How Honda Localizes its global

strategy
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2.
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4.

Trade frictions between advanced nations

Economic problems must be discuss at the global
level, not at the level or countries or even regions.
It is critical to build interdependent relationships among
nations, and in doing so, restore trust.
Corporations from the advanced nations can contribute
through investment and technology transfer
1.
2.

1st,countries involved must clearly understand the goals to be

attained thorough mutual cooperation
2nd, each countrys role must be recognized and agreed upon

How Honda Localizes its global

strategy
5.

Hondas overseas strategy: The four localizations

1.

Localization of Products

Developing, manufacturing and marketing the products best suited to the actual and
potential needs of the customer and to the social and economic conditions of the
marketplace
To localize products, corporations must invest in R&D of products and on increasing
production efficiency

2.

Localization of Profits
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3.

Reinvesting as much of the profits as possible in the local market. A company investing
abroad must regard it self as a local company and endeavor to prosper together with the
host community.

Localization of Production
1.
2.
3.

A corporation does not merely makes profits by exporting completed products: it carries out
production activities where major market exist, thereby contributing to the development of
the host nation and achieving mutual prosperity
This is the best way to gain acceptance of both the products and the corporation
There are two ways to make local production activity most effective
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2.

4.

Increase ratio of local content

Increase local production. This also increase responsibility and pride in the employees

Localization of Management
1.
2.

It goes beyond transferring knowledge about management systems operations. It requires

understanding the corporate philosophy
It also requires creating a sense of unity between management and labor so that everyone
is working toward a common goal

How Honda Localizes its global

strategy
5.

Hondas three most important policies:

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2.
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6.
7.

Establish a good human relations between the management

and the workforce
Maintain and promote harmony with the local community. An
important factor in producing high quality goods is securing
high quality labor
Give top priority to maintaining high quality standards in
Hondas products. Quality level is determined primarily by the
actual design of the product itself, not by quality control in the
production process.

Hondas strategies and policies are aimed at achieving

maximum customer satisfaction
It is essential for a corporation to interpret the word
customer in a broader sense to cover the whole
society in which it operates.