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Contents

1. Introduction ............................................................................................................................. 2 1.1 2. 3. Company Toyota: Strategic Overview ............................................................................. 2

Analysis of Supply Chain ....................................................................................................... 3 Plan to Improve Operating Processes ..................................................................................... 7 3.1 3.2 Demand Management ...................................................................................................... 7 Communication ................................................................................................................ 8

3.3 Integration ............................................................................................................................. 9 4. 5. 6. Results of Performance Improvements ................................................................................. 10 Impact on Human Resources ................................................................................................ 12 Compensation and Incentives ............................................................................................... 13

References ..................................................................................................................................... 14

1.
1.1

Introduction

Company Toyota: Strategic Overview

There are many automobile manufacturing companies in the world and Toyota is one of them. Toyota is considered to be the symbol of success in the field of automobile manufacturing. Toyota has gained the fame among its consumers and is prude to earn this slandered. Now it is successfully maintaining its demand and standards among its competitors. Toyota is manufacturing a lot of vehicles in the field of automobile. Marketing strategies play an important role to shape the identity what is being produced. Advertising and the global marketing are the fastest and strongest means of marketing. Toyota also strongly believes in these two ways of marketing and do not hesitate to get the benefits from them. That is actually the marketing strategy that can create a totally different or even opposite images for the products which are similar and which have the same worth and the same value. Marketing strategies directly targets the consumers weaknesses and highlights them. An effective marketing strategy always invites the consumer to go and buy the product. In the field of business and marketing value proposition is actually the statement that summarizes the clients segments. It also targets the production of its competitors. Value Propositions basically interprets this market contribution into a declaration of the profits a buyer will develop (Toyota 2012). As for as, the source of competitive differentiation is concern first of all the mission of the company is set. Secondly the efforts are put to set and then achieve the targets. After that an analysis which can be external and internal as well, is to be done. Those marketing strategies

should be design and implement to get the competitive advantages. An organizational structure is basically a chart of activities to be performed by the company members which includes allocation of the tasks, to supervise and coordinate. That is the chart of activities which puts the company on the path towards accomplishment of structural objectives.

2.

Analysis of Supply Chain

Supply chain is basically term to denote the shifting of some material from its source to the client. It includes of sellers that hoard natural resource, manufacturers who change

the substantial into goods, storerooms that store, delivery centers which supply to the vendors and sellers who carry the things to the vital consumer. Supply chains motivate value-chains for there is no that type of producer who could meet the criteria of satisfaction of the consumer Manufacturers strive with one another only with the help of supply chains and no level of development at the end of the producers can frame the lacks in its supply chain which can decrease the manufacturer's skill to compete (Ludema, M. W. 2008). Toyota collects the input from all over the world so that means Toyota gas a very strong supply chain to get the inputs. There are so many companies which are supplying there raw material to Toyota such as water soluble material, sealing, metals, many chemicals and etc. now there is a big list of the inputs of Toyota such as Toyota Corolla, Toyota Tacoma, Toyota Super, Toyota Camay, Toyota Land Cruiser, Toyota Tundra, Toyota 4runner, Toyota Truck, Toyota Celica and Toyota Pickup. These are the main inputs in the field of Automobile production. The others are Audio Input Adapter, put cables, changing charger cable, Car iPhone interface adapter, Gateway iPod/phone and Aux audio input interface, Radio adapter interface, Up steering wheel control input, CD player, so the list of the inputs of Toyota is not so small but as the list will be going to increase it would be difficult to cater on the management level. Toyota has very strong and reliable management so
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every input is going to be sourced and rearranged so expertly. At the end these inputs are delivered to the showrooms. Before all that there is a very complicated and tiring procedure that is the process of assembling and rearranging the different parts of the Toyota vehicles. Toyota has established many sections for the assembling and arranging and rearranging the different parts of that specific vehicle. Where the risk life is involved Robots are instructed to complete the jobs such as melting, carrying the heavy parts and so many. As the vehicle gets into the final form, those are sent to the delivery department and from there that is transported to the countries where Toyota has its dealers (The Economist 2010). Value added is term that is used to explain that any producer of the product gives something more to its consumer to make to buy its product. That can be anything that should attract the buyer to buy the product. The producer does not charge anything for this incentive. That is just a strategy to invite the customer to its platform to buy the product. Now these are called value added products. Toyota is the company of intellectuals. Company also introduces add value products such as Toyota if is going to introduce its new vehicle in the market it would add value of any king like any additional radio input devices or anything else that could be proved the weakness of the consumer. The company will add that value into its product but will not charge anything for this. In this way, that will become an incentive to the client from the company side. This adds value product will get fame quickly among its consumers and its market value automatically will get rise to the top. Value added is important and woks at each step from being produced to the delivery of the product. At the initial step some input devices can take the place of an added value and later no charge for this added value and free delivery to the customer also is a form of the added value. So added value cannot be neglected at any step. There can be given an example in the favor of value added products that if there is a company that produces water
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bottles and the company costs a water bottle $5. If the company wants to increase its sale and production as well, it will raise the bottle in the size but will not increase its price. So the customer will not bear any financial stress and happily will bent to buy that water bottle. Consequently, customer will remain loyal to the company and in future will try to buy the products of the same company. So the value added products are one of the main sources in the increase of the sale and consequently in the production of the product (William D Jr., P. 2003). Information technology actually decides the techniques, methodology and a specific system to share the information with other individuals. So information technology has a considerable worth in the field of marketing and sales. Information technology provides a help to all the production companies to introduce the product into the market and then motivate the customer to buy that product. Toyota is spending a large amount in its marketing through the information technology. There are many sources now introduces in the world or many forms of information technology. There are many channels working in each country in the world. Toyota also has the signed the contracts with so many channels in different countries to introduce its product in all parts of the world. That is called advertising the product but here information technology is involved again. T.V commercial and commercial on radio also contributes a lot. Face book and the social media also help in this regard and all types of communication which are developed among the people are providing the help and becoming the source of advertisements. All that is, because of the information technology. So no one can deny the importance of information technology to promote the business and the products in the world. E-commerce plays an important role in the field of sales and marketing. All the renowned companied do not hesitate to put there produce on the platform of electronic media. E-commerce is involved in all the stages or steps of the production of any product such as from its raw materials to its sale in the market.it also is

involve in the transferring of the capital of the company, management of the supply chain, online transaction, online marketing, online and many other management systems (Ranjan, J. 2004). Toyota also advertises itself on internet and other networks related to information technology field. E- Commerce is basically the sales and marketing through electronic media. E- Commerce is a quick and fastest way to provide the information about any product. For example there is any customer who lived in any part of the world can get the information about Toyota from the internet? What kind of Toyota brand he wants to buy or what kind of vehicle someone wants to buy. And what would it cost him. All kind information are just a touch away. Even anybody can buy Toyotas any product or vehicle through internet. Delivery also is possible. Toyotas delivery system has the provision to confirm the deal on internet and deliver the product on the doorstep of the customer. Information technology also is providing the help to measure the performance to evaluate the supply chain. Supply chain network of Toyota is so active and reliable. All the products of Toyota are entered in the computer system and all the inputs are listed in the computers with their quantity and the status of availability. The same is about the supply chain. What is short and what is the new demand or how much of the supply is needed in next few days. Each and every thing is recorded in the systems so through information technology a rich communication is developed among the supply chain and the producer. It is not easy to survive in the market when there is a chain of competitors as well. If Toyota is taking the benefits from all the sources of sales and marketing, there is no doubt that all of the competitors of Toyota such as Honda also is getting benefit from all these sources. So no company can underestimate its competitors. Honda is the close competitor of Toyota. But Toyota has the benefit that in the race of using information technology, it won the race. So that is the reason that

Toyota can easily measures its performance on the biases of its sales and all the facts and figures regarding the sales are available on the internet.

3.

Plan to Improve Operating Processes

Operational processes confirm a consistent methodology to all events completed. No company can have enough money to achieve tasks. Even they cannot give any extra chances to encourage disappointment from absence of distinct and recognized operational process. Operational process has been proved the bias for the training and operator orientation. Many companies do not bother any training activity especially for their new hiring. So its quit they do not have sufficient information and the knowledge of the safety and the quick and efficient working of the equipment. So to make sure that this type of things should not be the part of a good company, operating process play a critical role. All the good companies consider the operating processes as Best Practices documented of the company (Benders, J., & Morita, M. 2004). Production system of Toyota is considered as a united socio technical system. This operating system of Toyota is responsible to manage all its departments at all levels. In this regard supply chain and its management comes first. Supply chain management actually mixes and keeps balance the demand of the customer and the supply of the product. There are many elements but three are important in the sense that if we make some changes and improvements in them, a company can get more from the market.

3.1 Demand Management


First element is demand management. That is the most important element in the supply chain. Demand management always focuses on the companies. If any company has its partners, demand
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management will realize them the need of the meeting in order to get the updates regarding the demands of the customers and also encourage the companies to add more inputs and value added products. That would not be wrong if we say that demand management is the backbone of Toyota Company. Demand management always keeps in touch with all the departments of Toyota Company. So first of all demand management must now the new demands of the public. Than it arranges and manage the meeting of the Chief Executives of the company so that they could discuss all the features of the public demands. Than they would send the recommendation for the fulfillment of this need and add one more input in the list of their productions. A quick demand management provides three dimensional advantages to the company. First, keep the company aware of the demand and needs of the customer. Secondly, arrange creates the need for the meeting to discuss the needs and demands of the public and develop the rich and good coordination among the partners of the company of the members of the company. Third thing is increase in sales and profit (Croxton, K. L., Lambert, D. M., Garcia-Dastugue, S. J., & Rogers, D. S. 2002).

3.2 Communication
Second element of the supply chain is Communication. That element refers that in the company there should be an effective and rich communication so that they could send and share the demands of the public in time. There are always competitors active in the market and if there would not be an effective and quick communication the ultimate result will be very negative on the sales and production as well. Communication enables the members of the company to share the information regarding the demands of the customer and the operations. Toyota is a leading company so it cannot neglect the effectiveness of commu8nication. An effective communication

enables the company to note the changes in the inputs to meet the demands of the customer. Toyo believes in rich and effective communication to compete with its competitors. Thats the reason that Toyota is always ready to meet the challenges in the field of production. Ultimate results are that if there is a quick and effective communication among the supply chain and the members of the company, production will rise. Because of the communication and coordination the efficiency of the members will increase and quality of the products will be improves if Toyota is maintain the communication system in the company and with the supply chain. The chain that Toyota can make in this element is that effective communication should take place in the department of marketing as well. Although that is already present there but marketing is an essential department of any Company so Toyota should shape a set of some marketing strategies to involve the communication keeping that common thing in the center that not the aero planes but sometimes an ant can be proved a best source of enjoyment of the journey (Roethlien, C., & Ackerson, S. 2004).

3.3 Integration
Third element of the supply chain is integration. It means that to reduce the inventory costs. That also means that keeping in touch with the demand and the supply of the products. Supply chain is responsible to maintain the balance in all the departments on the company. So, that there should not be any shortfall of any supply in the production. Toyota is well aware of the sensitivity of this element of supply chain. This decreases Toyotas costs expressively, allowing the company to suggest clients highly inexpensive pricing. To attain this stage of integration, Toyota developed a single information network which permit all associates to contact and that also share the demand and supply regarding data security. This network consists on exposed values like

Internet Protocol. So that is easy for all the members to communicate and it does not matter that what internet network they are linked with. This element of integration leaves positive effects on the sales and production of Toyota (Yeung, T., Zhao, X., & Yeung, J. 2004).

4.

Results of Performance Improvements

If the supply chain activities are improved, consequently very positive and productive change will occur in the departments of sales and production. Supply chain is performing very important role in Toyotas well. Toyota believes in lean manufacturing and lean manufacturing works with the principle of stabilizing cost with less effort. So the effective changings in the supply chain will promote the concept of lean manufacturing. Because Toyota focuses on the reduction of the Toyota so that it could develop and maintain the customer value. Now these are the supply chain improved elements which cam helps Toyota to achieve its best (Piercy, N., & Rich, N. 2009). These changes leave a very positive impact on TQM which is a continuous procedure to reduce the errors in the process of manufacturing. These changings in the elements of supply chain can improve TQM and Quality control program in Toyota. Quality control program which stresses on continuous improvement and elimination of defects in manufacturing. So Six Sigma is

responsible to attain all that. The changes which have been suggested to improve the supply chain can definitely bring improvements such as rationalization in supply chain, insurance that the employees of the company are up to speed and full trained. So as the total quality management will be improved, Toyota will prove the quality in its final products. Toyota is altering the shape, design and in other related inputs which are installed inside it. On the basis on the information provided by the supply chain, a different type of changes Toyota is
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making. Every new model of its vehicle is different in shape and design to appeal the costumers and to compete its competitors as well. That alteration takes place from minor alteration in the design of the wheel to the majored alteration in the shape of the vehicles. If the company is not going to bother the requirement of the customers and will not make any alteration and changes in its product, it will lose its market. Customer will be easy attracted towards the new model of the other companies. Alteration and a continuous improvement in the product is a key tool of the department of the sales (Ichijo, K., & Kohlbacher, F. 2007). It is quite obvious that the companies that do not go with the rule of change cannot survive to the long in the market. Toyota has understood the importance of this rule and strictly follows it. This is the age of competition and always the competitors search for the ways and strategies so that they could beat their competitors. To change or alter in the different proportion of the product is an essential and requirement of the success in the business. It is basic requirement of the present world of business that there must be introduced everlasting and improved skills to enjoy the success for the whole year. Toyota is constantly making changes and is going on the path of success for a long time and if any company will taste the sweet and ripe fruit of success for this long period that will automatically feel a change in its determination and passion to achieve the set goals. If any company enables its members to keep that determination and passion as everlasting component of their attitude and personality, would not decline. Alterations and changes leads to the quality, quality leads to more sales. More sales lead to more demand and more demand leads to more production. That is a cycle and until that cycle is running the company. That also is the key indicator that measures the performance of the company.

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5.

Impact on Human Resources

Human resource is the group of people who is responsible to maintain the workforce of the company or any organization. Companies HR always welcome the strategies.HR is responsible to hire or fire the workforce. The suggested changes are requested to make in the elements of the supply change. Now HR sends its recommendation to the department to apply these changes because provision for them is there in the finance department as well. This change will increase the innovation, productivity, creativity and flexibility to improve competitiveness. HR will put the required responsibilities on the shoulders of the suitable members to fit the right person in the right field. HR will assign the authorization to the most experienced and well aware person of the company to avoid the problems in future. HR will make that person to apply that recommendation and to manage these changes under the current structure. If a suitable person will be performing the right job; the results will be in the favorer. These authorities will apply the new approaches so that the work process design should be more appropriate and fruitful. In this way inter organizational mobility will be enhanced. Persons authorized by the HR will also look forward to manage the current structure of the company and implementation of the new technology and the suggested changes. They also will be responsible to train the staff. They will develop a rich communication with the staff to get the required results from the recommended changes. If the company will not hire the right person for the right job on the bases of their skills and talent, it would be useless and loss in all interlinked departments. So there are talent tests and skill evaluation test available which can be taken by the authorities to select the right employee. Then that would be possible for the company to implement these changes, if training will be provided to the employees already working there, they will easily and willingly accept the changes. There
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is sometimes faculty that proved like the jam parts of the company. Here again some strategies are important to be applied. First of all it is needed that the reason for the inactiveness should be find out. Than different types of incentives will play the role to motivate them to produce the results. In this way the rick of jammed protected class can be reduced (Ghanam, D., & Cox, P. 2007).

6.

Compensation and Incentives

Toyota is the company that is always ready to give the best to its customers and its employees as well. But when the situation a little bit different in the sense that if few new changes are expected to be done in the company than important is that nobody should go against of these changes. Because if any group in the company do not favors these changes that means hurdles in the future that will consequently give a great ham to the comp[any. So the authorities should finalize the schedule of the incentives for all the members of the company on the basis of these changes so that all of them readily accept them. In this way every member from his side will be determined to perform the best from his side. That also will create a constant hope in the heart of the members and they will be always ready to well the changes. They will condition these changes with their incentives which lead to positive result for the company.

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References
Benders, J., & Morita, M. (2004). Changes in Toyota Motors operations management. International Journal of Production Research, 42(3), 433-444. Taylor & Francis. Retrieved from http://www.informaworld.com/openurl?genre=article&doi=10.1080/00207540310001602883& magic=crossref Croxton, K. L., Lambert, D. M., Garcia-Dastugue, S. J., & Rogers, D. S. (2002). The demand management process. International Journal of Logistics Management, 13(2), 51-66. Retrieved from http://proquest.umi.com/pqdweb?did=453907521&Fmt=7&clientId=3224&RQT=309&VName= PQD Ghanam, D., & Cox, P. (2007). Dynamic capabilities: The strategy-HRM intersect? International Journal of Learning and Intellectual Capital, 4(1-2), 57-74. Retrieved from http://www.scopus.com/inward/record.url?eid=2-s2.034447525255&partnerID=40&md5=58b849eca969dae569ebfffb728d5cdb http://www.toyota.com/ Ichijo, K., & Kohlbacher, F. (2007). The Toyota way of global knowledge creation the learn local, act global strategy. International Journal of Automotive Technology and Management, 7(2/3), 116. Inderscience Enterprises Ltd. Retrieved from http://search.proquest.com/docview/195513519?accountid=14468 Ludema, M. W. (2008). Towards a supply chain analysis framework. 2008 IEEE International Conference on Service Operations and Logistics and Informatics. Piercy, N., & Rich, N. (2009). The implications of lean operations for sales strategy: from salesforce to marketing-force. Journal of Strategic Marketing,17(3/4), 237-255. Routledge. Retrieved from http://dx.doi.org/10.1080/09652540903064738 Ranjan, J. (2004). Information Technology - Supply Chain. 2nd International Conference on Information Systems Technology and Management. Roethlien, C., & Ackerson, S. (2004). Quality communication within a connected manufacturing supply chain. Supply Chain Management, 9(3/4), 323-330. Retrieved from http://search.proquest.com/docview/216865445?accountid=10297 The Economist. (2010). Toyotas overstretched supply chain: The machine that ran too hot. The Economist, 394(8671), 74.

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William D Jr., P. (2003). Supply management and e-procurement: creating value added in the supply chain. Industrial Marketing Management, 32(3), 219-226. Retrieved from http://www.sciencedirect.com/science/article/pii/S0019850102002651 Yeung, T., Zhao, X., & Yeung, J. (2004). A critical review of literature on supply chain integration. In Liu L And Zhao X And Gen M And Li L And Li Y (Eds.),Proceedings of the Third International Conference on Information and Management Sciences (Vol. 3, pp. 73-85). CALIFORNIA POLYTECHNIC STATE UNIV.

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