I, Preface:
In business today, a firm can have a good finance, good technologies nevertheless they can't have the success without good strategic management. A company or a business has good proper management. They will find out the methods to control and develop the business or corporation.
Strategic Management is a process refers to the answers of three questions:
* What exactly are your company's goals?
* What is the ultimate way to manage and meet target's requirement?
* What are the things you need in proper management process?
Strategic Management is started from identifying the goals of the business, source of information and necessary regulations to put into action the focuses on which receive. This process also includes how to promote and innovate products or service of the business.
In my opinion, Strategic Management with a producing company is an activity which includes
* Strategic in quality management of products, this process help a can provide best products to the clients. Through it, the company can attack new clients.
* Strategic in product management, this process includes auditing, examining and taking care of financial problem in the bank.
* Strategic in sales and marketing, through this technique the company can find out about their problem in customer's romantic relationship, what they did well and what they need to change.
In my assignment, I've research on SWOT and 5 forces which make reference to strategic management of your producing car company. I think that SWOT and 5 forces are used in a specific industry and overall economy and they influence to business status and procedures of Honda that I have researched.
II, Release:
In March 2005, Honda Vietnam has received the certificate of Ministry and Planning and Investment Portal of Vietnam to permit Honda produces and assembles automobiles in Vietnam.
This can be an important record of Honda Vietnam; it marked the introduction of Honda Vietnam in Vietnam market. After one year and five months, Honda Vietnam has successful built factories and development agency network. The company has completed the training programs, service and safe driving a car for employees and real estate agents released first car model in August 2006.
Since this time, Honda Vietnam isn't only known as engine produces with product reputation, but also a maker of motor vehicle prestige in Vietnam market. Make of Cars:
Established: 2005
Office: Phuc Thang, Phuc Yen, Vinh Phuc province.
Capital: Around $ 60 million
Area: 17. 000m2
Labor: 408 People
Capacity: 10, 000 autos per year
Automotive manufacturing facility has equipment and equipment like the Honda plant in other countries with criteria centering especially on quality, safe and friendly environment. In addition, the plant also is equipped with engine set up lines with the desired steady localization of products Automobiles.
In my project, I will focus on 2 problems SWOT and 5 makes and write about how exactly it assist decision making and business of Honda Vietnam.
III, SWOT examination:
In this part, I'll reveal SWOT of Honda Vietnam which used to equate to their competitors in Vietnam market.
A, SWOT analysis of Honda Vietnam:
1, Talents:
* Vietnam has a huge population therefore, Honda has a huge market to provide vehicles and recruit employees.
* Honda has good brand in Vietnam market so; it helps the company to sell well in Vietnam market.
* Honda Vietnam specializes in advanced technology, high quality and course leading safety.
* Honda always targets world-class quality autos, even the smallest accessories.
* Honda's products (cars) have good quality and design. Furthermore, they have realistic prices therefore they will attract more customers.
* Honda's autos have good swiftness and power nonetheless they consume low petrol therefore, it is suitable with Vietnam traffic numerous traffic jams. Furthermore, it plays a part in make lessen pollution.
* Honda always attempts to build up and research new technology therefore, they will make their vehicles better with good speed, electric power and low gasoline.
* The company has some campaign programs for customers such as: Customers that has received Honda Civic will obtain VISA Debit cards issued by a standard bank with value is 20 million VND.
2, Weaknesses:
* Honda Vietnam targets producing and exploring motorbike too much therefore they can not spend much time for cars.
* There are only two models automobiles that produced by Honda Vietnam, Honda Civic and Honda CRV so the customers have less choice than others brand.
* Honda Vietnam has accorded to father or mother company of Honda in Japan. Honda Vietnam must flow the policies of Brain Company therefore; they can not apply their strategies in Vietnam market that haven't allowed by parent company.
* The first factory car of Honda has generated in august 2006 therefore Honda Vietnam has less experience than some rivals such as Toyota, Nissan, etc.
* Vietnam is one of countries where have high duty with car therefore, the purchase price must be high in Vietnam market.
* Honda takes a first deposit for purchasing vehicles but Nissan and Toyota don't do that therefore, it is a cons of Honda.
3, Opportunities:
* Make of Honda has been created in the pass because motorbike of Honda is very famous in Vietnam market therefore they don't really need enough time to make brand so, when vehicles of Honda Vietnam has produced and go to market, the customers will have more trust with this brand. Furthermore, when Toyota (the biggest competitor of Honda) has many problems and must remember many cars.
* In the foreseeable future, with good technology, Honda can concentrate on designing and applying new product with good quality, affordable price and low gasoline.
* Improving the quality of product, services and customer romantic relationship as well as building caring centre for customers.
* Honda also has opportunities in producing the gasoline efficiency according to the increase of energy price.
4, Risks:
* Economic crisis will affect directly to business status of Honda. It is very serious because, when problems can make the bad sale and it also influences to Honda's faithful customers.
* There are several rivals in Vietnam market such as: Toyota, Nissan, CuuLong, etc. They try to attract and engage customers therefore, Honda cannot control the marketplace.
* Overall economy can make the USD charge the value therefore, price of vehicles of Honda will be charged. It'll be difficult for customers. Honda can lose the marketplace.
* The federal government has some insurance policies about increasing tax of autos and energy therefore, it will have an impact on to business status of Honda.
IV, Five Forces of Honda Vietnam:
1, Socio-cultural Causes:
Analysis of societal fads is very important because, almost of stakeholders are participants of society and some value may bring from modern culture therefore, it generates opportunities and threats of a business, for example: whenever a tobacco company makes more pollution, they'll be rejected by population therefore their business status will be down. Furthermore, firm can reduce the risk if indeed they have good relations with society.
In my assignment, I have explored and analyzed to understand how interpersonal cultural is important and exactly how it influences to Honda Vietnam.
Vietnam has nearly 89 million, we have a big market. Furthermore, the living of individuals is increasing especially in cities such as: Hanoi, Hochiminh city, Danang, etc. therefore, demand of automobiles is increasing however, traffic in Vietnam is not good therefore it is a hard thing with customers.
Vietnam is a developing society; it has many opportunities but also includes menace. Vietnam is socialist country. Politics system has made the system only one political party (the Communist Get together of Vietnam) authority. This thing will make some difficult things for Honda Vietnam and more companies have international investment.
Socio-cultural creates a good for business of company. Government of Vietnam snacks fairly with all of company. Vietnamese business people always bottom part on supporting of federal with long-time subsidized, therefore, business which always require the aiding from government. It really is negative thing.
Through some regulation, policies and regulations government has regarded the demand of the business such as Honda would like to decrease taxes. It is very good for this company.
Social-cultural of Vietnam also creates a fair competitive therefore, Honda Vietnam will have significantly more than opportunities.
Social-cultural forces relate to population and culture problems of Vietnam and how it influences to business position of Honda Vietnam. In addition, it helps Honda Vietnam pay attention to enhance their reputation and long-term plans.
2, Economic pushes:
Economic forces include some factors which have an effect on to organization action and its performances such as: GDP, inflation rate, occupation rate, demographic changing, financial regulations and financial market, etc. In my own assignment, I'll research on Vietnam market to discover information which effect to Honda Vietnam.
Vietnam economic in '09 2009 was quite good in the framework of global problems. GDP is increasing with more than 6%. Exports were over 60 Billions USD. Financial and credit systems were quite stable. These things clarify that: current economic climate of Vietnam is still quite good therefore Honda Vietnam and many companies will not meet too serious problems.
However, inflation of Vietnam was high in 2009 about more than 15%. This thing will impact to Honda Vietnam because the corporation must pay high interest. In addition, low interest can make investment efficiency because, they can be less costly to financing.
In 2009, Vietnam economy has seen many changing in oil price, economic and financial. They effect to price of Honda Vietnam product and make the demand of products of customers can be reduced.
Besides that, Vietnam and many country count too much on USD and Vietnam monetary is inadequate therefore, it creates some difficult what to Honda business such as: Honda Vietnam want to sell their product and receive USD because USD price is steady but Vietnamese customers want to buy by VND because, exchange rate of USD per VND is too much.
Economic pushes have many important missions in tactical management of Honda. It can help Honda can keep an eye on and forecast in home and event international economic.
3, Technological Pushes:
Good scientific creates a fresh and good product, service and event an industry. Technology includes internet, personal computers, machines, telephones, and technology advancement, etc. Technology refers to the data of making use of, producing and delivering product and service in a country. Vietnam technology is very important with Honda Vietnam because, there are extensive good technologies Vietnamese employee will be advanced and have many knowledge in producing.
In recent years, many companies, organizations and corporate have tried to invest more in technology. However, they tried to purchase purchasing and increasing hardware rather than build good software. In addition, they only buy technology of developed countries somewhat than produce, refurbish and improve, etc.
Although invest in to hardware however, about 36% of companies are asked still use the technology from 1980s. This thing is very bad because, Honda Vietnam will meet some difficult problems when they want to build more factories.
In addition, the co-ordinate between international companies and domestic companies is bad therefore it make the problematic for transferring new technology.
Technology is very important with most of market sectors and Honda Vietnam is not out of this thing. It helps the company to save time and money and participate in several kinds of several kind of technology can help the company get more revenue.
4, Political/Legal Forces:
Vietnam federal government has many insurance policies, laws and regulations and legalization to protect and undertake for companies who may have business in Vietnam including domestic and international companies. the government guarantees that they will not control and help any private company therefore, it creates a fair competitive market in Vietnam. Vietnam federal always encourages the investment to many businesses. Furthermore, Vietnam has a stable policy. It is an important things to appeal to the overseas investment; therefore, overseas and domestic investors want to invest more in Vietnam. This thing will be an good thing about Honda Vietnam because they have more investment to develop their technology, market and business. Vietnam government always applies the same law, policies and legalization with all of companies therefore, it ensures for Honda can run their business well. Besides that, Vietnam has a huge market which is a good place which Honda may use to become listed on in other market segments such as: China, Laos, Malaysia, etc. because our geographic is great and it is easy to copy product to numerous countries in Asia, Southeast Asia, ect.
5, Competitive Causes:
Vietnam is an attractive investment therefore, there a wide range of foreign companies spend to produce their product in Vietnam without Honda such as Toyota, Nissan, CuuLong, etc. However, Toyota is the biggest competitors of Honda because; they stay in Vietnam very long time ago. They also have good technology and individual source of information. Their product is good and realistic price. In addition, Vietnam government promises a good competitive market therefore; they will not help any business. Honda must remain competitive by your-self. However, initially of 2010, Toyota has a huge problem and they must remember more than 1 million automobiles. It is a crisis with Toyota but additionally it is a blessed thing with Honda because Toyota reputation will be down so, if Honda has good strategies, they will control the Vietnam market.
In bottom line, competitive forces are extremely useful in the present day business. It helps the company as Honda can specify their SWOT and find out the nice way to compete. In addition, it also helps the company can look at the future and event deal with turmoil.
