Honda vs GM
Why one succeeds and the other struggles
Finance Report• Post University • May 6, 2012
Honda motor company is not your average Japanese car manufacturer. Originally is was known for motorcycles. Honda has managed to elude the dominate keiretsu system in Japan and become one of the dominant automobile manufactures in the world.
Honda's strategy is to create value through expanded sales via innovation in research and manufacturing. Instead of having one large manufacturing plant Honda uses an idea of "manufacturing products where they are sold". It is a very lean way of working. In this way manufacture is increased in areas where sales increase. This practice has led to over one hundred manufacturing plants in over thirty countries, a process they call "globalization". They also are guided by a commitment to the future. This ideal is reflected in several ways. Low emissions vehicles are one example, anther are manufacturing plants that are focused on environmental friendliness as well as efficiency and quality.
The strengths, weaknesses, opportunities, and threats, are quite dynamic for General Motors and each can be integrated into another. The main problem with General Motor's plants in the United States is that they have too much capacity, which in turn causes them to make bad long-term business decisions. Other major threats have to deal with worker dissatisfaction. The dissatisfaction of the workers is not only in America, but is occurring globally.
The main weakness that General Motors has been battling for the last century is employee satisfaction which leads to constant strikes throughout the corporation. Managers have been battling with employees and unions on keeping wages, hours, and retirement plans fair. General Motors is currently spending a large proportion of their earnings on health care for their retirees as compared with newer automakers. In the past, General Motors has offered generous plans to...