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Globalization has facilitated competition in many business organizations which improves production of quality goods and services. Bateman (2010) confirms that technological advancement has profoundly influenced the manufacturing industry mainly through competition. Innovation and the creation of new products have changed the business environment situation posing a challenge to the firms. Therefore, for a company within the manufacturing industry to survive this competition it is crucial to revise its operations management. From a technological perspective, Dove (2010) furthered that persistent competition from automobile industries like Volkswagen and General Motors poses a substantial threat to Toyota firm. However, the Toyota Company can still get high purchasing power if it uses the necessary techniques of business operations management. The success of a business depends on its ability to maximize its output and minimize its inputs. The essential elements needed for stability in the market for a business include proper planning, good staffing, organizing, coordinating and controlling of the resources used in the production process. The strategies enable the company to maintain the production and improve compatibility after the evaluating of the market through feasibility studies.
Toyota Motor Corporation: Business Operations and Systems
Business environment contributes in the performance of a business premise (Cartwright, 2010). The environment can be either internal or external. Internal environment refers to the factors within the business that affect its operations such as management policies and financial status of the business. The managers and employees are able to deal with the occurrences inside the business External environment refers to the factors that affect the business organization from outside. These factors may be technological, political, socio-cultural, economical, or international. They influence business operations both positively and negatively. Moreover, the business cannot avoid them because they exist and are essential to consider, for a business to perform well.
In the beginning, around 2010, the technological changes have motivated the Toyota Company to pursue on the invention in order to match the standard of its competitors. To cope with the current competition, Sack (2010) revealed that the company is working on modalities of diversifying its market. For instance, it has changed its market strategy to selling globally. Toyota Company has put efforts in place such as online advertising and selling of vehicles. Many stores have also been established in most countries across the world to reach the customers, who do not have an internet access. As a matter of fact, technology has taken the company to the highest level with production of a wide range of vehicles. The production of hybrid vehicles, such as Auris, Camry and Highlander, has increased Toyota’s popularity in the modern market. As Aquilano (2010) outlines, the technological change has revolutionized the operations of the company. Consequently, Toyota enhanced adjustments in the business, such as methods of production, communication process with consumers, and distribution of products.
Availability of finance has enabled the company to expand to the entire world. The financial resources have facilitated the acquisition of raw materials for the continuous production process. As a result, the supply of vehicles has risen to satisfy the market demand.
Demography as a factor has contributed towards determining the purchasing power of the company. The population composed of rich people, who were working, and this factor has boosted the company, as many people had in need for the vehicles.
However, the population had to obtain financial services from the financial institutions in order to buy vehicles in installments. The number of customers has increased by offering financial assistance to the regular customers. This has enabled the company to make profits.
The company has enjoyed peace and stability dictated by the political arena that has enabled it to conduct its operations. Moreover, Cindy (2009) observes that consistent peace in some countries has made the company expand the business in these countries. Furthermore, foreign experts have become engaged with the operation of the business which has led to a great success.
A healthy competition from other manufacturing companies has motivated the Toyota Company to become flexible and remain stable in the engineering industries. Government policy in offering incentives and reducing taxes on the raw materials essential in the manufacturing process has also increased efforts for thriving of the businesses. Furthermore, the firm became protected from unhealthy competition, through the imposition of high tariff charges on the imported vehicles.
Ornstein (2008) asserts that economic recession in most cases affects the business negatively. Therefore, the company can survive in both low and high seasons of sales, by making long term decisions, based on the interest rates and inflation factors. Moreover, it is the government that intervenes during high inflation period, by amending the wage policy, in order to protect the industry.
Toyota motor company has continued to become the world’s number leading automobile industry. This is as a result of favorable business environment and its ability to embrace the use of technology in operations management. Moreover, the company has designed a plan to enable it adopt the continuous environmental and technological changes.
Technological change affects all the plans of the company. Both the production and marketing plans of the organization ought to be analyzed to fit the current market trends. Moreover, the management pattern should also cope with the modern business environment. For example, the entry of quality and long lasting machines has helped the Toyota Company to introduce new types of vehicles to meet the demand of customers. Gerstner (2010) expresses that transformation stage has made the company attract many buyers by shifting from the production of fuel engines to the electric engines. This move has enhanced competition with other companies, but Toyota carries the day in the present market because of the efficient and durable products.
Business organization should be ready to learn how to cope with some challenges before it adopts a certain technology. This change calls for the company’s critical analysis of the new technology, in question, to examine its effects. Analysis allowed the company to understand the significance of the technological input and mobilize the workers to accept the necessary changes. Moreover, this process enables the firm to identify the necessary steps in case, there are some negative effects associated with implementation of the technology. Adoption of a technology requires the company to design strategies to implement its ideas. Therefore, the company has to work on some modalities that will make technology prolific in the economy. The company should design ways on which it is going to get resources that normally accompany the technology in use. For instance, many projects are extremely complicated in nature, because of the financial and human resources they require. In such a case, the company must be prepared to allocate the required resources at an affordable cost.
Marketing of goods has taken a different direction to ensure the products distribution and selling after they are produced. New technology, today, is used in product promotion, which has bailed the company out to a great extent. For example, in the outsourcing method the company is working closely with the other companies to sell its products. This has enabled the Toyota firm to increase sales in the different parts of the world. Franchising and the use of different logos such as, The Car In front is always Toyota, and You Want It You’ve Got It, to promote the product currently used.
Development of ideas obtained from the technological changes should be given the first priority for the success of the business. The managers ought to focus on the operation management skills in order to maintain the company’s leading position of the market. This can be influenced by the mechanisms devised by the managers of the organization such as employees’ motivation and exploitation of the locally available resources.
Rapid changes eminent in the business environment have influenced the decision making process in the company. Moreover, stiff competition from other firms has also posed a lot of pressure to the company. However, the decisive move by the business to change its policies and embrace technology has upgraded it to the next level. The management has tried to engage every worker in the decision making process advocating for equality among the workers. Currently, the Toyota Company has a third of its staff and employees consisting of females distributed evenly in both managerial and junior positions. It is the implementation process of skills and use of capital intensive measures that still influence the growth of a business structure.
The Toyota Company has managed to enjoy a favorable market offered by the technological change and environmental change. Advanced technology has changed the management style of the company by employing qualified personnel. Moreover, the managers have undertaken the relevant, cost effective, training system aimed at transforming the economy. Changes in technology have also motivated the company to invest widely in the economy. For example, the establishment of training institute for engineers has made it possible for the locals to acquire the basic skills that promote the continuity of the business. Thus, employment of foreign employees has made it possible for the company to expand rapidly. The transfer of technology between countries, in the Toyota industry, has increased its capability to remain stable even with the stiff competition from other companies like Ford, Chrysler and BMW. In order to improve the products distribution, the company has made liaison with different governments. Further to this, Toyota has initiated publication of journals and technical books, which have increased technology awareness among the students. Moreover, research activities have led to the diversification of markets up to the less developed countries. Thus, the economic conditions of these countries have stabilized. As a result, income distribution of the population bumped up leading to high standards of living.
The management employed contributes to the sustainability of a business, as well as the company’s profitability. Toyota management has motivation not only through their income, but through the management mode, as well. Toyota managers are exceptionally competent in their decision making process and implementation process. The employees are encouraged to work hard for the achievement of its stated goals and objectives. Rapid changes in the economy have driven the management to empower its workers. Consequently, the employees have had an exposure to several business seminars and workshops. Education programs and refresher courses offered by the company makes it appear unique. As a result, Toyota’s gained a recognized reputation in the competitive vehicle industry. Efforts by the company to streamline to the technological changes have led to the realization of many mission statements of Toyota Motor Corporation. It has surpassed quite a number of companies because of an effective channel of communication within and beyond the business environment.
Toyota still remains an outstanding company because of continuous innovation of ideas such as solid customer relations and the modern trends in the business. The innovation of fuel saving engines and electric vehicles in the market has helped in cutting of the cost of production and maximizing the output. Thus, the company has remained dominant in the market despite the competition from other companies. Nevertheless, the process of coping up with changes has some challenges carried with it, which has put the company at a great risk. Therefore, Toyota has placed stringent measures to promote innovation process and as the way to increase its margins.
As technology continues taking root, and drastic changes affect every sector of the economy, the business ought to renew its operation strategies. For instance, instant information flow needs to be maintained, in order to reach the consumers globally, as well as make the company stand out as a giant in the market. The use of computers in the firm should be increased to enable the managers remain in touch with the employees all the time and to meet the needs of the customers all the time. Moreover, the company should advance the communication that is less costly, whereas is faster and accurate. Data transmission and the development of digital and cable video reduces the principal constraints in the preparation and dissemination of information. Thus, the company will be able to reach many customers within a short time, at a reduced cost, as well as counter the efforts of its competitors.
Moreover, the emergence of new companies and industries requires the Toyota Corporation to reorganize its system of management. Job satisfaction and appropriate work environment will motivate employees to do their best in the work place. The company should carry out appraisal performance of the employees and reward them according to their output. Planning for the employees needs will enable the company to enjoy competent and committed staff. Equal opportunity and affirmative action plans will give employees a sense of belonging in the business and stimulate them to be loyal to the company.
Awareness by the management of the realities of technological changes helps the company to raise its standards of operation. Therefore, Toyota Corporation managers should be ready to embrace changes and set up policies that will make the company stay in the business for a long time. The company should empower the employees to adapt to the changes by educating them on the latest technology and through training and attending international business meetings.
Implementation of technological change is a necessary step to be taken for the development of a business; however, for its achievement, the managers ought to know the current status of the organization. This helps in the identification of existing problems and focusing on how to solve them in order to protect the future operations. Secondly, the managers should be focused on the upcoming events driven towards attaining the visions of the organization through transition. Moreover, unity is significant in effective business operations management. Thus, both employers and employees should embrace teamwork and act as role models in the implementation of technological changes in the business. Therefore, motivation of worker should be the driving force of every organization for it to realize its set goals. Feasibility studies enable the company to know the environment, prior to investments. It is advisable for the company to evaluate various opportunities available such as the government policies on the economy. A political stable environment and positive attitude to foreign investment boosts business activities.
To summarize, in order to curb the challenges faced in a business environment, business should work out and implement the relevant strategy. Technology advancement should influence the business positively and help it reduce the production costs and increase profits. Mutual understanding in the workplace and adherence to ethical issues such as healthy competition are necessary for the success of the business organization. Moreover, technology needs to be embraced after carrying out proper analysis for the perpetual improvement of the Toyota Company.