Nameera Aslam

 Knowledge Management and Information Systems (KMIS) [Name of Student] [Name of Institute] [Date] [Submitted to:] Table of content 1.Introduction4 2.Selection of an Organization for Assessment4 2.1 Business objective4 2.2 Business overview5 2.3 Corporate Structure5 2.4 Business Model6 3.External factors affecting the organization6 3.1 SWOT analysis7 3.1.1 Honda’s Strengths7 3.1.2 Honda’s Weaknesses7 3.1.3 Honda’s Opportunities8 3.1.4 Honda’s Threats8 3.2 Porter Five forces analysis9 3.2.1 Bargaining power of customers9 3.2.2 Bargaining power of supplier9 3.2.3 Threat from new entrants10 3.2.4 Threat from substitute products10 3.2.5 Competitive rivalry among the existing brands11 3.3 Pestle tool11 3.3.1 Political factors11 3.3.2 Economic factors12 3.3.3 Social factors12 3.3.4 Technological factors12 3.3.5 Environmental Factors13 3.3.6 Legal Factors13 4.Appropriate Management Information system for Honda13 4.1 Human Resource MIS14 4.2 Honda’s Human resource- Management information system need’s14 4.3 Impact of HR- Management information system15 4.4 Reflection on the implementation of the system15 4.5 Recommendation for future development16 5.Key management implementation challenges16 5.1 Ensuring Data Security16 5.2 Complying with legal Requirements16 5.3 Accuracy of information17 5.4 Resistance in change17 6.Conclusion17 7.  References18 1. Introduction        Knowledge is an important asset to the survival of the organization. Knowledge management is beneficial for employees as well as the organization, the information collected help the organization makes an informed decision. For example, knowledge about business strategies. Knowledge management systems develop to collect information used to improve business efficiency and productivity by targeting the new customer and get customer satisfaction. In this article, we going to analyze the company’s internal and external factors affecting its performance, also we going to discuss different models like, SWOT, portar five forces, and pestle to analyze company’s macro environment. And we going to implement the management information system in the company to enhance its productivity (Xiaojun, 2017) 2.  Selection of an Organization for Assessment                  Honda which is the largest producer of motorcycles is selected as a subject study to have a detailed discussion on how Honda is advancing with the help of using the Management information system. 2.1 Business objective                  There are two scopes or visions constitute by the Honda Company. The first is the advancement of mobility and the second one is the value creation for people’s daily lives. The vision statement of Honda limited constituted that,” serve the people worldwide with the joy of expanding their life’s potential (Badhon, 2019)”. For the fulfillment of the vision, Honda creates the environment as their obligation of its objective as: Honda aims to focus on the three areas to provide people with the joy and freedom of mobility, namely mobility, robotics, and energy solution, to make their lives better. Honda aims to offer quality products and services, so their customer can optimize their daily life with the help of technology. Honda is also contributing to the carbon-free and collision-free society by investing more in advanced technology.  Honda is aiming to grow its global models strong so that its product can be available anywhere in the world, it will help them to target more customers all over the world.             2.2 Business overview                  In 1946 the engineer Honda Soichiro founded the Honda Technical Research Institute to develop the Honda engine, later he incorporated The Honda Motor Company, Ltd on September 24, 1948, and by 1949 Honda start distributing its motorcycle. Honda conducts its operation in Japan, North America, Europe, and Asia. There are various products offer by Honda are Automobile, Motorcycle, Financial, and power production. Honda markets it’s through independent local dealers. Its manufacturing facilities are located in Japan, The United States, Canada, Mexico, the United Kingdom, Turkey, Italy, France, China, India, Indonesia, Malaysia, Thailand, Vietnam, Argentina, and Brazil. Honda offers financial aids services to its customer and dealers through finance subsidiaries in various countries. The services of these subsidiaries include retail lending, leasing services, and other financial services (Jothi, 2015).        2.3 Corporate Structure                  Honda is looking forward to making some changes in its corporate structure to enhance the ongoing activities and further accelerate to strengthen its automobile business by manufacturing strong or quality products, which is essential for business growth. Previously, Honda business where each area of sales, engineering/production, development, and buying/ purchase department work in collaboration. In April 2020 Honda implemented some changes in its organizational structure, Honda shifts from collaboration to a unified structure that integrated sales, engineering/ production, development, and buying/purchase department. This change will provide a big picture view based on the entire automobile business. And with unified structure Honda will advance its monozukuri with effective operation which involve whole process from development till mass production (Steers, 2017). (figure 1: Corporate Structure) 2.4 Business Model                  One of the proudest things about Honda is its Research and development system. Focusing the durability, reliability, and basic performance to establish a creative and innovative idea. As an automobile company and power company, Honda is also concern about environmental and social issues, also with the increase in oil prices, depreciation, and political recession Honda is innovating new possibilities for its customer in near future. The other thing which contributes to the success of Honda is its Manufacturing and distributing system. Honda has also established its strong global characteristics which help Honda to operate around the world (Ciulli, 2019) 3. External factors affecting the organization                  There are some controllable and uncontrollable, internal and external factors affecting the organization which can be identified with the help of various tools and analysis. Following are different analyses to find out the external factors which are affecting the Honda Motor Company’s operation (Tran, 2019). 3.1 SWOT analysis                  SWOT analysis is a useful framework to find out the company’s strengths, weaknesses, threats, and opportunities. It helps the company to find out about activities in which they are performing well and where they are lacking, also what’s upcoming threats the company is going the face to take appropriate action regarding those threats and the opportunities available for the company to get advantage from them (Lestari,- Honda’s Strengths The core product of Honda motor company is the engine, all business operations around the engine, and Honda is the largest manufacturer of the engine around the world. Honda is also very experienced in manufacturing the quality engines Honda motor company operate in diversified products. There are 4 main different divisions like Motorcycle, automobile, power product, and financial services. Honda has the dominant in motorcycle and engine leading industry and covering a wide range of market areas.  Honda is a strong brand equity and has more brand loyal customers around the world. 3.1.2 Honda’s Weaknesses  55.6% of the revenue of the Honda company is generated from the US and Canada, which means that Honda is highly dependent on North America, that’s why Honda’s performance affected by the negative changes in North America. The cost of the structure is very high and expensive. Low investment in research and development is leading towards fewer creative and innovative products. 3.1.3 Honda’s Opportunities  Many governments around the world introducing policies reducing greenhouse gas emissions, environmental initiates will increase the cost of production. Honda has the opportunity to take advantage of introducing a hydrogen fuel cell car model. As the high portion of Honda revenue depends on the US and Canada, with an increase in the economy of the US, and the citizen is investing more in the automobile have an opportunity to capture more market. The automobile market is highly affected by the timing and frequency of new model releases, Honda has an opportunity to meet customer expectations because Honda is well-positioned to do this. 3.1.4 Honda’s Threats Honda is facing the ever increased competition from Chinese manufacturers. Company international rivalry like, Toyota, Ford, Hyundai all have heavy budgets. Now the google is also introducing self-driving cars are also a major threat for automobile companies. Honda is a japan based company but the major portion of its revenue comes from international markets, which means Honda has to covert its revenue in the Japanese yen. But the exchange rate is volatile which is also a threat for the Honda Company. Most of the manufacturing plant of Honda Company is facilities in the countries where there are high rate natural disasters like Japan, Thailand, and Indonesia. 3.2 Porter Five forces analysis                     Micheal E poster’s five forces model is a useful tool to analyze the strength of the company and how the company is positioned against the competition in the market (Yunna, 2014). 3.2.1 Bargaining power of customers       With the increased competition in the automobile market and the availability of substitute products. The bargaining power of customers is high because, in the fast-moving world, the customer has all the information on their fingers tip which is needed in making the informed decision regarding the purchasing. Also, the availability of various product and substitute with wide prices range, from lower price to luxury cars, contribute to increasing the bargaining power of the customer (Ariffin, 2018). How Honda could confront this force? Honda can confront this force by providing a unique product to its customers. Providing quality customer services and meeting the expectation of the customers.  3.2.2 Bargaining power of supplier       Each product of Honda is made of 25000 to 30000 parts, that’s why Honda has formed a partnership with several suppliers to supply quality raw material. With a large number of suppliers, the bargaining power of Honda is high. Honda’s bargain power is also high because it is a financially strong company and operating internationally. Honda is brand it is also a positive point which contributes to its bargain power because it has a reputational image in the market and many suppliers are willing to work with Honda Company (Porter, 2014). How could confront this force? By developing the supply chain with a large number of suppliers. Using the diversified raw material in its product. 3.2.3 Threat from new entrants       Entry in the automobile company is very difficult due to its required heavy financial investment for infrastructure as well as supply and distribution network. It also requires investment in skilled labor and technology which will also be very large. To compete with existing companies, the new entrants need to invest in the marketing scheme and build trust customers which is also a barrier for new entrants, that’s why the threat from new entrants is low in this case (Muniandy, 2020). How Honda could confront this force? By targeting more customer and gaining the trust of the customer, it will make a difficult for new entrants to survive in the market Investing more in advanced technology and marketing departments to increase the profitability of the company. 3.2.4 Threat from substitute products       Public transport is act as the substitute for Honda vehicles and also other products are available which act as a substitute for the Honda product. But the overall threat from the substitute product is moderate because some factors play a vital role in moderating this threat (Musonera, 2019); Customer trust and loyalty. Brand and reputational image in the market. Marketing scheme and capabilities. Diversified product range. How Honda could confront this force? Investing in cost-efficient products. Developing a unique product with low prices  3.2.5 Competitive rivalry among the existing brands             In automobile markets, there are many competitors exist like Ford, Toyota, and Hyundai giving tough competition to Honda. As they are investing more in marketing, innovation, and research and development department which plays a vital role in the growth of any business. Honda is an innovative brand and quite popular in the global market but the competitors like fords, and Toyota making the situation intensely competitive. Hence the competitive rivalry among the existing brands is high (Galvin, 2020). How Honda could confront this force? Investing in research and development system Investing more in marketing Meeting the expectation of customer to target more customers  3.3 Pestle tool                  Pestle analysis is the tool to analyze the macro environment of the organization. PESTLE stands for- Political, Economic, Social, Technological, Environmental, and Legal factors affecting the macro environment of Honda Motor Company (Shatskaya, 2016). 3.3.1 Political factors       Honda motor operating in different countries around the world exposing itself to different political policies and environments which affect the profitability of the company. Many governments have put the limitation on the number of using the car to control the toxic gases, so the company is bound to manufacture or sold limited numbers of cars. The government also planning to launch fuel-free cars to protect the environment. Honda has to invest more in the research and development department to survive in the industry (Hui, 2016). 3.3.2 Economic factors       Due to the increase in oil prices, the demand for petroleum cars is decreasing day by day, Honda has the advantage to invest in hybrid technology. The demand for automobiles is increasing the china, that’s why Honda motor company has the advantage to expand its business in China to earn a handsome amount of revenue from it. Another economic factor that affects the Honda Company is the exchange rate, Honda is japan based company but 88% of the revenue earned internationally which means Honda has to convert its revenue into the Japanese currency, as the exchange rate of the currency is volatile (Epstein, 2014). 3.3.3 Social factors       As eco-friendly cars are in trend and customer is demand is increasing for the eco-friendly cars and customers are preferring the local brand to Honda such UK citizen. Honda is a global organization, operating worldwide which’s why they prefers all their communication in English because English is an international language, known by everyone. As the demand for personalized cars is increasing, different people have different tastes in cars. Honda is developing cars which can easily be modified in accordance with customers’ demand (Silventoinen, 2017). 3.3.4 Technological factors       Honda is efficient and eager in advancing its technology, investing in the research and development department. It’s innovative and technologies not only benefits its customer and also increase the sales of the product. As the prices of oil are increasing constantly in different that’s why investing in the fuel economy and eco-friendly technology will grow the sales of its product. This fast-moving world highly relies on a Global positioning system while traveling, so Honda in its newest models had to install a satellite Navigate system (Ozawa, 2018). 3.3.5 Environmental Factors       As the engine is the main part of any automobile product because they tend to behave according to the climate. Honda is highly efficient in the quality engines and engines suitable to the environment in different countries. Honda is investing in hybrid technology which will produce eco-friendly products, and Honda should further invest in Research and development department to improve its functionality of the company (Shu, 2017). 3.3.6 Legal Factors             Similar to political policy Honda is also facing limitations from the laws that restrict the production of cars due to the increase in global warming. As Honda is operating in different countries, different government demands different taxes affecting the profitability of the company (Cuaresma, 2015). 4.  Appropriate Management Information system for Honda                  In the modern economy, besides maintaining the profit of the company, Honda has also grown its emphasis on the Management information system. Businesses without information systems failed to survive in the competitive environment and wasting their human resources. Honda has also implemented appropriate MIS in order to be competitive in the automobile market (Tummers, 2020). 4.1 Human Resource appropriate Management information system                  Human resources help in recruiting and selection of candidates. Human Resources is also responsible for reviewing the needs of workers, training, and the performance of the assignment, hiring procedure, and workforce rules. The role of Honda’s HR management information system is to look at the MIS and also deal with internal and external information. Moving to the information system the information of the internal work of the company can be easily available from Honda’s company network. The management information system is different from the information system, as information only read the collected data but the data processing system help in recording transaction and processing the transaction of the company. This MIS helps the manager to evaluate the data to make effective decision making, it also helps collect external data like (Noe, 2017): The interest of different age group people. Information regarding the competitors and their future course of action. Economic and social factors. 4.2 Honda’s Human resource- Management information system need’s               In Honda Company, Human resource-Management information system help to collect the business information but also help to save the time of employees. Where, in the past when data were dealt with physically, now HR MIS quickly and effectively analyze the data after putting the data into computer through data CPU. Honda is a global organization operating in different countries that’s why it is important to implement the HR MIS in the organization it will help to manage and collect various information like, interest of different age groups, environmental and social factors, and other legal factors. In the modern economy, where technology is advancing highly skilled labor is required HR in Honda plays a vital role in recruiting and training the employees. It is also important to allocate the employees in the department in accordance with respective skills for better performance (Chelladurai, 2018).   4.3 Impact of HR- Management information system                  The result of implementing the HR MIS in the Honda Company increases the efficiency of the work in the company. Information of the employees is available more easily which helps the Honda’s HR department to allocate the employees in a different department in accordance with their qualification. This will result in quality performance at the workplace. Also the availability of numerous business information help to make an effective decision regarding the business. The Honda’s HR department is also responsible for arranging training program for the employees to keep them updated with the changing world, availability of employees’ information on the software with updated data makes it easier for the HR department to decide on whom to provide training. Thus this process also increases the efficiency of the employees (Zhao, 2018). 4.4 Reflection on the implementation of the system                  In the past Honda’s HR department hide from the company’s employees but now the modern Honda’s HR department needs to understand that engaging the employees on day to day basis helps to grow the business. Implementing the HR MIS benefit the Honda Company in various ways like it increases the engagement of employees on day to day basis, it help to advertise or post multiple jobs on a different forum to get qualified employees effortlessly, it not only help you hire the best employees but also improves the chances to retain them for long period, it also helps to keep updated with the employees’ performance. There are some other benefits of implementing HR MIS in the Honda Company (Olson, 2018): Help to maintain the routine task of the HR department. Monitor the key performance indicators, key performance indicator is measure how the employees working effectively to achieve the objective of company. Reduce the labor cost of the HR department. Help to collect data, evaluate, preparing report more effectively and quickly. Minimize the arithmetic errors or human error. Automatic tracking of data and encouraging the employees to make decision on the basis of information available in the HRIS system. Increases the moral of staff. HRIS system eliminate the paper work that are much slower and increase the chances of errors.                                                                                      4.5 Recommendation for future development                  To prosper the effective implementation of HR MIS, several recommendations need to be fulfilled within the company. As implementing new software within the company, the company should arrange a training program for the HR department to get familiar with the software. As the present HR department is not flexible enough to contribute to the enhancement of business however HR MIS should be flexible enough to contribute to the development of the business, and also flexible enough to analyze the data to provide relevant information regarding the external factors and the information of the employees. As many employees fear the changes in the organization because it makes them insecure about their jobs, better communication should be occurred to make them comfortable with the change (Arias, 2018).  5. Key management implementation challenges                 There are some various challenges face by the Honda Company while implementing the human resources management in the company (Hullavarad, 2015): 5.1 Ensuring Data Security                  Some business information is confidential and will cause the company to bear the losses if somehow information gets a leak. That’s why when implementing the new software company should ensure the security of data, and also understand what security management systems are in place. The company should also secure the data against the password and ensure only authorized parties have passwords or access sensitive information (Zareapoor, 2014).       5.2 Complying with legal Requirements                  Honda is an internationally operating business, has several legal requirements of different countries to adhere to. And failing in understanding the legal requirement will cause the company to bear the penalties (Pesci-Anderson, 2014).       5.3 Accuracy of information                  Accuracy of information is also a challenge faced by the company when implementing the new system. Accuracy of information can only ensure by applying appropriate formulas and cross-references are used to analyze the data. But the company using the system for the first time is difficult to ensure the accuracy of the data (Kamen, 2014).          5.4 Resistance in change                   In some cases, employees resist the change because they get insecure about their jobs it is also the challenge faced by the company when implementing the new system. But this can be solved by applying the appropriate change management skills (Simoes, 2014).  6. Conclusion                  To wind up, the Knowledge management information system plays a vital role in increasing the efficiency of the company in the competitive edge. By adopting knowledge management, Honda can increase its performance and targeting a wide range of markets to survive in the market. Implementing the Human resource management in the Honda company help to evaluate or analyze the data more easily and there are some challenge which Company need to focus relating to macro-environment factors and adopting MIS. But after implementing of successfully HR MIS, the company can get benefits lot from new system because it helps to increase the efficiency and profitability of the company (Abualoush, 2018). 7.  References    Arias, M., Munoz-Gama, J., Sepúlveda, M. and Miranda, J.C., 2018. Human resource allocation or recommendation based on multi-factor criteria in on-demand and batch scenarios. European Journal of Industrial Engineering, 12(3), pp.364-404. Ariffin, A.S. and Sahid, M.L.I., 2018. Competitiveness analysis of ASEAN automotive industry: a comparison between Malaysia and Thailand. Journal of Science, Technology and Innovation Policy, 3(2) Badhon, M., 2019. Analysis on Market and Business Strategy of Honda, DHS Motors Limited Chelladurai, P. and Kerwin, S., 2018. Human resource management in sport and recreation. Human Kinetics Ciulli, F. and Kolk, A., 2019. Incumbents and business model innovation for the sharing economy: Implications for sustainability. Journal of cleaner production, 214, pp-. Cuaresma, C., Lagrimas, L., Perez, A. and Atento, R.G.O., 2015. STRATEGY INNOVATION FOR HONDA HIGH–END CARS. Laguna Business and Accountancy Jounal, 1(2), pp.185-200. Epstein, M.J. and Buhovac, A.R., 2014. Making sustainability work: Best practices in managing and measuring corporate social, environmental, and economic impacts. Berrett-Koehler Publishers Figure 1 (Corporate structure): https://global.honda/newsroom/news/2020/c200218beng.html#:~:text=Currently%2C%20Honda's%20automobile%20business%20is,autonomy%20and%20works%20in%20collaboration. Galvin, P., Burton, N., Singh, P.J., Sarpong, D., Bach, N. and Teo, S., 2020. Network rivalry, competition and innovation. Technological Forecasting and Social Change, 161, p.120253. Hui, E.S.I. and Chan, C.K.C., 2016. The influence of overseas business associations on law-making in China: A case study. China Q., p.145. Hullavarad, S., O’Hare, R. and Roy, A.K., 2015. Enterprise Content Management solutions—Roadmap strategy and implementation challenges. International Journal of Information Management, 35(2), pp.260-265. Jothi, K. and Kalaivani, P., 2015. A Study on Financial Performance of Honda and Toyota Automobile Company a Comparative Analysis. Journal of Progressive Research in Social Sciences, 2(1), pp.33-35 Kamen, D., Biasi, J.J., Newman, R.M., Pribyl, E.L., Kerwin, J.M. and Gupta, R., Deka Products LP, 2014. Computer-Implemented Method, System, and Apparatus for Electronic Patient Care. U.S. Patent Application 14/137,421 Lestari, T.I. and Yunita, L., 2020. The application of SWOT analysis as a basis for determining marketing strategies. Enrichment: Journal of Management, 10(2, May), pp.25-29. Muniandy, A.M., Kee, D.M.H., Izwan, S., Imran, M., Al-Amin, A.A., Kumar, S. and Singh, S., 2020. The Key Success Factor: A Study of Honda Motor. Journal of the community development in Asia, 3(2), pp.67-77 Musonera, E. and Cagle, C., 2019. Electric Car Brand Positioning in the Automotive Industry: Recommendations for Sustainable and Innovative Marketing Strategies. Journal of Strategic Innovation and Sustainability, 14(1). Noe, R.A., Hollenbeck, J.R., Gerhart, B. and Wright, P.M., 2017. Human resource management: Gaining a competitive advantage. New York, NY: McGraw-Hill Education. Olson, E.M., Slater, S.F., Hult, G.T.M. and Olson, K.M., 2018. The application of human resource management policies within the marketing organization: The impact on business and marketing strategy implementation. Industrial Marketing Management, 69, pp.62-73. Ozawa, A., Kudoh, Y., Murata, A., Honda, T., Saita, I. and Takagi, H., 2018. Hydrogen in low-carbon energy systems in Japan by 2050: The uncertainties of technology development and implementation. International Journal of Hydrogen Energy, 43(39), pp-. Pesci-Anderson, J., Carignan, M., Lahue, L.H., McCauley, M.B., Stelter, K.A., Telychka, L.T. and Vollmar, W.R., Hartford Fire Insurance Co, 2014. System and method for compliance and operations management. U.S. Patent 8,914,299 Porter, M.E. and Heppelmann, J.E., 2014. How smart, connected products are transforming competition. Harvard business review, 92(11), pp.64-88. Shatskaya, E., Samarina, M. and Nekhorosheva, K., 2016. PESTEL analysis as a tool of strategic analysis in international markets. SCOPE ACADEMIC HOUSE B&M PUBLISHING, p.47 Shu, E. and Lewin, A.Y., 2017. A resource dependence perspective on low-power actors shaping their regulatory environment: The case of Honda. Organization Studies, 38(8), pp-. Silventoinen, K., Jelenkovic, A., Sund, R., Yokoyama, Y., Hur, Y.M., Cozen, W., Hwang, A.E., Mack, T.M., Honda, C., Inui, F. and Iwatani, Y., 2017. Differences in genetic and environmental variation in adult BMI by sex, age, time period, and region: an individual-based pooled analysis of 40 twin cohorts. The American journal of clinical nutrition, 106(2), pp.457-466. Simoes, P.M.M. and Esposito, M., 2014. Improving change management: How communication nature influences resistance to change. Journal of Management Development Steers, R.M. and Sánchez‐Runde, C.J., 2017. Culture, motivation, and work behavior. The Blackwell Handbook of Cross‐Cultural Management, pp.190-216 Tran, T. and Nguyen, N., 2019. Identify factors affecting business efficiency of small and medium enterprises (SMEs): Evidence from Vietnam. Management Science Letters, 9(12), pp-. Tummers, J., Kassahun, A. and Tekinerdogan, B., 2020. Reference architecture design for farm management information systems: a multi-case study approach. Precision Agriculture.  Xiaojun, Z., 2017. Knowledge Management System Use and Job Performance: A Multilevel Contingency Model. MIS quarterly, 41(3). Yunna, W. and Yisheng, Y., 2014. The competition situation analysis of shale gas industry in China: Applying Porter’s five forces and scenario model. Renewable and Sustainable Energy Reviews, 40, pp.798-805. Zareapoor, M., Shamsolmoali, P. and Alam, M.A., 2014. Establishing safe cloud: Ensuring data security and performance evaluation. International Journal of Electronics and Information Engineering, 1(2), pp.88-99. Zhao, Y., 2018. Managing Chinese millennial employees and their impact on human resource management transformation: an empirical study. Asia Pacific Business Review, 24(4), pp.472-489