How Honda Localizes its global strategy Trade frictions between advanced nations Economic problems must be discuss at the global level, not at the level or countries or even regions. It is critical to build interdependent relationships among nations, and in doing so, restore trust. Corporations from the advanced nations can contribute through investment and technology transfer 1st,countries involved must clearly understand the goals to be attained thorough mutual cooperation 2nd, each country’s role must be recognized and agreed upon

How Honda Localizes its global strategy Honda’s overseas strategy: The four localizations Localization of Products Developing, manufacturing and marketing the products best suited to the actual and potential needs of the customer and to the social and economic conditions of the marketplace To localize products, corporations must invest in R&D of products and on increasing production efficiency Localization of Profits Reinvesting as much of the profits as possible in the local market. A company investing abroad must regard it self as a local company and endeavor to prosper together with the host community. Localization of Production A corporation does not merely makes profits by exporting completed products: it carries out production activities where major market exist, thereby contributing to the development of the host nation and achieving mutual prosperity This is the best way to gain acceptance of both the products and the corporation There are two ways to make local production activity most effective Increase ratio of local content Increase local production. This also increase responsibility and pride in the employees Localization of Management It goes beyond transferring knowledge about management systems operations. It requires understanding the corporate philosophy It also requires creating a sense of unity between management and labor so that everyone is working toward a common goal

How Honda Localizes its global strategy Honda’s three most important policies: Establish a good human relations between the management and the workforce Maintain and promote harmony with the local community. An important factor in producing high quality goods is securing high quality labor Give top priority to maintaining high quality standards in Honda’s products. Quality level is determined primarily by the actual design of the product itself, not by quality control in the production process. Honda’s strategies and policies are aimed at achieving maximum customer satisfaction It is essential for a corporation to interpret the word ‘customer’ in a broader sense – to cover the whole society in which it operates.