the external assesment

8/7/2019 The External Assesment

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2011

ATLAS

HONDALtd.

[THE EXTERNAL ASSESMENT]

Prepared By

Faheem Mustafa FA07-BBA-089

ImranZubair Sheikh FA07-BBA-097

Amber Mushtaq FA07-BBA-007

NamraAshfaq FA07-BBA-053


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Introduction of Atlas Honda LimitedAtlas Honda Limited (AHL) is a joint venture between the Atlas Group and Honda Motor

Co. Ltd., Japan. The company was created by the merger of Panjdarya Limited and

Atlas Autos Ltd. in 1988. Both these motorcycle manufacturing concerns were

established by the Atlas Group. In addition, a third concern, Atlas Epak Ltd. was taken

over by the Government of Bangladesh in 1971 after the fall of Dhaka. AHL

manufactures and markets Honda motorcycles in collaboration with Honda Motor

Company. Honda motorcycles are by far the largest selling motorcycles in the country

with an unmatched reputation for high quality, reliability and after-sales-service

Vision

Market leader in the motorcycle industry, emerging as a globally competitive centre ofproduction and exports.

Mission

A dynamic growth oriented company through market leadership, excellence in qualityand service and maximizing export, ensuring attractive returns to equity holders,rewarding associates according to their ability and performance, fostering a network ofengineers and researchers ensuing unique contribution to the development of theindustry, customer satisfaction and protection of the environment by producing emissionfriendly green products as a good corporate citizen fulfilling its social responsibilities inall respects.

QualityPolicy

y Commitment to provide high quality motorcycles & partsy Right work in first attempt and on timey Maintain and continuously improve quality

y Training of manpower and acquistion of latest technologyy Safe, clean and healthy enverionmenty Market leadership and prosperity for all


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OPPORTUNITIES

5S CONCEPT

New concept of 5S is an opportunity for company to develop. Withthis new concept

company has introduced two new S other than sales,spare parts and service. These

are special sales and second hand sale.

According to this new idea dealers will help the customers to replace theirsecond hand

motorcycle with new one and customers can get motorcycle oncredit as well.

POOR QUALITYOF CHINESE BRANDS

Chinese brands that are available in the market are not comparablewith HONDA

motorcycle in quality terms. So the poor quality of Chinesebrands is an opportunity for

the company as the company believes thatpeople using Chinese brand will eventuallyswitch back towards HONDAbecause of relatively poor quality of Chinese brands.

GOVERNMENTRULE OF LOCALIZATION

Recently government of Pakistan has passed a rule for the motorcycleindustry in

Pakistan. According to this rule, within few years only thatmotorcycle company will be

able to sell their brands which will localize itsproduction at a rate of 5% to 10 % each

year. HONDA has localized its production up to 89% till now. So the company is leading

the industry in this regard. This is an opportunity for company as it has more

government support because of this reason (localization).

y Growing motorcycle market Estimated bikes 500,000 by the end of

2007compared to 300,000 in 2005/2006

y Customers realizing quality matters, as problems are already cropping up in

newentrants models

y Initiatives and proposals in process for coping with increased demand of bikes

y Newer segments introduced with entry of new models, design, which still have

huge potential for growth


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THREATS

MARKET CONDITIONS OFKARACHI

Karachi is most populated city of Pakistan. So it is a huge market for the company. But

now a days snatching of new HONDA motorcycle is very common in Karachi. Because

of this reason people are reluctant to buy new motorcycle. So it is a great threat for the

company.

NEW CHINESE BRANDS

There are more than 15 Chinese brands of motorcycle available in the market. These

are competing HONDA in price terms very badly. So it is a threat for the company.

y Many new features inherent in latest bike models increasing customer

expectations a great deal for the future.y Crucial economic conditions of Pakistan can lead to the decreased sales.

y WTO (World trade Order) opening local markets for global competition

y Competitors launching newer models with stress on reduced price for our price

sensitive economy proving serious threat in near future

y Theft and snatching of bikes increasing, reaching 2500 bikes in period of

January-May 2007.


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References

Atlas Honda (http://www.atlashonda.com.pk/index.php)

the external assesment

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