Toyota Case Study : Toyota Company

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Toyota Motor Corporation (TOYOTA) is one of biggest automaker in the world. Main products are a passenger car, truck, bus, RV etc. The company headquartered in Toyota, Aichi, Japan which employed 300,734 people worldwide and was the third largest automobile manufacture in 2011 by production behind General Motors and Volkswagen Group. Toyota is the eighth largest company in the world by revenue (around 200 billion USD) in 2011. The company reported it had manufactured its 200million cars in 2012.

Automobile industry of japan witnessed an awesome accomplishment with the growth of Toyota. It became the biggest maker in the worldwide business. Toyoda kiichiro was hesitant to invest in automobile sector. In the year 1933 the company started its production. In order to have cost efficiency they adopted the mass production technology.

Toyota recognizes the impact their products have on the environment, and have taken the initiative to combat these issues. Through improvements in environmental information availability, active participation in environmental policies focusing on sustainable facilities and product developments, and self-criticism/evaluation to find flaws in critical operation tasks Toyota has become a role model in the automotive industry (Corporate Planning Div. 31).

Toyota Motor Manufacturing, U.S.A. (TMM) is deviating from the standard assembly line principle of jidoka in an attempt to avoid expenses incurred from stopping the production line for seat quality defects. This deviation has contributed to the inability to identify the root cause of the problem, which has led to decreased run ratios on the line and an excess of defective automobiles in the overflow lot for multiple days. If this problem isn’t fixed quickly, an increased amount of waste will continue to be incurred and customer value will be threatened.

What were the drivers of Toyota ‘s accelerator crisis? Why was Toyota facing a recall crisis?

As of March 31, 2014- Toyota Philippines’ net income doubled- from P270,214,076 (2013) to P420,981,897. Since 2012, Toyota has continuous growth in income. Cash sales lowered, but receivables increased to P26,728,237,910 from P19,496,446,696 of 2013 still indicating sales growth. Liabilities also increased slightly yet they still can cover up their debts and expenses.

Toyota Motor Corporation is an international car manufacturer that is based out of Toyota, Japan. Toyota started vehicle production in 1933 with the company being a division of Toyoda Automatic Loom Works devoted to the production of automobiles under the direction of the founder's son, Kiichiro Toyoda. Throughout the early years of Toyota, they were well known for making highly desirable vehicles that were efficient and reliable. However, in recent years Toyota has been plagued with recalls for various reasons. Many of these recalls are safety related issues that have tainted to company’s sterling reputation. For instance, in January 2010, Toyota suspended sales of eight recalled vehicle models to fix accelerator pedals with mechanical problems that could cause them to become stuck. In December 2012, Toyota announced an agreement worth more than $1 billion to settle a lawsuit involving unintended acceleration in some of its vehicles (Wikipedia, 2017). Business experts believed that it was not necessarily the recall that damaged Toyota’s reputation, but rather the way that the recalls were handled. Many individuals believe that Toyota executives were insincere in their apologies, and that they did very poorly at explaining the recalls and what the course of correction was for the problems (Kaufman, 2010). Toyota’s CEO, Akio Toyoda, stated in an inter interview that the company was growing to quickly and was putting growth-related goals above quality concerns

Toyota Motor Company was formed in 1933, as a division of Toyoda Automatic Loom Works by Kiichiro Toyoda. The company began making Type A engines with the support of the Japanese government. In 1937, the automotive division of Toyoda Automatic Loom became an independent company. The company’s early focus was to make trucks to support the Japanese military during wartimes, however, after WWII; the company began focusing on passenger vehicles again in 1947.

-Toyota faces tremendous competitive rivalry in the car market where competition is increasing almost daily. The company is also exposed to any movement in the price of raw materials such as rubber, steel and fuel

Toyota Motor Manufacturing USA, Inc is dealing with an increasing problem regarding seat supply, and one of the main reasons for this issue is due to seat defects. This has led to a decreased run ratio on the line, as well as resulting in the rising number of vehicles sitting off line with defective seats or no seats at all thus requiring overtime to make up for the loss of production. In addition, it should be mentioned about the way Toyota Motor Manufacturing handles the defective seats as they migrate towards the TPS (Toyota Production System) standards.

The longstanding reputation of Toyota as the best car manufacturers in the world was questioned in 2009 August when a California Highway Patrol Officer known as Mark Saylor who was off-duty together with his family met a fatal accident. The patrol office call 911 from his Lexus as the car gas pedal became stuck and made the car to accelerate over 100 mph in Highway 125 in San Diego. According to 911 tape recording, the officer final word was for the family to hold on and pray as the Lexus crashed into another car. This accident led to the death of all four passengers which became a public relation disaster for Toyota Motor Corporation. Since the fatal crash of a Lexus, Toyota vehicle have become exposed with a number of

At the beginning of the establishment, Toyota Motor Corporation is just as a division of Toyoda Automatic Weaving Company. In 1933, their Automatic textile machinery patents been sold to Platt Brothers & Co., Ltd. from the United Kingdom. The fund that coming from sale of the patents is used to development capital in this case is used for the automotive division. When the automotive division commenced their operations, then a lot of things to be done directly by Kiichiro Toyoda. In a short time machine “Type A” was completed in 1934. And then a year later the engine grafted to their first prototype passenger car called A1. In 1936 they launched their first passenger car called “Toyoda AA”. This model was developed from the prototype model of the A1 have been found previously. The vehicle is expected to be the people 's car.

Toyota is a key player in global automotive market. Its structure constitutes if various production plants in different locations and a very strong branding which helps it capture a major market share. Like other enterprises, Toyota has several strengths and weakness which makes it what it is now. Toyota heavily invests in Research and development which helps it come up reputable product line which is spread out throughout the world because of its strengthening global distribution network however its recent product recalling, loose grip in key geographic areas and wrong allocation of resources shows that even a strong brand like Toyota has its weaknesses.

Toyota Motor Corporation was created in 1933 by Kiichiro Toyoda, after organizational changes within the primary organization that was owned by his father Sakichi Toyoda, Toyota Industries, being specialised in the manufacturing of automatic looms and forklift trucks. The patent for the automatic loom was bought by a British company in 1929, helping the generation of the capital for the development of the automobiles industry (Menghani et al., 2014). The new company was focusing on automobiles manufacturing, becoming independent in 1937, when the first car was produced.