TOYOTA Company Analysis - Paper Example

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Wesleyan University
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Companies alters how it does in the international market versus how it conducts its business in the US by becoming more innovative in its marketing, distribution, store design, human resources, business policies and management methods including outsourcing (Aras, 2008).

TOYOTA (United States)

Degree of Specialization and Economies of Scale

Specialization in mass production refers to the use of particular purpose and automated equipment to perform recurrent operations. Economies of scale describe the overall rise in the output of production and rate of stock turnover of commodities. The costs incurred by Toyota Company during manufacturing of their motor vehicles are spread over the increased production volumes. In addition, the per-unit fixed cost of manufacturing decreases when production increases (Baur, 2012). Toyota adopted the assembly line in the manufacturing of their vehicles leading to eventual economies of scale. Each of their workers pays more attention to a specialized procedure in the process of assembly. Increased efficiency has allowed the manufacture of increased vehicles. Besides, there is a high degree of manpower specialization which includes designing of car models, working on testing the machines, marketing the vehicles brand among others (Jackle, 2010). The increase in production enhances diversification of fixed costs of manufacturing to be diversified over the rising number of vehicles, therefore, realizing economies of scale.

Degree of Synchronization of Production Outflows

Synchronization of production refers to the right timing of delivery, quality, precise quantities and the exact location as prescribed by the customer. Toyota has set strategies to develop rapid and smooth flow operations and supply networks. Therefore, it performs synchronization at the lowest and manageable costs, adoption of synchronization was because it timely meets demand with accurate quality as well as producing vehicles only when they are needed (Fassin, 2011). The employers are trained to assist them to sustain the improvements needed. Toyota, therefore, responds to requirement changes and stabilize their supply chains.

Use of Organizing Techniques

Toyotas organizational culture endeavors to develop improved brands of their vehicles with rising technology. Its characteristics are team play leading to greater potential and success. Each of the companys employee, therefore, undergoes rigorous team building exercises (Kelly, 2008). Increasing improvement through learning, Toyota puts into service information from the individual employee to develop policies in its undertaking to develop high-quality vehicles.

Computer-related Operation Technologies

Toyota adopted software and data science to increase its performance in the global market. Branded the Toyota connected Inc., the technology aims to serve the company for global operations and support to humanize the experience of driving to its consumers (Martin 2007). Also, the software will serve as a platform to advance future technologies among them being self- driving capacities and networked car capacities.

Total Quality Management

Toyota has always upheld the policy of customer first and quality first. It has adopted the total quality management strategy in its operations ensuring customers are provided products that satisfy their needs. Procedures are accurately done the first time and defects are removed from its operations. The policy emphasizes the need for employees involvement in the improvement of quality in the production of vehicles (Walsh, 2009). Wasteful practice is eliminated to reduce losses by increasing the business's profit margin. Improvement teams are also set up to monitor the quality of the vehicles produced.

Lean Production

This is a production system adopted by Toyota to ensure zero waste on their production. It was developed to ensure the vehicles ordered are manufactured most conveniently and efficiently as well as to ensure timely deliveries. It eliminates wastes on the basis that any vehicle manufactured is the one that is needed (West, 2009). Production instructions are provided once a vehicle is ordered where the assembly line is availed with necessary parts to commence production. The process enhances increased efficiency in the manufacturing of vehicles as well as better delivery planning due to transparent production processes.

Material Requirement Planning

Owing to the adoption of lean production by the Toyota Company, the specifics in material type, quality, sizes, and numbers have been convenient and transparent. For his reason, less waste is realized therefore reduced the cost of production.

Operations competitive strategy outcomes, measured against competition

Unit Costs

The lean production system has enabled the company keeps track of the cost of assembling a particular ordered vehicle. Therefore, fewer unit costs incurred


Order for a specific vehicle comes with clearly laid out reasonable deadlines. The synchronization system has been the most celebrated achievement of the company because prospective customers have confidence in the companys services.


The adoption of the Toyota connected inc software makes it possible for the company to develop advanced models of their vehicles. The policy of teamwork has helped it workers bring their experiences together in developing competitive car models.


The companys policy of customer first and quality first has branded it among the top players in the automobile industry providing quality vehicles.

Operation Trends, Problems and Opportunities

Based on revenue build up which is central to any business operation, Toyota was rated the 8th largest firm in the world. It is owed to the increasing demand for Toyota quality brand as well as positive consumers rationale to its services. The greatest problem encountered by Toyota is that they have had a lot recalls to deal with depending on the model of vehicle they manufacture making customers shun their product (Kleef, 2007). Among the opportunities utilized by the company are: The Toyota insurance company, Toyota selling their used quality cars cheaply and the Toyota school of automation engineering that has produced quality staff.

Comparison with other Companies in the Same Industry

Automaker companies such as General Motors (GM), Fiat Chrysler and Ford (F) have posed tight competition to the Toyota Company. However, the policies discussed above places them at the best position to win more customers who crave for quality but cheap vehicles


All managers are likened to both persuasion, and commitment of employers merits. The application of tablets in the making of decision currently is being integrated progressively in our workplace. Easier access to relevant data and heightened functionality in companies is achieved through the application of tablets in decision making. Thus, most company managers apply tablets to solve this matter. The paper explores evidence, on the application of tablets by managers to support decision making, to support and to help us build a strong evidence we consider obtaining articles from JSTOR, EBSCOHost and INFORM. Also, the foundation of the theoretical context primarily lies on administrative, technology, and managers decision characteristics aspects.


Due to development of new technologies and other advances the organization of work process has dramatically changed in the 21st century. The possibility and necessity to make decisions while not being in the office or working site. Since decision-making activities require a remarkably increased level of urgency, the following research is crucial. Also, managers who make these decisions have to work outside of the offices for varying purposes. The circumstances which are new show the different picture comparing to usual forms of decision-making activity that used to happen within the office environment. A functional workplace of this century requires managers to have the capacity to make decisions wherever they are and whenever the company needs it. Also, new ventures are entirely dependent on the contact of managers and the relevant stakeholders. Moreover, it is vital to articulate that the higher level of mobility is a requirement, plus it is flexible. Thus, the tools that support decision making have to be within the managers' and operations personnel's reach all the time as Power (4) suggest. (2013 p.1385),

Also, we must appreciate technologies appearance and development of tablets, computers and other smartphones. Thus, we have grown and moved to a better situation. Tablet computers are useful in making important remote decisions and do other kinds of work. The important thing about these devices is the decision support system (DSS) applications with the ability to provide information using the modern technologies. What we see today is the great popularity of such applications. Still, we do not know enough yet about how managers use the mobile DSS to make important decisions and to facilitate the decision-making process in general. Their academic paper is the subject of this critical review. The researchers organized a comprehensive exploratory study of managers behavior in a government organization to evaluate the reasons why and the manner and in which they use tablets to get assistance in their decision-making process. The additional challenge was their important job in government.

The main idea of this paper is to give the critical evaluation of the conference paper by Xiao, Meredith, and Gao (2016). This report begins with the introduction section, which explains the reason for its creation. Lastly, let us consider discussing the relevant theories and dominant paradigm, dependent variables, environments studied and measurement techniques, and will end with the conclusion.

The Research Questions

1. The General Study Question

Why and how managers apply tablets in the process of making decision?

2. The specific Research Questions

What triggers the desire for managers to apply tablets in enhancing decision making?

Which manner of applicability is the tablet useful in supporting decision making?

Theoretical Approach

As an exploratory qualitative study stated by the authors emphasized depth rather than breathe, According to Neuman (2011) the number of participants exceeds the recommended target. As other researchers say, sometimes the authors use this theory without the in-depth consideration of its usefulness. In other words, they use the method as a model, not even thinking about the specifics of the researched question.

The managers who face the decision-making process will have to use their cognitive abilities when using the devices, and this is the issue the authors of the research should have worked on better. There is a possibility to do that. Xiao, Meredith, and Gao should have integrated cognitive aspects into the TTF theory. That would give them and readers the better and more comprehensive understanding of the reasons and ways the managers use the tablet computers in their everyday routine. Such information could also lead to better understanding of the fit between the applications and tasks that managers have to perform.

Critically, the main issue is that authors made their research comprehensive, however, it had some several significant gaps. In the event of addressing their objectives, they did not manage to gather broader focus group with managers from different types of organizations, level of responsibility and area of responsibilities. Also, they did not take into account their past user experience. The authors did not apply the model to its fullest, missing the possibilities to include s...

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