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Unformatted text preview: This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be resold, copied, or distributed without the prior consent of the publisher. Honda of America – Case Discussion This is a lengthy case, and can be used over several class periods to illustrate best practices discussed in the text. Some of the strategies discussed in the text that can be raised in discussions of the case include: ¡ Purchasing and Corporate Strategy Alignment ¡ Importance of Leadership in Supply Management ¡ Supplier Evaluation and Performance Measurement ¡ Supplier Development and Building a World Class Supply Base ¡ Global Sourcing ¡ Long-term contracts and strategic alliances ¡ Target costing and cost-savings sharing ¡ Single sourcing versus multiple sourcing ¡ Supplier integration into new product development Begin by taking students through the case and asking them the following questions that align with these concepts: ¡ How does Mr. Honda’s history with suppliers relate to Honda’s current supply management strategy? ¡ Why is purchasing so important at Honda? ¡ How does purchasing rank in the corporate structure at Honda? ¡ How is Honda organized globally? How does this help/hinder the purchasing function at Honda? ¡ What are the key elements of Honda’s supplier evaluation policy? How does it differ from others (e.g. the Big Three)? ¡ What is Honda’s policy on new product development and supplier involvement? How does it differ from other automotive companies? ¡ Does Honda support local sourcing from domestic suppliers? What are the advantages / disadvantages of this approach? ¡ Honda’s policy and commit to long-term relationships has been criticized as being “too loyal”, and Honda will go to “ridiculous lengths” to maintain a supplier relationship before severing ties. What do you think about these criticisms? ¡ The “keiretsu” system in Japan has been described as having advantages and disadvantages. Does Honda have a keiretsu (answer: no, not really)? What are advantages of a keiretsu? Discuss the case of Nissan: their keiretsu is breaking up under ownership by France’s Renault. What do you think this means for Japanese buyer-supplier relationships in the automotive industry? A good reading for discussion is “Think Globally, Source Locally”, by Robert Handfield and Daniel Krause, Supply Chain Management Review, 1997. A copy is attached for your convenience. This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be resold, copied, or distributed without the prior consent of the publisher....
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This note was uploaded on 04/21/2011 for the course MGT 01 taught by Professor Gad during the Spring '11 term at Tanta University.
- Spring '11