STRATEGIC MANAGEMENT

Strategic Management

Strategic Management

Introduction

In today's world, an organization needs to stay competitive, and in order to be competitive the organization needs to be capable of responding to challenges like better leveraging the organization's portfolio of intellectual, strengthening the organizations' balance sheet, responding to global expansion, developing/enhancing their brands, and fostering innovation and creativity; each of the above mentioned tasks call for an appropriate strategy of growth, which is properly implemented after its formulation. Even though, not every strategy of growth is suitable for every business. Certainly, choosing the appropriate strategy of growth is completely contextual; they solution for discovering the correct strategy of growth, which is suitably for the organization and the market its operating in. this is because a strategy that is wrong or not appropriate for a business could devastate that business, it is crucial for the top management of an organization for determining whether they are selling existing or new products in an existing or new market (Penrose, 1959).

This paper discusses strategic management in a holistic context and the company that is selected for the analysis is “Honda Motor Co. Ltd”. Furthermore, the paper discusses Honda Motor Co. Ltd's corporate strategy and explains what business the organization is in or wants to be in. For the purpose of describing my growth objectives for this organization, I have assumed that I am in charge of the growth strategies at Honda Motor Co. Ltd. In addition to this the paper even explains the different types of growth strategies and determines the type of growth strategy I would use for Honda Motor Co. Ltd.

Discussion

An organizations' strategy is classified by the answers to a couple of questions: How the organization competes and where does the organization compete? The first question deals with the way the organization is planning for establishing a competitive advantage over its competitors within the market it is serving. The second question deals with the scope of the organization's activities: in which activities, products and markets should the organization be involved in? The traditional approaches towards strategy are observed as attempting for dichotomizing the strategic decision making between concerns linked to competing within a sector or market (domain navigation) and those linked to scope (domain selection). The initial set of decisions classifies its business or competitive strategy; the subsequent set of decisions is explaining an organization's corporate strategy (Teece, 1980).

Company Overview:

Honda Motor Co. Ltd is an organization that is engaged in the manufacture of power products, automobiles and motorcycles. Honda Motor even offers a broad array of financial services to its dealers and customers. Honda Motor Co. Ltd operates through a worldwide network of 91 affiliates and 383 subsidiaries throughout the globe. Honda Motor Co. Ltd operates through 4 segments of business including power products, financial service business, motorcycle business, automobile business and other business. The segment of automobiles manufacturers mini cars, sport utility vehicles, mini vans, multi-wagons and passenger cars. Honda Motor Co. Ltd's vehicles incorporate gasoline engines of six, four or three-cylinder, gasoline-electric hybrid systems and diesel ...