discrete start and end. Top-tier management consultants often take care of these projects. The result of this process is an designed or deliberate strategy. 1 Planned strategies can be implemented as they are envisioned if three conditions are satisfied.

First, those in the business must understand each important details in management's expected strategy. Second, if the business is to use collective action, the strategy needs to make just as much sense to each of the members in the organization as they view the world using their company own context, as it can to top management. Finally, the collective intentions must be noticed with little unanticipated effect from outside politics, technological or market makes.

Since it is difficult to acquire a situation where all three of the conditions apply, it is rare that an planned strategy can be put in place without significant alteration. 2

The second case is the emergent strategy. Emergent strategy itself suggests learning what works-taking one action at the same time in a search for that viable design or consistency.

With case B this is just what happened; At First they put all their efforts in to the larger motorcycles but when disaster struck with the larger motorbikes leaking petrol and having clutch problems Honda's reputation was almost ruined therefore Honda experienced no choice but to force the 50cc motorcycle and also to their surprise the retailers wanting to sell their bikes were not motorcycle dealers. Therefore making quick decisions from the bad situation they were in show they used an emergent strategy without using proper planning process.

Case A is different relating to Mr Pascale who stated the next "We still hesitated to thrust the 50cc bikes out of dread they might harm our image in a heavily macho market" this implies that Hondas intention had not been to sell small 50cc bikes but instead to go with the rest of the industry by selling the bigger bicycles including the 250cc and 350cc. This again implies that CaseB was more of an emergent strategy.

The report noted by Richard Pascale "an insider's account of Honda's admittance in to the US market" shows a clearly identified emergent strategy

The report identified two main factors that led to the UK street bike industry dissolving in america.

1. Market show loss.

2. Poor Production, technological and syndication techniques.

3. Poor planning and little research

But when looking at the BCG statement it suggests that Hondas success in the US market was because they had deliberate strategy that contains a planning process. First in the BCG report it shows signs or symptoms of environmental research with the competitors such as Harley Davison, BSA, Triumph and Norton.

The idea that they also show they looked into the market. In addition, it shows that Honda had placed goals for the business which was to sell their smaller motorcycles and be productively competitive.

The next step in the process is strategy formulation and Honda developed the idea of creating a good image for their company and to ensure that image pieces them apart from just any motorcyclist.

The next level is strategy implementation and Honda needed the previous idea and started out a plan of "You meet up with the nicest people over a Honda". This would place the image apart from the stereotyped image of a motorcyclist.

The BCG survey also says that Honda joined the united states and determined small bikes as their target market therefore this shows they did do evaluation and control. Honda used up by giving feedback on the marketplace to insure they continued to be competitive.

What key Lessons may be discovered from any contrast of the two quite different accounts of the same strategic decision?

Introduction:

Honda experienced some really challenging happenings that put their procedures on carry at one time, but by learning through their mistakes and taking opportunities when they noticed it they were able to get over some problems and be successful with a product they didn't think would be and considered it high-risk to promote. The 50 cc was a smaller bike and little performed the company know that that street bike is the response to finding an untapped market through having troubles with their larger motorcycles.

In circumstance A it implies that Honda have some tactical planning with cost advantages and easy operations in Japan, this can be seen in the statement describing the competitive positions that Honda had so when they emphasized on the gains been made. By doing the required research and analysing the market segments Honda could be successful and that lesson learned will ensure that they keep up the nice work of research and development to remain competitive.

Apart from Honda's success in Case A due to their environmental research and pre-thinking they might have in fact done a bit more research in to the market that they got into. The fact that they were advised never to enter the US market due to relatively due to small bargaining electric power of the new entrants, and the actual fact that some stores were closed down on weekends was also an indicator of barriers that Honda could face. Another lessons that Honda had to learn was how to break away from the typical biker image. Honda at the end of your day does have a closer look at the competition n circumstance A at that is that they found a untapped market that required smaller motorcycles.

Surprise and Learning exposing oneself to the opportunity of being surprised incremental adaptation and learning, in the case of Richard Pascale he outlined the fact that in the event A not everything was completely true. He states that Honda possessed made miscalculations when it came to which motor bike they would be marketing i. e. they were putting more focus on the larger motorcycles, therefore in Case B no clear tactical planning was executed and they didn't have even a particular strategy. 'In real truth we had no strategy other than the thought of seeing if we're able to sell in america 'http://www. anderson. ucla. edu/faculty/dick. rumelt/Docs/Papers/HONDA. pdf

Pascale sees the 50cc success of Honda as a no other option that needed to be implemented to the problems that had occurred to the bigger motorcycles. The lessons learned here was that Honda finance out that the bigger motorbike demand was unsatisfactory. But with the help of the campaign of the marketing campaign "You meet up with the nicest people on the Honda" this contributed to them to truly have a sense of path on how they wanted to be identified, which managed to get a successful report. By being smart in detecting the untapped market and responding fast to it also helped Honda to ensure success. If Honda was not aware of the actual fact that the larger motorcycles were not doing so great who has learned where they would be now.

Conclusion:

In conclusion case A looked like more organised and felt more in charge of their marketing activities and reaching out to their market. It obviously showed that there was Research and development done in order to be competitively strong. Operations in the event A felt more soft than in the event B that possessed many problems to encounter.

Case B in truth at the end highlights a key point which is learning and taking opportunities from hazards. Pascales disagreement to the BCG was that the BCG statement made it seem that Honda's experience was simple. If Honda possessed done proper planning and research and used the chance on the 50cc they would have had a smoother experience.

Harvard Referencing:

(G. Johnson, K. Scholes, R. Whittington, 8th Model Exploring Corporate Strategy, site 401)

(G. Johnson, K. Scholes, R. Whittington, 8th Edition Exploring Corporate Strategy, web page 408)

(Paul Lester, The Entrepreneurial Process, retrieved 27th February 2010) http://www. anderson. ucla. edu/faculty/dick. rumelt/Docs/Papers/HONDA. pdf

(Minzburg, H. & Quinn, J. B. ( 1991), The strategy Process. Prentice hall. ) http://www. studyworld. com/newsite/ReportEssay/science/Social\Honda_Marketing_Strategy. htm

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