Strategic Management of Honda Malaysia: Mission, Vision, and Value Chain Analysis

This report discusses the strategic management of Honda Malaysia, including its mission and vision, strategic group analysis, value chain analysis, and stakeholder analysis. It also examines the company's competitive strategy using Porter's Generic model and evaluates how its operations support its overall strategy. Additionally, it compares Honda Malaysia with its competitors and provides a SWOT analysis and conclusions.

Strategic
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
Task 1...............................................................................................................................................1
The product/service market mission and vision of the company chosen...............................1
Strategic Group Analysis........................................................................................................1
The main and supporting activities and resources of the company........................................2
The stakeholders of the company...........................................................................................4
Task 2...............................................................................................................................................5
Conduct the basis of competition Model (Porter's generic) on the company chosen.............5
An evaluation of how supportive operations are to the overall strategy of the company chosen
................................................................................................................................................6
An analysis of how the company chosen ensures it can meet its performance objectives.....6
Task 3...............................................................................................................................................6
A comparison with competitors in the same industry (comparison from the price, services,
profit, strategic, etc)................................................................................................................6
Conclusions (SWOT and conclusions)...................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
Strategic management can be referred to as the practice of devising effective strategies
and taking crucial decisions. It is executed with the intent of attaining competitive advantage at
market place. There are a number of models and theories which are applied by companies across
the globe with the objective of gaining an edge over rival firms within the confines of same
sector. The present project is based upon Honda Malaysia which is a renowned automotive
company functioning in market since the year 1959. The report consists of mission and vision of
organisation along with strategic group analysis. Further, it encompasses value chain analysis to
determine the main and supporting activities. Besides this, the project includes analyses such as
Porter's Generic, competitive and SWOT.
Task 1
The product/service market mission and vision of the company chosen
Honda Motor Company Ltd is one of the largest automotive companies since 1959.
Honda reached a production of 400 million by the end of 2019, as well as became the world 's
largest manufacturer of internal combustion engines measured by volume, producing more than
14 million internal combustion engines every annum. The mission and vision of Honda Malaysia
are discussed as underneath:-
Mission: “To supply products of superior quality to public at reasonable prices to gain
high customer satisfaction.”
Vision: “To become the leading company within automotive sector.”
Strategic Group Analysis
Strategic Group Analysis (SGA) can be defined as the practice of identifying companies
with similar strategic characteristics following similar strategies or competing on similar bases.
Such groups can usually be identified using two or perhaps three sets of characteristics as the
bases of competition. In this regard, the Strategic Group Analysis of Honda Malaysia are given
with the help of a diagram presented below:-
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(Source: Strategic Analysis of Honda Malaysia, 2020)
The main and supporting activities and resources of the company
Value chain analysation is basically used to analyse internal firm activities, the motive of
this chain analysation having motive of recognize of which activities is most valuable. Honda
Malaysia has carried out value chain analysis with a view to gain knowledge of its main and
supporting activities. Thus, following are the value chain activities related to Honda Malaysia:-
Main Activities
Inbound Logistics:
Honda Malaysia has started to make a strong relationship with buyers and suppliers for
gaining necessary support to receive store and distributive raw material products. Analysis of
inbound logistics can help to focus the transformation of the product in aspect of raw material to
finished product while without analysis of inbound logistic can lead to face off the challenges in
product development phases.
Operations:
In Honda Malaysia they operates the operation activities when the raw material arrives,
after that they are ready to process the raw material to its end product and after that it launch in
the market with full analysis. In which it includes, Matching, Packing, Assembling as well as
testing.
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Illustration 1: Strategic Analysis of Honda Malaysia

Outbound Logistics:
There are some outbound logistic activities which maintain the outsourcing resources of
Honda Malaysia such as Transporting, material handling, warehousing other processing.
Marketing and Sales:
Honda Malaysia basically focus on improvisation of their product with quality features at
affordable cost to customers, now the role of marketing and the sales persons is to pitch the
product to the customer with right cost. Further, effective and integrated approaches by
marketing and sales person can give a benchmark the brand equity of Honda Malaysia.
Services:
Before sales and after sales in Honda Malaysia is offered as it plays an important role in
developing customer loyalty. The modern customers consider after sales services to be as
important as marketing and promotional activities.
Support Activities
Firm Infrastructure:
Honda Malaysia's effective infrastructural management allows several departments such
as operations management, accounting, financing and others to collaboratively achieve the
organisational goals and objectives within due course of time.
Human Resource Management:
Human Resource Management within the confines of Honda Malaysia is quite effective
and executes the functions such as recruiting, selection, training, rewarding, performance
management. HR in Honda Malaysia provides assistance in dealing with the competitive market
and exhibit commitment and alignment with timely realisation of goals.
Technology Development:
In Honda Malaysia, the technology development depicts that all the entity capitalises on
technological advancements to make the operations burden free and less tiring for the workforce.
The integration of technology in production, marketing, human resource activities in Honda
Malaysia reflect upon the efforts undertaken by the entity to implement technological patterns
within the premises.
Procurement:
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The procurement in value chain denotes the processes involved in purchasing of Honda
Malaysia such as acquiring equipment, machinery, raw material, supplies, raw material and other
items necessary for producing the finished product.
The stakeholders of the company
Honda Malaysia has a number of stakeholder groups such as Customers, Suppliers,
Experts, Associates, Policy Makers, Research Institutes, Local Community, NGO, Media,
Government Shareholders and Investors which are taken into consideration by the corporation
while taking any crucial decision or course of action. Considering the interests and influences of
these stakeholders is the prime concern of Honda Malaysia while executing any business practice
or launching a new offering in market place.
(Source: Stakeholders of Honda Malaysia, 2020)
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Illustration 2: Stakeholders of Honda Malaysia

Task 2
Conduct the basis of competition Model (Porter's generic) on the company chosen
Porter's Generic model is an analytical model which is used by companies with a view to
attain competitive advantage in market place. The 4 strategies belonging to this model are
discussed in context of as follows:-
Cost Leadership
Hereby, a company intends to carry out operations at lowest cost possible. The cost
advantage can be gained by Honda Malaysia as a result of preferential access to raw materials or
land or labour, economies of scale, implementation of technological advancements etc. With the
execution of this strategy, an enterprise aims to decrease the overall cost of operations and
thereby inflate the existent level of revenues as well as profits.
Differentiation
Within this strategy, the prime motive of a company is to possess certain distinction
within the characteristics or features of products or services by organisation at the market place.
Such distinction provides aid to the brands such as Honda Malaysia to gain the attention of large
number of customers and thereby enhance its profitability. Differentiation is a strategy which
seeks to inflate the perceived value of brands in the eyes of people.
Focus
This is a strategy which emphasizes upon the choice of a slender competitive scope
within the confines of a corporate sector. This strategy is classified into 2 main categories,
namely, cost focus and differentiation focus. Within cost focus, an entity intends to attain a cost
advantage within its target audience. On the other hand, differentiation focus is a strategy
whereby the firm intends to facilitate differentiation within its target audience. In this regard,
both the classifications of the focus strategy emphasize upon the differences lying between the
target segment of focuser and other target segments pertaining to the respective corporate sector.
Honda Malaysia can execute any of the above mentioned 2 focus strategies as per the intent of
the company.
On the basis of above discussion, it can be said that cost leadership is the most effective strategy
for the corporation. This would provide aid to Honda Malaysia in balancing the present high cost
structure of company. Thus, it would imply higher profit margins for the enterprise.
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An evaluation of how supportive operations are to overall strategy of company chosen
The operations of Honda Malaysia are quite supportive to the overall strategy of the
organisation. The main aim of an enterprise is to earn high profits and the overall corporate
strategy of the respective automotive company is also centred on that aim. Further, it is
acknowledged that Honda Malaysia has automated some of the operations in order to ensure
timely completion of tasks and placement of low burden upon human resources. Through this,
the automaker ensures that development of such offering take place within the organisation that
possesses the capability of meeting the needs and demands of customers. Thus, a link can be
established within the operations and strategy of Honda Malaysia and it can be seen that the
former provides aid to the latter in an effective manner.
An analysis of how the company chosen ensures it can meet its performance objectives
Honda Malaysia has applied benchmarking within the confines of premises. This strategy
provides aid to the enterprise in ascertaining the deviation between the actual and desired
performance. When deviations are ascertained, corrective actions can be taken in a timely
manner by Honda Malaysia. Thus, the whole procedure helps the automaker in ensuring the
timely achievement of performance objectives.
Task 3
A comparison with competitors in the same industry (comparison from the price, services, profit,
strategic, etc)
Conclusions (SWOT and conclusions)
Strengths Weaknesses
 Honda Malaysia is a reputable
organisation functioning within the
confines of global automotive sector.
 The entity maintains a diversified
product portfolio to gain attention of a
large number of individuals and satisfy
them with the offerings of the
company.
 Large number of product recalls by
Honda Malaysia has led to dampening
of goodwill of company among the
customers.
 The corporation presently has a high
cost structure which deflates the profit
margin for Honda Malaysia.
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 The automaker makes a heavy
investment within Research and
Development in order to identify the
latest trends and patterns of customers,
thereby making efforts to produce
vehicles which can meet such demands.
Opportunities Threats
 The company has the opportunity to
develop green cars as there is high
demand in market for the same.
 Honda Malaysia can attain growth
through execution of acquisition
strategy. It can acquire small firms
within automotive sector to enhance its
market share and customer base.
 The company faces massive
competition in market place from top
notch companies such as Toyota,
Perodua and many more.
On the basis of above discussion, it can be said that strategic management is crucial for the
success and growth of an organisation. In addition to this, it can be determined that cost
leadership is an effective strategy through which the high cost structure of an entity can be
balanced. Further, it is analysed that the respective company capitalise upon the main and
support activities to gain growth in market.
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REFERENCES
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