Emergency
...hile at the same time trying to retain the interest of the current market. The criticism made by Pascale can be further analysed by looking at the strengths of the Honda company. The strengths of Honda start with the roles which the founders played. Honda was an inventive genius with a large ego and a volatile temperament. His main concerns were not about the profitability of the company or its products, but rather to show his innovative ability by producing better engines. Fujisawa on the other hand thought about the financial section of the company and how to market the ideas. He often challenged Honda to come up with better engines. By specialising in their own abilities the two of them were able to pool together resources and function effectively as a team. Another strength was the way the company utilised its market position. Strengths in design advantages and production methods meant they were able to increases sales in Japan even though there was no organisation within the company. Once there was a large enough demand for its products, mainly the supercub, Honda both in Japan and in America, moved from a sale on consignment basis to one that required cash on delivery. This seemed a very risky decision to make at the time but within three years they had changed the pattern within the motorcycle industry by shifting the power relationship from the dealer to the manufacturer. Mr Honda had cultivated a "success against all odds" culture into the company. This was tested when he sent two executives to the U.S with no strategy other than to see if they could sell something. The weaknesses within an organisation can become irrelevant if the strategy is strong and there is good leadership. An element of luck also helped Honda follow an emerging strategy. Restrictions placed on funds by the government for the U.S venture forced Honda to take an alternative route. If they had all the funds necessary they may well have gone through the normal distribution channels. Honda entered the us market right at the end of the motorcycle trade season. When leaking oil and clutch problems occurred on their bikes it did not affect Honda as hard as it would have had they entered in the beginning of the season. Also people noticing the Supercubs led the company to produce a bike which was not at first supported by senior management. The success of Honda was not the result of senior management coming up with all the answers. In fact senior executives in most Japanese manufacturing companies do not take their strategic positions too seriously. Salesman, cleaners and those working on the manufacturing floor all contribute to the company is run and thereby influence its strategic position. It is this ability of an organisation to move ideas from the tom to...