Strategic Analysis of Honda

Added on - 31 May 2021

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Running head: STRATEGIC ANALYSIS OF HONDAStrategic Analysis of HondaName of the Student:Name of the University:Author’s Note:Course ID:
1STRATEGIC ANALYSIS OF HONDAExecutive Summary:The current report would focus on analysing the external environment in the context ofHonda Motor Company Limited, which is a Japanese multinational entity popular formanufacturing automobiles, motorcycles, aircraft and power equipment. It could be stated thatHonda is enjoying stable position in the global automobile industry due to the adoption ofinnovative technologies in manufacturing its main products. However, it is facing increasedcompetition from the global rivals, which might minimise its profit in future. As a result, it has tocome up with new strategies for coping up with such increased rivalry. Moreover, the financialanalysis conducted states that the organisation has a healthy financial position in the market;however, it needs to focus on minimising its debt burden, as it would help in eliminating thefinancial risk.
2STRATEGIC ANALYSIS OF HONDATable of Contents1. Introduction:................................................................................................................................32. Analysis of the external environment of Honda:.........................................................................32.1 PESTEL analysis of Honda:..................................................................................................32.2 Porter’s five forces model of Honda:.....................................................................................52.3 Opportunities and challenges (threats) to Honda and global automobile industry:...............73. Analysis of the capabilities of Honda and its key strengths and weaknesses:.............................83.1 Financial analysis:.................................................................................................................83.2 Product/service portfolio and operational analyses:..............................................................94. Conclusion:..................................................................................................................................9References:....................................................................................................................................11Appendices:...................................................................................................................................13
3STRATEGIC ANALYSIS OF HONDA1. Introduction:The current report would focus on analysing the external environment in the context ofHonda Motor Company Limited, which is a Japanese multinational entity popular formanufacturing automobiles, motorcycles, aircraft and power equipment. It is the biggest globalmanufacturer of internal combustion engines in terms of volume and eighth biggest globalautomobile manufacturer since 1959 (Global.honda 2018). The external analysis would usePESTEL and Porter’s five forces model along with the opportunities and threats inherent in theglobal automobile industry. The latter segment of the report would focus on analysing the keycapabilities of Honda by using trend analysis, ratio analysis, product/service portfolio andoperations for identifying its key strengths and weaknesses.2. Analysis of the external environment of Honda:2.1 PESTEL analysis of Honda:There are six macro-environmental factors, which could have direct impact on thebusiness operations of Honda in the global marketplace and they are evaluated briefly as follows:Political factors:In UK, there has been decline in the sale of cars after the enforcement of the newproposal of the government. This would have negative impact on the revenue of Honda, as theymight not be able to manufacture the same number of cars like before. Moreover, the individualsresiding in Europe and in some Asian nations like Australia have to incur higher tax payments.The stability in the political environment would formulate the modern standards while boostingthe endowment (Frynas and Mellahi 2015). Since the political changes would have direct
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