COORDINATION SYSTEM FOR ADAPTING INTERNATIONAL MARKET AND COMPETITION: A CASE STUDY OF HONDA'S MOTORCYCLE BUSINESS

Abstract

 In a few decades, many Japanese manufacturing companies have expended overseas in various countries and regions and established bases locally. These bases have developed multiply, some has developed as planned, some has not. In this situation, for the companies, how to coordinate these multiple resources, including bases, to realize international optimal resource allocation become more important problem. However, this problem is hard to solve. Therefore, this paper discusses how these companies allocate their resources to solve this problem through the case of Honda's motorcycle business – the Japanese motorcycle company that is known as the best practice of global business.

 As a result of case study, the findings as follows: (1) Honda has aimed for the optimal resource allocation through a long-term activity in which Honda has adapted the changes in the market and the bases to shape the overall resource allocation, and has changed the pattern of allocation after a certain period; (2) to continue such long-term activities, Honda had prepared a powerful coordination system through the cooperation of its headquarters and overseas bases.

 Honda's coordination system enables itself to go on its path toward optimal resource allocation on the assumption that changes of market and development of bases never end, by incorporating these changes into the long-term vision and concrete plan. This indicates that international companies should build coordination system organizationally and formally.