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Economic Analysis of Hero Honda

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Economic Analysis of Hero Honda
Managerial Economics Case Study

EMP OCT 2008

Term 1

Case Report on Hero Honda

Team Members
Pavitar Singh - 41
Uttam Kotdiya - 59
Bimal Luthra - 16
Kamlakar - 33
Gaurav Yadav - 27 Janmejay Gupta - 32

Introduction to Hero Honda 3 Hero Honda Mission 4 Hero Honda Mandate 5 Factors influencing growth 5 [ Just-in-Time ] 5 [ Ancillarisation ] 5 [ Dealer Network ] 6 [ Financial Planning ] 6 [ Quality ] 6 [ Diversification ] 6 Models 7
Competitor Analysis 8
Market Overview 11 Two Wheeler Market in India 11 CURRENT SCENARIO 13 Domestic Trends 13 EXPORT TRENDS 13 MOTORCYCLE SALES 16
Cost theory 18 Various type of cost 18 Cost analysis of Hero Honda Motors Ltd 19 Cost Analysis 20 Trend for Sales, cost and profit 21 Initiatives for cost reduction by Hero Honda 22
Economic Analysis 24 Economic Reasons Behind this De-Growth: 24 Higher Interest Rates 25 Availability of Finance 25 Hero Honda Champion in De-Growth 26 Long Term Strategy 27 Rural Economy 27 Hero Honda’s stress on Rural Economy 27 Is this really Paying 27 Effective Working Capital Management 28
Financial Analysis 30 Sales 31 Sales Volume 33 Growth in Sales Volume 34 Net Total Income 35 Profit Before Tax 37 EVA with Investment 40 EVA Without Investment 42
SWOT Analysis 43 Strengths 43 Weaknesses 44 Opportunities 45 Threats 45
References 46

Introduction to Hero Honda

| |
|Hero Honda Motorcycle Ltd. |
|[pic] |
|Type |Public company BSE:HEROHONDA M |
|Founded |January 19, 1984 in Gurgaon, Haryana, India |

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