honda marketting

8/7/2019 Honda Marketting

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SUMMER TRAINING REPORT

A Brief Study on the Manufacturing Dept.

Undertaken at Honda Siel Cars India Ltd.

Submitted in partial fulfillment of the requirementsfor the award of the degree of

BACHELOR OF BUSINESSADMINISTRATION

to

Guru Gobind Singh Indraprastha University,Delhi

Under the Guidance of: Submitted by:Prof. Rajesh Bajaj Pranoy Bhattacharya

BBA V Sem. (E)Enrollment No. 0282131708

Session 2008 - 11

TECNIA INSTITUTE OF ADVANCED

STUDIESApproved by AICTE, Ministry of HRD, Govt. of India Affiliated To Guru Gobind SinghIndraprastha University, Delhi

INSTITUTIONAL AREA, MADHUBAN CHOWK, ROHINI, DELHI- 110085E-Mail: director.tecniaindia@ gmail.com, Website: www.tecnia.in

Fax No: 27555120, Tel: 27555121-24Institute is rated as A Category Best Business School by latest AIMA - Business Standard & Business IndiaPublications Surveys & included in Top 100 B Schools & IT -Schools by Dalal Street Investment Journal


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Contents

S No Topic Page No

1 Certificate (s) 1-2

2 Acknowledgements 3

3 List of Symbols 44 List of Abbreviations 5

5 Chapter-1: Profile of the Firm/Company 6-29

General Information

Nature of the organization

Vision and Mission

Services provided

Size in terms of manpower and turnover

Organization Structure

Market Share and Position

Present Leadership

Sources of Data Collection6 Chapter-2: SWOT Analysis of the Company 30-33

Strengths and Weaknesses

Opportunities and Threats

Practices in Different Departments

Variation/Deviation in Practices vis--vis concepttaught in classroom

Employee Welfare

7 Chapter-3: Analysis of Financial Reports of theCompany

34-37

Analysis of Balance Sheet

Analysis of Profit and Loss Account

Analysis of Cash Flow Statement

8 Chapter-4: Lessons Learnt 38-42

Working Environment

Practical Knowledge gained

Recommendations/Suggestions to other students forTraining

9 References/Bibliography 43


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Tecnia Institute of Advanced Studies

New Delhi 110085

Batch (2008-2011)

Certificate

I, Mr. Pranoy Bhattacharya, Roll No. 0282131708 certify that the Summer TrainingReport (Paper Code BBA 311) entitled Brief study on manufacturing department is

done by me and it is an authentic work carried out by me at Honda Siel Cars IndiaLimited. The matter embodied in this has not been submitted earlier for the award ofany degree or diploma to the best of my knowledge and belief.

Signature of the StudentDate:

Certified that the Summer Training Report (Paper Code BBA 311) entitled Study onthe Manufacturing department done by Mr.Pranoy Bhattacharya, Roll No0282131708 is completed under my guidance.

Signature of the GuideDate:Name of the Guide:Designation:

CountersignedDirector


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ACKNOWLEDGEMT

I would like to take this opportunity to thank all those people, without whosecooperation and support, this study would not have been possible. First andforemost, I would like to express my gratitude to Prof. Rajesh Bajaj, TecniaInstitute of Advanced Studies for his guidance, encouragement and patience.

I am also thankful to Mr. Prabhakar Maheshwari (Dealer Quality Head,HSCI) for giving me the opportunity to work with the organization. Myheartfelt thanks to Mr. Saadi (HR) HR Department HSCI who guided methroughout my training in the organization, and helping me in various steps.

I thank the management, officers and staff of HSCI for their cooperation,and valuable time. Special thanks to my co-employees for their help andsupport and providing valuable inputs and perspectives.

I would like to thank my family and friends for their support,encouragement, cooperation and suggestions have helped me in successful

completion of this project.

Pranoy Bhattacharya


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LIST OF SYMBOLS

S.No. Symbol Nomenclature & Meaning

1 - Hyphen2 , Comma

3 ; Semi-Colon

4 : Colon

5 % Percentage

6 . Full-Stop

7 $ Dollar

8 * Asterisk

9 # Number Sign

10 / Solidus

11 @ Commercial at/At the Rate

12 ( Left Parenthesis13 ) Right Parenthesis

14 { Left Curly Brackets

15 } Right Curly Brackelts

16 Apostrophe

17 _ Low line/Underscore


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LIST OF ABBREVIATIONS

S No Abbreviated Name Full Name

1 HSCI Honda Siel Cars India Limited

2 LTD Limited4 KM Kilo Meters

5 Rs. Rupees

6 GOI Government of India

7 GNCTD Government of National Capital Territory of Delhi

8 PSU Public Sector Unit

9 O and M Operation and Maintenance

10 US United States

11 UD Urban Development

12 Tpt Third party transfer

13 PPP Purchasing Power Parity

14 Elect. Electrical15 HR Human Resource

16 S and T Signal and Telecommunication

17 CPM Chief Project Manager

18 GM General Manager

19 CE Chief Engineer

20 CEE Chief Electrical Engineer

21 CSTE Chief Signal and Telecom Engineer

22 Asst. Assistant

23 HOD Head Of the Department

24 AGM Additional General Manager

25 JGM Junior General Manager

26 DGM Deputy General Manager

27 UK United Kingdom

28 ED Executive Director

29 F Finance

30 O Operation

31 R and T Recruitment and Training

32 CDA Dearness Allowance

33 IDA Dearness Allowance

34 SGA Senior General Manager

35 MD Managing Director 36 GP Gross Pay

37 Secy. Secretary

38 Addl. Additional


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Chapter-1: Profile of the Firm/Company

1.1 Company Profile

1.1.1 Honda Motor Company, Ltd.

(a) Honda Technology Research Institute Company, Limited is a Japanese multinationalcorporation primarily known as a manufacturer of automobiles and motorcycles.Honda is the world's largest manufacturer of motorcycles as well as the world's largestmanufacturer ofinternal combustion engines measured by volume, producing more than14 million internal combustion engines each year.Honda surpassed Nissan in 2001 to

become the second-largest Japanese automobile manufacturer. As of August 2008, Hondasurpassed Chrysleras the fourth largest automobile manufacturer in the United States.Honda is the sixth largest automobile manufacturer in the world.(b) Honda was the first Japanese automobile manufacturer to release a dedicated luxurybrand, Acura in 1986. Aside from their core automobile and motorcycle businesses,Honda also manufactures garden equipment, marine engines, personal watercraft andpower generators, amongst others. Since 1986, Honda has been involved with artificialintelligence/robotics research and released theirASIMO robot in 2000. They have alsoventured into aerospace with the establishment ofGE Honda Aero Engines in 2004 andthe Honda HA-420 HondaJet, scheduled to be released in 2011. Honda spends about 5%of its revenues into R&D(Research and Development).

1.1.2Corporate Profile

(a) Honda Motor Co., Ltd. operates under the basic principles of "Respect for theIndividual" and "The Three Joys" commonly expressed as The Joy of Buying, The Joyof Selling and The Joy of Creating. "Respect for the Individual" reflects our desire torespect the unique character and ability of each individual person, trusting each other asequal partners in order to do our best in every situation. Based on this, "The Three Joys"expresses our belief and desire that each person working in, or coming into contact withour company, directly or through or products, should share a sense of joy through thatexperience.(b) In line with these basic principles, since its establishment in 1948, Honda has

remained on the leading edge by creating new value and providing products of thehighest quality at a reasonable price, forworldwide customer satisfaction. In addition, the Company has conducted its activitieswith a commitment to protecting the environment and enhancing safety in a mobilesociety.(c) The Company has grown to become the world's largest motorcycle manufacturer andone of the leading automakers. With a global network of 501 subsidiaries and affiliatesaccounted for under the equity method, Honda develops, manufactures and markets a
http://en.wikipedia.org/wiki/Multinational_corporationhttp://en.wikipedia.org/wiki/Multinational_corporationhttp://en.wikipedia.org/wiki/Motorcyclehttp://en.wikipedia.org/wiki/Internal_combustion_enginehttp://en.wikipedia.org/wiki/Nissan_Motorshttp://en.wikipedia.org/wiki/Chryslerhttp://en.wikipedia.org/wiki/Acurahttp://en.wikipedia.org/wiki/ASIMOhttp://en.wikipedia.org/wiki/GE_Honda_Aero_Engineshttp://en.wikipedia.org/wiki/Honda_HA-420_HondaJethttp://en.wikipedia.org/wiki/File:Honda-logo.svghttp://en.wikipedia.org/wiki/Multinational_corporationhttp://en.wikipedia.org/wiki/Multinational_corporationhttp://en.wikipedia.org/wiki/Motorcyclehttp://en.wikipedia.org/wiki/Internal_combustion_enginehttp://en.wikipedia.org/wiki/Nissan_Motorshttp://en.wikipedia.org/wiki/Chryslerhttp://en.wikipedia.org/wiki/Acurahttp://en.wikipedia.org/wiki/ASIMOhttp://en.wikipedia.org/wiki/GE_Honda_Aero_Engineshttp://en.wikipedia.org/wiki/Honda_HA-420_HondaJet


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wide variety of products, ranging from small general-purpose engines and scooters tospecialty sports cars, to earn the Company an outstanding reputation from customersworldwide.

1.1.3Honda Siel Cars India Limited (HSCI)

is a joint venture between the Honda Motor Company of Japan and Siel Limited, aSiddharth Shriram Group company. It currently is the 6th largest car maker in India afterMaruti Suzuki, Hyundai, Tata Motors, Mahindra and Chevrolet. It was begun inDecember 1995. The venture was begun with the aim of delivering Honda's passenger carmodels and technologies to the Indian market. The total investment made by the companyin India till date is over Rs. 800 crores.

1.1.5General Information

International Headquartered: Honda is headquartered in Minato, Tokyo, Japan

Head Office

1-1, 2-chome, Minami-Aoyama, Minato-ku, Tokyo 107-8556,JapanTel: +81-(0)3-3423-1111
http://en.wikipedia.org/wiki/Hondahttp://en.wikipedia.org/w/index.php?title=Siel_Limited&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Siddharth_Shriram_Group&action=edit&redlink=1http://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Maruti_Suzukihttp://en.wikipedia.org/wiki/Hyundai_Motor_India_Limitedhttp://en.wikipedia.org/wiki/Tata_Motorshttp://en.wikipedia.org/wiki/Mahindra_%26_Mahindra_Limitedhttp://en.wikipedia.org/wiki/Chevrolet_Sales_India_Private_Limitedhttp://en.wikipedia.org/wiki/Minato,_Tokyohttp://en.wikipedia.org/wiki/Hondahttp://en.wikipedia.org/w/index.php?title=Siel_Limited&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Siddharth_Shriram_Group&action=edit&redlink=1http://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Maruti_Suzukihttp://en.wikipedia.org/wiki/Hyundai_Motor_India_Limitedhttp://en.wikipedia.org/wiki/Tata_Motorshttp://en.wikipedia.org/wiki/Mahindra_%26_Mahindra_Limitedhttp://en.wikipedia.org/wiki/Chevrolet_Sales_India_Private_Limitedhttp://en.wikipedia.org/wiki/Minato,_Tokyo


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1.1.6 In India

Honda Siel Cars India Ltd.Plot No. A-1, Sector 40/ 41Surajpur-Kasna Road

Greater Noida Industrial Development AreaDistt. Gautam Budh NagarU.P. 201 306Contact no- 0120 - 234 1313/ 1321/ 1327/ 1801/ 1806

Honda one 2 one-1800 113 121011 39898918


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1.2 Nature of Organization

Type Public(TYO: 7267) & (NYSE: HMC)

Industry

Automotive

Aviation

Founded 24 September 1948

Founder(s)

Soichiro Honda

Takeo Fujisawa

Headquarters Minato, Tokyo, Japan

Area served Worldwide

Key people

Satoshi Aoki (Chairman)

Takanobu Ito (CEO)

Products

Automobiles

Motorcycles

Scooters

ATVs Electrical Generators

Water pumps

Lawn and Garden

Equipments

Tillers

Outboard motors

Robotics

Jets

Jet Engines

Revenue US$ 120.27 Billion (FY 2009)

Operating

income US$ 2.34 Billion (FY 2009)

Net income US$ 1.39 Billion (FY 2009)[
http://en.wikipedia.org/wiki/Types_of_business_entityhttp://en.wikipedia.org/wiki/Public_companyhttp://en.wikipedia.org/wiki/Tokyo_Stock_Exchangehttp://www.bloomberg.com/apps/quote?ticker=7267:JPhttp://en.wikipedia.org/wiki/New_York_Stock_Exchangehttp://www.nyse.com/about/listed/quickquote.html?ticker=hmchttp://en.wikipedia.org/wiki/Industryhttp://en.wikipedia.org/wiki/Automotivehttp://en.wikipedia.org/wiki/Automotivehttp://en.wikipedia.org/wiki/Aviationhttp://en.wikipedia.org/wiki/Aviationhttp://en.wikipedia.org/wiki/Entrepreneurhttp://en.wikipedia.org/wiki/Soichiro_Hondahttp://en.wikipedia.org/wiki/Soichiro_Hondahttp://en.wikipedia.org/wiki/Takeo_Fujisawahttp://en.wikipedia.org/wiki/Takeo_Fujisawahttp://en.wikipedia.org/wiki/Minato,_Tokyohttp://en.wikipedia.org/wiki/Tokyohttp://en.wikipedia.org/w/index.php?title=Satoshi_Aoki&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Satoshi_Aoki&action=edit&redlink=1http://en.wikipedia.org/wiki/Chairmanhttp://en.wikipedia.org/w/index.php?title=Takanobu_Ito&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Takanobu_Ito&action=edit&redlink=1http://en.wikipedia.org/wiki/CEOhttp://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Automobilehttp://en.wikipedia.org/wiki/Automobilehttp://en.wikipedia.org/wiki/Motorcyclehttp://en.wikipedia.org/wiki/Motorcyclehttp://en.wikipedia.org/wiki/Scooter_(motorcycle)http://en.wikipedia.org/wiki/Scooter_(motorcycle)http://en.wikipedia.org/wiki/All-terrain_vehiclehttp://en.wikipedia.org/wiki/All-terrain_vehiclehttp://en.wikipedia.org/wiki/Electrical_generatorhttp://en.wikipedia.org/wiki/Electrical_generatorhttp://en.wikipedia.org/wiki/Water_pumpshttp://en.wikipedia.org/wiki/Water_pumpshttp://en.wikipedia.org/wiki/Landscape_maintenancehttp://en.wikipedia.org/wiki/Landscape_maintenancehttp://en.wikipedia.org/wiki/Landscape_maintenancehttp://en.wikipedia.org/wiki/Rotary_tillerhttp://en.wikipedia.org/wiki/Rotary_tillerhttp://en.wikipedia.org/wiki/Outboard_motorhttp://en.wikipedia.org/wiki/Outboard_motorhttp://en.wikipedia.org/wiki/Roboticshttp://en.wikipedia.org/wiki/Roboticshttp://en.wikipedia.org/wiki/Jet_Aircrafthttp://en.wikipedia.org/wiki/Jet_Aircrafthttp://en.wikipedia.org/wiki/Jet_Enginehttp://en.wikipedia.org/wiki/Jet_Enginehttp://en.wikipedia.org/wiki/Revenuehttp://en.wikipedia.org/wiki/United_States_Dollarhttp://en.wikipedia.org/wiki/Earnings_before_interest_and_taxeshttp://en.wikipedia.org/wiki/Earnings_before_interest_and_taxeshttp://en.wikipedia.org/wiki/Earnings_before_interest_and_taxeshttp://en.wikipedia.org/wiki/Earnings_before_interest_and_taxeshttp://en.wikipedia.org/wiki/United_States_Dollarhttp://en.wikipedia.org/wiki/Net_incomehttp://en.wikipedia.org/wiki/United_States_Dollarhttp://en.wikipedia.org/wiki/File:Honda-logo.svghttp://en.wikipedia.org/wiki/Types_of_business_entityhttp://en.wikipedia.org/wiki/Public_companyhttp://en.wikipedia.org/wiki/Tokyo_Stock_Exchangehttp://www.bloomberg.com/apps/quote?ticker=7267:JPhttp://en.wikipedia.org/wiki/New_York_Stock_Exchangehttp://www.nyse.com/about/listed/quickquote.html?ticker=hmchttp://en.wikipedia.org/wiki/Industryhttp://en.wikipedia.org/wiki/Automotivehttp://en.wikipedia.org/wiki/Aviationhttp://en.wikipedia.org/wiki/Entrepreneurhttp://en.wikipedia.org/wiki/Soichiro_Hondahttp://en.wikipedia.org/wiki/Takeo_Fujisawahttp://en.wikipedia.org/wiki/Minato,_Tokyohttp://en.wikipedia.org/wiki/Tokyohttp://en.wikipedia.org/w/index.php?title=Satoshi_Aoki&action=edit&redlink=1http://en.wikipedia.org/wiki/Chairmanhttp://en.wikipedia.org/w/index.php?title=Takanobu_Ito&action=edit&redlink=1http://en.wikipedia.org/wiki/CEOhttp://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Automobilehttp://en.wikipedia.org/wiki/Motorcyclehttp://en.wikipedia.org/wiki/Scooter_(motorcycle)http://en.wikipedia.org/wiki/All-terrain_vehiclehttp://en.wikipedia.org/wiki/Electrical_generatorhttp://en.wikipedia.org/wiki/Water_pumpshttp://en.wikipedia.org/wiki/Landscape_maintenancehttp://en.wikipedia.org/wiki/Landscape_maintenancehttp://en.wikipedia.org/wiki/Rotary_tillerhttp://en.wikipedia.org/wiki/Outboard_motorhttp://en.wikipedia.org/wiki/Roboticshttp://en.wikipedia.org/wiki/Jet_Aircrafthttp://en.wikipedia.org/wiki/Jet_Enginehttp://en.wikipedia.org/wiki/Revenuehttp://en.wikipedia.org/wiki/United_States_Dollarhttp://en.wikipedia.org/wiki/Earnings_before_interest_and_taxeshttp://en.wikipedia.org/wiki/Earnings_before_interest_and_taxeshttp://en.wikipedia.org/wiki/United_States_Dollarhttp://en.wikipedia.org/wiki/Net_incomehttp://en.wikipedia.org/wiki/United_States_Dollar


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Total assets US$ 124.98 Billion (FY 2009)

Total equity US$ 40.6 Billion (FY 2009)

Employees 181,876

Subsidiaries

Acura

Honda Aircraft Company

Website Honda Worldwide

*TYO- Tokyo Stock Exchange*NYSE- New York Stock Exchange

1.2.1 From a young age, Honda's founder, Soichiro Honda had a great interest inautomobiles. He worked as a mechanic at a Japanese tuning shop, Art Shokai, where hetuned cars and entered them in races. A self-taught engineer, he later worked on a pistondesign which he hoped to sell to Toyota. The first drafts of his design were rejected, and

Soichiro worked painstakingly to perfect the design, even going back to school andpawning his wife's jewelry for collateral. Eventually, he won a contract with Toyota andbuilt a factory to construct pistons for them, which was destroyed in an earthquake. Dueto a gas shortage during World War II, Honda was unable to use his car, and his novelidea of attaching a small engine to his bicycle attracted much curiosity. He thenestablished the Honda Technical Research Institute in Hamamatsu, Japan, to develop andproduce small 2-cycle motorbike engines. Calling upon 18,000 bicycle shop ownersacross Japan to take part in revitalizing a nation torn apart by war, Soichiro receivedenough capital to engineer his first motorcycle, the Honda Cub. This marked thebeginning of Honda Motor Company, which would grow a short time later to be theworld's largest manufacturer of motorcycles by 1964.

1.2.2 The first production automobile from Honda was the T360 mini pick-uptruck.Powered by a small 356 cc straight-4 gasoline engine, it was classified under thecheaperKei cartax bracket.The first production car from Honda was the S500 sportscar.Its chain driven rear wheels point to Honda's motorcycle origins.

(a)"Honda" in Japanese is, which literally means "root field" or "original field".

(b)Honda's official slogan is "The Power of Dreams". They have never used this sloganto sell their products. Mr. Honda's belief is that well built products will sell themselves.

(c)In 2003, Honda released its Cog advertisement in the UK and on the Internet. To makethe ad, the engineers at Honda constructed a Rube Goldberg Machine made entirely outof car parts from a Europe Domestic Market Honda Accord (upon which the USDMAcura TSX is based). To the chagrin of the engineers at Honda, all the parts were takenfrom two of only six hand-assembled pre-production models of the Accord. Theadvertisement depicted a single cog which sets off a chain of events that ends with theHonda Accord moving and Garrison Keillorspeaking the tagline, "Isn't it nice whenthings just... work?" It took 606 takes to get it perfect.
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1.2.3 In 2004, they produced the Hate Something advert, usually immediately followedby a shortened version of the 2005/2006 Impossible Dream advert.

A post 2005 style Honda dealership in Moncton, Canada

In 2006, Honda released its Choir advertisement, for the UK and the internet. Thisfeatured a 60-person choir who sang the car noises as film of the Honda Civic are shown.

1.2.4 In December 2005, Honda released The Impossible Dream a two-minute panoramicadvertisement filmed in New Zealand, Japan and Argentina which illustrates thefounder's dream to build performance vehicles. While singing The Impossible Dream(The Quest), a man reaches for his racing helmet, leaves his trailer on a minibike, thenrides a succession of vintage Honda vehicles: a motorcycle, then a car, then a powerboat,then goes over a waterfall only to reappear piloting a hot air balloon, with GarrisonKeillor saying "I couldn't have put it better myself" as the song ends. The song is fromthe 1960s musical "Man Of La Mancha", sung by Andy Williams.

1.2.5 For the last several years in the United States, during model close-out sales for thecurrent year before the start of the new model year, Honda's advertising has featured an

animated characterknown simply as Mr. Opportunity, voiced by Rob Paulsen. The casuallooking man talks about various deals offered by Honda and ends with the phrase "I'mMr. Opportunity, and I'm knockin'", followed by him "knocking" on the television screenor "thumping" the speaker at the end of radio ads. Also, commercials for Honda'sinternational hatchback, the Jazz, are parodies of well-known pop culture images such asTetris and Thomas The Tank Engine.

1.2.6 In late 2006, Honda released an ad with ASIMO exploring a museum, looking atthe exhibits with almost child-like wonderment (spreading out its arms in the aerospaceexhibit, waving hello to an astronaut suit that resembles him, etc.), while Garrison Keillorruminates on progress. It concludes with the tagline: "More forwards please".

1.2.7 Honda also sponsored ITV's coverage ofFormula One in the UK for 2007.However they had announced that they would not continue in 2008 due to thesponsorship price requested by ITV being too high.

1.2.8 In May 2007, focuses on their strengths in racing and the use of the Red H badge a symbol of what is termed as "Hondamentalism". The campaign highlights the lengthsthat Honda engineers go to in order to get the most out of an engine, whether it is for
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bikes, cars, powerboats even lawnmowers. Honda released its Hondamentalismcampaign. In the TV spot, Garrison Keillor says, "An engineer once said to buildsomething great is like swimming in honey", while Honda engineers in white suits walkand run towards a great light, battling strong winds and flying debris, holding on toanything that will keep them from being blown away. Finally one of the engineers walks

towards a red light, his hand outstretched. A web address is shown for theHondamentalism website. The digital campaign aims to show how visitors to the siteshare many of the Hondamentalist characteristics.

1.2.9 In 2009, American Honda released the "Dream the Impossible DocumentarySeries," a collection of 5-8 minute web vignettes that focus on the core philosophies ofHonda. Current short films include Failure: The Secret to Success, Kick Out the Ladderand Mobility 2088. They feature Honda employees as well as Danica Patrick,ChristopherGuest, Ben Bova, Chee Pearlman, Joe Johnston and Orson Scott Card. The film seriesplays at dreams.honda.com.

1.2.10 In India

Manufacturing Facilities

(a) HSCI's manufacturing unit was set up in 1997 at Greater Noida, Uttar Pradesh with aninvestment of Rs. 450 crore. The green-field project is spread across 150 acres of land(over 6,00,000 sq. m.).

(b) The initial installed capacity of the plant was 30,000 cars per annum, which wasthereafter increased to 50,000 cars on a two-shift basis. The capacity has further beenenhanced to 1,00,000 units annually in February 2008 . The capacity expansion wasnecessitated by the excellent performance of all the Honda models, particularly thegrowing demand for City in India. Several modifications were done by the company withthe objective of offering higher quality products to its customers, faster and quicker. Theexpansion process also included expansion of the covered area in the plant, from 1,07,000sq. m. to 1,31,794 sq. m.

(c) HSCI currently produces the newly launched Honda Jazz, City, Civic and Accordmodels in India and the premium SUV, CR-V is sold as a fully imported unit fromJapan.The company operates under the stringent standards of ISO 9001 for qualitymanagement and ISO 14001 for environment management.
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1.3 Companys Vision and Mission

Honda Philosophy

Basic Principles Respect for the individual. The Three Joys (buying, selling and creating)Company Principle

(Mission Statement)Maintaining a global viewpoint, we are dedicated to supplying products of the highest quality, yet at reasonable price for worldwide customer satisfaction.

Management Policies Proceed always with ambition and youthfulness.


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Respect sound theory, develop fresh ideas, and make the most effective use of time.

Enjoy work and encourage open communication.

Strive constantly for a harmonious flow of work.

Be ever mindful of the value of research and endeavor.

Dreams inspire us to create innovative products that enhance mobility and benefit society. To meet the particular needs of customers indifferent regions around the world, we base our sales networks, research and development centers and manufacturing facilities in eachregion. Furthermore, as a socially responsible corporate citizen, we strive to address important environmental and safety issues.

Honda philosophy and corporate vision

1.3.1 Honda formulated its vision statement, Striving to be a company society wants toexist, based on the Honda philosophy.In order to realize this vision, we have established three directions: creating new value,expanding value andcommitment to the future. All of Hondas environmental activities are an expression of

the Honda philosophy of respectfor the individual and the Three Joys (buying, selling, and creating).Creating new value means applying innovative ideas to create new value that anticipateschanging needs and givesshape to dreams. Expanding value means helping people realize their dreams bycontributing to local communitieswherever we are active around the globe. Commitment to the future means working toimprove safety for everyonewhile also minimizing our burden on the environment and consumption of the earthsresources.Honda is accelerating its efforts to preserve the global environment by applying these

principles, enhancing theThree Joys, and working globally to create a better world for future generations. Byproactively engaging with our customersand other citizens around the globe, we hope to share joy and become a company whoseexistence is valuedby more people than ever before.

1.3.2 Honda Environment Statement

As a responsible member of society whose task lies in the preservation of the global

environment,the company will make every effort to contribute to human health and thepreservation of the global environment in each phase of its corporate activity. Only in thisway will we be able to count on a successful future not only for our company, but for theentire world.

1.3.3 We should pursue our daily business interests under the following principles:We will make efforts to recycle materials and conserve resources and energy at everystage of


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our products life cycle from research, design, production and sales, to services anddisposal.We will make every effort to minimize and find appropriate methods to dispose of wasteandcontaminants that are produced through the use of our products, and in every stage of the

lifecycle of these products.As both a member of the company and of society, each associate will focus on theimportanceof making efforts to preserve human health and the global environment, and will do his orherpart to ensure that the company as a whole acts responsibly.We will consider the influence that our corporate activities have on the local environmentandsociety, and endeavor to improve the social standing of the company.Honda has been implementing proactive measures to help resolve environmental

challenges since the 1960s, whenconcerns about air pollution began to grow. In 1966, soon after expanding intoautomobile production, we establisheda department to research air pollution measures. In 1972, under the theme Blue Skies forOur Children, we introducedthe CVCC engine, becoming the worlds first automaker to comply with the U.S. CleanAir Act without the useof a catalytic convertera challenge thought by many to be nearly insurmountable.Believing that problems caused bytechnology should be solved by technology, weve continued to confront environmentalchallenges.In 1992, we released the Honda Environment Statement to clearly define our approach toenvironmental issues,which is central to everything we do. In 1999, we set specific numerical targets forcleaner emissions and higher fuelefficiency in all of our product categories, all of which were achieved by their target dateof 2005. In 2006, Hondabecame the worlds first automaker to announce voluntary targets for reduction of CO2emissions by FY2011.

1.3.4 Honda Environment Statement

As a responsible member of society whose task lies in the preservation of the globalenvironment,the company will make every effort to contribute to human health and the preservation oftheglobal environment in each phase of its corporate activity. Only in this way will we beable tocount on a successful future not only for our company, but for the entire world.


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We should pursue our daily business interests under the following principles:1. We will make efforts to recycle materials and conserve resources and energy at everystage ofour products life cycle from research, design, production and sales, to services and

disposal.2. We will make every effort to minimize and find appropriate methods to dispose ofwaste andcontaminants that are produced through the use of our products, and in every stage of thelifecycle of these products.3. As both a member of the company and of society, each associate will focus on theimportanceof making efforts to preserve human health and the global environment, and will do his orherpart to ensure that the company as a whole acts responsibly.

4. We will consider the influence that our corporate activities have on the localenvironment andsociety, and endeavor to improve the social standing of the company.

1.4. Product range of the company

1.4.1 Automobiles

(a) Honda's global lineup consists of the Fit, Civic,Accord, Insight, CR-V, Odyssey andS2000. An early proponent of developing vehicles to cater to different needs and marketsworldwide, Honda's lineup varies by country and may feature vehicles exclusive to thatregion. A few examples are the latest Acura TL luxury sedan and the Ridgeline, Honda's
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first light-duty pickup truck. Both were engineered primarily in North America and areexclusively produced and sold there.

(b) The Honda Civic is a line ofcompact cars developed and manufactured by Honda. InNorth America, the Civic is the second-longest continuously running nameplate from a

Japanese manufacturer; only its perennial rival, the Toyota Corolla, introduced in 1968,has been in production longer.[22]The Civic, along with the Accord and Prelude,comprised Honda's vehicles sold in North America until the 1990s, when the modellineup was expanded. Having gone through several generational changes, the Civic hasbecome larger and more upmarket, and it currently slots between the Fit and Accord.

2008 Honda Accord(USA spec)

Eight Generation Honda Civic (Philippine Version)

Honda Automobiles is one of the Big Asian Four (with Toyota,Nissan and Hyundai)

(c) The 2006 Ridgeline was a reintroduction of the concept of a Uni-Body truck. Earlierexamples of this concept are the Subaru Brat and Baja,Volkswagen Rabbit pick-up, andDodge Rampage/Plymouth Scamp.

(d) Honda increased global production in September 2008 to meet demand forsmall carsin the U.S. and emerging markets. The company is shuffling U.S. production to keepfactories busy and boost car output, while building fewerminivans and sport utilityvehicles as light trucksales fall.[24]

Honda produces the Insight, a hybrid electric vehicle that competes with Toyota Prius
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(e) Its first entrance into the pickup segment, the lightduty Ridgeline, won Truck of theYear from Motor Trendmagazine in 2006 (also in 2006, the redesigned Civic won Car ofthe Yearfrom the magazine, giving Honda a rare double win of Motor Trend honors).

(f) In the U.S., five ofEPA's top ten most fuel-efficient cars from 1984 to 2010 comes

from Honda, more than any other automakers. The five models are: 2000-2006 HondaInsight(53 mpg combined), 1986-87 Honda Civic Coupe HF (46 mpg combined), 1994-95 Honda Civic hatchback VX (43 mpg combined), 2006- Honda Civic Hybrid (42 mpgcombined), and 2010- Honda Insight (41 mpg combined).(mpg revised in accordancewith 2008 regulation change)

1.4.2 In India

(a) Manufactured Locally

1. Honda City (Launched 1996)2. Honda Accord (Launched 2001)3. Honda Civic (Launched 2006)4. Honda Jazz (Launched 2009)

(b) Imported

1. Honda CR-V (Launched 2003)

Honda Jazz (Launched 2009)

2nd Generation Honda Jazz
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The 5th Generation Honda City

8th Generation Honda Civic

8th Generation Honda Accord

3rd Generation Honda CR-V

1.4.3 Motorcycles

(a) Honda is the largest motorcycle manufacturer in Japan and has been since it startedproduction in 1955.At its peak in 1982, Honda manufactured almost 3 millionmotorcycles. By 2006 this figure had reduced to around 550,000 but was still higher thanits three domestic competitors.

(b) During the 1960s, when it was a small manufacturer, Honda broke out of the Japanesemotorcycle market and began exporting to the US. Taking Hondas story as an archetypeof the smaller manufacturer entering a new market already occupied by highly dominant
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competitors, the story of their market entry, and their subsequent huge success in the USand around the world, has been the subject of some academic controversy. Competingexplanations have been advanced to explain Hondas strategy and the reasons for theirsuccess.

(c) The first of these explanations was put forward when, in 1975, Boston ConsultingGroup (BCG) was commissioned by the UK government to write a report explaining whyand how the British motorcycle industry had been out-competed by its Japanesecompetitors. The report concluded that the Japanese firms, including Honda, had sought avery high scale of production (they had made a large number of motorbikes) in order tobenefit from economies of scale and learning curve effects. It blamed the decline of theBritish motorcycle industry on the failure of British managers to invest enough in theirbusinesses to profit from economies of scale and scope.

2004 Honda Super Cub

(d)The second explanation was offered in 1984 by Richard Pascale, who had interviewedthe Honda executives responsible for the firms entry into the US market. As opposed tothe tightly focused strategy of low cost and high scale that BCG accredited to Honda,Pascale found that their entry into the US market was a story of miscalculation,serendipity, and organizational learning in other words, Hondas success was due tothe adaptability and hard work of its staff, rather than any long term strategy. Forexample, Hondas initial plan on entering the US was to compete in large motorcycles,around 300 cc. It was only when the team found that the scooters they were using to getthemselves around their US base ofSan Francisco attracted positive interest fromconsumers that they came up with the idea of selling the Super Cub.

(e)The most recent school of thought on Hondas strategy was put forward by GaryHamel and C. K. Prahalad in 1989. Creating the concept ofcore competencies withHonda as an example, they argued that Hondas success was due to its focus onleadership in the technology of internal combustion engines. For example, the highpower-to-weight ratio engines Honda produced for its racing bikes provided technologyand expertise which was transferable into mopeds. Honda's entry into the US motorcyclemarket during the 1960s is used as a case study for teaching introductory strategy atbusiness schools worldwide.
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(f)It created the first luxury Japanese car (1985 Legend) and motorcycle (2006 GoldWing bikes) equipped with an airbag, as well as the first mid-size pickup truck withindependent rear suspension (2006 Ridgeline).

1.4.4 In India

Hero Honda Motors Limited, based in Delhi, India is a joint venture between the HeroGroup of India and Honda of Japan.It has been referred to as the world's biggestmanufacturer of2-wheeled motorized vehicles since 2001, when it produced 1.3 millionmotorbikes in a single year.

(a)List of models

Achiever Ambition 133, Ambition 135 CBZ , CBZ Star, CBZ Xtreme

CD 100, CD 100 SS, CD Dawn, CD Deluxe, CD Deluxe (Self Start) Glamour, Glamour F.I Hunk Joy Karizma, Karizma R, Karizma ZMR FI Passion, Passion+, Passion Pro Pleasure Street Splendor , Splendor+, Splendor+ (Limited Edition), Super Splendor, Splendor

NXG

(b) Power Equipment

Honda Outboard motoron a pontoon boat

Honda engines powered the entire 33-car starting field of the 2010 Indianapolis 500 [27]and for the fifth consecutive race, there were no engine-related retirements during therunning of the Memorial Day Classic.

Honda, despite being known as an engine company, has never built a V8 for passengervehicles. In the late 1990s, the company resisted considerable pressure from its American
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dealers for a V8 engine (which would have seen use in top-of-the-line Honda SUVs andAcuras), with American Honda reportedly sending one dealer a shipment ofV8beverages to silence them.

(c) Robots

ASIMO at Expo 2005

ASIMO is the part of Honda's Research & Development robotics program. It is theeleventh in a line of successive builds starting in 1986 with Honda E0 moving throughthe ensuing Honda E series and the Honda P series. Weighing 54 kilograms and standing130 centimeters tall, ASIMO resembles a small astronaut wearing a backpack, and canwalk on two feet in a manner resembling human locomotion, at up to 6 km/h (3.7 mph).ASIMO is the world's only humanoid robot able to ascend and descend stairsindependently.[30] However, human motions such as climbing stairs are difficult to mimic

with a machine, which ASIMO has demonstrated by taking two plunges off a staircase.

Honda's robot ASIMO (see below) as an R&D project brings together expertise to createa robot that walks, dances and navigates steps. 2010 marks the year Honda has developeda machine capable of reading a users brainwaves to move ASIMO. The system uses ahelmet covered with electroencephalography and near-infrared spectroscopy sensors thatmonitor electrical brainwaves and cerebral blood flowsignals that alter slightly duringthe human thought process. The user thinks of one of a limited number of gestures itwants from the robot, which has been fitted with a Brain Machine Interface.

(d) Aircraft

Honda has also pioneered new technology in its HA-420 HondaJet that allows new levelsof reduced drag, increased aerodynamics and fuel efficiency thus reducing operatingcosts.
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(e) Mountain bikes

Honda has also built a Downhill racing bike, known as the Honda RN-01. Honda hastaken on several people to pilot the bike, among them is Greg Minnaar. The team isknown as Team G Cross Honda. The key feature of this bike is the gearbox, which

replaces the standard Derailleurfound on most bikes.

1.5 Size of organization

1.5.1 Sales

Calendar Year Total US sales
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1999 1,076,893

2000 1,158,860

2001 1,207,639

2002 1,247,834

2003 1,349,847

2004 1,394,398

2005 1,462,472

2006 1,509,358

2007 1,551,542

2008 1,284,261

2009 1,150,784

1.5.2 Sales and Service Network

Honda Siel Cars India has 117 dealerships in 70 cities. HSCI dealerships are based on the

3S Facility (Sales, Service, Spares) format.

It plans to increase the number ofdealerships to 160 by 2014.

1.5.3 Sales performance

Honda Siel Cars India (HSCI) Ltd., leading manufacturer of premium cars in India, sold55,884 units during the period April '09 - February '10 as against 45,052 units during thesame period last year recording an increase of 24%.

Manpower Differs country to country with the set up of plants. Each plant has different

number of workers and employees. It follows the chain from top to bottom in rankingsand position of the employees and strive the goal of harmony amongst them with as muchsuccess.


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1.6 Organisation structure of the company


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Changes in Responsibilities of Board Members (Effective as of April 1, 2010)

Name and Title New Responsibilities Current Responsibilities

Takanobu ITO President and Chief Executive Officer -President and Chief Executive Officer-President and Director of Honda R&D Co., Ltd.

Koichi KONDO -Executive Vice President-Compliance Officer, Government andIndustrial Affairs

Executive Vice President

Atsuyoshi HYOGO Senior Managing Director -Senior Managing Director -Chief Operating Officer for Regional Operations(China)-President of Honda Motor (China) InvestmentCorporation, Ltd.

Mikio YOSHIMI Senior Managing Director -Senior Managing Director -Compliance Officer, Government and IndustrialAffairs

Tatsuhiro OYAMA -Managing Director-Chief Operating Officer for MotorcycleOperations-Chief Officer for Driving Safety PromotionCenter

-Managing Director-Chief Operating Officer for Motorcycle Operations

Hiroshi SODA Director -Director

-Chief Operating Officer for Business SupportOperations,-Chief Officer for Driving Safety Promotion Center- Corporate Communications


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1.7. Market share & position of the company in the industry.

1.7.1 Current Market Position

(a)With high fuel prices and a weak US economy in June 2008, Honda reported a 1%sales increase while its rivals, including the Detroit Big Three and Toyota, have reporteddouble-digit losses. Honda's sales were up almost 20 percent from the same month last

year. The Civic and the Accord were in the top five list of sales. Analysts have attributedthis to two main factors. First, Honda's product lineup consists of mostly small to mid-size, highly fuel-efficient vehicles. Secondly, over the last ten years, Honda has designedits factories to be flexible, in that they can be easily retooled to produce any Honda modelthat may be in-demand at the moment.

(b) Nonetheless, Honda, Nissan, and Toyota, were still not immune to the global financialcrisis of 2008, as these companies reduced their profitability forecasts. The economiccrisis has been spreading to other important players in the vehicle related industries aswell.[16][17] In November 2009 the Nihon Keizai Shinbun reported that Honda Motorexports have fallen 64.1%.[18]

(c) At the 2008 Beijing Auto Show, Honda presented the Li Nian ("concept" or "idea") 5-door hatchback and announced that they were looking to develop an entry-level brandexclusively for the Chinese market similar to Toyota's Scion brand in the USA. Thebrand would be developed by a 50-50 joint-venture established in 2007 with GuangzhouAutomobile Industry Group.

HSCI sold 4,595 units in June 2010

(Thursday, July 01, 2010,New Delhi)

New Delhi, July 1, 2010: Honda Siel Cars India Ltd, leading manufacturer ofPremium Cars in India sold 4595 units in the month of June10 as against 4067 unitssold in May10 recording a growth of 13%.

The company had sold 5048 units in the corresponding month last year.
http://en.wikipedia.org/wiki/Big_Three_automobile_manufacturershttp://en.wikipedia.org/wiki/Toyotahttp://en.wikipedia.org/wiki/Honda_Civichttp://en.wikipedia.org/wiki/Honda_Accordhttp://en.wikipedia.org/wiki/Nissanhttp://en.wikipedia.org/wiki/Toyotahttp://en.wikipedia.org/wiki/Global_financial_crisis_of_2008http://en.wikipedia.org/wiki/Global_financial_crisis_of_2008http://en.wikipedia.org/wiki/Honda#cite_note-15%23cite_note-15http://en.wikipedia.org/wiki/Honda#cite_note-16%23cite_note-16http://en.wikipedia.org/wiki/Nihon_Keizai_Shinbunhttp://en.wikipedia.org/wiki/Honda#cite_note-17%23cite_note-17http://en.wikipedia.org/wiki/Scion_(automobile)http://en.wikipedia.org/wiki/Guangzhou_Automobile_Industry_Grouphttp://en.wikipedia.org/wiki/Guangzhou_Automobile_Industry_Grouphttp://en.wikipedia.org/wiki/Big_Three_automobile_manufacturershttp://en.wikipedia.org/wiki/Toyotahttp://en.wikipedia.org/wiki/Honda_Civichttp://en.wikipedia.org/wiki/Honda_Accordhttp://en.wikipedia.org/wiki/Nissanhttp://en.wikipedia.org/wiki/Toyotahttp://en.wikipedia.org/wiki/Global_financial_crisis_of_2008http://en.wikipedia.org/wiki/Global_financial_crisis_of_2008http://en.wikipedia.org/wiki/Honda#cite_note-15%23cite_note-15http://en.wikipedia.org/wiki/Honda#cite_note-16%23cite_note-16http://en.wikipedia.org/wiki/Nihon_Keizai_Shinbunhttp://en.wikipedia.org/wiki/Honda#cite_note-17%23cite_note-17http://en.wikipedia.org/wiki/Scion_(automobile)http://en.wikipedia.org/wiki/Guangzhou_Automobile_Industry_Grouphttp://en.wikipedia.org/wiki/Guangzhou_Automobile_Industry_Group


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Model wise break-up:Jazz: 507; City: 3544; Civic: 339; Accord: 157; CRV: 48

1.8. Present leadership

1.8.1 Leadership

19481973 Soichiro Honda 19731983 Kiyoshi Kawashima 19831990 Tadashi Kume 19901998 Nobuhiko Kawamoto 19982004 Hiroyuki Yoshino 20042009 Takeo Fukui

since 2009 Takanobu Ito

1.8.2 Honda Siel Automobile

Mr. Takashi Nagai

President & CEO- Honda Siel Cars India Ltd., Honda

Motor India Private Ltd.

Takashi Nagai is President & CEO, Honda Siel Cars India Ltd.and Honda Motor India Private Ltd. from April 2010.

He is also the head of Hondas overall operations in the entireSouth West Asia region.

He has been associated with the Honda Motor Co. for morethan 27 years. Nagai joined Honda in 1982 and began his career in Production Control atcompanys Hamamatsu Plant in Japan.

Takashi Nagai has vast experience in the automobile industry, having worked with Hondaventures in different markets, across the globe including America and Europe. FromFebruary 2003 to January 2006, Nagai was stationed in Mexico as Director of Honda de

Mexico, S.A. de C.V. In February 2006, Nagai was appointed as General Manager,Overseas Operations Office No. 1 of Honda Motor Co. Ltd. looking after North America,South America and European market. In April 2007, Nagai became Executive VicePresident, Asian Honda Motor Company Ltd. and a Director of Honda Motor Co. Ltd fromJune of the same year.
http://en.wikipedia.org/wiki/Soichiro_Hondahttp://en.wikipedia.org/wiki/Nobuhiko_Kawamotohttp://en.wikipedia.org/wiki/Takeo_Fukuihttp://en.wikipedia.org/wiki/Soichiro_Hondahttp://en.wikipedia.org/wiki/Nobuhiko_Kawamotohttp://en.wikipedia.org/wiki/Takeo_Fukui


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1.9 Sources of Data Collection

1.9.1 The sources of data collection were primary and secondary source. Primary data has

been send for analysis of the objective of research. As well as secondary data proved to

be helping hand incompletion of the project.

1.9.2 Primary data: Primary data are those, which are, collected for the first time, and it isoriginal in character.

Secondary data: Secondary data on the other hand are those which have already been

collected by someone else and which have already been passed through the statistical

process. In this secondary data used were, books, magazines, internet and other project

reports. Reasons for selecting the primary data:

(a) Since the main objective of the project, is to analyse the organisation in a

detailed manner & find out the variation & deviation in the concept taught in classroom

& the corporate world. The best tool that can satisfy all the requirement of data was the

primary data. One needs to have the depth knowledge the customer views, and their

perception and their investment pattern. The information has been collected through

questionnaire.

(b) Thus the primary data have been proved one of the potential approaches in collectionof the information.


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Chapter-2: SWOT Analysis of the Company

2.1. Strengths

Familiar brand name

New age design

Reputation for producing high quality products.

Honda has won many products for initial quality and customer satisfaction.

Automobiles are reliable and generally fuel efficient

Strong research and development which has afforded them competitiveness inquality products

They were a pioneer in engineering low emissions internal combustion and hybrid

technology

Honda is the only other manufacturer outside of Mitsubishi to branch out intomany other areas outside of automobiles, like motorcycles, scooters, powerequipments (generators), Asimo Robot

Weaknesses

Prices are higher for non-luxury vehicles than comparable models by othermanufacturers.

Their vehicles also have a reputation for being underpowered.


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Due to the latest technology being used in Honda products it is difficult to keepthe prices low

2.2 Opportunities

To continue progressing low emission vehicles and alternative powersources.While they have made progress in this area, the technology is stilloverpriced for the consumer, and the infrastructure does not exist.

Another area of opportunity would be developing nations like India and China.These are large markets, and cheap dependable transportaion would be a hotseller.

Easy financing.

Threats

If continuous innovations are not done, then competitors will beat you with lastyears technology

Strict environmental laws like EURO III norms

Liberal Government policies

Too many competitors in automotive industry.

Expanding market size of compact cars ( currently it is around 76% )

Regaining the lead of low emissions is a risky proposition as other companies arecoming out with new and cost effective ideas of producing low emission vehicles.

Increasing steel prices will make it difficult for the companies to continue thecurrent pricing strategy.


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2.3 Corporate Governance

Basic stance regarding Corporate Governance :

(a) Based on its fundamental corporate philosophy, the Company is working to enhance

corporate governance as one of its most important management issues. Our aim is to have

our customers and society, as well as our shareholders and investors, place even greatertrust in us and to ensure that Honda is a company that society wants to exist.

(b) To ensure objective control of the Company's management, outside directors and

outside corporate auditors are appointed to the Board of Directors and the Board of

Corporate Auditors, which are responsible for the supervision and auditing of the

Company. Honda has also introduced an operating officer system, aimed at strengthening

both the execution of business operations at the regional and local levels and makingmanagement decisions quickly and appropriately. The term of office of each director is

limited to one year, and the amount of remuneration payable to them is determined

according to a standard that reflects their performance in the Company. Our goal in doing

this is to maximize the flexibility with which our directors respond to changes in the

operating environment.

(c) With respect to business execution, Honda has established a system for operating its

organizational units that reflects its fundamental corporate philosophy. For example,

separate headquarters have been set up for each region, business, and function, and a

member of the Board of Directors or an operating officer has been assigned to each

headquarters and main division. In addition, by having the Executive Council and


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regional operating boards deliberate important matters concerning management, the

Company implements a system that enables swift and appropriate decision making.

(d) With respect to internal controls, compliance systems and risk management systems

have been designed and implemented appropriately following the basic policies for the

design of internal controls decided by the Board of Directors.

(e) To enhance even further the trust and understanding of shareholders and investors,

Honda's basic policy emphasizes the appropriate disclosure of Company information,

such as by disclosing financial results on a quarterly basis and timely and accurately

giving public notice of and disclosing its management strategies. Honda will continue

raising its level of transparency in the future.


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Chapter-3: Analysis of Financial Reports of the

Company

3.1 Balance sheet

(In crs)

Mar ' 10 Mar ' 09

Equity share capital 10.14 10.14

Share application money - -

Preference share capital - -

Reserves & surplus 192.21 184.27

Secured loans - -

Unsecured loans - -

Total 202.35 194.41Gross block 148.30 144.56

Less : revaluation reserve - -

Less : accumulated depreciation 84.88 83.25

Net block 63.42 61.31

Capital work-in-progress 3.44 3.59

Investments - -

Current assets, loans & advances 185.30 263.21

Less : current liabilities & provisions 49.81 133.70

Total net current assets 135.49 129.51

Miscellaneous expenses not written - -Total 202.35 194.41

Book value of unquoted investments - -

Market value of quoted investments - -

Contingent liabilities 51.08 58.34

Number of equity shares outstanding (Lacs) 101.43 101.43


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3.2 Profit & Loss Statement

(in crs)

Mar ' 10 Mar ' 09

Income

Operating income 306.99 236.36

Expenses

Material consumed 193.75 152.45

Manufacturing expenses 5.60 11.96

Personnel expenses 24.85 22.76

Selling expenses - 16.77Administrative expenses 44.42 12.41

Expenses capitalised - -

Cost of sales 268.62 216.35

Operating profit 38.36 20.01

Other recurring income 8.86 10.50

Adjusted PBDIT 47.22 30.50

Financial expenses 0.19 2.19

Depreciation 7.43 5.79

Other write offs - -

Adjusted PBT 39.61 22.52Tax charges 6.87 8.64

Adjusted PAT 32.73 13.88

Non recurring items -20.04 -0.05

Other non cash adjustments - 1.82

Reported net profit 12.69 15.64

Earnings before appropriation 85.25 78.88

Equity dividend 4.06 4.06

Preference dividend - -

Dividend tax 0.69 0.69

Retained earnings 80.51 74.13

3.3 Cash Flow Statement


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(in crs)

Mar ' 10 Mar ' 09

Profit before tax 19.56 24.28

Net cash flow-operating activity 24.51 -6.03

Net cash used in investing activity -1.96 -14.02Net cash used in fin. activity -4.77 -4.84

Net inc/dec in cash and equivalent 17.78 -24.89

Cash and equivalent begin of year 83.08 108.03

Cash and equivalent end of year 100.86 83.13

3.4 Accounting Ratios

(in crs)

Mar ' 10 Mar ' 09

Per share ratios

Adjusted EPS (Rs) 32.27 13.68

Adjusted cash EPS (Rs) 39.60 19.39Reported EPS (Rs) 12.51 15.42

Reported cash EPS (Rs) 19.83 21.13

Dividend per share 4.00 4.00

Operating profit per share (Rs) 37.82 19.73

Book value (excl rev res) per share (Rs) 199.50 6.75

Book value (incl rev res) per share (Rs.) 199.50 6.75

Net operating income per share (Rs) 302.66 233.03

Free reserves per share (Rs) - 181.42

Profitability ratiosOperating margin (%) 12.49 8.46

Gross profit margin (%) 10.07 6.01

Net profit margin (%) 4.01 6.33

Adjusted cash margin (%) 12.71 7.96

Adjusted return on net worth (%) 16.17 7.13

Reported return on net worth (%) 6.27 8.04


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Mar ' 10 Mar ' 09

Return on long term funds (%) 19.66 12.71

Leverage ratios

Long term debt / Equity - -

Total debt/equity - -

Owners fund as % of total source 100.00 100.00

Fixed assets turnover ratio 2.07 1.69

Liquidity ratios

Current ratio 3.72 1.97

Current ratio (inc. st loans) 3.72 1.97

Quick ratio 2.73 1.53

Inventory turnover ratio 6.82 4.45

Payout ratios

Dividend payout ratio (net profit) 37.40 30.34

Dividend payout ratio (cash profit) 23.59 22.14

Earning retention ratio 85.50 65.81

Cash earnings retention ratio 88.19 75.87

Coverage ratios

Adjusted cash flow time total debt - -

Financial charges coverage ratio 253.47 13.91

Fin. charges cov.ratio (post tax) 108.99 10.77

Component ratios

Material cost component (% earnings) 63.64 65.40

Selling cost Component - 7.09

Exports as percent of total sales 12.87 14.51

Import comp. in raw mat. consumed 27.88 22.63

Long term assets / total Assets 0.26 0.18

Bonus component in equity capital (%) - -

Chapter-4: Lessons Learnt

4.1 Following is the overall experience I got while working:

4.1.1


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Team Work:

Team work is workperformed by a team. The quality of teamwork may be measured byanalysing the effectiveness of the collaboration in the following ways

1. communication

2. coordination

3. balance of contributions

4. mutual support

5. effort

4.1.2

Management:

(a) Management in all business areas and organizational activities are the acts of gettingpeople together to accomplish desired goals and objectives. Management comprisesplanning, organizing,staffing, leading or directing, and controlling an organization (agroup of one or more people or entities) or effort for the purpose of accomplishing a goal.Resourcing encompasses the deployment and manipulation ofhuman resources,financialresources, technological resources, and natural resources

(b) Because organizations can be viewed as systems, management can also be defined as

human action, including design, to facilitate the production of useful outcomes from asystem. This view opens the opportunity to 'manage' oneself, a pre-requisite to attemptingto manage others

(c) Relationship with Customers: Customer relationship management (CRM) is a broadlyrecognized, widely-implemented strategy for managing and nurturing a companys
http://en.wikipedia.org/wiki/Workhttp://en.wikipedia.org/wiki/Teamhttp://en.wikipedia.org/wiki/Qualityhttp://en.wikipedia.org/wiki/Measurementhttp://en.wikipedia.org/wiki/Collaborationhttp://en.wikipedia.org/wiki/Communicationhttp://en.wikipedia.org/wiki/Coordinationhttp://en.wikipedia.org/wiki/Fair_divisionhttp://en.wikipedia.org/wiki/Support_grouphttp://en.wikipedia.org/wiki/Efforthttp://en.wikipedia.org/wiki/Planninghttp://en.wikipedia.org/wiki/Organizinghttp://en.wikipedia.org/wiki/Staffinghttp://en.wikipedia.org/wiki/Leadershiphttp://en.wikipedia.org/wiki/Control_(management)http://en.wikipedia.org/wiki/Organizationhttp://en.wikipedia.org/wiki/Resourcinghttp://en.wikipedia.org/wiki/Human_resourceshttp://en.wikipedia.org/wiki/Financialhttp://en.wikipedia.org/wiki/Technologicalhttp://en.wikipedia.org/wiki/Natural_resourceshttp://en.wikipedia.org/wiki/Systemshttp://en.wikipedia.org/wiki/Workhttp://en.wikipedia.org/wiki/Teamhttp://en.wikipedia.org/wiki/Qualityhttp://en.wikipedia.org/wiki/Measurementhttp://en.wikipedia.org/wiki/Collaborationhttp://en.wikipedia.org/wiki/Communicationhttp://en.wikipedia.org/wiki/Coordinationhttp://en.wikipedia.org/wiki/Fair_divisionhttp://en.wikipedia.org/wiki/Support_grouphttp://en.wikipedia.org/wiki/Efforthttp://en.wikipedia.org/wiki/Planninghttp://en.wikipedia.org/wiki/Organizinghttp://en.wikipedia.org/wiki/Staffinghttp://en.wikipedia.org/wiki/Leadershiphttp://en.wikipedia.org/wiki/Control_(management)http://en.wikipedia.org/wiki/Organizationhttp://en.wikipedia.org/wiki/Resourcinghttp://en.wikipedia.org/wiki/Human_resourceshttp://en.wikipedia.org/wiki/Financialhttp://en.wikipedia.org/wiki/Technologicalhttp://en.wikipedia.org/wiki/Natural_resourceshttp://en.wikipedia.org/wiki/Systems


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interactions with customers, clients and sales prospects. It involves using technology toorganize, automate, and synchronize business processesprincipally sales activities, butalso those formarketing,customer service, and technical support. The overall goals are tofind, attract, and win new clients, nurture and retain those the company already has,entice former clients back into the fold, and reduce the costs of marketing and client

service. Customer relationship management denotes a company-wide business strategyembracing all client-facing departments and even beyond. When an implementation iseffective, people, processes, and technology work in synergy to increase profitability, andreduce operational costs.

4.1.3

Marketing:

(a) Marketing is used to identify the customer, to keep the customer, and to satisfy thecustomer. With the customer as the focus of its activities, it can be concluded thatmarketing management is one of the major components ofbusiness management.Marketing evolved to meet the stasis in developing new markets caused by maturemarkets and overcapacities in the last 2-3 centuries. The adoption of marketing strategiesrequires businesses to shift their focus from production to the perceived needs and wantsof their customers as the means of staying profitable.

(b) The term marketing concept holds that achieving organizational goals depends on

knowing the needs and wants oftarget markets and delivering the desired satisfactions.Itproposes that in order to satisfy its organizational objectives, an organization shouldanticipate the needs and wants of consumers and satisfy these more effectively thancompetitors.

4.1.4

Sales:

A sale is the pinnacle activity involved in the selling products or services in return for

money or other compensation. It is an act of completion of a commercial activity.

The seller - the provider of the goods or services - completes a sale in response to anacquisition or to an appropriation or to a request. There follows the passing of title(property or ownership) in the item, and the application and due settlement of a price, theobligation for which arises due to the seller's requirement to pass ownership. Ideally, aseller agrees upon a price at which he willingly parts with ownership of or any claimupon the item. The purchaser, though a party to the sale, does not execute the sale, only
http://en.wikipedia.org/wiki/Saleshttp://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Customer_servicehttp://en.wikipedia.org/wiki/Technical_supporthttp://en.wikipedia.org/wiki/Customerhttp://en.wikipedia.org/wiki/Customerhttp://en.wikipedia.org/wiki/Marketing_managementhttp://en.wikipedia.org/wiki/Outline_of_business_managementhttp://en.wikipedia.org/wiki/Mature_markethttp://en.wikipedia.org/wiki/Mature_markethttp://en.wikipedia.org/wiki/Overcapacityhttp://en.wikipedia.org/wiki/Manufacturinghttp://en.wikipedia.org/wiki/Profit_(accounting)http://en.wikipedia.org/wiki/Target_marketshttp://en.wikipedia.org/wiki/Sellinghttp://en.wikipedia.org/wiki/Acquisitionhttp://en.wikipedia.org/wiki/Appropriationhttp://en.wikipedia.org/wiki/Saleshttp://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Customer_servicehttp://en.wikipedia.org/wiki/Technical_supporthttp://en.wikipedia.org/wiki/Customerhttp://en.wikipedia.org/wiki/Customerhttp://en.wikipedia.org/wiki/Marketing_managementhttp://en.wikipedia.org/wiki/Outline_of_business_managementhttp://en.wikipedia.org/wiki/Mature_markethttp://en.wikipedia.org/wiki/Mature_markethttp://en.wikipedia.org/wiki/Overcapacityhttp://en.wikipedia.org/wiki/Manufacturinghttp://en.wikipedia.org/wiki/Profit_(accounting)http://en.wikipedia.org/wiki/Target_marketshttp://en.wikipedia.org/wiki/Sellinghttp://en.wikipedia.org/wiki/Acquisitionhttp://en.wikipedia.org/wiki/Appropriation


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the seller does that. To be precise the sale completes prior to the payment and gives riseto the obligation of payment. If the seller completes the first two above stages (consentand passing ownership) of the sale prior to settlement of the price, the sale remains validand gives rise to an obligation to pay

4.1.5

Manufacturing:

Manufacturing is the use ofmachines,tools and labor to make things for use or sale. Theterm may refer to a range of human activity, from handicraft to high tech, but is mostcommonly applied to industrial production, in which raw materials are transformed intofinished goods on a large scale. Such finished goods may be used for manufacturingother, more complex products, such as household appliances orautomobiles, or sold to

wholesalers, who in turn sell them to retailers, who then sell them to end users - the"consumers".

Manufacturing takes turns under all types ofeconomic systems. In a free marketeconomy, manufacturing is usually directed toward the mass production ofproducts forsale to consumers at a profit. In a collectivist economy, manufacturing is more frequentlydirected by the state to supply a centrally planned economy. In free market economies,manufacturing occurs under some degree of government regulation.

Modern manufacturing includes all intermediate processes required for the productionand integration of a product's components. Some industries, such as semiconductorand

steel manufacturers use the term fabrication instead. The manufacturing sector is closelyconnected with engineering and industrial design.

4.2 The practical knowledge which I have gained

Outsourcing the manufacturing of different products.

Assembling the products to build Products for the end users.

Measuring the performance and Efficiency of the Product.

Marketing of the product.
http://en.wikipedia.org/wiki/Machinehttp://en.wikipedia.org/wiki/Toolhttp://en.wikipedia.org/wiki/Handicrafthttp://en.wikipedia.org/wiki/High_tech_manufacturinghttp://en.wikipedia.org/wiki/Industryhttp://en.wikipedia.org/wiki/Raw_materialhttp://en.wikipedia.org/wiki/Finished_goodhttp://en.wikipedia.org/wiki/Major_appliancehttp://en.wikipedia.org/wiki/Automobilehttp://en.wikipedia.org/wiki/Wholesalehttp://en.wikipedia.org/wiki/Retailerhttp://en.wikipedia.org/wiki/Consumershttp://en.wikipedia.org/wiki/Economic_systemhttp://en.wikipedia.org/wiki/Mass_productionhttp://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Consumerhttp://en.wikipedia.org/wiki/Collectivism#Economicshttp://en.wikipedia.org/wiki/Regulationhttp://en.wikipedia.org/wiki/Fabrication_(semiconductor)http://en.wikipedia.org/wiki/Fabrication_(metal)http://en.wikipedia.org/wiki/Engineeringhttp://en.wikipedia.org/wiki/Industrial_designhttp://en.wikipedia.org/wiki/Machinehttp://en.wikipedia.org/wiki/Toolhttp://en.wikipedia.org/wiki/Handicrafthttp://en.wikipedia.org/wiki/High_tech_manufacturinghttp://en.wikipedia.org/wiki/Industryhttp://en.wikipedia.org/wiki/Raw_materialhttp://en.wikipedia.org/wiki/Finished_goodhttp://en.wikipedia.org/wiki/Major_appliancehttp://en.wikipedia.org/wiki/Automobilehttp://en.wikipedia.org/wiki/Wholesalehttp://en.wikipedia.org/wiki/Retailerhttp://en.wikipedia.org/wiki/Consumershttp://en.wikipedia.org/wiki/Economic_systemhttp://en.wikipedia.org/wiki/Mass_productionhttp://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Consumerhttp://en.wikipedia.org/wiki/Collectivism#Economicshttp://en.wikipedia.org/wiki/Regulationhttp://en.wikipedia.org/wiki/Fabrication_(semiconductor)http://en.wikipedia.org/wiki/Fabrication_(metal)http://en.wikipedia.org/wiki/Engineeringhttp://en.wikipedia.org/wiki/Industrial_design


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Testing which includes road tests and emission tests is done

Finalising the product

Taking responsibility of services to be provided to the end users with maximumsatisfaction level.

4.3 If any difficulties or bad experience faced and recommendations for

other students whether they should be sent or not in this company in

future

4.3.1Personally I did not face any difficulties while performing my work , research and did notexperienced any problems while undergoing my summer training. I am very thankful to

my seniors in the organization , to my colleagues , to other employees that they helpedme out in every case and made me have a pleasant stay over there while teaching andexplaining things to me how the actual work is carried out. They were very co-operative.

4.3.2


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Any person who is looking for training or a job in mere future considering the automobilesector , I would like to recommend him/her to join and experience a challenging yetlearning life with Honda Siel Cars India where I took my training for 2 months.Here, youre most likely to develop a good character, ability to make yourself overeffective and efficient , learn the management and administration, the ground level work,

the perfect environment and surroundings to work at.

Bib l i og raphy :

Marketing Management

-Philip Kotler

Websites

-www.hondamotorindia.com

-www.indiacar.com


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-www.india.net

-www.cybersteering.com

-www.google.com

-www.automeet.com

Magazines

-Business World

Newspapers

-Economic Times

-Business Standard

honda marketting

Documents