英语论文网

utually exclusive options is chosen instead of another based on the competing forces in existence. This is referred to as reconciling dichotomies. Honda has repeatedly shattered this notion as can be seen in one of its dichotomies, which is the product related core competencies versus process related core competencies.

A core competency is defined as an internal capability that is vital to a company’s strategy (Porter, 1990). Honda is famous for its core competencies, especially its engine. Called the compound vortex controlled combustion (CVCC) engine, it was a breakthrough in engineering. The problem with engines up to then was that pollutants would be formed from internal combustion engines. Attempts to eliminate one pollutant invariably led to the proliferation of another and it was assumed that nothing could be done about it. Honda refused to accept the status quo and came up with an ingenious and at that time unorthodox solution. It came up with an internal catalytic converter in the engine that removed all pollutants after combustion, an idea that is now used in most engines. In this respect, Honda showed its ability to reconcile the concept of design and function. This ability endows the firm with a competitive advantage.

Similarly, Honda is able to achieve process related competency in terms of the time it takes in new product development. Generally, Western auto makers require at least five years to design and produce a new car model. Other Japanese companies require at least three years to do so but Honda can do it two years. How this is done is based on the company’s right the first time concept. Accordingly, activities or processes must be error free so that time on subsequent tasks is not wasted rectifying mistakes in earlier processes. Furthermore, this represents an opportunity cost and an operating cost for the company. When costs are lower, profit margins become higher and the company has the luxury of lowering its selling prices so that they are priced more cheaply than rival products. The right the first time approach translates into better inventory control and further cost savings.

Honda approaches new product development by employing SED teams who work on a project from start to finish. Honda also has a specific model replacement system in which all parts of each model are systematically phased out and replaced in four years. Consequently, the company is able to shift from one product to another seamlessly and with few glitches.

THE RULES OF MERGERS AND ACQUISITIONS

Brief Explanation

In recent years, buying existing businesses in their entirety has become a very popular way of investing. In practice, this type of investment is typically effected by one firm (the bidder) buying sufficient ordinary shares in the other firm (the target) to be able to exercise control or even to have complete ownership. Yet, there is some confusion about the terms ‘mergers’ and ‘acquisitions’. Where two firms are of similar size and there is an agreement between the two sets of management as to the desirability of the outcome, then it tends to be referred to as a merger (Lynch, 2006). Otherwise, the term acquisition tends to be used.

 Analysis

Theoretically, a firm will become a bidde本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。