Individual Interim Strategic Audit Draft
In the past few decades, the automobile market has remained dominated by the most popular automobile manufacturers like the Nissan Company (formally Datsun) and Toyota Company with other players such as Honda taking advantage of the intense competition existing between these companies. Honda Motors began its operations in 1946. It has grown to be one of the largest motorcycle producers in Japan. The fact that the company can maintain successful operations not only mean that its products are good (Arora, Anshu, and John 24), but also a demonstration that the strategic audit of the current performance is synchronized with other performance plans to avoid failures.
Honda Motors has a gross profit margin of 29.24 percent, which the company uses to pay its fixed expenses including administration and building costs. The company’s operating margin is about 8.19 percent while the profit margin runs at 5.13 percent. With the kind of competition in the automotive industry, Honda Motors is currently working on the strategy of moving into a new product division called the Honda Jet. With the new product division, the company is optimistic about its ability to maintain global viewpoints and supply products of high quality at reasonable prices.
The company will meet this objective by respecting consumers and exploring the three joys – buying, selling, and creating (Barney and William 13). It is also expected that the environment in which the company is operating will face challenges, and therefore, the company management must accelerate efforts to strengthen the environmental policies while maintaining the uniqueness of the company. In general, the company’s operations will become successful following the establishment of advanced manufacturing systems, extended capabilities, promoting the foundation for global market growth, and strengthening individuals’ commitments to reduce environmental pollution.
Arora, Anshu, and John R. McIntyre. Global Business Transcendence: International Perspectives across Developed and Emerging Economies. , 2014. Print.
Barney, Jay B, and William S. Hesterly. Strategic Management and Competitive Advantage: Concepts and Cases. , 2014. Print.