Toyota motor corporation is a world-renowned name, a brand that is dominating in the industry of automotive and multinational corporations that are mainly based in Japan. The organization was founded by Toyota Kiichiro in 1937 as his father's company spin-off to create automobiles. In the 21st century, apart from producing vehicles, Toyota runs many non-automotive operations like financial services for leasing and purchasing vehicles, web-based intel network for vehicles, property development and aerospace and marine businesses (Karan, 2015). Nonetheless, operation is among the most important parts of the company which involves all the actions and activities required to deliver and produce goods and services to the clients. However, the company always have difficulties in identifying between operations and operational (Arnaboldi, Lapsley, & Steccolini, 2015). Operations in the company is often concerned with resource management for the creation of services and products while operational implies short-term, localized and detailed decisions, making the two differ. Nevertheless, the objective of the Toyota company is to precede an economic atmosphere and giving the community or society a sustainable development and products that are reliable through ascertaining innovation and quality.
Also, to support the mission, the company focuses on the automotive industry's future in determining how best for the company to be positioned. Toyota also aims in achieving a steady development that is long-term in harmony with the economy, environment, stakeholders, shareholders and the communities they serve at large (Karan, 2015). Additionally, the Toyota production system operates to continually enhance and improve its standards and to make vehicles according to clients' needs in the most effective and fastest way possible. The company's production system is made on two concepts; "Jidoka" which means that a device is safe to stop in the completion of normal processing. It also refers to the device detecting a problem on its initiative to prevent and stop defective products from being produced or available. The second concept is the "Just in Time" concept which means that every process only produces what is needed next in a stream that is continuous (Perrucci, 2017). The production of products that are of high quality in the company is done efficiently by a full-end waste and unreasonable and inconsistency demands on the line of production.
Key Factors of the Market Domain Affecting Toyota Company
Technological innovation is one of the key factors of the market domain affecting the company. The organization can further expand its investments in development and research as its products are among the most innovative, for example, the Prius. However, increasing the R and D investment might boost the competitive advantage of the company and the action is significant where the competitors are on the outlook of new innovative ways. Also, there is sustainability that focuses on the environmental impact and fuel economy of business processes (Karan, 2015). Through this action, Toyota might address the environmental concerns by higher efficiency in the business processes by exploiting the opportunities which might help the company improve its brand image, customer loyalty, and customer perception. Additionally, diversification is a factor and the company has limited diversification as its vast business is in the industry of automobiles. Thus, in reducing risks, the company can diversify its business by investing in developing robotics and heavy machinery to distribute the business to various industries (Perrucci, 2017).
Impacts of Toyota Company to its Marketplace
Toyota company faces difficult if not unprecedented competition period and capital spending in its efforts in competing with Japanese automakers. The economy of fuel is the major impact on the marketplace and relatively low prices of gasoline have allowed clients to focus on it than the prices of vehicles, comfort, style, and performance. The company also creates employment opportunities for young people in the sale of cars and repair of car parts (Arnaboldi, Lapsley, & Steccolini, 2015). For example, in 1991, the hourly employment approached a recession low in the first quarter of the year as companies closed to respond to the inventory reductions and low retail sales by dealers.
Arnaboldi, M., Lapsley, I., & Steccolini, I. (2015). Performance management in the public sector: The ultimate challenge. Financial Accountability & Management, 31(1), 1-22.
Karan, P. P. (Ed.). (2015). Japan in the Bluegrass. University Press of Kentucky.
Perrucci, R. (2017). Japanese auto transplants in the heartland: Corporatism and community. Routledge.
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