SUMMER TRAINING REPORT

A Brief Study on the Manufacturing Dept.

Undertaken at Honda Siel Cars India Ltd.

Submitted in partial fulfillment of the requirements

for the award of the degree of

BACHELOR OF BUSINESS
ADMINISTRATION
to

Guru Gobind Singh Indraprastha University,

Delhi
Under the Guidance of: Submitted by:
Prof. Rajesh Bajaj Pranoy Bhattacharya
BBA – V Sem. (E)
Enrollment No. 0282131708

Session 2008 - 11
TECNIA INSTITUTE OF ADVANCED
STUDIES
Approved by AICTE, Ministry of HRD, Govt. of India Affiliated To Guru Gobind Singh
Indraprastha University, Delhi
INSTITUTIONAL AREA, MADHUBAN CHOWK, ROHINI, DELHI- 110085
E-Mail: director.tecniaindia@ gmail.com, Website: www.tecnia.in
Fax No: 27555120, Tel: 27555121-24
Institute is rated as “A” Category Best Business School by latest AIMA - Business Standard & Business India
Publications Surveys & included in Top 100 B – Schools & IT -Schools by Dalal Street Investment Journal
Contents

S No Topic Page No
1 Certificate (s) 1-2
2 Acknowledgements 3
3 List of Symbols 4
4 List of Abbreviations 5
5 Chapter-1: Profile of the Firm/Company 6-29
General Information
Nature of the organization
Vision and Mission
Services provided
Size in terms of manpower and turnover
Organization Structure
Market Share and Position
Present Leadership
Sources of Data Collection
6 Chapter-2: SWOT Analysis of the Company 30-33
Strengths and Weaknesses
Opportunities and Threats
Practices in Different Departments
Variation/Deviation in Practices vis-à-vis concept
taught in classroom
Employee Welfare
7 Chapter-3: Analysis of Financial Reports of the 34-37
Company
Analysis of Balance Sheet
Analysis of Profit and Loss Account
Analysis of Cash Flow Statement
8 Chapter-4: Lessons Learnt 38-42
Working Environment
Practical Knowledge gained
Recommendations/Suggestions to other students for
Training
9 References/Bibliography 43
 Tecnia Institute of Advanced Studies
New Delhi – 110085
Batch (2008-2011)

Certificate

I, Mr. Pranoy Bhattacharya, Roll No. 0282131708 certify that the Summer Training
Report (Paper Code BBA 311) entitled “Brief study on manufacturing department” is
done by me and it is an authentic work carried out by me at Honda Siel Cars India
Limited. The matter embodied in this has not been submitted earlier for the award of
any degree or diploma to the best of my knowledge and belief.

Signature of the Student

Date:

Certified that the Summer Training Report (Paper Code BBA 311) entitled “Study on
the Manufacturing department” done by Mr.Pranoy Bhattacharya, Roll No
0282131708 is completed under my guidance.

Signature of the Guide

Date:
Name of the Guide:
Designation:

Countersigned
Director
 ACKNOWLEDGEMT

I would like to take this opportunity to thank all those people, without whose
cooperation and support, this study would not have been possible. First and
foremost, I would like to express my gratitude to Prof. Rajesh Bajaj, Tecnia
Institute of Advanced Studies for his guidance, encouragement and patience.

I am also thankful to Mr. Prabhakar Maheshwari (Dealer Quality Head,

HSCI) for giving me the opportunity to work with the organization. My
heartfelt thanks to Mr. Saadi (HR) HR Department HSCI who guided me
throughout my training in the organization, and helping me in various steps.

I thank the management, officers and staff of HSCI for their cooperation,
and valuable time. Special thanks to my co-employees for their help and
support and providing valuable inputs and perspectives.

I would like to thank my family and friends for their support,

encouragement, cooperation and suggestions have helped me in successful
completion of this project.

Pranoy Bhattacharya
 LIST OF SYMBOLS

S.No. Symbol Nomenclature & Meaning

1 - Hyphen
2 , Comma
3 ; Semi-Colon
4 : Colon
5 % Percentage
6 . Full-Stop
7 $ Dollar
8 * Asterisk
9 # Number Sign
10 / Solidus
11 @ Commercial at/At the Rate
12 ( Left Parenthesis
13 ) Right Parenthesis
14 { Left Curly Brackets
15 } Right Curly Brackelts
16 ‘ Apostrophe
17 _ Low line/Underscore
 LIST OF ABBREVIATIONS

S No Abbreviated Name Full Name

1 HSCI Honda Siel Cars India Limited
2 LTD Limited
4 KM Kilo Meters
5 Rs. Rupees
6 GOI Government of India
7 GNCTD Government of National Capital Territory of Delhi
8 PSU Public Sector Unit
9 O and M Operation and Maintenance
10 US United States
11 UD Urban Development
12 Tpt Third party transfer
13 PPP Purchasing Power Parity
14 Elect. Electrical
15 HR Human Resource
16 S and T Signal and Telecommunication
17 CPM Chief Project Manager
18 GM General Manager
19 CE Chief Engineer
20 CEE Chief Electrical Engineer
21 CSTE Chief Signal and Telecom Engineer
22 Asst. Assistant
23 HOD Head Of the Department
24 AGM Additional General Manager
25 JGM Junior General Manager
26 DGM Deputy General Manager
27 UK United Kingdom
28 ED Executive Director
29 F Finance
30 O Operation
31 R and T Recruitment and Training
32 CDA Dearness Allowance
33 IDA Dearness Allowance
34 SGA Senior General Manager
35 MD Managing Director
36 GP Gross Pay
37 Secy. Secretary
38 Addl. Additional
Chapter-1: Profile of the Firm/Company

1.1 Company Profile

1.1.1 Honda Motor Company, Ltd.

(a) Honda Technology Research Institute Company, Limited is a Japanese multinational

corporation primarily known as a manufacturer of automobiles and motorcycles.
Honda is the world's largest manufacturer of motorcycles as well as the world's largest
manufacturer of internal combustion engines measured by volume, producing more than
14 million internal combustion engines each year.Honda surpassed Nissan in 2001 to
become the second-largest Japanese automobile manufacturer. As of August 2008, Honda
surpassed Chrysler as the fourth largest automobile manufacturer in the United States.
Honda is the sixth largest automobile manufacturer in the world.
(b) Honda was the first Japanese automobile manufacturer to release a dedicated luxury
brand, Acura in 1986. Aside from their core automobile and motorcycle businesses,
Honda also manufactures garden equipment, marine engines, personal watercraft and
power generators, amongst others. Since 1986, Honda has been involved with artificial
intelligence/robotics research and released their ASIMO robot in 2000. They have also
ventured into aerospace with the establishment of GE Honda Aero Engines in 2004 and
the Honda HA-420 HondaJet, scheduled to be released in 2011. Honda spends about 5%
of its revenues into R&D(Research and Development).

1.1.2Corporate Profile
(a) Honda Motor Co., Ltd. operates under the basic principles of "Respect for the
Individual" and "The Three Joys" — commonly expressed as The Joy of Buying, The Joy
of Selling and The Joy of Creating. "Respect for the Individual" reflects our desire to
respect the unique character and ability of each individual person, trusting each other as
equal partners in order to do our best in every situation. Based on this, "The Three Joys"
expresses our belief and desire that each person working in, or coming into contact with
our company, directly or through or products, should share a sense of joy through that
experience.
(b) In line with these basic principles, since its establishment in 1948, Honda has
remained on the leading edge by creating new value and providing products of the
highest quality at a reasonable price, for
worldwide customer satisfaction. In addition, the Company has conducted its activities
with a commitment to protecting the environment and enhancing safety in a mobile
society.
(c) The Company has grown to become the world's largest motorcycle manufacturer and
one of the leading automakers. With a global network of 501 subsidiaries and affiliates
accounted for under the equity method, Honda develops, manufactures and markets a
wide variety of products, ranging from small general-purpose engines and scooters to
specialty sports cars, to earn the Company an outstanding reputation from customers
worldwide.

1.1.3Honda Siel Cars India Limited (HSCI)

is a joint venture between the Honda Motor Company of Japan and Siel Limited, a
Siddharth Shriram Group company. It currently is the 6th largest car maker in India after
Maruti Suzuki, Hyundai, Tata Motors, Mahindra and Chevrolet. It was begun in
December 1995. The venture was begun with the aim of delivering Honda's passenger car
models and technologies to the Indian market. The total investment made by the company
in India till date is over Rs. 800 crores.

1.1.5General Information
International Headquartered: Honda is headquartered in Minato, Tokyo, Japan

Head Office
1-1, 2-chome, Minami-Aoyama, Minato-ku, Tokyo 107-8556,
Japan
Tel: +81-(0)3-3423-1111
1.1.6 In India

Honda Siel Cars India Ltd.

Plot No. A-1, Sector 40/ 41
Surajpur-Kasna Road
Greater Noida Industrial Development Area
Distt. Gautam Budh Nagar
U.P. 201 306
Contact no- 0120 - 234 1313/ 1321/ 1327/ 1801/ 1806

Honda one 2 one-1800 113 121

011 – 39898918
1.2 Nature of Organization

Public
Type
(TYO: 7267) & (NYSE: HMC)
• Automotive
Industry
• Aviation
Founded 24 September 1948
• Soichiro Honda
Founder(s)
• Takeo Fujisawa
Headquarters Minato, Tokyo, Japan
Area served Worldwide
• Satoshi Aoki (Chairman)
Key people
• Takanobu Ito (CEO)
• Automobiles
• Motorcycles
• Scooters
• ATVs
• Electrical Generators
• Water pumps
• Lawn and Garden
Products
Equipments
• Tillers
• Outboard motors
• Robotics
• Jets

• Jet Engines
Revenue ▲ US$ 120.27 Billion (FY 2009)
Operating
▲ US$ 2.34 Billion (FY 2009)
income
Net income ▲ US$ 1.39 Billion (FY 2009)[
Total assets ▼ US$ 124.98 Billion (FY 2009)
Total equity ▼ US$ 40.6 Billion (FY 2009)
Employees 181,876
• Acura
Subsidiaries
• Honda Aircraft Company
Website Honda Worldwide
*TYO- Tokyo Stock Exchange
*NYSE- New York Stock Exchange

1.2.1 From a young age, Honda's founder, Soichiro Honda had a great interest in
automobiles. He worked as a mechanic at a Japanese tuning shop, Art Shokai, where he
tuned cars and entered them in races. A self-taught engineer, he later worked on a piston
design which he hoped to sell to Toyota. The first drafts of his design were rejected, and
Soichiro worked painstakingly to perfect the design, even going back to school and
pawning his wife's jewelry for collateral. Eventually, he won a contract with Toyota and
built a factory to construct pistons for them, which was destroyed in an earthquake. Due
to a gas shortage during World War II, Honda was unable to use his car, and his novel
idea of attaching a small engine to his bicycle attracted much curiosity. He then
established the Honda Technical Research Institute in Hamamatsu, Japan, to develop and
produce small 2-cycle motorbike engines. Calling upon 18,000 bicycle shop owners
across Japan to take part in revitalizing a nation torn apart by war, Soichiro received
enough capital to engineer his first motorcycle, the Honda Cub. This marked the
beginning of Honda Motor Company, which would grow a short time later to be the
world's largest manufacturer of motorcycles by 1964.

1.2.2 The first production automobile from Honda was the T360 mini pick-up
truck.Powered by a small 356 cc straight-4 gasoline engine, it was classified under the
cheaper Kei car tax bracket.The first production car from Honda was the S500 sports
car.Its chain driven rear wheels point to Honda's motorcycle origins.

(a)"Honda" in Japanese is 本田, which literally means "root field" or "original field".

(b)Honda's official slogan is "The Power of Dreams". They have never used this slogan
to sell their products. Mr. Honda's belief is that well built products will sell themselves.

(c)In 2003, Honda released its Cog advertisement in the UK and on the Internet. To make
the ad, the engineers at Honda constructed a Rube Goldberg Machine made entirely out
of car parts from a Europe Domestic Market Honda Accord (upon which the USDM
Acura TSX is based). To the chagrin of the engineers at Honda, all the parts were taken
from two of only six hand-assembled pre-production models of the Accord. The
advertisement depicted a single cog which sets off a chain of events that ends with the
Honda Accord moving and Garrison Keillor speaking the tagline, "Isn't it nice when
things just... work?" It took 606 takes to get it perfect.
1.2.3 In 2004, they produced the Hate Something advert, usually immediately followed
by a shortened version of the 2005/2006 Impossible Dream advert.

A post 2005 style Honda dealership in Moncton, Canada

In 2006, Honda released its Choir advertisement, for the UK and the internet. This
featured a 60-person choir who sang the car noises as film of the Honda Civic are shown.

1.2.4 In December 2005, Honda released The Impossible Dream a two-minute panoramic
advertisement filmed in New Zealand, Japan and Argentina which illustrates the
founder's dream to build performance vehicles. While singing The Impossible Dream
(The Quest), a man reaches for his racing helmet, leaves his trailer on a minibike, then
rides a succession of vintage Honda vehicles: a motorcycle, then a car, then a powerboat,
then goes over a waterfall only to reappear piloting a hot air balloon, with Garrison
Keillor saying "I couldn't have put it better myself" as the song ends. The song is from
the 1960s musical "Man Of La Mancha", sung by Andy Williams.

1.2.5 For the last several years in the United States, during model close-out sales for the
current year before the start of the new model year, Honda's advertising has featured an
animated character known simply as Mr. Opportunity, voiced by Rob Paulsen. The casual
looking man talks about various deals offered by Honda and ends with the phrase "I'm
Mr. Opportunity, and I'm knockin'", followed by him "knocking" on the television screen
or "thumping" the speaker at the end of radio ads. Also, commercials for Honda's
international hatchback, the Jazz, are parodies of well-known pop culture images such as
Tetris and Thomas The Tank Engine.

1.2.6 In late 2006, Honda released an ad with ASIMO exploring a museum, looking at
the exhibits with almost child-like wonderment (spreading out its arms in the aerospace
exhibit, waving hello to an astronaut suit that resembles him, etc.), while Garrison Keillor
ruminates on progress. It concludes with the tagline: "More forwards please".

1.2.7 Honda also sponsored ITV's coverage of Formula One in the UK for 2007.
However they had announced that they would not continue in 2008 due to the
sponsorship price requested by ITV being too high.

1.2.8 In May 2007, focuses on their strengths in racing and the use of the Red H badge —
a symbol of what is termed as "Hondamentalism". The campaign highlights the lengths
that Honda engineers go to in order to get the most out of an engine, whether it is for
bikes, cars, powerboats — even lawnmowers. Honda released its Hondamentalism
campaign. In the TV spot, Garrison Keillor says, "An engineer once said to build
something great is like swimming in honey", while Honda engineers in white suits walk
and run towards a great light, battling strong winds and flying debris, holding on to
anything that will keep them from being blown away. Finally one of the engineers walks
towards a red light, his hand outstretched. A web address is shown for the
Hondamentalism website. The digital campaign aims to show how visitors to the site
share many of the Hondamentalist characteristics.

1.2.9 In 2009, American Honda released the "Dream the Impossible Documentary
Series," a collection of 5-8 minute web vignettes that focus on the core philosophies of
Honda. Current short films include Failure: The Secret to Success, Kick Out the Ladder
and Mobility 2088. They feature Honda employees as well as Danica Patrick, Christopher
Guest, Ben Bova, Chee Pearlman, Joe Johnston and Orson Scott Card. The film series
plays at dreams.honda.com.

1.2.10 In India
Manufacturing Facilities

(a) HSCI's manufacturing unit was set up in 1997 at Greater Noida, Uttar Pradesh with an
investment of Rs. 450 crore. The green-field project is spread across 150 acres of land
(over 6,00,000 sq. m.).

(b) The initial installed capacity of the plant was 30,000 cars per annum, which was
thereafter increased to 50,000 cars on a two-shift basis. The capacity has further been
enhanced to 1,00,000 units annually in February 2008 . The capacity expansion was
necessitated by the excellent performance of all the Honda models, particularly the
growing demand for City in India. Several modifications were done by the company with
the objective of offering higher quality products to its customers, faster and quicker. The
expansion process also included expansion of the covered area in the plant, from 1,07,000
sq. m. to 1,31,794 sq. m.

(c) HSCI currently produces the newly launched Honda Jazz, City, Civic and Accord
models in India and the premium SUV, CR-V is sold as a fully imported unit from
Japan.The company operates under the stringent standards of ISO 9001 for quality
management and ISO 14001 for environment management.
1.3 Company’s Vision and Mission

Honda Philosophy

Basic Principles Respect for the individual. The Three Joys (buying, selling and creating)

Company Principle Maintaining a global viewpoint, we are dedicated to supplying products of the highest quality, yet at a
(Mission Statement) reasonable price for worldwide customer satisfaction.

Management Policies • Proceed always with ambition and youthfulness.

 • Respect sound theory, develop fresh ideas, and make the most effective use of time.
• Enjoy work and encourage open communication.
• Strive constantly for a harmonious flow of work.

• Be ever mindful of the value of research and endeavor.

Dreams inspire us to create innovative products that enhance mobility and benefit society. To meet the particular needs of customers in
different regions around the world, we base our sales networks, research and development centers and manufacturing facilities in each
region. Furthermore, as a socially responsible corporate citizen, we strive to address important environmental and safety issues.

Honda philosophy and corporate vision

1.3.1 Honda formulated its vision statement, “Striving to be a company society wants to
exist,” based on the Honda philosophy.
In order to realize this vision, we have established three directions: creating new value,
expanding value and
commitment to the future. All of Honda’s environmental activities are an expression of
the Honda philosophy of respect
for the individual and the Three Joys (buying, selling, and creating).
Creating new value means applying innovative ideas to create new value that anticipates
changing needs and gives
shape to dreams. Expanding value means helping people realize their dreams by
contributing to local communities
wherever we are active around the globe. Commitment to the future means working to
improve safety for everyone
while also minimizing our burden on the environment and consumption of the earth’s
resources.
Honda is accelerating its efforts to preserve the global environment by applying these
principles, enhancing the
Three Joys, and working globally to create a better world for future generations. By
proactively engaging with our customers
and other citizens around the globe, we hope to share joy and become a company whose
existence is valued
by more people than ever before.

1.3.2 Honda Environment Statement

As a responsible member of society whose task lies in the preservation of the global
environment,the company will make every effort to contribute to human health and the
preservation of the global environment in each phase of its corporate activity. Only in this
way will we be able to count on a successful future not only for our company, but for the
entire world.

1.3.3 We should pursue our daily business interests under the following principles:
We will make efforts to recycle materials and conserve resources and energy at every
stage of
our products’ life cycle from research, design, production and sales, to services and
disposal.
We will make every effort to minimize and find appropriate methods to dispose of waste
and
contaminants that are produced through the use of our products, and in every stage of the
life
cycle of these products.
As both a member of the company and of society, each associate will focus on the
importance
of making efforts to preserve human health and the global environment, and will do his or
her
part to ensure that the company as a whole acts responsibly.
We will consider the influence that our corporate activities have on the local environment
and
society, and endeavor to improve the social standing of the company.
Honda has been implementing proactive measures to help resolve environmental
challenges since the 1960s, when
concerns about air pollution began to grow. In 1966, soon after expanding into
automobile production, we established
a department to research air pollution measures. In 1972, under the theme “Blue Skies for
Our Children,” we introduced
the CVCC engine, becoming the world’s first automaker to comply with the U.S. Clean
Air Act without the use
of a catalytic converter—a challenge thought by many to be nearly insurmountable.
Believing that problems caused by
technology should be solved by technology, we’ve continued to confront environmental
challenges.
In 1992, we released the Honda Environment Statement to clearly define our approach to
environmental issues,
which is central to everything we do. In 1999, we set specific numerical targets for
cleaner emissions and higher fuel
efficiency in all of our product categories, all of which were achieved by their target date
of 2005. In 2006, Honda
became the world’s first automaker to announce voluntary targets for reduction of CO2
emissions by FY2011.

1.3.4 Honda Environment Statement

As a responsible member of society whose task lies in the preservation of the global
environment,
the company will make every effort to contribute to human health and the preservation of
the
global environment in each phase of its corporate activity. Only in this way will we be
able to
count on a successful future not only for our company, but for the entire world.
We should pursue our daily business interests under the following principles:
1. We will make efforts to recycle materials and conserve resources and energy at every
stage of
our products’ life cycle from research, design, production and sales, to services and
disposal.
2. We will make every effort to minimize and find appropriate methods to dispose of
waste and
contaminants that are produced through the use of our products, and in every stage of the
life
cycle of these products.
3. As both a member of the company and of society, each associate will focus on the
importance
of making efforts to preserve human health and the global environment, and will do his or
her
part to ensure that the company as a whole acts responsibly.
4. We will consider the influence that our corporate activities have on the local
environment and
society, and endeavor to improve the social standing of the company.

1.4. Product range of the company

1.4.1 Automobiles

(a) Honda's global lineup consists of the Fit, Civic, Accord, Insight, CR-V, Odyssey and
S2000. An early proponent of developing vehicles to cater to different needs and markets
worldwide, Honda's lineup varies by country and may feature vehicles exclusive to that
region. A few examples are the latest Acura TL luxury sedan and the Ridgeline, Honda's
first light-duty pickup truck. Both were engineered primarily in North America and are
exclusively produced and sold there.

(b) The Honda Civic is a line of compact cars developed and manufactured by Honda. In
North America, the Civic is the second-longest continuously running nameplate from a
Japanese manufacturer; only its perennial rival, the Toyota Corolla, introduced in 1968,
has been in production longer.[22] The Civic, along with the Accord and Prelude,
comprised Honda's vehicles sold in North America until the 1990s, when the model
lineup was expanded. Having gone through several generational changes, the Civic has
become larger and more upmarket, and it currently slots between the Fit and Accord.

2008 Honda Accord (USA spec)

Eight Generation Honda Civic (Philippine Version)

Honda Automobiles is one of the Big Asian Four (with Toyota, Nissan and Hyundai)

(c) The 2006 Ridgeline was a reintroduction of the concept of a Uni-Body truck. Earlier
examples of this concept are the Subaru Brat and Baja, Volkswagen Rabbit pick-up, and
Dodge Rampage/Plymouth Scamp.

(d) Honda increased global production in September 2008 to meet demand for small cars
in the U.S. and emerging markets. The company is shuffling U.S. production to keep
factories busy and boost car output, while building fewer minivans and sport utility
vehicles as light truck sales fall.[24]

Honda produces the Insight, a hybrid electric vehicle that competes with Toyota Prius
(e) Its first entrance into the pickup segment, the lightduty Ridgeline, won Truck of the
Year from Motor Trend magazine in 2006 (also in 2006, the redesigned Civic won Car of
the Year from the magazine, giving Honda a rare double win of Motor Trend honors).

(f) In the U.S., five of EPA's top ten most fuel-efficient cars from 1984 to 2010 comes
from Honda, more than any other automakers. The five models are: 2000-2006 Honda
Insight(53 mpg combined), 1986-87 Honda Civic Coupe HF (46 mpg combined), 1994-
95 Honda Civic hatchback VX (43 mpg combined), 2006- Honda Civic Hybrid (42 mpg
combined), and 2010- Honda Insight (41 mpg combined).(mpg revised in accordance
with 2008 regulation change)

1.4.2 In India

(a) Manufactured Locally

1. Honda City (Launched 1996)

2. Honda Accord (Launched 2001)
3. Honda Civic (Launched 2006)
4. Honda Jazz (Launched 2009)

(b) Imported

1. Honda CR-V (Launched 2003)

Honda Jazz (Launched 2009)

2nd Generation Honda Jazz

The 5th Generation Honda City

8th Generation Honda Civic

8th Generation Honda Accord

3rd Generation Honda CR-V

1.4.3 Motorcycles

(a) Honda is the largest motorcycle manufacturer in Japan and has been since it started
production in 1955.At its peak in 1982, Honda manufactured almost 3 million
motorcycles. By 2006 this figure had reduced to around 550,000 but was still higher than
its three domestic competitors.

(b) During the 1960s, when it was a small manufacturer, Honda broke out of the Japanese
motorcycle market and began exporting to the US. Taking Honda’s story as an archetype
of the smaller manufacturer entering a new market already occupied by highly dominant
competitors, the story of their market entry, and their subsequent huge success in the US
and around the world, has been the subject of some academic controversy. Competing
explanations have been advanced to explain Honda’s strategy and the reasons for their
success.

(c) The first of these explanations was put forward when, in 1975, Boston Consulting
Group (BCG) was commissioned by the UK government to write a report explaining why
and how the British motorcycle industry had been out-competed by its Japanese
competitors. The report concluded that the Japanese firms, including Honda, had sought a
very high scale of production (they had made a large number of motorbikes) in order to
benefit from economies of scale and learning curve effects. It blamed the decline of the
British motorcycle industry on the failure of British managers to invest enough in their
businesses to profit from economies of scale and scope.

2004 Honda Super Cub

(d)The second explanation was offered in 1984 by Richard Pascale, who had interviewed
the Honda executives responsible for the firm’s entry into the US market. As opposed to
the tightly focused strategy of low cost and high scale that BCG accredited to Honda,
Pascale found that their entry into the US market was a story of “miscalculation,
serendipity, and organizational learning” – in other words, Honda’s success was due to
the adaptability and hard work of its staff, rather than any long term strategy. For
example, Honda’s initial plan on entering the US was to compete in large motorcycles,
around 300 cc. It was only when the team found that the scooters they were using to get
themselves around their US base of San Francisco attracted positive interest from
consumers that they came up with the idea of selling the Super Cub.

(e)The most recent school of thought on Honda’s strategy was put forward by Gary
Hamel and C. K. Prahalad in 1989. Creating the concept of core competencies with
Honda as an example, they argued that Honda’s success was due to its focus on
leadership in the technology of internal combustion engines. For example, the high
power-to-weight ratio engines Honda produced for its racing bikes provided technology
and expertise which was transferable into mopeds. Honda's entry into the US motorcycle
market during the 1960s is used as a case study for teaching introductory strategy at
business schools worldwide.
(f)It created the first luxury Japanese car (1985 Legend) and motorcycle (2006 Gold
Wing bikes) equipped with an airbag, as well as the first mid-size pickup truck with
independent rear suspension (2006 Ridgeline).

1.4.4 In India

Hero Honda Motors Limited, based in Delhi, India is a joint venture between the Hero
Group of India and Honda of Japan.It has been referred to as the world's biggest
manufacturer of 2-wheeled motorized vehicles since 2001, when it produced 1.3 million
motorbikes in a single year.

(a)List of models

• Achiever
• Ambition 133, Ambition 135
• CBZ, CBZ Star, CBZ Xtreme
• CD 100, CD 100 SS, CD Dawn, CD Deluxe, CD Deluxe (Self Start)
• Glamour, Glamour F.I
• Hunk
• Joy
• Karizma, Karizma R, Karizma ZMR FI
• Passion, Passion+, Passion Pro
• Pleasure
• Street
• Splendor, Splendor+, Splendor+ (Limited Edition), Super Splendor, Splendor
NXG

(b) Power Equipment

Honda Outboard motor on a pontoon boat

Honda engines powered the entire 33-car starting field of the 2010 Indianapolis 500[27]
and for the fifth consecutive race, there were no engine-related retirements during the
running of the Memorial Day Classic.

Honda, despite being known as an engine company, has never built a V8 for passenger
vehicles. In the late 1990s, the company resisted considerable pressure from its American
dealers for a V8 engine (which would have seen use in top-of-the-line Honda SUVs and
Acuras), with American Honda reportedly sending one dealer a shipment of V8
beverages to silence them.

(c) Robots

ASIMO at Expo 2005

ASIMO is the part of Honda's Research & Development robotics program. It is the
eleventh in a line of successive builds starting in 1986 with Honda E0 moving through
the ensuing Honda E series and the Honda P series. Weighing 54 kilograms and standing
130 centimeters tall, ASIMO resembles a small astronaut wearing a backpack, and can
walk on two feet in a manner resembling human locomotion, at up to 6 km/h (3.7 mph).
ASIMO is the world's only humanoid robot able to ascend and descend stairs
independently.[30] However, human motions such as climbing stairs are difficult to mimic
with a machine, which ASIMO has demonstrated by taking two plunges off a staircase.

Honda's robot ASIMO (see below) as an R&D project brings together expertise to create
a robot that walks, dances and navigates steps. 2010 marks the year Honda has developed
a machine capable of reading a users brainwaves to move ASIMO. The system uses a
helmet covered with electroencephalography and near-infrared spectroscopy sensors that
monitor electrical brainwaves and cerebral blood flow—signals that alter slightly during
the human thought process. The user thinks of one of a limited number of gestures it
wants from the robot, which has been fitted with a Brain Machine Interface.

(d) Aircraft

Honda has also pioneered new technology in its HA-420 HondaJet that allows new levels
of reduced drag, increased aerodynamics and fuel efficiency thus reducing operating
costs.
(e) Mountain bikes

Honda has also built a Downhill racing bike, known as the Honda RN-01. Honda has
taken on several people to pilot the bike, among them is Greg Minnaar. The team is
known as Team G Cross Honda. The key feature of this bike is the gearbox, which
replaces the standard Derailleur found on most bikes.

1.5 Size of organization

1.5.1 Sales

Calendar Year Total US sales

1999 1,076,893
2000 1,158,860
2001 1,207,639
2002 1,247,834
2003 1,349,847
2004 1,394,398
2005 1,462,472
2006 1,509,358
2007 1,551,542
2008 1,284,261
2009 1,150,784

1.5.2 Sales and Service Network

Honda Siel Cars India has 117 dealerships in 70 cities. HSCI dealerships are based on the
“3S Facility” (Sales, Service, Spares) format.It plans to increase the number of
dealerships to 160 by 2014.

1.5.3 Sales performance

Honda Siel Cars India (HSCI) Ltd., leading manufacturer of premium cars in India, sold
55,884 units during the period April '09 - February '10 as against 45,052 units during the
same period last year recording an increase of 24%.

Manpower Differs country to country with the set up of plants. Each plant has different
number of workers and employees. It follows the chain from top to bottom in rankings
and position of the employees and strive the goal of harmony amongst them with as much
success.
1.6 Organisation structure of the company
Changes in Responsibilities of Board Members (Effective as of April 1, 2010)
Name and Title New Responsibilities Current Responsibilities
Takanobu ITO President and Chief Executive Officer -President and Chief Executive Officer
-President and Director of Honda R&D Co., Ltd.
Koichi KONDO -Executive Vice President Executive Vice President
-Compliance Officer, Government and
Industrial Affairs
Atsuyoshi HYOGO Senior Managing Director -Senior Managing Director
-Chief Operating Officer for Regional Operations
(China)
-President of Honda Motor (China) Investment
Corporation, Ltd.
Mikio YOSHIMI Senior Managing Director -Senior Managing Director
-Compliance Officer, Government and Industrial
Affairs
Tatsuhiro OYAMA -Managing Director -Managing Director
-Chief Operating Officer for Motorcycle -Chief Operating Officer for Motorcycle Operations
Operations
-Chief Officer for Driving Safety Promotion
Center
Hiroshi SODA Director -Director
-Chief Operating Officer for Business Support
Operations,
-Chief Officer for Driving Safety Promotion Center
- Corporate Communications
1.7. Market share & position of the company in the industry.

1.7.1 Current Market Position

(a)With high fuel prices and a weak US economy in June 2008, Honda reported a 1%
sales increase while its rivals, including the Detroit Big Three and Toyota, have reported
double-digit losses. Honda's sales were up almost 20 percent from the same month last
year. The Civic and the Accord were in the top five list of sales. Analysts have attributed
this to two main factors. First, Honda's product lineup consists of mostly small to mid-
size, highly fuel-efficient vehicles. Secondly, over the last ten years, Honda has designed
its factories to be flexible, in that they can be easily retooled to produce any Honda model
that may be in-demand at the moment.

(b) Nonetheless, Honda, Nissan, and Toyota, were still not immune to the global financial
crisis of 2008, as these companies reduced their profitability forecasts. The economic
crisis has been spreading to other important players in the vehicle related industries as
well.[16][17] In November 2009 the Nihon Keizai Shinbun reported that Honda Motor
exports have fallen 64.1%.[18]

(c) At the 2008 Beijing Auto Show, Honda presented the Li Nian ("concept" or "idea") 5-
door hatchback and announced that they were looking to develop an entry-level brand
exclusively for the Chinese market similar to Toyota's Scion brand in the USA. The
brand would be developed by a 50-50 joint-venture established in 2007 with Guangzhou
Automobile Industry Group.

HSCI sold 4,595 units in June 2010

(Thursday, July 01, 2010,New Delhi)

New Delhi, July 1, 2010: Honda Siel Cars India Ltd, leading manufacturer of
Premium Cars in India sold 4595 units in the month of June’10 as against 4067 units
sold in May’10 recording a growth of 13%.

The company had sold 5048 units in the corresponding month last year.
 Model wise break-up: Jazz: 507; City: 3544; Civic: 339; Accord: 157; CRV: 48

1.8. Present leadership

1.8.1 Leadership

• 1948–1973 — Soichiro Honda

• 1973–1983 — Kiyoshi Kawashima
• 1983–1990 — Tadashi Kume
• 1990–1998 — Nobuhiko Kawamoto
• 1998–2004 — Hiroyuki Yoshino
• 2004–2009 — Takeo Fukui
• since 2009 — Takanobu Ito

1.8.2 Honda Siel Automobile

Mr. Takashi Nagai

President & CEO- Honda Siel Cars India Ltd., Honda
Motor India Private Ltd.

Takashi Nagai is President & CEO, Honda Siel Cars India Ltd.
and Honda Motor India Private Ltd. from April 2010.

He is also the head of Honda’s overall operations in the entire

South West Asia region.

He has been associated with the Honda Motor Co. for more
than 27 years. Nagai joined Honda in 1982 and began his career in Production Control at
company’s Hamamatsu Plant in Japan.

Takashi Nagai has vast experience in the automobile industry, having worked with Honda
ventures in different markets, across the globe including America and Europe. From
February 2003 to January 2006, Nagai was stationed in Mexico as Director of Honda de
Mexico, S.A. de C.V. In February 2006, Nagai was appointed as General Manager,
Overseas Operations Office No. 1 of Honda Motor Co. Ltd. looking after North America,
South America and European market. In April 2007, Nagai became Executive Vice
President, Asian Honda Motor Company Ltd. and a Director of Honda Motor Co. Ltd from
June of the same year.
 1.9 Sources of Data Collection

1.9.1 The sources of data collection were primary and secondary source. Primary data has

been send for analysis of the objective of research. As well as secondary data proved to

be helping hand incompletion of the project.

1.9.2 Primary data: Primary data are those, which are, collected for the first time, and it is
original in character.

Secondary data: Secondary data on the other hand are those which have already been

collected by someone else and which have already been passed through the statistical

process. In this secondary data used were, books, magazines, internet and other project

reports. Reasons for selecting the primary data:

(a) Since the main objective of the project, is to analyse the organisation in a

detailed manner & find out the variation & deviation in the concept taught in classroom

& the corporate world. The best tool that can satisfy all the requirement of data was the

primary data. One needs to have the depth knowledge the customer views, and their

perception and their investment pattern. The information has been collected through

questionnaire.

(b) Thus the primary data have been proved one of the potential approaches in collection
of the information.
Chapter-2: SWOT Analysis of the Company

2.1. Strengths

• Familiar brand name

• New age design

• Reputation for producing high quality products.

• Honda has won many products for initial quality and customer satisfaction.

• Automobiles are reliable and generally fuel efficient

• Strong research and development which has afforded them competitiveness in

quality products

• They were a pioneer in engineering low emissions internal combustion and hybrid
technology

• Honda is the only other manufacturer outside of Mitsubishi to branch out into
many other areas outside of automobiles, like motorcycles, scooters, power
equipments (generators), Asimo Robot

Weaknesses

• Prices are higher for non-luxury vehicles than comparable models by other
manufacturers.

• Their vehicles also have a reputation for being underpowered.

 • Due to the latest technology being used in Honda products it is difficult to keep
the prices low

2.2 Opportunities

• To continue progressing low emission vehicles and alternative power

sources.While they have made progress in this area, the technology is still
overpriced for the consumer, and the infrastructure does not exist.

• Another area of opportunity would be developing nations like India and China.
These are large markets, and cheap dependable transportaion would be a hot
seller.

• Easy financing.

Threats

• If continuous innovations are not done, then competitors will beat you with last
year’s technology

• Strict environmental laws like EURO III norms

• Liberal Government policies

• Too many competitors in automotive industry.

• Expanding market size of compact cars ( currently it is around 76% )

• Regaining the lead of low emissions is a risky proposition as other companies are
coming out with new and cost effective ideas of producing low emission vehicles.

• Increasing steel prices will make it difficult for the companies to continue the
current pricing strategy.
2.3 Corporate Governance

Basic stance regarding Corporate Governance :

(a) Based on its fundamental corporate philosophy, the Company is working to enhance
corporate governance as one of its most important management issues. Our aim is to have
our customers and society, as well as our shareholders and investors, place even greater
trust in us and to ensure that Honda is a company that society wants to exist.

(b) To ensure objective control of the Company's management, outside directors and
outside corporate auditors are appointed to the Board of Directors and the Board of
Corporate Auditors, which are responsible for the supervision and auditing of the
Company. Honda has also introduced an operating officer system, aimed at strengthening
both the execution of business operations at the regional and local levels and making
management decisions quickly and appropriately. The term of office of each director is
limited to one year, and the amount of remuneration payable to them is determined
according to a standard that reflects their performance in the Company. Our goal in doing
this is to maximize the flexibility with which our directors respond to changes in the
operating environment.

(c) With respect to business execution, Honda has established a system for operating its
organizational units that reflects its fundamental corporate philosophy. For example,
separate headquarters have been set up for each region, business, and function, and a
member of the Board of Directors or an operating officer has been assigned to each
headquarters and main division. In addition, by having the Executive Council and
regional operating boards deliberate important matters concerning management, the
Company implements a system that enables swift and appropriate decision making.

(d) With respect to internal controls, compliance systems and risk management systems
have been designed and implemented appropriately following the basic policies for the
design of internal controls decided by the Board of Directors.

(e) To enhance even further the trust and understanding of shareholders and investors,
Honda's basic policy emphasizes the appropriate disclosure of Company information,
such as by disclosing financial results on a quarterly basis and timely and accurately
giving public notice of and disclosing its management strategies. Honda will continue
raising its level of transparency in the future.
Chapter-3: Analysis of Financial Reports of the
Company

3.1 Balance sheet

(In crs)

Mar ' 10 Mar ' 09

Equity share capital 10.14 10.14
Share application money - -
Preference share capital - -
Reserves & surplus 192.21 184.27
Secured loans - -
Unsecured loans - -
Total 202.35 194.41
Gross block 148.30 144.56
Less : revaluation reserve - -
Less : accumulated depreciation 84.88 83.25
Net block 63.42 61.31
Capital work-in-progress 3.44 3.59
Investments - -
Current assets, loans & advances 185.30 263.21
Less : current liabilities & provisions 49.81 133.70
Total net current assets 135.49 129.51
Miscellaneous expenses not written - -
Total 202.35 194.41
Book value of unquoted investments - -
Market value of quoted investments - -
Contingent liabilities 51.08 58.34
Number of equity shares outstanding (Lacs) 101.43 101.43
3.2 Profit & Loss Statement
(in crs)

Mar ' 10 Mar ' 09

Income
Operating income 306.99 236.36

Expenses
Material consumed 193.75 152.45
Manufacturing expenses 5.60 11.96
Personnel expenses 24.85 22.76
Selling expenses - 16.77
Administrative expenses 44.42 12.41
Expenses capitalised - -
Cost of sales 268.62 216.35
Operating profit 38.36 20.01
Other recurring income 8.86 10.50
Adjusted PBDIT 47.22 30.50
Financial expenses 0.19 2.19
Depreciation 7.43 5.79
Other write offs - -
Adjusted PBT 39.61 22.52
Tax charges 6.87 8.64
Adjusted PAT 32.73 13.88
Non recurring items -20.04 -0.05
Other non cash adjustments - 1.82
Reported net profit 12.69 15.64
Earnings before appropriation 85.25 78.88
Equity dividend 4.06 4.06
Preference dividend - -
Dividend tax 0.69 0.69
Retained earnings 80.51 74.13

3.3 Cash Flow Statement

(in crs)

Mar ' 10 Mar ' 09

Profit before tax 19.56 24.28
Net cash flow-operating activity 24.51 -6.03
Net cash used in investing activity -1.96 -14.02
Net cash used in fin. activity -4.77 -4.84
Net inc/dec in cash and equivalent 17.78 -24.89
Cash and equivalent begin of year 83.08 108.03
Cash and equivalent end of year 100.86 83.13

3.4 Accounting Ratios

(in crs)

Mar ' 10 Mar ' 09

Per share ratios

Adjusted EPS (Rs) 32.27 13.68
Adjusted cash EPS (Rs) 39.60 19.39
Reported EPS (Rs) 12.51 15.42
Reported cash EPS (Rs) 19.83 21.13
Dividend per share 4.00 4.00
Operating profit per share (Rs) 37.82 19.73
Book value (excl rev res) per share (Rs) 199.50 6.75
Book value (incl rev res) per share (Rs.) 199.50 6.75
Net operating income per share (Rs) 302.66 233.03
Free reserves per share (Rs) - 181.42

Profitability ratios
Operating margin (%) 12.49 8.46
Gross profit margin (%) 10.07 6.01
Net profit margin (%) 4.01 6.33
Adjusted cash margin (%) 12.71 7.96
Adjusted return on net worth (%) 16.17 7.13
Reported return on net worth (%) 6.27 8.04
 Mar ' 10 Mar ' 09
Return on long term funds (%) 19.66 12.71

Leverage ratios
Long term debt / Equity - -
Total debt/equity - -
Owners fund as % of total source 100.00 100.00
Fixed assets turnover ratio 2.07 1.69

Liquidity ratios
Current ratio 3.72 1.97
Current ratio (inc. st loans) 3.72 1.97
Quick ratio 2.73 1.53
Inventory turnover ratio 6.82 4.45

Payout ratios
Dividend payout ratio (net profit) 37.40 30.34
Dividend payout ratio (cash profit) 23.59 22.14
Earning retention ratio 85.50 65.81
Cash earnings retention ratio 88.19 75.87

Coverage ratios
Adjusted cash flow time total debt - -
Financial charges coverage ratio 253.47 13.91
Fin. charges cov.ratio (post tax) 108.99 10.77

Component ratios
Material cost component (% earnings) 63.64 65.40
Selling cost Component - 7.09
Exports as percent of total sales 12.87 14.51
Import comp. in raw mat. consumed 27.88 22.63
Long term assets / total Assets 0.26 0.18
Bonus component in equity capital (%) - -
Chapter-4: Lessons Learnt

4.1 Following is the overall experience I got while working:

4.1.1
 • Team Work:

Team work is work performed by a team. The quality of teamwork may be measured by
analysing the effectiveness of the collaboration in the following ways

1. communication

2. coordination

3. balance of contributions

4. mutual support

5. effort

4.1.2

• Management:

(a) Management in all business areas and organizational activities are the acts of getting
people together to accomplish desired goals and objectives. Management comprises
planning, organizing, staffing, leading or directing, and controlling an organization (a
group of one or more people or entities) or effort for the purpose of accomplishing a goal.
Resourcing encompasses the deployment and manipulation of human resources, financial
resources, technological resources, and natural resources

(b) Because organizations can be viewed as systems, management can also be defined as
human action, including design, to facilitate the production of useful outcomes from a
system. This view opens the opportunity to 'manage' oneself, a pre-requisite to attempting
to manage others

(c) Relationship with Customers: Customer relationship management (CRM) is a broadly

recognized, widely-implemented strategy for managing and nurturing a company’s
interactions with customers, clients and sales prospects. It involves using technology to
organize, automate, and synchronize business processes—principally sales activities, but
also those for marketing, customer service, and technical support. The overall goals are to
find, attract, and win new clients, nurture and retain those the company already has,
entice former clients back into the fold, and reduce the costs of marketing and client
service. Customer relationship management denotes a company-wide business strategy
embracing all client-facing departments and even beyond. When an implementation is
effective, people, processes, and technology work in synergy to increase profitability, and
reduce operational costs.

4.1.3

• Marketing:

(a) Marketing is used to identify the customer, to keep the customer, and to satisfy the
customer. With the customer as the focus of its activities, it can be concluded that
marketing management is one of the major components of business management.
Marketing evolved to meet the stasis in developing new markets caused by mature
markets and overcapacities in the last 2-3 centuries. The adoption of marketing strategies
requires businesses to shift their focus from production to the perceived needs and wants
of their customers as the means of staying profitable.

(b) The term marketing concept holds that achieving organizational goals depends on
knowing the needs and wants of target markets and delivering the desired satisfactions.It
proposes that in order to satisfy its organizational objectives, an organization should
anticipate the needs and wants of consumers and satisfy these more effectively than
competitors.

4.1.4

• Sales:

A sale is the pinnacle activity involved in the selling products or services in return for
money or other compensation. It is an act of completion of a commercial activity.

The seller - the provider of the goods or services - completes a sale in response to an
acquisition or to an appropriation or to a request. There follows the passing of title
(property or ownership) in the item, and the application and due settlement of a price, the
obligation for which arises due to the seller's requirement to pass ownership. Ideally, a
seller agrees upon a price at which he willingly parts with ownership of or any claim
upon the item. The purchaser, though a party to the sale, does not execute the sale, only
the seller does that. To be precise the sale completes prior to the payment and gives rise
to the obligation of payment. If the seller completes the first two above stages (consent
and passing ownership) of the sale prior to settlement of the price, the sale remains valid
and gives rise to an obligation to pay

4.1.5

• Manufacturing:

Manufacturing is the use of machines, tools and labor to make things for use or sale. The
term may refer to a range of human activity, from handicraft to high tech, but is most
commonly applied to industrial production, in which raw materials are transformed into
finished goods on a large scale. Such finished goods may be used for manufacturing
other, more complex products, such as household appliances or automobiles, or sold to
wholesalers, who in turn sell them to retailers, who then sell them to end users - the
"consumers".

Manufacturing takes turns under all types of economic systems. In a free market
economy, manufacturing is usually directed toward the mass production of products for
sale to consumers at a profit. In a collectivist economy, manufacturing is more frequently
directed by the state to supply a centrally planned economy. In free market economies,
manufacturing occurs under some degree of government regulation.

Modern manufacturing includes all intermediate processes required for the production
and integration of a product's components. Some industries, such as semiconductor and
steel manufacturers use the term fabrication instead. The manufacturing sector is closely
connected with engineering and industrial design.

4.2 The practical knowledge which I have gained

• Outsourcing the manufacturing of different products.

• Assembling the products to build Products for the end users.

• Measuring the performance and Efficiency of the Product.

• Marketing of the product.

 • Testing which includes road tests and emission tests is done

• Finalising the product

• Taking responsibility of services to be provided to the end users with maximum

satisfaction level.

4.3 If any difficulties or bad experience faced and recommendations for

other students whether they should be sent or not in this company in
future

4.3.1
Personally I did not face any difficulties while performing my work , research and did not
experienced any problems while undergoing my summer training. I am very thankful to
my seniors in the organization , to my colleagues , to other employees that they helped
me out in every case and made me have a pleasant stay over there while teaching and
explaining things to me how the actual work is carried out. They were very co-operative.

4.3.2
Any person who is looking for training or a job in mere future considering the automobile
sector , I would like to recommend him/her to join and experience a challenging yet
learning life with ‘ Honda Siel Cars India’ where I took my training for 2 months.
Here, you’re most likely to develop a good character, ability to make yourself over
effective and efficient , learn the management and administration, the ground level work,
the perfect environment and surroundings to work at.

Bibliography :

 Marketing Management

-Philip Kotler

 Websites

-www.hondamotorindia.com

-www.indiacar.com
 -www.india.net

-www.cybersteering.com

-www.google.com

-www.automeet.com

 Magazines

-Business World

 Newspapers

-Economic Times

-Business Standard