.

Methodology for employees:

As, we are well aware of X and Y theories of Management.
According to X Theory the employees have to be impulse or pushed to do work.
While according to the Y Theory employees are self motivated to do work. They do it
considering it their own duty.
In Atlas Honda there is blend of both theories. They believe that motivation is a factor
that can help in gaining better performance of the employees.

Tackling associates of different cultures:

One of the most important feature of an organization is the thing how it bears
and neutralize the Cultural Shock. While working in an organization people from
different backgrounds are hailed. These have different temperaments, capabilities, and
working methodoly.

Moreover to adjust in a totally variant environment is also a big task for the
new comers. The difficulties and problems which are caused due to arrival of new
members are termed as cultural shock.

As, for as Atlas Honda is concerned, when they had to hire700 employees in
November in 2015. At that time 3000 employees were already working in there. They let
new employees come in the organization in April. Hence from April to November the
new comers just had to learn the culture and environment of AHL. That’s how they
eliminated the possible cultural shock.

Introduction

Company Name: ATLAS HONDA

Industry: AUTOMOBILE
Atlas Honda Company is established on October 16, 1962. It is a company listed
in stock exchange of Pakistan. It is the biggest and the most famous Motorcycle Brand
in the world. There is a coordination between Honda Company Limited Japan. Atlas
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Honda is one of the prestige business in Pakistan. The company is engaged in
assembling and manufacturing Motorcycle and its Spare parts. Honda Company is auto
mobile industry in Pakistan.
Atlas Honda is the biggest manufacturer company in the Pakistan and the average
production is the Honda Company of PER MONTH is 96000 Bikes. It has the biggest
value and highest customer faithful. Company is a settler of motorbike industry in the
PAKISTAN and has been chief of two wheeler market successfully for over (FIFTY)
years.
Per year production of the company is 1.34 million and company maintain its status as
market chief in terms of volume and quality. It also exports its bikes and spare parts to
Afghanistan and Bangladesh
It has the biggest quality products and state of art manufacturing facilities, highest
dealership network and ideal after sale and services. Today Honda Limited is
considered a barometer for two wheeler manufacturing.
As one of the biggest tax payers in the sector of private and being one of the best boss
in the country, Atlas Honda Limited stands as a beacon of light for the corporate, social
and intellectual sectors of our country Pakistan.

Brief History:
Atlas Hondais a motorbike of Pakistani manufacturer owned by group of
atlas and Honda Motor Company and based in Karachi, Sindh, Pakistan since 1962.It is
the biggest motorcycle assembler and a market guider or head in our country Pakistan.
Honda Atlas was established on 4 Nov. 1992, while the joint travel agreement was
signed on 5 Aug. 1993. The production plant was begin 17 April 1993 and the 1st rolled
off the assembly line on 26 May 1994. By July 1994, six dealerships were inaugurated
in Lahore,Islamabad, and Karachi.
Atlas Honda has Pakistan’s largest in-house manufacturing capability at
its Sheikhupura and Karachiplants.

Training:

Atlas Honda ensures the training of its associates. They take as many steps as they
think are important for the employees to learn things to fit in the environment of the
company. They offer different courses for the training of their employees. For example
F-Course
A-Course

F-Course:
F-Course stands for fundamental course. It’s a training course for the new comers of the
company which help them get fit into the new environment of the organization. Hence

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the performance of the employees is enhanced in technical terms.

A-Course:
A-Coursestands forAssociate course. It’s a next level course for the new comers. This
course is offered to the candidates who have successfully gone through the F-Course. It
is more advanced course which help company associates to bring more efficiency and
accuracy in their work.

Decision Making:
Decision making is an important factor of every organization. It plays an important role
whether the plans made will work or not. It is an initiative in this regaled.
The decision making skill is very strong in Honda. Proper meetings are held for this
purpose as there is strong culture of ownership.

Pest Analysis
PEST analysis is the method to check strategic planning of an organization/company
and the external factors which effect it. PEST is acronym as Political, Economical,
Social and Technological factors effecting an organization.
The PEST analysis of Honda is discussed as under:

Political Factors:

Following are the points and causes of political factors in the Atlas Honda
organization:

Tax on the products

Heavy tax is imposed on the products of the Honda. Government earns a huge
amount of revenue from this organization in term of tax. Honda is the only one
organization who pays highest tax in the country every year. It is better for our economy
and also for the progress & development of country.

Loss of Employment
A large number of employees lose their jobs because of political stability.
Each upcoming government changes the previous policies which directly or indirectly
may affect the organization’s production, which becomes a cause of termination of jobs
of people. It is also decrease the economy level of the country.

High tariffs
Honda exports it’s products to Bangladesh, Sri-Lanka and Afghanistan. High
tariffs are imposed by the government on it’s exports. Imposition is also very high even
at local level. If the Honda made will make more export then the country currency is also
improved. Due to it’s the Dollar value is decreased in the country.

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Atlas Honda Project
Trading
Honda is the main shareholder in the market. It’s one of the leading brands which
export its products to other countries.

Political instability
Political stability is also a major factor which may effect any organization.
Instability in government policies affects the marginal productivity of the company.
According to the HR Manager of the Atlas Honda Organization, in Pakistan the
government is democratize so, every new government of Pakistan makes new policies
due to its, it is very difficult for the company to manufacture Bikes and then sale it in
Pakistan.

Government policies
Government policies are directly associated with the stability or un stability
of the organization. The production of the Honda organization is also based on these
Government policies.

Economic Factors:

Following are the economical factors of the Atlas Honda Organization.

Low investment
Due to inflation and deflation and other economic problems people tend to invest
less in the market. It has bad affect on Atlas Honda organization. Because every
organization has need of heavy investment due to complete the needs of the customers
of its company.

High interest rates

Credit is an important factor in business. If it is said that credit is the base of
business it won’t be false. But credit is given on certain terms and conditions and on
specific interest rates. When interest rates are high people hesitate to borrow loans and
hence investment in the market decreases. If company gives high profit then it is better
for the company.

Increase in GDP
When the products of the Honda are exported out of the country. The
production rate increases. As a result more employments are produced. A handsome
amount of foreign exchange is also earned which cause an increase in GDP of the
country.

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Rate of inflation
Rate of inflation is also an important factor for the decline in the level of the
investment in the country. The Government should wants to make policies to decrease
the rate of inflation. So then the public makes more investment in the Atlas Honda
organization.

Exchange rate
The increase or decrease in the dollar rate causes ups and downs in the market
share of any organization. These changes are creferred to exchange rate changing.
If the exchange rate of any country stable then it is very easy for every organization to
increase the productions.

Social Factors:

Following are the social factors of the Atlas Honda Organization.

Attract youth/young customers

One of the main factor is to attract as many young generation as possible to
the company’s products to increase and the revenue of the company. Because, Honda
organization produce bikes to attract and create passion in the young youth of the
country.

Family oriented advertisements

Family oriented advertisements help a lot to attract more and more
customers. Our society is of Islamic culture. Using female models may attract the
company few customers but the mass of the population may get diverted by the product
of the company.

Evaluating other social factors

Other social factors such as ethnicity of groups, age and other demographic
aspects should also be kept in the mind.

Technology factors:

Following are the technology factors of the Atlas Honda company. These plays
very vital role to increase the production of the Honda organization in new ways through
with heavy machines.

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Invention and innovations
More and more inventions and innovations should be kept on introducing in the
company to have a complete grasp on the customer.
Now, the Atlas Honda invent a new model of its product CG150F.

Research and development activities

The research department of the organization should be active enough to keep
an eye on the ever changing demands of the market and customers. The company
makes arrangements for it.

Automation
Man-power is an important factorof every industry. Even in Honda man-power
is an important asset of the company. But in manufacturing very detailed and hideous
work is needed. Therefore automated machines should be brought under use. It is the
automobile industry of Pakistan.

Robotics
Robots are the newest inventions of 21st century. They are being used
worldwide to increase productivity and efficiency level of the company’s products. It is
recommended to introduce them in local market/industry as well.

Open Door Leadership:

AHL follows open door leadership which means there are no ranking curtains
between associates of the company. Every person whether Manager or Foreman, is
always available to consult with, in working hours of the company.

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The office door of CEO is always open for every associate.
GM has no rooms at all. They have desks for easy consultancy purposes.

GANBA

GANBA is a Japanese concept which is applied in HONDA.

It means;
1 Actual part
2 Actual place
3 Actual situation

Implication of GANBA

An example of GANBA is that, as HONDA is making carburetors at

local level. All the repairsment are to be made by Honda itself. So they take utmost care
in its production. If a part is made faulty it will not only decrease the quality of the bike
but also the reputation of the company is negatively effected.

When a part is gone out of quality it is not only advised to be

rectified/repired by the employer, but the managerial team goes to the point of
production and see what are the factors which have caused this problem in the
formation. All the employees are consulted and appropriate measures are takes to
eradicate the respective problem.

Implication of GANBA in decision making

In decision making the rule of GANBA is implied as right decision is taken at right
time and implemented with full accuracy.

NEW HONDA CIRCLE (NHC):

In Honda different teams are working in different departments. Innovations and

inventions are compulsory for every organization to survive in the market. In ALT 900+
circles are present which give their ideas and possible solutions to solve the problems.
All the members are given equal opportunities to come forward.
Out of these 900+ ideas only 3 are choose and these teams are send to foreign
countries and different cities of Pakistan as a reward.

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 SWOT Analysis

By SWOT analysis we mean Strengths, weaknesses, opportunities and threats.

Strengths:
AHL holds biggest amount of shares in market of Pakistan as compare to other
competitors.
It is the first company which produces carbotears at local level
It demand is far more than other competitors
Efficient and well qualified people are staff members in AHL
Hiring is done after critical screening nd a series of interview
In private sectors Honda the highest tax paying company, which means Honda and
Pakistan are growing side by side
One thing we observed in AHL is that the associates are very punctual.
All the staff members are very determinant and enthusiastic
In Honda dividend is given to the associates biannually
People have tremendous trust on the Honda
Brand name
Smoother drive as compare to competitors
Quality ISO certification
Exotic interior
Unique aerodynamic shape
Revolutionary engine technology
Comfortable
Diversification
Customer satisfaction
Providing greatest passenger safety
Strong spare parts
Strong dealership network
Weaknesses:

Atlas Honda haste import the main machinery from West

Besides importing the machinery, technicians have also to be called from abroad for
repair and maintenance.
If a product is manufactured faulty, it takes utmost care to repair it
Higher prices can act adversely on market share
Inefficient cost management
Cutting bend technology that gives acceleration to problems
Limited designs
Sensor technology
Resale value

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Atlas Honda Project
Opportunities:

Growing automotive market

Technology upgrading
Development of new areas on markets create more opportunities for the company
Favourable government policies
Economy expanding (increase rural to urban migration)
Customer’s desired products
Increase in demand of bikes with rising population

Threats:

Political instability
Energy crises
Rising fuel prices
Depreciation of rupees against Dollar
Rising tax rates

Four Functions of Atlas Honda Management

Following are the four functions of the management:
1 Planning
2 Organizing
3 Leading
4 Controlling

(1)
Planning:
“A management function that involves
defining goals, establishing strategies
for achieving those goals, developing
plans to integrate and coordinate activities.”
 Strategic goals
 To achieve objectives of organization
 Promotion of Culture of equality
 To promote culture of ownership

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Atlas Honda Project
  To remove cultural shock
 Hiring of employees
Strategic goals:
A planned objective that Honda organization strives to achieve.
Manager will take the time to develop the strategic goals of their business in
order to demonstrate to subordinate employees what their plan and vision of the
Honda Company.
objectives of organization:
Commitment to provide high quality motorcycles & parts.
Right work in first attempt and on time.
Maintain and continuously improve quality.
Training of man power and acquisition of technology.
Safe, clean an healthy environment.
Market leadership and prosperity for all.

Culture of Ownership:
Everyone working here is as like associate. We do not call them employee
because it is the motivational tool of Atlas Honda Organization. This term help them
work taking it their own duty and responsibility. At the end of the year they get proper
reward in shape of Bonuses, Remuneration and Other Benefits.

Culture of Equality:
Culture of equality means the C.E.O of company and its employees
consider as an Associate of the company. And the dress of the company C.E.O
and its employees is also same and the color of his dressing is white. Even the
C.E.O and the employees of the company take its lunch from cafe in the same
way, the food provider only see the hand of the associate.
To remove cultural shock:
One of the most important feature of an organization is the thing how it bears and
neutralize the Cultural Shock. While working in an organization people from different
backgrounds are hailed. These have differnet temperaments, capabilities, and working
methodoly.
Hiring of employees:

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 When new employees are hired to be in the Honda company, all the
arrangements for this start month before. All the candidates under this scrutiny and
many interviews are held for their selection.

(2)

Organizing:
“A management functions that involves
arranging and structuring work to accomplish
organizational goals is called Organizing.”

 Organizing of resources
 To encourage team work
 Arrangement of proper training
 Determine rules and regulations

Organizing of resources:
Human resources
Time resources
Financial resources
Effective management of assets
To encourage team work:
In Honda organization, managers encourage their team for them work that they
are done in shape of team. Due to encouragement of associates, worker done their
work with more interest. So, It is better for the company.
Arrangement of proper training:
When Honda organization hires new employees. These employees do not start
work after their hiring. Before starting work company provides training to its employees.
In this regard company has two courses for the training of their employees.

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1 A-Course
2 F-Courses

(3)
Leading:
“A management function that involves
working with through people to accomplish
organizational goals is called Leading.”
 Motivating employees
 Influencing employees
 Forming effective Teams
Motivating employees:
Motivating employees by new Honda circle NHC.
Gamify & incentives to employees
Open door leadership
Ownership culture

Influencing employees:
Honda Company influenced its employees by given many
Incentives
Bonuses
Also celebrate the Family Day Function with their employees.
Forming effective Teams:
It is also the part of the leading for the manager that manager of the Honda
Company organization makes effective team for doing any special task of the company.
These teams work with their strong emotions and hard work for the progress of the
company.

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Atlas Honda Project
 (4)
Controlling:
“A management function that involves
Monitoring, comparing and correcting
work performance is called controlling.”

 Making Efficient use of Resources

 Improving Employee Motivation
 Ensuring Order & Discipline
 Ensuring Collaborative Leadership

Financial Analysis:
Authorized Capital:
Rs.1500000 thousand (Shares 150000000)
Paid up Capital:
Rs. 1034066 thousand (Shares 103406613)
Market value of Share:
Rs. 390
Dividend :
Rs. 27

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Atlas Honda Project
Hailey College of Banking & Finance University of Punjab Lahore
Atlas Honda Project
Hailey College of Banking & Finance University of Punjab Lahore
Atlas Honda Project
Model Names Prices

CD 70 Rs. 69500

CD 70 Dream Rs. 73500

Pridor Rs. 95500

CG 125 Rs. 115500

CB 125 F Rs. 161900

CB 150 F Rs. 189900

CB 250 F Rs. 640000

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Atlas Honda Project