Honda Motor Company Analysis

Honda Motor Company is a multinational Company. Honda Company is found in Japan at the early first time. Then, Honda Company starts to spread to other nation such as Europe, United State, and Asia. How can this company structure itself so successful? Now, we look into their company structure. Honda Company is using the matrix structure. Matrix organizations are flexible, because they allow different dimensions of the organizations to be mixed together. For example: the organization of environment activities.

From the graph, Honda Company prefers geographically defined divisions as the operation units for local marketing, because of their specialist local knowledge of customers. But at the same time it may still want global product division responsible for the worldwide coordination of product development and manufacturing, taking advantage of economies of scale and specialization. For example, Asia area face a lots of air pollution problem, so the technology of knowledge in reducing air pollutions problem is development better than other nation, when their success to create a new product for this purpose, they also will send it to other nation to develop it.

From the map, we also notice that, Honda Company also use a project based structures to solve the problem. For example, in 1997, Honda Company launched the Green Factory Project to respond to recycling-based society initiatives and the New Recycle Project to promote recycling activities for the circulatory use of resources. In 2000, we started the LCA Project to further analyze and quantify the various environmental impacts caused by Honda Company activities.

The main resource in the company is people. The company philosophy is Respect for the Individual, The Three Joys (the joy of buying, the joy of selling, and the joy of creating). For this two main goal in the Company, they company recruit employee with the marketing skill to help the company fulfill the joy of buying, and joy of selling. Honda Company also recruit employee with technical skill, creative idea to help Company fulfill the joy of creating. Beside that, Company also recruits lots of management employee to maintain the three joys, and help the company to do some research to know the customer expectation on the company. Honda Company is interested in the needs of those employees.