You are on page 1of 14

Business case Analysis of

Honda

Introduction
The Honda Documentation Duplication case has been
chosen as it is a real case where the original documents and
websites of Honda were duplicated and the company was
losing funds without knowing that those who had inserted
the duplicate papers of the company in regions where
Honda in had siphoned the money without a trace. This was
a major issue which made Honda divert their attention from
automotive vehicles to motorbikes a region where they did
well and where duplication of documents was not there. In
trying to find out why and how the duplication of documents
was taking place Honda used their own investigative teams
to investigate without bringing in outside investigators or
making the issue public

Business Needs and Current Situation


Due to the situation that existed in Honda, it became necessary to uproot the
network or organized fraud that had taken root in the organization as it was not
corporate sabotage it was the attempt to take over a company and run a
parallel management within the organization.
The current situation is that Honda has got over the worst and there is a three
way check of all documentation, first of all the documents that are signed have
a particular mark that only the leadership of the company known and the
investigator who created the system.
The second check is to ensure that important documents are signed without
the time or the place being informed prior to the signing of the documents and
third check was to keep the copy of the original documents with a separate
entity as a paper based item unknown to anyone who was involved in the
negotiation. This three way check met the business needs between 2005 and
2010 for Honda.
The current situation is that authentication of all documents related to all areas
and not just purchases have become stringent in Honda and any suspicion of
the slightest type stalls the process of payments and negotiations till the
authenticity is established.

The Project Overview


The objectives of this project are to understand why such a
situation arose in Honda, what was the motive of targeting Honda
and not any other automotive company. The objective is also to
understand the two elicitation techniques that were used and how
they were used in the investigation.
The Scope: The scope of this project is vast as it provides the
opportunity to be able to understand the advanced levels of
corporate crime that are used with successful companies and who
they are used, what functions are necessary and what are the key
positions within the company that the organized criminals need to
make a success of their criminal plans in a targeted company. The
study will enable the results to be sued by all corporations that
may being facing the same situation in some form or the other
and it will help them to clean up the business environment in
which they operate.

The Deliverables

The project will be able to provide the exact


method that was used by the investigator and
the process that led him to find the duplication
of documentation within the company. It will
help to improve the security systems within the
organizations that are facing similar situation
but are unable to understand why and how it is
taking place. It will ensure that no corporation
will lose billions of dollars because of
anonymous and unknown methods being used
on a target company.

Resources

The human capital resources is at the minimum with only a four


member investigative team to work out and study the data that is
collected although they are all experts and highly paid no assistants
have been hired to avoid any leak in the project study or the results.
The use of information technology and the internet are the
technological resources that will be used. A wireless network at a
frequency that cannot be intercepted will also be used in order to
keep communication between the research team and the sponsor of
the project secure.
The financial resources of the company will be provided by the
sponsors of this study and the funding will be given every phase of
the research study as it is completed. The funds will be remitted
directly to the bank account of the main researcher who will then pay
out and obtain receipts of payment that will be collectively sent to
the sponsoring agency.

The Environmental Analysis


Honda operates in several countries and in each country the regulations are different and the
company has to comply with all the regulations of all the companies making the legal position of the
company complicated.
Technologically the company is advanced but to secure their business and their products from
further infiltration the GPS and the GSM systems should be included and the satellite navigation
systems should also be included to be able to track and trace. The vehicles are ecofriendly and
create minimum pollution with a maximum output of mileage per liter of fuel. Technologically Honda
can hold its position in the automotive industry and makes it one of the foremost corporations to
use advanced automotive technology in their products
Honda is operating in an environment of different cultures and languages which creates different
consumer psychology that Honda needs to understand. The Honda vehicles are seen as overrated
and expensive which means that in the regions where they sell their products the pricing does not
justify the product range that is placed in the market as a result Honda needs to review the quality
and the pricing to be more competitive with the local cares manufactured in North America, Europe
and in Latin America.
The Honda customer profile has so far been the profile of the customers who are middle class and
look for budget cars that can be bought with the maximum number of features. Hondas second
customer profile is the upper end of customers where luxury cars are essentially the requirement.
Honda needs to move away from the current locations even though it has generated maximum
revenues in the Asian regions and look at other growing economies to sell their cars to a customer
profile that should be the urban young professions who can afford not only the price at which Honda
sells their products but they also look for the features that Honda has in their products

Risk Assessment and Analysis

A feasibility as an alternative to the manufacturing unit was


undertaken by Honda and the feasibility study was conducted by
ABS in 2014. The assessment and the analysis that was found for
Honda was that there was scope for Honda in the aviation
industry, in the textile industry and in the IT industry to provided
services as products and not juts manufactured products The
success rate taking all risks into account in the initial three years
was seen to be 42% with the current level of resources of the
company and the current market share of the company.

The Implementation Strategy

The implementation strategy of the project plan to


resolve the issue will follow the steps as illustrated
in the diagram below.

The Contract Management Processes and Tools

The entire contract life cycle will be managed by the solution


that will be placed into the Selectica system and it will also be
done, manually for additional security cover

Cost Benefit Analysis of Honda for the Solution

Project Review and Approval Process


A three step solution was provided by the expert through personal interviews of 2
people each in all the locations. The questionnaire that he sued was:
How long has this problem being going on?
When was it at its maximum point?
When was the minimum point?
When did you first notice the issue?
How were your suspicions confirmed?
Who do you think is involved?
What are the reasons for this issue?
Have you been an eye witness to any such duplication?
How did you notice the differences?
What was different in to original documents and what was different in the duplicate
documents?
Were the signatures the same?
Did you inform the top leadership directly or through your supervisor?
What was your supervisors reaction?
What was the reaction of the top leadership?
Who do you think can be trusted?

Recommendations
The recommendations are that Honda should implement the
solution not only in the critical and non-critical locations but
in all locations for all its product manufacturing units and
offices in a uniform manner over a period of time. Since the
company has been penetrated and targeted a strong and
efficient HR departments should be put in place that will
screen the candidates before appointing them to the jobs.
The Honda company should have a strong surveillance
mounted in its communication of all types especially the use
of emails, phone calls video conferencing the messages and
communication with competitors or unrelated sites to
businesses that are in line with the Honda competition or
businesses interests. Anything suspicious needs to be taken
care of immediately

Conclusion
The Company needs to take permanent steps so that the
issue will be mitigated permanently. In order to this the
approval for the implementation of the plan and the
details of where and how to start and when the solution
needs to be implement should be planned and
communicated. This implementation plan does not need
to be communicated to all employees in the organization
as it is a matter of security for the Honda Motor Company.
Only those who need to know should be informed
discretely. The security for the safety of the research
team and the implementation team must be provided by
the company as they are natural targets for those who
operate organized crime at such levels and magnitudes.

You might also like