The major ethical issue faced by the company was due to the process of lean manufacturing. Lean manufacturing first used in Toyota Motor Corp. factories help manufacturers strip down production costs and get rid of waste . One of the common processes in lean manufacturing is standardizing parts across different models. Lean manufacturing works for companies to make the production methods more comprehensible. The key to prevent quality-control problems from widely used parts is a combination of good design and adequate testing .
It’s clear that if company wants to have a profit they should offer cars by a retail price which was essentially unachievable by a company like GM, whether it builds inside or outside of Russia. Obviously, that if plants are located abroad company will have extra costs for bringing and transportation finishing products, pay for duties etc. In this connection GM was required this partnership
Considering that Muda involves unnecessary labour cost, time cost, storage cost, and material cost, Toyota concentrates on removing Muda to create greater efficiency. As Toyota Production System pursues the most efficient operation through waste removal, Toyota has classified the non-value adding activities in seven categories. These are also known as seven deadly wastes Seven Deadly Wastes 1. Defects This is a waste occurred by rectifying defective products. Correcting and repairing faulty products require additional costs of labour, material, and machines.
They had time barrier- which affected the managers to criss-cross the Atlantic in stream for meetings and works to be done which drives ways to more expenses that were not necessary. The firm still continued to expand by announcing deal with loss making Mitsubishi Motors of Japan and 10% stake with Hyundai of South Korea, thinking it would strengthen Daimler Chrysler’s plan for small cars. They had still not decided with the head offices of the merged company, they were thinking to have two head offices which was not cost
The basic philosophy of elimination of waste and high quality are principles that resonate with our philosophy of sustainable manufacturing. Lean Manufacturing leads to reduction in lead time and inventory, TQM, Total Productive Maintenance, Improved Material Handling, Poka Yoka (Mistake Proofing). All these practices contribute hugely to sustainable manufacturing. A Framework for Integrating Sustainability in the Manufacturing Process Majorly, there are six elements in a successful sustainability plan: waste, water, energy (established elements) and management structure (qualifying element) supply chains, ecosystem management (advanced elements). Many companies have initiated efforts towards sustainability but they are yet to become sustainable enterprises.
The main problem that the Mercedes - Benz would have faced if they had remained a niche player selling 'world cars' to the luxury market worldwide , would be the stiff threat of competitions from the Japanese automobile industry as they produced luxury cars of good quality at cheaper rates with added features. Another problem would be the decline automobile sector. They won't be able to earn more profits if they are marketing their products in only one segment. Question 2 What were the key approaches to Fords model of Globalization and Internationalization? The key Characteristics of Fords approach to Globalization • Introduced Assembly line leading to mass production which resulted in low cost production , high volume and rapidly expanded its markets • Set up Sales branch in France , further expanding its market to European countries.
LOSING CORE COMPETENCIES While looking to cut cost by outsourcing a product or service to a different organization companies especially big ones have to take care and extra precautions. In the past, Chrysler used to view engines in cars as just another component and outsourced it to various Japanese companies. Outsourcing is thus a two bladed sword if not handled properly. While outsourcing gives a short term competitive advantage it contributes very little in developing people skills which helps in creating core competency. Sometimes lack of a clear framework and lack of forecasting the state of the market can make companies forsake attractive opportunities.
(http://www.nissan-global.com) Although Nissan has recorded a success in automobile technology but rather it forget to focus also on style /design, its products were too old to compete with others in the market (for example, micra in Europe)although micra (March) was nine years old and only a few updates it still competed for 25% of the Japanese market and for the similar portion of European market( Ghosn,2002) and most product lines weren’t much different from micra suffered from similar problems hence the reason for its financial difficulty. Following the alliance Nissan needed Renault’s cash to reduce its debt and Renault wanted to learn from Nissan’s successful story in the North America which was essential for Renault to expand its market base.Renault paid off Nissan’s debt in return of 36.6% equity stake in the company. However this didn’t mean Nissan had regained its profitability,Nissan had retrieved itself from the Keiretsu, many people thought the cross sharing of equalities of both partners would jeopardize the relationships between Nissan and its suppliers, but the relationships became even more stronger.
In order to fight carbon dioxide emission, the company has introduce less fuel efficient cars and making the brand the most ethical multinational corporation in the world according to ‘’Covalence Ethical Ranking’’ which ranks cars based on Governance, Economic, Environment, Labour, Human Rights, Society and product. (Covalence SA, 2013) In the field of Advertisement, the Japanese automaker has held emphasise in the positive experiences of ownership and vehicle quality. Ownership experiences has been seen in slogans such as "You asked for it! You got it!" (1975–1979), "Oh, what a feeling!"
First Phase: Maruti Udyog as a Monopoly: In the monopoly phase the main focus of the company was to produce a small car (people’s car) at a reasonable price. Since MUL being an Indian Government firm, SMC was not comfortable sharing technology with them. So, there was no R&D in India and they are focusing to produce small segment cars in India. MUL was highly committed to target delivery and the employees felt empowered as the work was challenging. The employees in the number of 1000