Honda Cultural Analysis

honda

Background

  • 1948 – Soichiro Honda & Mr. Takeo Fujisana started piston ring factory
  • 1949 – Built the first motorcycle
  • 1959– American Honda Motor Co., Inc., was established with a small motorcycle store in Los Angeles.
  • 1970– Honda introduced its first car, the N600 Sedan, to the United States.
  • 1976– First Gold Wing motorcycle created whole new category of touring motorcycles
  • 1979– production began at the Honda Motorcycle Plant in Marysville, Ohio.
  • 1982– a new auto plant in Marysville, Ohio, began producing the Accord, making Honda the first Japanese automobile company to manufacture in the U.S.
  • 1985– Honda began production at an engine plant in Anna, Ohio, to manufacture both motorcycle and automobile engines.
  • 1988– the first American-made Accord was exported to Japan.
  • 1989– Honda began production at its new automobile plant in East Liberty, Ohio, where the Civic Sedan and Coupe would be manufactured.
  • 1991– Honda began exporting the Accord Wagon to Europe and Japan. It was designed, engineered and produced exclusively in the U.S.
  • 1994– Honda exported over 100,000 vehicles from the U.S. to 36 countries.
  • 1995– Honda celebrated its 25th anniversary of selling cars in America, as well as the sale of its 10-millionth car in America.

Leadership

  • HIGH LEVELS OF PERSISTENCE
  • OVERCAME SIGNIFICANT OBSTACLES
  • ATTRACTED DEDICATED PEOPLE
  • INFLUENCED PEOPLE TO ACHIEVE GOALS

  • 1948 – 1978: Mr. Honda
  • 1978 – present: Internal Promotions
  • Current CEO: Nobuhiko Kawamoto

 

Core Ideology

  • STATEMENTS OF IDEOLOGY
  • HISTORICAL CONTINUITY OF IDEOLOGY
  • IDEOLOGY BEYOND PROFITS
  • CONSISTENCY BETWEEN IDEOLOGY AND ACTIONS

  • Philosophy based
  • Mission: Behind our name lies a philosophy of maintaining an international viewpoint, and remaining dedicated to supplying products of the highest efficiency yet at a reasonable price for worldwide customer satisfaction.
  • Safety
  • Quality
  • Productivity
  • Respect for the individual – our customers are our business associates and members of society
  • United Way
  • No nepotism – desire is to not play favorites – to spread out the benefits of “good” job
  • 3 joys: Buying, selling, and producing
  • Racing Spirit: simplicity, concentration, and speed
  • You build quality and people will buy it.

BHAGS

  • USE OF BHAGS
  • AUDACITY OF BHAGS
  • HISTORICAL PATTERN OF BHAGS

  • Isle of Man
  • 1st US production(1979)
  • Racing

Cultism

  • INDOCTRINATION
  • TIGHTNESS OF FIT
  • ELITISM

  • Racing Spirit: cleanliness, Orderly, On Time, 1st to finish line
  • White Uniforms
  • Promote from within
  • In house training
  • New ideas come from associates and supervisors

 

Purposeful Evolution

  • CONSCIOUS USE OF EVOLUTIONARY PROGRESS
  • OPERATIONAL AUTONOMY TO STIMULATE AND ENABLE VARIATION
  • OTHER MECHANISMS TO STIMULATE AND ENABLE VARIATION AND SELECTION

  • Piston Manufacturer
  • Attaching engines to bikes
  • Motorcycles and power products
  • Cars
  • Always concentrating on improving engines and other ways to use engines
  • Innovator in engine technology
  • Exceeding emission standards; no other manufacturer has followed Honda here.

 

Management Continuity

  • INTERNAL VERSUS EXTERNAL CHIEF EXECUTIVES
  • NO POST-HEROIC-LEADER VACUUM OR SAVIOR SYNDROME
  • FORMAL MANAGEMENT DEVELOPMENT PROGRAMS AND MECHANISMS
  • CAREFUL SUCCESSION PLANNING AND CEO SELECTION MECHANISMS

  • Continuous
  • Internal Promotions
  • No external
  • Honda died; philosophy continued
  • Mgmt. Training: OJT and AIP
  • Succession Planning

 

Self-Improvement

  • LONG-TERM INVESTMENTS(PP&E, R&D, EARNINGS, REINVESTMENTS)
  • INVESTMENT IN HUMAN CAPABILITIES: RECRUITING, TRAINING, & DEVELOPMENT
  • EARLY ADOPTION OF NEW TECHNOLOGIES, METHODS, PROCESSES
  • MECHANISMS TO STIMULATE IMPROVEMENT

  • Long term investments; PP&E
  • RI earnings: Div., PO rate
  • Mfg expansion into South Carolina
  • R & D – automatic transmission and ABS (change before change is demanded)
  • Innovator of new management processes

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