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Strategic Management

Presented By Roll No.

Anant Chavan 11

Mihir Panchal 48

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Introduction

Hero Honda Motors Ltd; based in Delhi,India is a joint venture between HeroGroup of India & Honda of Japan.

It is been referred as worlds biggestmanufacturer of 2 wheeler motorizedvehicles since 2001, when it produced 1.3million motorbikes in a single year.

During Fiscal year 2008-09, the companyhad sold 3.28 million bikes and the net-profit stood up at `1281.7 crore.

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Introduction

The Company has its most popular modelHero Honda Splendor, which is the worldslargest-selling motorcycle (sold more than1 million units per year).

Other than splendor, the company has

launched its bikes in different models &looks with new innovation & technology.

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Diversification

The Group Chairman, Mr.Brijmohanlal Munjalhas actively looked at diversification.

A considerable level of vertical integration inits manufacturing activities has beenpresent in the Groups growth & led into

establishment of the Hero Cycles ColdRolling Division, Munjal & SunbeamCastings, Munjal Auto Components.

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Models of Hero Honda

Achiever Ambition 135 CBZ, CBZ Xtreme CD 100, CD deluxe, CD dawn Glamour Hunk Karizma, Karizma R, Karizma ZMR F1

Passion, Passion+, Passion Pro Pleasure Splendor

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Company Profile

Hero is the brand name used by theMunjal brothers for their flagship company

Hero Cycles Ltd. A joint venture betweenthe Hero Group and Honda Motor Companywas established in 1984 as the Hero Hondacompany, India.

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Company Profile

During the 1980s, the company introducedmotorcycles that were popular in India for

their fuel economy and low cost. A popularadvertising campaign based on the slogan'Fill it - Shut it - Forget it' thatemphasized the motorcycle's fuel

efficiency helped the company grow at adouble-digit pace since inception.

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Mission

Hero Hondas mission is to strive forsynergy between technology, systems andhuman resources, to produce productsand services that meet the quality,performance and price aspirations of itscustomers.

At the same time maintain the highest

standards of ethics and socialresponsibilities.

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Mission

This mission is what drives Hero Honda tonew heights in excellence and helps the

organization forge a unique and mutuallybeneficial relationship with all its stakeholders.

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Problems & Issues

Joint Venture Problems:-Honda Motor Company Ltd. announced itwas setting up a subsidiary.

The development of the CD-100

motorcycle was only successful for avery short period of time .Honda held complete responsibility for the

Research & Development department forHero Honda.

Honda negotiated new ventures andpartnerships with other Indianmanufacturers in the automobile andpower equipment industry, leaving Hero

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SWOT Analysis

StrengthsAbility to understand customersneeds and wants.

Recognized and established brandname.

Effective advertising capability.

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Weaknesses

R&D is not close to the Heromanufacturing plant

Hero is vulnerable in the jointventure because Honda Motor

Company has so much power.

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Opportunities

1.Global expansion into the Caribbeanand Central America.

2.Expansion of target market(include women).

3.Become Indias leader in thescooter market.

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Threats

Bajaj Motors is a strong competitor.

Honda Motorcycles and ScootersIndia can take away market shareand cause joint venture to go sour.

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Hero Honda to Split

Hero Honda is a joint venturemotorcycle company in India since 25years.

This venture has been extremelysuccessful in the production of 2wheelers in India.

But, Honda also established itsindependent Motorcycle & Scootercompany.

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Hero Honda to Split

As this has been a shadow to thejoint venture of Hero Honda.

Honda is now a leading seller of

scooters in India, with its attractiveofferings such as Honda Activa,Honda Aviator & Honda Eterno.

It also offers bikes such as HondaUnicorn, Honda CB Twister etc.

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Major Competitors

Bajaj Auto

TVS Motors

Mahindra scooters LML

Kinetic Motors Honda

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Thank you!Any Questions?

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