For operating and developing a business is not easy especially for Toyota. Toyota is a company in the automotive industry so making a major decision is usually taken very carefully, such as building a car factory in Europe, it is not easy. First, Toyota wants to develop and expands its business on a large range really difficult because of the capital for the automotive industry is very large. North America is the largest foreign market for more than 60% production carried out at the local factory and foreign market is the second largest in Europe with more than 26% of products are manufactured and sold here. Toyota visible growth potential in this market is a matter of urgency and necessity, they have built a new factory here.
Toyota coordinates operations in all its subsidiaries across the world to ensure that there is a smooth running. Most of the manufacturing activities are done centrally and the spare parts are transferred to respective subsidiaries for assembling. This is done to minimize the costs and ensure uniformity. This, however, reduces the innovative spirit of the employees located in the subsidiaries as they are mainly just involved in the assembly and not actual manufacturing. The job satisfaction and morale of these employees may also be low.
Toyota emphasizes that how the company extended sustainability rather than short-term gain. (Rouse, 2015) Hence, Toyota thinks that work, improve and align the whole organization constantly is a long term way to adapt the environmental. They know and take the responsibility for their conduct and maintain and improve the skills that enable they to produce added value. They make effect in generates value for the consumer, society, and the economy. Toyota increase the customer value by fulfilling the consumer required.
INTRODUCTION: Toyota Motor Corporation is a Japanese automobile manufacturer. It is part of the Toyota Group, one of the largest Multi-National Corporations in the world. Its headquarters is located in Toyota, Aichi, Japan. In terms of production, it was ahead of Volkswagen and General Motors in 2012. It has reported on its financial statements that it has 540 subsidiaries and 226 affiliates.
An example of one threat is the government regulations that affect their profits. In Document E, Toyota is aware that “the strong dollar made exporting vehicles and components from its U.S operations are less profitable...,” It is a big challenge that Toyota has to deal with because it can be difficult to make a profit in North America because exporting cars and trucks can be expensive. As a result of these external issues, Toyota should have more factories in North America. To add to the issue, the value of the yen is decreasing which directly challenges the profits they make each year. “Toyotas wariness highlights the uncertainties it faces some of its biggest markets and the fact that much of its profit rise is being driven by the weak yen.” (Document E).
This strategy allows them to design or develop cars that are lighter, more fuel-efficient and packed with new technology. They have accomplished higher quality at lower expenses by making standardized, multipurpose components. Additionally the reduction in expense has uplifted the worth and strengthens the competitiveness of their product. To achieve this, Toyota not only required the support from its employees but it also required escalated coordination with its supplier. This strategy is unique when it comes to automobile industries its main focus is not to compete with other car makers but to conquer customers with awesome products and services to get maximum customer satisfaction.
Other than that, the third principle shows that Toyota can optimize the Kanban system to improve the smooth flow of work and collect metrics to analyze flow as well as get leading indicators of future problem through analyzing the flow of work. The last principle is related with the continuous improvement of Kanban. The employees of Toyota can measuretheir effectiveness by tracking flow, quality, throughput, lead times and more. Experiments and analysis can change the system to improve the team’s effectiveness. On the other hand, Toyota has provided six rules for an effective Kanban system which include Kanban will specify the withdraw items which processed by customer (downstream) in precise amount.
_____________________________________________________________________________ Globalizing the Toyota Way There are many ways which Toyota has been doing this quite successfully: 1.Coordinator System 2. Careful Selection 3. Trips to Japan. 4. Chief engineer system.
Toyota → Being a leading firm in the automotive industry, Toyota therefore needs to target a fair few consumer groups and answer to what they’re looking for based on their needs, lifestyle, etc. This lead to the company having a target market, which is varied and based their consumers’ preferences and the local and regional market condition. Toyota is, like said earlier, and international firm with branches all around the world, which means that they have a large variety of products. In their product mix is Toyota automobiles, Lexus automobiles, engines, and spare parts, which are all part of Toyota Motors; the two main ones listed here are naturally Toyota automobiles (for everyday use but with different aims) and Lexus automobiles, for the