Global Business Management

  • Uncategorized

GlobalBusiness Management

Nameof Student

Theautomobile industry does not cease to demand the commentators’ andregulators’ attention equally due to its importance in the economy,systemic and strategic effect and its customary status as an epitomeof national pride and prestige (White, 2011). For this reason,therefore, a distinctive policy of competition had to be developedfor the industry over time. Success in the automobile industry is notguaranteed by the size of the auto firm. Competition in the marketfavors only the companies that can innovate and come up with newtechniques of creating value. The paper compares three competinginternational automobile firms: Toyota, General Motors, and HondaMotor Corporation.

Modelsof culture


UnderstandingToyota’s model of culture is important in the identification ofprinciples and beliefs that add to the strength of the brand. Theorganizational structure outlines employee responses to marketchallenges faced by the company. The firm makes the most of thecorporate culture in the human resource innovation capabilities. Italso benefits from it in matters to do with support inproblem-solving. The company’s model culture experiencedreorganization in 2013. The characteristics of the culture in orderof significance, therefore, are: Teamwork, continuous improvementthrough learning, Quality, and secrecy

GeneralMotors (GM)

Thegeneral culture at GM is to make everyone feel valued and provide aplatform for growth, learning and evolving as professionals. At GMeffort is made to manufacture vehicles that are easy to use, have anengaging performance and a remarkable fuel economy. They believe thatvaluing their customers and approaching challenges through the lensesof their clients will help them achieve their goals.

Theprimary goals at GM are to push forward with speed and attaincontinued success be the leading firm in quality and advancedtechnologies in producing the best vehicles globally. They also aimat entrusting members of their team with accountability andresponsibility as well as creating positive enduring relations withclients, communities, dealers, suppliers, and union partners topropel their operating success.


Itis Japan’s second biggest car manufacturer with a unique corporateculture. Honda’s culture is built around the concept of problemfixing and promoting innovation. The company’s main principle is tomaintain an international perspective and be committed todistributing high-quality products at a fair price for global clientsatisfaction. The policy is to carry on with youthfulness andambition respecting sound theory while developing fresh ideas.Enjoying work and encouraging open communication is also encouragedat Honda motors. The management strives for a continual harmoniousworkflow.

TheGM culture “GM nod” is a real problem that needs to be fixed. Therecommended culture should involve engaging everyone, workingtogether and bringing forth the best ideas. It is the best culturefor the firm because in a company where there is no real leadership,and failure is too hard to be admitted other policies keep failing.The same culture that requires review is the one that killed thirteenpeople, and a lawsuit was filed against the company. It should bealtered as soon as possible.

Theeconomic system

Governmentregulation in the automobile business has a grand effect on theirgeneral design, safety features included, and their performance. Suchregulations significantly affect the automotive business regardingproduction costs and limiting the sale and marketing policies ofcars. Automotive rules benefit clients and safeguard the environment.Failure to adhere to certain government policies results in stifffines and penalties. This is an instance of a command economy.

Inthis type of economy, the government decides the use and distributionof resources. It regulates wages and prices just like in the autobusiness. The most outstanding feature of this economy is the how alarge part of the economy is run by a centralized authority – thefederal government (Grossman, 2013). The potential effects of such aneconomic system on the societies involved include the society mayfail to experience maximum innovative developments. Since thegovernment controls the market, it may not allow enough room forinnovations. With such an economy, the needs of the society may endup being ignored. Most workers don’t have the chance to choosewhere to move or work. It is also worth noting that with this kind ofeconomic system, the government becomes streamlined with the society.When there is harmony between the two units, theirs is development.

Somecountries experience slow economic growth as a result of thereactionary steps taken by governments, organizations, and businessesin response to what goes on in the economy. Slower than usual growthusually results from excess government expenditure compared tolending, declining prices in housing, little economic confidence bythe players in the economy, and consumers who spend less and savemore. Such activities limit cash circulation slowing down economicdevelopment.

Thethree researched competitors can help encourage economic growth bytaking generic steps such as creating employment for the citizens sothat they gain skills and earn a living. Innovation and technologyare considerable economic boosters so these companies can play therole of innovating to fuel the economy. The competitors can alsoencourage economic growth by allowing foreign investors to partnerwith them. This will allow circulation of ideas through the economicsystem.

Giventhe opportunity, I would become a leader at Honda Motors. The desireis to reestablish the face of leadership at the company because sincethe charismatic Kawamoto Nobuhiko retired in 1998, he has beensucceeded by unfocused leaders who have failed at their duties. Tobring about change, I would embark on four necessary steps which are:employee engagement, incapacitating resistance, communicating change,and execution of the change in phases.

Toincapacitate opposition, I would help the employees gain a betterunderstanding of the need for change and provide a strong pillar forthe changing environment. This will come along with a clear andconsistent communication about the change which will occur in phases(Adekola &amp Sergi, 2016). The steps will involve preparing theteam for change, managing the change and reinforcing it. Whenemployees are engaged, the likelihood of putting in the effortrequired for the implementation of the change desired is very high.Communicating change is key because it communication has to betwo-way to ensure a successful organizational change.

AsCEO, I would cut down on the impact sales and marketing personnelhave on the car design. When the sales team takes up theresponsibility of developing cars as they have done over the years,the focus is placed on the immediate needs of the clients rather thatlong-term. Tech people need to be free to design cars and takeresponsibility when cars are unsuccessful. I would also ensure that Ispread Honda branches into countries such as the United States andBrazil for expansive growth.


Adekola,A., &amp Sergi, B. S. (2016). Globalbusiness management: A cross-cultural perspective.Routledge.

Grossman,G. (2013). Notes for a theory of the Command Economy∗.

White,L. J. (2011). Theautomobile industry since 1945.

Close Menu