Business management bm assignment honda group in vietnam

To what extent culture has impacted on international business activities of Honda Group in Vietnam or (“To what extent utilize culture has guided to the success of Honda group in Vietnam”) Today not only economists but also culturists strongly agree that culture is a driving force of socioeconomic development. The impact of culture on the economy is extremely large and complex. Besides, the trend of globalization and multilateralism helps businesses have more opportunities to approach different foreign markets. While joining a foreign market, it is salience for businesses to understand that nation formal cultural institution. Therefore, by the effective exploitation of cultural elements in production and business activities will help businesses avoid failures and achieve success in that particular market.

"To what extent culture has impacted on international business activities of Honda Group in Vietnam" or (“To what extent utilize culture has guided to the success of Honda group in Vietnam”)

Table of contents

INTRODUCTION 3

Background 4

Brief introduction of operating business in foreign country 4

The process of Honda penetrating the Vietnamese market 4

Motorcycle factory 5

External Element (consumers, society, etc.) 5

International business activities of Honda in Vietnam 7

Price list for Honda motorcycle in Vietnam market 9

Target on young people 10

Focus on contributing to society 11

Internal Element (Worker, management) 12

Attitudes about the time, working style and colleague relationship of Vietnamese workers 12

Apply Japanese working style and colleague relationship to Vietnamese workforce: 13

Potential Conflicts 14

Honda's successes in exploiting the impact of culture in Vietnam 15

Leading products and exports 16

Conclusion 17

References 18

Today not only economists but also culturists strongly agree that culture is a driving force of socio-economic development The impact of culture on the economy is extremely large and complex Besides, the trend of globalization and multilateralism helps businesses have more opportunities to approach different foreign markets While joining a foreign market, it is salience for businesses to understand that nation formal cultural institution Therefore, by the effective exploitation of cultural elements in production and business activities will help businesses avoid failures and achieve success in that particular market

My topic " To what extent culture has impacted on international business activities of Honda Group in Vietnam" or (“To what extent utilize culture has guided to the success of Honda group in Vietnam”) will help us to better understand the impact of a culture on the business

activities of the Honda foreign enterprises Specifically, the topic will delve into analyzing the impact of culture on activities such as product selection, product valuation, HR management issues and issues related to social responsibility of Honda when doing business in Vietnam

Brief introduction of operating business in foreign country.

From individual customers and entrepreneurs to global business corporations, the core of all business activities based on human decision from large to small, insignificant choices

Psychologically speaking, any choices that we made are by both of our conscious and

subconscious mind, which is influenced by individual cultural developing from our past experience(ETB) When shoppers and sellers around the world intersect, they bring different values, expectations and communication platforms This difference will lead to cultural conflicts and thus create potential shocks before being able to adapt to a new culture

Understanding cultural and the ability to bring out culture sympathy are tremendously vital when a company operates any particular business in that culture It becomes even more vital and largely complex when a company operates in many different cultures

The process of Honda penetrating the Vietnamese market

Honda officially entered the Vietnamese market in March 1996 On March 22, 1996, Honda Vietnam was officially established Honda Vietnam is a joint venture between Japanese Honda Motor Company, Thailand Asian Honda Motor Company and Vietnam Engine and

Agricultural Machinery Corporation

Motorcycle factory

On August 29, 2008, in Vinh Phuc, Honda Vietnam Company held the inauguration ceremony

of the second motorbike factory The second motorbike factory has an area of 300,000 m2, located right next to the existing motorbike factory available in Vinh Phuc province

Total investment capital of Honda Vietnam is 290,427,084 USD, charter capital is

62,900,000 USD, Honda Vietnam's current number of employees was 4,369 people

(http://www.honda.com.vn )

External elements (consumers, society, etc.)

International business activities of Honda group in Vietnam

Honda is a foreign enterprise operating in the Vietnamese market so obviously it must be

influenced by the effects of Vietnamese cultural factors The elements of Vietnamese

culture directly impact on each specific activity of Honda such as product selection, cost

price and product quality, recruitment policies, and training of workers, members and

public relations activities such as social responsibility, social contribution

Honda has considered the first aesthetic factor when penetrating into Vietnam market Honda has launched a total of 12 models and all models are female motorcycles, which are suitable for the physique of Vietnamese people Honda models have bold and striking colors such as red, plum, green and purple charcoal The style and color of the motorcycles are also changed over time to accommodate the aesthetic changes of the Vietnamese people

Honda shipped the first motorcycle in Vietnam in December 1997, which is Honda Super Dream Honda Super Dream cars are brown plum, have familiar appearance in every Vietnamese house Super Dream launches with the message of a trusted friend, following the dreams with

Vietnamese people with a strong strength Along with the Future model launched in September

1999, Honda was very successful when it sold 500,000 units between 1997 and 2001

Since 2002, Honda has focused on producing more youthful models, vivid colors and vivid motifs Models show the dynamism and personality focusing on young people The models in turn were released by Honda: Wave α (launched in February 2002); Wave ZX and Future II (January 2004); New Wave RS and Wave α (November 2005); Wave RSV (June 2006); Wave

S, Future Neo (2007) These models sold more than 2 million units and have made Honda the number 1 motorcycle manufacturer in Vietnam

The aesthetic factor also affects the decoration and construction of authorized Honda car showroom Head Honda showroom decorated with two main colors, white and red, located in convenient traffic areas, having enough spacious campus area, cool space, sophisticated service area, room waiting when the customer warranty repair facilities, spare parts warehouse is always ready to meet the needs of customers, the staff is carefully trained by Honda Vietnam with a youthful and dynamic style, a signature etiquette of Japanese’s cultures

Advertisement

Honda's marketing, advertising and marketing campaigns are always friendly, close, impressive and sympathetic to Vietnamese consumers Honda's advertisements on television and outdoor billboards are intimate images of Vietnamese people such as the image of a father carrying a child with a Honda Dream car or a Honda driver wearing a helmet with a Vietnamese flag

In particular, affordable products are aimed at consumers with moderate incomes in rural areas and provinces, while middle-class products are targeted at urban consumers, especially towards young people The focus of Honda's products is currently a very modern and fashionable motorcycle with the potential for strong development in the future The advantages of Honda

Vietnam's products are in the "Honda" brand known around the world With high quality products, long life, durable, fuel-efficient, easy to maintain, suitable for the climate and traffic

of Vietnam This is the difference of Honda compared to its competitors Not only stop at various types of product lines, Honda Vietnam's products are considered to be well suitable for the budget of Vietnamese people, from rural to urban people In addition, Honda Vietnam has constantly improved the design and quality of products (like Wave have many models) while maintaining the selling price

Based on the income, psychology and expected attitudes of Vietnamese consumers,

Honda values its products in the most reasonable way As follows:

Price list for Honda motorcycle in Vietnam market

At October 11, 2019, inside Ho Chi Minh City Investment Promotion Conference, Vice

Chairman Tran Vinh Tuyen declared that the city economy maintained a relatively high

growth, the average income per capita of HCMC’S citizen is 9,800 USD, reached 9,6% per year Stand with this, it is valid to approve Honda’s price selection bring well benefit for Vietnamese’s citizen

Competitors

While back in the early 2000s, Chinese motorcycles flooded the Vietnamese market with stunning cheap prices Honda motorcycles, which are selling at the top, become sluggish due to the high price of 2 times Honda's name is still the number 1 desire of the Vietnamese people but the problem is that price is no longer competitive In this case, if Honda reduced the price to compete with Chinese cars that would lead to losses, at the same time causing the psychology that they had been overly high in the past, the Honda brand could be boycotted

Prior to that picture, Honda had thoroughly researched and launched a new line of motorcycles called Wave Alpha The quality is almost the same but the price is very competitive, only slightly higher than Chinese motorcycles With the name and belief in Honda quality Wave alpha was quickly received by the market Super Dream in the body of the Wave Alpha has created a swim upstream for Honda Vietnam

Community factors of Vietnamese culture also strongly impact on Honda's social activities Every year, the company devotes a budget of about US $ 2 million to the Fund for Social Activities Typical social activities programs of Honda are: "I love Vietnam" program started

in September 2004, aired on VTV3 and VTV1 channels of Vietnam television, attracting 7,000 people to participate each year; including "Safe driving guide" and many other programs

Vietnamese cultural values, communication, and cooperation on social

activities

The sense of value in Vietnamese culture is based on how its society acknowledge of any

particular business activities Honda has created good feelings for Vietnamese consumers

through public relations activities Honda's advertisements on billboards, on television

and other mass media all emphasize the community, close family This is consistent with the

traditional lifestyle and customs of Vietnamese culture

Vietnamese culture highly appreciates the dedication to society and businesses that have many contributions to social activities, receive tremendously positive feelings, imprinted on the hearts of Vietnamese people Every year, Honda Vietnam Company organizes loads of social activities with a budget of billions of Vietnam dong The typical social activities of Honda are the program "I love Vietnam" broadcast on Vietnamese television - a program to guide people on road traffic

laws and safe driving practices; Many projects support localities, policy families, economic difficulties to improve people's lives and improve the local socio-economic situation

Community factors of Vietnamese culture also strongly impact on Honda's social activities Every year, the company devotes a budget of about US $ 2 million to the Fund for Social Activities Typical social activities programs of Honda are: "I love Vietnam" program started in September 2004 The program "I love Vietnam" is one of the most popular programs on VTV3, VTV1 - Vietnam Television The program attracts about 7,000 participants each year This program has created an extremely good impression in the psychology of the Vietnamese people, including "Safe driving guide" and many other programs, helping people understand that Honda is a unit with very high social responsibility

In addition, Honda pays great attention to environmental protection, creating sympathy for the Vietnamese people by building and upgrading facilities for wastewater treatment systems, CO2 treatment and indoor air generation, heal inside and outside the factory Honda implicitly taken Vietnamese people issues as an advanced to gain their trust and loyalty

In addition, Honda has fulfilled the commitment of Mr Koji Onishi General Director: “We are very interested in social activities, such as guiding safe driving and propagating traffic safety

to build a society healthy traffic and development of educational, cultural, sports, etc As well

as charitable activities “Building and securing reputation and trust becomes even more critical

in an era of consumer capitalism when businesses expand into more domains of society (e.g

culture, sports, or leisure); the branding of companies and services becomes more critical for growth and the media, including the Internet becomes more significant in corporate

communications.” (BECP)

Target on young people

Broadly speaking, Honda has receiving a new income group during over the past 5 years, which are the young age citizen estimate around 18 to 24 of ages This data lead Honda to enhance their approach planning of group segmentation on markets including cost production, design, etc Currently, Vietnam is considered a country with a young population, over 60% of the

population is between the ages of 17 and 35 Besides keeping the traditional culture, the trend of globalization brings Vietnam to integration of many different cultures Young Vietnamese consumers are key customers of businesses in the future And the understanding of changes in aesthetics market, new lifestyle of consumers to provide the market with suitable products has helping Honda continues to maintain the No 1 position in the car market tight and competitive with competitors in the car market

“Young Vietnamese people today are very easy to change in aesthetics, psychology, outstanding taste, personality so Honda should constantly launch new products with designs, models, fashion, sport and youth dynamic Young people are also very susceptible to influences from celebrities,

so in marketing, Honda's marketing activities should have the participation of celebrities who are admired by Vietnamese youth.” According to an executive manager of Honda’s designing team

in Da Nang

In addition, Honda continues the social work to create good relations with the government, create good feelings for the Vietnamese people, maintaining their motto: “Honda is a member of the country who always tries its best for happiness and safety of Vietnamese people.”

Focus on contributing to society

In addition to the success in the field of production, business, export, Honda Vietnam is considered one of the strongest companies in contributing to the development of social, cultural

and educational fields Immediately after the inauguration of the factory, Honda Vietnam has built a safe driving center with a system of modern training and guiding equipment and has trained more than 12,000 students Besides, there are many other effective programs, helping Honda Vietnam to receive high appreciation of agencies and the public with 2 times awarded

by the National Traffic Safety Committee in 2004 and 2005

After more than 10 years of operation, Honda Vietnam has contributed to activities related to supporting the development of education, culture, arts, sports and charity with a total of nearly 6 million USD With a commitment to contribute more to society, Honda Vietnam officially put into operation the Honda Social Activity Fund with a budget of 10 million USD in the next 5 years Notably, the support for education development With the Honda Award for young Vietnamese engineers and scientists with the aim of creating favorable conditions for fostering and developing future talents in the field of technology and mechanics Every year, 10 students will be awarded prizes worth 3,000 USD / person and 1 Honda motorbike In addition, if any student wins a postgraduate scholarship in Japan, the fund will give each person 10,000 USD more for 5 years of study abroad

Of the 10 million USD of Honda Fund, there will be 4 million USD to invest in building a modern traffic safety training center in Vietnam to continue efforts to promote traffic safety activities that Honda Vietnam Male has done so far