ATLAS HONDA

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					                                          12/2/2010




Managerial                      ATLAS HONDA
Economics                       LIMITED




      IN RESPECT OF | SIR KHURAM
  Prepare By | Imran Yousaf (BBD-07-21)




  B.Z.U DERA GHAZI KHAN CAMPUS
    December
      2, 2010                      ATLAS HONDA LIMITED




ATLAS HONDA
    Atlas 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. The Company also
    manufactures various hi-tech components in-house in
    collaboration with leading parts manufacturers like Showa
    Atsumitech, Nippon Denso and Toyo Denso. Honda
    motorcycles are by far the largest selling motorcycles in
    the country with an unmatched reputation for high
    quality, reliability and after-sales-service.

    AHL has undertaken to develop local manufacturing
    capabilities to the highest, economically feasible level.
    While a major role in localization has been assigned to
    vendor industries, Atlas has the country‘s largest in-
    house manufacturing capability at its Karachi and
    Sheikhupura plants. To support the production facilities,
    the company has established an R&D wing and tool making
    facilities through CAD/CAM which are growing rapidly in
    size and function as the company expands. Atlas has
    managed to execute 12 Joint Venture/Technical Assistance
    Agreements between local vendors and foreign
    manufacturers for transfer of technology. Besides, Atlas
    has directly executed 9 Joint Venture/Technical
    Assistance Agreements other than Honda.

    AHL management is striving to modernize company
    operations by adapting applicable aspects of research and
    theory and more specifically, Honda‘s unique philosophy
    of hard/soft technologies to the realities of Pakistani
    conditions. Company management structure, systems and
    processes are changed according to the demands of the
    customer, growth and new technology. Efforts are being
    made to develop participation at all levels of personnel
    in decision-making and a substantial and effective
    delegation has been established at levels where
    applicable. Various participation programs such as ‗Ala
    Mayar‘ Quality Circles movement, launched in 1985, are
    strongly encouraged to allow constructive self-expression


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                  2, 2010                      ATLAS HONDA LIMITED

                and teamwork. The Company training and development
                programs encourage all members to develop themselves and
                contribute to their full potential.




                AHL is playing a pioneering role in creating conditions
                for easy and confident use of motorcycles all over the
                country. A vast and growing network of over 1600 sales
                service and spare parts dealers has been established. In
                order to back up this system, Atlas has set up Warranty &
                Training Centers (WTC) in Karachi and Lahore which
                provide several courses of varying duration and
                complexity for motorcycle mechanics and users each year.
                Mobile training facilities take the latest know-how,
                technology and maintenance of motorcycles to major rural
                and urban centers around the country.

                Annual Production Capacity               600,000

                Authorized Capital         1 Billion (rupees)

                Paid Up Capital         625.52 Million




KARACHI PLANT


                Company mother plant is based in the city of lights and
                provincial capital of Sindh, The Karachi city. It is
                located at F-36, Estate Avenue, S.I.T.E. Karachi. Atlas
                Group signed technical agreement with Honda in 1963 and
                plant started commercial production subsequently. Plant
                spread over an area of 5 acres. In 1964, production began
                with 7 motorcycles per day. Now plant production has
                reached to 300 units in a day. Plant manufactures CD 70
                only.

SHEIKHUPURA PLANT
                Another plant is situated in Sheikhupura city, Punjab. It
                is located at 26-27 KM Lahore-Sheikhupura Road
                Sheikhupura. The plant was built in 1981 and spread over
                an area of 27 acres with the establishment of modern and
                synchronized 500K plant in 2006. The plant manufactures
                all four models i.e. CD 70, CD 100, CG 125 and CG 125
                Deluxe.




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                     2, 2010                       ATLAS HONDA LIMITED

EXPORT


                      Bangladesh
                      Afghanistan



REGIONAL OFFICES


                   Lahore: 1 Mecloed Road Lahore-54000 [ (042) 111-111-245,
                   37225015-17, 37233515-17 ] Rawalpindi: 60-Bank Road,
                   Saddar [ (051) 5120494-6, 5120497 ]



                   Multan: Azmat Wasti Road Multan-60000 [ (061) 4540054,
                   4540028, 4571989 ]

                   Rahim Yar Khan: Atlas Honda Limited, 4-B Zamindara Colony
                   [(068) 5888809 ]

VISION


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

MISSION


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

QUALITY POLICY


                      Commitment to provide high quality motorcycles & parts
                      Right work in first attempt and on time
                      Maintain and continuously improve quality
                      Training of manpower and acquistion of latest
                       technology
                      Safe, clean and healthy enverionment

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                     Market leadership and prosperity for all
                     Brand

WHAT IS HONDA?


                 Honda is an entity that realizes the dreams of
                 individuals and spreads joy to people. Honda's
                 philosophy, unique corporate culture, pursuit of
                 challenges that fulfill individuals' dreams and variety
                 of products and activities born of challenges will remain
                 the foundation of the Honda brand. We will continue
                 building on our history of realizing people's dreams.

HONDA'S DRIVING FORCE


                 The expectations and appreciation of people around the
                 world for our dreams. People see Honda as pursuing its
                 dreams and always remaining a step ahead of the world.
                 This image and the people‘s appreciation of our outlook
                 will continue to be the driving force of the Honda brand.



HONDA'S GOAL IN BRANDING


                 To create a brand that is supported by people‘s
                 expectations and appreciation.

GLOBAL BRAND SLOGAN


                 Everyone has a dream, some goal or activity that gives
                 their life a deeper meaning and sparks passion. When we
                 pursue a dream, we feel empowered. This power, in turn,
                 connects us to others who share the same dream. It gives
                 us the strength to overcome great challenges and inspires
                 us to spread the joy of our dreams to others. Ultimately,
                 the power born of a dream is a creative force, capable of
                 producing revolutionary ideas. Honda encourages all is
                 associates to pursue their dreams. That is why we say we
                 are a company built on dreams. In the new century, the
                 power of Honda's dreams will continue to lead new
                 insights and technologies in automobiles, motorcycles,
                 power products, parts and other fields of mobility that
                 are just beginning to be imagined. Dreams are the very
                 essence of Honda. The dreams of our associates,
                 customers, and supporters make Honda what it is today.
                 Our highly original ideas and free thinking have

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                    2, 2010                         ATLAS HONDA LIMITED

                  surprised the world on many occasions. Honda will
                  continue to be Honda in the 21st century as long as we
                  have our dreams and original thinking. We will keep on
                  dreaming and challenging ourselves to realize our
                  dreams.‖ What will we come up with next?‖ We will
                  continue creating exciting products and realizing
                  people‘s dreams and expectations. Our slogan For Honda to
                  remain Honda, and for everyone to realize their
                  aspirations, we must believe in "The Power of Dreams".

MANAGEMENT PROFILE


AHL BOARD


                  Chairman Yusuf H. Shirazi

                  Chief Executive Officer     Saquib H. Shirazi

                  Directors Masahiro Takedagawa

                  Nurul Hoda

                  Sanaullah Qureshi

                  Sherali Mundrawala

                  Hisao Kobayashi

                  Koji Takamatsu




STRATEGIC GOALS


Customers


                  Our customer are the reason and the source of our
                  business. It is our joint aim with our dealers to ensure
                  that our customers enjoy the highest level of
                  satisfaction from use of Honda Motorcycles.

QUALITY
                  To ensure that our products and services meet the set
                  standards of excellence.




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                        2, 2010                      ATLAS HONDA LIMITED

LOCAL MANUFACTURING
                      To be the industry leader in indigenization of
                      motorcycles parts.

TECHNOLOGY
                      To develop and maintain distinct business advantages
                      through continuous induction of improved hard and soft
                      technologies.

SHAREHOLDERS
                      To ensure health and viability of business and thus
                      safeguarding shareholders interest by maximizing profit.
                      Payments of regular satisfactory dividends and adding
                      value to the shares.

EMPLOYEES
                      To enhance and continuously up-date each member's
                      capabilities and education and to provide an environment
                      which encourages practical expression of the individuals
                      potential in goal directed team efforts and compensate
                      them attractively according to their abilities and
                      performance.

CORPORATE CITIZENS
                      To comply with all government laws and regulation, to
                      maintain high standard of ethics in all operations and to
                      act as a responsible members of the community.

FOREWORD CHAIRMAN


                      The foundation of the Atlas Group was laid in 1962 with
                      the establishment of Shirazi Investments (Pvt) Limited
                      with a capital of half a million rupees and three men
                      doing business in trading shares and real estate. Today
                      Atlas is a diversified group dealing in engineering,
                      financial services and trading. It consists of eight
                      public limited companies out of which six are quoted on
                      the Stock Exchanges in Pakistan, and six private limited
                      companies. Atlas shareholder equity now stands over 25
                      Billion Rupees; assets have increased to over 60 Billion
                      Rupees; personnel strength is over 7000 and annual sales
                      have crossed 60 Billion rupees. The group paid taxes of
                      Rs. 15 Billion over 2% of the total government revenues.

                      Yusuf H. Shirazi

                      Founder & Chairman


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                  2, 2010                      ATLAS HONDA LIMITED

DEALERS

                There are more than 1100 dealers serving customers
                ranging from only sales centers to 5S shops all over the
                Pakistan.


SAFETY & CARE

                Atlas Honda has always emphasized on the safety and care
                of their customers. Some of the safety points are
                discussed below;

                Good Rider Attitude: Obey Traffic rules, Responsible,
                Courteous, Considerate, Patient.

                Obey Traffic Rules: Traffic rules and regulations are
                formulated to ensure smooth and safe interaction for all
                road users. Be you a cyclist,

                pedestrian, motorcyclist or a driver of a motorcar or
                heavy vehicle, you should read and understand the
                provisions in the traffic rules and regulations, and
                comply with them when you are on the road. The
                observation and compliance of these rules ensure the road
                is safe and the traffic moves efficiently and without
                hindrance

                Courtesy and Consideration: By riding your motorcycle on
                the road in accordance with the traffic rules and
                regulations, you will be playing your part in making the
                roads safer for all. You can also help to make riding,
                driving, or walking on the road more pleasant and
                enjoyable by always exercising courtesy and consideration
                for others.

                Consequence of traffic offence and accident: Traffic
                offence is a violation of the traffic rules, which is
                likely to endanger others. That is why offenders have to
                pay a fine; to remind them of the danger or inconvenience
                caused to others, and not to commit them again. The
                degree of penalty an offender will receive will depend on
                the gravity of the traffic violations. If the violation
                results in someone being killed, the consequences will be
                more serious. A traffic accident is an unhappy
                experience. It causes suffering and loss of lives. The
                motor vehicle, be it a large vehicle, motorcar or
                motorcycle when not properly driven can be a killing
                machine. Unlike the driver of a motorcar or lorry, who is
                protected by the shell of the vehicle‘s body, the
                motorcyclist is not. Thus even in a minor accident, the
                rider is likely to be injured.


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                    Insurance: It is a requirement by law to insure your
                    vehicle at least against third party risks and
                    compensations. Therefore it is important for you to
                    ensure that your insurance policy is valid before riding.

                    The Driving License: The authority for the insurance of
                    driver license in Pakistan is the Traffic Police
                    Department. The driving license has on it,

                    the personal particulars of the holder and the class or
                    classes of vehicle the driver/rider is permitted to
                    drive, as well as its validity period.

                    Helmet: It is a legal requirement for every motorcyclist
                    and pillion rider to wear securely an approved safety
                    riding helmet


PROMOTION


REAL WORLD SAFETY


                    Honda‘s quest for safety is not limited to the needs of
                    car drivers and motorcycle riders. Our total commitment
                    to   ―Safety  for   Everyone‖   extends  to   passengers,
                    pedestrians, occupants of other vehicles, and everyone on
                    the road. Honda will continue to develop and refine its
                    innovative technologies to realize a safer society.

ENVIRONMENTAL POLICY


                    Being responsible member of society considers the
                    preservation of the global environment as a crucial
                    concern. Our environmental philosophy is firmly based on
                    the following principles. Recognize the impacts of our
                    activities,   products  and   services  on    environment.
                    Formulate   objectives   and    targets   for    pollution
                    prevention, environmental impacts mitigation and resource
                    conservation as far as technically feasible. Operate in
                    compliance with applicable legal and other requirements
                    with the commitment to preserve global environment.
                    Create awareness and understanding about environmental
                    issues amongst our associates. Commitment to continual
                    improvement of the environmental performance and review
                    of the environmental management system to ensure its
                    suitability, adequacy and effectiveness. Keep public and
                    other interested parties informed on our environmental
                    performance, if deemed necessary.




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                    2, 2010                      ATLAS HONDA LIMITED

INITIATIVES & AWARDS

                   Honda's three decades of environmental leadership are
                  good for the environment, good for society and good for
                  business. And we have the awards to prove it.

GREEN FACTORIES


                  All major Honda plants worldwide already meet the
                  toughest international environmental management standards
                  (ISO 14001), covering a host of environmental areas, such
                  as waste disposal, water treatment and energy use. But at
                  Honda, we're too busy to rest on our laurels, even though
                  we have an advanced degree in the three R's:

REDUCE:


                   When it comes to improving our operations, Honda listens
                  to the people who know best—our own employees. Honda
                  associates have provided many of the recommendations now
                  in place that have helped reduce up to 58 percent of our
                  waste.




REUSE:


                   Raw materials used in Honda's manufacturing process are
                  not just sent to landfills—they are reused in the most
                  efficient ways possible. For example, leftover raw steel
                  from stamping is used for engine and brake components.

RECYCLE:


                  Recycling improves our bottom line while healing the
                  skyline. Honda has annually received up to $1.2 million
                  in revenue from recycling paper, cardboard and plastic
                  from Honda facilities. We have also focused on the use of
                  returnable shipping containers and the development of
                  emissions-reducing door- and truck-sealer materials.




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                      2, 2010                       ATLAS HONDA LIMITED

SWOT ANALYSIS


                    S TRENGTHS

PRODUCT


                       Brand name image
                       Smoother drive as compared to competitors
                       Market leadership – Enjoying 56% share in motorcycles.
                       Efficient performance
                       Durability/Reliability
                       Quality – ISO Certification
                       Easy availability of Spare Parts
                       Strong asset position/increased profits with each year

HIGH RESALE VALUE


                       Low maintenance costs
                       Technical expertise – Benchmarking Honda, Japan

PRICE


                       Reasonable price of genuine parts
                       Cheap maintenance
                    

PROMOTION


                       Successful Promotional campaigns via TV and Newspaper
                        channels enjoying extensive viewer ship




PEOPLE


                       Management/non-management work as a single unit, as a
                        team
                       Highly loyal, committed and motivated employees


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                    Hardworking, experienced and qualified staff
                    Technological and managerial know-how
                    Job evaluation which is totally performance based,
                     gives staff incentive to work harder each time
                    Bonuses and reward system for employees
                    Trainings given to dealers, motorcycle mechanics and
                     users



PROCESSING


                    TQM principles practiced in work processes
                    Kaizen (continuous improvement) principle in all
                     processes
                    State of art plants and equipment
                    ISO 9002 certified



PHYSICAL ENVIRONMENT


                    Frank and congenial work environment
                    Positive work climate and organization culture –
                     single code of dress supports to maintain
                     discrimination free work environment

OTHERS


                    Customer loyalty



                 W EAKNESSES

                    After sales customer service not up to the level
                     actually expected by the customer.
                    Less of a proactive approach to different matters,
                     reactive approach applied more
                    Limited investment in high technology equipment
                    Price higher than prevailing competition in market,
                     which gives customer thoughts about nearest
                     substitutes available
                    Bike launching new features as those of new entrants
                     in market
                    From customer point of view, in case brand is
                     unavailable for a long time, high pending level allows
                     customer to switch brand


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   Credit availability schemes no well managed and
    customer not informed about them
   Customer conscious of bike as a status symbol refrain
    from buying available Honda brands. It is considered
    more of a family bike



   No safety measures installed in bikes against
    snatching dilemma.



O PPORTUNITIES

   Growing motorcycle market – Estimated bikes 500,000 by
    the end of 2007 compared to 300,000 in 2005/2006
   Customers realizing quality matters, as problems are
    already cropping up in new entrants models
   Initiatives and proposals in process for coping with
    increased demand of bikes
   Newer segments introduced with entry of new models,
    design, which still have huge potential for growth
   Karachi, a segment which has tremendous potential for
    growth and profitability.



T HREATS

   Many new features inherent in latest bike models
    increasing customer expectations a great deal for the
    future.
   Crucial economic conditions of Pakistan can lead to
    the decreased sales
   WTO (World trade Order) opening local markets for
    global competition
   Competitors launching newer models with stress on
    reduced price for our price-sensitive economy proving
    serious threat in near future
   Theft and snatching of bikes increasing, reaching 2500
    bikes in period of January -May 2007.




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                  2, 2010                      ATLAS HONDA LIMITED



E XECUTIVE S UMMARY


                Atlas Honda is one of the leading and most growing

                Automobile (Two wheeler) company of Atlas Group. It is a

                Joint venture with Honda Motor Co. Japan. The Company is

                manufacturing and marketing four models of motorcycles.

                It is growing since 2000 ~ 2001 at the rate of 25 percent

                per annum. Due to absence or very poor infrastructure of

                mass transit and public transport, motorcycle has now

                become necessity of life for a large segment of urban and

                rural population as well.


                The company‘s objective is to maximize profit through

                providing high quality motorcycles and through gaining

                the high level of customer satisfaction. In this report

                company‘s vision and mission statement is clearly

                defined. Then company‘s strategic goals, core

                competencies and core values are described. In addition

                company‘s SWOT analyses are also included in this report.

                After that organization‘s different functions are

                discussed. The company‘s cultural values are also

                described and at the end of the report some suggestions

                are recommended.




REFERENCE
                www.atlashonda.com.pk

                www.wikipedia.com

                www.corporateinformation.com



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