Introduction

Honda Motor Co., Ltd. is a Japanese public multinational

corporation primarily known as a manufacturer of automobiles,
motorcycles and power equipment. Honda Motor Co., Ltd. Is
established by Soichiro Honda who was a legendary man in the
Japanese motor industry. He was a dreamer and he dreamed of
giving people everywhere an economical form of transportation,
and began producing small motorcycles, including one built in
1949 called the D-Type Dream (Honda Motor Company Ltd,
2012). Therefore, the slogan of Honda is The Power of Dreams.
Honda has been the world's largest motorcycle manufacturer since 1959, as well as the
world's largest manufacturer of internal combustion engines measured by volume, producing
more than 14 million internal combustion engines each year. Honda became the second-largest
Japanese automobile manufacturer in 2001. Honda was the eighth largest automobile
manufacturer in the world behind General Motors, Volkswagen Group, Toyota, Hyundai Motor
Group, Ford, Nissan, and PSA in 2011.
Honda was the first Japanese automobile manufacturer to release a dedicated luxury
brand, Acura, in 1986. Aside from their core automobile and motorcycle businesses, Honda also
manufactures garden equipment, marine engines, personal watercraft and power generators,
among others. Since 1986, Honda has been involved with artificial intelligence/robotics research
and released their ASIMO robot in 2000. They have also ventured into aerospace with the
establishment of GE Honda Aero Engines in 2004 and the Honda HA-420 Honda Jet, which
began production in 2012. Honda has three joint-ventures in China (Honda China, Dong feng
Honda, and Guang qi Honda).

In 2013, Honda invested about 5.7% (US$6.8 billion) of its revenues in research and
development. Also in 2013, Honda became the first Japanese automaker to be a net exporter
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from the United States, exporting 108,705 Honda and Acura models while importing only
88,357.
Honda has its own philosophy which consists of Fundamental Beliefs, the Company
Principle (mission statement), and Management Policies. The fundamental beliefs include
Respect for the individual, which means individuals are treated equally, they are encouraged to
show initiative and trust each other, and The Three Joys as Honda believes in a joy of buying,
joy of selling and joy of creating, which are fundamental for successful firms operation.
The mission of Honda is maintaining a global viewpoint, we are dedicated to supplying
products of the highest quality, yet at a reasonable price for worldwide customer satisfaction.
Furthermore, Hondas management policies are as below:

Proceed always with ambition and youthfulness.

Respect sound theory, develop fresh ideas, and make the most effective use of time.

Enjoy your work and encourage open communications.

Strive constantly for a harmonious flow of work.

Be ever mindful of the value of research and endeavor.

The Honda Philosophy is not only shared by all associates, but also forms the basis for all

company activities and sets the standard for the conduct and decision-making of all associates
throughout the Honda Group. Driven by its dreams and reflecting its values, Honda will continue
taking on challenges to share joys and excitement with customers and communities around the
world to strive to become a company society wants to exist.

2.0 Sun Zis Art of War Theory

Sun Zi said: In general, when waging war, capturing a whole nation intact is a better
strategy; to shatter and ruin it is a weaker option. (Chapter 3.1 ) This means that we should
achieve our aim without losing anything as when we fight for something of value, and should we
destroy ourselves or that something of value while fighting to obtain it, then we have lost our real
purpose for fighting. Therefore, we should analysis the enemies weaknesses and attack along an
unexpected line so that the probability of winning with our resources intact and our objective
intact. By applying this into business world, in order to penetrate or capture new market, the
organization should analysis the markets needs, environment and culture. These are the crucial
success factors will help the products to adapt to the customers needs and culture. Besides,
organization can save a lot of marketing cost by cutting down unnecessary promotion and
advertisement. For example, KFC has introduced a new Flaming Crunch chicken which suited
Malaysian taste. This flaming crunch chicken is coated with crunchy cornflakes and some spicy
powder. As we all know most of the Malaysians like spicy food such as nasi lemak or curry.
Thus, this new flaming crunch chicken meets the needs of Malaysian who like spicy food. On the
hand, KFC in India provides its products with different ingredients. In India, KFC restaurants
introduces Veg Rockin and Veg Strips to suit taste of most of Indians, which is vegetarians or
Buddhist. In other words, it is more effective to change product offers based on markets culture,
environment and needs compared to provide same market offering to different markets, which
may cause culture shock to the customers.
Sun Zi said: In ancient times, those who were skillful in warfare ensured that they
would not be defeated and then waited for opportunities to defeat the enemy. ( Chapter
4.1 ) The ability to prevent defeat depends on oneself, while the opportunity for victory
depends on the enemy.( Chapter 4.2 ) This means that in order to achieve victory, one must
prepare himself or herself to prevent enemy attack. Moreover, one must be able to predict his or
her opportunities based on enemys condition and wait for it to defeat the enemy effectively. By
applying statement above in business world simply means that the organization must be well
prepared to face challenges from its competitors. Even though the organization is not the first
mover or initiator in a new market, it can develop measures, policies and strategies to prevent its
competitors from surpassing the organization. Besides, people who are the most successful in the
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market are who will predict the future, create the market and to realize the prediction. Thus, top
management must have a prediction on future market trend so that organization can implement
suitable strategies at the right timing to control the market. For example, the diamond multimedia
is the first mover for multimedia downloader but the timing is not matured, they never predict
their future properly and do not have good policies or strategies to create the market. Few years
later, Apple Inc produces the same technology products such as iPod. It is more famous as
compared to diamond multimedia. Therefore, making accurate prediction and capturing the
opportunities is an important advantage factor as it creates the trend which bring the organization
growth and maximize the organisation profit. The organization must always have a well-rounded
preparation to solve any threats in future and when opportunity arrives, it must capture it
immediately and make profit.
Sun Zi said: To manage a large force is similar to managing a small force. So, it is a
matter of organization and structure. (Chapter 5.1 )This statement indicates that it is
important for an organization has good formations, communication and signals so that the
organization can run smoothly and performance of the organization can be improved. An
organization should be divided into several departments which work cooperatively. These
departments should be given different roles in which they work best. Furthermore, leaders should
be assigned in each department to evaluate the employees performances. The departments
should not only scout on the way they carry out their job but at the same time, list the problems
and challenges that the employees encounter while performing their job. If the trouble discovered
is with the working environment, equipment or system, then the team should report to the unit
responsible to solve the issue raised to the ground. However, if the problem is rise from the
employees themselves, whether the particular employee is lack of skills and training or is not
competence enough for the job, then a replacement or further training is necessary. On top of
that, the organization should enhance the communication between the departments. This will
improve the cooperation and information changing between the departments to come out better
strategies in the market. Through this approach, the company is able to deal any management
issues effectively in relatively shorter time.

Sun Zi said: The general who knows how to vary and adapt to changing situations
so as to gain advantages is one who is skillful in applying the art of war. (Chapter 8.13 )The
world is constantly changing, we need to adapt to this change quickly. The quicker you let go of
the past mistakes, the sooner you can eliminate it and improve yourself. This means that the
faster you adapt to change and follow the trend, the faster you can enjoy earning your profit. This
concept is very important because variations and adaptability are the most valuable characteristic
of a company. A company that focus on variations will continue to move forward, looking to the
future, and know how to shift to fixed current situation successfully. With this characteristic, a
company will able to improve their product and services, seeking new opportunities and bringing
new things into the market that consumer really need. For example, Starbucks coffee leads the
industry with it continuous menu innovation and a wider choice of drinks than any other brand.
Recently, everyone is crazy for Chatime, Ochado or Gong Cha which all of them are Taiwanese
pearl milk tea. You can see people queue up even if the queue is very long, still people wait for it
just for that cup of pearl milk tea. To change, we can see Starbucks coffee introducing the Green
Tea with Red Bean Frappuccino and Hojicha with Tea Jelly Frappuccino to follow the trend.
Thus, this indirect forces used by Starbucks coffee are tactics to surprise their competitors and
consumers. Moreover, this can help to solve their problem and pull back their customers. In
short, a company which has the ability of adapting to changing situations will survive and able to
continue its operations even though there are problems, such as economic crisis and natural
disaster, occurred.

3.0 Discussion
3.1 In general, when waging war, capturing a whole nation intact is a better strategy; to
shatter and ruin it is a weaker option. (Chapter 3.1 )
To capture the market, indirect and low-key approach that will not draw a competitors
attention or response should be taken. Honda motor has to come out with different strategy and
method in facing different challenges in market to compete in car and motorcycle industry.
For example, in year 2001, American Hondas associate learning and organizational
development group undertook a broad assessment of its approach to training, looking at what
was offered, why, to whom and how. One focus of this initiative was to deepen the emphasis on
customer satisfaction, which has long permeated Hondas manufacturing operations. The basic
way to achieve this goal is to improve service quality. The challenge laid out for the development
group was to improve and extend the delivery of training for employees, reduce their time away
from the job for training, take advantage of expanding technology capabilities and infrastructure
and, above all, ensure a tangible transfer of skills that would take internal service quality to an
entirely new level. Through improved service quality, the customers will feel being respected and
easily satisfied regardless of their different needs.
Besides, Honda Motor Company Ltd also tries to minimize the customers complaint as it
will jeopardize its position in the automobile market. In June 2006, the organization had took an
initiative to address complains by soliciting customer feedback. As a result, it had successfully
lower the complaint rate every year. After eight years of experience, this initiative has taught the
organization that customer complaints and requests concerning its products exhibit great variety
as a result of regional differences in culture, climate, and lifestyle, revealing significant
differences in how products are used. Therefore, a regular meeting to reduce customer
complaints is held in each country on a monthly basis. In addition to facilitating the sharing
among relevant departments of information about every piece of customer feedback received by
customer service hotlines concerning our business operations, including products as well as sales
and service activities, and the examination of improvement measures, these meetings provide a
venue for reviewing the progress and results of those measures and ensuring that they are
incorporated into a growing feedback database.

3.2 In ancient times, those who were skillful in warfare ensured that they would not be
defeated and then waited for opportunities to defeat the enemy. (Chapter 4.1 )
A good organization or a good company will always have a good management of control
and a good advance mission to improve or to raise up their company strength. Management must
always be well-prepared for the organization future development and scoring in the good
opportunity that will arrives in future time thus, the organization can earn profit on it and growth
even more in future time.
For example, Honda Motors company are developing human resource department in
their organization by providing training to the employees to equip them with necessary skills and
knowledge. Honda's approach to personnel education is based on on-the-job training: building
specialized skills and professional capabilities through direct experience. Honda has established
on-the-job training programs for each job description, setting qualitative and quantitative targets
for the knowledge and skills to be acquired. These programs are to provide with an opportunity
for associates to acquire managerial capabilities and specialized skills while helping supervisors
assess and promote the growth of the aptitude of the associates they manage. To supplement
these on-the-job training programs, Honda also offers off-the-job training to provide associates
an opportunity to enhance their careers by developing new specialized skills or management
capabilities. Furthermore, Honda also offers opportunities for language learning, distance
education, and inter-industry exchanges to support associates who wish to take the initiative to
learn new skills, acquire knowledge, and cultivate themselves in order to fully realize their own
potential. With this training, Honda can enhance their strength of their company.
Besides, the organization must always have a better control on their product pricing,
policy and place. Organizations leader can set a good strategy and the market research to take
the advantage on the competitors weakness and negligence.

For example, for the car industry, Honda and Toyota is one of the large competitors of
both of the company. Honda and Toyota always have the price differentiate on their product. In
2002 Honda produced a new model of car which is Honda Civic Dx sedan, the suggested retail
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price is $13,800 but in the same times Toyota Corolla CE sedan also goes for the market about
$13,900. Most of the buyer will always looking for the product quality and these both cars would
have almost same specification, besides that consumer also will compare this two car price either
which one is higher or lower. Now the Honda Civic is cheaper than Toyota Corolla. Thus, most
of the consumer will make a decision on buying the Honda car than Toyota car as the price of the
Honda Civic is cheaper than the Toyota Corolla. In the case Honda Company has made a good
pricing in control on their product, Honda was able take a good opportunity to making profit.

3.3 To manage a large force is similar to managing a small force. So, it is a matter of
organization and structure. ( Chapter 5.1 )
Honda has been operates in the worldwide market with about 134 production facilities in
28 countries and at 31 Research and Development facilities in 15 countries, about 167000 Honda
employees and associates serve 23 million customers worldwide annually. So, it is not easy to
manage such a large organization. In order to have a better management, Hondas global
operations are divided into 6 administrative regions responsible for operating which are Japan,
China, North American, Latin American, Europe and the Middle and Near East and Africa, Asian
and Oceania, while hiring and engaging the people and philanthropic initiatives locally in the
communities that Honda operates. Honda is pushing the independence of their local management
and sales operations, at the same time with integrating and forward-looking plan for each region.
Honda operate under the conduct guidelines that help the member of companies and associates
in evaluating and managing risks, complying with laws and regulations, keeping a high level of
transparency in operational level, thats all to maximize the worldwide customer satisfaction.
In the global business, many top managers still centralize their authority by making most
of the decisions of the company. In contrast, Honda decentralizes authority to their associates to
maximize the flexibility and diversity in decision making process, and well adapt to the changes
of global market. Most of the decisions are made by a group of responsible persons, including
Board of Director, outside directors, outside auditors. Making group decision of responsible
persons in Honda is extremely effective. The theoretical advantage of this strategy is improving
innovation and reducing risk, biased thinking. In fact, this strategic leadership style leads Honda
to today success. For instance, the organization of Board of Directors or Board of Auditors
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includes not only inside companys employees but also external appointees. This feature helps
Honda to make the distinction in global performing and competing. Outside company appointees
play the role as supervising the execution of each board. As the result, the performance of each
board becomes effective and efficient rather than organization with entirely inside company
employees.
By this strategy organizing, the company can ensure that working environment will be
fair and strong without dubious cooperation. Honda manages its employees through promoting
programs, principles and policies in supporting its organizational human resources. So, when
people's needs are satisfied, they are well motivated, resulting in being eager to contribute more
to organization. Honda satisfies not only low needs (physics, safety, belongings) but also high
needs of employees (esteem and self-actualization). Therefore, Honda is more effective than a lot
of other companies in motivating people, resulting in efficient, effective performance of
employees and firm as well.

3.4 The general who knows how to vary and adapt to changing situations so as to gain
advantages is one who is skillful in applying the art of war. (Chapter 8.13)
Unlike other manufactures, Honda can seamlessly produce multiple autos vehicles on a
single assembly line, and switch a line over to a newly designed vehicle within hours. In
contrast, Hondas rivals need to take months for them to retool a factory for a new vehicle.
Besides, Honda has invented the flexible factory through an innovation known as synchronized
engineering. As a result, assemblers are agnostic about which car they are building because in the
factory only small variations differentiate like an Odyssey from an Accord V6. In the
globalization terms, the advantage that Honda gains in being to alter production and capacity of
individual models at a moments notice, depending on local sales trend and the success of
competitive brands.
Besides, in year 2011, the Japanese earthquake and tsunami that happened has forces
Honda to halve their car production at its British factory because of a shortage of parts from its
homeland. Honda began to implement a strategy of temporary adjustments that reduce daily
production levels at United State and Canadian auto plants on 30 March 2011 as a result of
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interruptions in parts supplies from Japan in the aftermath of the earthquake and tsunami. By
taking this action, Honda of the United Kingdom Manufacturing (HUM) will be able to continue
their production by utilizing HUMs flexible working policy. Pay is maintained for all associates.
Once full production is resumed, the reduced volume production will be quickly recovered by
using the banked hours. Thus, the impact on Honda customers, dealers, and associates was
minimized.
Furthermore, as Honda motor decision making is decentralized, this will facilitates rapid
response to change in two or more environments. For example, when some changes occur in
American market, the local company freely makes decision in order to immediately adapt to the
market. Instead of waiting the decision from Parents Company, it has authority to themselves
decides, resulting in saving time, cost and reducing risk. Hence, Honda's associates more
efficiently and effectively in exchange information together.

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4.0 Conclusion
In automobile market, Honda Motor Company Limited is an excellent company, which
earn the position as one of the largest automobile manufacturer in the world. It achieves success
in this industry by implementing strategies based on Sun Zis Art of War strategies. The company
always analyze its target market in advance, making preparations and predictions, then penetrate
the market with different products based on the markets environment. Honda Motor Company
Limited also has well-rounded organizational structure to optimize the communication and
cooperation between the employees. Moreover, the company also stays true to its motto, the
power of dream by staying innovative and adapting various trends to satisfy consumers.
After the analysis is done, we have learned from Honda Motor Company Limited that
before facing competitors or enemies, one must prepare themselves in various aspect and wait
for the right opportunities to strike competitors. Furthermore, we also learn that in order to defeat
enemies, one must not face them recklessly but analyze them carefully to find out their strength
and weaknesses. Otherwise, it might cause losses to oneself. Moreover, to achieve success, one
must form a group with systematic structures and proper leader as well as strengthen the
communication between group members. With this, the group will be stay united and achieve
goals together. Lastly, the analysis also teaches us that one must have contingency viewpoint
when facing challenges. The measures or strategies take must vary according to the situation and
threats he or she is facing.

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