Toyota Free Essays

Assignment One Country : Sri Lanka Module name and Module code : 6FBS1059 – Contemporary Issues In Business (Sri Lanka On Line) (February – May 2012/13) Group name : Born Leaders Student names and student numbers: – Mafaz Mohideen[12236368] – Piumi De Alwis [12236369] – Rixon Soris [12237405] – Lasitha De Silva [13038814] – Vidusha Silva [12236367] Topic : For a company of your choice and looking at the next 5 to 10 years, discuss. Which do you think will become more important, the management of human element of the organisation or the management of technology? Which management perspective might best suit your chosen company? Justify why Company : Toyota Motor Corporation Accurate Word Count : 1976 words Which do you think will become more important, the management of human element of the orgnisation or the management of technology? This report gives out a brief outlook on the Management of Human and Technological elements of Toyota, while justifying the most important element when considering the next five to ten years. Introduction Toyota Motor Corporation abbreviated as TMC, is  a  Japanese   We will write a custom essay sample on Toyota or any similar topic only for you Order Now com/strategic-management-and-competitive-advantage/"multinational organization headquartered in Toyota, Aichi, Japan. TMC was first established in 1937 as a separated company from Toyoda Automobile Loom works. Toyota has employed 300,734 consolidated employees and 69,148 non-consolidated employees worldwide, as of 31/03/2012. ( Toyota-global ,2013a) . TMC reclaimed the lead in global car sales over General Motors Co and Volkswagen Group in the first half of 2012 accounting for sales worth ? 18583. 6 million (Rall. P, 2013). Today, Toyota has 7 factories in the United States, 15 in Japan and in 13 more countries around the world. Toyota is well known for its small cars and SUVs, but it is an industry leader in manufacturing techniques and has been a pioneer since its inception (Toyota ,2011). The Toyota Production System (TPS) is a benchmark for all manufacturing companies. Yet, it is questionable how a renowned company like Toyota could experience the type of quality problems that created numerous media headlines during year 2009 -2010. (Cusumano. M: 2013,p-33). This report further looks into Toyota’s unique production system and its philosophy, and will go along inspecting the significance of human element and technology while considering the causes of the recent quality issues and thereafter suggesting the most important element that need to be managed in view of its future. Furthermore the report will suggest the most suitable management perspective whilst justifying. Toyota’s production system Toyota has been shaped by a distinctive set of principles and values that have their ancestry in the company’s developmental years in Japan. The Toyota way, a management philosophy used by TMC consist 14 key principles including Toyota production system ( TPS ). The Toyota Way has four  components: Long-term thinking as a basis for management decisions, a  process  for  problem-solving, Adding value to the organization by developing its people and recognizing that continuously solving root problems drives organizational learning. (1000advices ,2001) The â€Å"Toyota production system† (TPS) is the basis of Toyota’s global competitive advantage. It is not a solitary process but a cultural mindset that involve every element to work together ,in other words the system depends in part on human resources management policy that encourage employee creativity and loyalty but also on a highly efficient network of suppliers and components manufacturers. The critical components of the TPS house are the just-in-time (even workflow) and jidoka (quality through human-controlled automation), Kaizen – Continu ous Improvement, they are the pillars that create the structural integrity and protect continuous learning. (Toyota ,2013) (Source: Toyota ,2013). Toyota Production System. ) Human element vs. Technology The human element and technology are two critical aspects in any organisation in today’s context, when considering Toyota it is no exception. Liker (2004), states that the incredible consistency of Toyota’s performance is a direct result of operational excellence and is based in part on tools and quality improvement methods made famous by Toyota. He further mentions that tools and techniques are no secret weapon for transforming a business, but Toyota’s continued success at implementing these tools stems from a deeper business philosophy based on its understanding of people and human motivation ( Liker . J: 2004a, p-14). Toyota, the world’s largest automobile manufacturer carries out advanced research and practical application of technologies. According to The Toyota way, the company uses â€Å"only reliable, thoroughly tested technology that serves their people and processes† . Yet again, â€Å"testing† entails both existing technology and new / revolutionary technology that Toyota has systematically evaluated and conducted to confirm that it works. ( Liker . J: 2004b, p-165) However justifying the J. K Liker’s(2004) statement honorary advisor Eiji Toyoda states â€Å"Because people make our automobiles, nothing gets started until we train and educate our people†, as seen in these words , it is understood that the human element as well plays a critical role . Toyota believes that lean management call for highly developed people and deeper trust in comparative to a mass production system, also that its becomes the critical element and their willingness to recognize and solve problems is what drives continuous improvement (Liker. J. and Hoseus. M: 2010a, p34-50). TMC’s basic theory is that cautiously chosen and developed people over extended periods of time will constantly improve processes and eventually direct to competitive advantage and mutual prosperity. Nevertheless , the mechanical failures in Toyota automobiles during 2009-2010 which caused Toyota to recall nearly nine million cars worldwide ( Bunkley. N and Maynard. M, 2010) questioned the above mentioned philosophies and strategies. These incidents were shown as a mechanical failure and not as a result of human resource professionals assuming product design roles and producing faulty accelerator pedals and onboard computers ,but as we know breaking point of a product or service is hardly ever the underlying or root cause of the failure. Toyota leaders had identified the mechanical failures long before corrective action was taken. Many close to the issue are indicating that the company took significant action to hide the facts and distort the scope of the problem. When the organization disproportionately rewarded managers for cost-containment versus sustaining product quality, it created the incentive for everyone involved to ignore the facts and to deny that a problem existed. (Sullivan. J, 2010). The HR processes that must at least be considered as suspect include rewards processes, training processes, performance management processes, and the hiring process. Equally, Eiji Toyoda pointed to the failure of Toyota’s commitment to â€Å"genchi genbutsu†, meaning go see for yourself to thoroughly understand the situation . He stated that Toyota should have required upper management to go to the source of problems to ensure that they did not base decisions on superficial understanding. (B. Chung and H. Kleine ,2012) Therefore these incidents that caused a negative impact on Toyota’s brand name for providing trusted and quality products shows the importance of the management of the human element in its coming years to gain its customers trusts back. The 2020 Vision of Toyota (Source: Toyota. u (2010a) Vision 2020 :Four key pillars. ) The plan for year 2020, known as â€Å"Toyota global vision 2020†,drafts the automobile giant’s new management direction and vision for the future . The Vision itself explains that it has prioritized the management of its human element in â€Å" Becoming a Leading Player †. The 2020 Vision focuses on four key pillars shown above in exibit1. 2 , namely Customer Delight ,Environmental leadership, Good Corporate citizen and Self reliance with focus o n locally produced models . Three of these key pillars has a direct link to human elements relevant TMC ,most importantly the customer delight . In addition Didler Leroy, President Toyota Motor Europe , too stated that the â€Å"utmost priorities were, regaining customers’ trust, people’s respect and customer confidence in Toyota’s commitment to superior quality† while ensuring that each member in their team aims to deliver the best (Toyota. eu : 2010b,p 11-15) Conclusion When having to decide if the Management of technology or Human element would be more important for Toyota when looking ahead at the next 5 to 10 years, based on the above research and after understanding about the Toyota way of doing things where it calls out for continuous improvement and With solid controls on TPS which is a Human resource management policy and with the 2020 vision of Toyota giving more emphasis on the Improvement in managing the human element, We could conclude in stating that the management of the Human element would play a more important role during the next 5 to 10 years. Which management perspective might best suit Toyota? Management practices and perspectives vary in response to these social, political and economic forces in the larger society. During difficult times, managers look for ideas to help them cope with environmental turbulence and keep their organizations vital. A management tools survey conducted revealed a dramatic increase over the past dozen or so years in the variety of management ideas and techniques used by managers. (Daft, R. et al : 2010a,p-43) Behavioral management perspective Management principles developed during the classical period were simply not useful in dealing with many management situations and could not explain the behavior of individual employees. In other words, classical theory ignored employee motivation and behavior. As a result, the behavioral school was a natural outgrowth of this revolutionary management experiment. Hence  behavioral management perspective  emphasizes individual attitudes and behaviors and group processes. It addresses the human dimension of work. Behavioral theorists believe that a better understanding of human behavior at work, such as motivation, conflict, expectations, and group dynamics, improve productivity. Mary Parker Follett (1868-1933) recognized the importance of the role of Human behavior in the work place and that lead to Human relation school of thought. (Daft, R. et al :2010b,p 49-51) A major tip for being a well-known car manufacturer since its inauguration has been one of the management perspectives which Toyota has considered when managing the organization. It could be stated that the best or most suited management perspective would be The Behavioral Management perspective or in other words Human relation school of thought for Toyota . Accordingly the below paragraphs make understand the significance of this management perspective to Toyota and while justifying it as the most suitable The ‘respect for humans’ system Toyota builds their future planning around the people they employ as it is the base of their success. The main drive of the argument is that, under the TPS, workers’ dignity is respected because the system makes full use of their capabilities and entrusts them with the running and improvement of the plant. There is discussion of ‘respect for humanity’ and ‘treating workers as human beings and with consideration’ but there is no element of the discussion which relates to relieving the monotony of factory work or reducing the pace of work, or of worker autonomy. Indeed, with the emphasis on standardized work, worker autonomy as far as the core processes are concerned is explicitly ruled out. ( Weerasombat. T and Hampson. I ,2012) Human Resources Development of Toyota Toyota seeks to develop human resources through the activity of making things. Toyota believes that the development of human resources requires the handing down of values and perspectives. In conjunction with the geographic expansion of business and the growth of business areas, undertaking global actions for the development of human resources has become a priority issue. Toyota is building both tangible (a new learning facility) and intangible (course content) structures relating to team member development that ensures a secure and steady flow of qualified human resources to conduct Toyota’s global business in the 21st century. ( Liker, J. and Hoseus, M: 2010b,p 34-50) This process of development goes on for two years, at which point the temporary employee is either hired or not. Newly hired will continue on- the- job development for another three years, which means the development lasts five years total. Overall, the Toyota invests substantial amounts of money acquiring and developing their employees because they understand that the employee is the only appreciating asset that they have and therefore, it is worth investing in employees. (Toyota-global: 2005b,p53-57) The Toyota Company works on a scale and has an influence so vast that it is often difficult to envision as a whole. The level and diversity of technologies that it must deploy are increasing, which imposes both new investment burdens and new uncertainties and risks. Roughly a million new cars and trucks are built around the world each week, and they are easily the most complex products of their kind to be mass-produced in such volumes. Conclusion In conclusion, it is certain through the acquiring and development process performed by Toyota, that they value employees and spend many resources on these two aspects for good reasons. The result is a competent work force within a strong culture which is the main reason for Toyota’s success. And based on all of the mentioned areas and research we could justify that Behavioral Management perspective would be the most suited Management perspective . REFRENCES 1000advices (2001). Toyota Culture and Management Philosophy. Available at: http://www. 1000advices. com/guru/processes_lean_toyota_way_14principles. html . [Accessed 10 March 2013]. B. Chung and H. Kleine (2012). Dissecting Toyota’s woes. Available at: http://www. iienet2. org/details. aspx? id=29416 . [Last Accessed 05 March 2013]. Bunkley, N. and Maynard, M. (2010) With Recall Expanding, Toyota Gives an Apology. New York Times, [online] January 30. Available at: http://www. nytimes. com/2010/01/30/business/30toyota. html [Accessed: 09 March 2013]. Cusumano, M. 2013) Technology Strategy and Management Reflections on the Toyota Debacle. Communications ACM, 54 (1), p. 33. Available at: http://mags. acm. org/communications/201101/? pg=35#pg35 [Accessed: 10 March 2013]. Daft, R. et al. (2010a) Management. [e-book] Cengage . p. 43. Available through: lib. myilibrary. com http://lib. myilibrary. com/Open. aspx? id=258423 [Accessed: 07 March 2013]. Daft, R. et al. (2010b) Management. [e-book] Cengage . pp. 49-51. Available through: lib. myilibrary. com http://lib. myilibrary. com/Open. aspx? id=258423 [Accessed: 07 March 2013]. Liker , J. (2004a) The Toyota Way: 14 Management Principles from the World’s Greatest Manufacturer. [e-book] McGraw-Hill. p. 14 . Available through: www. ziddu. com . http://downloads. ziddu. com/downloadfile/5743842/TheToyotaWay14ManagementPrinciples. rar. html. [Accessed: 04 March 2013]. Liker , J. (2004b) The Toyota Way: 14 Management Principles from the World’s Greatest Manufacturer. [e-book] McGraw-Hill. p. 165. Available through: www. ziddu. com . http://downloads. ziddu. com/downloadfile/5743842/TheToyotaWay14ManagementPrinciples. rar. html. Accessed: 04 March 2013]. Liker, J. and Hoseus, M. (2010a) Human Resource development in Toyota culture. Int. J. of Human Resources Development and Management, vol 10 (No. 1), p. pp. 34 – 50. Available at: http://www. hreonline. com/HRE/view/story. jhtml? id=142379047 [Accessed: 10 March 2013]. Liker, J. and Hoseus, M. (2010b) Human Resource development in Toyota culture. Int. J. of Human Resources Development and Mana gement, vol 10 (No. 1), pp. 34 – 50. Available at: http://www. hreonline. com/HRE/view/story. jhtml? id=142379047 [Accessed: 10 March 2013]. Rall. P (2013). Toyota outsells GM, Volkswagen to claim 2012 global sales title . Available at: http://www. torquenews. com/106/toyota-outsells-gm-volkswagen-claim-2012-global-sales-title. [Accessed 09 March 2013]. Sullivan . J (2010) A Think Piece: How HR Caused Toyota to Crash – ERE. net. [online] Available at: http://www. ere. net/2010/02/15/a-think-piece-how-hr-caused-toyota-to-crash [Accessed: 09 March 2013]. Toyota (2011). Toyota Motor Co p . 2. Available at: http://www. trinity. edu/smf/inc/reports/fl2011/TM. pdf . [Accessed 10 March 2013]. Toyota (2013). Toyota Production System. [ONLINE] Available at: http://www. toyota. com. au/toyota/company/operations/toyota-production-system . [Accessed 09 March 2013]. Toyota. eu (2010a) Vision 2020 :Four key pillars. [image online] Available at: http://www. toyota. eu/sustainability/vision_strategy/vision_strategy/Pages/default. aspx [Accessed: 04 March 2013]. Toyota. eu. (2010b) Vision Strategy 2020. [e-book] Toyota. p. 11-15. Available through: www. toyota. eu http://www. toyota. eu/sustainability/vision_strategy/vision_strategy/Pages/default. spx [Accessed: 07 March 2013]. Toyota-global (2013a). Overview. Available at: http://www. toyota-global. com/company/profile/overview/. [Accessed 10 March 2013]. Toyota-global. (2005b) Relations with Employees. [e-book] Toyota. p. 53-57. Available through: www. toyota-global. com http://www. toyota-global. com/sustainability/report/sr/05/pdf/so_02. pdf [Accessed: 07 March 2013]. Weerasombat. T and Hampson. I (2012). Between ‘Leanâ €™ and ‘Reflective’ Production: The Case of Toyota Motors . [ONLINE] Available at: http://www. google. lk/url? a=trct=jq=esrc=ssource=webcd=1ved=0CC0QFjAAurl=http%3A%2F%2Fwww. ilpc. org. uk%2FPortals%2F56%2Filpc2012-paperupload%2FILPC2012paper-ILPC_2012_BetweenLeanandReflectiveProduction_Fin_20120321_065534. docxei=Z0Y_UYGrIMSNrgfJ7oG4Dwusg=AFQjCNHRaXVZC9gm-p8GT1wkMOeDLZts2gsig2=Rw6vP_GPfGP36cp_zrLBuAbvm=bv. 43287494,d. bmk . [Accessed 05 March 2013]. 1000ventures (2001) Toyota production system . [image online] Available at: http://www. 1000ventures. com/business_guide/cs_efficiency_toyota_ps. html How to cite Toyota, Papers Toyota Free Essays Company Objectives World domination with regard to car supply. Toyota seeks to achieve market leadership by delivering value to customers and providing high quality vehicles. Ill. We will write a custom essay sample on Toyota or any similar topic only for you Order Now Analysis Of Related Case Facts A. Porters Five Forces Analysis 1. Threat of New Entrants – Low New entrants can’t enter the market easily as it requires huge capital investment, cutting-edge technology and the industry have already reached economics of scale. Brand loyalty among the buyers. They won’t easily switched to new brand as purchasing a vehicle incurred high cost. 2. Bargaining Power of Supplier – Moderately Low Various types of suppliers in automobile industry such as cooling, electrical, fuel supply systems distributed across the globe. They own many interchangeable supplier and produced many components in the short time. Suppliers don’t own the power to determine the price. 3. Bargaining Power of Buyer – High Can easily switch to other brands if they’re cheaper and better specifications such as Hand’s new Hybrid models which are more lucrative Toyota Pries. 4. Threat of Substitute – Moderately High There are a lot of substitutes in automobile industry. When the price or the specifications of the vehicle is lack of favor, the substitutes will emerge. Besides from vehicles, buyer can opt for other substitutes such as bicycle, bus, train or even walking to reach their destination with petrol price hiking. However, it depends greatly on the consumers geographical location. 5. Competitive Rivalry -? High Competition between existing players is high. There is not much differentiation between players and their products. Other automobile companies are moving aggressively with their strategy to own higher market share with Hybrid models. B. Soot Analysis Strengths Us period productivity and efficiency of Toyota Production System Toyota is the world’s largest vehicle manufacturer by production and sales Global strong brand awareness Strong distribution and market efforts focused on high quality, sales and close involvement with customers It has initiated new technologies Weaknesses Recalls caused quite severe financial impact It is criticized as a foreign importer by Japanese local car producers In May 2009, they reported a record yearly net loss of $ 4. Billion In 2005 faced criticism because of a large scale recall and quality issues Opportunities Recovery of auto industries Positive growth trend in hybrid vehicle segment Growing demand from major emerging markets India and China Demand for fuel efficient, compact vehicles In 2009 Bank of India decreased the interests on automotive bank loans Product innovation The retreats Competition in the global automotive market Uncertainty in global economic condition W eakening demand, increasing cost Tightening emission standards C. PEST Analysis Political Factors Laws and regulations mandated by the government/state/local assembles may put in measures to ensure that safe and ethical practices are being allowed to promote fairness within the company. On the other hand, these laws, especially those foreign to Japanese customs create policies that imposes more profit loss for TM because it is a foreign car company. Economic and Social Factors The first that may impact Tm’s profit is that the social status of the world economy as a whole. If the world market is suffering due to a world-wide recession. Customers may be forced to buy domestic cars due to their lower cost, rather than buying foreign cars. However, if consumers are earning a higher income, this may prove beneficial to Toyota thereby increasing many profit and accountability. Stability of the upcoming market is highly projected. Technological Factors Technological advancements may also be a factor in determining Tm’s overall production. The world relies heavily on technology to plan out the details and executions of company plans and goals. It would be wise for TM to continue its research developments to improve the company’s value and reputation. IV. Relevant Strategic Management Lean Production System Lean Production System is the system designed and evolved in Toyota. It is modified form of Henry Ford’s Mass Production System. In some areas its philosophy seem exactly opposite to the fundamental principles of Mass Production System. Mass Production System Mass production is a method of producing goods in large quantities at low cost per unit. This system of production is also known as Push System or Just- in-Case System . With precision equipment, large numbers of identical parts could be produced at low cost and with a small work force. Diversification At the time of establishment of Toyota Motor Company was in the business of making handloom. This can be seen as a Conglomerate Diversification as Toyota expanded its scope from Handloom Industry to Automobile Industry. Joint Venture ANNUM was established at the site Of a former GM Fremont Assembly site that had been closed two years earlier in 1982. GM and Toyota reopened the factory as a joint venture in 1 984 to manufacture vehicles to be sold under both brands. A joint venture was viewed as an approach that would lower the risk while providing help in overcoming difficult potential problems. Market Segmentation Toast’s most significant business segment is its automotive operations. Toyota carries out its automotive operations as a global competitor in the relied automotive market. Toast’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. V. Alternative Courses and Action Toyota Motors Corporation, one of the largest automakers in the world. Due to growing number of recalls that it faced, sales plummeted thereby effecting the company’s position in the global automotive industry. The company recalled million of vehicles in 2009 that does not only hurt the company financially but significantly damaged the company’s brand. Toyota must ensure that the cars produced are faultless and of good quality. Toyota must focus on differentiating the company by concentrating on the atmosphere and design of the vehicles . It must enhance customers service as full-service provider. Excellent customer service should be observed since it would be able to make the company boost their reputation and consistency in terms of customer satisfaction. There should be a unique offering of amenities and facilities which would give them a stand out compared to other competitors, something like a trademark item or facility in which it couldn’t be copied or duplicated. Toyota has a reputation of manufacturing CEO friendly cars like the Pries based upon advanced technology developed by the organization. Toyota has also sold on its technology to other motor manufacturers. There is a big demand for CEO friendly and fuel efficient cars. Since Toyota already has a first mover advantage in making hybrid CEO friendly cars, it should capitalize n this opportunity and invest more on hybrid R and produce more environment friendly cars. VI. Analysis of Alternatives (Advantages and Disadvantages) VII. Conclusion Toyota has sources of strong competitive advantages in global automotive industry such as value chain, strong brand, wide product offering and hybrid vehicles. Major recalls, economic crisis and intense global competition have posed serious challenge for Toyota. Growing emerging markets and shifting customer demands offer Opportunities for Toyota to attain superior profitability and growth. Toyota must sustain its competitive advantages to attain its position and achieve future success. VIII. Recommendations Toyota motors are famous for their just in time manufacturing. The organization is doing well in this regard and competes with the world’s top car manufacturing firms . However the quality of the car as compare to other car manufacturing companies is not satisfactory. They should focus on the quality and designs of the car. As compare to Honda, the intense competitor of Toyota in Asia and some other regions, they have elegant designs and quality cars. Apart from that the company should also focus on fuel efficient and hybrid cars to increase its production and to make people aware of these cars. T MAC needs to become more diverse, to allow the integration Of leadership in all sectors of leaderships to create a uniform leadership team. The way the system is set up is not going too well for the company’s goal of being the number one manufacturer in the world. Also, Toyota needs to reanalyze its Research and Developmental Centers. It is through these centers that technologies are observed and tested to bring about the best possible and safe product for the consumer to use. There needs to be a construction of the company as a whole. How to cite Toyota, Papers Toyota Free Essays Toyota, one of the most renowned auto company started having a problem around in 1998 when it failed o store its new brand product Lexus’s data’s ineffectively. Though all it did not happen on purpose, but accidentally the Lexus Company could not fulfil the requirement and satisfaction of its customer in its early trail of database maintenance. Lexus the Toyotas high end luxury system had implemented a Corporate Customer information System in which there were some problems seen regarding the recording of customer information and override of wrong information of the customer data. We will write a custom essay sample on Toyota or any similar topic only for you Order Now Though the company had best tried to save that customer information in a appropriate manner but due to the system deficiency the company was having a massive data quality problem. This problem aroused because the company failed to maintain and implement a central database system where all he customer information would be stored in a central database, which when required would display the multi branches customer information. The company had 15 different databases stored in 15 different parts of the company, where the individual company would only access their local data stored by the local branch. In words of Management we can correlate this problem as lack of centralised authority to data control, storing, maintenance and update of recent transactions. The world of Information Technology as compared to the Management is quite controversial. Controversial in a sense that, in proper management Decentralization and Delegation of authority is required to achieve the best results in efficient management performances while as in terms of Information Technology, it requires the access, storage, support and maintenance of centralised database system in order to keep the up to date records of every activities performed everyday to track down the right solution to the problem. An efficient Information System demands the availability of information and resources however and whenever demanded at any point of request. The database Toyota Lexus ha designed was to store all its customer info which would help when the system was asked to provide the customer details of the owner for organizational purpose. The objective LEXUS had established to serve its customer via maintaining a customer dataset could not be fulfilled as the purpose of developing a database could no be fulfilled as it resulted to various problems in miscommunication of information all around. The ownership of the vehicles ad been transferred to the people who did not even had the ownership license, the cheques were paid to the person who were even not entitled to receive and the legitimate information were passed where there had been frequent problems of fake customer identity. The customer details failed to validate the right owners of the vehicles which as a result led to a problem of data loss. Because of the problem, Toyota would return the owners car fixed, washed filled with fuel. Cheques were made payable to the people whom it did not even belonged to. CASE EXAMPLES Example: 1 http://www. internetautoguide. om/auto-recalls/09-int/1998/lexus/gs400/index. html APR 17, 1998 | Recall ID# 50473 Hide Details |Recall Reason |SUSPENSION:AUTOMATIC STABILITY CONTROL (ASC) | |Recall Date |APR 17, 1998 | |Model Affected |GS400 | |Potential Units Affected |14855 | Recall Summary | |VEHICLE DESCRIPTION: PASSENGER VEHICLES. DUE TO A MANUFACTURING DEFECT OF THE YAW RATE SENSOR FOR THE VEHICLE STABILITY | |CONTROL (VSC), THE VSC CAN OPERATE IMPROPERLY IF THE SENSOR IS AFFECTED BY CERTAIN ELECTROMAGNETIC WAVES, SUCH AS FROM A | |CELLULAR PHONE. | |Consequence | |SHOULD THIS OCCUR, THE BRAKE MAY OPERATE UNEXPECTEDLY, AFFECTING STEERING AND SPEED CONTROL, INCREASING THE RISK OF A | |VEHICLE CRASH. |Remedy | |DEALERS WILL REPLACE THE YAW RATE SENSOR. | |Notes | |TOYOTA MOTOR CO. , LTD. | Example 2: http://www. justanswer. com/questions/35ik7-i-have-a-1998-lexus-es300-i-have-had-problems-with-the-gas Question I have a 1 998 Lexus ES300, I Have had problems with the gas pedals sticking on three occasions but paid no attention to it until I read about this problem on new cars. Have there been other cases reported with this model? What should I do about it? Submitted: 11 days and 23 hours ago. Category:  Lexus Value:  ? 7 Status:  CLOSED + Read  More Optional Information Year: 1998 Make: Lexus Model: ES300 Already Tried: I have a 1998 Lexus ES300, I Have had problems with the gas pedals sticking on three occasions but paid no attention to it until I read about this problem on new cars. Have there been other cases reported with this model? What should I do about it? Accepted Answer Hi, Your particular vehicle uses a mechanical, cable connection from the gas pedal to the throttle body as opposed to the electrical servo type throttles involved in the numerous recall related problems. Because of that, there would be no directly correlation between the two vehicles. That being said, there are 3 typical causes for sticking throttle in your vehicle. Least likely, but easiest to check is the infamous â€Å"floor mat obstruction†. This is typically noticeable while driving if your floor mat is interfering with the cable, but worth checking regardless. Second, is a worn out throttle cable. This is the cable that connects the gas pedal to the throttle body. Vehicles in northern states that have more issues with rust/corrosion are more likely to see a problem here. The cable is a thin metal wire sheathed in a plastic coating. As the exposed area of metal wire corrodes from environmental elements, it widens the cable making it more difficult to travel inside the cable sheath, often sticking. You can check this condition by operating the throttle body by hand an monitoring the cable to see if there is any resistance going into the sheath or if it travels smoothly. Lastly, and most common, is buildup of carbon/oil elements in the throttle body. Because of the ventilation system required by law, the throttle body is exposed to oil vapor from inside the engine via breathing hoses in the intake. Over time this builds up into a layer of hardened, baked-on oil inside the throttle body, right where the throttle plate needs to move. Due to it being softer than the metal throttle plate, the throttle plate always wins when it gets stuck, but the oil buildup does create resistance that will intermittently stick the throttle in position. Having the throttle body cleaned to prevent this should be done every 15k miles on this car for full assurance, or 30k miles at minimum for normal operation. Typical cost for cleaning is 1/2 hour labor (normal â€Å"minimum charge† at many shops), about $45 depending on the shops labor rate. pic] |Expert:   |Doug Cleland | |Pos. Feedback:   |100. 0 % | |Accepts:   |12 | |Answered:   |2/16/2010 | ASE Certified Technician Toyota Factory training and worked for a heavily Lexus trafficked Toyota store Read more: http://www. justanswer. com/questions/35ik7-i-have-a-1998-lexus-es300-i-have-had-problems-with-the-gas#ixzz0grgbynyy Example 3: http://www. motortrend. com/used_cars/07/1998/lexus/recalls/index. html Featured 1998 Recalls [pic] | |1998 Lexus LX470 | |Before you purchase a used car, make sure you check our comprehensive auto recall information to see if there are any | |problems that have been reported by the NHTSA. You can get detailed information on how and where to fix the car defect. | |Recall:   EXTERIOR LIGHTING : HEADLIGHTS | | | | | | | | | | Read more: http://www. motortrend. com/used_cars/07/1998/lexus/recalls/index. html#ixzz0grjp1yvD Take a noteworthy case in 1998. Toyota Motor Sales USA (TMS) responded to a recurring service problem with its Lexus vehicles by contacting owners, then picking up their vehicles, taking them in for repairs and leaving loaner cars as replacements. When done, the owners’ cars were returned—fixed, washed and tanked up. That level of service was made possible by TMS’s Corporate Customer Information System, an application used by the company’s call center in Iowa to help handle warranty, roadside assistance, prepaid maintenance and other service requests. But 1998 didn’t go altogether smoothly. Relying on data in that system, TMS began to mail checks to Lexus owners to replace troublesome tires. The checks, for more than $400 each, in some cases went to people who didn’t even own a Lexus. One errant check even found its way to a Toyota auditor, for a vehicle he hadn’t owned for a while. â€Å"You can imagine the repercussions of that,† says John Gonzales, data quality manager at TMS. â€Å"We can’t afford to be giving money away to people who shouldn’t be getting it. † The glitch was symptomatic of a bigger problem. The system depended on customer data stored in â€Å"roughly 15 databases in different parts of company,† says Gonzales. Just to get to all the data about a customer, call center employees would have to navigate through four or five mainframe applications, while customers waited. The glitch resulted in a mandate from Toyota’s office of the president for a centralized, single customer database. And Gonzales was tagged to make it happen. â€Å"The main goal was to service customers’ calls quicker,† he says. But also, â€Å"as the volume of calls went up, we didn’t want to increase the number of people in the call center. † Finding a way to pull off the consolidation turned out to be no mean feat. Gonzales and his team looked at a procession of products purportedly offering business intelligence,† but none fit the bill. Then, a solution was nearly dropped into his lap. While attending a How to cite Toyota, Papers Toyota Free Essays Company Objectives World domination with regard to car supply. Toyota seeks to achieve market leadership by delivering value to customers and providing high quality vehicles. Ill. We will write a custom essay sample on Toyota or any similar topic only for you Order Now Analysis Of Related Case Facts A. Porters Five Forces Analysis 1. Threat of New Entrants – Low New entrants can’t enter the market easily as it requires huge capital investment, cutting-edge technology and the industry have already reached economics of scale. Brand loyalty among the buyers. They won’t easily witched to new brand as purchasing a vehicle incurred high cost. 2. Bargaining Power of Supplier – Moderately Low Various types of suppliers in automobile industry such as cooling, electrical, fuel supply systems distributed across the globe. They own many interchangeable supplier and produced many components in the short time. Suppliers don’t own the power to determine the price. 3. Bargaining Power of Buyer – High Can easily switch to other brands if they’re cheaper and better specifications such as Hand’s new Hybrid models which are more lucrative Toyota Pries. 4. Threat of Substitute – Moderately High There are a lot of substitutes in automobile industry. When the price or the specifications of the vehicle is lack of favor, the substitutes will emerge. Besides from vehicles, buyer can opt for other substitutes such as bicycle, bus, train or even walking to reach their destination with petrol price hiking. However, it depends greatly on the consumers geographical location. 5. Competitive Rivalry -? High Competition between existing players is high. There is not much differentiation between players and their products. Other automobile impasse are moving aggressively with their strategy to own higher market share with Hybrid models. B. Soot Analysis Strengths Superior productivity and efficiency of Toyota Production System Toyota is the world’s largest vehicle manufacturer by production and sales Global strong brand awareness Strong distribution and market efforts focused on high quality, sales and close involvement with customers It has initiated new technologies Weaknesses Recalls caused quite severe financial impact It is criticized as a foreign importer by Japanese local car producers In May 009, they reported a record yearly net loss of $ 4. Billion In 2005 faced criticism because of a large scale recall and quality issues Opportunities Recovery of auto industries Positive growth trend in hybrid vehicle segment Growing demand from major emerging markets India and China Demand for fuel efficient, compact vehicles In 2009 Bank Of India decreased the interests on automotive bank loans Product innovation Threats Competition in the global automotive market Uncertainty in global economic condition Weakenin g demand, increasing cost Tightening emission standards C. PEST Analysis Political Factors Laws and regulations mandated by the government/state/local assembles may put in measures to ensure that safe and ethical practices are being followed to promote fairness within the company. On the other hand, these laws, especially those foreign to Japanese customs create policies that imposes more profit loss for TM because it is a foreign car company. Economic and Social Factors The first that may impact Tm’s profit is that the social status of the world economy as a whole. If the world market is suffering due to a world-wide recession. Customers may be forced to buy domestic cars due to their lower cost, rather than buying foreign cars. However, if consumers are earning a higher income, this may prove beneficial to Toyota thereby increasing company profit and accountability. Stability of the upcoming market is highly projected. Technological Factors Technological advancements may also be a factor in determining Tm’s overall production. The world relies heavily on technology to plan out the details and executions of company plans and goals. It would be wise for T MAC to continue its research developments to improve the company’s value and reputation. IV. Relevant Strategic Management Lean Production System Lean Production System is the system designed and evolved in Toyota. It is modified form of Henry Ford’s Mass Production System. In some areas its philosophy seem exactly opposite to the fundamental principles of Mass Production System. Mass Production System Mass production is a method of producing goods in large quantities at low cost per unit. This system of production is also known as Push System or Just- in-Case System . With precision equipment, large numbers of identical parts could be produced at low cost and with a small work force. Diversification At the time of establishment of Toyota Motor Company was in the business of making handloom. This can be seen as a Conglomerate Diversification as Toyota expanded its scope from Handloom Industry to Automobile Industry. Joint Venture ANNUM was established at the site of a former GM Fremont Assembly site that had been closed two years earlier in 1982. GM and Toyota reopened the factory as a joint venture in 1984 to manufacture vehicles to be sold under both brands. A joint venture was viewed as an approach that would lower the risk while providing help in overcoming difficult potential problems. Market Segmentation Toast’s most significant business segment is its automotive operations. Toyota carries out its automotive operations as a global competitor in the worldwide automotive market. Toast’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. V. Alternative Courses and Action Toyota Motors Corporation, one of the largest automakers in the world. Due to growing number of recalls that it faced, sales plummeted thereby affecting the company’s position in the global automotive industry. The company recalled million of vehicles in 2009 that does not only hurt the company financially but significantly damaged the company’s brand. Toyota must ensure that the cars produced are faultless and of good quality. Toyota must focus on differentiating the company by concentrating on the atmosphere and design of the vehicles . It must enhance customers service s full-service provider. Excellent customer service should be observed since it would be able to make the company boost their reputation and consistency in terms of customer satisfaction. There should be a unique offering of amenities and facilities which would give them a stand out compared to other competitors, something like a trademark item or facility in which it couldn’t be copied or duplicated. Toyota has a reputation of manufacturing CEO friendly cars like the Pries based upon advanced technology developed by the organization. Toyota has also sold on its technology to other motor manufacturers. There is a big demand for CEO friendly and fuel efficient cars. Since Toyota already has a first mover advantage in making hybrid CEO friendly cars, it should capitalize on this opportunity and invest more on hybrid RD and produce more environment friendly cars. VI. Analysis of Alternatives (Advantages and Disadvantages) VI’. Conclusion Toyota has sources of strong competitive advantages in global automotive industry such as value chain, strong brand, wide product offering and hybrid vehicles. Major recalls, economic crisis and intense global competition have used serious challenge for Toyota. Growing emerging markets and shifting Customer demands offer opportunities for Toyota to attain superior profitability and growth. Toyota must sustain its competitive advantages to retain its position and achieve future success. VIII. Recommendations Toyota motors are famous for their just in time manufacturing. The organization is doing well in this regard and competes with the world’s top car manufacturing firms -However the quality of the car as compare to other car manufacturing companies is not satisfactory. They should focus on the quality ND designs of the car. As compare to Honda, the intense competitor of Toyota in Asia and some other regions, they have elegant designs and quality cars. Apart from that the company should also focus on fuel efficient and hybrid cars to increase its production and to make people aware of these cars. TM needs to become more diverse, to allow the integration of leadership in all sectors of leaderships to create a uniform leadership team. The way the system is set up is not going too well for the company’s goal of being the number one manufacturer in the world. How to cite Toyota, Papers