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Organizational Management Honda Thailand

Autor:   •  July 1, 2012  •  Essay  •  393 Words (2 Pages)  •  1,545 Views

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History- In the year 1983 Honda Cars(Thailand) Co. LTD was established in Thailand as a Major distributor of Honda in Thailand due to the high volume and increase in demand in the Thai Market after Eight Years Honda established another company called Honda Manufacturing(Thailand) Co. Ltd in Minburi to engage in production and assembling of vehicle parts and vehicles respectively. After Four years of success in 1996, a second Plant was established; Built in Rojana Industrial park Ayutthaya is the World's most comprehensive car production base to meet domestic and external increasing demands. In 1999, Honda Automobile (Thailand) Co. Ltd was formed as an Umbrella over Honda cars and Honda Manufacturing, this merger was to enhance the quality in products, meet the increasing customer demands and to improve creativity and innovation to satisfy the changing customer needs.

The flood in 2011 is characterized as one of the most expensive flooding in Thailand, needless to say that there has been several flooding in previous years. The economic impact of the flood was estimated at a loss of THB 1.4 trillion of which THB 1, 007 billion was from Manufacturing - Industrial factories. The GDP in Thailand was said to have declined by 9% in the last quarter of 2011. Honda Thailand was the most vulnerable in the Automobile Industry as it is located on plain or the lowland central region which is usually faced with riverine and flash floods especially in the raining season (between June and October).

Honda resumed operations in the month of March 2012, after a halt in production for about five months accompanied by a loss of equipment and some ready to sell vehicles of which about 4000 were saved. Honda is seen to have lagged in recovery by its rivals Toyota and Nissan, it was the last to get its supply chain in order after the tsunami in Japan and only restarted in march after the flood in Thailand.

Critics have raised deep concerns whether Honda was

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