scroll to top
Stuck on your essay?
Get ideas from this essay and see how your work stacks up
Word Count: 1,484
THE ROVERHONDA ALLIANCE AND THE BMW ACQUISITION OF ROVER GROUP Background Rover was an ailing car manufacturer in the 70s owned by the British government which was losing a significant amount of money It was having trouble with quality control mechanisms and needed a new product in the lower-medium sector to plug a gap in its product range At the same time Honda was becoming a larger player in the automobile sector After laying its foundation as a high quality motorcycle manufacturer Honda needed a stronger presence in Europe and in 1979 an alliance was formed between Rover and Honda to leverage each others resources and capabilities Rover would leverage Hondas quality controls and high reputation and Honda could use Rovers manufacturing facilities which were running under-capacity The relationship developed much further over the years to the point of minority ownership in each others companies Key Success Factors of the automobile industry in the middle of the 1970s The 70s were an era of industrial change in the world The word globalization was being used more and more especially in the automobile industry where names such as General Motors and Ford were becoming synonymous the world over Managing all this change and converging marketplaces meant a great deal of work for existing companies wishing to compete on the global scale Key factors necessary for success included Looking at ownership structure and deciding on strategic intent oTo Rover it was difficult being a crown corporation owned by the government and it inhibited them somewhat in maintaining competitive in the marketplace Unionization also hurt Rover as dealing with those issues deterred it from its strategic intent On the other hand Honda was quite successful because they were a de-regulized company which allowed them to be more competitive and flexible At the same time Honda stayed focused on a strategic intent of becoming a global player built on a philosophy of
@Kibin is a lifesaver for my essay right now!!
- Sandra Slivka, student @ UC Berkeley
Wow, this is the best essay help I've ever received!
- Camvu Pham, student @ U of M
If I'd known about @Kibin in college, I would have gotten much more sleep
- Jen Soust, alumni @ UCLA