Business Analysis Of Toyota's Competitive Industry
Key success factors in the automotive industry
One of the key successful factors in the industry relates to the flexibility in expenditure determination. Under this aspect, controlling …show more content…
In this regard, the company should depart from its current mission statement and create one that reads to develop vehicle products that are reliable and meet the expectations of our customers. With this new mission statement, Toyota would have encapsulated the various issues that customers look for while purchasing cars such as fuel efficiency, cost friendliness, and environmental protections.
Vision: Like the mission statement, the company should also redefine its vision statement so that it reflects the preferences and changes taking place in the automotive industry. Under vision, the company’s vision statement should read, “to be the global leader in the automotive industry by providing automotive products that stresses on safety, comfort, environmental protection, affordability, and collaboration with all stakeholders. With this new vision statement, again the company will have managed to deliver the messages that are pertinent to the automotive industry.
The Strategic Pathway to Success for …show more content…
The first level should be the organizational structure where the company should modify its current hierarchical structure to one that is open. The rationale for advocating change in the organizational structure is that issues in communication emerged as the principal obstacle especially during the recall incidents. At the heart of such communication challenges was the hierarchical structure followed in the firm. Accordingly, the company should ditch its hierarchical structure and adopt a holocracy style that will facilitate communication with the diverse stakeholders (Clarva –Cortez et al. 2012). The second level where Toyota needs to address as a strategic pathway to its success regards manufacturing strategy. Under manufacturing strategy, the company should desert the lean manufacturing strategy it currently pursues and embrace the adaptive manufacturing strategy. Under the current lean strategy, Toyota focuses on minimizing wastes while serving the various markets of the world. While this strategy has been beneficial in the past, recent developments in the automotive market suggest that there is need for a change in the manufacturing strategy. Consequently, the company should adopt the adaptive manufacturing strategy that stresses on the exploitation of information technology on manufacturing and non-manufacturing operations of the firm. By adopting the strategy, the company will be able to