Contemporary Management Issues: Case Study of Honda and Changing Drivers

This article discusses contemporary management issues in the context of a case study of Honda. It explores the two major changing drivers - technology and climate protection - and how Honda responded to these drivers. The article also provides recommendations for the future.

Contemporary
management issues

Table of Contents
INTRODUCTION ..........................................................................................................................3
Case study of Honda and two major changing drivers. ............................................................3
key dynamic forces impacting on business and society. ............................................................4
Porter's five force model:............................................................................................................7
The organisation responded to these changing drivers...............................................................8
Recommendations.....................................................................................................................13
CONCLUSION..............................................................................................................................14
REFRENCES.................................................................................................................................15
Books and Journal.....................................................................................................................15

INTRODUCTION
Management of business is connected with each organisation function that a company
perform to determine its plan of actions and decision making. Business company going through
with so many issues regarding the problems of management because of several power and
employees that create impacts on its performance (Alvesson and Gabriel, 2016). These kinds of
forces can be both external as well as internal that create impacts on sustainability and decision
making of business. Honda company is founded in 1959, and it is a Japanese organisation.
Honda organisation is a trader and manufacturer of cars, auto mobiles and so on. This
organisation is a very famous and broad range into the globe that constitutional raise the
challenges and competition level. In past few period, the organisation Honda had undergone
several challenges regarding external issues and it create impacts on policies and on government
as well. This context is also determining and analysis about the problems of business strategical
in this dynamic nature. To grow effectively it is become important to acquire important theories
and factors to react with strategic preparation. This context is going to identify about the
requirements of the organisation to develop its productivity and approach alteration into the
society.
For this case, there is analysis of dynamic changes in factors and their effects on their
organisation. Moreover, this context is also going to concentrate on requirements of modification
and how it can acquire by the company.
Case study of Honda and two major changing drivers.
Honda company is amended organisation. Honda has their headquarters in Tokyo, Japan.
The company is very famous and has their broad range globally to set their organisation and
make their products so popular so that they can become more popular, and because of this its
help the company to makes it popular and largest manufacturer of cars and auto mobile. The
Honda required to check the requirements of the surroundings and society, that has not
completed in the existing period that create impacts on greenhouse gases. The target of the
company to minimise these affects and start summing of vehicles of electric so that no sources of
energy would get endure (Bhattacharjee, McKenna and Ray, 2016). This case study presents the
requirements to evaluate the external factors of the Honda company with the assistance of
PESTLE and porter’s analysis. The organisation has acquired two main function and that is

climate protection, and technological change. These function are very important and required
that an organisation has undertaken to boost and upgrade modification in the company.
Therefore, there is a requirement to analysis and determine the strength and weaknesses of the
organisation by that they can simply analyse the domain that where is modification is needful
and that could be evaluate by SWOT analysis.
key dynamic forces impacting on business and society.
SWOT Analysis
This is the very effective concept and structure that help the company to identify and
analysis the internal factors of the company by presenting their weaknesses and strength that is
required to access threats and opportunities in the effective way (Griesshammer, Sadjadian and
Wille, 2018).
Strength: This is the very effective and affirmative feature of the company because
strength present that how a company has elaborate in their goods and services. The company
Honda has their several powerful features in the industry because as they are most leading and
reputed industry of engines. They has engines that has advanced lasting features, affluence in
beginning and fewer fuel ingestion. It cater advance competency and ability service and
availability. Further strength of Honda is powerful brand image of their company in the globe
because they have varied huge goods scope and powerful brand case. The organisation is the
sizeable manufactures of motorcycles and cars into the market of Asia by which they exploit
several industry and its business due to their advanced quality and engine mechanism.
Weakness: The company weaknesses are key ground behind its property and losses at
upcoming manufacture. The term weaknesses get down the organisation strength and become the
barrier among their success and growth. The company Honda has little concentrate on
investigation and development and they do not have any investment for fresh invention or
alteration that is very key and chief weakness of the organisation.
Honda is lies in North American department that has revived its gross sales into few
periods by that different franchise endure its ratio and efficiency due to little attention and
concentration.
Opportunities: Opportunities indicate the modes by that a company acquired and adopt
to become more innovative, creative, impressive and continual into the industry (Lis and
Tomanek 2017). The company Honda has more amended and finer possibility or opportunities to

cut down its outgo and activity on techniques of less fuel because as authorities and government
has going through with emanation of gases of greenhouse. By acquiring and accepting invention,
creativity and development of society, the company Honda give their time in improving
economy of United States and to handle and manage the cash flow, high exposure of sales and
low rates of interest.
Threats: Threats term meaning is problems and barriers that is faced by the company because of
challenges and more competition, their weaknesses in the market. The company Honda has their
largest threats of raising market rivals and natural disaster that create impacts on their employee
turnover and on their earning as well. Nations like China, Japan are rapidly determined by earthy
disaster that endure in manufacture and trading or merchandising. These factors are enter with
several modes and required components that the company Honda required to look forwards for
their success and maturation (Nuhu, Baird and Appuhamilage, 2017). Threats and weaknesses
are removed and could minimised by acquiring dependable alteration and gain the more
opportunities by Honda.
External forces:
Pestle analysis:
PESTLE analysis is a very effective and very required as well as important to analysis
the external factors of the company. This factors assist the company in creating management
strategies by analysing and identifying external factors that has amended determination on
organisation profitability and performance. This area or domain covert the domain of outsider
factors that explained the requirements of the company, what organisation has been required to
perform and what are the manner and way that would be advantageous for them. In Honda
instance, the impacts of external factors on the company are explained below:
Political: political factors are those that determine by the policies and norms of
government. The political force and parties create impacts on company performance by the few
impacts and that is modification in policies, financial policies, tariff policies. The company are
required to follow these norms and influence the individuals and authorities with more
affirmative feature. Honda is going through with several development aspects and limitation as
well in context of political intervention. As the political authorities has minimised their policy
and norms of taxation that create positive impacts on their manufacture rates and because of
modification on the different nation duty it creates negative effects on the organisation in context

of profit and earnings (Pedersen and Thibault, 2018). To acquire and gain benefits of norms and
regulation of government, the company Honda are much required to spend in investigation and
development by taking initiates.
Economical: The stability of economy is much required to flow better in the industry
This factor involve demand and supply of the nation that are much required to be hold up and
manage by organizational share. These kinds of component are mandate to hold up direction of
rates of economy into domestic and into the global market. This is also indicating the
modification in abroad currency by which no international investing will get endure. The
organisation Honda is going through with bad effects on their gross sales because of variation in
few policies like pricing, the inflation rates that cut down the cost of their gross sales because it
lowers the buying power of the individual. They can determine their positive aspects through
sharing into fuel free conveyance and to become eco-friendlier in presentation.
Social: The social factors are chiefly concentrate on society that a company direct for the
factors and components of social that involve consumer’s desires and requirements according to
their reactions and interest of buying the products, beliefs, cultures, and health concerns The
company have too much effective in completing the requirements of the customer to assure the
m that its very safe to drive and ride (Phillips and Moutinho, 2018). The company Honda has
amended power due to broad range of their goods that is much enough to fulfil the requirements
of the consumers. The organisation can easily persuade their consumers simply to assist their
fresh schemes and enlargement for the goodness of the community.
Technological: Technological boost up and advancement are the much important for the
company to acquired normal and regular modification into the community. A company should
have profound cognition about the future technologies and to develop and manufacture much
innovative goods into the company so that the it will create positive impacts on the country as
well on the economy. The company got several different kind of modification in technologies
like they established GPS that is a very impressive and effective invention into the cars and they
modification in engines and so on. These kind of components present that Honda has much
optimistic effects on technological factors. In upcoming years, Honda takes their judgement to
established electrical transport that will provide the greatest rivalry in the nations like China.
Environmental: The issues of the environmental are much concerned for any company.
Because the surroundings required to be very clean and flourishing so that the environment can

provide better and amended resources. This component give accent on those component that
create effect on their relevancy such as nitrogen buster, pollution, gases and so on (Rocco and
Selinšek, 2020). So for making better and healthy surroundings, Honda company are much
required to proceed appropriate measures and judgements to simply acquire these modifications
for stability of environment.
Legal: These factors straight develop and upgrade a company towards the laws, policies,
and acts that a political authorities pit on them. The company Honda complete each acts and
rights like equality acts employee’s safety and many more. The company Honda has their
optimistic reputation because as it operates below the legal activity.
The analysis of external factors of PESTLE has determine very important and
required factors that the company required to measure at particular period of time. As it requires
to opt agonistic boundary into the industry before further nation took benefits.
Porter's five force model:
This model is a very helpful to identify industry competitor boundary that affect the
company’s competition, and stakeholders. This model acknowledges the powerful perspective of
the organisation. This models are lies on five forces in regards of Honda company.
Bargaining power of suppliers: This present the potential of suppliers to deal into the
industry, they increase their rates with high demands of their product. The bargaining power that
is low shows that the Honda has tremendous amount of provider that indicate powerful relation
with market supplier. As the auto mobile commercial enterprise they have little amount of
provider and advanced rivalry because of these reason the company loose its potentiality to deal.
Bargaining power of buyers: This factor or model present that purchaser ability to deal
for a goods has sameness in goods and rates. The consumers give and pay broad cost for the
similar goods. The industries of auto mobile has extreme rivalry because of this reason the
company are upgrading its goods in that manner in which they can attract and gain huge
customer base.
Threat of substitute products – Substitute products provides wide choices to customers
in order to shift to product which fulfils demands and requirements of them in better way. It
became easy for customers to bargain if substitutes for product are available in the market. In
case of vehicle industry, they have medium level of competition in terms of substitute products
as every brand has their own unique features (Berisha Qehaja and Kutllovci, 2020). It takes large

investment in order to sale these products which ultimately lower the level of competition.
Honda faces medium level of competition because of its close competition. Honda is an large
and reputed organisation and it is difficult for companies to get the trust Honda has of their
customers.
Threat of new Entrance - When a firm enters in industry with similar products create
competition in the market for existing companies in that industry. Due to this existing companies
should emphasis to come up with new strategies in market. In Auto-mobile industry, there is low
threat for new entry in the industry. It involves huge investment in order to compete with a
company like Honda. There are also various barriers in order to take entry in that industry which
reduces threat of new entrant in auto-mobile industry. In spite of that, if a new firm wants to
enter into market then it will take many years to get its market and brand Image. Honda is not
having the threat of new entrant in the market.
Competition Rivalry – Products of similar nature creates high competition in market.
When Honda changes its technology it puts impact on its competitor’s firms. Although Auto-
mobile industry has low competition because of unique features but faces high competition in
well settled brands. Honda faces a huge competition because of its rivals in the market like
Volkswagen, Toyota and many more. In order to earn competitive advantage in the market,
Honda needs to come up with innovative ideas in qualitative manner to fulfil demands of their
customers.
The organisation responded to these changing drivers
Mainly two changing drivers are addressed in the case study which are change in
technology and climate protection (Singh and Kumar, 2020). It can be clearly observed that it is
not easy for Honda to overcome with these changes as they impact on operations and
management of organisation. It became difficult for organisations to cope up with these changes
as they have to transform their petrol auto mobiles into Electric vehicles. It became a huge
challenge for Honda to respond strategically for that changes so that it could not impact on
operations of organisation. Competition force from Europe, UK and China sets hard competitive
goals to make environment clean and they should make it by producing their electric vehicles in
order to beat China in competition. This situation became hard for organisation to manage as
they are surrounded by various forces both internal as well as external in nature and it became

essential for organisations to respond on key factors to achieve their organisational goals and
objectives.
In order to handle these situations organisations needs to evaluate their strengths and
opportunities. They should work towards converting their weaknesses into strengths and threats
into opportunities. It will help the organisation to handle various factors like environmental and
technological factors (Theys and Schultz, 2020). Main drives are climate and technological
changes which impact on changes in whole process of operations in organisation. If organisation
have strong internal environmental or strengths it can cope up with changes and can even bear
complete change in operations if they have strong team. Honda take essential steps in order to be
in a position to handle situations systematically. They adopt systematic and proper strategy to
respond to these changes that are mentioned below:
 Describe changes and integrate with business goals – It is essential for Honda to
clearly describe changes that will come due to transformation of petrol vehicles into
electric vehicles. After describing those changes, they need to find out various
requirements to made those changes like change in operation system. It is essential for
organisation to elaborate the reasons for changes in organisation to their employees so
that they can perform their activity and increase their abilities in accordance to that.
 Determine various impacts of changes – The next step Honda takes is to determine
various impacts of these changes on organisation's management and operations. As all the
changes are to be bear by managers of company so they should analyse its impact on
different departments of these changes. In other words, they should analyse various
effects of changes in technology on different department of organisation.
 Develop strategies for effective communication – After finding and evaluating various
changes it is essential to effectively communicate the same to their employees and other
personnel. Communication strategies should be effective enough so that it can be
understandable to each and every personnel. In this strategy of communication, it is
essential to take feedback in form of reviews and comments from employees of
organisation. It should be addressed in further communication to make it effective.
 Provide Effective training and implement them – In order to make acceptance of
changes to employees it is essential to provide them necessary training. It will help the
employees to understand the value of changes in effective manner and make them

habitual of new norms established in changes (Veneris, Mahajan and Frazier, 2020). It
also helps employees to develop their skills and behaviour to adapt those changes. In case
of Honda they provide lectures to their employees of procedure of techniques to be used.
 Measures the change process – This is not the end of process as after the whole process
it is essential to find and evaluate deviations that occurred when measured actual
performance with expected one. This step is performed to evaluate whole situation and
identify reasons of not achieving the expected results. It provides experience for future
decision making.
It is also essential for organisation to select one effective tool for decision making in
order to address those changing drivers. The effective and important tool which can be used is
Ishikawa Diagram which is also known as cause and effect diagram explained below:
Ishikawa Diagram – It is an essential tool which helps an organisation in order to take
wise decisions. Honda is going to change its whole production process in order to take wise
decision which will not create a trouble for them.
Figure: Factors which contributes to defect XXX
In order to manage contemporary issues in management this diagram proves to be a best
tool in Honda to take decisions. This tool helps to identify various reasons which can lead to

failure of product (Theys and Schultz, 2020). In case of Honda it is very essential as they are
planning to transform petrol to electronic vehicles. As they are doing this for the first time, it is
but obvious to have manufacturing defects in the product which is a major issue to be resolved
by organisation.
So it became essential to take decisions in regards to the manufacturing of those products.
This can be achieved in effective manner if this tool is implemented by the managers in their
decision making. It is important because it shows the defect which can be occurred and effect of
those defects on organisation. If that cause and effect diagram is properly analysed, then those
decisions will help to achieve goals of an organisation.
To deal with issue of management an organisation can adopt some theories to identify
and apply effective responses. Some of them are given below:
Lewin's Change Model
It is an essential model in which organisations deals and focus on three necessary steps
which are changing, unfreezing and refreezing. It is an easy model in which company ensures
that every employee understands the complete changing procedures. This model is discovered
and developed by Kurt Lewin's change. In this model they describe every step in detail in order
to make it understandable by employees. Kurt creates a perception in this model by which
workers get influenced towards change. It focuses on behaviour which is necessary to adapt
changes and transform them into new norm.
Figure: Lewin's change Model

The essential three steps are discussed in detail below:
Unfreezing: It is a stage before changes are implemented in which company prepare their
workers for changes that are coming in organisation. It is essential for organisation to make
aware about the changes in organisation to their workers with the reasons of that changes. In case
of Honda, on the very first stage, it should make sure that their employees are prepared for
adapting changes that comes in organisation. It is observed that workers are more impulsive to
adapt changes in Honda. According to nature of human they cannot adapt changes very easily.
On the other hand, if Honda provides basic information before change then there might be a
possibility of adaptation of that change in organisation.
Changing: After ascertaining the behaviour of employees on the changes, it is time to
implement those changes in their operations and management. This step involves development of
skills and behaviour of employees in order to prepare them for such change. In order to face
those changes in organisation, employees require important skills to work accordingly
(Griesshammer, Sadjadian and Wille, 2018). That is the reason it is an essential step in Kurt
Lewin's model. Two important things which are required at priority are:
 Information Flow
 Leadership
They both plays an essential function in Honda as it increases capabilities and efficiency
of employees. These things encourage and motivate employees to adapt the changes in
organisation. Information should flow in smooth manner to be easily taken by workers. On the
other hand, leadership qualities are necessary in each and every leader of Honda in order to
motivate and encourage them. Both the things are essential in organisation to achieve success
and organisational goals and objectives just because they are important things which helps
employees to accept changes in organisation.
Refreezing: This stage stabilizes, reinforce and solidify new state later the changes are
made in an organisation and is a last step of Kurt Lewin's model. This step is essential for
organisation because it sets a permanent structure for organisation with these new norms. In easy
manner it can be said that organisation try to make that changes habitual to their workers which
are made in different functions and operations so that workers and other personnels of
organisation can continue with new norms. Once training is provided to employees it will make

habit of employees to work on new norms and company need not to provide continue trainings
for the same (Griesshammer, Sadjadian and Wille, 2018).
By going through above study of theory, it is evaluated that in order to perform functions
and operations in an efficient manner in an organisation, theory should be applied according to
the situations.
Recommendations
There are some recommendations which can be considered by the management of Honda in
order to meet with requirements as well as perform the function effectively. This
recommendation will help the organisation in managing the problems as well as performing the
function in effective way so that it can achieve better results. Some of these recommendations
are discussed below:
 The foremost recommendation to Honda is that formed in use an appropriate survey in
order to scan the environment and will perform the function according to it. This will
help the company in meeting the changes as well as adopting changes in appropriate way
by using appropriate suggestions from different stakeholders within the organisation for
staff is also help in increasing coordination and cooperation with the employees and will
help in solving their issues related to functioning.
 Bringing flexibility to organisational functions is also a factor which can be considered as
a recommendation to Honda for stop this is because flexibility within this organisation
structure will help in implementing the changes according to the requirements of the
business scenario. Is also help in meeting appropriate needs at the time of requirement as
well as strengthening the communication channel of organisation. And this form can use
different factors which will cover the skills and knowledge related to employees and
implements this system within the structure.
 It is also suggested to Honda that it can use an effective leadership program. This will
help in meeting the requirements and performing the task order into the needs of
organisation. This is because a leader will guide the employees toward the direction of
profitability as well as help in implementing changes according to the requirement.
Effective leadership will also use the resources in appropriate manner and perform
function according to the requirement of business.

 It is also recommended to Honda that manages to develop an appropriate communication
channel which will help in communicating different factors as well as information from
one person to another. This will help in meeting the requirements of structure as well as
appropriately communicating the functions. this organisation can cover different factors
which will help in meeting the requirements as well as transfer in information in a fast
way to strengthen the process of change within an organisation. And also manage
different function by utilising an appropriate communication channel. These are related to
managing employee’s recruitment of adequate employees and various other.
These are some recommendations which can be followed by Honda in order to improve
their functions and achieve better results. By following these recommendations Honda can
usually develop its functions as well as achieve results in an appropriate way. This help in
meeting the disaster of the organisation as well as working towards the goals and objectives.
These recommendations will also help in implementing the changes according to the
requirements and meeting the performance standards.
CONCLUSION
From all above discussion it can be concluded that every organisation faces various
challenges when they decide to bought changes in their functions or operations. It became
essential for organisations to evaluate dynamic environment that affects their functions and
operations. Through this report it is ascertained that it can be known through PESTLE Analysis,
Porter's analysis and SWOT analysis. Two main essential changing drivers are that occur due to
change in technology is discussed above. Numerous factors which should be strategically
responded in order to afford and adapt those changes in easy manner. It is very essential to select
one decision making tool to analyse the situation easily and find corrective measures as the
success of organisation depends on methods and techniques of decisions. Various cause and
effect diagrams can be used to simplify decision making process in order to accept changes
easily.

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