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!ISION

B!o be the *rst preferen"e at every level of "ar lovers, and be the marketleader

MISSION

A dynami" 'rowth oriented "ompany throu'h e6"ellen"e in 2uality,dedi"ation to provide 'reater fuel e/"ien"y at "ompetitive pri"es, and

servi"e ensurin' attra"tive returns to e2uity holders, rewardin' asso"iatesa""ordin' to their ability and performan"e, fosterin' a network of en'ineersand resear"hers ensuin' uni2ue "ontribution to the development of theindustry, "ustomer safety, satisfa"tion and prote"tion of the environment byprodu"in' emission friendly 'reen produ"ts as a 'ood "orporate "iti?enful*llin' its so"ial responsibilities in all respe"ts

COMPETITORS

"# PA$ SU%U$I

4n pursuan"e of the terms and "onditions of the Joint @enture A'reemente6e"uted between 0u?uki Motor Corporation of Japan 80MC9 and PakistanAutomobile Corporation 8PAC.9, Pak 0u?uki Motor Company Limited 8P0MCL9was in"orporated as a publi" limited "ompany in Au'ust $%


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foundation stone layin' "eremony of the "ompanyDs 'reen *eld automobileplant at Ein Fasim was performed by the then prime Minister of Pakistan inearly $%s produ"tion fa"ilities are lo"ated at

Port Ein Fasim 4ndustrial one near 3ara"hi in an area measurin' over $;:a"res 4ndus Motor CompanyDs plant is the only manufa"turin' site in theworld where both !oyota and 7aihatsu brands are bein' manufa"turedHeavy investment was made to build its produ"tion fa"ilities based on stateof art te"hnolo'ies !o ensure hi'hest level of produ"tivity world renowned

!oyota Produ"tion 0ystems are implemented 4MC>s Produ"t line in"ludes variants of the newly introdu"ed !oyota Corolla, !oyota Hilu6 0in'le Cabin


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-6& and - versions of 7aihatsu Cuore =e also have a wide ran'e of imported vehi"les

T)* E+t*rnal A * ,*nt:

!he e6ternal audit is to develop a *nite lists of opportunities that "ouldbene*t a *rm and threats that should be avoided 56ternal for"es "an bedivided into *ve broad "ate'oriesI

5"onomi" for"es

0o"ial, "ultural, demo'raphi" and environmental for"es

Politi"al for"es

!e"hnolo'i"al for"es

Competitive for"es

Econo,-c .orc* K

.verall e"onomi" "onditions are not very sound !he "ountry risk of Pakistan'oes to ( whi"h is alarmin' situation for Pakistan 7ue to mistrust in thePakistan environment the forei'n dire"t investment has been de"linedPakistan, an impoverished and underdeveloped "ountry, has su+ered fromde"ades of internal politi"al disputes and low levels of forei'n investmentEetween &;;$ ;), however, poverty levels de"reased by $; , as 4slamabad

steadily raised development spendin' Eetween &;;- ;), G7P 'rowth in the: < ran'e was spurred by 'ains in the industrial and servi"e se"tors despite severe ele"tri"ity shortfalls but 'rowth slowed in &;;< ;% andunemployment rose

/lo0al cr- - and Pa1- tan:

a9 Pakistan did not fa"e a major setba"k from the 'lobal "risis

b9 !he e"onomi" hardship by the "ountry has mostly been the result of domesti" issues internal strife, politi"al instability and poor 'overnan"e hasslowed down an otherwise a viable e"onomy

"9 .verall e"onomi" a"tivity weakened despite 'rowth in a'ri"ulture, whilede"linin' imports and slowin' domesti" demand resulted in lower ta6revenue

Pakistan's Economic growth:


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!he on'oin' 'lobal e"onomi" "risis, ne'ative se"urity developments and"ontinued power shorta'es slowed PakistanDs real G7P 'rowth to & for&;;< ;% "ompared to : < a"hieved in the prior year

!he nemployment rate is 'oin' up and up from $( in &;;< to $: & in

&;;% with the in"rease of level of poverty that is redu"in' the buyin' powerof the

COMSATS In t-tut* o. In.or,at-on T*c)nolog23 4a)or* Ca,5u #

-

C)a5t*r 6 &

E7TERNA4 AUDIT OF THE COMPANY

people that is threat for Honda "ars !he G7P 'rowth rate for the year &;;< ;% initially proje"ted at : : per"enthas now been revised downward to & : per"ent "ompared to : < per"ent of last year

!he major pressure in the e"onomy has stemmed from inNation

!he 0EP has proje"ted inNation to slow down in the *nal 2uarter of 1 ;< ;%Controlled inNation may usher in lower interest rate and improved li2uidity,so ne"essary for 'rowth of industry

4nNation remains the top "on"ern amon' the publi", jumpin' from ) ) in&;;) to &; < in &;;


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5ased out politi"al situation in the "ountry will help in an improvement inbusiness

environment

Financial position of Pakistan: !he sto"k market has e6hibited a 'rowth of ( per"ent post Mar"h $

1orei'n e6"han'e reserves have "rossed 0 O$$ billion !he "ommoditypri"es are reNe"tive of an inherent demand in the e"onomy A bumper wheat"rop is bein' proje"ted and it will provide a boost to demand

!he market value of sto"ks de"reased from ); & billion in &;;< to O&( -%billion &;;< O); & billion

!he Pakistani rupee has depre"iated sin"e &;;< as a result of politi"al and

e"onomi" instability from s ); - in &;;< to s


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automobile manufa"turers that they will in"rease the depre"iation allowan"eon the used imported vehi"les in the near future

d9 !he 'overnment has made an attempt to "reate a "ompetitiveenvironment in the automobile industry, but this "ompetition 'ives rise to

de"linin' of sales that the lo"al industry has su+ered before and is a 'reatthreat for Honda

Liberal Policies:

e9 A""ordin' to the analysts, the "urrent poli"ies on used "ars in Pakistan arestill e6tremely liberal when "ompared to 4ndia, !hailand and other "ountriesand are often misused by importers under transfer of ba''a'e s"heme

Ta imposition and d!ties:

f9 !he imposition of additional levies and ta6es in the 1ederal Eud'et &;;AR/AINI/ POWER OF SUPP4IERS:

Honda motors almost produ"es %< of "ar in Pakistan but Most of the awmaterial is imported throu'h !oyota Japan so 0uppliers is the parent"ompany that is why importin' material is not a bi' issue for Honda !heautomotive industry is a dynami" pla"e =ith the for"es above at play, and

with history as a 'uide, it is safe to say that the automotive industry will"ontinue to "han'e, evolve, and adapt

E+t*rnal Factor E8aluat-on Matr-+:


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An e6ternal fa"tor evaluation matri6 allows the strate'ists to summari?e andevaluate e"onomi"al, so"ial, "ultural, demo'raphi", environmental, politi"al,'overnmental, le'al, te"hnolo'i"al, and "ompetitive information !he threatsand opportunities of Honda Company have been identi*ed in the P50!analysis and the ratin's of the fa"tors 8$ -9 have been done from the brainstormin' and the fa"ts and *'ures that have a+e"ted the "ompany 1ollowin'is the 515 matri6K 1rom the above matri6 "al"ulation, we "an see that thetotal wei'hted s"ore for Honda Motors is & -% whi"h is ; ;$ points lower than& :; i e the midpoint a and is below the avera'e !his

E+t*rnal .actor Wg)t Honda Atla

O55ortun-t-* Rat-ng Wgtd#Scor*

$ PeopleDs awareness about Global =armin' ; ;: & ; $;

& Customer desire for hybrid and fuel e/"ient vehi"les ; ;< ( ; &-

( 4n"rease in te"hnolo'y in automobiles for"es "ustomers to return to dealerfor servi"e ; $ - ; -;

- 4ntrodu"tion of ethanol fuel in Pakistan ; ;& $ ; ;&

: 4n"rease in demand of small vehi"les ; ;: ( ; $:

T)r*at

$ e"ession in the e"onomy ; ;: $ ; ;:

& =!. 8=orld trade .rder9 openin' lo"al markets for 'lobal "ompetition; ;& $ ; ;&

( 5ntry of re"onditions "ars ; $( & ; &

- Politi"al instability ; ;: $ ; ;:

: !i'htenin' monitorin' Poli"y ; ; & ; $& 5ner'y "rises ; $ ( ; (;

) 7epre"iation of rupee a'ainst dollar ; $ - ; -;

< 4n"rease in Petroleum and steel pri"es ; ;% & ; $RAND MODE4 PRICES

C @ & - Litre sK :,&%%,;;;

C4@4C 4 @5!4C MA# AL sK $, $%,;;;


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4 @5!4C A !.MA!4C sK $,)(%,;;;

@!4 . 4AL MA# AL sK $,)%-,;;;

@!4 . 4AL A !.MA!4C sK $,< %,;;;

ACC. 7 4 @!5C sK :, %%,;;;

C4! MA# AL sK $,&-%,;;;

A !.MA!4C sK $,()%,;;;

Pro,ot-on:

Honda Atlas 8Pakistan9 always strives to 'ive outstandin' servi"e to valued"ustomers 4n addition to providin' re'ular servi"e to "ustomers, H.#7A alsore'ularly "ondu"ts 0ervi"e Campai'ns, to fa"ilitate "ustomer>s need forservi"e !his has 'iven to "ustomersD absolute "on*den"e in Honda "arsHonda also parti"ipates in promotion of that produ"t Honda Atlas has arapidly and 2ui"kly promote produ"ts more than its "ompetitors

Plac* P)2 -cal D- tr-0ut-on:

Honda Atlas #etwork of dealership has e6panded and now "ompany hastwenty one (0 80ales, 0ervi"e and 0pare Parts9 and thirty &0 80ervi"e and0pare Parts9 Pit shops network in all major "ities of Pakistan

4OCATION S DEA4ERS &S DEA4ERS3A ACH4 -

H 75 AEA7 $

LAH. 5 - )

40LAMAEA7 $ $

A=ALP4#74 $ &

M L!A# $ $

1A40ALAEA7 & &

0A G.7HA $ $

G J A#=ALA $


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04AL3.! $

M4 P $

P50HA=A $

AEE.!!AEA7 $

EAHA=ALP $

E 5=ALA $

A A7 3A0HM4 $

G J A! $

MA 7A# $

.3A A $

AH4M A 3HA# $

0AH4=AL $

0 33 $

@5HA 4 $

!otal &$ (;

Mar1*t-ng O5*rat-on Funct-on o. Mar1*t-ng D*5art,*nt:

Marketin' operation fun"tions is the very essential tool and it is e6"ellentessen"e of any business same as this strate'y imply by Honda AtlasCompany to its authori?ed 7ealer 4t is dealin' with brand loyalty of Hondaprodu"ts my "on"ern e6ists between dealers and "ustomers Honda Atlasalso depends on (0 but also fa"ilitatin' with separately &0 as well 80ervi"eand 0pare Parts9 !his o+er of fa"ilities Honda Atlas Motor "ompares to the

!otal Fuality Mana'ement style of Honda Atlas 4tself !hese (0 and &0 always

monitor by Honda Atlas itself that whatDs 'oin' on in whi"h 7ire"tionU !hese(0 and &s has been fa"ilitatin' throu'h 7ealers Let we dis"uss these threeelements simultaneouslyK

Sal* :

!he HACPLDs 0ales 7eals by its authori?ed 7ealers !he dealers en'a'ed inprovidin' fa"ilities the "ustomer to buy Honda Erand8s9 Honda Atlas


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Company has 'iven dealership authority appro6imately si6teen 7ealers8"ars9 all over Pakistan All of the sales strate'ies followed by Honda Atlas4tself and it are dire"tly involve and time by time Honda Atlas keep atta"hedwith ea"h se"tor, do analysis the sales, performan"e of the dealers mostimportantly after sales, "ustomer satisfa"tion report 0ales fa"ilities part of Honda Atlas is to fa"ilitate its loyal "ustomer and over"ome "ustomerDsambi'uity, buyin' "onNi"t and provide them ma6imum information beforepur"hase Honda Atlas is also very "ons"ious in sales as well as Customers0atisfa"tion All the authori?ed dealerships in Pakistan are a sour"e of "ustomer satisfa"tion !he after sales are supported by the imma"ulateservi"e and the availability of spares at "ompetitive pri"es for every "ar sold

!o fa"ilitate the "ustomers for any assistan"e they re2uire, Honda Atlas has aseparate department, "alled Customer elations, at the head o/"e !hisdepartment is supported by the subse2uent Customer elations ./"ers at

all dealerships !he purpose of Customer elations 7epartment andCustomer elations ./"ers is to enable our "ustomers in 'ettin' any sort of help re2uired by them

S*r8-c*

!he produ"t sold is not means that "lose the window for "ustomer now, it isbeyond that further after sales "ustomer has lar'ely en'a'ed to deal inservi"e and 0pare parts aspe"t HACPL is a "ustomer servi"e "ons"ious"ompany, for whi"h it is always lookin' for avenues to develop further

relations with the "ustomers who have already pur"hased the Produ"t HondaAtlas "onsiders pur"hase of any produ"t as the be'innin' of relations with"ustomers !o prolon' this relationship and en"oura'e the "ustomers tokeeps on "omin' to the dealers, providin' "ustomer servi"e the reason forthis fa"ility is to stress on the importan"e of periodi" maintenan"e Periodi"maintenan"e is essential for every e6istin' if this is performed re'ularly asper the maintenan"e s"hedule the "ar is trouble free and life of "ar in"reasesby many years

1or these free servi"es the labor is not "har'ed, where as the "ustomer has

to pay for only the "onsumable like en'ine oil, oil *lter, et" HACPL isprovidin' re'ular trainin's to the dealers> te"hni"ians !he trainin's "over allaspe"ts of the "ars and related Produ"ts in"ludin' the periodi" maintenan"e,dia'nosti"s, trouble shootin' and repairs a""ordin' to H.#7A standards1rom this we want to fa"ilitate the "ustomers in maintainin' their "ars in topmost "ondition and enjoyin' the "omfort and performan"e of the lu6uryvehi"les they own 4t is our endeavor to have uniform servi"e standards


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made available at all dealerships in a""ordan"e with the international Hondastandards =e "onsider the properly maintained vehi"les not only to be asour"e of satisfa"tion to our "ustomersI they also in"rease the sale value of their "ar

S5ar* Part :

!he 0pare parts element is heavily "on"ern and involved with brand loyaltyof Honda "ars be"ause "ost of spare parts also "onsider when "ustomer wantto buy the "ar, "ustomers are also pri"e "ons"ious, availability of spare partsand as well as 2uality of spare parts Honda spare parts are e6pensivebe"ause they have to import those form Malaysia

Honda Atlas always follow those strate'ies whi"h they "an 'ain "ustomermost attention to its brands Honda Atlas always make possible to be'enuine and look 'enuine Honda attra"t its "ustomer in under thestatement that BEuy Honda 'enuine parts from Honda dealers and enjoy month>s Honda =arranty, the Honda warranty "an vary produ"t to produ"tand "ontribute to the "ountryDs e"onomy and enjoy the satisfa"tion of usin'$;; 'enuine Honda Parts Eut if "ustomers buy the parts from openmarketI most probably is that "ustomer may be buyin' smu''led parts andthus "ommittin' a moral "rime and robbin' your "ountry from pre"iousrevenue, "ustomer may unable to "laim but if "ustomer buy from Honda

authori?ed 7ealer so the part will be $;; 'enuine, "ustomer has no need tobuy from open market, the trust between "ustomer and Honda 7ealersbe"ome lon' lastin' et" 4t is the Honda AtlasD aim to be #o $ in "ustomersatisfa"tion in all three 0, 0ales, 0ervi"e and 0pare Parts and two 0 in thesame time

PRODUCTIONS OPERATIONS:

Proc* D* -gn:

Honda Atlas Cars 8Pakistan Ltd has a separate produ"tion department whi"his headed by @i"e President 8Produ"tion9 A Japanese person is "urrentlyworkin' on this seat

!he produ"tion department has a number of se"tions su"h asK

@endor 0e"tion

5n'ine 0e"tion


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=eldin' 0e"tion

Maintenan"e 0e"tion

Paint

@ehi"le 2uality "ontrol

!hese alon' with some other se"tions are arran'ed in four 'roups, ea"h oneheaded by a Gm 1or 56ample, there is one GM for weldin', paint andmaintenan"e

Plant Ca5ac-t2

Currently the plant has the "apa"ity of (: vehi"les per day whi"h is lowerthan that of !oyota As for as the produ"tion level is "on"erned, it varies from

time to time 4t was $: "ars per day when 4 visited the fa"tory !his showsthat the plant is bein' underutili?ed !here may be several reasons for thisunder utili?ation su"h asK

=eak e"onomi" "ondition of the "ountry

Problems with "otton "rop

Hi'h pri"e of Honda Cars

7e"rease in pur"hase of "ars by lar'e "ompanies

Presen"e of !oyota

7e"rease in the pur"hasin' power of potential "ustomers

Mac)-n*r2:

A brief list of ma"hinery used in HACPL is 'iven belowK

Eoilers

Compressors

=ater treatment plant

.vens 8for ba"kin' the body of "ars9

0pot weldin' 'uns

!wo post lifts


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shield, et" !he pro"edures at assembly line "an be understood by *'uresmentioned earlier

- After passin' throu'h assembly line, the "ar moves to Rvehi"le 2ualitydepartmentR Here, di+erent tests are applied Currently, HACPL is usin'

three FA5s 8Fuality Assuran"e 52uipment9 whi"h are mentioned belowK

RG 0=A!R 8 Geometri"al 0tati" =heel Ali'nment tester9 for ali'nment

RE 0 testorR for testin' breakin' for"e and speed meter

R0 0 testorR for testin' side slipK

After applyin' these test, the "ar is driven and a $ km Rtest "ourseR Here thenoise and performan"e of "ar a di+erent road "onditions are tested 1inally, aRshower testR is applied to *nd leaka'es if any

: 4n this *nal sta'e, pre delivery inspe"tion 8P749 is made and a sti"ker isatta"hed #ow, the "ar is ready for shipment

Bual-t2 Control

A lot of importan"e is 'iven to B2uality "ontrolR in HACPL !he personal of HACPL is hi'hly 2uali*ed in this re'ard =hen pur"hase material arrives,thorou'h "he"kin' of that material is made 4f any de*"ien"y is found then itis reported 4f the de*"ien"ies are beyond the a""eptable level then thematerial is returned to supplier a""ordin' to terms S "onditions of the"ontra"t However, the "han"es of su"h happenin's are very less be"auseHACPL has very ti'ht pur"hasin' poli"y and it has no "ompromise on 2uality0imilarly, the *nished produ"t is tested before deliverin' it to the "ustomersin order to assure the 2uality standards .n the whole, the 2uality "ontrol T2uality assuran"e personnel are "ontinuously en'a'ed in improvin' 2ualityto need the re2uirements of ea"h "ustomer individually and the market as awhole HACPL is su""essfully usin' R3ai?enR system for 2uality "ontrol5mployees are en"oura'ed to improve 2uality and redu"e "ost 5very month,about &; &: pri?es are 'iven on showin' 'ood performan"e HACPL is 40.

%;;& "erti*ed 4t was the winner of REest Fuality Award for AsiaR in $%% ,$%%) S $%%

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