Honda: SWOT and PESTEL

Honda SWOT and PESTELIntroduction of billet EnvironmentBusiness Environment is soulfulness and nerve that exist outside the personal credit line and have influence direct and indirect to the business.Business Environment refers to all those internal and outer performers which impact the execution or performance of a firm and its decision making particularly st tempogies in the organisations.According to Gerald BellAn organization external purlieu consists of those things outside an organization such as customers, competitors, government units, suppliers, financial firms and labour pools that be relevant to an organizations operationsThus, it can be said that environment as the set of external factors such as the economic factors, social factors, and government factors legal factors, political factors, which are uncontrollable in nature and affects the business decisions of organisation or familiarity.Types of Business EnvironmentThe business environment are divided into tw o ways.Micro EnvironmentMacro EnvironmentMICRO ENVIRONMENTThe micro environment of business consists of the forces in the companys environment that affects the performance of the company. These forces are more closely linked with the business than the macro factors.According to Philip KotlerThe micro environment consists of the actors in the companys immediate environment that affects the performance of the company. These include the suppliers, marketing intermediaries, competitors, customers and the public.Micro environment factors are colligateSuppliersCompetitorsPublicLabourFinanciersCustomersMacro environmentThe macro environment of business includes activities which are uncontrollable and need proper attention on the part of a business enterprise.According to Hill and Jones The macro environment consists of the broader economic social, political, legal and scientific setting within which the industry and the company are placed.Macro environment factors are relatedPolitical fa ctorEconomical factorSocial factorTechnological factorEnvironmental factorLegal factorEnvironmental factors internal to the firm assort SWOT as strengths and weaknesses, and external firm classified as opportunities or threats. Such an analysis of the strategic environment is referred to as a SWOT analysis. It is provides information that is helpful in firms resources and capabilities to the environment in which it lasts. As such, it is helpful in strategy formulation and selection.Introduction of Company champion Honda labours Ltd. is an Indian manufacturer of motorcycles and scooters. paladin Honda is a joint Venture that began in 1984 among the paladin Group of India and Honda From Japan. It has been the worlds leading manufacturer of 2-wheeled motorized vehicles since 2001.During the 80s, grinder Honda became the first company in India to prove that it was promising to drive a vehicle without polluting the roads. The company introduced newfangled age group motorcycles t hat set industry benchmarks for fuel saving and low emission. A legendary Fill it Shut it Forget it campaign captured the humor of commuters across India, and mavin Honda exchange one thousand millions of bikes on the commitment of better mileage. Hero Honda has developed at double digits since foundation and today, every second motorcycle change in the country is a Hero Honda. Every 30 seconds, someone in India buys Hero Hondas top -selling motorcycle greatness. This celebratory season, the company sold half(prenominal) a million two wheelers in a single month-a feat supreme in global automotive history.Hero Honda has a massive meshing of sales and service network now over 3000 customer touch points. These touch points cover of dealerships, service stations and spare parts stockiest and authorized representatives of dealers which are located across different places.Hero Honda has a proper value system and hence it cares for its relationship with its customers. It has a u nique CRM initiative i.e. Hero Honda flip professional persongram which is one of the key programs of this kind in the world. The program has not only helped Hero Honda understand its customers and deliver value at different wrong points, but has also created a reliable society of brand ambassadors.VisionThe Hero Honda story began with a simple vision the vision of a transportable and an empowered India, powered by Hero Honda. This vision was driven by Hero Hondas commitment to customer, quality and excellence, and while doing so, maintaining the heightsest values of principles and societal responsibilities and they are believes that the scurrying way to turn that dream into a reality is by outstanding focused on that vision.MissionHero Hondas mission is to effort for synergy amidst technology, human resources and systems, to produce products and services that get together the performance, price and quality aspiration of its customers. At the same time maintain the mellowest standards of principles and social responsibilities.StrategyHero Hondas key policy has been driven by innovation in every field of activity building a strong product portfolio across categories, exploring new markets, aggressively expanding the network and continuing to invest in brand building activities.ManufacturingHero Honda bikes are manufactured across globally manufacturing facilities. Two of these are found at Gurgaon and Dharuhera which are located in the state of Haryana in northern India.TechnologyIn 1980s Hero Honda company pioneered the introduction of fuel-efficient, environment palsy-walsy four-stroke motorcycles in the country. Today, Hero Honda continues to be technology pioneer. It became the first company to launch the Fuel Injection (FI) technology in Indian motorcycles, with the launch of the Glamour FI in June 2006.ProductsHero Hondas product series includes variety of motorcycles that have set the industry standards across all the market segments. The comp any also started manufacturing scooter in 2006. Hero Honda offers large no. of products to vast variety of requirements across all the segments.Key milestone of HERO HONDAYear Event1983 Joint partnership Agreement with Honda Motor Co. Ltd. Japan.1984 Hero Honda Motors Ltd. Incorporated.1985 First motorcycle CD blow rolled out.1987 100,000th motorcycle produced.1989 crude motorcycle model Sleek introduced.1991 New model CD 100 SS introduced.500,000th motorcycle produced.1994 New motorcycle model Splendor introduced and1,000,000th motorcycle produced.1999 New motorcycle model CBZ introduced.2000 4,000,000th motorcycle produced.Splendor stated World No. 1 largest selling model.Hero Honda Passport Programme CRM Programme launched2001 New motorcycle model Passion introduced.One million productions in one year.2002 New motorcycle models -Ambition and Dawn introduce.2003 Become the first Indian Company to cross the growing 7 million sales andSplendor has emerged as the Worlds lar gest selling model for the leashcalendar year in a rank (2000, 2001, 2002)New model Karizma introduced.2004 Hero Honda became the World No. 1 Company for the third consecutive year.2005 Hero Honda is the World No. 1 for the 4th year in a row.2006 Hero Honda is the World No. 1 for the 5th year in a row15 million production milestone graspd.2007 Hero Honda is the World No. 1 for the 6th year in a rowNew Splendor NXG launched.New Passion Plus launched.New model Hunk launched.20 million production milestone achieved.2008 New model Passion Pro launched.New CBZ Xtreme launched.25 million production milestone achieved.CD Deluxe lauched with power start feature.New Glamour launched.2009 Splendor completed 11 million production marker.New model Karizma ZMR launched.Silver jubilee celebrations.Hero Honda Business Environment(P)olitical FactorsThese refer to government policy such as the degree of intervention in the economy. Political decisions can impact on many critical areas for busine ss such as the knowledge of the workforce, the health of and the quality of the infra bodily structure of the economy, such asCustomer protection laws These laws are designed to protect customers against unfair practices such as confusing descriptions of the product related auto mobile.Opposition laws These are aimed at protecting small firms against bullying by larger firms and ensuring customers are not exploited by firms with monopoly power.Employment or labour laws These cover areas such as discharge, working hours and minimum wages.Health and safety These laws are aimed at ensure the workplace is as safe as is reasonably practical. They face issues such as training, reporting accidents and the appropriate provision of safety equipment.(E)conomic factorsEconomic Environment refers what is happening within the economy, for example economic growth, interest rate, exchange rate, inflation rate, demand, wages rate etc.Marketers need to consider the trading economy in short term and long term. Economic factors have major(ip) impacts on how business operate and how to they make decisions.Hero Honda has been strongly committed not only to environmental management programmes but also express the increasingly inseparable balance between the economic concerns and the environmental and social issues faced by a business. A business must not grow at the expense of mankind and mans future but rather must provide mankind.(S)ocial factorsSocial factors include the demographic and cultural aspects of the external macro environment. These factors affect customer needs and the size of viable markets. Changes in social trends can contact on the demand for a firms products and the availability and willingness of individuals to work. Culture is the set of morals and attitudes that are approved by a group of people and transferred from one generation to an different. Social factors include health awareness, population rate, age, importance on safety. Hero Honda auto mobile cha nge motley management strategies use different strategies related age, gender, categories in society (income of society).Hero Honda has been set up on 40 acres of land along the Delhi-Jaipur Highway. The Centre-complete with wide approach roads, clean water, and education facilities for both adults and children-now nurtures a vibrant, educated and healthy community.Hero Honda taken up by the Foundation includesRaman Munjal Memorial HospitalRaman Munjal Sports abstruseVocational Training CentreAdult Literacy MissionMarriages of underprivileged girlsRural Health Care We must do something for the society from whose land we generate our prosperity.A quote from Chairman of Hero Honda Motors Pvt.Ltd.(T)echnological factorsTechnological factors include environmental and natural aspects, such as Research Development activity, technology incentive. Technology has played a essential role in developing the transportation system. Technology has also positively affected the economic status of some countries. It is generally practical that the countries employing a high level technology is a well advanced state. It has increased productivity and has contributed actually in producing more quantity with quality. Some benefits of technology in production process areReducing the record wastage.fewer waiting time.Decreased over production. -Reduces avoidable activities of employees.Hero Honda committed at all levels to achieve high quality in anything they do, mainly in their products and services which will meet and exceed customers growing aspiration through-Innovation in products processes and services.Continuous betterment in our total quality management systems.Teamwork and responsibility.(E)nvironmental FactorsEnvironmental factors include the weather and climate change. Changes in temperature can impact on many industries including agriculture, tourism and insurance. With major climate changes happening due to global warming and with larger environmental awareness thi s external factor is becoming a major issue for firms to consider.Hero Honda environmental awareness of our employees and dealers , while promoting their involvement in ensuring noise environmental management. Institutionalise resource conservation, in particular, in the areas of oil, water, electrical energy, paints and chemicals. fulfil with all applicable environmental legislation and also controlling their environmental discharges.(L)egal Environment factorMarketing decision is affected by developments in legal environment. This environment is related of different types laws, government policies. Sometimes these laws also create new opportunities for business. (Kotler, p 2003).Legal environment refers to what is happening with changes to legislation. Legal Environment impact resources, import export, taxation, job etc. It is reflect the policy framework and the move towards of the Governmental structure of the country and ensure that every company is performance as per the leg islative structure of the country.SWOT analysis of Hero Honda(S)trengthsSales IncreaseHero Honda experienced great growth throughout its early days. By 2002 Hero Group had sold 86 million bicycles producing 16000 bicycles a day. Today Hero Honda has many different models of motorcycles available. It holds the most popular bike in the world by sales for Its Splendor model in last many years.b) Fuel efficiencyOver all fuel consumption by its products is less in compare to other brands product. Hero Honda able to give better mileage. Because of this Hero Honda splendor has magical sales record and the reason of mileage.c) Service Hero Honda offers free services on all their two-wheelers. Customer avail all these service within the time period or kilo metre range.d) High financial performanceThe Hero Honda financial information shows that it has strong financial background in terms of sales, pull ahead and assets. Honda Motors Ltd. the worlds largest two-wheeler manufacturer, today rep orted 31% per cent growth in profit after tax at Rs 275 crore for the third quarter October-December of financial year 2007-08.(W)eaknessesa) High maintenanceSome of the products of hero Honda homogeneous Karizma, CBZ, Hunk require high maintenance.Less promotion and Lack of recycling scrapThe promotions and of Hero Honda are very less to its competitors and they have problem of recycling scrap.c) Labour relationsIn Hero Honda Company there is no labour organized and family member of employees. The majority of the production workers, who are hired through contractors, these benefits are out of reach.(O)pportunitiesa) inviolable will of the companyWith new launch Hero honda can be benefited at present market scenario like Karizma, CBZ, Hunk has huge attraction in the younger generation because of its style, look, and power at high speeds.(T)hreatsTechnical aspectCompetitor bike like Bajaj pulsar and TVS apache are threat to Hero Honda product like Karizma, CBZ and Hunk in respect t o fuel economy. So if they dont short out in the new launches and give something extra in its engineering performance it may affect in demand of this company product.InflationIf inflation increases the cost of raw material used in production will go high and sellingprice of product may go high that may decrease demand of the two wheeler.