1.

Economic Environment

Please refer to exercise 1

2. Strategic Planning

Products Offered
i. Luxury and economical automobiles

Target Market
i. The interesting aspect of the automotive industry is that each
model of car has a different target market
1. Honda Accord- Professionals, Middle Class
2. Honda Civic- Young Professionals, College Students
3. Honda Odyssey- Mothers, families
4. Honda Pilot- Mothers, families

Financial Aims
i. Global Market Share= 4.4 Percent
ii. 6.9 percent, which is .2 percent higher than the industry
average

Employee Satisfaction
i. Although it is not mentioned on the corporate report or website,
it is reviewed by outside sources that have the company
reviewed by current and former employees
ii. Glassdoor.com
1. Employees have rated Honda as 3/5 stars based on
salary, benefits, and compensations

Social Contributions
i. Honda has Philanthropic work on 6 of the 7 continents, the only
one not included is Antarctica.
1. Environmental Initiatives
2. Community Initiatives
3. Traffic Safety
4. Educational Initiatives

3.

Entry Modes

Wholly owned subsidiary

i. Honda already markets their cars to Australia; however, Honda

does not have any manufacturing assets in the Australian
market.
ii. The best entry mode will be a wholly owned subsidiary because
we are projecting the opening of a manufacturing plant in order
to take advantage of the growing strength of the Australian
market.
4. Strategic Alliance

A good alliance for Honda to create with the expansions into Australia
would be with local steel producers such as: Arrium, Astra Resources
Plc., Bluescope Lysaght, BlueScope Steel, Orrcon Steel, or Whyalla
Steelworks. Since Honda would be expanding their manufacturing
departments to reduce transportation costs, it would make sense for
them to create alliances with steel producers to supply the metals
necessary for their cars. This would show good faith to Australia aby
boasting their local economy, as well as continually lower the cost of
producing the automobiles, because the decreased shipping cost of the
materials. To really increase the benefit of alliances, Honda should
even consider creating alliances with all components of a car. This kind
of initiative could really show good faith to the Australian Community,
while boasting their local economy.

5.

Financing Sources

Through investors, selling of stock, and issuing bonds, Honda would

fund this global business enterprise

The best way for Honda to finance this expansion would be through
using the money generated through sale of their stock.
i. $31.66 per share