Paper Example on Role of Operations Management in Meeting the Company's Objectives

Paper Type:  Report
Pages:  7
Wordcount:  1757 Words
Date:  2022-07-08


Operations management is an area in a company that deals with the production of goods and services. Operations department ensures that the company's operations are run smoothly and in an efficient manner using the smallest amount of resources. Operations management converts inputs into outputs, which may be divided into goods and services. Operations management controls the systems of the organizations. Additionally, it is upon the operations manager to ensure that an organization meets the set goals and objectives (Slack, 2015). This paper will discuss the role that operation management plays in achieving the objectives of Honda Motors Company.

Trust banner

Is your time best spent reading someone else’s essay? Get a 100% original essay FROM A CERTIFIED WRITER!

Honda Motors is a company that deals with the production of bikes and cars. Honda Motors uses operations management to ensure efficiency and effectiveness in the operations of the company. Proper operations techniques are required to manage the activities of the business. Honda Company uses the operations management techniques to utilize its resources (Morrison, 2017). The resources include human expertise, machinery, and the input materials used in producing goods and services.

Honda Company has the primary objective of profit maximization. It is upon the operations manager to ensure that this objective is met. The operations function does this through the reduction of cost of production mainly through the use of new technology. The other goal is that of increasing productivity by using the minimum resources possible. The effectiveness and efficiency are achieved through the worker productivity, utilization of the resources, and through the management techniques (Grabner, 2017).

Operations management is used to ensure there is proper utilization of the input materials. The operations functions play the role of ensuring appropriate product and service management (Morrison, 2017). The features also ascertain that they develop ideas to support new customers who buy new cars and bikes from Honda. Additionally, the company uses operations function to give quality products, improve on the production techniques, and to advertise through the magazines when introducing new products.

Honda Motors Company has specific performance objectives, which it can use to assess the contribution of the management operations towards its strategic aspirations. The first objective is that of ensuring quality products. Operations management at Honda Motors Company provides that quality products are produced in the market relative to the prices that customers pay. The operations do that by having well-trained staffs depending on the availability of raw materials and balancing in case of varying in raw materials. This brings consistency in the production of quality products. In case the company notices that the products have some problems, then it should act before the products are sold. This objective may be linked to the six sigma theory which focuses on quality in line with increasing profits and reducing the cost of production (Grabner, 2017).

The other specific performance noted as a result of operations management is that of timelessness in delivery. This is done by making sure that the customers' orders are attended to on time. The department dealing with operations management also communicates with customers to get the expectations they have. This, in turn, may increase the profits, and that is the primary objective of the company (Morrison, 2017).

The other specific objective obtained by Honda Company is that of ensuring efficiency in the running activities of the company. This is by making sure that despite the presence of the managers that the work can still be done efficiently. It's upon the operation management to know the exact amount of products made with some raw materials (Grabner, 2017). They should also see the time needed to produce a certain amount of products with the available resources. This is done by ensuring that in case of any problem the managers can understand there is a problem and act on a timely basis.

Strategies Used to Manage Internal and External Stakeholders

Managing internal and external stakeholders involves engaging the stakeholders of the organization in the project lifestyle to incorporate their needs, their interests together with the potential impacts they may have on the success of the project. Honda motors understand the benefits of proper stakeholder's management, and thus the company works hard to ensure the interests of both internal and external stakeholders are taken into account (Bastons, Mas & Rey, 2016). The various strategies will be discussed below

The first strategy is identifying and mapping the external and internal stakeholders. Honda Motors Company does this by identifying the target group and trying to pull together information about them. Once the stakeholders have been identified, then the management must put the needs and the interests of such stakeholders into consideration (Brem & Viadort, 2015). The company has identified the major external stakeholders which include Japan Trustee Services Bank which has 6.5%, The Master Trust Bank of Japan having 4.70% of the totals shares, Moxley & CO.LLC with 3.1% of the shares and finally Meiji Yasuda Life Insurance Company with 2.4%. The internal stakeholders include the employees, the suppliers, the customers, associates, etc.

The second strategy used by Honda Motors to manage the stakeholder is that of assessing the influence of the stakeholder's impact and their importance. The impact is based on the objectives that the company aims at achieving (Bastons, Mas & Rey, 2016). The effect that the stakeholders have on the direction of the project, as well as the outcomes of the project, should also be considered. The company understands that the plans in a company can never become a success if the significant stakeholder's interests are not taken into account.

Additionally, Honda Motors uses the engagement feedback process as a strategy to manage the stakeholders. The feedback process is done to obtain relevant information from the stakeholders. The stakeholders get a chance to express their interest. This change is also used to receive feedback from the benefits given previously by the shareholders (Brem & Viadort, 2015). The engagement is also done by engaging in dialogues with the government, industry bodies, the economic agents, etc. This facilitates proper management of stakeholders.

There is evidence of proper stakeholder's management in Honda Motors Company. The company manages the relationship with the customers who are amongst the stakeholders in Honda Motors Company (Vescovi, 2012). The customers receive quality products based on their needs and interest. The company also ensures that the clients get the goods and services ordered on time. The organization also provides a proper relationship between the company and its employees. The workers receive recreation facilities, get their payments on time, and receive retirement benefits. The numerous incentives ensure mutual relationship and the appropriate working conditions, which in turn results in increased productivity. The third group of stakeholders that has an appropriate relationship with Honda Motors is the research institutes. The company ensures that the research done is embraced despite the implementation procedures. Once the company discovers a problem with the bikes and cars, the research institute people are called to ensure all goes well. Research Institute also verifies the products invented and finally embrace the co-development of technology.

Optimization of Value Creation by Managing Relationship among Stakeholders

It is upon the managers to make decisions regarding the running of the organization. However, the interest of the stakeholders must be taken into account for the firm to have value maximization. Organizations should not only consider the short-term value maximization, should take into account the long run value maximization. The enlightened value optimization theory argues that it's difficult to put the interests of all stakeholders into practice. The value optimization theory holds that if the managers tell the stakeholders that their primary goal is valued maximization, then the organization may not achieve its value maximization goals. Honda Motors thus works towards resisting the short-term goals of financial performance by the stakeholders and instead works towards creating value for the creation (Roolaht, 2016). For example, the shareholders may consider profit maximization goal, but it's upon the management team to insist on value maximization objectives.

Besides, Honda Motors Company takes into account the enlightened stakeholder's theory to optimize on value creation. Under this theory, the objective function of any organization is to maximize the long-term firm market value. The changes observed altering the long-term goals of value maximization is used to measure the success of an organization (Kumar & Rajan, 2017). The theory holds that one may not see the implications of an organization for an extended period. For example, a policy to get cash on delivery may not bring any effects until after an extended period.

Optimization of value creation through managing the relationship among different stakeholders is also done in various ways. Honda Company gives relevant value information to the investors. The information provided includes the financial reports and the projected profits in the future. The company also encourages its executives to bear the risk in case of a loss just as the shareholders. The CEO's, executives, managers and the employees are also rewarded years for working towards the achievement of the company's objectives (Roolaht, 2016). The final thing that optimizes value by managing the relationship with the stakeholders is returning any money to the shareholders when the executives notice that there are no value creation opportunities as at a particular time.

Optimization of the value creation is also done by making acquisitions concerning issues that maximize the expected goals. This should be done even at the expense of getting low earnings shortly. This should be explained to the shareholders on time to prepare their minds on the expected short-term profits. The company also maximizes on value creation by not giving guidelines on the expected revenues. This is likely to force the executives to lower the advertisements cost, research and development cost and the maintenance cost to achieve the set targets of earnings (Kumar & Rajan, 2017). It's upon the company to ensure that the stakeholders do not focus only on increasing the companies earning.


In conclusion, companies should work towards meeting the needs and interest of the shareholders. The executives and the CEO's should not sorely put their interests when setting an organization's goals. The executive should insist on the long-term goals of the organization and not put effort into meeting the short-term goals. External stakeholders should as well as acknowledge the undertaking given by the internal stakeholders within a company.


Bastons, M., Mas, M., & Rey, C. (2016). Pro-stakeholders motivation: Uncovering a new source of motivation for business companies. Journal of Management & Organization, 23(05), pp -632. doi:10.1017/jmo.2016.14

Brem, A., & Viardot, E. (2015). Adoption of innovation: Balancing internal and external stakeholders in the marketing of innovation. Adoption of Innovation, pp 1-10. doi:10.1007/978-3-319-14523-5_1

Grabner, T. (2017). Operations strategies. Operations Management, 15-45. doi:10.1007/978-3-658-14484-5_2

Guidez, J., & Prele, G. (2017). Objectives and opera...

Cite this page

Paper Example on Role of Operations Management in Meeting the Company's Objectives. (2022, Jul 08). Retrieved from

Free essays can be submitted by anyone,

so we do not vouch for their quality

Want a quality guarantee?
Order from one of our vetted writers instead

If you are the original author of this essay and no longer wish to have it published on the ProEssays website, please click below to request its removal:

didn't find image

Liked this essay sample but need an original one?

Hire a professional with VAST experience and 25% off!

24/7 online support

NO plagiarism