Honda 2008 Annual Report Download - page 36

Preparing for the Future
In the global economy, there are concerns of economic slowdowns
in the U.S., Europe and Japan. In addition, the pace of economic
expansion in Asia outside Japan is expected to decline. Moreover,
the global business environment in which Honda’s management
operates still remains uncertain because of global political and eco-
nomic uncertainties, fluctuations in oil and raw material prices, and
movements in currency, finance and capital markets. As a result,
Honda expects the operating environment to remain difficult.
It is under these circumstances that Honda seeks to strength-
en its corporate structure quickly and flexibly to meet the require-
ments of its customers and society and the changes in its business
environment. Also, in order to improve the competitiveness of its
products, Honda will endeavor to enhance its R&D, production
and sales capabilities. Furthermore, Honda will continue striving
to earn even more trust and understanding from society through
companywide activities. Honda recognizes that further enhancing
the following specific areas is essential to its success:
1. Research and Development
Along with efforts to develop even more effective safety and en-
vironmental technologies, Honda will enhance creativity in its
advanced technology and products, and will create and swiftly
introduce new value-added products that meet specific needs in
various markets around the world. Honda will also continue its ef-
forts to conduct research on future technologies.
2. Production Efficiency
Honda will establish and enhance efficient and flexible production
systems and expand production capacity at its global production
bases, with the aim of increasing its capability of supplying high-
quality products.
3. Sales Efficiency
Honda will remain proactive in its efforts to expand product lines
through the innovative use of IT and to upgrade the sales and ser-
vice structure, in order to further satisfy its customers.
4. Product Quality
Responding to increasing customer demand, Honda will upgrade
its quality control through enhancing the functions of and coor-
dination among the development, purchasing, production, sales
and service departments.
5. Safety Technologies
Honda is working to develop safety technologies that enhance
accident prediction and prevention, technologies to help reduce
the risk of injuries to passengers and pedestrians from car acci-
dents, and technologies that enhance compatibility between large
and small vehicles, as well as expand its lineup of products in-
corporating such technologies. Honda will reinforce and continue
to advance its contribution to traffic safety in motorized societies
in Japan and abroad. Honda also intends to remain active in a
variety of traffic safety programs, including advanced driving and
motorcycling training schemes provided by local dealerships.
6. The Environment
Honda will step up its efforts to create better, cleaner and more
fuel-efficient engine technologies and to further improve recycla-
bles throughout its product lines. Honda will also work to advance
fuel cell technology and steadily promote its new solar cell busi-
ness. In addition, Honda will further its efforts to minimize its envi-
ronmental impact. To this end, we set global targets to reduce the
environmental burden as measured by the Life Cycle Assessment*
in all areas of business, spanning production, logistics and sales.
7. Continuing to Increase Society’s Trust in and
Understanding toward Honda
In addition to continuing to provide products incorporating Hon-
da’s advanced safety and environmental technologies, Honda will
continue striving to earn even more trust and understanding from
society by, among other things, undertaking activities for corpo-
rate governance, compliance, and risk management and contrib-
uting to society.
Through these Companywide activities, Honda will strive to
materialize Honda’s visions of “Value Creation (Creating New Value
for Our Customers),” “Glocalization (Expanding Regional Opera-
tions),” and “Commitment to the Future (Developing Safety and
Environmental Solutions),” with the aim of sharing joy with Honda’s
customers, thus becoming a company that society wants to exist.
*Life Cycle Assessment: A comprehensive system for quantifying the impact Honda’s
products have on the environment at the different stages in their life cycles, from
material procurement and energy consumption to waste disposal.
Annual Report 2008
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