Mini Case Paper #1-Building “World Car”

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Mini case paper #1-Building “world car” 1. Discuss the strategies implemented by Toyota and Honda to achieve greater efficiency in car production. One of the major strategies implemented by Toyota and Honda to achieve greater efficiency in car production is pursuing the continuous improvement and using “lean” production system in order to eliminate waste in the organization. Toyota and Honda show a strong emphasis on total product quality not only at the expense of lead time but also in the development of productivity. Lean production system has combined the flexibility and quality of craftsmanship with the low costs of mass production (Hindle, 2008). It aims at eliminating the waste in the different stages throughout…show more content…
Different countries have a variety of cultures and perceptions which can be reflected in the companies’ theory of business. For example, Japanese car companies concern about environment and energy resource, so they employ best-cost strategy which combines low-cost strategy and differentiation strategy to manufacture highly fuel efficient lightweight cars that are different from American and European cars in terms of design and quality. American and European car companies prefer to adopt differentiation strategy or focus strategy based on their cultures and consumption concepts. Japanese car companies’ theory of business has gained a huge successful during the period of the economy recession and the energy crisis. The car companies use national differences to gain competitive advantages by venturing overseas and setting up plants to operate in major foreign markets. The car companies would locate labor-intensive production in low-wage countries like Malaysia, or locate R & D activities in high-technology and low-wage countries like India, or locate operations in high-demand countries like China. Car companies can gain added cost efficiency by establishing car manufactories in major foreign countries due to the comparative costs. This can reduce the transportation costs by transferring from home country to the foreign countries. The political pressure

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