Corporationis a Japanese automotive manufacturer located in Toyota, Aichi,
Japan. It has diverse employees and executive staff of approximately 338,875
employees worldwide as of February 2014. The company has been rated as the
world’s first automobile manufacturer to produce more than 10 million vehicles in
one year. This has made the company grow both externally and internally thus
making it ranked as is the 13th-largest company worldwide by revenue in
all these efforts to ensure that they are efficient and successful in meeting
their clientsâ€™ needs and other operations there are other challenges which
makes them stagger economically, socially and marketwise.
These problems and others have made the Toyota company
face series of serious and continuous crisis due quality which has affected the
company in general. As a result, the companyâ€™s reputation has been threatened
such as that of the best manufacturer of quality cars and developed brand
image. This has even lowered the market and trust the company had on its
customers and key clients.
Competition and market fluctuations are the key problems
which are faced by Toyota company. Such issues significantly affect the
production of the company.
The above problems have gained their basis in the company
due to various aspects in the organization. Competition is an external factor
that is faced by all the organizations due to the quality of services and
products. Thus every organization should come with competitive strategies to
ensure that they remain competitive at all times.
In Toyota, competition from other rival automakers reduced
the sales in 2012 gave a hint to the company that competitors are coming up. In
America, (Team, 2012) Toyota has a Prius that
deals with distribution of their vehicles. It accounts for about 12% of
Toyota’s American sales. However, its competition power decline in 2012 as Ford
introduced new and improved hybrids and electrics called Ford’s hybrid C-Max, which
was launched in 2012 and made a great debut with sales of 400 units Prius in
For example, the major problem that made Toyota
completely lose market is the fact that in late 2009, (UKEssays, 2015), Toyota Corporation
saw 9 million of their vehicles recalled due to reports that most of their vehicles
were realized to experienced unintended acceleration which could easily cause
accidents. This problem led to other problems and killed the big reputation of
After the market share decreased, Toyota company net
sales, in 2011 decline (Team, 2012). some of the issues
that were highlighted to have caused include the market size reduction and even
the production constraints that made their products appear to be of relatively
less value compared to those from other close competitors in this case the Ford.
These problems and other key problems if left can result
to total closure of the business. If for example the company reported a daily
decline of customers the competitors will dominate the market and completely
What could happen if the problem continues as it is? What
could happen if the process is improved? Outline both tangible and intangible
positives and negatives for improving the issue or ignoring it. Identify some
potential general business results and impacts on business relationships.
Desired outcome: How will
your new process be different from the old? What competitive advantages will it
yield? How will it impact stakeholders? Consider the cost-benefits of the
process improvement; estimate how much will it cost the organization and outline
how costs will be offset by the benefits derived.