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Honda Strategic Venturing Honda Strategic Venturing (HSV) is the corporate venture arm of the global Honda R&D organization. HSV primarily engages in building partnerships with the venture community for collaborative opportunities in order to create synergy with Honda's long-term R&D strategy. Leadership 1948–1973 – Soichiro Honda 1973–1983 – Kiyoshi Kawashima 1983–1990 – Tadashi Kume 1990–1998 – Nobuhiko Kawamoto 1998–2004 – Hiroyuki Yoshino 2004–2009 – Takeo Fukui since 2009 – Takanobu Ito Products [edit ] Automobiles For a list of vehicles, see List of Honda vehicles . 2008 Honda Accord (USA spec) Robots Motorcycles Main article: Honda Racing Corporation

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Page 1: Honda Strategic Venturing

Honda Strategic Venturing Honda Strategic Venturing (HSV) is the corporate venture arm of the global Honda R&D organization. HSV primarily engages in building partnerships with the venture community for collaborative opportunities in order to create synergy with Honda's long-term R&D strategy. HSV MissionHonda's competitive advantage has always come from product innovation supported by strong R&D activities. As a function of Honda R&D, the HSV mission is to identify trends in innovation, scout technology partners to fulfill various long-term needs of Honda R&D, and

Leadership

1948–1973 – Soichiro Honda 1973–1983 – Kiyoshi Kawashima 1983–1990 – Tadashi Kume 1990–1998 – Nobuhiko Kawamoto 1998–2004 – Hiroyuki Yoshino 2004–2009 – Takeo Fukui since 2009 – Takanobu Ito

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Page 2: Honda Strategic Venturing

convert ideas into executable collaborative projects. 

Alternative Energy: HSV is seeking novel technology which would improve energy ecosystems from energy generation to consumption such as photovoltaic energy, bio fuel and fuel cell. Advanced Materials: Great technology breakthroughs often come from material innovation. We are looking for advanced material technologies such as nano-material, functional material and structural material.

Leadership

1948–1973 – Soichiro Honda 1973–1983 – Kiyoshi Kawashima 1983–1990 – Tadashi Kume 1990–1998 – Nobuhiko Kawamoto 1998–2004 – Hiroyuki Yoshino 2004–2009 – Takeo Fukui since 2009 – Takanobu Ito

Products

[edit] AutomobilesFor a list of vehicles, see List of Honda vehicles.

2008 Honda Accord (USA spec)

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Robotics: Our future products would be able to recognize, think and act to increase safety, convenience and comfort. We are interested in advanced robotics technologies that would further our products' intelligence such as sensors, actuators and recognition algorithms.

 Besides these technology areas, we are always open to any new ideas to address the evolving future market needs and improve our product performance. We review every proposal that comes to us. For submission, please send us a brief summary of your technology to [email protected] or mail the information packet to:

Leadership

1948–1973 – Soichiro Honda 1973–1983 – Kiyoshi Kawashima 1983–1990 – Tadashi Kume 1990–1998 – Nobuhiko Kawamoto 1998–2004 – Hiroyuki Yoshino 2004–2009 – Takeo Fukui since 2009 – Takanobu Ito

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Honda Research Institute USA, Inc.Attention: HSV Proposal425 National Avenue, Suite 100Mountain View, CA 94043 Please do not send us your confidential information without NDA, although in-depth information on your technology would be helpful to determine our interest. Someone on the HSV team will review the proposal, and if it is something that we would like to pursue further, we will contact you.

Leadership

1948–1973 – Soichiro Honda 1973–1983 – Kiyoshi Kawashima 1983–1990 – Tadashi Kume 1990–1998 – Nobuhiko Kawamoto 1998–2004 – Hiroyuki Yoshino 2004–2009 – Takeo Fukui since 2009 – Takanobu Ito

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 For more information, please visit Honda Strategic Venturing web site.

  Honda Strategic Venturing (HSV) is the strategic venture investment arm of the global Honda R&D organization. HSV makes investments in technology venture companies which would create synergy with Honda's long-term R&D strategy.

Leadership

1948–1973 – Soichiro Honda 1973–1983 – Kiyoshi Kawashima 1983–1990 – Tadashi Kume 1990–1998 – Nobuhiko Kawamoto 1998–2004 – Hiroyuki Yoshino 2004–2009 – Takeo Fukui since 2009 – Takanobu Ito

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Paul CummingsPrincipalHonda Strategic Venturing

Paul Cummings is a Principal with Honda Strategic Venturing (HSV), the corporate venture capital arm of Honda Motor Corporation based in Mountain View, California. HSV seeks investment opportunities in technology venture companies to establish the strategic foundation for collaborative partnership both to excel Honda’s innovative R&D and to help technology venture companies succeed in Honda’s product markets. Prior to joining Honda,

Leadership

1948–1973 – Soichiro Honda 1973–1983 – Kiyoshi Kawashima 1983–1990 – Tadashi Kume 1990–1998 – Nobuhiko Kawamoto 1998–2004 – Hiroyuki Yoshino 2004–2009 – Takeo Fukui since 2009 – Takanobu Ito

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Paul held various management positions with an automotive tier 1 supplier; including, positions in mergers and acquisitions, business development and operations for a Japanese partnered joint venture. Paul also worked for Accenture in the Sydney, Australia office with the Strategy Consulting Practice. Paul holds an MBA from the University of Chicago, and BA from Michigan State University.

Paul participated in the FundingPost event: Silicon Valley VC and Angel Conference on Thursday, March 4, 2010 in CA, Sponsored by Bingham McCutchen LLP

Leadership

1948–1973 – Soichiro Honda 1973–1983 – Kiyoshi Kawashima 1983–1990 – Tadashi Kume 1990–1998 – Nobuhiko Kawamoto 1998–2004 – Hiroyuki Yoshino 2004–2009 – Takeo Fukui since 2009 – Takanobu Ito

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To list your Company on our website and make your profile available to Paul and 7,500+ other VCs and Angel Investors, Click Here.

Honda Strategy - Presentation Transcript

1. Welcome to Honda Ltd., HCM International University Strategic Management for Global Group 8

2. Outline • Introduction • Five levels of strategy • Decision maker • The six external environments • Global challenges • Analyze the firm’s structure • Organizational process

Leadership

1948–1973 – Soichiro Honda 1973–1983 – Kiyoshi Kawashima 1983–1990 – Tadashi Kume 1990–1998 – Nobuhiko Kawamoto 1998–2004 – Hiroyuki Yoshino 2004–2009 – Takeo Fukui since 2009 – Takanobu Ito

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• Social responsibility • Managing people • Evaluations and controls • Conclusion • References

3. The Power of Dream • Soichiro Honda (1906-1992) was Japanese engineer and industrialist, and founder of Honda Co.,Ltd. • In 1937, Honda began producing piston rings-used in motorcycles. • In 1948, Honda stared producing complete motorcycles. • In 1949, Takeo Fujisawa joined the Honda ( one of the most person lead to Honda’s success ) • In 1968, Launching the Honda 1300- Honda’s first small car.

4. Describe the firm today • 4 main segments following: – Motorcycle business – Automobile business – Financial service business – Power product and other business • More than 167.231 associates in the Global scale. • Stand the largest motorcycle

Leadership

1948–1973 – Soichiro Honda 1973–1983 – Kiyoshi Kawashima 1983–1990 – Tadashi Kume 1990–1998 – Nobuhiko Kawamoto 1998–2004 – Hiroyuki Yoshino 2004–2009 – Takeo Fukui since 2009 – Takanobu Ito

Products

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2008 Honda Accord (USA spec)

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manufacturer and the 7th automobile manufacturer in the world. • On the march, 2008, Honda was ranked as the best car in US by Consumer Reports.

5. The five levels of strategy 6. Enterprise Strategy • The Mission Statement of Honda is try to maintain a global point of

view, with the dedication to supply the highest quality products at a reasonable price for worldwide customer satisfaction. Moreover, taking new challenges with the pursuit of Initiative, Technology and Quality, Honda is pursuing their 2010 Vision: Striving to be a company society wants to exist through creating new value, globalization, and commitment for the future.

Leadership

1948–1973 – Soichiro Honda 1973–1983 – Kiyoshi Kawashima 1983–1990 – Tadashi Kume 1990–1998 – Nobuhiko Kawamoto 1998–2004 – Hiroyuki Yoshino 2004–2009 – Takeo Fukui since 2009 – Takanobu Ito

Products

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2008 Honda Accord (USA spec)

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7. Corporate Strategy • Automobile Industry – Superior Fuel economy – Optimum safety – Driving Pleasure – World wide • Motorcycle Industry – Build product close to customer – 28 plant, 21 countries, R&D 6 countries • Power Business – First business of Honda – Expanded – 11 plant, 9 countries, sold 156 countries, used by 5.5M people – ASIMO – Honda jet

8. Business Strategy • R&D System – Approach: • Durability • Reliability • Focus Foundation – Dimensions: • Economical • Environmental • Social Issues

9. Business Strategy • Globalization Characteristic 10. Business Strategy • “The Joy of Selling” - Dealership – Create inspiring experience for

its customers – Response to changing value – Increasingly complicated needs of

Leadership

1948–1973 – Soichiro Honda 1973–1983 – Kiyoshi Kawashima 1983–1990 – Tadashi Kume 1990–1998 – Nobuhiko Kawamoto 1998–2004 – Hiroyuki Yoshino 2004–2009 – Takeo Fukui since 2009 – Takanobu Ito

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customers – => Improve customer relations • Friendly and attentive sales • Responsive service support • Thorough maintenance and repair – => “Life with Honda”

11. Operational Strategy • Divide 6 administrative regional group • Pursue independence of local management and sales operations • Operate under conduct guidelines => keep evaluating and risk managing • High level of transparency

12. Individual Strategy • “The Three Joy” – The Joy of buying – The Joy of Selling • Not only relationship • But feel pride by positive relationship – The Joy of Producing • Pride in exceeding the customer expectation

13. Organizational Process – Organization culture – Innovation Management 14. Organization culture Respects for the Individual and The Three Joys

Leadership

1948–1973 – Soichiro Honda 1973–1983 – Kiyoshi Kawashima 1983–1990 – Tadashi Kume 1990–1998 – Nobuhiko Kawamoto 1998–2004 – Hiroyuki Yoshino 2004–2009 – Takeo Fukui since 2009 – Takanobu Ito

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15. Organization culture • “Respects for the Individual” • “The Three Joys” 16. “Respects for the Individual” • Initiative: Encouraging creative thinking • Equality: Fairly

treating. • Trust: Good relationship between employees 17. “The Three Joys” • The Joy of Buying • The Joy of Selling • The Joy of Producing 18. Innovation Management • Developing new technologies of manufacturing system •

Building environmentally responsible and people-friendly plants. 19. Managing People 20. Managing people • Environmental training • Ensuring diversity in employment 21. Environmental training • Part of Honda’s training curriculum • Deepen associates’

understanding about Honda’s policy toward environmental • Training programs are

Leadership

1948–1973 – Soichiro Honda 1973–1983 – Kiyoshi Kawashima 1983–1990 – Tadashi Kume 1990–1998 – Nobuhiko Kawamoto 1998–2004 – Hiroyuki Yoshino 2004–2009 – Takeo Fukui since 2009 – Takanobu Ito

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continuously provided to associates • Promote activities focusing on energy and resource conservation and recycling

22. Ensuring diversity in employment • Provide human rights education, based on Honda’s principal of respect for individual • Opendoor employment policy, hiring based on individual merit • Employ people with disabilities • Reemploy retirees, create opportunities for those who reach the retirement age of 60

23. Introduction

24.  

Leadership

1948–1973 – Soichiro Honda 1973–1983 – Kiyoshi Kawashima 1983–1990 – Tadashi Kume 1990–1998 – Nobuhiko Kawamoto 1998–2004 – Hiroyuki Yoshino 2004–2009 – Takeo Fukui since 2009 – Takanobu Ito

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25. This essay provides a rundown on the basic application of generic strategies in

two organizations that are in different industrial sectors.  In lieu to this essay, the

chosen two organizations are both multinational companies and are

manufacturer of goods that is primarily driven by the companies’ respective

expertise on modern innovations.  The two organizations being chosen has

Leadership

1948–1973 – Soichiro Honda 1973–1983 – Kiyoshi Kawashima 1983–1990 – Tadashi Kume 1990–1998 – Nobuhiko Kawamoto 1998–2004 – Hiroyuki Yoshino 2004–2009 – Takeo Fukui since 2009 – Takanobu Ito

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proved their mark in the business, thus exploring on their current generic

strategies is interesting.  Nike and Honda motors, are in the shoe industry and in

automotive industry pertaining to the latter. Further, since both are not domestic

organizations, accessibility to primary data are barely unachievable though the

supporting data can still purport to the critical analysis that is to be made by the

Leadership

1948–1973 – Soichiro Honda 1973–1983 – Kiyoshi Kawashima 1983–1990 – Tadashi Kume 1990–1998 – Nobuhiko Kawamoto 1998–2004 – Hiroyuki Yoshino 2004–2009 – Takeo Fukui since 2009 – Takanobu Ito

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two organizations.  To begin with, an overview of the nature of generic strategies

would be of help to better understand the whole context and useful in the

formulation of critical analysis for the current generic strategies being employed

by Nike and Honda. 

Leadership

1948–1973 – Soichiro Honda 1973–1983 – Kiyoshi Kawashima 1983–1990 – Tadashi Kume 1990–1998 – Nobuhiko Kawamoto 1998–2004 – Hiroyuki Yoshino 2004–2009 – Takeo Fukui since 2009 – Takanobu Ito

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26. Generic strategies was formulated by Michael Porter that has considered a

category scheme consisting of three typed of strategies being employed by

businnesses.  These are the level of differentiation, relative product cost, and

scope of target market.  Further, these three generic strategies are defined along

two dimensions namely strategic scope and strategic strength.  By strategic

Leadership

1948–1973 – Soichiro Honda 1973–1983 – Kiyoshi Kawashima 1983–1990 – Tadashi Kume 1990–1998 – Nobuhiko Kawamoto 1998–2004 – Hiroyuki Yoshino 2004–2009 – Takeo Fukui since 2009 – Takanobu Ito

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scope connotes the demand-side which focuses on the marketplace factors and

the strategic strength on the other hand, connotes the supply-side in which it

focuses internal environment of the company that would serve as the company’s

competitive advantage.  However in the year 1980 in his classic book

Competitive Strategy: Techniques for Analyzing Industries and Competitor

Leadership

1948–1973 – Soichiro Honda 1973–1983 – Kiyoshi Kawashima 1983–1990 – Tadashi Kume 1990–1998 – Nobuhiko Kawamoto 1998–2004 – Hiroyuki Yoshino 2004–2009 – Takeo Fukui since 2009 – Takanobu Ito

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( 1980), he altered the category scheme into cost leadership, differentiaton and

market segment or also known as the focus segment.  To simplify the three

revised and simplified generic strategies category scheme for business, an

illustration of the ’s generic strategies will be shown in the diagram below:

Leadership

1948–1973 – Soichiro Honda 1973–1983 – Kiyoshi Kawashima 1983–1990 – Tadashi Kume 1990–1998 – Nobuhiko Kawamoto 1998–2004 – Hiroyuki Yoshino 2004–2009 – Takeo Fukui since 2009 – Takanobu Ito

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27.

Leadership

1948–1973 – Soichiro Honda 1973–1983 – Kiyoshi Kawashima 1983–1990 – Tadashi Kume 1990–1998 – Nobuhiko Kawamoto 1998–2004 – Hiroyuki Yoshino 2004–2009 – Takeo Fukui since 2009 – Takanobu Ito

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28. Diagram is from to be accessed through 

29.  

30. Cost leadership strategy place emphasis on efficiency through the production of

high volumes and standardized products in order to take advantage the scale of

economies and the curve effects being experienced.  Researches about the

Leadership

1948–1973 – Soichiro Honda 1973–1983 – Kiyoshi Kawashima 1983–1990 – Tadashi Kume 1990–1998 – Nobuhiko Kawamoto 1998–2004 – Hiroyuki Yoshino 2004–2009 – Takeo Fukui since 2009 – Takanobu Ito

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impact of profit on the market share indicated that firms with high market share

were often profitable and so does with low market share, but for the firms with

moderate market shares are the ones that is likely to be least profitable.   (1980)

explains, high market shares were successful because they pursued a cost

leadership strategy and firms with low market share were successful because

Leadership

1948–1973 – Soichiro Honda 1973–1983 – Kiyoshi Kawashima 1983–1990 – Tadashi Kume 1990–1998 – Nobuhiko Kawamoto 1998–2004 – Hiroyuki Yoshino 2004–2009 – Takeo Fukui since 2009 – Takanobu Ito

Products

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they used market segmentation to focus on a small but profitable market niche. 

The association of distribution strategy, on one hand, is in the acquisition

distribution channels that is extensive, whereas, the promotional strategy, on the

other hand, engages in the virtue from the low cost features of the products. 

Several benefits can be reaped off from the successful implementation of the

Leadership

1948–1973 – Soichiro Honda 1973–1983 – Kiyoshi Kawashima 1983–1990 – Tadashi Kume 1990–1998 – Nobuhiko Kawamoto 1998–2004 – Hiroyuki Yoshino 2004–2009 – Takeo Fukui since 2009 – Takanobu Ito

Products

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2008 Honda Accord (USA spec)

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Page 25: Honda Strategic Venturing

cost leadership strategies.  Among the several benefits that it can bring are the

processing of engineering skills, the design of the products that provides

easeness in the manufacturing process, sustainable accessibility to capital that is

inexpensive, supervision of labour can closely be supervised, tightened control of

the cose and the incentives based on quantitative targets.

Leadership

1948–1973 – Soichiro Honda 1973–1983 – Kiyoshi Kawashima 1983–1990 – Tadashi Kume 1990–1998 – Nobuhiko Kawamoto 1998–2004 – Hiroyuki Yoshino 2004–2009 – Takeo Fukui since 2009 – Takanobu Ito

Products

[edit] AutomobilesFor a list of vehicles, see List of Honda vehicles.

2008 Honda Accord (USA spec)

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Page 26: Honda Strategic Venturing

31. The second named generic strategy comes in the form of differentiation that

pertains the creation of the product that is innovative.  The innovativeness of the

products that will be created would mean that there is a tendency of reduction in

the price elasticity of demand and customers are likely to be brand loyal due to

the fact that customers’ in any sense is willng to spend more provided that they

Leadership

1948–1973 – Soichiro Honda 1973–1983 – Kiyoshi Kawashima 1983–1990 – Tadashi Kume 1990–1998 – Nobuhiko Kawamoto 1998–2004 – Hiroyuki Yoshino 2004–2009 – Takeo Fukui since 2009 – Takanobu Ito

Products

[edit] AutomobilesFor a list of vehicles, see List of Honda vehicles.

2008 Honda Accord (USA spec)

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get a good deal of the products and that customer’s are getting back their

money’s worth. 

32. The last generic strategy to be previewed is the segmentation strategy wherein

target markets are being filtered to come up with a selected and specialized markets.  

Therefore, tailoring the marketing mix to these specialized market enables company to

Leadership

1948–1973 – Soichiro Honda 1973–1983 – Kiyoshi Kawashima 1983–1990 – Tadashi Kume 1990–1998 – Nobuhiko Kawamoto 1998–2004 – Hiroyuki Yoshino 2004–2009 – Takeo Fukui since 2009 – Takanobu Ito

Products

[edit] AutomobilesFor a list of vehicles, see List of Honda vehicles.

2008 Honda Accord (USA spec)

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cater the needs of the selected target market which in turn can gain competitive advantage

such that the demands of the target market are being meet.

33. Despite of the great contribution Porter has made, criticisms rose and challenges

the use of generic strategies claiming they lack specificity, lack flexibility, and are

limiting. For the critics, the application of generic strategies is like trying to get

Leadership

1948–1973 – Soichiro Honda 1973–1983 – Kiyoshi Kawashima 1983–1990 – Tadashi Kume 1990–1998 – Nobuhiko Kawamoto 1998–2004 – Hiroyuki Yoshino 2004–2009 – Takeo Fukui since 2009 – Takanobu Ito

Products

[edit] AutomobilesFor a list of vehicles, see List of Honda vehicles.

2008 Honda Accord (USA spec)

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everything be perfectly fit into a peg but the bottom line is that generic strategies

would not be a perfect fit.   (1993) have modified 's three strategies to describe

three basic "value disciplines" that can create customer value and provide a

competitive advantage. They are operational excellence, product innovation, and

customer intimacy.

Leadership

1948–1973 – Soichiro Honda 1973–1983 – Kiyoshi Kawashima 1983–1990 – Tadashi Kume 1990–1998 – Nobuhiko Kawamoto 1998–2004 – Hiroyuki Yoshino 2004–2009 – Takeo Fukui since 2009 – Takanobu Ito

Products

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34.  

35. Main Part

36.  

37. HONDA

Leadership

1948–1973 – Soichiro Honda 1973–1983 – Kiyoshi Kawashima 1983–1990 – Tadashi Kume 1990–1998 – Nobuhiko Kawamoto 1998–2004 – Hiroyuki Yoshino 2004–2009 – Takeo Fukui since 2009 – Takanobu Ito

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38. The redefinition of motor-cycle market in the United States is a classic case in

corporate strategy.  The penetration of Honda in the United States market was

being marketed under the slogan “You meet the nicest people on a Honda”. 

Honda’s strategies succeeded because the strategy was an archetype of

Japanese penetration on the Western Market (e.g. like that of Shiseido). 

Leadership

1948–1973 – Soichiro Honda 1973–1983 – Kiyoshi Kawashima 1983–1990 – Tadashi Kume 1990–1998 – Nobuhiko Kawamoto 1998–2004 – Hiroyuki Yoshino 2004–2009 – Takeo Fukui since 2009 – Takanobu Ito

Products

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According to  (1975), the aggressive pursuit of domestic volume has established

a low-cost in the expansion overseas.  On the contrary,(1984) asserted from his

interview to Mr. Honda that “Mr Honda was especially confident of the 250 cc and

350 cc machines. The shape of the handlebar on these larger machines looked

like the eyebrows of Buddha, which he felt was a strong selling point.”  Currently,

Leadership

1948–1973 – Soichiro Honda 1973–1983 – Kiyoshi Kawashima 1983–1990 – Tadashi Kume 1990–1998 – Nobuhiko Kawamoto 1998–2004 – Hiroyuki Yoshino 2004–2009 – Takeo Fukui since 2009 – Takanobu Ito

Products

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the continuing commitment of Honda to make innovative automobile that not only

provides consumers with reliable cars but also the manufacturing of automobiles

that cuts the cost of fuel consumption by enhancing fuel efficiency.

39.  

40. Strategic scope and strategic strength

Leadership

1948–1973 – Soichiro Honda 1973–1983 – Kiyoshi Kawashima 1983–1990 – Tadashi Kume 1990–1998 – Nobuhiko Kawamoto 1998–2004 – Hiroyuki Yoshino 2004–2009 – Takeo Fukui since 2009 – Takanobu Ito

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41.  

42.             Honda as being in an automobile manufacturing industry markets to the

people especially into the world’s major busy cities where buying an automobile

is almost a must to keep going and stay away from the fuzz of commuting in the

morning rush and in the late afternoon traffic. At Honda even though they are not

Leadership

1948–1973 – Soichiro Honda 1973–1983 – Kiyoshi Kawashima 1983–1990 – Tadashi Kume 1990–1998 – Nobuhiko Kawamoto 1998–2004 – Hiroyuki Yoshino 2004–2009 – Takeo Fukui since 2009 – Takanobu Ito

Products

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2008 Honda Accord (USA spec)

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the number one in automobile industry, they provide means in which to give

people an alternative by introducing cars that is fuel-efficient in response to the

unpredictable rise of fuel consumption. 

43.  

Leadership

1948–1973 – Soichiro Honda 1973–1983 – Kiyoshi Kawashima 1983–1990 – Tadashi Kume 1990–1998 – Nobuhiko Kawamoto 1998–2004 – Hiroyuki Yoshino 2004–2009 – Takeo Fukui since 2009 – Takanobu Ito

Products

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2008 Honda Accord (USA spec)

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44. The heart of Honda’s strategic strength is the capabilities to produce innovative

yet simple, low-cost products.  Honda’s competitive advantage over the rest of

automotive manufacturers is not the flashy design of automobiles but lies in the

strategic differentiation strategy being employed by Honda especially in the quest

Leadership

1948–1973 – Soichiro Honda 1973–1983 – Kiyoshi Kawashima 1983–1990 – Tadashi Kume 1990–1998 – Nobuhiko Kawamoto 1998–2004 – Hiroyuki Yoshino 2004–2009 – Takeo Fukui since 2009 – Takanobu Ito

Products

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of developing new innovative means to enhance fuel efficiency without the extra

cost.

45.  

46.  

47. Cost leadership strategy

Leadership

1948–1973 – Soichiro Honda 1973–1983 – Kiyoshi Kawashima 1983–1990 – Tadashi Kume 1990–1998 – Nobuhiko Kawamoto 1998–2004 – Hiroyuki Yoshino 2004–2009 – Takeo Fukui since 2009 – Takanobu Ito

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48.  

49. Honda as being founded by Japanese, the value for diversity is prevalent. 

Mirrored from the core of Honda’s philosophy is the principle or respect for the

individual with attached components of trust, initiative and equality that guides

Honda in all of its business operations.  Accordingly,  says, "Action without

Leadership

1948–1973 – Soichiro Honda 1973–1983 – Kiyoshi Kawashima 1983–1990 – Tadashi Kume 1990–1998 – Nobuhiko Kawamoto 1998–2004 – Hiroyuki Yoshino 2004–2009 – Takeo Fukui since 2009 – Takanobu Ito

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philosophy is a lethal weapon; philosophy without action is worthless."  Evidence

from case studies also supports the view that firms of different national origins

will tend to pursue different competitive strategies (1985;  1982). This may reflect

different organizational cultures ( 1980; ,  and  1966), or alternatively, the

formulation of competitive strategy in response to environmental conditions in the

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domestic market, which are then carried over to foreign markets.  In Honda the

recognition of the need to embrace diversity as having a diverse workforce,

diverse dealer body and diverse team of suppliers proves to be as one of their

competitive advantage.  In the dealer aspect, Honda continues to enhance the

number of minority-owned dealers via the dealer development programs.  Even

Leadership

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though minority-owned dealers are considered to be a small time dealings, but in

Honda they believe in the power of small time dealings making it big in the future

that might as well spells profitability to Honda.  In line to the enhancing of the

number of minority-owned dealers, Honda establishes the American Honda

Leadership

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Dealer Investment program aims in lowering financial barriers for qualified dealer

candidates.

50.  

51. Differentiation strategy

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52. The differentiation strategy is not at all easy to maintain since the expenditure of

huge amount of money and resources should be pulled together to make the

differentiation strategy to be effective.  Among the factors that constributes to the

effectiveness of differentiation strategy are design, brand image, reputation,

Leadership

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technology, product features, networks and differentiated customer service that

can barely be imitated.

53. At Honda they are very particular in inventing automobiles that is not harmful to

the environment as part of their goal in making environmentally friendly products

and Honda is being characterized by its simplicity that is evident as the brand

Leadership

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image Honda wanted to project in the market.  Several milestones and

recognition has been awarded to Honda in terms of the organization’s promotion

of protecting the environment.  To name a few recognition that Honda received

as being environment friendly are, the introduction of the first car to pass the

emissions requirement of the Clean Air Act without a catalyst (CVCC Civic

Leadership

1948–1973 – Soichiro Honda 1973–1983 – Kiyoshi Kawashima 1983–1990 – Tadashi Kume 1990–1998 – Nobuhiko Kawamoto 1998–2004 – Hiroyuki Yoshino 2004–2009 – Takeo Fukui since 2009 – Takanobu Ito

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model), development of the first fuel cell electric vehicle in the world, the first

gasoline-powered car sold in California to meet the Super-Ultra-Low Emission

Vehicle standard, Named the cleanest internal-combustion vehicle on earth by

the EPA, the development of a the car Civic GX that runs entirely on natural gas

so it is therefore pollution free vehicle, and the certification from the international

Leadership

1948–1973 – Soichiro Honda 1973–1983 – Kiyoshi Kawashima 1983–1990 – Tadashi Kume 1990–1998 – Nobuhiko Kawamoto 1998–2004 – Hiroyuki Yoshino 2004–2009 – Takeo Fukui since 2009 – Takanobu Ito

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environment management standards ( 14001) to all major Honda plants

worldwide.

54.             The mandate by Mr. Honda “Do Not Imitate" is a challenge being given

especially to the Resource and Development to constantly challenge themselves

in seeking out for new initiatives and to remain as front runners in innovation.  In

Leadership

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2001, Tochigi R&D center was opened as the world’s first indoor all-weather

facility.  Consequently in 2003, an Automotive Safety Research Facility featuring

seven advanced safety testing laboratories.  Proving to the world of the

commitment of Honda to quest for innovations that is a strong and valuable

competitive advantage they have engulf in the organization.

Leadership

1948–1973 – Soichiro Honda 1973–1983 – Kiyoshi Kawashima 1983–1990 – Tadashi Kume 1990–1998 – Nobuhiko Kawamoto 1998–2004 – Hiroyuki Yoshino 2004–2009 – Takeo Fukui since 2009 – Takanobu Ito

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55.  

56. Segmentation strategy

57. Honda’s realization of the full use of segmentation and involved the creation of a

distinctive distribution network and the differentiated products and services

Honda has been offering.  The target market of Honda is the mass-market model

Leadership

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such that they can exhibit its greatest impact on clean air and fuel economy.  The

Power of Dreams embodied by Honda envisions the development of vehicles for

the future while improving the existing technologies.  The introduction of

continued advancement of internal combustion engine technology and new

Leadership

1948–1973 – Soichiro Honda 1973–1983 – Kiyoshi Kawashima 1983–1990 – Tadashi Kume 1990–1998 – Nobuhiko Kawamoto 1998–2004 – Hiroyuki Yoshino 2004–2009 – Takeo Fukui since 2009 – Takanobu Ito

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generation of gasoline engines would provide the world with extremely low

emission levels and increased fuel efficiency.

58. Conclusion

59. The focus of Honda is in the generic strategies of differentiation and cost

leadership strategies.  With great emphasis on the differentiation strategy, has

Leadership

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equipped Honda strong points in what the future has yet to unfold.  The

anticipation of the future will enable them to be very potentially potent to be

emerging as the number one automotive choice in the world since their

continuing efforts in innovating cars that is fuel efficient yet environment friendly. 

Despite in the argument of  (1980) saying that cost leadership and differentiation

Leadership

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are such fundamentally contradictory strategies, requiring such different sets of

resources, that any firm attempting to combine them would wind up "stuck-in-the-

middle" and fail to enjoy superior performance.  However, in support of the

generic strategies being employed in Honda, (1988) argued that sustainable

Leadership

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competitive advantage rests on the successful combination of these two

strategies.

60.  

61.  

62.  

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63. NIKE

64.  

65.  

66. Who in the world did not hear anything about Nike?  Nike as a very prominent

brand in the shoe industry with a check mark as its trademark had started its

Leadership

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operation 33 years ago that is founded by , the legendary University of Oregon

track & field coach, and , a University of Oregon business student and middle-

distance runner under .  Nike caters primarily to the athletes worldwide whose

mission has always been to provide a competitive edge, to help athletes perform

better climbing the inside the athletic mind, feeling every beat of the athletic

Leadership

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heart, flexes, bends, twist and torque every inch of athletic sinew and muscle. It's

not easy, but it's natural for us. We're athletes. From the mission statement of

Nike, the enduring commitment to athletes entails a mission to bring inspiration

and innovation to every athlete in the world.  Similarly  quoted “if you have a

body, you are an athlete.  Moreover, Nike’s total revenue for fiscal year 2005

Leadership

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reported an amount of $13.7 billion as their net revenue, a 12 percent increase

from the fiscal year 2004.

67.  

Strategic scope and strategic strength

68.  

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69.             The strategic scope of Nike is to cater to every athlete and the aspiring

athletes all over the world that will be characterized by innovative features from

the shoes, to apparels and gears.  The market of Nike is very much diverse in

nature yet the market is particularly promising such as the market is not only

Leadership

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limited to athlete but the people from all walks of life who does exercise or just

have fun in playing.

70.  

71.             The strategic strength of Nike is in the innovation they have been creating

for the people especially for the athletes who wants something new to show off

Leadership

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and sports enthusiast who have a fetish for wearing unbelievably innovated

shoes.  Like for example, the product Nike Shox who has a distinct feature that is

capable of shock absorption.

72.  

73. Cost leadership strategy

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74.             Nike as being the number one footwear brand works with the top

suppliers.  An issue that circulates in the contract factories of Nike has been

pervasive and needs to look into. The disclosure of the contract manufacturing

base opens for the prospect to a deeper level of collaboration with Nike’s

stakeholders as a response to the working conditions in manufacturing industry

Leadership

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and for the reason for the said disclosure is to enable brands sharing of

information regarding about compliance performance and duplication efforts

would be minimal.  Nike believed that the creation of mechanisms that enable

corporate responsibility, in which Nike has been struggling, is when the forces of

market enable corporate responsibility to occur in a widespread context.  In the

Leadership

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corporate responsibility report (2005), Nike’s inability to gauge progress in the

organizations goals necessitates them to established plans setting targets as key

objectives for Nike team to pursue for this year (2006)

75.  

76.  

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77. Differentiation strategy

78.  

79. Nike relies more on the differentiation strategy and presumably it is the strategy

where they excel.  Versatility as the strength of Nike goes beyond its basic

function of impact protection such that Nike can shape and tuned to cater the

Leadership

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demands of athletes in a detailed manner.  Needless, to say Nike’s footwear are

being customized to meet the standards of the athletes and the people in

general.  Aside from the innovative features of their footwear, Nike’s apparel has

had a share in the invention of innovative designs and high performance fabrics

they have been using to produce their apparel products.  The FIT technologies

Leadership

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regulates the management of temperature conditions and moisture to help

athletes train and compete in any sort of conditions without affecting athlete’s

performance.  Three FIT technologies are being used in Nike, the dri-fit, thermal

fit and Nike sphere thermal.

80.  

Leadership

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81.             Behind every innovative invention are the brilliance of the man and

woman in the research and development combined with state-of-the-art research

facilities.  In Nike, researchers are being subdivided accordingly to its field of

expertise: these are the biomechanics, the study of human movement and

related forces; the physiology, study of the integration of body’s energy system

Leadership

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and responses to environmental stresses; and sensory/perception, the evaluation

of subjective product attributes.  All of the specialized fields take into account the

possible sources of confounding factors such as gender, skill level, geography

and age.  Given these considerations before taking into account the dynamics of

invention, Nike has been considered the master of innovation in shoe industry.  It

Leadership

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is amazing to note that the careful and meticulous attention to details enables

Nike to produce innovative features in their products that sometimes just gets

people in awe as to how they are able to come up with such products especially

to athletes.

82.  

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83.  

84. Segmentation strategy

85.  

86.             Nike has penetrated the market and was able to focus on the different

facets of footwear.  In every stores and boutique, every Nike products are being

Leadership

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sort out in the shelves according to it’s shall I say, function.  For example, the

labeling of the shoes as being for basketball, tennis, cross-training or running,

that enables customers to know exactly what they are looking for.  In the

segmentation strategy, they have been very specific to their target market,

whether for boys, girls, children, men and women. 

Leadership

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87.  

88. Conclusion

89. Nike’s total sales in the United States for the fiscal year 2004, accounted for 23

percent of total sales, whereas the non-U.S total sales accounted for

approximately 13 percent, meaning, Nike may have done well in the United

Leadership

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States market since Nike is from the United States and American people are

fanatic with sports and has a high purchasing power.  Or perhaps, the reason lies

in the defect in the cost leadership strategy which may have had affected Nike in

terms of sale.  Price is out of contention in this matter, according to  (2000) found

that price might be ignored as long as the product-customer fit is enhanced. U.S.

Leadership

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firms have been found to place greater emphasis on product quality, and less on

new product development, promotional expenditure or pricing in overseas

markets (,  1987; 1983;  1983).

90.  

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91. The reputation of Nike in the market is unquestionable.  Nike’s dominant generic

strategy is in the differentiation strategy wherein the other two generic strategies

may not be a prioritized strategy for Nike.  In support if Nike in the use of only

one generic strategy, an experiment by  (1984) found that firms employing only

Leadership

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one of 's generic strategies outperformed firms pursuing elements of more than

one strategy

92.Read more: http://ivythesis.typepad.com/term_paper_topics/2009/05/organizational-strategic-plan.html#ixzz1Zm1MceON

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