...INTERNATIONAL FINANCIAL MANAGEMENT PROJECT (TBS-980) SECTOR-AUTOMOBILE NISSAN MOTORS CO. LTD Prepared By :- Varun Gupta Student id :- 4449770 CONTENTS 1) INTRODUCTION COMPANY OVERVIEW BUSINESS STRATEGY 2) FINANCIAL STATEMENTS FOR YEAR 2009-2012 (end Mar31) INCOME STATEMENT BALANCE SHEET 3) RATIO ANALYSIS CONCLUSIONS 4) OPERATING LEVERAGE AND DEGREE OF FINANCIAL LEVERAGE (DOFL) CONCLUSIONS 5) PRO FORMA INCOME STATEMENT CONCLUSIONS 6) EXTERNAL FUND REQUIREMENT FOR YEAR 2013 7) ADVICE FOR SHARE HOLDERS 8) REFERENCES COMPANY OVERVIEW - NISSAN MOTOR CO. LTD Nissan motor co. ltd was formed by Yoshisuke Aikawa in 1934 at Japan. Initially Nissan Motor produced trucks, airplanes and engines for Japanese military. Later they produced different cars for the public. In 1950 Nissan Motors decided to expand globally to different markets. Their intention was to target big and different markets like US, Europe, AUS. Their international venture started in 1959. In 1959 Nissan Motors decided to exhibit their cars in US. As US was the largest market in the world. They showcased their cars at Los Angles auto show. After that they expanded to different markets like Australia, UK. They produced different kind of cars like Datsun-fairlady roadsters, Datsun510, Datsun 240z. In 1970 they became one of the world’s largest exporter. In 1973 Nissan expanded their...
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...take leadership in product innovation and c. exploit opportunities for economies of mass production by gearing designs to production objectives. - Developed new market segment : local deliveries 7) 1959, enter US market 8) Established a US subsidiary company : American Honda Motor Company – offering very small lightweight morotcycles: easier to handle , less than $250 retail, much much cheaper 9) Developed the market region by region, west to east, 10) 1961, lined up 125 dealers and spent 150,000 on regional advertising. Advertising represented a concerted effort to overcome the unsavory image of motorcyclists that had developed since the 19402, given special prominence by the 1953 movie The Wild Ones, which starred Marlon Brando as the surly, destructive leader of a motorcycle gang. 11) Phenomenally successful, sales rose from $500,000 in 1960 60 $77 millions in 1965. Honda, Yamaha, and Suzuki together had 85% of U.S market; lightweight motorcycles had come to dominate the market. 12) Addressed its appeal primarily to middle-class consumers and claimed. 13) By the mid-1970s the Japanese producers had come to dominate a market shared by European and American producers 20 years earlier 14) Honda created the market for the recreational users of...
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...In October 1946, Soichiro Honda established the Honda Technical Research Institute in Hamamatsu, Japan, to develop and produce small 2-cycle motorbike engines. Two years later, Honda Motor Company, Ltd. was born, and in 1959 Honda opened its first storefront in Los Angeles with six industrious employees. The history of the Honda Motor Company began with an autophile and his dream. Japanese entrepreneur Soichiro Honda had loved motor vehicles almost since birth. When he was fifteen, he became part of an auto repair shop, and the passion grew. His greatest dream was to become a world-renowned car racer, and it was an ambition which he would fulfill in time. But first, the auto lover found himself employed as a technician. During his free time, he nurtured his growing interest in motor vehicles by building race cars and tooling with his Harley motorcycle. Honda possessed a natural talent for anything motorized, and his skills allowed him to open the doors of his very own repair shop in 1928. As his curiosity grew, he attended technical school in order to discover the perfect way to manufacture a piston ring. Honda combined his inborn knowledge with his new technical knowledge to take the first tentative steps toward entrepreneurial success. He utilized what he had learned about piston rings to form the Tokai Seiki Company. In 1928, he secured his first of many patents (for automobile wheel spokes). Then, as World War II ravaged Japan, Honda cornered the market on badly needed generator...
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...distributors, Honda established a U.S. subsidiary, American Honda Motor Company and moved forward in the U.S. market by presenting very small lightweight motorcycles. Female riders were kept in mind while designing its structure, it was simple to handle and cost effective. Honda focused mainly on middle class consumers. This marketing endeavour was supported by substantial advertisement and promotional strength. Honda used its productivity-based cost advantage and R&D competency to launch new models at a price lesser than that of the competitors. The time gap between conception and production was really short. Honda was also found to have a large variety of designs that could be proposed if the market progressed. Honda had formed the biggest dealership network in the U.S. Honda dealers were higher than their competitors. Honda was prepared to undergo short term losses in order to establish a satisfactory selling and distribution network. It gave a lot of importance to market share and sales volume. Hence the maintenance and expansion of the market share played an integral role. The yearly sales target simply had to be met by the company. The sales volume had to be developed quicker as compared to that of the competitors. Honda did not target any particular market segments in the U.S., but displayed the capacity to conduct experiments, to correct errors, to re-design and hence unearth newer prospects. Honda was an originator with profound technical proficiencies. Honda chased...
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...BUSINESS (ACCOUNTING) | |INDIVIDUAL PRESENTATION COVER SHEET | |NAME OF STUDENT |(VN) |(E) | |REGISTRATION NO. | |Class: FO6 ( A / ( B / ( C / | |UNIT TITLE |Unit 32: Quality Management in Business | |ASSIGNMENT TITLE |Honda Quality Management Approaches | |ASSIGNMENT NO |1 of 2 (Individual presentation) | |NAME OF ASSESSOR |Ms. Doti Chee | |SUBMISSION DEADLINE |To be advised | I, __________________________ hereby confirm that this assignment is my own work and not copied or plagiarised from any source. I have referenced the sources from which information is obtained by me for this assignment. ________________________________...
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...Honda workshop handout (Honda B) Extract taken from pages 84 – 89 of The Honda Effect. By: Pascale, Richard T. California Management Review. Summer96, Vol. 38 Issue 4, p80-91. 12p. Abstract: The article presents an excerpt of "Perspectives on Strategy: The Real Story Behind Honda's Success," by Richard T. Pascale, originally published in the Spring 1984 issue of "California Management Review". Copied under the terms of the Copyright Licensing Agency's (CLA) Higher Education licence, for students registered on UMSD7T-15-3 - Strategic management (business, international and management); UMSD7U-15-3 - Strategic management (accounting, economics and finance); and UMSDDJ-15-3 - Strategic management (marketing, events and tourism). Any account of Honda's successes must grasp at the outset the unusual character of its founder, Sochiro Honda, and his partner, Takeo Fujisawa. Honda was an inventive genius with a large ego and mercurial temperament, given to bouts of "philandering" (to use his expression).[ 8] Postwar Japan was in desperate need of transportation. Motorcycle manufacturers proliferated, producing clip-on engines that converted bicycles into make-shift "mopeds." Honda was among these, but it was not until he teamed up with Fujisawa in 1949 that the elements of a successful enterprise began to take shape. Fujisawa provided money as well as financial and marketing strengths. In 1950, their first D-type motorcycle was introduced. They were, at that juncture, participating...
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...to customers. A firm with a competitive advantage may experience higher profits than the average profit in the industry while competing for the same customers. In the case of Honda, this is true. Honda has many distinctive competencies based on its resource and capabilities that allow it to have a competitive advantage in the auto manufacturing industry. Three areas that give Honda a competitive advantage in the auto industry include Honda's engineering and design, research and development, and brand equity. In order to determine whether Honda's competitive advantage in these three areas is sustainable, we analyze and apply each one to the VRIO framework. Honda is unique in that its corporate structure is made of three companies. Honda Research and Development is in charge of research and development of innovative products for the company. Honda Motor produces, sells, and services the all Honda products. Honda Engineering develops manufacturing processes, systems and equipment used to build all Honda products. Honda's superior design capability has enabled it to build high-quality reliable products and has also added value to the Honda brand. Honda's efficient manufacturing processes have also kept production costs low relative to other automakers in the industry (Snipes 2008). In terms of value, Honda excels at using its engineering expertise and design skills to build reliable cars that simply work. This ability is quite valuable to the company and its industry. Although valuable...
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...demand, increasing proportion of cash sales and the less measurable metric of improved consumer sentiment. Going forward, ICRA expects the 2W industry to report a volume CAGR of 10-12% over the next five years to reach a size of ~21-23 million units by 2015-16 as it views the fundamental growth drivers comprising of expected steady GDP growth, moderate 2W penetration levels, favourable demographic profile, under developed public transport system and utility quotient of a 2W - to be intact. Additionally, the entry of new players in the industry, multitude of new model/ variant launches, growing distribution reach, cheaper ownership costs on a relative basis are expected to be some of the other prime movers for industry growth over the medium term. In ICRA’s view, while the trend in rising commodity prices, hardening interest rates and increasing fuel costs may lead to some moderation in industry...
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...Honda Introduction and Overview Honda Motor Co. Ltd. was incorporated in 1948 and originally manufactured and sold motorcycles (Whiston, 2012). Today, Honda is known for its manufacturing of many items – motorcycles, power products, engines (boat, generators and lawnmowers); and even private jets and robots (Whiston, 2012). For purposes of this research, however, we'll focus on Honda's auto-manufacturing abilities. During fiscal year 2012, Honda sold 15.7 million cars and motorcycles; automobiles constitute a little more than 70% of the company's revenue (Whiston, 2012). Honda has developed over the years. There are a wide varity of products avalialabe that serve many different purposes from the small general purpose engines to specialty custom made sport cars and now scooters. Honda has a earned the company a very good reputation from customers all over the world. From when the company was established until now, Honda has be on the leading edge by creating new value and offering many different products of high quality at a family friendly price, for its worldwide customer satisfaction. Honda is certainly on the list of many consumers, especially as we'll see in this paper, consumers are interested in reliability, quality and fuel efficiency. The problem Honda faces, however, is that it's seen as a "practical" car, one that someone will buy to save gas or to ensure safety in a crash This is something that has been pounded into consumers' heads, as many Honda ads in the past...
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...6253579 01266 03062010HNSTMD1 00000123901455NN0019365000000 MONTHLY STATEMENT Payment Information Payment Due Date Current Payment Due Total Amount Due Payoff Summary Payoff Amount Payoff Good Through March 27, 2010 Statement Date: March 5, 2010 $ 236.25 $ 236.25 $ 21,181.59 March 27, 2010 hondafinancialservices.com Customer Service: (800) 543-5636 Automated response 24 hours, 7 days a week Associates available weekdays from 9:00 am - 5:00 pm EST Account Information Account Number Vehicle Description VIN Number Regular Payment Amount Maturity Date Payments Remaining Annual Mileage Allowance 123901455 2010 HONDA ACCORD 1HGCP2F32AA022021 $ 236.25 November 27, 2012 32 12,000 For Correspondence Only: American Honda Finance Corporation P.O. Box 1027 Alpharetta, GA 30009-1027 American Honda Finance Corporation P.O. Box 105027 Atlanta, GA 30348-5027 For Payment Only: Activity Since Last Statement Date Description Amount Total You're protecting your information and the planet. 02/24/2010 Payment Received - Thank You! Base Rent $ 220.79 Tax $ 15.46 $ 236.25 Thank you for going green by choosing E-mail Notification Only of your monthly statements and correspondence. As you know, E-mail Notification Only not only saves paper, it reduces the odds of easy identity theft through discarded records or mail. Plus, all information is encrypted online before it's transmitted, so the only one who can read it is you. Green, safe, private. DIANA...
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...Environmental Manager for Hondaís twoOhio-based automobile manufacturing plants, was about to be visited by Mr. Suzuki, the most senior environmental official from Honda headquarters in Japan. The company had recently taken a strong interest in certification under the new ISO 14000 environmental management standards. Suzuki had asked Stockley to evaluate the environmental practices of the Ohio plants in light of the ISO standards. In particular, he was interested in whether lean production practices, the cornerstone of Honda’s high-quality manufacturing operations, were helping to achieve environmental performance or whether they were a hindrance. Although the manufacturing plants of other automobile companies in the United States had explicitly designed their environmental policies around federal and state regulations, Honda had tried to design policies that followed from, and were integrated with, its lean production philosophy. These policies were generally more flexible than traditional approaches and focused more on the end goal of efficiency than on meeting regulations. Stockley hoped to find the Honda approach better adapted to the ISO 14000 standards because of these characteristics. To respond to her charge, Stockley had gathered data on the environmental management and performance at the two Ohio-based Honda plants, East Liberty and Marysville. She had also obtained data from her associates on the plants’ general productivity, quality performance, and environmental...
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... |c) DIS135 HYD |“ |1548$ | | | | |d) PLATINA 100CC |“ |1137$ | | | | |e) XCD 125 CC |“ |1228$ | | | | |f) CT100S |“ |1068$ | | | | | | | | |2) HERO HONDA |32%-35% | |a) HUNK-150 CC |INDIA. |1583$ | | | | |b) CBZ-150 CC |“ |1583$ | | | | |c) PASSION-100 CC |“...
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...Abstract: The case study focuses on the HR problems faced by Honda Motor Cycle & Scooters India (HMSI). The case discusses the various reasons which led to the dispute between the management and employees of HMSI. It elaborates the incidents, which led to the strike at the company that resulted in HMSI workers being severely beaten up by the police. Labour strife and the management's inability to deal with it effectively had resulted in huge losses for the company due to the fall in the production level at the plant. In addition to this, the company also received a lot of negative publicity as newspapers and TV channels gave wide coverage to the violence of the action. The case highlights the growing number of instances of clashes between the employees and the management of companies in India, which is often guided by external parties such as trade unions and political parties. Issues: » Understand the factors that lead to labour unrest at a factory and the impact of such incidents on the employees and the company. » Study HR policies adopted by organizations to prevent labour unrest at the workplace. » Examine top management's role in maintaining a peaceful working environment. » Analyse the role of external parties such as trade unions; political parties etc., in disturbing the working environment in a company Key Words: Labour unrest, Strike, Collective bargaining, Industrial relations, Industrial dispute, labour laws, Japanese management, Go-slow, Lock-out, Labour...
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...Global Two Wheeler Industry Market Global motorcycles, scooters and mopeds market measured in volume terms is undoubtedly going Asia’s way, with a massive chunk of the total market concentrated in the Asia-Pacific region. Developing nations in Asia and Latin America, which perceive two-wheelers as a basic mode of transportation, are expected to remain the most promising markets for scooters, light motorcycles and mopeds. The last two decades have comprehensively transformed the powered two-wheeler industry worldwide. Demand has often outgrown expectations, beating the industry’s calculation, with changing market pattern being the accepted norm. Regional markets play a significant role in market evolution, wherein the wave of consumerism across the globe overhauled the structure of the powered two-wheeler industry worldwide. Motorcycles and scooters emerged favorites with the male customers, while mopeds and small scooters found ready acceptance with the female customers. In developed countries like the US, Canada, Japan, Germany and Italy, motorbikes and scooters are considered a premium purchase to be enjoyed by the wealthy and riding enthusiasts. In contrast, developing markets such as China, India and other South East Asia, view motorcycles, scooters and mopeds as essential modes of transportation. The Motorcycles segment comprises the largest and most popular category, accounting for a major share of the global two-wheelers industry. The global market for motorcycles...
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...Honda Motorcycle and Scooter India Ltd (HMSI) has achieved another milestone in its Indian chapter. The Japanese company has rolled out the 30thlakh unit of its popular 125cc motorcycle- the CB Shine. The landmark vehicle was produced at HMSI’s plant in Tapukara, Rajasthan. HMSI officials with the 30th lakh CB Shine unit CB Shine is the first 125ccc motorcycle in India to achieve this feat. This makes it the largest selling 125cc motorcycle in India and also the largest selling Honda motorcycle in this segment on a global scale. The CB Shine was launched back in April 2006 and reached its first 10 lakh units in 54 months on October 2010, the next 10 lakh figure was achieved in just 25 months with the latest one million units being the fastest taking just 16 months to get there. The CB Shine now sits at a very dominant position in the Indian market and in terms of sales volume leads the nearest competitor by a 61 per cent margin. The company manufactures the motorcycle both at its Narsapura and Tapukara plants. Honda CB Shine Keita Muramatsu, president & CEO, HMSI, on this landmark achievement stated, “We thank our valued customers, business partners and Associates for this remarkable feat. CB Shine is not only No. 1 selling 125cc motorcycle in India but also the world! For the first time ending FY’14, CB Shine has become No. 1 selling motorcycle for Honda Motor Company, Japan worldwide.” Shining all the way Honda’s CB Shine becomes ‘India’s All-time Highest Selling...
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