Beruflich Dokumente
Kultur Dokumente
• Introduction
• Vision & mission statement
• Key information
• Board of Directors
• Quick facts & figures
• Automobile market structure
• Products & product information
• External audit & EFE matrix
• CPM matrix
• Internal audit & IFE matrix
• BCG matrix
• IE matrix
• The grand Strategy
INTRODUCTION:
Honda Atlas is a Pakistani automobile manufacturer and joint venture between Honda
Motor and Atlas Group, based in Lahore, Pakistan since 1992. Honda Atlas is the authorized
assembler and manufacturer of Honda vehicles in Pakistan.
HOLDING COMPANY:
M/S Honda Motor Company Limited is the holding company with 51% shares and is
incorporated in Japan.
Vision:
“striving to be accompany that society wants to exist by sharing joys with people
throughout the world.”
“creating products that maximize the joy of customers, with speed, affordability & low
CO2.”
Mission:
It is the constant endeavor of Honda Atlas Cars (Pakistan) Limited to achieve No.1
Customer satisfaction. Honda Atlas Cars (Pakistan) Limited is committed to meet
customer expectations, and to provide good value for money.
KEY INFORMATION;
Ty pe Joint v ent ur e
Founded 1992
Pa r ent Honda
• PAK SUZUKI:
• TOYOTA COROLLA:
Total production 33597 units
Total sales 33590 units
PRODUCTS
PRODUCTS
Products Information:
HONDA CIVIC
The 10th Generation Honda Civic introduces a new design language as well as a range of cleaner,
more powerful and more efficient engines. 2017 Honda Civic is a front engine, front wheel drive,
subcompact sedan also known as Civic X. The Honda Civic 2017 is available in 3 variants in
Pakistan 1.5 Litre VTEC Turbo, 1.8 Litre and 1.8-Liter VTI Oriel while globally it is sold in 4 variants
LX, EX, EX-T and EX-L. The Honda Civic 2017 price in Pakistan is between Rs. 2,349,000 To
2,999,000
HONDA CITY:
Honda City (5th Generation) was launched on 31st January 2009 by Atlas Honda Cars Pakistan. The
Honda City 5th Generation is a front engine front wheel drive subcompact sedan with outstanding
features and specifications. The Honda City 2017 featured a brand new and more aggressive model
design language compared to the previous City as well as new engines and interior panels, Honda Atlas
launched a new 1.5 L engine in 2013 and then in 2014, it received a facelift in October which included a
series of minor cosmetic changes. Then, again in 2017, it received another facelift in which immobilizer
and few cosmetic changes were .
REVENUE APPLICATION (in percent):
Other costs 3 3
Employment 3 3
Government 27 27
shareholders 2 2
Profit retainedd 6 5
• PRICE EFFECT:
The demand for cars is price-elastic.
• INFRASTRUCTURE:
The state of our public transportation is extremely poor, to say the least. Therefore to avoid their use,
people prefer having their own cars.
• HUMAN RESOURCE:
Pakistan’s labor force is not properly trained and mostly unskilled, the productivity is low relative to other regional
competitors.
• POPULATION GROWTH
With the population growth of 2.7% per annum and the changing lifestyles of the people,
automobile sector has grown in the past.
• DEMOGRAPHIC SHIFT
Migration of the population from the rural to the urban areas & also Chinese migration affects the
automobile sales.
• ENVIRONMENTAL POLICY:
HACPL formulate objectives & targets for pollution prevention environmental impacts
POLITICAL FACTORS:
• UNSTABLE GOVERNMENT:
Economic growth and sustainable market is not possible without political stability and creating conducive
environment for investment. From the first day, Pakistan is suffering from political unpredictability that’s why
investors always remained reluctant to invest in Pakistan.
Car sales in Pakistan are seeing an all-time high. Local car manufacturers are pouring all they have in trying to
meet local demand
TECHNOLOGICAL FACTORS:
Honda cars has always followed the tradition of introducing new technology andproviding global cars of
international quality to its customers, since the launch of its first model in 1994.
During the short span of 24 years, your company has introduced 5 new models of Honda Civic and 5 new
models of Honda City –the highest among the other car makers in Pakistan.
• The City has Drive-By-Wire (DBW) control technology for fuel efficiency. It has also enhanced G-
CON collision safety which reduces the impact on passenger cabin. To maintain the global quality standards,
the Company has invested Rs. 2.1 billion on development of local parts, dies and fixtures of Honda City.
However, the new features increased its cost and so the selling price.
• Honda produces cars of highest quality with high specifications of Honda to its global customers. Honda has
the pride of providing the environment - friendly, Euro IV compliant cars to its customers, which no other maker
has in Pakistan.
• On the strength of our confidence in our products, the company City launch effective February 2009, increased
warranty of new City to 70,000 Km or 3 years from the date of purchase, whichever comes earlier, increasing Joy
of Buying of new Honda City.
EFE MATRIX:
s.no Key external factors weight Ratings Weighted score
OPPERTUNITIES
1 Increasing demand for cars 0.16 4 0.64
MANAGEMENT AUDIT:
Management Style:
• consultative type.
• Employees are allowed to give suggestions, but the final decision making by the top management.
• Control is primarily exercised by the top management but some sharing of responsibilities at middle
and lower level.
• Managers at all hierarchical Level plans effectively.
• Managers delegate their authority.
MOTIVATION:
Motivation through rewards is practiced.
HACPL implement Japanese System of Management.
HACPL give’s a lot of incentives to their employees.
Every Employee got a Honda car after 8year of working experience at HACPL.
Free Hospital Facility to their employee and their family.
Bonuses are given to the employee after job evaluation
WORKPLACE ENVIRONMENT:
Employees morale is high. company provide good environment to grow
Atlas Honda has a sophisticated IT system. Each & every department is
The computerization has reduce the burden of employees
HIRING & SELECTION PROCESS:
In HACPL employees are selected very carefully. Ad is posted in Newspaper or on HACPL Website.
Than HR department conduct an interview of every candidate who apply for the job, after selection
from the interview HR Department also conduct a test of the candidate called psychology test and this
test is about 30min long. Reason behind this test is to check that how much a candidate can bear
pressure on himself.
Financial Results:
• The company earned record profit after tax Rs.6135 million for the year improved by 72.5% in the same
corresponding last year. Earning per share grew to Rs.42.96 against 24.90.
However, GP margin was slightly reduced from 15.1% of last year 14.5% mainly due to increase in material
cost.
• Other income improved significantly to 1115.2 million against Rs.309.8 million which was 260% better than
last year. This was all possible with better cash & treasury management of an improved quality.
• Financial & other charges increased to Rs. 560.9 million against 492.8 million due to statutory provision of
WPPF and WWF for the fy-17.
• during the year, the company contributed an amount of Rs.25.13 billion to the government exchequer in the
shape of sales tax, custom duty, excise duty & other govt. levies. For this it was awarded 1st position in the
Punjab region by the custom authorities.
Dividend to shareholders:
The company paid cash dividend 0f Rs.13/- per share against Rs.7/- last year, showing a increase of 86%.
Company regard returning profit to shareholders as one of the top management priorities. Company believes in
appropriate & consistent dividend payment to shareholders
Financial ratios analysis:
Gross profit ratio:
The company’s profitability ratio is 14.5%, Which is quite good percentage. As compare to industry. company is
trying to reduce its costs due to import cost. Yet company is efficient & still striving to grow.
Current Ratio:
HACPL’s current ratio is 1.2, which means the business is able to pay 1.2 rupees against every single rupee of its
liability. sounds good but company is likely to have difficulties to pay its debts as they become due because most
of its current assets consist of inventory.
Working Capital:
Company’s Net Working capital is RS. 8,418,899. a company has enough short term assets to cover its short term
debt.
Corporate & financial Reporting framework:
International financial Reporting standards, as applicable in Pakistan, have been followed in preparation of
financial statement.
The system of internal control is sound in design and has been effectively implemented & monitored.
There are no significant doubts about the company’s ability to continue as a going concern.
PRODUCTION AUDIT:
Cost OF Production:
The cost of production is 59% of its total sales. This is much high due to the import duty & transportation cost.
Production Capacity:
HACPL has a capacity of total 50000 units per annum.while company produced 34560 units in 2017. Company’s
assets are under utilizing due to the external environment.
Stengths
1 Goodwill 0.10 4 0.4
2 Technologically advancement 0.08 4 0.32
3 Employee morale is Excellent 0.12 4 0.48
IFE MATRIX:
5 Loyalty of customers 0.09 4 0.36
6 Sales increased 0.05 3 0.15
7 Quality of product 0.08 4 0.32
8 High inventory turnover 0.08 4 0.32
weaknesses
9 High production cost O.10 1 0.10
10 Often customer have to wait for delivery 0.08 2 0.16
11 Capacity is under utilized 0.07 2 0.14
TOTAL 1.00 3.17
BCG MATRIX:
No product
No products
1 2 3
4 5 6
7 8 9
The Grand Strategy:
QUADRANT 1
HACPL should adopt these strategy:
Market development
Market penetration
Product development
Forward integration
Backward integration
Horizontal integration
Related diversification