Case Study: Honda Motor Co., Ltd.

Honda Motor Co., Ltd.
The Honda Motor Co., Ltd (Honda) is a publically traded multinational corporation. What this means is the companies’ stocks can be bought and sold, on various stock exchanges across the world, on a daily basis. The stockholders are only liable up to the amount of their initial investment. Like Honda, many large companies choose to operate as a corporation for their business organization in order to protect their investors from personal liability of debts acquired by the company. It also ensures that the corporation will continue infinitely, because shares can be willed to heirs or sold when necessary without effecting the day to day operations of the corporation. The only exception to this rule, is by chance majority ownership should switch hands, giving that person the legal right to arbitrarily make changes to the operations of the company. The most noteworthy disadvantage to this type of business organization in double taxation. In the event the company has a good year it must pay required taxes on the profit as well as the stockholders paying taxes on any dividends that were offered as a result of the profit as well. Honda currently has business operations that are similar with those of many …show more content…
Honda product do tend to be a bit pricier than some of their competition but this is because they refuse to automate most of the assembly line workload and they do put a lot into research and development. This also leads us into a secondary threat of other automobile manufacturers catching up with the innovative ideas of Honda. As with the issues that affect the companies’ profits, they will use the same strategies to address possible competitive threats. They plan to accomplish this by being creating appealing vehicles that include the most innovative environmental and safety features, and by producing enough to meet the demand they have as completely as