Critical analysis of Toyota
- Corporate strategy
- Toyota vision
- External environment
- Internal environment
- Competitive priorities
- Toyota operative strategies
- The Toyota way
- Innovation strategy
- Management of risks in project management
- Toyota supply chain
- Operational process
- Human resource policies
- Stake holder management
- Sustainable initiatives
- Value chain analysis of Toyota regarding to the triple-P approach
Toyota Motor Corporation is a Japanese firm that was founded in 1937 by Kiichiro Toyoda. Now, it is a multinational corporation that is employing more than 300,000 employees worldwide and has become the leader as a car manufacturer in terms of sales.
Toyota became very famous as it develops new processes; its production system has always inspired many other car manufacturers and its management style has been copied by competitors.
The multinational headquarters in Toyota city (Aichi, Japan) in Tokyo is also diversifying from its core activity, providing financial services and producing robots.
What makes Toyota so special? What has been its strategy to become the number one car seller?
The strategic analysis of Toyota is relevant as the strategies it has implemented over the decades has inspired many research studies and are now followed by other companies, not only from the automotive sector but also from other sectors. Its trademarks have always been safety and quality; Toyota received its first Japanese quality award in the 80s and is now renowned for the high standards of quality of its vehicles and the innovative solutions it introduces to the market every year.
[...] In this case, Toyota showed absolutely no respect for its employees and did not comply with one of its own core values. This kind of contradiction has to be avoided because it can bring about a deep decrease in worker's involvement, loyalty and trust in Toyota and may generate big conflicts between workers and employers. One can advise Toyota to be very honest, transparent and law abiding with its stakeholders so that nobody feels betrayed and disrespected in any of Toyota's decision making processes. [...]
[...] Depending on the geographic area, Toyota uses a different kind of distribution flow. In North America for example, the distances are farther than in Europe. Therefore vehicles are transported by railcar and truck while in Europe they are transported only by truck. The dealer identifies vehicles shipped by trucks and parks them in a truck staging area. Each truck has a route plan and carries a certain number of vehicles depending their destination and the truck capacity. The main objective of the trucking company is to have a delivery time of two days maximum. [...]
[...] Value chain analysis of Toyota regarding to the triple-P approach The famous Toyota production system (TPS) gave birth to the lean manufacturing system in the 90s. It is a production system that considers the expenditure of resources for any goal other than the creation of value for the end customer to be wasteful, and thus a target for elimination. Its three main principles are: increasing efficiency, decreasing waste, and using empirical methods to decide what matters. One of the key steps in Lean and TPS is the identification of which steps add value and which do not in the value chain. [...]