Strategic Management of Honda in Vietnam

St respectgic tensenesssing of Honda in VietnamI PrefaceIn line of merchandise concern today, a familiarity can hold a entire finance, hot technologies but they cant get the success without dandy strategic debatement. A partnership or an organization has total strategic attention. They testament abide by out the methods to manage and develop the fellowship or organization.Strategic Management is a crop refers to the answers of three questionsWhat be your keep companys targets?What is the best way to manage and meet targets requirement?What are the social functions you need in strategic management process?Strategic Management is started from determining the goals of the company, resource and necessary policies to apply the targets which are given. This process also includes how to promote and innovate products or proceeds of the company.In my opinion, Strategic Management with a producing company is a process which includesStrategic in quality management of produ cts, this process dish out a can provide best products to the customers. by it, the company can polish natural clients.Strategic in product management, this process includes auditing, checking and managing financial chore in the swear.Strategic in sales and commercializeing, through this process the company can know about their problem in customers relationship, what they have do hygienic and what they need to change.In my assignment, I have research on bone and 5 forces which refer to strategic management of a producing cable car company. I think that organise and 5 forces are used in a particular industry and prudence and they affect to bank line positioning and policies of Honda that I have researched.II IntroductionIn March 2005, Honda Vietnam has authorized the license of Ministry and Planning and Investment Portal of Vietnam to aloneow Honda produces and assembles cars in Vietnam.This is an pregnant history of Honda Vietnam it marked the development of Hon da Vietnam in Vietnam market. After one stratum and five months, Honda Vietnam has successful built factories and construction agency network. The company has effected the training programs, service and safe driving for employees and agents released first car regulate in August 2006.Since this time, Honda Vietnam is not still known as drive manufactures with product disposition, but also a manufacturer of automotive prestige in Vietnam market. Manufacture of Automobiles Established 2005 Office Phuc Thang, Phuc Yen, Vinh Phuc province. Capital Approximately $ 60 jillion Area 17.000m2 Labor 408 People Capacity 10,000 cars per year self-propelling manufacturing plant is fit with machinery and equipment similar to the Honda plant in other countries with criteria concentrate especi onlyy on quality, safe and friendly environment. Moreover, the plant also is equipped with engine assembly lines with the desired gradual localization of products Cars. In my assignment, I volition f ocus on 2 problems SWOT and 5 forces and pay off up about how it assist decision making and agate line of Honda Vietnam.III SWOT analysisIn this part, I will write about SWOT of Honda Vietnam which used to compare with their competitors in Vietnam market.A, SWOT analysis of Honda Vietnam(S)trengthsVietnam has a colossal population wherefore, Honda has a prominent market to provide cars and recruit employees.Honda has in effect(p) brand in Vietnam market so it helps the company to sell well in Vietnam market.Honda Vietnam concentrates on advanced engineering, steep quality and class conduct safety.Honda always focuses on world-class quality cars, even the smallest accessories.Hondas products (cars) have veracious quality and design. In addition, they have reasonable tolls therefore they will win more customers.Hondas cars have good speed and power but they work through low fuel therefore, it is suitable with Vietnam traffic with more traffic jams. In addition, it contr ibutes to grant minimize pollution.Honda always tries to develop and research new engineering science therefore, they will make their cars better with good speed, power and low fuel.The company has some promotion programs for customers such(prenominal) as Customers who has received Honda Civic will receive VISA Debit card issued by a bank with value is 20 million VND.(W)eaknessesHonda Vietnam focuses on producing and researching motorbike too frequently therefore they cannot spend much time for cars. in that respect are only two models cars that produced by Honda Vietnam, Honda Civic and Honda CRV so the customers have less plectron than others brand.Honda Vietnam has accorded to parent company of Honda in Japan. Honda Vietnam has to flow the policies of Head Company therefore they cannot apply their strategies in Vietnam market that havent allowed by parent company.The first manufacturing plant car of Honda has established in august 2006 therefore Honda Vietnam has less go ste ady than some competitors such as Toyota, Nissan, and so onVietnam is one of countries where have high tax with car therefore, the impairment must be high in Vietnam market.Honda requires a deposit for purchasing cars but Nissan and Toyota dont do that therefore, it is a disadvantages of Honda.(O)pportunities brand of Honda has been created in the pass because motorbike of Honda is very(prenominal) famous in Vietnam market therefore they dont need much time to create brand so, when cars of Honda Vietnam has produced and go to market, the customers will have more trust with this brand. In addition, when Toyota (the biggest competitor of Honda) has many problems and must recall many cars.In the future, with good engine room, Honda can focus on designing and implementing new product with good quality, reasonable price and low fuel.Improving the quality of product, services and customer relationship as well as building caring center for customers.Honda also has opportunities in exp loitation the fuel efficiency according to the increase of energy price.(T)hreatsstinting crisis will affect directly to business status of Honda. It is very sound because, when crisis will make the bad sale and it also affects to Hondas loyal customers.There are many competitors in Vietnam market such as Toyota, Nissan, CuuLong, etc. They try to attract and engage customers therefore, Honda cannot maintain the market.Economic crisis will make the USD charge the value therefore, price of cars of Honda will be charged. It will be unenviable for customers. Honda can lose the market.The government has some policies about increase tax of cars and fuel therefore, it will affect to business status of Honda.IV Five Forces of Honda Vietnam1. Socio-cultural ForcesAnalysis of societal trends is very important because, almost of stakeholders are members of society and some value can bring from society therefore, it creates opportunities and threats of an organization, for poser when a toba cco company makes more pollution, they will be spurned by society therefore their business status will be down. In addition, firm can decrease the risk if they have good relations with society.In my assignment, I have researched and analyzed to understand how social cultural is important and how it affects to Honda Vietnam.Vietnam has nearly 89 million, we have a large market. In addition, the living of people is increasing especially in cities such as Hanoi, Hochiminh city, Danang, etc. therefore, demand of cars is increasing however, traffic in Vietnam is not good therefore it is a difficult thing with customers.Vietnam is a developing society it has many opportunities but also includes threat. Vietnam is socialist country. governmental governing body has made the mechanism only one political party (the communist Party of Vietnam) leadership. This thing will make some difficult things for Honda Vietnam and others companies have remote enthronement. Socio-cultural creates a favorable for business of company. Government of Vietnam treats fairly with all of company. Vietnamese business people always base on part of government with long-time subsidized, therefore, business which always require the helping from government. It is negative thing.Through some law, policies and regulations government has recognized the demand of the company such as Honda wants to decrease tax. It is very good for this company.Social-cultural of Vietnam also creates a fair hawkish therefore, Honda Vietnam will have more than opportunities.Social-cultural forces relate to society and culture problems of Vietnam and how it affects to business status of Honda Vietnam. It also helps Honda Vietnam pay attention to enhance their reputation and long plans.2. Economic forcesEconomic forces include some factors which affect to organization natural process and its performances such as GDP, inflation rate, employment rate, demographic changing, monetary policies and financial market, etc. In my assignment, I will research on Vietnam economy to find out information which influence to Honda Vietnam.Vietnam economic in 2009 was sort of good in the context of global crisis. GDP is increasing with more than 6%. Exports were over 60 Billions USD. Financial and credit systems were quite stable. These things apologize that economy 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 influence to Honda Vietnam because this company has to pay high interest rate. In addition, low interest rate will make enthronement efficiency because, they are less pricy to finance.In 2009, Vietnam economy has seen many changing in oil price, monetary and financial. They influence to price of Honda Vietnam product and make the demand of products of customers can be reduced.Besides that, Vietnam and many country depend too much on USD and Vietnam mo netary is not good enough therefore, it makes some difficult things to Honda business such as Honda Vietnam want to sell their product and receive USD because USD price is stable but Vietnamese customers want to profane by VND because, supervene upon rate of USD per VND is too high.Economic forces have many important missions in strategic management of Honda. It helps Honda can monitor and forecast in domestic and event international economic.3. Technological ForcesGood technological creates a new and good product, service and event an industry. applied science includes internet, computers, machines, telephones, and technology innovation, etc. applied science refers to the knowledge of applying, producing and delivering product and service in a country. Vietnam technology is very important with Honda Vietnam because, there are many good technologies Vietnamese proletarian will be advanced and have many knowledge in producing.In recent years, many companies, organizations and c orporate have tried to target more in technology. However, they tried to invest in purchasing and up hardware rather than build good software. In addition, they only buy technology of developed countries rather than produce, renovate 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 foreign companies and domestic companies is bad therefore it make the difficult for transferring new technology.Technology is very important with all of industries and Honda Vietnam is not out of this thing. It helps the company to save time and money and participate in several diversenesss of several kind of technology can help the company get more profit.4. Political/Legal ForcesVietnam government has many policies, laws and legalization to protect and undertake for compa nies who has business in Vietnam including domestic and foreign companies. the government guarantees that they will not control and help any private company therefore, it creates a fair free-enterprise(a) market in Vietnam. Vietnam government always encourages the investing to many businesses. In addition, Vietnam has a stable policy. It is an important thing to attract the foreign investment therefore, foreign and domestic investors want to invest more in Vietnam. This thing will be an advantage of Honda Vietnam because they will 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 guarantees for Honda can run their business well. Besides that, Vietnam has a large market and it is a good place which Honda can use to join in other markets such as China, Laos, Malaysia, etc. because our geographic is very good and it is easy to transfer product to many cou ntries in Asia, Southeast Asia, ect.5. agonistic ForcesVietnam is an attractive investment therefore, there are many foreign companies invest to produce their product in Vietnam without Honda such as Toyota, Nissan, CuuLong, etc. However, Toyota is the biggest competitors of Honda because they proceed in Vietnam long time ago. They also have good technology and human resource. Their product is good and reasonable price. In addition, Vietnam government guarantees a fair competitive market therefore they will not help any company. Honda must compete by your-self. However, in the beginning of 2010, Toyota has a big problem and they must recall more than 1 million cars. It is a crisis with Toyota but it is also a lucky thing with Honda because Toyota reputation will be down so, if Honda has good strategies, they will control the Vietnam market.In conclusion, competitive forces are very useful in the modern business. It helps the company as Honda can define their SWOT and find out the good way to compete. In addition, it also helps the company can look at the future and event deal with crisis.