Individual Learning Project
In an earlier research into Honda there was an evaluation on how the company is viewed by their employees. The information taken from that research showed that Honda is slowly moving into the right direction of accepting change, while continuing to be one of the most successful companies in the automotive industry. The evaluation showed how Honda’s top priority in the operation of their business is customer satisfaction. Honda was more concerned with providing reliable, affordable, quality vehicles to their customers, which are all important qualities in any purchase. The research showed that the company has a high brand loyalty rate from current and former Honda purchasers. The biggest issue that the company has to face in today’s society is their styling concepts, as well as the massive usage of technology in their competitor’s products.
To help Honda continue to grow and continually increase their brand loyalty they should look to implement the management technique of benchmarking. Xerox Corporation was the first company to introduce benchmarking back in the mid 1990s (Nayab, 2010). This technique would help put the company back on track with where they should be to continue to compete with the competition. Honda has been one of the biggest companies to rely on brand loyalty, but with the change in society this is no longer a safe way of producing products.
Although the company has had much success over the years, they still have a lot more that the company can achieve. The current type of contemporary management technique implemented by Honda is Total Quality Management (TQM). TQM is defined as a technique by which management develops policies and practices to ensure that the firm’s products and services exceed customers’ expectations (Blocher, Stout, & Cokins, 2010). This technique is currently implemented because the customer is the company’s top priority. Although with this management technique the company has been successful and continue to increase their customer loyalty, they could not hurt the company in changing this technique or using another technique at the same time. This technique allowed for the customer to know that the products they develop always keep the customer in mind versus how much profit they would stand to gain from sales.
TQM is a good technique to implement, but a better technique that the company should implement is benchmarking. Benchmarking is defined as a process by which a firm identifies its critical success factors, studies the best practices of other firms for achieving these critical success factors, and then implements improvements in the firm’s process to match or beat the performance of those competitors (Blocher, Stout, & Cokins, 2010). In simpler terms, benchmarking allows for a company to evaluate what helps the competitors to be successful and what products sell the must. By the company seeing these results the can see how the market is changing and what consumers are looking for in their new purchases. Benchmarking is also used to help with identifying both the strengths and weaknesses of a company in what they have to offer the customer.
Benchmarking should be used in combination with another contemporary management technique to fully achieve the plan of success. With the benchmarking technique it can help the business with opening their minds to new ideas that may be able to help them reach their goals set for the company. In order for Honda to continue on the successful path they have been on over the years they must keep a fresh frame of thinking and allow for these new ideas to evolve into something that could put the company back on top.
In researching this industry it is apparent that technology has proven to be one of the most challenging measures in this industry. Not all of the companies in this industry are considered leaders in this part of the production of products. Honda being one of the late bloomers...
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