Business Environment & Strategic Management Essay

Business Environment & Strategic Management - Essay Example This part of the essay will analyze several value added activities of Honda motors in the Chinese market place in recent years. China is one of the rapid growing economies in the world. Sustainable economic development, political stability of the country and huge social acceptance motivated Honda motors to enter in the emerging Chinese automobile market. People of China accused that the automobile maker may not be able to meet the satisfaction of them. However, looking into these intense market demand and favourable scenarios, the organization decided to enter in this emerging global market place. Guangzhou Honda Automobile Co. Ltd. is one of the leading automobile producers and distributors in the Chinese market (Fukushi, Sumi and Honda, 2010, p.9). It is a joint venture between Guangzhou Automobile Group and Honda Motor Co. Ltd. the success of this organization has been drawing the attention of several customers, researchers and journalists. Effective resource based value addition strategies and activities helped the organization to achieve potential competitive advantages in the Chinese automobile industry. ... Recently, China is achieving significant economic growth. Therefore high disposable income and improved purchasing power are motivating the Chinese people to shift towards the luxury car segment. This intense market demand is helping the organization to push its highly valued luxurious vehicles in Chinese market. According to the resource based view, it can be stated that brand reputation, customer engagement and innovation are considered as the unique resources. R&D of Honda Motors in China tries to maintain effective quality of the vehicles. It is a part of unique resource as the expertise and effective quality control process helps the organization to meet market demand in Chinese market (Chen and Shi, 2005, 124). The leading global organizations are trying to enhance their organizational culture. Effective organizational culture of Honda is considered as intangible resource. The organization follows bottom-up organizational culture. Employee-engagement in decision making process helps the organization to retain its effective and skilled employees (Dunne, 2011, p.151). It increases the confidence level of the employees. Moreover, it reduces the possibility of several workplace conflicts. Effective technician support and financial resources are considered as the threshold resources. Following VRIN analysis framework will help to evaluate the value added activities and resource based view of Honda in Chinese market. Valuable Accord, Fit Saloon and Odyssey are popular and well accepted product expansion of Guangzhou Honda Automobile Co. Ltd. in Chinese Market. Moreover, the organization is trying to introduce new innovative vehicles in Chinese market