Trần Hương Giang_10160106_GBE_A1.

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 TABLE OF CONTENT

INTRODUCTION ......................................................................................................................................3
MAJOR FINDINGS ...................................................................................................................................4
Task 1: Analyze the key factors which drive globalization and apply in Honda case ...............................................4
1. PESTLE analysis in Honda case ......................................................................................................................4
2. The drivers of globalization in Honda case (automotive industry)...............................................................6
3. SWOT and critical analysis ..........................................................................................................................11
Task 2: Determine the strategic complexities of Honda Vietnam associated with operating in global
environment ...........................................................................................................................................................13
1. International opportunities incentive to use international strategy in the case of Honda moving to
Vietnam ..............................................................................................................................................................13
2. International strategies in the case of Honda Vietnam ..............................................................................13
3. National competitive advantages in Honda case .......................................................................................14
4. International corporate-level strategy in Honda case ................................................................................17
5. Honda’s choice of international entry mode ..............................................................................................18
6. The risks in an international environment in Honda case ..........................................................................19
7. International diversification strategies.......................................................................................................21
CONCLUSIONS .....................................................................................................................................22
REFERENCES .......................................................................................................................................23

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 INTRODUCTION

Globalization has brought significant changes to business in general from all around the world.
According to Lambert and Miller (2011), the changes in global over 20 years, especially technology and
transportation industry has developed a whole new process in producing new kinds of vehicles. In the
case of Honda, globalization has helped them to make a great step in the developing period.

Honda Motor Co., Ltd. (Honda) was established in September 1948, and their main business activities
are production and sales of automobiles, motorcycle and power products. In 1996, they put the first
manufacture of automobiles and motorcycles in Vietnam and until 2018, there are two more corporations
opened in Vietnam to work with producing motorcycle parts as well as increase sales of Honda products.

In this assignment, I would like to analyze the key factors which drive globalization and analyze the
strategic complexities associated with operating in global environment. The case to study is all about
Honda in Japan and Honda in Vietnam, in order to understand deeper the knowledge as well as to
evaluate the good and bad things around the cases.

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 MAJOR FINDINGS

Task 1: Analyze the key factors which drive globalization and apply in Honda case

(Source: http://solution.com.vn/vi/tin-moi-nhat/y-nghia-thiet-ke-logo-cua-honda-t510.html)

1. PESTLE analysis in Honda case

PESTLE Analysis in a common tool when it comes to searching and identifying the external factors
around organizations, industries or countries. The analysis includes Political, Economic, Social/
Sociocultural, Technology, Legal, Ecological/ Environment.

In this Honda case, I would like to apply this tool to see what are the basic things has happened around
the organization.

In Japan and global In Vietnam

Political remains stable
The level of corruption is high in consumer goods
Trade regulations and tariffs related to consumer goods is complicated
Military invasion is a concern Support organization with 100%
Political Government interferes into the manufactures foreign investment capital to
industry established in Vietnam
Tax rates and incentives for manufactures Import tax for cars is no longer
and vehicles industry available
Complex industrial safety regulations for Trading partners are favorable
consumer goods
Number of cars (for example: the UK) is
limited and tax is higher than other countries

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 Exchange rate from VND to USD is
Exchange rate from £ to Yen is not stable
not stable
The global income is rising and consumer
GDP is increasing steadily over the 5
purchasing power is increasing
years
The global cost of petrol and oil have a
Technology and manufacturing
tendency to raise gradually
education is paid attention
Economic Technology and manufacturing education is
Unemployment rate is lowering while
paid attention
population still increases
Unemployment rate is increasing due to
Economic growth rate and inflation
overpopulation
rate is increasing
General economic growth rate and inflation
(Source: https://www.focus-
rate is increasing
economics.com/countries/vietnam )
Migration is a trend when foreigners
Different languages in countries
move to Vietnam in high number
High belief in local brands than others
Favor in foreign brands than local one
Different cultures according to countries and
The demand of using motorcycle
Social/ areas
remains stable
Sociocultural The demand of using cars in increasing,
Support the appearance of foreign
especially in Europe
organizations and investment
High awareness in health and environmental
Interest in foreigner brands and
protection
promotion
Technology has not been developed
GPS (Global Positioning System) has
fast
become an useful and close device for the
Technological education is paid
consumers
attention by government and
Environmentally friendly cars is preferred
Technology organizations
compare to others
Manufactures focus on using
Japan is leading the technology innovation
technology to improve work
among global (Eamonn, 2015)
environment for employees
Taxi industry is dominated in many countries

Every countries follow Common Law

Employment and consumer protection law Law of employment and consumer
Legal Data saving and copyright protection law protection is not close and clear
Discrimination law for genders, ages, Data and copyright protection law is not
cultures and racial strong enough
Climate change and global warming has been a concern
Ecological/
Fuel is limited, for instance, gas and oil
Environment
Different kinds of climate in different countries and areas

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 2. The drivers of globalization in Honda case (automotive industry)

2.1. Cost Drivers

Continuing push for economies of scale

Kosha (1972) pointed out that economies of scale are the term which mass production is used to reduce
the cost and increase the number and quality of outputs. The large domestic markets are reported to be
more successful when it comes to the use of this term rather than small markets (Schwalbach, 1988).

Honda stays in automotive industry, which is a large market, and the term economies of scale is also
used in the manufactures. According to the Human Resource Manager of Honda Vietnam, for each
product, they use different lines to differentiate and control their product. In the future, they will keep
developing the line so they can be faster and more efficiency.

Accelerating technological innovation

In recent years, industry 4.0 has been a popular term, which has rapidly created changes in the business
models. It is clear that many workplaces might be disappeared due to their out-dated technologies
compare to new kind of digitalization and democratization.

(Source: http://www.mljournal-digital.com/meleadershipjournal/201502?folio=36&pg=38#pg38)

According to Kagermann et al. (2013), the improvement of technology is impacted by the society and the
studies from different countries. By this, organizations must learn and adapt the situation of technological
changes if they do not want to be disappeared in their markets. However, the cost to learn technology
and apply it in the manufactures is very high and due to this, the cost for products gets higher.

(Source: https://www.researchgate.net/figure/Four-industrial-revolutions-including-the-German-Industry-
40_fig1_272613645)
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Advances in transportation
Travelling has become a trend over the world and Johansson and Schipper (1997) have claimed that the
number of cars usage increased was the result of high demands for travelling, especially family
travelling.

In a website called Statista, where they figured the number of cars used from 2006 to 2015, they have
seen a result of a high number.

(Source: https://www.statista.com/statistics/281134/number-of-vehicles-in-use-worldwide/)

The chart has shown a rise in the number of car usage over a period of 9 years and its trend is to
increase in the next years. Due to this demand, automotive industry has developed and on their way to
serve the consumers’ high demand. The number of brands and different kinds of products raise rapidly in
these years and Honda must learn the market as well as their competitors to make the most reasonable
for their product.

Low labor costs

Compare with other countries, Japan has a rising trend in the labor cost from 1955 to 2010, and in the
end of period, the line is still rising. This is the reason why Japanese organizations have decided to
come to other countries and invest where has low labor cost.

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 Figure. Unit Labor Costs in Manufacturing, U.S. Dollar Basis, in Japan (1955 – 2010)
(Source: https://fred.stlouisfed.org/series/JPNULCM)

In fact, other countries such as China, Vietnam and Mexico have low labor cost, although the employees
are well trained, and even they have a rising trend, the forecast in 2020 is still lower than Japan. When
Japan moved to other countries, one thing they have reached is that lower the cost in labor so they can
focus on other cost.

Figure. Manufacturing labor costs per hour for China, Vietnam, Mexico in U.S. dollars (2016 – 2020)
(Source: https://www.statista.com/statistics/744071/manufacturing-labor-costs-per-hour-china-vietnam-
mexico/)

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 2.2. Market Drivers

Per capita income converging among industrialized nations

GDP per capita is the Gross Domestic Product of one country divided by the total population who live
and work in that country at the same amount of time.

(Source: https://tradingeconomics.com/japan/gdp-per-capita)

(Source: https://tradingeconomics.com/japan/gdp-per-capita)

During 1990 and 1996, when Honda Japan made their plan to invest in Vietnam, this is the time Vietnam
is on their way to develop and the economic situation is quite stable, which is different to developed
countries such as the U.S at that time. Honda Japan saw Vietnam as a potential country to focus on the
consumers and the market here and they had made a successfully decision. However, this does not
mean that they had not invested in other countries. Although Japan at that time was potential, their GDP
per capita were not high and neither was the total GDP. They need to focus on foreigners to create more
valuable and potential customers.

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Convergence of lifestyles and cultures
For Bhagwati (2004), economic globalization is the contribution of culture enrichment in various
countries. The lifestyles and cultures in each country can create large impact on the international scene,
and if any of the foreigners have a plan to invest in one country, they need to study and understand to
adapt a new situation. An organization cannot use the same idea of package, design or even promotion
for a product in their country with others. They need to analyze and re-define the whole situation again.

For instance, in the case of Honda, when they move from Japan to Vietnam and to the U.K, the
production design for each country is very different. The cars produced for the U.K consumers are
equipped with fog lights due the nature weather, while those for the Vietnamese do not have.

2.3. Environment Drivers

Climate change happens faster and faster and natural resource scarcity
Miller and Edwards (2001) have argued that the climate change cannot be viewed as a simple issues, it
is now a key site in the global transformation of the world. Due to climate change, customers’ attention
also tends to focus more on green and energy-saving products. Vehicles with gas and oil might no
longer be available in the next decades since many brands are now experimenting on green energy to
use with transportation.

Honda is also one of the examples since they spread the smart and clean lines in every manufactures
for employees, which help them to avoid illness from emissions.

Also, environmental stress can push localization and non-consumptive development.

2.4. Competition Drivers

Continuing increases in the level of world trade

According to WTO (2018), it is believed that the statistic for world trade is very positive and it can still
improve in the next year. Trade plays a vital part in supporting global economic recovery.

Below is an example of world trade for import and export in 2017, with a positive in the end of 2018 from
all over the world.

(Source: http://www.mylotrade.com/world-trade-growth-is-expected-to-remain-strong.html)

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Increased ownership of corporations by foreign acquirers
Foreign Direct Investment has been a trend these years and developing countries usually become
choices for other countries to invest in.

For example, in the first half of 2018, many countries have invested into Vietnam with large amount of
money. In the chart, it is clearly shown that Japan takes accounted for the highest investment with nearly
5900 million USD. Honda is one of the organization in Japan which invested in Vietnam from the early
stage. Other countries, although they did not invest as much as Japan, still take account for large
amount of money.

(Source: http://ndh.vn/kinh-te-viet-nam-8-thang-qua-cac-chi-so-20180829113043860p145c152.news)

3. SWOT and critical analysis

SWOT analysis
Following the globalization and the drivers of globalization, when Honda Japan makes their decision to
move to other countries, they need to find out their strength and weakness, and what important is their
benefits and challenges.

Those conditions would be mention through SWOT analysis.

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 STRENGTH
- Remain one of the world’s top motorcycle and car
WEAKNESS
brands and manufactures
- Recall of products due to the details mistakes
- High attention in Research & Development to
- North American sales have become an over
innovate products and adapt globalization
reliance for Honda Japan
- Diversification of products and prices as well as
classification of products in many categories
- High qualified staffs and employees with detailed
and yearly training

THREATS
OPPORTUNITIES
- Many strong competitors can negatively impact
- New segment in green – energy cars is suitable
on prices, sales and profits
with customers’ taste
- Public transportation has been popular among
- Potential in both developed and developing
global
countries
- Difficulties in adapt globalization with green
- Remain growing stable in the global automotive
energy products and face the environment
industry
changes with limited fuel

Critical analysis
As can be seen, there has connection between PESTLE and drivers of globalization since these drivers
are what happens as external factor around the industry environment. For example, climate change is
one of the factors that drive globalization, but it is also a part of the PESTLE.

Following what have mentioned above, I would choose market drivers as the most important driver that
create both benefits and challenges for Honda Global, and in details, the convergence of lifestyles
and cultures is the most important one. The lifestyles and cultures are somewhat make differences in
the design, package, way of promotion and employees’ training. If Honda Global wants to be
successfully moved to other countries besides their home, they need to make their products be suitable
with different areas and categories. However, lifestyles have always changed and consumers change
their demands according to this. Honda Global needs to do the research and develop their ideas all the
time, and it seems that they are doing well at their job at the presence.

In my opinion, the least important factor to drive globalization would be low labor cost. This is a
category that organization can slowly change and even more, this factor can also easily be changed by
others.

Following SWOT analysis, I would like to place Honda in the middle of Strengths and Opportunities,
which means they have many chances to develop and expand their market in the future.

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Task 2: Determine the strategic complexities of Honda Vietnam associated with operating in
global environment

1. International opportunities incentive to use international strategy in the case of Honda

moving to Vietnam
The reason for an organization to expand their work is all about profit. If they need to reach the highest
profit, it is clear that they need to serve the customers which help them to bring back as much revenue
as possible. In the case of Honda Global, they have seen Vietnam as a potential destination to use
international strategies.

There are 3 basic main benefits when using international strategies, which are Market size, Economies
of scale and Local advantages. In the case of Honda, they successfully hold the benefits when they
apply the international strategies, especially in this case, is Honda in Vietnam.

Market size
According to the Human Resource Manager of Honda Vietnam, she claimed that the manufactures
Honda put in Vietnam can be considered as the most efficiency one in South East Asia. Although the
facilities need to deliver from Japan and other countries to prepare for producing line in Vietnamese
manufacturing, the support by the staffs in Honda and the qualified employees are the main reasons that
lead to good and qualified manufactures.

Economies of scale
It is difficult for Honda to expand their size of scope if they only stay in Japan. When they move to
Vietnam and other countries, the number of manufactures is rising and the time-consuming is reduced
effectively. In a large number of products are made, the profit per unit will be increased easily and the
cost for distribution will be lower. Following the HR manager in Honda Vietnam, employees and
managers always share the knowledge in the same scale and link it with what they learnt from Japanese
team so the products can get higher in the quality and lower in the total cost.

Local advantages
When Honda made a move to Vietnam, they have had their chances to access many Vietnamese
resources such as raw materials, low labor cost and customers. Many small details are picked in
Vietnam and exploited in many levels. The labor cost is low compare to other countries, though their
skills and knowledge are still well trained and they can adapt the pressure. Since Honda has become a
global brand, many Vietnamese have taken care about their products and become permanent customers
in the next few years.

2. International strategies in the case of Honda Vietnam

Following Michael Porter (1998), he has identified international business-level strategies as cost
leadership, differentiation and focus to achieve competitive advantage. While the cost leadership
strategies focus on reducing the cost in every scale, differentiation strategies focus on creating and
developing unique products and services.

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 (Source: http://www.quickmba.com/strategy/generic.shtml)

In the case of Honda from all over the world, here are some of their strengths in characteristic I have
collected through the HR managers in Honda Vietnam as well as Honda Global situation.

- Highly skilled and creative Research and Development team

- Corporate reputation for innovation and qualities
- Strong Sales and Promotion team to spread the brand’s name as well as their products to different
cultures in the global
- Success in scientific research on customers’ demand and analysis the external environment

According to Michael Porter (1998), this is the characteristic of DIFFERENTIATION STRATEGIES,

which means Honda focus more on the products/ services as well as the customers’ demand to spread
their brand’s picture to all over the world.

Their strategies will be analyzed in details below.

3. National competitive advantages in Honda case

3.1. Porter’s Diamond Model in the case of Honda Japan

Porter (1998) has made a diamond model to answer the question “What makes a nation become the
home base for its successful international competitors?” The diamond, according to Porter, is the
determinants of national competitive advantages.

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In the case of Honda, every condition in the diamond model takes part in the successful of their
organization.

(Source:
http://kfknowledgebank.kaplan.co.uk/KFKB/Wiki%20Pages/Porter%27s%20diamond%20model.aspx)

Factor Conditions
- Natural resources: In the Sustainability Report (Honda, 2018), they have pointed out that there are 10
factories in Japan and those are spread in different districts, provinces and countries. This creates
more opportunities for Honda in exploiting and managing resources, especially for gas and oil. Their
factories made many values in not only managing nature resources but also in delivering them to
others.
- Human resource: Honda pushes ahead with the Global HRM Approaches, which means the operations
are managed by Japanese, who is local associates and understand the region. This helps Honda to try
diversify and localize their work force with multinational employees, which is different from Japanese
family traditional culture. Honda has pushed their strengths by coordinating their operations globally.

Demand Conditions
In the Sustainability Report (Honda, 2018), they claimed that the demand for motorbike among Japanese
remains stable in these years and they always have high need of using motorcycles, although Honda
might not be the power products all the time.

Firm Strategy, Structure and Rivalry

In every Sustainability Report, Honda makes a Roadmap for Sustainable Growth and it helps them to
prepare a plan for the innovation and adapt changes as soon as possible.

In the Report in 2018, Honda has made a vision until 2030 with not only continuing growth as a company
but also creating new value transformation with green energy and high technology to serve the
consumers in the best ways.

About the competitors, Honda has strong rivalries on their domestic market, such as Toyota, Hyundai
and Nisshan, which directly compete with Honda in the same scales. However, Honda is a brand that

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can be suitable with any lifestyles, tastes and income of the Japanese. Their eco-friendly and safety
products as well as fast and friendly services help them to stay in a high place in their domestic.

Related and Supporting Industries

Eshuhai is one of the most outstanding organizations that corporate with Honda and help them to find
potential employees as well as invest in Vietnam. Thanks to Eshuhai, Honda has trained best employees
from both Japanese and Vietnamese.

Honda Japan has many competitive advantages in the domestic market and they use these
opportunities to become one of the most innovative companies in their country. They create unique and
innovative products and services for customers and adapt mostly every customer’s demand.

3.2. Five Forces Analysis in the case of Honda Vietnam

Porter’s Five Force (1979) can be said as a framework for analyzing the competitive situation in an
industry. In this case, I would like to use the model to analyze the situation around Honda Vietnam.

(Source: https://blog.v-comply.com/porters-five-forces-market-attractiveness/)

Threat of new entrants: Low

Following the HR manager in Honda Vietnam, there was little threat of new entry for Honda when they
decided to move to Vietnam. In 1996, Vietnamese government has supported international economics
integration. The market was opened for foreign organization such as Honda to invest in Vietnamese
market.

Bargaining power of buyers: Low

As mentioning in the PESTEL analysis, Vietnamese customers prefer international brands and they are
attracted with products like Honda: affordable price, high qualities, nice design and suitable with the
Vietnamese consumers.

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Bargaining power of suppliers: Low
Following the HR manager in Honda Vietnam, among 140 suppliers, there are 4 main one for them,
which are Showa Auto Facts Vietnam corporation, Goshi Thang Long Auto parts corporation, Nissin
Brake Vietnam and Vietnam Auto part Co. Ltd.

Besides those suppliers, Honda Global and Honda Vietnam still produce their nature materials in the
manufactures or deliver them from one facility to others. While all the suppliers need to reach the
standard that Honda has given, they also created good relationship with them to manage and control the
power of suppliers.

Threat of substitutes: High

According to Honda Vietnam’s staffs, when Honda made their first step in Vietnam, the most outstanding
competitors were motorbikes from China. In 1996, the demand for motorcycle was not really high and
also, they do not need high quality products that they cannot afford. At that time, they preferred products
from China rather than Honda, a brand with high quality and medium prices.

In 21st century, the demand of consumers is raising and they would choose vehicles with high qualities
and affordable price, which is suitable with the image of Honda. However, the appearance of many other
brands in Vietnam such as Toyota, Suzuki and so on has created a strong impact on the revenue and
profit for Honda Vietnam in motorbike scale.

Degree of rivalry: Medium

As mentioned, the appearances of many cars and motorbikes brand in Vietnam have created an impact
on Honda Vietnam. However, this situation helps Honda to learn more from other’s products and
services. Besides, their unique in low price with high qualities in products still keep their brand famous.

Following the analysis, it can be seen that Honda Vietnam has more chances than threats to improve
their brand in Vietnamese market. Though they have difficulties when facing substitutes and rivalries,
they still have benefits in other factors.

4. International corporate-level strategy in Honda case

Porter (1986) pointed out that there are 3 level of international corporate, which are Multidomestic
approaches, Globalization approaches and Transactional approaches.

Among 3 levels, Transactional approaches are the strategies with high key assumption and local
responsiveness as well as global efficiencies.

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 (Source: https://slideplayer.com/slide/5130690/)

Honda has work really well in the R&D activities in Vietnamese market. Honda Vietnam tries to keep
their core value from the Global statement as well as changing the key factors that leads to the
differences in cultures and lifestyles in Vietnam. In the end of the process, Honda Vietnam has gained
high trust among consumers in long term orientation with not only affordable price but also the unique
and innovative products.

After all, Honda Vietnam has shown that they are totally on the trends of Transactional strategies.

5. Honda’s choice of international entry mode

In 1996, Honda Motor Japan entered the Vietnamese market with the protection of State to Dynamic
Machine Corporation and Farm Machinery in Vietnam. During that time, Japanese corporations were
highly encouraged because they brought not only benefits but also remove the tariff barriers of the State.

They have followed the entry of Strategic Alliances as a joint venture with 42% owns stake. Following
Foley (1999), he has pointed out that organizations joined joint venture have goals towards the alliance
such as entry to a specific market (in this case: automotive industry), to learn and share the knowledge
of technology and to conform government regulations.

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In 2002, McDonald, Burton and Dowling claimed that international entry modes are Exporting, Licensing,
Strategic Alliances, Acquisitions and New Wholly Owned Subsidiary. In Honda case when entering
Vietnamese market, it is clear that they have followed Strategic Alliances international entry
mode, which helps them to create advantages:

- Provide capital for domestic company

- Release the limit when doing business as a foreign company
- Time saving and cost saving from search information about the market

6. The risks in an international environment in Honda case

As I have mentioned through every model applied above, there are some risks for Honda to face.

6.1. Internal Risks and Value Chain

- Social – cultural conflicts in working behavior among different employees from different countries
- Time consuming for training monthly and yearly for each hierarchies and for different categories in
staffs and labors

Here, I would like to apply Porter’s Value Chain to see how Honda Vietnam have faced and solved their
internal risks. All the information I include is from the field trip to Honda Manufacturers in Vinh Phuc, Ha
Noi in Vietnam.

(Source: https://www.mindtools.com/pages/article/newSTR_66.htm)

Support Activities
- Firm Infrastructure: Honda 7S Approach and General Administration is to search for information that
support the decision making
- HR Management: Programs for training and coaching, NHC (New Honda Cycle) activities, Kaizen
culture, Honda 7S Approach

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- Technology Development: Research on New technology and high technology implement, Studies with
suppliers, Replace and Recall Old Technology products
- Procurement: R&D improvement and research on potential suppliers as well as consumers’ behaviors

Primary Activities
- Inbound Logistic: Invest in Vietnamese motorcycle auto part manufactures and factories, keep
corporate with Honda Thailand
- Operations: Automation devices and robots in line productions delivered from Japan, human resources
from Vietnam, Japan and Thailand
- Outbound Logistic: Total Quality Management and high attention on testing products in the final line
- Marketing & Sales: CSR activities, traditional programs, events, feedbacks online and offline
- Service: High customer’s relation activities on after sales, support insurance

6.2. External Risks and Supply Chain

Supply chain Management is to manage people, process in both internal and external activities.
However, since I have mentioned some key points above, I would like to only add more information and
no repeat any further information.

(Source: http://www.ironsystems.com/services/supply-chain-management)

While the procurement & integration and warehouse & fulfillment are the steps that happened within
Honda Vietnam only, the other 3 steps rely on external factors.

However, as mentioned above, raw materials is from suppliers from both outside and inside the
organizations and they are managed well by the HRM Department to control and avoid conflicts or
supplier high power so there hardly any risks there.

It is clear that the HRM and R&D Department has work tightly on the corporates in both input and output
process of the Supply chain so they only need to focus more on the producing line. During the producing
line, they have been prepared new technology and emissions protection as well as training monthly and
yearly for employees, so the process happens quite well.

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 7. International diversification strategies
To overcome the risks and push the opportunities, Honda Vietnam has done many activities.

Invest in motorcycle manufacturing

In 2003, Honda took part in building Vietnam Autoparts Co., Ltd to manufacturing motorcycle parts and
Honda stays as one of the suppliers since then. (Honda, n.d).

Kaizen approach and NHC approach in R&D

According to the HR manager in Honda Vietnam, Kaizen and NHC are the activities that happen monthly
in the organization. These approaches are all about every one taking part in giving ideas and ways to
improve the performances of the organization. While Kaizen is for individuals, NHC is for teams divided
in Department. These 2 approaches work together in Honda Vietnam recent years and it shows a
positive result among their organization.

Cost down activities in Operations

Cost down activities, somehow has the same ideas as cost leadership strategies, which means they
reduce every cost before and during the producing process to minimum to maximize the profit. However,
these activities is not remained as the most important activities in Honda Vietnam because they still try to
focus more on the quality of the products, rather than the cost.

The strategic joint revenue

The strategic joint revenue between Honda Vietnam and Thailand is a way for both countries to get the
suppliers in raw materials as well as human resources. This strategy helps the countries to guarantee
that the input for materials and design is prepared carefully so they can both reduce the cost at the
maximum level.

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 CONCLUSIONS

The assignment was to help me understand more about globalization and what happens in the business
environment during that time. In this assignment, I have a chance to see it clearly through the case of
Honda Global and Honda Vietnam.

In the first task, I have use PESTEL and SWOT as the main model with analyzing the drivers of
globalization that lead to changes in business environment in the case of Honda. Following what have
found, it can be seen that since Honda found their ways to entered more foreign markets, they become
more and more successfully though there are still some challenges besides the opportunities. However,
in general, globalization has helped Honda much more than giving challenges.

In the second task, I see in details the information about why and how Honda entered Vietnamese
market and become one of the most famous brands in cars and motorcycles in Vietnam. Though they
have some difficulties, Honda has used the challenges as a lever for them to develop even better.

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