"Born Global, Grow Global" What to Learn from Honda. A Japanese Mechanic's Entrepreneurial Dream of Reaching a Global Market. On Tuesday, October 11, 2011 the Dublin International Business Assistance Center (DIBAC) located at the Dublin Entrepreneurial Center (DEC) in Dublin, Ohio hosted a presentation by Mr. Toshikata Amino, Retired Executive VP of Honda of America Manufacturing. Mr. Amino received an Honorary Doctorate from Franklin University and is currently Executive-in-Residence at the Fisher College of Business, Ohio State University. Mr. Amino's presentation captured in the video and photo collection below inspires the dreams of entrepreneurs and local business community leaders in the story of how Mr. Soichiro Honda, Founder, Honda Motor Company, started his small business with global ambitions and grew it to an international company. For entrepreneurs who are just starting out, or thinking of building a small business, his speech provides insights into the importance and benefits each of us receive when challenging ourselves to do more than what we imagine. Links to the Video Presentation, Images, Program Sponsors and Hosts: Dr. Amino's video at Google+ https://plus.google.com/u/0/?hl=en&tab=mX#photos/116117308147922907171/albums/5663462153623579601/5663775537837514674 Vimeo vimeo.com/30565244 Flickr tinyurl.com/3tp7779 The Dublin Entrepreneurial Center (DEC) in Dublin, Ohio at http://www.DECinDublin.com The Dublin International Business Assistance Center (DIBAC ) is located in the Dublin Entrepreneurial Center, 7003 Post Road, Dublin, Ohio. Learn more about DIBAC at http://decindublin.com/resources-2/international-business/ The City of Dublin, Ohio at http://www.dublin.oh.us/ The City of Dublin, Ohio Department of Economic Development at http://www.dublinecondev.com/ The International Entrepreneur (TiE) at http://www.tieohio.org/ TechColumbus at http://www.techcolumbus.org/ Honda at http://www.honda.com/ The Central Ohio Japanese Association of Commerce (COJAC) at http://www.cojac.org/ The Japan-American Society of Central Ohio (JASCO) at http://jasco.osu.edu/ Visit the Institute for Open Economic Networks (I-Open) at http://www.i-open.org

1. Born Global, Grow Global
What to Learn From Honda
Toshikata Amino
Executive-in-Residence
Fisher College of Business
The Ohio State University
Executive Vice President (Retired)
Honda of America Mfg., Inc.

2. This material is copyright by Toshikata Amino and distributed
under a Creative Commons 3.0 attribution license. That means you
are free to modify, copy and use this material for commercial
purposes provided that you attribute it as follows:
Source: Toshikata Amino Copyright 2011 distributed under Creative
Commons 3.0 Attribution-Noncommercial-No Derivative Works.
You can learn more about Creative Commons license at
www.creativecommons.org

3. Honda Motor Co. Was
Founded in 1948
• By Mr. Soichiro Honda
• He was 41 years old
• Elementary school
graduate
• Capable auto
mechanic, successful
auto repair shop
owner in Hamamatsu,
then auto parts
supplier for Toyota

4. Honda’s First Small Motorcycle
Plant in Hamamatsu,Japan
• Birth place of
Japanese
motorcycle
industry
Honda, Yamaha
Suzuki

5. Mr. Honda’s Ambition
• Be competitive in the global market
He said “We should be competitive in the
global market. Otherwise, we cannot
compete even against our domestic
competitors”
(Remember that Japanese industry was still
recovering from the total damage of World War II.
Not much attention to global market in Japanese
business people’s minds at that time)

6. Mr. Honda’s Personal Ambition
Became
Honda Corporate Principle
• Maintaining A Global Viewpoint, We
Are Dedicated To Supplying
Products Of The Highest Efficiency
Yet At A Reasonable Price For
Worldwide Customer Satisfaction
(1956)

7. Global Honda
• Honda was a “Global- Minded”
company almost from the beginning.

8. Today We Are Living in a Much
More Globalized Society
・Ever advancing Information technologies
・Online marketing
・Instant knowledge sharing beyond
countries’ borders among customers
・Free Trade Agreement
・Rapidly developing countries and new
market
・Global moving of people (Consumers)

9. Globalization
• We have no reason not to take
advantage of globalization
• Think to grow in global arena from
the beginning of your business

10. How To Do It
• Maintain your global viewpoint
• Request your partners/employees to
maintain their global viewpoint
• Always keep in touch with global
happenings
• Make it a custom to relate global
happenings to your business

11. What Honda Did
“Increase Global Presence”
Actively participated to motorcycle racing
from 1954
• San Paulo International Motorcycle Racing
• Announcement of Honda’s participation in
TT Race On The Isle of Man to be recognized
as a new motorcycle manufacturer in world
market

12. Continuously Go Abroad
１９５９
• American Honda was established
Why first overseas operation in U.S.?
Why not Asia or Europe?

13. Global Motorcycle Market (1950)
In Asia
• Needed
inexpensive
transportation
(Bicycles are major
transportation)
・Short distance from
Japan

14. In Europe
• Big market size
• Mature (Long history of motorcycles)
• Many motorcycle racing enthusiasts
• However, very tough competition
among established European
motorcycle manufacturers

15. Why Did Honda Decide to Come to
U.S. As a First Overseas Market?
• Mr. Takeo Fujisawa,
Co founder of Honda
“We should take the
toughest challenge.
Our dream should not
be limited to the
motorcycle business.
We will go into the auto
business in the future.”

16. American Honda’s First
Office
• A tiny office / warehouse
located on Pico Blvd.
Los Angeles
• Sales were very slow
• Honda sales team visited
motorcycle dealers one
by one by truck fully
loaded with Honda
motorcycles

17. Change the Image of Motorcycles
“You Meet The Nicest People On
A Honda” Campaign
• Mass Advertisement
Time, Life, TV
Be creative and
innovative

18. Think Global, Act Local
• If you are successful in globalization,
sooner or later you have to consider
being local in each market
How to act locally in Japan?
How to act locally in Tibet?

19. Honda’s Localization
Why Production in U.S.?
• Honda Philosophy
“We produce where we have customers”
• Why?
・Better access to market
・Better delivery when customer wants
・Better understanding of customers

20. Why?
(continued)
• Better chance to contribute to the
community
・Employment
・Purchasing
・Tax
・Export

21. Why?
(continued)
• Better cost competitiveness
・ Less logistics costs
・ Less impact of currency fluctuation
・ (Less labor and material cost)
Give, give and take. Win Win relationship

22. Strongest Motivation
“Dream”
• Manufacturing was a long time
dream since Honda came to America
in 1959
Power of Dreams

23. Result of Feasibility Study (1975)
Manufacturing in U. S.
• Sept 1979 Motorcycle Production
• Jan 1980 Announcement of auto
production plan
150,000/year

24. Auto Production Was
Started and Expanded
• Nov 1982 Auto Production
• 1985 Expansion of auto plant
completed 300,000/year
• 1985 Engine Production in
Anna

25. Repeat
• We have no reason not to take
advantage of globalization
• Think to grow in global arena from
the beginning of your business
• “Glocalize” your business

26. Thank You for Listening
• Questions?