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AUTOMOBILE INDUSTRY
The auto market is one of the largest segments in world trade. The annual size of automotive export trade in the world has grown to a massive level of over US$ 600 billion, which accounts
for about 10 per cent of the world export. Changing models, improving fuel efficiency, cutting costs and enhancing user comfort without compromising quality are the most important challenges of the auto industry in a fast globalizing world. Hence there is a need for exploring the industrial complementarities in the region for better quality, favourable costs, fuel efficiency and attractive designs. Therefore, the requirement of information exchange in the region is much more pronounced now than ever before for keeping the auto industry afloat and competitive. The automotive industry designs, develops, manufactures, markets, and sells motor vehicles, and is one of the worlds most important economic by revenue. The term automotive industry usually does not include industries dedicated to automobiles after delivery to the customer, such as repair shops and motor fuel filling stations.
1997 52,987,000
[7]
[7]
1999 56,258,892
2.98%
[8]
2000 58,374,162
3.80%
[9]
[10]
2002 58,994,318
4.80%
[11]
2003 60,663,225
2.80%
[12]
2004 64,496,220
6.30%
[13]
2005 66,482,439
3.10%
[14]
2006 69,222,975
4.10%
[15]
2007 73,266,061
5.80%
[16]
[17]
[18]
1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000 9,000,000 10,000,000 11,000,000 12,000,000 13,000,
18,264,6
than the foreign plants in the U.S.). The Big Three had in recent years manufactured SUVs and large pickups, which were much more profitable than smaller, fuel-efficient cars. Manufacturers made 15% to 20% profit margin on an SUV, compared to 3% or less on a car.[93] When gasoline prices rose above $4 per gallon in 2008, Americans stopped buying the big vehicles and Big Three sales and profitability plummeted. Robert Samuelson has advocated a more consistent energy policy, arguing "wild swings between low and high fuel prices have crippled the U.S. industry by erratically shifting buyer preferences -- to and from SUVs The financial crisis played a role, as GM was unable to obtain credit to buy Chrysler. Sales fell further as consumer credit tightened and it became much harder for people with average or poor credit to obtain a bank loan to buy a car. During 2007, nearly 2 million new U.S. cars were purchased with funds from home equity loans. Such funding was considerably less available in 2008.[95] In addition, stock prices fell as shareholders worried about bankruptcy; GM's shares fell below 1946 levels. Furthermore, the instability of the job market and individual consumers' finances discourages consumers who already have a working vehicle from taking on a new loan and payments, which affected almost all major manufacturers. The annual capacity of the industry is 17 million cars; sales in 2008 dropped to an annual rate of only 10 million vehicles made in the U.S. and Canada. All the automakers and their vast supplier network account for 2.3% of the U.S. economic output, down from 3.1% in 2006 and as much as 5% in the 1990s. Some 20% of the entire national manufacturing sector is still tied to the automobile industry. The transplants can make a profit when sales are at least 12 million; the Big Three when sales are at least 15 million. The crisis has affected auto companies around the world, with large sales decreases experienced by all. As of December 19, 2008, oil prices had fallen to $33.87 per barrel, but the automobile crisis continues.
\Automotive
industry in Pakistan
The Automobile industry has been an active and growing field in Pakistan for a long time, however not as much established to figure in the prominent list of the top automotive industries. Despite significant production volumes, transfer or technology remains low. Most cars in the country have dual fuel options and run on CNG(compressed natural gas) which is more affordable than petrol in the country. There are only three major passenger car assemblers in the market; PakSuzuki, Indus Motors and Honda Atlas. Paksuzuki has a almost complete monopoly in the small car segment as it faces almost no competition other than the single odd Diahatsu Cuore produced by Indus Motors. In the Subcompact Sedan segment Toyota Corolla, Honda Civic, Honda City, and the Nissan Sunny are currently the only cars in production. There are still no locally made SUV, Mid or Full sized sedans available. As of 2010, Pakistan has not adopted any automotive emission or safety standards. Therefore, most cars manufactured and sold in the country are still carburetor based and do not meet any international emission standards. Many locally made cars such as Suzuki Mehran, Suzuki Cultus, Suzuki Ravi, Suzuki Bolan, Diahatsu Cuore, etc are globally obsolete cars from the 1970s or 1980s which are no longer produced or sold in any country other than Pakistan. List of currently assembled passenger vehicles:1. Suzuki Mehran 2. Suzuki Alto 3. Suzuki Cultus 4. Suzuki Ravi 5. Suzuki Bolan 6. Suzuki Liana 7. Toyota Corolla 8. Honda Civic
9. Honda City 10. Nissan Sunny 11. Diahatsu Cuore The local auto industry is also known to overcharge genuine customers by collecting "premium" and selling cars much at a much higher price then their official retail amount.
HISTORY OF HONDA
Honda Motor Company Limited is perhaps best known as an automaker--it is the third largest automaker in Japan--but the company has its roots in motorcycles, and is the world's top motorcycle manufacturer. Its best market is in the United States, where the majority of its sales are generated. Honda's automobile product line accounts for approximately 90 percent of its sales, and includes well-known U.S. top-seller s such as the Accord, Legend, Civic, Prelude, and the luxury Acura. The Accord is the second most purchased car in the United States, although it actually ranks first on the country's list of most stolen (and thus, "in demand") vehicles. Honda also produces motorcycles such as the Super Cub, Foresight, and Shadow 750. Furthermore, the company's power products division makes other items that bolster annual sales, such as agricultural and industrial-use machinery, portable generators, outboard motors, and all-terrain vehicles. The Early Years Any description of Honda Motor Company's history and success must take into account the contrasting inclinations of its founders--Soichiro Honda and his partner, Takeo Fujisawa. Soichiro Honda's achievements as a mechanical engineer are said to have matched those of Henry Ford. Working in his Japanese machine shop in 1938, Honda concentrated his early efforts on casting a perfect piston ring. He soon succeeded in casting a ring that met his standards, and attempted to sell it to the Toyota Corporation. Toyota rejected Honda's first batch of piston rings, but two years later the company finally placed a large order. At that time, however, Honda ironically found himself facing a major obstacle that came as a result of the order's large size--a shortage of cement. Because Japan was
preparing for war, Honda could not secure the cement and materials needed to construct a factory to mass-produce piston rings. Furthermore, he could not produce the quantity of piston rings necessary using his facility at that time. Undaunted, Honda learned how to make his own cement and soon constructed the new facility. Honda's new factories survived the bombing attacks during World War II, but were unfortunately later destroyed by an earthquake. At that time, Honda sold his piston ring operation to Toyota and went on to manufacture motorbikes instead. He had designed his first bike in the early postwar years when gasoline was very scarce and the need for a low fuel-consuming vehicle was great. After the destruction of his piston ring manufacturing facilities, he decided to attempt selling his motorbike on a larger scale. To form a company, Honda joined efforts with investor Takeo Fujisawa, whom he had known throughout the 1940s. In 1949 Fujisawa provided the capital, as well as financial and marketing strategies, to start the new company. Honda's motivation for establishing the company--unlike Fujisawa's--was not purely commercial, but was instead to provide himself with a secure financial base so that he might pursue other ambitions such as motorcycle racing. Innovations in the 1950s In 1950, after his first motorcycle had been introduced in Japan, Honda stunned the engineering world by doubling the horsepower of the conventional four-stroke engine. With this technological innovation, the company was poised for success. By 1951 demand was brisk, yet production was slow. It was primarily due to design advantages that Honda became one of four or five industry leaders. By 1954 Honda had achieved a 15 percent share of the motorcycle market. Still, the two owners of the company had different priorities. For Fujisawa, the engine innovation meant increased sales and easier access to financing. For Honda, the higher horsepower engine opened the possibility of more successfully pursuing his motorcycle racing ambitions. Indeed, winning provided the ultimate confirmation of his design abilities. Success came quickly, and by the end of the 1950s Honda had won all of the most prestigious motorcycle racing prizes in the world. Throughout the decade, however, Fujisawa attempted to turn Honda's attention away from racing and instead toward the more mundane tasks of running a successful business venture. By 1956, as the technological innovations gained from racing began to pay off in vastly more efficient engines, Fujisawa prompted Honda to adapt this technology for a commercial motorcycle--with a particular segment of Japanese society in mind. At that time, most motorcyclists in Japan were male and the machines they used were primarily an alternative form of transportation to trains
and buses. There were, however, a large number of small commercial establishments in Japan that still delivered goods and ran errands on bicycles. The finances of these small enterprises were usually controlled by Japanese housewives who resisted buying conventional motorcycles because they were expensive, dangerous, and difficult to handle. Fujisawa suggested to Honda that with his knowledge of racing, he might be able to design a safe and inexpensive motorcycle that could be driven with only one hand (to facilitate carrying packages). In 1958 the Honda 50cc Super Cub was introduced. It featured an automatic clutch, three-speed transmission, automatic starter, and the safe, friendly look of a bicycle. Its inexpensive price was due almost entirely to its high-horsepower, yet lightweight 50cc engine. Overwhelmed by demand, the company arranged for an infusion of capital in order to build a new plant with a 30,000 unit per month capacity. By the end of 1959 Honda had climbed into first place among Japanese motorcycle manufacturers, with sales of $55 million. The company's total sales that year of 285,000 units included 168,000 Super Cubs. Expansion into the United States in the 1960s The success of the Super Cub in Japan prompted Honda to consider expanding its target market to other geographic regions. The company had already experimented with local southeast Asian markets in 1957 and 1958, however, with little success. The European market, while larger, was heavily dominated by its own name brand manufacturers, and their popular mopeds dominated the low price, low horsepower market. Thus, Fujisawa decided to focus Honda's attention on the U.S. market. Prior to 1960, the image of the motorcyclist in the United States was that of an unsavory teenager who belonged to a group of unruly characters known by names such as "Hell's Angels" and "Satan's Slaves." In general, the U.S. public regarded motorcyclists as troublemakers who wore leather jackets. In the 1960s, however, Honda Motor Company worked to successfully transform that image, and at the same time establish the company as the leading motorcycle manufacturer in the world. In 1959 Honda established a U.S. subsidiary--American Honda Motor Company, Inc.--an action which was in sharp contrast to other foreign manufacturers who relied on distributors. Honda's strategy was to create a market of customers who had never given a thought to owning a motorcycle. The company started its enterprise in America by producing the smallest, most lightweight motorcycles available. With a three speed transmission, an automatic clutch, five horsepower (an American cycle had only two and a half), an electric starter, and a step-through
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frame for female riders, Honda sold its unit for $250 retail compared to $1,000--$1,500 for the American machines. Even at that early date, American Honda was probably superior to its competitors in the area of productivity. Honda followed a policy of developing the U.S. market one region at a time. The company started on the West Coast and moved eastward over a period of five years. During 1960, 2,500 machines were sold in the United States. In 1961, 125 distributors were established, and $150,000 was spent on regional advertising. Honda's success in creating a demand for lightweight motorcycles was impressive. Its U.S. sales skyrocketed from $500,000 in 1960 to $77 million in 1965. Honda's advertising campaign, which was directed at young families, included the slogan, "You meet the nicest people on a Honda." This was a deliberate attempt to disassociate its motorcycles from the image many Americans had of motorcyclists. The slogan's creation was an interesting story itself. In the spring of 1963 an undergraduate advertising major at the University of California, Los Angeles (UCLA) submitted, in fulfillment of a course assignment, an advertising campaign for Honda. Its theme was: "You meet the nicest people on a Honda." Encouraged by his instructor, the student submitted his work to a friend at Grey Advertising. Consequently, the "Nicest People" campaign became the impetus behind Honda's sales, and as a result, by 1964 nearly one out of every two motorcycles sold in the United States was a Honda. Transitions into Automobile Manufacture As a result of the growing number of medium-income consumers, banks and other consumer credit companies began to finance the purchase of motorcycles. This facilitated a shift away from dealer credit, which had been the traditional purchasing mechanism. Seizing the opportunity created by a soaring demand for its products, the company set into motion a risky plan. Late in 1964 Honda announced that soon thereafter it would cease to ship motorcycles on a consignment basis and would require cash on delivery. Meanwhile, management prepared itself for a dealership revolt. Instead, while nearly every dealer either questioned or complained about the decision, not one relinquished its franchise. Therefore, through this one decision Honda was able to transfer the financial authority (and, the power that goes with it) from the dealer to the manufacturer. Within three years this method became the basic pattern of the industry and the Honda motorcycle had the largest market share of any company in the world. Meanwhile, as Honda was becoming the world's leading motorcycle manufacturer, in 1967 it diversified and also began to produce cars and trucks. In addition, the company started to manufacture portable generators, power tillers, lawn mowers, pumps, and outboard motors. In 1967 and 1968 the company introduced two lightweight passenger cars which performed poorly in both the Japanese and U.S. markets. It was not until 1973 and the introduction of the Honda
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Civic that the company became a real presence on the international automobile market. The world was in the grip of the oil crisis, and the energy-efficient Japanese compacts suddenly found a worldwide market. Three years later, in 1976, as sales of the Honda Civic surpassed the one million mark, the company introduced an upscale, higher priced model named the Accord. Sales of the Accord grew rapidly, not only in Japan, but especially in the United States. In 1982, as a result of the burgeoning U.S. market for Japanese cars, production of the Accord was started at Honda's Marysville, Ohio, manufacturing plant. Meanwhile, Honda's total motorcycle production had reached some 3.5 million units per year, with one-third being produced or sold outside of Japan. As the Accord became more and more popular with middle-class Americans looking for highquality, reliable, and affordable cars, management was convinced that the company could succeed in entering the luxury car market. In 1986, Honda introduced the Acura, which immediately garnered large sales throughout Japan and the United States. By the end of the 1980s, Honda had developed into one of the leading car manufacturers in the world. Stumbling Blocks in the Early 1990s Honda's success continued into the new decade. The Accord was the most popular and bestselling car in the United States from 1990 to 1992. U.S. sales were astronomical, with two cars sold in the United States for every one sold in Japan. When Honda began selling cars in the late 1960s, no one could have predicted that Honda would ever sur pass Chrysler Corporation to become the third largest seller of cars in the United States. It happened, however, in 1993. Furthermore, in addition to car sales, the company's motorcycle unit even broke new ground: in 1992 Honda organized the first ever joint venture to make motorcycles in China. Many industry analysts predicted that the agreement would give Honda an initial foothold in what could become the world's largest and most lucrative motorcycle market. Yet Honda's success in an arena as competitive as the automotive industry could not continue indefinitely. With increasing sales of Pontiac's Grand Am, Ford's Taurus, and Toyota's Camry, sales of Honda's Accord slipped 35 percent in 1993. In the luxury car market, Acura's sales decreased 17 percent as well, battered by competition from Toyota's Lexus and Nissan's Infinity. Honda even lost a significant portion of its share of the Japanese market. Exacerbating its loss of market share was the widely publicized scandal that high-ranking Honda managers accepted
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payoffs as high as $100,000 from dealers who wanted Honda franchises and certain types of special treatment. With over 40 percent of its worldwide sales located in the United States, Honda started to fight back on American soil. After Soichiro Honda died in 1991, the company initiated a comprehensive reorganization. Led by Nobuhiko Kawamoto, the company's president and chief executive officer, Honda reorganized its Japanese, European, and North American units into autonomous operations to improve cost effectiveness. In order to introduce more Americans into company management, Honda arranged for 50 employees from its Ohio plant to spend two to three years working in Japan. The company also expanded its sales training in the United States, and introduced dealer incentives of up to $1.,000 per car in order to move some of its inventory. Finally, Honda introduced its first four-wheel drive vehicle, to compete with already established models such as Isuzu's Rodeo. Although Honda trimmed its overhead, incorporated more Americans into the management of the company, and introduced new models, none of these changes altered one salient fact-namely, that the worldwide car industry was saturated and would remain extremely competitive for both the short and long term. Ironically, Honda would have to endure the same squeeze that U.S. car manufacturers had felt during the 1970s and 1980s, when Japanese competition almost forced them out of business. The End of the Century and Beyond In order to compete in the tough automobile industry environment, Honda focused much of its attention on research and development in 1993 and 1994. As a payoff, the company received a substantial amount of positive press related to its efforts. First, in 1993 it was noted that Honda's power product engines were the first to meet new California emission regulations. Later that year, Honda's experiments with alternative power sources for automobiles led the company to win the world's largest Solar Car race--the World Solar Challenge--with its Honda Dream. The following year, the company began selling the CUV-ES electric scooter on a limited basis, and Honda's BP90 outboard motor received the IMTEC Innovation Award. In 1995 Honda followed these feats with the introduction of the first gasoline-powered vehicle to meet Ultra Low Emission Vehicle (ULEV) standards. Around the same time, a new version of the Civic was introduced, featuring a three-stage VTEC engine and Multi Matic characteristic. By then, cumulative world production for the Civic had reached ten million units, and cumulative world production of all Honda automobiles had surpassed the 30 million unit mark. Late that year, Honda introduced another vehicle to its product line--the sport utility vehicle CRV.
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Honda also attempted to bolster U.S. sales through efforts to engineer and manufacture some of its U.S. products in that country, using American labor. In 1996, the Acura CL--which had been developed and produced in the United States--went on sale. That same year, the Valkyrie--a U.S.-made large-size custom motorcycle--was introduced. Honda won the World Solar Challenge once again in 1996. The next year brought with it Honda's creation and application of a new 360-degree universally inclinable small four-stroke engine, ultra- as well as the manufacture of more automobiles with low emissions characteristics. Also in 1997, th e company reached the cumulative production milestone of 100 million units for its motorcycle line, and of 30 million units for its power product line. Honda's sales continued to rebound, and the growth led the company to open production facilities in many new locations around the world. For instance, in 1997 alone, new production lines of different Honda products were started in India, Vietnam, Turkey, Indonesia, and Brazil. In 1998 Honda once again signed a joint venture agreement in China--this time to produce and sell cars. Soon thereafter, Honda made headlines when its U.S. workforce began publicly voicing a potential desire to join unions. Up to that point, Honda had been a unionless enterprise, surrounded in the United States by most other U.S.-based car companies who were supported by unions such as the United Auto Workers (UAW) and the Teamsters Union. In fact, no other Japanese-owned automobile company had ever approved and instituted a union structure before. Among some of the complaints against the company by workers were working conditions, retirement plans, and special treatment of temporary workers. Nevertheless, many Honda employees quoted in U.S. media at the time seemed to voice the opinion that there was no significant need for Honda workers to become unionized. In 1999 Honda poised itself to introduce to the U.S. market a new low-emission, fuel-efficient automobile made out of an aluminum and plastic mix. The new car, named the Insight, was powered by both gasoline fuel and electricity, and was estimated to achieve an amazing 84 miles per gallon of gasoline. Honda was not the first carmaker to come up with such a vehicle; Toyota had previously introduced a similar car to the market in Japan--the Prius. But Honda's late 1999 introduction of the Insight in the United States was set to beat Toyota's original plans for a year 2000 entry into the U.S. market. As the end of the century approached, Honda was doing quite well but still had weaknesses to surmount. It had come to be known as one of the most efficient car companies in the world. Its strengths were in its research and development know-how, its high level of technological advances, and its global reach--Honda was selling markedly more units abroad than in its own
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country. Yet the company was beginning to rely more and more on its U.S. sales, which by the end of the decade accounted for nearly 85 percent of Honda's profits. Furthermore, there was too much reliance on the success of the company's Civic and Accord models, which could pose trouble in the future if production glitches occurred in either line. It would be Honda's ability to effectively deal with those potential problem areas that would determine its success in the 21st century. Principal Subsidiaries: Honda Research and Development Co., Ltd.; Honda Engineering Co., Ltd.; Honda International Sales Corp.; Honda SF Corp.; Honda Minami Tokyo Co., Ltd.; Honda Motor Service Co., Ltd.; ACT Trading Corp.; American Honda Motor Co.; Honda of America Mfg., Inc.; Honda Research of America, Inc.; Honda Motor (China) Co., Ltd.; Press Giken Co., Ltd. (98.2%); Seiki Giken Co., Ltd. (98%); Honda and Co., Ltd. (86.6%); Honda Sogo Tatemono, Ltd. (70%) Honda Aircraft Company begins sales of its HondaJet Advanced Light Jet. HondaJet was also selected by Popular Science magazine as the winner of the publication's 2006 "Best of whats New" Award in the Aviation & Space category. Honda Philippines begins mass production at new motorcycle plant Integrated three dealer channels into one Honda brand Honda establishes subsidiary in Ukrain In 2007: Honda stated it is going to launch low-priced hybrids and advanced diesel technology in the near future, they were also voted the number one car manufacturer in the world for the third periodHonda announced that it would cease production of motorcycles in the United States in spring 2009.
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3.4%. However, there is an optimal signal that the Power Product and Other Business is continuously increased. In Foreign market, the unit sale grew up 7.7% on Automobiles and 9.3% on Power Product. This year is the successful year of Honda in Other Regions because allof the Hondas businesses were grew up. However, this year was not really good for the motorcycles market of Honda in North America, Europe and Asia.
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Introduction to company
COMPANY INFORMATION
THE BOARD OF DIRECTORS
Mr. Yusuf H. Shirazi Mr. Saquib H. Shirazi Mr. Koji Nakazomo Mr. Nurul Huda Mr. Sanaullah Qureshi Mr. Sherali Mundrawala Mr. Toshitsugu Kaneko Chairman CEO Director Director Director Director Director Director
COMPANY SECRETARY
Mr. Zaryab Tarique
AUDIT COMMITTE
Mr. Sanaullah Qureshi Mr. Sherali Mundarwala Mr. Nurul Hoda Mr. Amir Shakoor Khan Mr. Ashfaq Ahmad Chairman Member Member Head of internal audit Secretary
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Mr. Jawiad Iqbal Ahmad Mr. Saquib H.Sherazi Mr. Theresa Dias
MANAGEMANT COMMITTEE
Mr. Saquib H. Shirazi Mr. Nurul Huda CEO VP Marketing
20 Mr. Toshitsugu Kaneko Mr. Suhail Ahmad Mr. Amir Awan Mr. Maqsood A.Basra VP Technical CFO GM Plants GM CAMA
BANKERS
Bank Al-Habib Limited Credit Algricole Indosuez Deutch Bank AG Emirates Bank International P.J.S.C. Habib Bank Limited Muslim Commercial Bank Limited National Bank of Pakistan The Bank of Tokyo Mitsubishi Limited United Bank Limited
REGISTERED OFFICE
1-McLeod Road, Lahore.
FACTORY
F-36, ESTATE AVENUE, S.I.T.E., KARACHI
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Location of Office/Factory
Registered Office
1-Mcleod Road, Lahore. Ph: (042)-7225015-17 Fax: (042)-7233518
Factory:
43-Km, Multan Road, Manga Mandi, Lahore. Ph: (042)-5871100, (04951)-384263-70 Fax: (042)-5877711-12 Email: info@honda.com.pk, Website: www.honda.com.pk
Number of Employees:
The total number employees in the company are 1041. And there are 11 employees in the marketing department all over Pakistan Head of marketing department is Mr. Ayaz Hafeez.
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We see "The Power of Dreams" as a way of thinking that guides us and pushes us forward. The strength of our company comes from this philosophy which is based on the visionary principles of our founder, Soichiro Honda. We see things from a global perspective, always striving to create and produce products of the highest quality at a reasonable price for worldwide customer satisfaction. The power of Honda's dreams will continue to lead to new insights and technologies in automobiles, motorcycles, power products, parts and other fields of mobility. We see it as our responsibility to serve humanity through our global commitments to helping protect the environment and enhancing safety in a mobile society. In every endeavor we pursue, we strive to be a company that people all over the world want to exist. We see a bright future fueled by the Power of Dreams. Can you see it, too?
Company Philosophy:
Dynamic Manufacturing and marketing of prestigious products to the entire satisfaction of customers. Create ideal working environment for continuous development of product and personnel.
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Provide adequate return to shareholders and fulfil corporate civic corporate civic obligations.
and fulfil
Image of Company:
Zero line stop and zero defect. No.1 customer satisfaction Fair rules. Profitable organization Market leader. Respect for all. Self reliant, exceeding the goal. Open and frank atmosphere. Believe in originality Encourage localization Environment friendly
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Atlas Engineering
2- Trading Sector
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Financial Sector
Atlas Group has following three financial companies.
Shirazi Capital
Quality Policy
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Environmental Policies
Reduce and prevent the generation of waste and pollution in our production system.
Comply with requirements of environmental legislation and local regulations as a responsible corporate citizen.
Initiate and extend environmental improvement activities from the company itself to its business partners including parts manufacturers, general suppliers and dealers.
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Hierarchy of Honda
In Honda hierarchy depends upon the current scenario and situations. They follow both horizontal and vertical line of hierarchy according to the need and demand of the situation. As Honda is Japanese based organization and it follow the structure with few hierarchal levels and narrow span of control i.e. having flat structure.
Managerial Roles
The managers at Honda practiced in all directions either they continuing in doing all perspectives of managerial jobs i.e. organizing, planning, leading and controlling. Honda arrange training session for their managers for their penetration in the system become polished
i)Planning. In planning, the managers at Honda set the specific goals to achieve their task and decide all alternatives how to best achieve them. E.g. whenever they plan to import Accord, they set the goals that how it can be suited to our environment.
ii)Organizing In organizing managers at Honda allocate and arrange human and non-human resources so that their plan can be carried out successfully. Like it allocate the machinery and advanced technology in production unit that must be a relating to
iii)Leading Managers at Honda influence others work behavior. Labours and subordinates to get optimum task achievement even by satisfying them accordingly.
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iv)Controlling Hondas manager regulates organizational activities so that actual performance conforms to expect organizational standards and goals e.g. Hondas goal is to achieve customer satisfaction ratio so that can evaluate overall performance of their after sales service centre regularly.
Chairman
CEO
Finance
Marketing
Supply chain
HRM
Quality
R&D
Procurement Imports
Warehouse
Production Control
RM Local
SAP
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Customer
Dealers
Suppliers
Procurement 26
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PRODUCT REVIEW
Honda Civic Performance Honda heightens your driving enjoyment with a rare combination of spirited engine response and exceptional fuel efficiency. This ideal balance is achieved by Honda's nextgeneration 1.8-liter SOHC i-VTEC engine - the first entirely new Civic power plant in 17 years.
Honda City
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Honda Accord Enter the cockpit of the New Accord and bask is satisfaction. It engages the senses and attends of the Driver's needs. With an array of innovative feathers, it offers superior comfort and convenience.
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PLACEMENT
Market Review. Looking at the following figure, it shows the distribution of Honda cars. These cities which have been pin pointed out are cities. Some of these areas provide 3S dealerships which basically means sales, service and spare parts on the other hand a few just provide 2S dealership which is service and spare parts.
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Let us list the names of the stores which are available in these areas. FAISALABAD Faisalabad Honda Classic Lounge Pak Plaza,Blue Area 1019 Fazal Haq Main Canal Bank Road, Faisalabad. Tel: (041) 731741-3 Fax: (041) 731741 Gujranala Honda Gujranwala G T Road, Gujranwala. Tel:(0431) 893481-2 Hadraaba Honda Palace Shahbaz Town, Jamshoro Road Hyderabad. Tel: (0221) 641178-9 Fax: (0221) 641519 Islamabad Honda Classic Plot 179, I 10/3, Industrial Area, Islamabad. Tel:(051) 4438801-02 Honda Quaideen 2,33-A-2, PECHS Karachi. Tel: (021) 4556071-3 Fax: (021) 4554644 Rd. Islamabad. Tel:(051) 2278553, 2278528 Fax:(051) 2278553 Karachi Honda Defence 67/1, Korangi Road, Near HINO Circle, Karachi. Tel: (021) 5805291-4 Honda Drive-In 118-C, Rashid Minhas Road, Karachi. Tel: (021) 4992832-7 Fax: (021) 4992823 Email: allibhai@hotmail.com
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Fax:(051) 2278553 Honda Sharah-e-Faisal 13, Banglore Town, Sharah-eFaisal, Karachi. Tel: (021) 4527070, 454
E-mail: allibhai@hotmail.com Honda Fort 32 Queen's Road, Lahore. Tel: (042) 6314162-3
Fax: (042) 6361076 Honda S.I.T.E. C-1, Main Manghopir Road S.I.T.E, Karachi. Tel: (021) 2577411-2 Fax: (021) 2577412 Email: hondsite@cybernet.pk Honda Yakata 202-Y Commercial Area, DHA Lahore. Tel: (042) 2122200-3, 8444491-94 Fax: (042) 5892437 Honda South 1B, Sector 23, Korangi Industrial Area Karachi. Tel: (021) 5050251-4 Fax: (021) 5064599) 4526758 Email: hsf@gem.net.pk Lahore Honda City Sales Honda Point Main Defence Road, Lahore Cantt. Tel: (042) 5700994-95 Fax: (042) 5700993 Mir pur Honda Canal 13-B, K Block, Shokat Khanum 75 B, Block L, Ferozpur Road Gulberg III Lahore. Tel: (042) 5881881-3 Fax: (042) 5831147 Johar Town, Lahore. Tel: (042) 5314168 Fax: (042) 5314169 Bypass Email: hfort@nexlinx.net.pk
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Honda Empire Mian Muhammad Road, Quaid-e-Azam Chowk, Mirpur Azad Kashmir.
Sargodha Honda Citrus Field 7 KM, Lahore Road, Sargodha. Tel: (048)
Multan Honda Breeze 63, Abdali Road Multan. Tel: (061) 588871-3 Fax: (061) 588874 Email: hondabreeze@brain.net.pk Peshwar Honda North Main University Road, Peshawar. Tel: (091) 854901 Fax: (091) 854753 Rawlapindi Honda Center 300- Peshawar Road, Rawalpindi. Tel: (051) 5564525-28 Fax: (051) 5564524 Sialkot Honda Falcon Pakki Koli, Daska Road, Sialkot.
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Ho n d a Assem b ly Plan t
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Custom er
Dealers
Suppliers
Procurem ent
61
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Main Plant
Local Plant
Asian Suppliers
Warehouse
Suppliers
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Competitor s analysis. Firstly we need to indentify our competitors. Looking at the overall automobile industry we find that y y y y y Suzuki Toyota Mitsubishi Mercedes BMW
Basically if we talk generally we can say that competition is based on the following few factor such as y y y Profit Accessible technology Globalization
However, we are going to talk about Toyota and Suzuki where Suzuki is the biggest competitor when it comes to sales and Toyota when it comes to quality. Lets talk about Suzuki first. Suzuki is basically from Japan and is a low budget car. If we look at the business portfolio we will be able to see that the products that are under Suzuki are as follows y y y y y Bolan Mehran Jeep Vitara Liana
All these cars if we look at them are cheap as compared to Honda and if we look at their quality, it is not comparable to the quality which Honda provides. Even though if we look at the business portfolio that the company has is far much larger then Honda and intends to be the cash cow in the BCG growth-share matrix.
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On the other hand Toyota tends to be comparable as a competitive company when quality comes in. Toyota. As a competitor Toyota has the following products in their business portfolio y y y y y So these are the competitors of Honda however, as per the interview we took from Ms. Maria the executive of marketing and planning division of Honda told us that Toyota is giving them a tough time as a competitor due to its production efficiency. Camry Altis Hilux Vigo
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Dealers
Atlas Honda car has 11 authorize dealer all over the Pakistan
3S Dealerships (Sales, Service, Spare Parts) 2S Dealerships (Service, Spare Parts) 1S Dealerships (Spare Parts)
Region Karachi
Address
Phone No.
Fax No. (021) 4526758 (021) 5805294 (021) 2577412, 2565056 (021) 5064599 (021) 4992825 (021) 4554644
13 Banglore Town, Main (021) 4547113-6, Shahrah-e-Faisal, 4527070, 4527373, Karachi 4527474, 4527575
Honda Defence 67/1, Korangi Road Near (021) 5805291-4 HINO Circle, Karachi Honda Site C 1, Main Manghopir Road, SITE, Karachi 1 B/1, Sec. 23, Korangi Industrial Area, Karachi 118 C, Rashid Minhas Road, Karachi 233-A-2, PECHS, Karachi (021) 2577411-2, 2564926, 2570301, 2569381 (021) 5050251-4 (021) 4992832-7, 4992824 (021) 4556071-3, 4556510-12
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Region Hyderabad
Address Shahbaz Town, Jamshoro Road, Hyderabad 75 B, Block L, Gulberg III, Ferozepur Road, Lahore
Lahore
Honda City Sales Honda Fort Honda Point Honda Canal Bank
(042) 5841100-06
(042) 5841107
32 Queens Road, Lahore (042) 6314162-3, (042) 6309062-3, 6313925 6361076 Main Defence Road, Lahore (042) 5700994-5 (042) 5700993 (042) 5300841
13-b,Block K,Johar (042) 5300822-33/ Town, Shaukat Khanaum 7029360-61 Bypass, Lahore (051) 4438801-06
Islamabad
Honda Classic Plot 179, I 10/3, Industrial Area, Islamabad 300 Peshawar Road, Rawalpindi 63 Abdali Road, Multan
(051) 4436446
(051) 5564525-8
Multan
Honda Breeze
(061) 4588871-3, 4548881, 4542862 (041) 8731741-4 (041) 2603449, 2603549, 5500897, 5508297 (048) 3225186-187
Faisalabad
Honda Faisalabad
Sargodha
(055) 3893481-3
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Region Sialkot
Address Phone No. Pakki Kotli, Daska Road, (052) 3252000 Sialkot (058610) 51501, 1032701
Mirpur
Honda Empire Mian Muhammad Road, Quaid-e-Azam Chowk, Mirpur Mirpur A. K. Honda North Main University Road, Peshawar
Peshawar
karachi
quetta
Islam abad
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Conclusion
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