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Toyota Motor Corporation strategic case
Toyota Motor Corporation strategic case
Toyota Motor Corporation strategic case
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2.0 COMPANY OVERVIEW
2.1 Company’s background
Toyota Motor Corporation was founded in year 1937, August 28 by Kichiro Toyoda. His decision to take Toyoda Loom Works into automobile manufacturing creates Toyota Motor Corporation, the world's largest automobile manufacturer .Toyota Motor Corporation Limited. (TMC) was first established as a separated company from Toyoda Automobile Loom work which is leading in manufacturing of weaving machinery. Sakichi Toyoda, who is known as the king of investors is the head of Toyota Automobile Loom work.
In 1950, the giant automaker faced its one and only strike. This event, however, gave Toyota an important philosophy, supplied to its labour and management system which assisted Toyota to achieved mutual growth and success in both domestic and overseas markets. Today, this philosophy is very significant to the structure of Toyota.
Production system of Toyota was improved in the late 1950s, establishing the 'Toyota Production System. This system became the key factor in the reduction of inventories and defect in the plants of Toyota and its suppliers. It also strengthened Toyota’s entire operations worldwide. In 1947, it launched its first small cars namely ‘Toyopet’. Toyota started its operation outside Japan in 1959 in Brazil and continued with developing network of foreign plants.
Toyota celebrated its 60th anniversary in August 1997. It believes that its domestic production can provide customers with the productions they need, giving it the stable and long-term development. It also has a development facilities and global network of design and research, consisting Japan, Europe, North America markets.
Toyota is at rank 8 in fortune worldwide 500 2007 companies of the world Toyota Mot...
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...g industry in Malaysia.
Automotive Industries Sendirian Berhad (AISB) is the Leading OEM maker for Exhaust System & Reinforcement Instrument Panel. AISB is committed to Research & Development (R&D) and a culture of excellence. Sankei Industry of Japan began a permanent R&D partnership with AISB’s in 1985. In addition, AISB has applied the Toyota Production System (TPS) initiatives to enhance the efficiency. AISB is also associating with 7 TA partners; mainly worldwide exhaust makers from Japan & USA for technical development of exhaust system.
Toyota Boshoku UMW Sdn. Bhd. (TBU), is a joint venture company with Toyota Boshoku Corporation, Japan. By using the Just-in-Time (JIT) method, TBU focuses on manufacturing and assembling high quality and interior parts, cost-effective car seats, door trims for all Toyota cars and Hino commercial vehicles assembled by ASSB.
Toyota recently announced it seeks to become a much more efficient and effective automobile manufacturer in the extremely competitive automobile industry. This particular
The world saw Toyota take over America by storm, they offered better, faster, more comfortable and more efficient cars and Americans came to buy cars from them in droves.
With the objective of manufacturing the vehicles in the most effective way and supplying the vehicles to the customers on time. The Toyota Production System (TPS) governs on two theories, namely "Jidoka" implying humanized automation that discovers process glitches and product shortcomings so that the equipment stops straight away averting further flawed production. The second concept of "Just-in-Time"(JIT) shows in a continuous flow, each procedure will only yield the fixed quantity as required by the succeeding process. During the commencement of Toyota, the market demand was at the peak. They touched a limit where they couldn 't meet these escalating demands. In a conventional way, they positioned all the machines together. However, after the implementation of production simulator with all the support from the people and management, they altered the layout of the entire plant as per their process flow. This made their work easier in terms of carrying parts back and forth in between the processes. With the vision of multi-tasking, each worker was executing on more than one machine. These lead to the
Lean assembling keeps Toyota ' generation expenses low. Reaction is the capacity to venture in every business corner they need, which issues them a tremendous focused edge. Next to this current Toyota 's autos are viewed as dependable and high quality.Combining these four interesting highlights: High Quality, unwavering quality, capacity to accomplish each fascinating specialty showcase accordingly taking care of demand and asking a reasonable cost empowered Toyota to develop much greater than alternate
Toyota is a pioneer of the LEAN manufacturing principle. Lean, as a process, is a way to add value to customers while minimizing waste (LEI, 2011). It can also be thought of in terms of flow, which is how Toyota likes to think of it. It is simply a process of decision making where the problems tend to be thought of in terms of flow, reducing starts and stops or unnecessary motion increases flow, reducing waste.
Toyota Motor Corporation (TMC) was founded in Japan in 1937 by Sakichi Toyoda and is now considered one of the “giants” of the automotive industry. In the first year TMC produced 4013 units. In July 2012 - 75 years later - TMC “worldwide cumulative production tops 200 million units”. As reported by Lowry W. (April 29, 2014), in 2013, TMC is producing cars, trucks, and buses in five continents and leads the world market with 11.8% of share ahead of General Motors and Volkswagen. Financially, (and except for 2008) results have been very positive during the new century. From the FY 2014 Financial Report (May 8, 2014), the shareholder dividend as per March 2014 was 165 yen per share (Total Amount of Payment: 522.9 billion yen, Payout Ratio: 28.7%).
Toyota seeks to revitalize their venture spirit by reforming their consciousness in light of the Global Vision through other efforts. Toyota Company has mostly focusing on the areas of development, design and procurement. As an example Toyota has been creating innovative synthesis of development and design through a new car making policy building better cars. By introducing different cars that meet local needs in rapidly growing emerging markets, the executive seeks on an increase in the share of Toyota global sales made up by emerging
Toyota is one of the leading Japanese automobile manufacturing organizations in today’s era. In order to maintain their worldwide leadership they are able to maintain their specific forms of manufacturing system. Toyota is technology-based, comprehensive production management system with the primary goals of increasing productivity and reducing costs (Monden 1983).According to this Toyota is focused on providing the best within the budget. Among many of the development process I think simultaneous engineering is the vital one that Toyota follows. Toyota had been integrating simultaneous engineering for several years. Toyota plans, most machine, new or old, are equipped with such de- vices as well as various safety devices, fixed-position stopping, the full-work sys- tem, and baka-yoke fool proofing systems to prevent defective products. In this way, human intelligence, or human touch, is given to the machines.” (Ohno 1988, pp. 4-6). Production system of Toyota is the basis for much of the “Lean Production” movement and has dominated manufacturing trend for many years. Toyota’s performance is based on tools and quality improvement methods .Tools and techniques are one part while quality control, total quality control, business management techniques are another part to make Toyota better than the competitors. Manufacturing and production engineers use computer technology from early beginning for concept development and designing of their product which is less than 12 months or even less for derivative vehicle. Hence, the product development process of Toyota is more likely similar to that of Black and Decker which use engineering, industrial design, model making and prototyping, testing and computer ...
Toyota’s uses both differentiation and low cost as generic strategies to try and gain a competitive advantage over their competitors in the automotive industry. The market scope that Toyota uses is a broad one that encompasses nearly every type of customer that is in the market to purchase an automobile. Toyota is able to target such a large market because they have something for everyone. Toyota has four wheel drive trucks and SUVs for the outdoor types or those who live in areas that face severe weather conditions, hybrid models like the Prius for the eco-friendly customers that are interested in saving the environment, along with the standard cars for general, everyday use. Additionally, Toyota provides vehicles for all price ranges.
All employees of Toyota are satisfied with lower level needs, they make great wages, they have job stability, and the job sites are full of safety initiatives and well planned (Liker, 2004, p.210). Toyota also provides family benefits to help with raising children and the wellbeing and health while at work, with all these benefits employees are content and can focus on big picture ideas. Toyota promotes a strong team mood and a sense
Toyota Motor Corporation is one of the largest automakers in the world. At its annual conference in Tokyo on May 8, 2008, the company announced that activities through March 2008 generated a sales figure of $252.7 billion, a new record for the company. However, the company is lowering expectations for the coming year due to a stronger yen, a slowing American economy, and the rising cost of raw materials (Rowley, 2008). If Toyota is to continue increasing its revenue, it must examine its business practice and determine on a course of action to maximize its profit.
Toyota- focused differentiation, medium pricing, breadth of product line is low. Company is known for quality products, and nice styling.
(5) Liker, Jeffrey K. The Toyota Way: 14 Management Principles from the World's Greatest Manufacturer. New York: McGraw-Hill, 2004. Print.
Toyota has adopted an expansion strategy aimed at increasing the company’s market share through sustainable growth. This will be done based on the delivery of high quality, and safe cars, at an affordable price. As the company seeks to expand to new markets, focus will be on maintaining an organizational culture that allows optimum efficiency in the ever dynamic global market.
In 1950s, Toyota has developed lean thinking. The Toyota Production System aspires to minimize waste and increase efficiency while at the same time enhances its product quality. From this initiative, Toyota managed to widen its competitive edge by employed fewer employees in the car production with a small number of flaw products.