Honda Case Study Honda Motors the Iconic

Honda Case Study

Honda Motors the iconic Japanese automobile and engine manufacturer was the definitive example of the 1980's and early 90's surge of Japanese dynamism and economic muscle. "Only 25 years after the firm entered the automobile industry, the 'industry of industries', Honda had become one of the world's top ten producers" (Mair, A. 1997). Over the last two decades though Japan has been mired in a morass of economic stagnation however, Honda continues its long run success by capitalizing on its ability to adroitly navigate the competitive global automobile landscape with innovation, economic prowess, and a focus on Total Quality Management; "a set of management practices throughout the organization, geared to ensure the organization consistently meets or exceeds customer requirements" (Free Management Library. N.D.).

The continued focus on producing superior products and technology has propelled the company to the seventh position in global vehicle sales with three million units in 2009 (International Organization of Motor Vehicle Manufacturers. 2009). Over the course of the company's history their great success can be attributed to effectively reconciling dichotomies inherent in production, R&D, and management. The Andrew Mair case study on the "Honda Way" limns the strategic importance of reconciling dichotomies as the key to Honda's success.

"Superior operations, proactive care and maintenance, a focus on functional flexibility, wellness and reliability and healthy manufacturing; this is the essence of Honda" (Arnold, P.N.D.). Honda's achievement of this quality standard rests on dismissing the notion of tradeoffs as the only viable strategic solution to polar opposite positions in areas such as: "buyer-supplier relations, work organization, product development processes, and product quality, cost, and delivery" (Mair, A.). The "Honda Way" describes an ongoing process of thought which seeks to develop a best of both worlds solution to problems long considered irreconcilable and mutually exclusive. Of particular interest in the case study is the discussion on positioning vs. developing internal resources dichotomy which has broad implications in "strategic approach to manufacturing, marketing, and product positioning (Mair, A. 1997). Analysis of this overarching dichotomy is best explicated by looking at two instances detailed in the case study; product strategy and production and logistics.