Global Business Operations of Honeywell International

Global Business Operations of Honeywell International.


Honeywell International Inc. is an American multinational company which produces various commercial and consumer products, aerospace, and engineering services, for their clients who range from private consumers to the major corporation and their government. The main operational business units of the company are known as Automation and Control Solutions (ACS), Strategic Business Unit- Aerospace and Performance Materials and Technologies (PMT). 
Industry    Conglomerate
Founder    Mark C. Honeywell
Headquarters    Morris Plains, New Jersey, United States
Founded    1906, Wabash, Indiana
The company is the leading provider of software solutions for the process industries worldwide. These software solutions help to tackle complex problems by using the unique outcome-based consulting approach which can support better process design, operations excellence, process history and analytics, enterprise collaboration and better process designs. These software solutions enable all their users in making smarter and faster decisions for improving reliability, safety, efficiency and sustainability. (Honeywell., 2016).
Honeywell is a USA based manufacturer of consumer products, aerospace, and engineering services. The Honeywell Aerospace services and products are offered for almost every aircraft type.  Honeywell has various brands that the retail and commercial consumers are able to recognize which includes Garrett turbochargers and a line of home thermostats. Additionally, Honeywell also produces home consumer products like sensors, security alarms, thermostats, air cleaners and dehumidifiers. Further the company licenses its brand name for the use of various retail products that are manufactured by their partners like heaters, air conditioners, fans, security safes, paper shredders, fans, home generators. The unique offering by Honeywell Aerospace for aviation and aerospace needs are mentioned below:
1.)    Actuation
2.)    Air and Thermal Management
3.)    Auxiliary Power Units
4.)    BendixKing
5.)    Cabin Management and Entertainment
6.)    Cockpit Systems and Displays
7.)    Cryogenic Cooling Solutions
8.)    Electric Power
9.)    Engines
10.)    Health and Usage Monitoring
11.)    Lighting
12.)    Microelectronics
13.)    Navigation and Radios
14.)    Recorders and Transmitters
15.)    Satellite Communications
16.)    Sensors
17.)    Terrain and traffic awareness
18.)    Vehicle turbochargers
19.)    Weather Radars
20.)    Wheel and braking systems
The mission of the organization is the creation of values of shareholders by using control technology which saves energy, improves productivity, protects the environment, promotes peace and increases safety and comfort. Whereas the company has a vision of continuously improving the way they do things so as to capture greater value for the company as well as the customers.
The company operates at about 1,250 sites in around 70 countries and in 2015, it was estimated that around 53% of the company's sales were generated outside the United States of America. Honeywell has branch offices all over the world on the basis of its operational level and is operative in countries like China, Malaysia, Germany, the USA, Italy, Japan, India, Mexico, etc. With high success in the USA market in the initial years of its establishment, the company expanded its business further to the emerging markets and chose important bases. The following are the main branches of Honeywell by their operational business units. (China Honeywell,2016,)

PESTLE Analysis 

PESTLE Analysis is a tool based on marketing principles that are used to track the operating environment of the organization so that they can launch their products and services. This strategic management tool helps to gauge the macro-environmental factor. The full form of PESTLE is as P for Political, E for Economic, S for Social, T for Technological, L for Legal and E for Environmental. 
Based on my knowledge, PESTLE Analysis of Honeywell is as follows:

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Honeywell China is impacted by political factors in the United States and even abroad. The company covers a wide range of geographical regions; it also caters to countries with the extremely different political system. The company has been under pressure when their components were used in bombing incidents of Palestinian home during the Israeli attack on Gaza ("Honeywell components used to bomb Gaza last Summer | Corporate Watch", 2015). 
The considerations of boycotting the company in Israel have going on. In China, the company is gaining high revenue due to large size and skilled talent. This region is stable and therefore highly appropriate for the expansion plans. The country furthermore has no regulation regarding the validation of electronic contracts, recognition of digital signatures, etc.


The Chinese market has high size and has been seeing high growth and development. The region is proving out to be a highly important region for industries. Over years, the economy of China has been experiencing a significant GDP growth rate. Reports have been claiming that if China grows at this rate, it will surpass US GDP. The country has abundant and skilled labor to help the company with potential urban growth. The high GDP rate of China has been helpful or the citizen for adding more and more values to the society which has increased the purchasing power of the consumers. Further, the labor cost in China is also extremely low which helps the company to hire workers at a cheaper price (The Future for MNCs in China, 2012). The only worrying trends of the company is high property price and high inflation rate. 


The cultural and social aspect if China plays a vital role due to the constant change of demographics. The age distribution and population growth fluctuate. The social behavior and cultural values are altered, and even the size of the family also impacts the decision of the company. Based on the Geert Hofstede’s value dimensions China has a collectivistic culture ("Dimensions - Geert Hofstede", 2016). China's literacy rate is approximately 90%, and therefore, the majority of the nation being literate make a skilled labor. Honeywell China deals with aerospace, automation, etc. and therefore the business does not have a much social impact on the business plans.


The company deals with commercial and consumer products, aerospace and engineering services and therefore the designs and standards have been evolving as much as possible. The technological advancements have been guiding the company to sell higher quality at a cheaper price to aid its customers. Technology being the deciding factor of the product line of the business and has a great impact on the business plan of the company. 
The company deals with commercial and consumer products, aerospace and engineering services. Therefore, the company needs to follow the rules and regulations that are set by the government by the local Civil Defense of the country. The company also makes sure that all the products are as per the guidelines that are set by the local government so as to carry out the operational process with any legal trouble. 
The company has seen various changes in the last two decades. The company is following all the rules and regulations for the development of its business, and the company has also been experiencing some detrimental changes. The legal framework helps to play a vital role in the overall expansion of the business. The company, therefore, needs to follow all the regulations for complying with the legal principles for being stable in China. 


The environmental legislation of China has strengthened and been working towards providing a hand towards the stemming of the environmental deterioration. Honeywell has constantly been working towards less energy use, energy production and on greenhouse gasses reduction. The company is trying to obscure the relationship between the specific operation and energy consumption by working on its process of manufacturing operations. The company is effortlessly working on improving its products, services and even the methodologies for improving energy efficiency. The company has further developed their own portfolio of the products which can be used for achieving the energy visibility for further optimizing energy use (Honeywell and Energy Efficiency: Strategy Before Solutions, 2009). 
After going through the operation of the company in detail, the suggested expansion plans for the company can be as follows:  
1.)    Make sure that their products are meeting the local standards;
2.)    The product offering can be widened;
3.)    Make sure that the products are safe otherwise; the company would have to stop manufacturing them as it did to their mercury switches;
4.)    Eco-friendly measures must be adopted;
5.)    Reduce the prices with high quality
6.)    The approach must be customer-oriented along with being eco-friendly in nature.
7.)    Manufacture of the maiming weapons like cluster bomb must only do on the insistence of the government bodies and should not be in reach of the local people.
8.)    Work towards renewable energy sources.

Ethical values 

The ethical values are highly important for the existing company or business setup in the current market and even during the expansion of the company or business setup. Therefore, it is very critical to cultivate the work ethics in the workforce working for the organization from the lower level to the top-level management along with the labor force. The business ethics affect the reputation of the company and helps to give the company an edge when comparing to the other business and the individual investors. The workers are therefore told to act ethically and responsible for benefiting the entire organization. The ethical behavior helps to enhance the image of the company and also helps to attain success in the market. For retaining this positive image, the company must be highly committed to operating on the ethical foundations when concerned with the treatment of the employees and further helps in making fair market practices. When business ethics are being followed by the management, then the employees also strive to work forward in order to benefit the organization. The employees when to work as per the business ethics they help to increase the productivity and the overall morale of the employees. The whole company benefits when the employees complete their work with the utmost honesty and integrity. The employees who work with their company which demands higher sets of business ethics, all the aspects relating to the operational functions of the company are likely to show high values and perform their duties and are highly inclined towards their company with utmost loyalty (Vogel, 1991).
When this foundation of the ethical behavior is built, it helps in the construction of the highly effective solution for the company which helps it to retain its best talents with lower turnover rates. This, in turn, increases the reputation of the company in the market, and the individuals are attracted to working in the organization. This helps the company to gain the best talents with a cordial bond between all the workers working in the institution ultimately providing stability to the organization. (Moon, 2001)
It is observed that the when a company fulfills all the needs of its employees like appropriate pay, holidays with various benefits to its employees that working abilities of the employees are increased and lead to low turnover rate as the employees do not look for better opportunities, and he does not try to work unethically and in turn helps to contributes towards the success of the organization. Therefore, one should always try to
1.)    Pay their employees suitably according to his capabilities and responsibilities
2.)    The full opportunity for the employees to upgrade while working for the organization
3.)    Provide various other benefits for the employees. 
4.)    Ascertain that all the workers are fully aware of their roles and responsibilities to the company and they should strive together for achieving similar goals and objectives for the overall betterment and success of the company. 


China. (2016). Honeywell. Retrieved 30 May 2016, from
Dimensions - Geert Hofstede. (2016). Retrieved 31 May 2016, from
Honeywell and Energy Efficiency: Strategy Before Solutions. (2009) (1st ed.). Retrieved from
Honeywell components used to bomb Gaza last Summer | Corporate Watch. (2015). Retrieved 31 May 2016, from
Honeywell. (2016). Honeywell. Retrieved 30 May 2016, from
Moon, C. (2001). Business ethics. London: Economist.
The Future for MNCs in China. (2012) (1st ed., p. 20). China. Retrieved from
Vogel, D. (1991). The Ethical Roots of Business Ethics. Business Ethics Quarterly, 1(1), 101.

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