A Case Study of Toyota.
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A Case Study Presented by: Melanie Osowski MLR 465 Professor: John Reece February 6, 2006 Toyota is a name that is synonymous with a quality product. Their enormous growth in the last half of the 20th century is sincerely note worthy. Toyota grew from a modest textiles manufacturer to one of the world's largest automobile manufacturers. The two areas that helped Toyota to grow and excel was their ability to trim the excess costs off their operations and offer a competitive product to satisfy many needs of the public, not only in their own native land, but in the United State and also in Europe. Toyota was originally a textile operation. The creator and inventor was Toyoda Sakichi. His modest beginnings did not hinder his abilities to be creative and allowed him to generate enough wealth to provide well for his family and employees of the automated loom company that he developed. Toyoda eventually came to pass, and on his death bed convinced his son to continue making attempts to break into the automobile industry. Even before he had ever tried to make automobiles on a commercial level, Toyoda knew that this could be a success, as he possessed the vision of a true entrepreneur and believed that this task could be accomplished allowing enormous growth for the company. Although reluctant, Toyoda's son Kiichiro with great effort in 1930 was allowed to set up an automobile department at the textile facility. Its original set up was more of a skilled craft rather than assembly line production that later became the model for mass production.
> The products are both large and small. Some more gas efficient than others and as technology develops, they will incorporate other sources of energy to help reduce the need to use fossil fuels with their vehicles. * Ability to be competitive with the auto giants > Unlike their giant competitors, their ability to change and set up equipment in a fraction of the time allows them to offer more variety at a competitive price. > Their ability to assist in the streamlining of operations with their suppliers not only assists their suppliers with a competitive advantage, it helps to control the costs both to Toyota and to their competitors and therefore, able to increase their profits. > Toyota's JIT inventory processes add value to their P&L statement by merely reducing inventory kept on hand, and so less of their money is tied up inventory. * Dynamic marketing strategies and techniques > Marketing spends a great deal of effort researching the customer needs and compiles a large database of information in order to assist in the development of new products. > Their techniques help to identify unique needs and their information passed onto the planning department helps in increasing the value of a product that is developed to satisfy a certain market. > They place high value on customer relationships and attempt to develop them to be long lasting or lifetime return customers. * Significant financial resources > Toyota started out a small company, however, currently Toyota is one of the major players in the automotive market, and they have a universal conglomerate that virtually removes any limitations on financial resources, regardless of the nation.
This is just one example of how Toyota researched their market to find what the customer really wants or needs. The Welcab generates from a need from the wheelchair bound market. Currently, most vehicles designed for the handicap is customized and very costly. Toyota is making the attempt to provide something in the market that is useful, fits their needs, and most importantly, affordable to those with the need. Toyota is not only improving their model types, but the operation of their vehicle, security features and the most up to date luxury features to fit all tastes for various markets. Toyota continues to develop models to fit as many markets as they can to increase sales with little to painless transition between set up rounds. They have been smart enough to realize that their production and success relies on the efforts of a team. A team that consists of trained and empowered employees for quality, trained and consistent suppliers that have not only learned how to manage their own inventories, but assist Toyota with their by using a "Just in Time" inventory process, and an overall management structure with vision and drive to created an empowered model that all the pieces of the puzzle are important in order for the whole to succeed. Toyota has also diversified into other services such as finance and car rentals and are always looking for new ways to grow their business and offer more services to their patronage. Toyota's future will continue to be bright as long as they continue to manufacture automobiles and lead the industry into the future with their advances in production process, as well as future technological developments and product cost control.
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