Weakness of Toyota

1616 Words Nov 24th, 2008 7 Pages
Japan 's smooth operators:But does lean production damage the brand?
Strategic Direction. Bradford:2007. Vol. 23, Iss. 4, p. 10

Abstract (Summary)
This paper reviews some of the advantages and potential disadvantages of lean production in the Japanese automotive industry. This briefing is prepared by an independent writer who adds their own impartial comments. According to the experts, 2006 saw Toyota become the world 's largest automobile manufacturer in the world, knocking General Motors (GM) off the top spot. It is a big leap from the situation in 1950, when Toyota produced 11,706 units per annum compared to GE 's 8,000 units per day. The cause of this switch in position? Smooth operation. Heavy operating losses have
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The hope is that an internationally recognized system of environmental protection will eventually be set up and adhered to, so that green practice will not inhibit international trading. Keeping hold of their certificate means that Subaru now returns some parts and packaging back to suppliers to be re-used, melts and processes soaked rags into plastic beads for electric wire harness covers, and burns other waste for energy. The plant now saves money by cutting waste, and always ensures that lean initiatives do not in any way hamper production.

The customer response

In theory lean production should win favor in the eyes of an ever more environmentally aware customer base. Indeed, we do tend to voice approval if we are made aware of the benefits. From a practical point of view lean production often means we get hold of our car sooner and it has few problems. From an ethical one, it appeals to us to know that the companies we support are acting in an environmentally responsible way. Or does it?

Oliver and Holweg believe that lean production can actually damage sales in some sectors of the market, especially the prestige end. Whereas the reliability and the fulfilment of basic functional needs might win over those on low to mid level budgets, those with more cash to spend tend to be impressed by different things. Japanese cars constantly score highly

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