Expansion Strategy of Honda

Expansion Strategy of Honda 1.0 Introduction Honda was started by Soichiro Honda in the 40s after receiving his first contract with Toyota in manufacturing piston ring. Since in school, Soichiro Honda started developing piston ring in order to get a contract with Toyota. His determination had bring Honda into todays success, Fail for so many times, Soichiro Honda never give up and continue his dream and successfully get the contract with Toyota. Honda Motor Company produces not only cars as known generally but also produces track, motorbike, watercraft and those gasoline engines. Instead, Honda is the world largest engine manufacturer (Ronnie, 2009) Started in Japan, Honda expand into many other country using different kind of entry mode includes Foreign Direct investment, exporting, alliances and joint ventures. At first, around 1970s Honda enter into USA market by exporting the N600 which say to be the fastest at that time. In 1976, Honda continues expanding in USA by building car plant is Accord plant in Marysville. Today, Honda has total of three plant in Ohio where the other two is located at Alabama and South Carolina. (Ronnie, 2009) Honda is a successful automobile which is manufacturers lawnmowers, power equipment, motorcycles, and generators. Therefore, Honda has opened its doors to the franchising market. After Honda was franchising it market, Honda was continuous successful in automobile industry. With an establishing brand name of Honda, the franchisees can get the recognition from the customers. They can easily to the franchisees to start doing their business. The Honda franchisees are required to pay Honda franchise at least $250,000. As a return, Honda franchisees are able to list everything you need and want from the franchise deal before you sign the agreement. In addition, Honda franchise also has taken good care to the franchisees. They have provides 2 week training course for new franchise owners. This can able the new franchisees to learn how to operate the businesses. Besides that, Honda Franchise also has give the ongoing support for the franchise through internet and online support, regular visits, newsletters and meetings and so on. The Honda Franchisees can apply their owns concept to the business, but they need to discuss with the Honda franchise first before apply it. In 2010, Harley-Davidson and American Honda Motor Company were announced to be merger as one which is known as Honda-Davidson Motor Company. The merger happened when the American Honda Motor Company was completed purchase of 51% of Harley-Davidson stock. With the merger, Honda-Davidson Motor Company was promised to provide the most comprehensive line of Motorcycles to the customers. The combination of both companies will continue to providing the world with the highest quality motorcycles. Besides that, the new company also exploring the opportunities to provide additional models that combines the best of both former companies. Honda -Nowadays, Davidson Motor Company is the only major U.S.- based motorcycle manufacturer, produces heavyweight motorcycles and a complete line of motorcycles parts, accessories and general merchandise in united state. 2.0 Current Expansion Strategy Expansion strategy may here be referred to market entry strategy which is commonly used by companies to venture and expand their businesses to other country. Before penetrating to other countries market, companies must make sure that they have sufficient financial resources and the nature of the products or services must fit into culture group of that particular country. Having ranked for 3rd largest Japanese automobiles, Honda is able to expand it businesses across Asian countries such as Thailand, Taiwan, China, India and Indonesia.(How To Enter China, 2000) Knowing the importance of international trade, different entry mode strategies have been adopted by Honda in respond to different countries. In Malaysia, Honda has a joint venture company named Boon Siew Honda Sdn Bhd which formed 50/50 between Honda Motor Co. Ltd and Oriental Holdings Bhd. (Boon Siew Honda profile,2012) The joint venture agreement was formed in 2008 which means that Honda has expanded its businesses in Malaysia through joint venture. Aside of Boon Siew Honda Sdn Bhd which solely trades on motorcycles, Honda has expanded its automotive business through joint venture strategy. Currently, Honda Malaysia Sdn Bhd is a joint venture company formed by DRB-HICOM Bhd, Honda Motor Co. Ltd and Oriental Holdings Bhd. ( Honda Malaysia profile,2012) The main reason Honda to use joint venture strategy to expand its businesses in Malaysia is to diversify the business risks. Having said that, using joint venture strategy as an expansion strategy can reduce the risk of by forming coalition with other companies in host country. Besides that, Honda has also expanded its realm using foreign direct investment in Taiwan. A plant was built by Honda in Taiwan in 1961 prior to produce cars and has made Taiwan to become major producers of motorcycle for Honda. (How To Enter China, 2000) This allows the company to export most of the motorcycles to other countries such as China, Europe and Middle East. The main reason Honda to build its manufacturing plant in Taiwan is to reduce exports of motorcycles from Japan. Foreign direct investment has also benefited Honda in a sense that the company can have better control over the plant in Taiwan at the same time achieved economies of scale. In Thailand, Honda practiced foreign direct investment which has formed Asia Honda Motor Co. Ltd in 1964. (How To Enter China, 2000) The plant set up in Ayutthaya, Thailand aimed to produce motorcycles and export to Asian countries. In addition, Thailands plant has more production capacity which has contributed to major exports across Asia. Particularly in Thailand, Honda has obtained a market share more than 60%. This is because the Honda brand recognition in host country is high and this has led to local support for Honda. In China, the entry strategy proposed by Honda is somewhat unfamiliar to other countries. Honda has used equity joint venture strategy which has formed 2 joint venture companies named GuangZhou Honda Automobile Co. Ltd and Dongfeng Honda Engine Co. Ltd respectively. (How To Enter China, 2000) In the meantime, Honda has 50% of stake in each of these joint venture companies which has allowed Honda to have partial control over these two companies. In recent years, sales of Honda cars in China were terribly declined by 5 % compared to the time the company first entered China. The declining sale was caused by the high demand of low-cost cars produced in China. Another reason was due to the existing rivalries in China which consists of several big players such as Toyota, Nissan and Mercedes. Generally speaking, Honda is adopting low-risk expansion strategies in the first place to evaluate market respond of a particular country. After building up the brand recognition, the company will decide whether to expand further in that particular country. This can be seen when Honda formed a joint venture company in Malaysia to market its motorcycles to Malaysian. After assessing the profitability of the products, Honda started to sell luxury cars such as Honda City and Honda Civic. This could have helped Honda to reduce the risk of losing everything proposing a joint venture strategy in the first place. Foreign direct investment is used by Honda in Taiwan and Vietnam to increase the production of motorcycles and motorcars to increase exports. At the same time, increased production will help Honda to fulfill the demands of other importing countries. 3.0 Future Expansion Strategy As mention in the previous part of the assignment we can see Honda with extraordinary expansion strategy has allowed the company group to triumph in the highly competitive world market especially against domestic competitor. These expansion strategy though practical and effective are in some way lack of aggressive to compete with other automobile MNC (multinational corporation). Since Honda is originated from Japan we decided to compare Honda with its domestic competitor such as Nissan and Toyota. For decades Honda has been compete with Nissan and Toyota domestically and abroad, however till this day Honda still maintain the position of Number 3 right after Toyota the first and Nissan, second. This comparison allowing us to realize that the successfulness of Honda is still in behind this two multinational automobile giant. As such below we will provide some entry modes strategies for future expansion for Honda based on some global market that we have analyses. 3.1 South Korea: An overview Take Korea into consideration. Honda has already exporting cars to Korea for a decade and however the sales there are always below the profit margin until Honda are no longer expecting high returns on Korea market. In actual fact, not only Honda are doing unwell in S.Korea most Japanese MNC had a hard time penetrating S.Korea market due to war history between Korea and Japan to be the main reason why Korean are less relying on Japanese products. However based on our knowledge Korea is a very potential market, and Honda should use joint venture in Korea to triumph where other Japanese competitor failed. Why South Korea? There are some facts that indulge all investors in the world to invest in South Korea market. South Korea is the worlds largest democracy among the strongest emerging markets in all business field. Furthermore, it has liberalized economy with 300 million in the middle class bracket, with well matured financial and securities market and time-tested judicial systems. Apart from that, Seoul capital of South Korea is growing with enormous speed to compete with world most successful city including New York and London, financially. With the sound potential of the market, let us look at the action of the government of South Korea, firstly it is a WTO member committed to providing opportunity to the global market. The Korean Government is constantly undertaking reforms in every sector with Infrastructure Sector receiving Governments fullest attention, the S.Korea government also permits foreign investment virtually in every sector of the economy. Majority foreign equity, even up to 100 per cent in some sectors, is encouraged and special investment incentives are provided. In short South Korea is a potential Market that Honda should not overlook due to the points below, Large pool of educated land expertise of manpower in South Korea. Disposable income is continuously increasing with the economy growing at more than 8.5% p.a. Cities booming with world class integrated infrastructure. South Korea has potential to attract more than US $ 100 billion over next five years. Potential for creation of near 1 Million direct and indirect jobs each year. As for now that the certainty of South Korea was an expansion market. A suitable partner must be recognized in Korea to allow the joint venture to be successful. Our group varies in suggesting a partner but agreed that Asia motor is among the best to Joint Venture with Honda to create a Asia-Honda venture. We select Asia motor for a numerous reasons, first its engineering capability, Asia motor founded in 1965 is one of South Korea most highly reputable automobile industry focusing in medium and big sizes vehicle is the best partner for both Asia Motor and Honda to penetrate into a new market. Beside that, relevance and salience of Asia Motor brand is also one of the core reasons in selecting Asia Motor, furthermore its company distribution network as of since 1965 have been matured and controlling large traffic in sense of party needed in a successful network. Lastly the company also announces with well function internally such as low turnover rate. These points allowing us to believe that Asia-Honda ventures is going to turn out fine. As such we recommended Joint ventures in South Korea due to its potential and Honda future development. 3.2 Exporting Exporting is not a new term for Honda. In fact Honda had been an expert in exporting worldwide where any place u name it, as long as there is demand, shipment of Honda cars can directly send to your dealer or home in no time. Using exporting as main expansion strategy for Honda is a success for many decades, however they have always overlook what their competitors are doing. Toyota are using this expansion strategy as well an if Honda is an expert in exporting cars, Toyota is a grandmaster. When we suggest export as Honda future expansion strategy we realizes the fact that Honda are doing it now, good, but not good enough. In this case we suggest that Honda uses this expansion strategy, exporting in a whole new market penetration rather than the traditional car/motor vehicle market. We suggest aircraft market penetration worldwide. If we look at Honda current research on car, we will discover that Honda had a very success researched on hybrid and fuel efficient engine currently focusing on cars and motor vehicle, In fact, Honda GX NGV is termed as the cleanest car on earth as far as centralized agitation engines are concerned, apply that to an aircraft and we have a whole new level of airplane. Competition in the aircraft industries are High, dominated mostly by Boeing and follow up by airbus it will never be easy as it suggest in the report, but chances are there to expand worldwide in a whole new categories of market. Suggesting in exporting in aircraft is not bold for Honda there has been a history for Honda in aircraft development since the 80s. According to the data we acquired on the internet and book research, Honda had been study small sized business jets in the since 1980s, using engines from other manufacturers. TheÂÂ  Honda MH02ÂÂ  was fabricated and assembled at Mississippi State Universitys Raspet Flight Research Laboratory in the late 1980s and early 1990s. The MH02 was a prototype using composites with an organic matrix. Since that a prototype of Honda Jet had been on the development. The Honda Jet made its maiden flight in December 2003. It debuted to the public at theÂÂ  EAA Air Venture air showÂÂ  inÂÂ  Oshkosh, Wisconsin, in July 2005. On July 25, 2006, Honda returned to Oshkosh to announce it would commercialize the Honda Jet. Honda established theÂÂ  Honda Aircraft CompanyÂÂ  to seek both type and production certification of the Honda Jet. Production is to take place in the United States. The company estimated the sales would be around 70 to 100 per annum. The certification of aircraft (FAA)ÂÂ  is expected to follow around August 2011. Delivery of the first plane is planned for the third quarter of 2012. In recent event, the Viking pioneers had been using Honda aircraft engine as their Viking aircraft engine and it had been a huge success and it is considerable that a Viking aircraft engine is the only modern and reasonably priced aircraft engine available today. Honda has reach a stagnant growth in cars and automobile manufacture worldwide. If Honda start exporting aircraft as their new expansion strategy it might became one of the competitor for Boeing and triumph in a whole new market level. 3.3 Strategic Alliance Honda should apply strategy alliance as its future expansion strategy to enter the new market. Through strategy alliance, all the automobile company can work together to achieve same goal by using the least resources as they share the resources, information, capabilities and risks to achieve it. One of the successful examples by using strategy alliance is Yahoo and Sina. They teamed up together to offer auction service in China. This partnership will leverage both companies respective users bases as Sina has 83million registered users while Yahoos expertise and technology to support the auction platform. Therefore, Honda need apply strategy alliance with others automobile company such as Nissan, Toyota, Mercedes-Benz and others. Through this, Honda and others automobile company can share their technique knowledge to resolving the specific problem or avoiding the basic mistake, develop a better function of car, design of car which better than before. For examples, Honda recalling over 172,000 vehicles because of door latch issue during July, 2012. Furthermore, Honda also can use the strategy alliance to institute of technology campus or college, so that Honda might not face lack of labor force problem in future. Honda can recruit the potential student as their technician after they graduate directly. It might not let the potential technician employ by others automobile company if Honda has the opportunities to do so such as having contract to the potential students by providing scholarship to them. Besides, institute of technology campus or college can provide the specific program which require by Honda to train the student so that student is more familiar to Honda company job scope after they graduate. One of the examples is HP is partnership with UoPeople (university of the people), which provides UoPeople students the opportunity to apply for internship to work with the HP Catalyst Initiative. 4.0 Conclusion Globalization is a compulsory for every company in order to be able to stay competitive in the market. Those without it can be easily kicked out from the market. Every bank in the world is somehow connected even though they are from different company. Two different companies with different culture can merger in order to gain win-win profit. This is why globalization is important. Honda is also the same. In order to improve the Research and Development for cars in China, Honda has joint venture with GS Yuasa Formalize Li-Ion. Successful expansion had make the success of Honda today. Every country has its own culture and government rules. Different approaches might be useful to one and not to the other. hence, it is important to research on the specific country before using different expansion strategies into the country.To conclude, sometimes different cultures, different norms and different rules and regulation might result in conflict. However, foreign market is much more beneficial to invest in compare to the local market. Is tougher, and more challenger but more profitable.

Components of Open Marriage & Polyamory and the Ethics Thereof Essay

In America, the values of monogamous, heterosexual marriage are drilled into the fabric of the society – so much so that the prospect of any other setup becomes virtually unthinkable. However, in an ever-evolving semiosphere, these other setups are emerging from their hiding place in order to find a forefront spot in contemporary culture and establish themselves as legitimate lifestyles. Education and understanding become paramount as new ideas and formations appear, necessitating tolerance and even acceptance. One of these new formations is what’s known as an â€Å"open marriage,† in which one or both members of a dichotomous marriage seek sexual satisfaction through extraneous partners. Anyone who has ever truly invested their emotions in a relationship might look at this setup with a skeptical, even disgusted eye, and wonder how the marriage could last when sexual exclusivity is not maintained, but regardless, an estimated 6% of married couples are involved in open marriages and are perfectly content to be. â€Å"While many of today's adherents are aging swingers from the old school, a new generation - well organized and committed to legitimizing a lifestyle -- continues to push traditional notions of marital fidelity by having sex with people other than their spouses† (Goldman). A second lifestyle is called â€Å"polyamory,† meaning â€Å"many loves†. In these relationships, one or more members will â€Å"jointly date† and establish emotional connections with other people. Their original lover is called their â€Å"primary,† while everyone else is considered â€Å"secondary†. Polys – as participants are sometimes called – seek to experiment with human’s seemingly endless capacity for love and pursue deeper forms of self-discovery. Originally, marriage ex... ...nd Koray Tanfer, comps. Journal of Marriage and the Family: Sexual Exclusivity Among Dating, Cohabiting, and Married Women. Brigham Young University, Battelle Memorial Institute. 10 May 2008 Betsworth, Roger G. Social Ethics: an Examination of American Moral Traditions. 1st ed. Westminster John Knox P, 1990. 99-103. Goldman, Russell. "Are Open Marriages More Successful?" ABC News. 10 Aug. 2007. 07 May 2008 . Hesse, Monica. "Pairs with Spares." Washington Post. 13 Feb. 2008. 07 May 2008 . O'Neill, Nena, and George O'Neill. Open Marriage: a New Life Style for Couples. Avon Books / the Hearst Corporation, 1973.

Baker v. Carr (1962)

In 1962, the US Supreme Court had decided over the Baker v. Carr case. The Baker v. Carr case was a landmark US Supreme Court case which at last withdrawn from its political question doctrine to come to a decision about the reapportionment concerns. The said case was brought up by the urban voters in opposition to the Tennessee Secretary of State and Attorney Gen. in the United States District Court of Middle Tennessee. Tennessee was unsuccessful to reallocate the state legislature for about 60 years in spite of the growth of the population and redeployment.Charles Baker was a voter who filed a case against the state-and Joe Carr was a state officer who was in command of elections- in federal district court. Moreover, before the US Supreme Court gives their decision about the case, majority of the legislative districts throughout Ohio and in several states didn’t have the same numbers in terms of their population rates (see â€Å"Baker v. Carr†. The Columbia Encyclopedi a, Sixth Ed. P. 3865, 2004). This would definitely signify that a representative may possibly represent about 100,000 populations in each district whereas the others may possibly represent 500,000.In Ohio, every country had its own right to have a legislator in the Ohio government prior to Baker v. Carr. During 1960, Franklin County had more than 300,000 inhabitants whereas Vinton County had merely 11,000 populaces. In the previous system, every country has a legislator but in Baker v. Carr case, each county did not longer have the right to receive a legislator (see â€Å"Baker v. Carr†. OhioHistoryCentral. org, 2006). The focal points of this study are to:(1) know the historical background on Baker v.Carr case;(2) discuss the facts of the case and its court’s ruling and;(3) be aware of the impact of Baker and Carr case on American government and society.Discussion A. Historical BackgroundThe complainant Charles Baker resided in Shelby County, Tennessee- the county whe re Memphis is situated- and was a Republican. Baker’s protest was that even though the Tennessee State Constitution necessitated that legislative districts be redrawn after 10 years as stated by the federal survey to give districts of substantively even inhabitants, , Tennessee was unable to redistrict since from the population count during 1900.During the court case of Baker, the district of Shelby County-where Baker resides- had more populations just like other rural districts have. Baker’s argument pointed out that this inconsistency caused him unable to have the â€Å"equal protection under the laws† as stated by the Fourteenth Amendment. On the other hand, Joe Carr was litigated in his status as the Secretary of States for Tennessee. Joe Carr did not set the district lines because it was done by the state parliament but then, a case was filed against him as the person who was the most liable and accountable for the district maps’ publication and for conducting elections in the state.The State of Tennessee claimed and disputed that legislative districts were fundamentally political and not judicial as had been engrossed by a number of Court’s opinion in Colegrove v. Green in 1946 which Justice Felix Frankfurter announced that: â€Å"Courts ought not to enter this political market† (see â€Å"U. S. Supreme Court: baker v. Carr, 369 U. U. 186 (1962). † Findlaw. com, 2006). B. The Facts of the Case Charles W. Baker and several Tennessee inhabitants suspected that a 1901 decree designed to allocate the seats for the General Assembly of the state was practically disregarded.The lawsuit of Baker comprehensively discussed on how the reapportionment efforts of Tennessee disregard substantial and important economic development and population modification within the state (see â€Å"Baker v. Carr 369 U. S. 186 (1962)†. Oyez. org). C. Court’s Ruling C. 1 The Laws Applied: *U. S. Const. amend. XIV; U. S. C onst. art. III *42 U. S. C. 1983; Tenn. Const. art.The most awaited result was finally given in March 1962, almost a year after it was originally disputed. The ruling of Baker v. Carr was considered as one of the major wrenching in the history of the Court.The Supreme Court stated that the federal courts have the authority to regulate and decide the constitutionality of the voting of a state’s districts as stated in a 6-2 ruling. Justice William J. Brennan, Jr. put in writing the common opinion, declaring that the constitutional right of the complainant or plaintiff to receive their votes count impartially provided them the essential and required lawful interest to carry out the court case. He disputed that the case did not include a â€Å"political question† which stopped and prohibited judicial review.A court may possibly regulate the constitutionality of the apportionment decisions’ of the State without intervening with the political judgments of the legislat ure. Moreover, Baker v. Carr case was sent back to the federal court (see â€Å"Baker v. Carr (1962). Infoplease, Pearson Education 2005). Justice William O. Douglas wrote down conforming judgment. He announced that: â€Å"If a voter does not anymore have the full constitutional value of his franchise (right to vote), and the legislative branch fails to take appropriate restorative action, the doors of the courts must be open† (see â€Å"Baker v. Carr (1962). Infoplease, Pearson Education 2005).However, in a conflicting view, Justice John Harlan II disputed and wrote that: â€Å"The federal equal protection clause does not prevent a State from choosing any electoral legislative structure it thinks best suited to the interests, temper, and customs of its people. If a state chose to distribute electoral strength among geographical units, rather than according to a census of population is†¦ a rational decision policy†¦ entitled to equal respect from this Court† (see â€Å"Baker v. Carr (1962).  Infoplease, Pearson Education 2005).ConclusionThe court declared that there were no questions that need to be answered in Baker v. Carr case and the parliamentary apportionment was a justified concern. Justice William Brennan had cited previous cases in which the Court interfered to amend constitutional infringements in issues which pertain to state government and the officials by whom state affairs are organized (see â€Å"Baker v. Carr 369 U. S. 186 (1962)†. Oyez. org). D. The impact of Baker and Carr case on American Government and SocietyThe impact of Baker and Carr case on American government and society was that the said landmark decision had made a way for many lawsuits on legislative apportionment. Because of the Baker v. Carr case, by the year of 1967, voters from Ohio altered and revised the state constitution. The revision made a ninety-nine seat state House and a thirty-three seat state Senate. The said revision set up and cr eated too that every representative and senator should receive about the similar number of populations as required by the US Supreme Court. The Baler and Carr case and the modified constitution of Ohio was an uninterrupted outcome of urbanization.In the middle of the 20th century, several individuals departed from rural areas and transferred to cities. The major cause for the said relocation was the deteriorating chances in the countryside. While in the cities, they ever more provided good high paying jobs and various employment opportunities. In Baker v. Carr case, the U. S. Supreme Court tried to make an effort to amend the subsequent dilemmas in political representation (see â€Å"Baker v. Carr†. OhioHistoryCentral. org, 2006).References:1. â€Å"Baker v. Carr†. OhioHistoryCentral. org, 2006. http://www. ohiohistorycentral. org/entry. php? rec=1399.2. â€Å"U. S. Supreme Court: baker v. Carr, 369 U. U. 186 (1962). † Findlaw. com, 2006. http://caselaw. lp. fin dlaw. com/scripts/getcase. pl? court=US&vol=369&invol=186.3. â€Å"Baker v. Carr 369 U. S. 186 (1962)†. Oyez. org. http://www. oyez. org/oyez/resource/case/25/.4. â€Å"Baker v. Carr (1962). Infoplease, Pearson Education 2005. http://www. infoplease. com/us/supreme-court/cases/ar02. html.5. â€Å"Baker v. Carr†. The Columbia Encyclopedia, Sixth Ed. P. 3865. Columbia University Press, New York, 2004).

The Invisible Killer Obesity, The Modern Day Black Plague

Hannah Ylarregui Mrs. Blevens CSU Expository Writing 30 October 2014 The Invisible Killer Obesity, the modern day black plague. High blood pressure, heart disease, diabetes; the common factor among all of these diseases is obesity, a disorder involving excessive amounts of body fat. World wide obesity rates have been shooting up, yet the highest ten standing countries are USA, China and India, Russia, Brazil, Mexico, Egypt, Germany , Pakistan, and Indonesia. Easy access to cheap, fattening foods and decrease in exercise due to easy transportation are huge contributors to the increasing numbers of obesity patients. Sadly, Unites States has the highest percentage of overweight and obese citizens. The never ending vicious cycle of parents feeding their kids unhealthy foods, resulting to kids learning those deficient lifestyles which starts another cycle of morbid habits. Type 2 diabetes cases has been growing along with obesity. Teens with type 2 diabetes was once rare in Americas teens which is now considered a common disease in that age group. The age 13-24 is known for the time of becoming independent and being in charge of making your own decisions, yet how can you make the right decision when all of your choices have been made for you. This generation has the ability to stop the overweight cycle and although 13-24 is the age of personal responsibility, if the businesses and government work together with the citizens to educate healthy lifestyles and make nutritious