Honda's organizational competencies

1. CMAP – HONDA
GROUP 2
VAIBHAV AGNIHOTRI 221159
DRASHTI DESAI 221044
PRIYA AGARWAL 221098
NANDHAGOPAL MURALITHAR 07335

2. HONDA RETURNS TO ITS HERITAGE
• Honda Accord, was best-selling car in America in 1989-
91
• Toyota, Nissan, Ford, Chrysler made strong entries in
Accord Market. Honda lost its market share.
• Honda has risen from to automaking process from its
core motorcycle product lines.
• Honda had an effective design capability for small
engines.
• Honda had two overriding process capabilities that
provided strong competitive advantage
– Dealer Management
– Product Realization: All phases of the development of a
product, including idea, design, prototype, and production

3. ROOTS OF COMPETENCY
Light-weight, High-revving, Reliable Engines
Manufacturing
Capabilities
Culture of
Innovation
Financial
Resources
Cars, Bikes, Trucks
and Off-Roaders
Generators
Marine and Yard-care
products
End Products
Core Product
Core Competence

4. 7’S FRAMEWORK – META COMPETENCIES
Product Realization, R&D, Financial Resources, Engine Manufacturing (MFG), Innovation, Dealer Management, Training,
COST EFFICIENCY
COMPETENCIES:
Service Standards
RELIABLE
SYSTEM
INNOVATION
CLOSE EXTERNAL
RELATIONSHIP
AGILITY
Competency R Competency R Competency R Competency R Competency R
STRATEGY
Financial
Resources
8
Financial
Resources
5
Product
Realisation
8
STRUCTURE
Dealer
Management
7
Dealer
Management
5
Dealer
Management
10
SYSTEMS MFG 7 MFG 9 R & D 10
STYLE
Product
Realisation
10
Product
Realisation
5
STAFF Training 9 Training 7
SHARED
Innovation 10
VALUES
SKILLS
Service
Standards
6
Service
Standards
10
Threshold value = 4
Strong impact: 9-10; Moderate impact: 6-8; Low impact: 5

5. 7’S FRAMEWORK – META COMPETENCIES
Product Realization, R&D, Financial Resources, Engine Manufacturing (MFG), Innovation, Dealer Management, Training,
COST EFFICIENCY
COMPETENCIES:
Service Standards
RELIABLE
SYSTEM
INNOVATION
CLOSE EXTERNAL
RELATIONSHIP
AGILITY
Competency R Competency R Competency R Competency R Competency R
STRATEGY
Financial
Resources
8
Financial
Resources
5
Product
Realisation
8
STRUCTURE
Dealer
Management
7
Dealer
Management
5
Dealer
Management
10
SYSTEMS MFG 7 MFG 9 R & D 10
STYLE
Product
Realisation
10
Product
Realisation
5
STAFF Training 9 Training 7
SHARED
Innovation 10
VALUES
SKILLS
Service
Standards
6
Service
Standards
10
Threshold value = 4
Strong impact: 9-10; Moderate impact: 6-8; Low impact: 5
Cost Efficiency , Reliable System, & Close External Relationship are Meta Competencies

6. References
• http://jmbruton.com/images/Stalk_Competin
g_on_Capabilities.pdf