Honda Motor Co., Ltd. (Honda), was establish on September 24, 1948, develops, produces and manufactures a variety of motor products, ranging from light general-purpose engines and scooters to specialty sports cars (Honda, 2014). They started with a bike equipped with machine tools in 1948, and since then Honda has performed a variety of innovative products that give meaning to each individual's mobility and life in a community.
Today, Honda Motor Co., Ltd business segments are in the motorcycle business, automobile business, financial services business, and power product. Honda conducts its operations in Japan and worldwide, including North America, Europe and Asia (Reuters, ...view middle of the document...
Honda Power Products Indonesia which their main activities are import and distribution of power products, and Honda Precision Parts Manufacturing which is manufacturing parts for Honda products. PT. Honda Prospect Motor is a subsidiary company which is established in March 1973(Honda, 2014).
Below is Honda car unit sales and net sales worldwide (divided by region) according to Honda annual report 2013.
Honda consolidated unit sales in fiscal year 2013 reached 3,408 thousand units, an increase of 37.3% from the previous fiscal year, primarily due to increased unit sales in all regions. It is also supported by the recovery of the Japanese earthquake and floods in Thailand, as well as a boost from the launch of new models (Honda, 2013). The graph also shows that in Asia region, Honda net sales increase 65.7%, this happen most of it because Honda market expansion in Indonesia thought P.T Honda Prospect Motor as their consolidate subsidiary. According to Beritasatu.com (2013), Honda car sales in Indonesia during 2013 was increased 32 percent from the previous year. During that year, PT Honda Prospect Motor recorded sales of 91 493 units of the car, as many as 69 320 units a year earlier.
In this assignment, I would like to analyst PT. Honda Prospect Motor internal and external strategies, which is engaged in manufacture and distribution of automobile in Indonesia using Value Chain Analysis and PEST analysis tools.
PEST stands for Political, Economic, Social, and Technological. Each factor can have an effect on the business either positive or negative, so the company must make a plan and strategy to anticipate this effect. If the company does not plan a strategy to anticipate environmental changes or try to ignore it, the company may lose the opportunity to grow or could suffer a setback. Pest???
Jakarta Governor, Joko Widodo said that there will be some radical policies necessary to overcome the acute traffic congestion in the city, one of the plan is to enforce odd-even license plate restrictions (Jakarta Post, 2012) Furthermore he said that, the long-term plan are, vehicle restrictions based on their license plate numbers will be followed by the implementation of electronic road pricing and then, the operation of a mass transit system that is fast and monorail, but in other hand Indonesian government launched a LCGC (Low Cost green car) policy last year as a way to improve the country's automotive industry and brings the car more affordable for the consumer class Indonesian(wardsauto, 2013).
HPM as Honda main subsidiaries try to respond the policy by releasing a product called Brio Satya, a car that is in the category of LCGC, with approximately 80% local content and made in the country. Honda also increasing their productivity capacity in Honda Factory in Karawang, from 60,000 units per year into 80,000 units per year. In addition to increasing the production capacity of the plant, Honda also continued...