Introduction:

Company Name: Atlas Honda :

Management can be successfully be learned when I observed an environment of a successful
organization I was asked to choose of favorite organization and to analyze its managerial structural
and function of management in that organization because a successful management makes a
successful organization for this project I chooses atlas Honda limited I studied atlas Honda limited
,
Atlus Honda Limited is the largest Motorcycle manufacturer In Pakistan with the strongest brand
value and highest customer loyalty. The company is considered a pioneer of motorcycle industry
in the country and has been leading two wheeler market successfully for over 50 years.
In this I studied its whole the history we collected information regarding its performance more
critically I analyze its managerial structure and function of the management of this organization.
For this purpose I visited its plant at sheikhupura there met a well reputed manager of AHL.

Atlas Honda Limited (AHL) is a public listed company which was incorporated on October 16, 1962.
It is a joint collaboration between Honda Motor Company Limited Japan and Atlas Group.

The Company is principally engaged in progressive manufacturing and marketing of Honda brand
motorcycles and spare parts. It is the largest motorcycle manufacturer in Pakistan and has been
leading two wheeler market successfully for over 50 years. AHL is considered a pioneer of two
wheeler industry and is renowned for its superior product quality, reliable Japanese technology
and a wide range of products.

With an annual turnover of over Rs. 50 billion, the Company remains dedicated to the goal of
maintaining its market leadership both in terms of volume and quality. Its state of the art
manufacturing facilities, largest dealership network and comprehensive after sale service continue
to inspire the next generation of bike riders. With ever rising expectations and customer base, the
Company remains motivated to strive for higher levels of excellence.
Annual Production Capacity:
750,000
Authorized Capital;
1.5 Billion (Rupees)
Paid Up Capital
Rs.1, 034.066 Million
Karachi Plant:
Company mother plant is based in the city of lights and provincial capital of Sindh, The Karachi
city. It is located at F-36, Estate Avenue, S.I.T.E. Karachi. Atlas Group signed technical agreement
with Honda in 1963 and plant started commercial production subsequently. Plant spread over an
area of 5 acres. In 1964, production began with 7 motorcycles per day. Now plant production has
reached to 300 units in a day. Plant manufactures CD 70 only.
“Sheikhupura Plant”:
Another plant is situated in Sheikhupura city, Punjab. It is located at 26-27 KM Lahore-
Sheikhupura Road Sheikhupura. The plant was built in 1981 and spread over an area of 27 acres
with the establishment of modern and synchronized 500K plant in 2006. The plant manufactures
all four models i.e. CD 70, Pridor, CG 125 and CG 125 Deluxe.
Export: Bangladesh
Company Registration Number:

 CUIN 0001569

Symbols of the company:

 ATLH
 Stock Exchange Enlistments:
Karachi Stock Exchange
 Lahore Stock Exchange
Atlas Honda is a joint venture between the Atlas group and Honda motor company limited Japan.
The company was formulated by the merger of Panjdarya limited and Atlas limited in 1998,
Atlas Honda’s strong governance framework provides a solid structure for effective and
responsible decision-making within the organization. The highest decision making is carried out at
the shareholders’ meetings, supported by the Board of Directors. The Board has oversight of the
risks and opportunities arising from the company’s activities and is responsible for setting the
direction, strategies & objectives and for monitoring the implementation of the same by
management.

Atlas Honda Limited is a public listed company which was incorporated on October 16, 1962. It is
a joint collaboration between Honda Motor Company Limited Japan, the largest and most reputed
motorcycle brand in the world, and Atlas Group, one of Pakistan’s most renowned business
conglomerates. The Company is principally engaged in progressive manufacturing and marketing
of motorcycles and spare parts.
Atlas Honda Limited is the largest motorcycle manufacturer in Pakistan with the strongest brand
value and highest customer loyalty. The Company is considered a pioneer of motorcycle industry
in the country and has been leading two wheeler market successfully for over 50 years.
The Company currently has a production capacity of over 1.35 million units per annum and
continues to maintain its status as market leader both in terms of volume and quality. It also
exports its motorcycles and spare parts to Bangladesh and Afghanistan.
With highest quality products, state of the art manufacturing facilities, largest dealership network
& impeccable after sales service, Atlas Honda Limited is today considered a benchmark for two
wheeler manufacturing. It has been proudly and successfully fulfilling its role as the flag bearer of
motorcycle industry in Pakistan.

Manufacturing and Development: Atlas Honda Limited (AHL) is a public listed company which
was incorporated on October 16, 1962. It is a joint collaboration between Honda Motor Company
Limited Japan and Atlas Group.
The Company is principally engaged in progressive manufacturing and marketing of Honda brand
motorcycles and spare parts. It is the largest motorcycle manufacturer in Pakistan and has been
leading two wheeler market successfully for over 50 years. AHL is considered a pioneer of two
wheeler industry and is renowned for its superior product quality, reliable Japanese technology
and a wide range of products.

With an annual turnover of over Rs. 50 billion, the Company remains dedicated to the goal of
maintaining its market leadership both in terms of volume and quality. Its state of the art
manufacturing facilities, largest dealership network and comprehensive after sale service
continue to inspire the next generation of bike riders. With ever rising expectations and
customer base, the Company remains motivated to strive for higher levels of excellence.
Plants in Pakistan:
 Sheikhupura
 Karachi
 Lahore
.Branch offices
a. 1st Floor, 28-Mozang Road, Lahore
b. Islamabad Corporate Center, Plot No. 784/785, Golra Road, Islamabad
c. 1st Floor, Meezan Executive Tower, 4-Liaquat Road, Faisalabad
d. Azmat Wasti Road, Multan
e. 2nd Floor, Dawood Centre, Autobhan Road, Hyderabad.
f. Makhdoom Altaf Road, West Sadiq Canal Bank, Near City School, Rahimyar
Khan.
Memberships of Major Associations:
a. Pakistan Automotive Manufacturers Association (PAMA)
b. Pakistan Business Council
c. Federation of Pakistan’s Chambers of Commerce and Industry
d. Chambers of Commerce and Industry of:
  Karachi
 Lahore
 Sheikhupura
 Overseas Investors
e. Management Association of Pakistan
f. Marketing Association of Pakistan
g. in market the AHL have good compitators than others
H.AHL Atlus Honda limited company is 1st producing industry or company in
Pakistan

Products CD 70
CD 70 Dream
Pridor
CG125

CG 125 Self
CB 125F
CB150F
CB250F
Vision and Mission
Vision:
Market leader in the motorcycle industry emerging as a global competitive center of production
and exports,

Mission:
“A dynamic growth oriented company through market leadership, excellence in quality and service
and maximizing export, ensuring attractive returns to equity holders, rewarding associates
according to their ability and performance, fostering a network of engineers and researchers
ensuing unique contribution to the development of the industry, customer satisfaction and
protection of the environment by producing emission friendly green products as a good corporate
citizen fulfilling its social responsibilities in all respects.
Strategic Goals

Customers
Our Customers are the reason and the source of our business. It is our joint aim with our dealers
to ensure that the customers enjoy the highest level of satisfaction from use of Honda
motorcycles.

Quality:
To ensure that our products and services meet the set standards of excellence.

Local Manufacturing

To be the industry leader in indigenization of motorcycle parts.

Technology: To develop and maintain distinct business advantages through continuous

induction of improved hard and soft technologies.

Shareholders

To ensure health and viability of business and thus safeguarding shareholders’ interest by
maximizing profit. Payment of regular satisfactory dividends and adding value to the shares.

Employees

To enhance and continuously update each member’s capabilities and education and to provide an
environment which encourages practical expression of the individual potential in goal directed
team efforts and compensate them attractively according to their abilities and performance.
Corporate Citizen

To comply with all Government laws, rules and regulations and to maintain a high standard of
ethics in all operations and to act as a responsible member of the society.

Quality Policy
 Commitment to provide high quality motorcycles & parts.
 Right work in first attempt and on time.
 Maintain and continuously improve quality.
 Training of manpower and acquisition of latest technology.
 Safe, clean and healthy environment.
 Market leadership and prosperity for all.
Board of Directors

We have an experienced and dynamic Board with the right blend of skills to deliver and further
develop strategies. Presently, the Board comprises of eight Directors, including four non-executive
Directors, three executive Directors and one independent Director. Non-executive Directors are
elected to enhance objectivity. We do not have a defined quota for Board of Directors based on
gender, ethnicity or age group. The Chairman is responsible for the overall discharge of the Board’s
duties. The office of the Chairman and the Chief Executive Officer (CEO) are separate.

The Chairman of the Board of Directors is selected from within the Board. The Board may from
time to time establish committees, to assist it by focusing on specific responsibilities in greater
detail than is possible for the Board as a whole, reporting to the Board and making any necessary
recommendations. The statute requires the Board to formulate Audit Committee and Human
Resource & Remuneration Committee.
Board’s Performance Evaluation

The evaluation of Board’s role of oversight and its effectiveness is a continuous process, which is
appraised by the Board through Human Resource & Remuneration Committee. The core areas of
focus are:

 Alignment of corporate goals and objectives with the vision and mission of the Company;
 Strategy formulation for sustainable operation;
 Board’s independence; and
 Evaluation of the Board’s Committees’ performance in relation to discharging their
responsibilities set out in respective terms of reference.

The performance of the CEO is formally appraised through the evaluation system which is based
on quantitative and qualitative values. It includes the performance of the business, the
accomplishment of objectives with reference to profits, organization building, succession planning
and corporate success.

Roles & Responsibilities of Chairman & CEO:

The Chairman’s primary role is to guide long-term strategic planning for Atlas Honda including:

 Presiding over the Board and ensuring that all relevant information has been made
available to the Board;
 Defining the Company’s philosophy and objectives;
 Safeguarding shareholders’ interest in the Company;
 Responsible for building the Company’s image nationally and globally;
 Ensuring the appropriate recording and circulation of the minutes of the meeting to the
Directors and officers entitled to attend the Board meetings;
 Major spokesman of the Company, responsible for liaison with the senior most levels of
the Federal and Provincial Governments;
  Overseeing the Company’s macro approaches and public relations in the broad sense,
including its relations with public organizations and other companies; and
 Commitments and de-commitment of strategic investments.

The CEO is responsible for reporting the Company’s performance to the Board of Directors. He is
also responsible for all matters pertaining to operations of the Company under direction of the
Board of Directors. His responsibilities include:

 To plan, formulate and implement strategic policies;

 To build and maintain amicable relations with government departments, trade
associations and regulatory bodies;
 To ensure the achievement of productivity and profitability targets and that the Company
operates efficiently;
 To ensure that the chain of command in the Company is clear to facilitate the maintenance
of discipline, the roles and duties of all managers clearly define their functions to ensure
accountability;
 To ensure that necessary coordination exists between various departments of the
Company to achieve smooth and effective operations;

Privacy and Data Protection

The stakeholders are understandably concerned about how their personal information is used and
shared and they want to feel confident that data communicated or stored online is secure. We
work regularly to enhance robust processes and systems that protect customers’ and employees’
data and to raise awareness about the importance of data protection and privacy through our IT
Governance Policy which is summarized below:

 The members of Management Committee are responsible for required compliance in their
respective functional areas, at all locations.
 The General Manager-IT is responsible for its implementation, maintenance, compliance
and for suggesting new areas as per technology enhancement.
Grievance/Feedback System

We believe in protecting interest of our investors and shareholders. The shareholders give their
feedback in General Meetings and we encourage them to do so to have a good understanding of
their views on our operations and decisions. Accordingly, a “Grievance/ Feedback System” has
been established that provides an avenue for reporting and resolution of all complaints/queries
on timely basis.

A designated e-mail address has been created which is investor.relations@atlashonda.com.pk to

facilitate investors for submission of queries/grievances and feedbacks. In addition, complaints
and suggestions can also be received in writing, duly addressed to Company Secretary. All
grievances/queries are resolved and communicated to the investors on timely basis after due
verification procedures.

Stakeholder Engagement

Being the largest manufacturer of motorcycles in the country, both our manufacturing activities
and our products have significant effect on the environment as well as on diverse groups of
stakeholders. Simultaneously, the views, decisions and actions of these groups have an impact on
the success of our business. We, therefore, engage in an ongoing dialogue regarding sustainability
topics with our stakeholders in relevant markets and at all locations. This allows us to understand
the issues, formulate strategies and deliver according to their expectations.

Materiality Analysis

Taking into account the key topics identified by our stakeholders, we clearly understand our
current status and necessary improvements we should make. We used GRI Standard GRI 101
Foundation 2016 reporting principles of sustainability context, materiality, completeness and
stakeholder inclusiveness, for defining our report contents. These principles have been
consistently applied at varying degrees during identification, prioritization and validation steps,
while defining material topics for this report. Based on the results of the stakeholder engagement,
review of industry specific issues, and internal analysis, a materiality analysis was carried out to
produce a materiality matrix containing the material sustainability issues for our operations.

The materiality matrix below provides the necessary framework for organizing these issues. By
creating and employing this matrix, we confirm the coverage of each issue and clarify where it is
positioned.

Company Atlas Honda Limited (AHL) is a joint venture between the Atlas Group and Honda Motor
Co. Ltd., Japan. The company was created by the merger of Panjdarya Limited and Atlas Autos Ltd.
in 1988. Both these motorcycle manufacturing concerns were established by the Atlas Group. In
addition, a third concern, Atlas Pak Ltd. was taken over by the Government of Bangladesh in 1971
after the fall of Dhaka. AHL manufactures and markets Honda motorcycles in collaboration with
Honda Motor Company. The Company also manufactures various hi-tech components in-house in
collaboration with leading parts manufacturers like Showa Atsumitech, Nippon Denso and Toyo
Denso. Honda motorcycles are by far the largest selling motorcycles in the country with an
unmatched reputation for high quality, reliability and after-sales-service.

AHL has undertaken to develop local manufacturing capabilities to the highest, economically
feasible level. While a major role in localization has been assigned to vendor industries, Atlas has
the country’s largest in-house manufacturing capability at its Karachi and Sheikhupura plants. To
support the production facilities, the company has established an R&D wing and tool making
facilities through CAD/CAM which are growing rapidly in size and function as the company
expands. Atlas has managed to execute 12 Joint Venture/Technical Assistance Agreements
between local vendors and foreign manufacturers for transfer of technology. Besides, Atlas has
directly executed 9 Joint Venture/Technical Assistance Agreements other than Honda.
Things which differentiate AHL from its competitors:
1.
AHL provide two free services after purchasing of its motorcycles.
2.
Because of large number of customers, company provides spare parts of motorcycles easily and
affordably to the customers.

3.
These parts are available from every dealer and at each smart sale point.
4.
Company provides spare parts which are also genuine and lifelong.
5. Company uses to more profit and comfortable and advance technology to their customers.
6. All the AHL company uses the fuel consumption in low range from others motor bikes and get
a good profit to their customers.
Market Segmentation :

Segmentation: Company has a geo-demographic segmentation. Its market is divided into regional
provinces and then in cities of Pakistan e.g. Lahore, Rawalpindi Region, Faisalabad Region, Multan
Region, Central Region, South Region. And basis on age, gender, income, education and non-
education regardless of religion and race. Company provides motorcycles for Males, both
employed and unemployed. Because it is a way of easy transportation every buying power person
purchases these products.

Target market:
“A set of buyers sharing common needs or characteristics that the company decides to serve.”
As discussed above the company has segmental marketing. Company is providing motorcycles.

All over the Pakistan and has a large dealer’s network. Generally its targeted customers are
Youngsters having age 17-26 years. Its products are both for educated and non-educated persons.
Every person who has purchasing power can buy its motorcycle. Motorcycles of different
categories are produced for different income generated people.
We think company has selected best market segmentation. Customers targeted by the company
according to our opinion are highly profitable for the company. Nowadays mostly youngsters are
seemed driving bikes as fashion. So, customers between ages 17 to 26 are keys for company to
generate high profit.

Business Ethics Committee:

The Audit Committee has formed a Business Ethics Committee which consists of members from
the senior management of the company from various areas of operation. The major
responsibilities of the committee include:
To ensure that there is effective communication supporting ethical values, good practices in the
business.

Ensure respect for all individuals.

To conduct regular self-verification through implementation of compliance checklist system.

To assess and monitor implementation of suggestions or concerns raised by the company staff.
To develop mechanisms, like needs analyses, to identify employee’s area Of concern or confusion.

Quality:
High quality motorcycles with lifelong genuine engine and low fuel consumption
Technique. It is consistent in every model.

Branding:
Company has brand name Honda designed on every model, which differentiated Honda
Motorcycles from its competitors. This is the
Symbol which shows that it is a motorcycle which the customer
Need.
Pricing:
Company charges value based pricing. AHL does not keep in mind the cost of manufacturing but
keep in mind the values given to the
Customers. We think that as company is doing its best efforts for
Manufacturing of good and good quality motorcycles, it is the right of company to charge for their
products according to their best manufacturing efforts.

Conclusions and recommendations:

We have concluded that company has good management functions and is successfully providing
the market demand through strong presence is in different market segments. CD 70 has remained
a strong favorite while CG 125 has also made strong growth. CG 125 DLX has also its own stand in
the market and is gaining popularity in the young generation. On the other hand, owing to
increasing distances in urban and semi urban areas, consumers have taken a liking for CD 100 due
to its comfort and powerful drive. So, we recommended AHL to do business in the same way as
they are doing and did in the past.
It is strongly believed that under WTO agreements the developing countries economics will be
seriously affected. The auto industry, and especially the motorcycle industry, is poised for growth.
The results speak for themselves. This is the time to further nurture the industry otherwise a great
opportunity to diversify the industry will be lost to the country.
The reduction in tariff rates liberalization and global image of Pakistan has resulted in substantial
growth in foreign investment and exports. At the same time, there are significant challenges that
can be a threat if not addressed timely, The Company is faced with a great cost increase problem
due to the continuous rise in input raw material especially steel prices, rubber and petroleum
products.