...TOYOTA’S OPERATIONS STRATEGY Lean Manufacturing Toyota’s lean manufacturing has enabled the company to focus on consistent design and responsive approach to production operation. The company’s workforce is self-directed and motivated by output based measures and customer oriented criteria. The concepts of just in time (JIT), Kanban and respect for employees together with expedited problem solving approach (automated error correcting) has enabled the company to pursue lean innovations. Lean manufacturing has enabled Toyota to successfully develop its production systems to include new types of designs. The principles enables Toyota to manage its value stream, identify customer value, implement a “pull” approach that ropes the flow of scarce materials in operations and the overall development of production capability. The success of this ingenious strategy has enabled the company to rise up to global success in the auto industry. While the company still maintains its impressive performance in the application of lean practices, less of its competitive edge can be traced to TPS, more comes from applying lean product development strategies. As a result, lean best practices provide synergy to Toyota Production System. Supply Chain Management Toyota’s Supply chain management is a perfect combination of Porter’s value chain strategy, Kierestsu strategy, and Eliyahu Goldratt’s theory of constraints. Supply chain involves all activities associated with the transformation of...
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...Internationalization at Toyota: A Case Study Examining the internationalization of the Toyota Motor Corporation, this essay argues that the firm’s strategy of localism, pertaining to both design and production, has lain at the core of the firm’s international successes. In this regard, it notes that Toyota learned from early failures, pertaining to export vehicles, and adjusted its strategy in longitude so as to make the most of export opportunities across the international economy. Noting that the pooling of research & development (R&D) resources which exists in Japan is highly relevant to success in this regard, the essay proposes that Toyota’s all-encompassing strategy of localism is responsible for its international success. Concluding, the essay does note that two areas of weakness, pertaining to quality control and emergent market penetration, still plague Toyota’s internationalization ventures. Thus, while the firm is highly successful in this regard, potent internal difficulties problematize its continued success. Toyota’s First Attempts at Internationalization To begin, understanding Toyota’s significant contemporary global posture requires an understanding of the firm’s humble roots. Indeed, in the pre-World War II era, Toyota was a very small automobile manufacturing firm with middling success in the country’s domestic market. Indeed, it is only through the American War Department’s industrial training program that Toyota ultimately succeeded, in the...
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...Adaptation in Toyota…………………………..……………1 Marketing Mix: 7ps…………………………………………………………………..……………1 Standardization or Adaptation of Toyota’s Products……………………1 Standardization or Adaptation of Toyota’s Prices…………………………1 Standardization or Adaptation of Toyota’s Promotions……….………2 Standardization or Adaptation of Toyota’s Places…………………..……2 Standardization or Adaptation of Toyota’s Physical Evidence………2 Standardization or Adaptation of Toyota’s Processes ……………….…3 Standardization or Adaptation of Toyota’s People……………………….3 Conclusion…………………………………………………………………………………………..…4 2. Definition of Internationalization Process Theory (IPT) .4-5 3.Conclusion………………………………………………………………………………………………6 Conclusion……………………………………………………………………………………………..6 References…………………………………………………………………………………………….6 Introduction: Executive Summery This report will be discussing one of the world’s leading brands; Toyota Motor Corporation’s approach to international marketing, and how the company positions itself in the global market via the marketing mix. We will do this by looking at how Toyota standardizes and adapts different aspects of its marketing mix, and applies them to different regions throughout the global market. We will also be discussing the Internationalization Process Theory in order to better understand Toyota’s strategies in approaching the global marketing. Background of the Company Toyota Motor Corporation is an automobile manufacturer based in Japan. It was founded...
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...permitted to expand in the country. This proposal was based on the numerous benefits that exceed the risks associated with the operation. These benefits include the mass production that will upsurge the country’s export and employment, and help produce supporting industries. In 2012, Toyota manufactured 9.75 million vehicles1. In addition, Toyota’s large sales will generate high tax revenue. In 2012, Toyota’s net revenue was $226,106 million2. Moreover, Toyota provides training to individuals that will improve the country’s level of knowledge. Furthermore, Toyota’s competitiveness will influence its rivals to operate in the same country. In addition, Toyota also operates in non-automotive business. Lastly, Toyota can improve its products and services in the country. Company Description: Toyota Motor Corporation, established by Kiichiro Toyota in 1937, is a Japan-based automaker company headquartered in Toyota, Aichi, Japan3. The company offers various types of vehicles such as sedans, minivans, 2BOX cars, sport-utility vehicles, and trucks, as well as car related parts and accessories. Moreover, Toyota extends its corporation to non-automotive business, including housing, financial services, communications, marine and biotechnology4. As of March 31, 2012, Toyota has a total of 325,905 employees. In 2011, Toyota’s net revenue was $228,427 million, while in 2012 its net revenue was $226,106 million. In addition, its net income decreased from $199, 824 million to $199,399 million...
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...TOYOTA MOTOR CORPORATION Toyota Motor Corporation is a famous Japanese multinational corporation and can be taken as the second largest producers of trucks, automobiles, robots, buses and financial services as well. Kiichiro Toyoda is the founder of Toyota who was popular for inventing the automatic loom. The spirit of creation and research was inherited by Kiichiro from his father and thus he spends his entire life in the spirit of manufacturing cars. Many years of hard work finally made Kiichiro in completing the A1 prototype vehicle in the year of 1935, which is said to be the beginning of creation of Toyota Motors Corporation. The company's first Type A Engine manufactured in the year 1934 was then used in the first Model A1 passenger car manufactured in the year 1935 and the G1 truck which was later manufactured in the year 1935 all which actually led to the AA Model passenger car in the year 1936. In addition to the car business, the company works on textile business as well where they made automatic loom and which is now working fully computerized and their electric sewing machines are available all over the world. The company now has a number of factories around the world where they manufacture and assemble vehicles within the local market for distribution. Toyota factories are located in countries such as Australia, United Kingdom, Canada, Czech Republic, Poland, United States, France, Philippines, Vietnam, China, Thailand, Malaysia, Mexico, India, Pakistan, Indonesia...
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...address: martin.pradeau@bordeaux.iseg.fr Course Code: 1A Risk Management I. Company Mission and Strategy 3 A. Strategy 3 B. A strong leader 4 C. A culture of performance 4 D. A strategy for long-term innovation 4 II. Risk Identification 5 A. Very competitive market 5 B. . Risk of suppliers 6 C. Risk of governmental regulations 6 D. Risk of digital and information technologies 6 E. Risk of innovation competition 6 III. Risk Implications 7 A. Very competitive market 7 B. Risk of suppliers 7 C. Risk of governmental regulations 8 D. Risk of digital and information technologies 8 E. Risk of innovation competition 8 IV. Risk Management Process 9 A. Very competitive market: 9 B. Risk of suppliers 9 C. Risk of governmental regulations 9 D. Risk of digital and information technologies 10 E. Risk of innovation competition 10 V. Benefits of ERM 10 VI. RISK ORGANIZATION 11 VII. Organizational Culture 13 VIII. Recommendations 14 Company Mission and Strategy The main source used for this work was the Toyota’s Annual Report. http://www.toyota-global.com/investors/ir_library/annual/pdf/2013/ Toyota, or officially Toyota Motor Corporation, is a car manufacturer based in Toyota City in Japan. The company operates in about 170 countries over the world. The company employs about 320.000 people and has production plants in every continent. This major company is the leader in the automotive industry with a turnover...
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...Toyota’s Globalization Strategies Identify what ‘drivers’ have been influential in Toyota’s pursuit of globalization Toyota’s journey to become a global automotive firm has had a number of key drivers. The leadership of first Sakichi and Kiichiro Toyada in the early days, and then Fujio Cho in the later years have been crucial in Toyota developing the ambition to succeed on a global basis. Of the ‘drivers’ of globalization discussed in chapter three, some have played a more important role others. Cultural homogenization has played some part as populations in emerging economies, in particular, aspire to car ownership. Countries like China, India and Brazil are seen as huge potential markets for Toyota as an increasing middle class seek car ownership to affirm their status. Economies of scale and scope was a significant driver as Toyota utilized scale economies by opening manufacturing plants in low-cost countries, and exploited scope economies by sharing significant parts across product lines and with other manufacturers in joint ventures. Technological developments had some effect, but Toyota took the decision to centralize these activities in its global operations in its third globalization program. Deregulation and the lowering of trade barriers gets little mention in the case study, but was influential in that how China opened up its markets to outsiders, in turn, shaped how Toyota moved into that market through the setting up of alliances and joint ventures...
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...TOYOTA’S BUSINESS STRATEGIES IN INTERNATIONAL MARKETS Assist. Mihaela Funaru Ph. D Student University of Braşov Faculty of Economics and Business Administration Braşov, Romania Abstract:Toyota’s success both on the Japanese market and international market due to its desire to make products with high quality. The Japanese believe that nothing is so good that it can not be improved, so they constantly struggle to increase the quality of everything they do. This attitude can be expressed by a single word:”Kaizen”. It means „continuous improvement” and is the key word to guide them towards perfection. This paper presents the strategies of Toyota Company in their attempt to gain supremacy in the international market. JEL classification: M16 Key words: global strategy; international markets; technological innovation; hybrid systems; kaizen 1. TOYOTA MOTOR COMPANY Toyota Motor Corporation (TMC) is a multinational company that produces cars, trucks, buses and robots, with headquarters in Toyota City, Japan. Toyota is the largest car manufacturer in Asia and second largest producer. Toyota is one of the three major Asian car manufacturers competing U.S. producers on the world market, the other two are Nissan Motors and Honda Motor. Also the company provides financial services through its subsidiary, Toyota Financial Services, and works in other fields. Automotive products are sold under the names Toyota, Scion and Lexus. Toyota owns a majority stake in Daihatsu...
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...Table of Contents What are the company’s mission and current strategies? Risk Identifications and Implications Risk Management process Appointment of Risk Management Personnel: Actions of the Risk Management Committee Basic Approach to Internal Controls Business Continuity Management (BCM) at Toyota Risk Organization Risk management system Improve risk management Creation of the Emergency Operation Centre Creation of Global Large-Scale Disaster Countermeasure Committee Improving information telecommunication system in case of an emergency CSR Management Organizational Culture If you were hired as an Advisor: What recommendations or changes would you make? How would you implement these recommendations or changes? What are the company’s mission and current strategies? Toyota has for mission to be the first choice for all customers looking for materials handling solutions and to be widely recognized for their innovative products and services with a total respect for society. Toyota tries to build trust and confidence with their customers by delivering outstanding quality products and services which ass real value to their businesses. Toyota respects the expectations and ambitions of employees, stakeholders and suppliers through a constant search to improve. Toyota aims to achieve long-term and stable growth in harmony with the environment, the global economy, the local communities it serve and its stakeholders. The impact of the high Australia dollar...
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...TOYOTA MOTOR COMPANY: AN IN-DEPTH STUDY OF THE SUCCESS OF THE KAIZEN PHILOSOPHY Toyota Motor Company recently claimed number one spot in global sales in the auto industry. Many practitioners of the “Toyota Way” concur that Toyota is the model company to imitate, but recent years Toyota has seen a decline in their core competence of quality control. Weaknesses to social and environmental fluctuations have had negative effects on Toyota’s continued profitability. Analysis of strategy and execution precedes recommendations for improving Toyota’s implementation of its famed kaizen philosophy. CURRENT SITUATION Background Toyota Motor Corporation (NYSE: TM) is a multinational corporation with headquarters in Japan. They are the world’s most profitable automaker, now having 15% market share in the U.S. (Taylor, 2007) They sold 2.5 million cars and trucks last year alone, causing them to displace Chrysler’s Big Three position in car sales in the U.S. Soon Toyota estimates it will beat out Ford’s sales, and not too distant in the future it will beat GM as well. Toyota has an admirable presence in the U.S., and even Fortune magazine has named Toyota as one of America’s Most Admired Companies—twice in a row. Toyota has returned the gratitude from the U.S. by deciding to enter in to NASCAR racing, and also by introducing the American-targeted Toyota Tundra full-sized pick-up truck. Profitability By no means does Toyota rely solely on the U.S., as their ability to turn...
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...Toyota - The Global Automobile Manufacturing Industry (Cars) | | Contents History of Toyota 3 Introduction: 4 Toyota’s internationalisation strategy, internal /external triggers and an analysis and evaluation of those strategies and methods 5 The extent to which Toyota’s national environment contributed to its success as a multinational organisation using Michael Porter’s National Diamond Framework (1990) 7 Toyota and life cycle models: 8 Verification and Validation: Strategy 10 Conclusion 13 History of Toyota Toyota one of the largest car manufacturer’s in the world was bombarded with a series of issues in the last decade with multiple lawsuits causing the company millions of dollars in losses. An organization which was founded by Kiichiro Toyoda in 1933 started off producing passenger cars and then in 1937 focused solely on truck production for the Imperial Japanese army. In the early 1950’s Toyota was on the verge of bankruptcy when it pulled through by obtaining an order of more than 5,000 vehicles from the U.S. military for its war efforts in Korea. This then was the beginning and the opening for Toyota into the U.S. Market. In 1957 Toyota established its first sales, marketing and distribution subsidiary in the U.S., called Toyota Motors Sales Inc (TMS). In 1982 Toyota Motor Corporation formed a joined venture with General Motors, called NUMMI (New United Motor Manufacturing, Inc.) and began its operations in Fremont, California. Toyota’s business...
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...A Brief Understanding of IBS ‐‐A Case Study of Toyota A Brief Understanding of International Business Strategy --A Case Study of Toyota by Peter LIU, peterliu@acculine‐mfg.com MSc International Business P14B45 International Business Strategy Lecturer: Dr Yee Kwan Tang Sponsored by 10 May 2010 Acculine Precision Manufacturing Company Tel: 0086-574-28887315, Fax: 0086-574-28875303, Web: www.acculine-mfg.com, email: info@acculine-mfg.com A Brief Understanding of IBS --A Case Study of Toyota Page 1 / 12 Content Introduction ........................................................................................................................... 2 Basic Concept of International Business Strategy ................................................................. 2 Brief Background of The World Auto Industry .................................................................... 4 Brief Background of Toyota .................................................................................................. 4 IBS of Toyota ........................................................................................................................ 6 Entry to US Market ........................................................................................................... 7 Americanization as A Way of Localization ...................................................................... 8 Recommendations...
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...established an automobile division within an already successful Japanese company, Toyoda Automatic Loom Works, Ltd., a manufacturer of textile looms. In 1935, Toyota had established its first dealership and produced their first vehicle. In 1937, the division became an independent company within the group and became known as Toyota Motor Corporation (TMC). In 1957, they had imported their first passenger car from Japan into the United States. In1960’s, Toyota was clearly in the path to becoming a multinational corporation by opening a vehicle plant in Brazil and their first Asian vehicle plant in Thailand. In 1989, TOYOTA branched out by established a luxury line of vehicles with debut of LEXUS LS 400 and the ES250. In 1999, Total vehicle production reached 100 million in Japan. In 2003, they became the world’s number 2 in terms of annual sales, as they overtook Ford Motor Company and coming behind General Motor. In 2008-2010 sales of vehicles is the first in the world for 3 consecutive years. 2|Page Business Overview Toyota sells its vehicles in more than 170 countries and regions. The company’s primary markets for its automobiles are Japan, North America, Europe and Asia. Toyota has 51 vehicle manufacturing, assembly plants in 26 countries around the world and 12 research, development and design centers and employs approximately 310,000 personnel. Toyota sold 8.52 million vehicles in fiscal 2007 on a consolidated basis. The company...
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...Case Study 2 Toyota’s Globalization Strategies Suggested case discussion questions Q1 Identify what ‘drivers’ have been influential in Toyota’s pursuit of globalization Toyota’s journey to become a global automotive firm has had a number of key drivers. Strong family values based leadership: The leadership of first Sakichi and Kiichiro Toyada in the early days, and then Fujio Cho in the later years have been crucial in Toyota developing the ambition to succeed on a global basis. Of the ‘drivers’ of globalization discussed in chapter three, some have played a more important role others. Culture: Cultural homogenization has played some part as populations in emerging economies, in particular, aspire to car ownership. Countries like China, India and Brazil are seen as huge potential markets for Toyota Target segmentation clear: Increasing middle class seek car ownership to affirm their status. Economies of scale and scope: Significant driver as Toyota utilized scale economies by opening manufacturing plants in low-cost countries, and exploited scope economies by sharing significant parts across product lines and with other manufacturers in joint ventures. Centralise: Toyota took the decision to centralize these activities in its global operations in its third globalization program. Market factors: Deregulation and the lowering of trade barriers gets little mention in the case study, but was influential in that how China opened up its markets to outsiders, in...
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...A firm’s external environment involves both geographic factors and cultural elements. Location and resources are crucial geographic factors influencing both national and corporate success, with population characteristics and institutional arrangements making up the most meaningful components of the cultural elements affecting both the success of firms and of nations. Resources, population and institutional factors are dynamic, manifesting a number of feedback loops. For example, institutional incentives stimulate technological discoveries, which, in turn, enable firms to pursue resourcesubstitution policies, thereby modifying production possibilities. During the period after the second world war, at least through the 1980s, Japan and Japanese firms seemed to have successfully adapted themselves to the competitive forces of emerging global markets. In spite of a poor natural resource base, a dramatically altered set of institutional arrangements (a combination of democratic government, free-markets and the rule of law) created a propitious atmosphere for innovative behaviour. Nowhere were adaptations to this altered environment more apparent than in the Japanese automobile and semiconductor industries and no firm was more successful, admired and emulated than Toyota Motor Corporation. Indicative of these changes is a Fortune magazine article, published several years ago, which provided a popular assessment of the successes of Toyota. It reported that Toyota was named the most...
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