Strategic Responses to Change: A Case Study on Honda Motor Company

This report analyzes the contemporary management issues faced by Honda Motor Company, focusing on its strategic responses to various change drivers. The report examines how Honda has strategically addressed challenges such as the failure of electric car initiatives and the closure of its Swindon plant, considering external pressures like Brexit and climate change. It explores Lewin's change model and force field analysis to understand the company's adaptation strategies. The impact of change drivers on strategic decisions and operations is assessed, utilizing tools like SWOT and Ansoff matrix. The report provides a comprehensive overview of Honda's approach to navigating a dynamic business environment and offers insights into the company's decision-making processes and recommendations regarding dispute resolution.

CONTEMPORARY
MANAGEMENT ISSUES

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
The way organisation has strategically responded to driver of changes by considering for
nature of pressure for change .....................................................................................................3
Lewin's change model ................................................................................................................4
Force Field analysis ....................................................................................................................5
Impact of change drivers on strategy decision and operation......................................................6
SWOT analysis ..........................................................................................................................9
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
The management is a process wide process which involve planning, organizing, inspiring
motivating and controlling the various department to reach its target more efficiently. A
management is act as core of successful organization (Imazio, Gaido, Battaglia and Gaita, 2017).
Management is important because it makes all the activity to perform by all the departments and
control as well. While managing all the function management face different issues, and they
make required action to overcome from that. Honda Motor company, Ltd is a multinational
company of Motorcycles, automobile and the power equipments. The report is about the case
study in that Honda faced failure in electric cars and closing its Swindon plant (Van Diepen and
et. al., 2017). It determines the strategic respond to the drivers of change in order to grow and
survive in competitive market. Moreover, it has contained information related to
recommendation regarding the way Honda Motor company, Ltd resolves the dispute.
MAIN BODY
The way organisation has strategically responded to driver of changes by considering for nature
of pressure for change
There are numerous changes in external environment that adversely impact on strategy
and operation of business therefore companies needs to effectively manage them in order to gain
higher success. Organisation is part of society which is dynamic in nature, as there are numerous
changes which forced company to make modification in its strategy and operation so that end
outcome can be achieved. This case study is about Honda that close down its operation due to
government failure to champion electric car which has lead in thousand of job loss and many
more throughout the supply chain. Brexit act as key challenge as it lead to change in policies of
government thus resulted in delay of supply of parts to the company (Shimoni, 2017). Climate
emergency has also forced company to intake operation related to protection so that people can
live healthy lifestyle in society. Honda by understanding increasing pollution, development in
technology and more demand of customers in external environment is able to formulate
effectively strategy that can be fruitful for organisation. Such as Transport emission remains UK
biggest sources of greenhouse gases so company in order to tackle climate changes has found
solution is electric car. At the same time UK government in order to cut down carbon emission
and reap economic benefits has decided that it should be one of the best place of electric vehicles
in the world. Moreover, Due to brexit there were significant delay at UK ports so disruption has

port has caused ineffective supply chain or delay in delivery of material. It has also been founded
that due to coronavirus global shipping industry prices has rise drastically, at the same time there
is shortage of containers at Chinese ports. So, it lead adverse or vulnerable affect on Honda
because of just in time supply chain which helped company in brining parts to factory whenever
required only (Szabla and et.al., 2017). All this disruption at ports has forced company top work
on its supply chain so that parts can be gathered in limited time possible and needs of people can
be satisfied in the best possible manner. Therefore, all these acts as drivers of changes that
influenced Honda to introduce electric vehicles so that pollution can be reduced and needs of
people can be fulfilled. Various model of change management can be used in order to the way
company have take advantages of available opportunity by introducing electric car.
Lewin's change model
As the changes are main threat for all the businesses regarding the industry, size and age. As
today's world the changes are taken frequently and organization in the environment have to
change accordingly to survive and sustain in market (Shu and Lewin, 2017). This model has
three levels to understand the change.
Unfreeze
In the starting stage Honda Motor company, Ltd will accept the changes which are necessary, in
this Honda will make an analysis of this which are needed for the company to get competitive
advantages. The stage shows why the potential plan of company is not sufficient to continue
further (Mizobuchi and et. al., 2020). The easy way to frame point in poor financial results,
surveys, sales reduces and others. Honda is identified that the pollution is majorly becoming
issue for all and the company have to stop this by adopting certain technologies in their
production and products so for this company get to know to launch an electric car. The starting
part is competitively more complex and difficult. To make an effective change Honda have to
challenge the beliefs, attitude, values that can explain.
Change
After identifying of the things to obtain next step is where people are more motived to resolve
the uncertainty and look for new way to things. The manager of Honda will firstly communicate
the necessary information to the employees of the company further motivate and inspire the

peoples to work in that direction. The manager will use different leadership style to lead the
group of people in a way that they will work more efficiently if Honda Motorcycle company Ltd
will launch the technology.
Refreeze
After the change take place in the organization then taking required shape and people are
working in productive manner. Honda is help by this stage manager will embed the change in
technology to sustain for long-term as employees are not that much agree to change the method
but manager have to make change as the process needs that to get benefit in competitive market.
The manager will also support the team in implementation process of change.
Force Field analysis
This analysis is a development of social- science. This is made by Kurt Lewin in the year 1940s.
With the help of this analysis the business can get to know the factors that leads to make changes
in Honda Motorcycle Ltd. This tool is basically used to make decisions as the tool is analysing
the different forces against any change this tool is used in a particular process are as under :
Stage 1
In this step the Honda's manager will explain to their employees the technology expansion to
introduce the electric car which help the people of company to be prepared for the new
production. The end goal of company is to launch the electric car and earn its brand value with
profit. Honda is also keeping in mind the environment and try to produce in a way that
production is minimized (Loredana, 2017).
Stage 2
In the second step the force identification for change take place there are two type of drivers of
change to influence Honda Motorcycle Ltd. Extrinsic and intrinsic. Honda is influenced internal
by its product categories as the Product are having less variety in it so by introducing electric car
the category will expand and the buyer also get more choices. The produce line force the
manager to make a change that help Honda to get competitive advantages. The another internal
factor is supply chain for company is less efficient and their raw material is not on time
ultimately the production department is being affected by this. So company have to change its

supply chain to get more production and with this it can manage the time as well. The technology
is getting more advance these days as the Honda motorcycle is launching the electric car which
will make customer attract towards the company products. The electric car is a new technology
product in the market if Honda Motorcycle Ltd makes an effective use of technology in its
electric car production.
The external element which forces making change are the political factors as the
government is making various rules and regulation. For now the government of UK is trying to
make various efforts to develop the technology in electric cars. With this technology of electric
car the carbon emission and lead the Honda company to sustain for long-term. The climate is
also led to make force change because of various fossil oil is being used in the normal cars, and
they are producing pollution so if the company change its products to electric cars than this
problem can be resolved by this. The another element to force the change is preference of
customers because today's buyer are in search of innovative technology used in their products.
The technologies are attracting buyer they need to stand out in the society and technology help
them to do so. electric cars are now new and trendy in the market of united kingdom so if Honda
will use this type of technology then their expansion will be done ultimately.
Impact of change drivers on strategy decision and operation
The change in Honda motorcycle Ltd is influencing the decision of which strategy should be
taken for the company to identify the operation followed in company.
Ansoff matrix
This tool of strategy planning is made by Igor Ansoff and make into use in 1957. This strategy
has two approaches to enhance the growth strategy (Honda and et. al., 2017). It involves four
major fields of matrix and evaluate the growth opportunities which are offered to Honda
Motorcycle Ltd.
Market penetration
This is the most common and widely used strategy by many companies to have their growth
opportunities. This strategy will help companies to win the market shares with pre-existing
products. The companies under using this strategy tries to sell more of its existing products to
existing and new buyer (Sudharshan, 2019). The focus of this approach is to earn more share in
the existing market. Penetration have comparatively less risk, but it allows shorter growth

opportunities. The market penetration is used to calculate the potential of companies. The
company is regularly try to attract and influence market customers to buy their existing product
for this try use discounts and offer technique so that people get attracted.
Market development
In this strategy of developing market the companies are trying to attract new market share with
existing products range. In this new market is totally fresh as it can be new nation or new
targeted group in the society. This strategy needs only a minor change to the product and to adapt
new market. Market developing need a different market to enter in and sale its product in that
with a minor difference by this they can cover and reach more customers and company have the
opportunities to increase its market share internationally. The brand value its also enhanced by
this globally.
Product development
This strategy is used when a company introduces new product in existing or potential market and
customers. The company either tries to replace the product or expanding its variety of products.
The advantage of this strategy is that customer is aware of the company and if the company will
come with an innovative product than potential and new customers are willing to buy that. As
they know the product quality and classification. In the production development the company has
higher risk because the technology used is totally new and there are probability of failure in the
market.
Diversification
in this strategy is used by company when they have to launch a new product in a new market.
The market is totally new for the company, and they are trying to launch a new product as well in
that market, as it offer a favourable potential for its growth, but it as comparatively the highest
risk in the market. This strategy is diversification in vertical, horizontal and lateral as per risk
degree. In this vertical diversification the company intensify its commitment to sale- oriented
activities and the present manufacturing style of the products. In horizontal diversification is
enhancement of product which is factual related to earlier offered product range and in lateral
diversification strategy is used when the company try to expend in new market.
Honda Motorcycle Ltd is introducing its electric cars in the existing market and potential
customer's so it is basically using the product development strategy in this their target market is
same, and they are trying to increase the market share with the new product and technology in

that with this strategy (Dou and Wu, 2017). The Honda Motorcycle Ltd is using development of
product to electric by these customers are attracted and willing to by the products, and they can
gain more market share.
Porter's generic strategy
this show that the company can get comparative benefit in the targeted market in contain
four strategy which have lower price, focus and differentiation. The company have to adopt one
of this element to get comparative advantages in the market.
Cost leadership
In this the company has adopted lower cost producer in their particular industry. The benefit are
totally depends on the industry or sector in which the company is operating. The lower cost
producer in the industry get comparative advantages in the market. If the firm can sustain and
achieve the cost leadership then it will do above its normal performance in that particular
industry and get benefit. In this process the company have relative lesser price but the profit
Marge is high. In modern world customer's only need those products which are lesser in price
and have a standard quality in the market. If the buyer know that they differentially shift and
change their preference.
Differentiation
The differentiation strategy let the company to adopt and offer a particular and unique thing in its
product so that the customer's can differentiate that product out of other in the market. This has
more attributes that are perceived by various customer's as important and the specificness of
brand help to meet the brand requirements. The company is also rewarded for offering the
society with a unique style and affordable pricing. With the help of this strategy the customer's
will also attract to buy the product as it has a unique and innovative product which is not yet
owned by other brand. So they will shift their preference to this brand as it has more modern and
unique product (Zaidi and Lan, 2017).
Focus
In this they are focusing on selective and group of people to operate and then they apply their
strategy on that the first is the cost focus in this the company try to focus on those selective
group which are target and try to get advantage of cost. The company will make the effective
price and a premium quality in their product so the customer's get attract and try to buy that
specificness product. Mostly this strategy used in a high class product in that they targeted higher

class people and offer them their level of quality and product so that they get satisfied by that
product. This strategy is used by big companies which are producing premium quality in their
product so that can target the people who are higher level of disposable income.
Honda is a multinational company having cost leadership strategy in which the company
is try to adopt a lower price strategy in its segment or in particular value ratio. Honda motorcycle
Ltd is also launching its electric car with the same strategy to attract more and more customer in
the market.
SWOT analysis
It stands for Strength, weakness, opportunities and threat which Honda Motorcycle, Ltd is having
in the comparative market (Granulo and Tanović, 2018).
Strength
Honda Motorcycle is having diversified product portfolio with this company is attracting more
customers. The company is having engine as its main product for the cars and motorcycle.
Honda is using AI technologies to make its product so it accurate and the chances of mismatch
are nil. The company is having a strong position internationally. The change in Honda and
launching of electric car will enhance the entire business of the company. The operation is being
changed with changing drivers. Company recruited more efficiently employer to produce electric
car and train them to use artificial intelligence techniques to use in the production to develop its
method.
Weakness
The company is doing less investment in research and development process this is affecting the
changes of driver because the company have to launch a high technology product which needs
researches and development process to analysis the market and take effective step for the same.
The company most of the revenue is generated with the northern America so if they will not
produce innovative product in the market then the revenue is also dropped in America. The
international customer's needs an innovative product and unique technology to stand out in the
market.
Opportunities

Honda motorcycle is having opportunities while performing the change as the government is also
helping the company to take a step towards the innovation of electric car. Government of UK is
imposing fewer rules and regulation to the companies who are trying for this. By the innovation
of electric car the economy of UK is also get improve because people will buy this and Honda
will contribute certain tax to government so with this economy can also enhance. Honda
motorcycle can have comparative advantages if they are launching their product in a particular
period of time. With this they reach more customers and get benefit as well (Anas, Harini and
Fathoni, 2018).
Threats
In modern market of automobile and motorcycle the Honda is having lots of competitors this
making the company to change its product line and product that product which had a high
technology. The company sometimes also can face the natural disaster for this they should
prepare to deal with. The company changing drivers mainly focus on protection of environment
and build the technology to attract its customer's and avoid the extrinsic threats.
RECOMMENDATION
From the following case study of Honda we have analysed that Honda has been shutting
their plant due to human tragedy in Japanese port and UK container ports that results in forceful
shut the Japanese car makers. Dispute in the largest port of UK which increase the price of
shipping which cause Honda supply chain affected and product pats are not been able to reach on
time and in suitable cost (David, 2020.). The shutting down of plant in Sweden cost in lot of job
losses in plant and through supply chain. Whereas, climate change have been drastically changes
nowadays with the technologies to environment and taste and preference of the consumer. Honda
Motors should adopt the changes by analyses the market and get competitive advantages leads to
increase in sales, strong financial position. Electric cars are the future scope for Honda Motors
which can be captured and can adopt the future change which is less costly and also help to
protect the environment. While the company also motivate the employees and trained to adopt
the changes to work for the future growth and sustain in the market. Leadership help them to
work with efficient and well focused on the target. Also, change occur with the change in the
people thinking and adaptivity and that need be shape accordingly. Force field analysis help the
Honda Motors to adopt the technological changes for the company and employees. This will help
to achieve the new changes by producing electric cars which is the future growth of company

and build the brand value. As, Normal cars are becoming more and more expensive and also
damage the environmental surroundings with carbon emission and carbon dioxide which cause
human health and environment, new electric cars are being produce by company's like Tesla,
Mercedes but cost very high to the consumers. Honda Motors have the opportunities to produce
electric cars for the mid range consumer in the country, this will not only increase the sales but
also results in building the brand value in the eye of consumers and satisfy the need of market.
But with the competitive market, Honda Motors have to create the strong supply change for raw
material and motor parts with effective channel and cost from the producers (Kirsch, 2014).
Effective Supply chain help the company to cut its holding cost and production process not been
affected. As the government have been implemented with various rules and regulation for the
automotive companies which cause damage to environment by releasing carbon emission and
carbon dioxide gases in the market. UK's government have been putting efforts more to electric
cars in the country because of drastically climate changes and effect from gases. Fossil oils are
being in limited in number for use and also cause damage to environment while electric cars are
being seeing as the ozone-friendly cars and budgeted cars for the consumer with innovative
product. This also attract the consumers towards the company and increase the overall
performance of company in the market. Honda Motors should be followed some strategies that
influences the decision-making of the company. These strategies help the company to growth
their market share with new product and existing product. Company should know the potential of
making the new product in the market by market analysis and preparing the strong supply chain
and production technology towards the new product. Strategies of Honda Motors attract new
market for their new product to expand the market share for product range with high tech
technology and ozone-friendly products. Technological factors is the most important for
producing of the product effectively and develop the product according too needs. While
environmental factors are also considering in producing the product that not cause damage to
environment while producing the Cars (Ozawaet.al., 2018). As UK is the most suitable place to
produce the electric car, Honda Motors have very key advantage of producing the electric cars
and increase the market share of company. While the fuels cars and vans are set last year on
2040 by UK government. Honda Motors can take the benefits of being producing the budgeted
cars early in the market and capture major of the stake. While being in the dispute in ports of
Japan and China, Honda Motors can channelize their supply chain through India which can be

more cost effective in raw materials. Cutting down carbon emission and gathering the economy
in the country, can make them leader in the market. And if they haven't adopt this quickly China
will play as the leader in the market which make UK government weak and may affect the
country infrastructure, energy companies and supply chain companies. Government have been
working on tax preferential to encourage the companies making of electric cars. So, Honda have
advantage to adopt the changes and start producing the electric cars which have a very wide
scope in future and which is also supporting by the government of UK. Honda motor have been
shut their production of Sweden plant due to dispute which results in lose of the company and
inefficiency of company which shows the company planning in supply chain is being affected
due to the pandemic (Salah, et,al., 2019). Honda Motor have been more efficient and required the
backup plan for avoid this situation. Also, Honda also have to maintain the reserve stock which
are used in such crises. However, Honda Motor should adopt the change and start their
production process on electric cars with the latest technology which is the future scope of every
company (Shu, Lewin, 2017.). Honda Motor can easily grab the opportunity which is also
initiated by government of UK while maintain the supply chain and backup plan for any situation
occur due to economic or political.
CONCLUSION
From the above report it can be concluded that there are several forces which has
influenced Honda to make change in its operation and key strategy so that it can enjoy maximum
profitability and market share. It is also learned, that company by launching electric car is able to
contribute in welfare of society by reducing the amount of pollution. The drivers of change has
impacted company operation and strategy as it has to considered all these factors while deciding
appropriate steps which could be fruitful for organisation. Moreover, it can be stated that
company by making use of above recommendations can resolve its issue or effectively manage
its supply chain in order to retained and maintained its market positioning.

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