This paper will examine the tsunami earthquake and its effects on Japan's Honda automobile industry. The earthquake and tsunami that hit Japan recently has had drastic economic effects on the production of Honda automobiles. The top management is not very sure when to restart operations and we will look at whether they can cope to such tragedies
Honda uncertain on Restarting Japan plants
Companies should adopt tactics and strategies that cope up with events such as the Earthquake that triggered a Tsunami in Japan. The Tsunami affected the Honda motor company; this resulted in the suspension of automobile and motorcycle assembly operations. This was because some suppliers needed to restore production facilities that had been destroyed by the earthquake. This was after a warning from Honda U.S saying that they aren't sure if they will resume production at some Japanese firms before May. This was a sign that the motor industry was facing problems. Honda and some Japanese Auto makers have stopped production and are not giving a date when they will resume normal business. By suspending the production in Japan Honda, will deal with problems like delays of the Automobiles to the customers (Honda uncertain to restarting Japan plants).
The managers of Honda have made this decision due to the uncertainty of the production levels of Honda automobile in Japan because they are not sure when the plants will be ready for production. In future, the vehicles built in may will be allocated to there owners by Honda. This action is Tactical because Honda does not want any complains of vehicles delaying to customers, that's why they suspend all Japan Automobile. This action is driven by the technological environment of Japan because there is need restore production facilities in some Honda plants in Japan. Companies should adopt strategies and tactics that cope up with events.
It is advisable for companies to adopt strategies and tactics that cope up with events such as the Tsunami that affected Japan. Honda motor company suspended the production of automobiles from Japan because suppliers needed to restore production facilities destroyed by the Tsunami. This decision was made due to the uncertainty of the production levels of Honda Automobile and they are not sure when the plants will be ready for production. This action is Tactical because Japan does not want delays of products to customers. The need to restore production facilities in Japan shows that the move was driven by technological environment of Japan.