Business Strategy and Finance research of Honda Motor Company, Ltd

Abstract

This article presents a comprehensive analysis of Honda Motor Company, Ltd, examining its business segments, financial performance, and strategic positioning to identify key areas for improvement. It highlights the automobile segment as the main revenue driver and employs Porter's Five Forces and the 9Ms model to assess Honda's competitive strengths and resources. The article also categorizes stakeholders using the Mendelow matrix and explores strategic options with Ansoff's matrix and the Boston Consulting Group model. A financial comparison with Toyota from 2018 to 2020 reveals areas where Honda's profitability and liquidity could be enhanced.  The article concludes with recommendations to reduce operational costs, optimize asset investments, improve inventory turnover, extend payable terms, mitigate losses in the power products segment, and increase investment in new power vehicles, all while emphasizing corporate social responsibility. Despite existing weaknesses, the article confirms Honda's strategic direction and competitive strength in the global automotive market.