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Toyota
Presented by : Group No 8 Anirudh G Shruti Jain Gopalakrishnan 18 27 28
It is also one of the largest family-controlled companies in the world, which has been under continuous family control for over 100 years
In 1982, the Toyota Motor Company and Toyota Motor Sales merged into one company, the Toyota Motor Corporation
In 2012, it was the largest automobile manufacturer in terms of production and eleventh largest company in the world by revenue
It is spread across North America, Europe, Asia Pacific, South America, Africa and Middle East
Ford has produced trucks since 1908, also involved in the manufacturing of tractors, buses
Also offers automotive finance, sells aftermarket parts and recently acquired Software Company Livio to Further Advance In-Car Connectivity Leadership Internationalization through strategic alliance with Mazda, Japanese manufacturer to counter competition from other Japanese companies and to learn about quality production and other technological information
Toyota also established a commercial dealership called Toyota Diesel Shop from 1957 until 1988, that sold various commercial platform trucks, buses, and forklifts A JV with GM in 1982 , New United Motor Manufacturing, Inc. (NUMMI) , which eventually ended in 2009
In 2002, Toyota managed to enter a Formula One works team and establish joint ventures with French motoring companies Citron and Peugeot
Automotive Finance
TOYOTA
Corporate strategies
FORDs business strategy is their ONE Ford
plan, wherein they would,
Toyota's
corporate encompassed by :
strategy
is
new
Specialized resources working for an organization wherein the focus is not on diversifying the portfolio but on quality production Adding value to the organization by developing its people Recognizing that continuously solving root problems drives organizational learning
Work together effectively as one team The company has a specialized set of resources that compete in a narrower range of business i.e. automobiles
The corporate advantage of these companies lies in the tight fit among the resources, businesses and the organization
1. Alliances for Market access: Market Entry Alliances in developing countries such as India and Pakistan 2. Global leverage alliances: For acquiring Diesel technology know how, Robert Bosch(injection technologies), Fiat for efficient diesel engines and Volkswagen for higher range diesel engines 3. Component sourcing alliance with DENSO, GM, VW
Commitment to quality
Exceed expectations of customers Constant innovation in the products being offered Future of mobility
Safest and most responsible way of moving people And challenging goals
RESOURCE ENDOWMENTS
RESOURCE COMMITMENTS
ACTIVITIES
Focus on core competencies One Ford One IT synergy Newer facilities Top Management commitment
Focus on core-competencies restructuring to operate profitably changing external environment Conceiving products that customer wishes to own co-creation Financial improvements stronger balance sheet Teamwork One Ford One Team One Plan One Goal Concept of World Car One product for multiple markets approach
Competitive Positioning:
Resources
Capabilities
Enterprise data consolidation building newer facilities upping assembly line speed
Flexibility retooling operations volume flexibility to meet the external environment changes Concentration on core brands Strategic alliances and global supply network unmatched
Distinctive competency
Cars engineered to accept full technology range meeting unique customer preferences
Cost efficiency going hand-in-hand with revenue enhancement
RESOURCE ENDOWMENTS
RESOURCE COMMITMENTS
ACTIVITIES
Medium long term initiative: Refine corporate culture joint ventures with companies Monozukuri - conscientious marketing Emerging Markets concentration meeting local needs product design keeping local needs in mind
Competitive Positioning
Cost-leadership strategy achieved through process differentiation Economies of scale TNGA bringing technologies together standardization across value chain activities
Resources
Empowered human resource high level of employee stability and loyalty Coordination and cooperation supply chain partners JIT inventory system expertise in robotic technology Toyota Production System capability to competitive advantage Improvements in processes employee contributions : 10 per employee per year (99% implementation)
Capabilities
Extended partner relationships and development of exceptional teams and leaders in-house
Distinctive competency
Lean Manufacturing Long term sustenance Higher value creation through well-designed products with cost-price balance Robust Human Resource philosophy in line with overall organization philosophy
Ford
Low Cost strategy through activities that offer economies of scale and scope Product offerings that cater to global markets One product for the world Reinvesting Savings to better manage the platforms and strive towards greater efficiency Focus on profitability driving brands restructuring to operate at greater profitability Strengthening bottom line and balance sheet
Toyota
Differentiated process reforming production technology based on the Toyota New Global Architecture (TNGA) Business unit optimization will be under the purview of the individual SBU Research and production to engage in face-to-face interaction transforming the activities to serve the markets Developing better cars location dependent perception design and development specifically catering to those markets
STRUCTURE
Ford
Centralized Leadership structure with decentralized policy implementation Integrated global structure from a regionally focused structure Hub and satellite approach coordination from regional centers maintaining the overall DNA of Ford
Toyota
Automotive business : 4 SBUs Toyota No:1 for developed markets, Toyota No:2 for emerging markets Empowered manager decision making genchi genbutsu on-site and hands-on experience TNGA planning medium to long term product strategies & Product and Business planning marketbased product strategies Lexus international unit a separate unit establishing it as a Japanese brand globally
SYSTEMS
Ford
Scorecards to track performance part of the annual business planning process Compensation levers: a. Individual goals and performance evaluation b. Company wide progress and annual targets Weekly Business plan review at the corporate level sustainability scorecard Adoption of management systems adhering to standards both at the corporate and supplier level
Toyota
Toyota Production System TPS - problem solving solution Continuous process flow standardized systems and processed with employee empowerment Consensus based decision making relentless reflection and continuous improvement Competitive position when it comes to human resource management
STAFFING
Ford
Employees from diverse backgrounds integrating people processes into ONE FORD Career Management: Pulse process survey candid feedback from employees to be incorporated into business planning review Inclusion- major factor for workforce recruitment at each level in the organization Skill based recruitment with employees aligned with the overarching organization strategy
Toyota
Staff viewed as Knowledge workers ideation from shop floor to boardrooms Quality People value stream model selecting the right people Fosters contradictory viewpoints as a deliberate attempt to enable employees find solutions for business problems Recruitment aligned with organization strategy
SKILLS
Ford
Employees from diverse backgrounds integrating people processes into ONE FORD Career Management: Pulse process survey candid feedback from employees to be incorporated into business planning review Inclusion- major factor for workforce recruitment at each level in the organization Skill based recruitment with employees aligned with the overarching organization strategy
Toyota
Robust production process with expertise in hybrid vehicle design and development Operational efficiency globally standardized with increased employee involvement Supply chain management receiving benefits of specialized suppliers
STYLE
Ford
Alan Mullaly CEO Visionary leadership style taking the external environment into consideration No-Fail Attitude motivation across the organization - focus driven Change Management not just people but also cars expertise in turning a company around
Toyota
Management practices transitioning from Japanese style to a more westernized style coping with the changes in the global scenario Traditional slow response to faster response change in leadership as board members from diverse backgrounds were appointed Importance towards corporate governance increasing global organization
SHARED VALUES
Ford
Community initiatives: SUMURR catering to rural citizens as a part of community engagement Driving Skills for Life Fords vision of safety and standards communicated to young drivers in line with organization Water conservation refining the value chain adding value to the community at the same time eliminating loss of value from the corporates perspective Cluster engagement Operation Goodwill empowerment, training and sustainable development
Toyota
Contribution through sustained development societal enrichment environment, traffic safety, education and culture Low-carbon society establishment recycle based battery-to-battery recycling Environmental education Forest of Toyota and Shirakawa Go-Eco intitute
Leadership Challenge
Alan Mullaly is likely to quit by end of 2013 or beginning of 2014
So, sustaining the transformations and leadership activities done by Mullaly in terms of the culture or strategies such as One Ford strategy will be the biggest challenge faced by Ford
Green Vehicles Due to increased emphasis on the manufacturing of eco-friendly cars, it has become important for every car maker to make more fuel efficient cars and emit less smoke Hondas Civic GX is a green car and won the title of greenest car of 2011 from American Council Ford has taken initiative with the production of Fiesta SFE but it should produce more eco-friendly cars in alignment with the Fords sustainability strategy Pricing Small world cars intended to be sold in developing markets which are price sensitive Produce cars which are not only better in terms of features, performance, fuel efficiency but also in terms of low pricing
Main competitors are Toyota, Honda offering products that are low priced, nice features Ford should invest more in R & D and focus on removing the glitches from the existing software
Geographic Challenges
North America accounts for about a fourth of Toyotas sales but because of the weakening of the macroeconomic environment caused by fiscal cliff, global sales may drop. Also, competitors like Ford and Honda coming up with new hybrid and refreshed models
Sales in Japan accounts for 30% of the total sales volume But due to natural calamities like earthquake, tsunami in 2011, the government provided tax incentives to buy cars. So, buyers rushed to purchase new vehicles before the subsidies ended in September. With its expiry, the market is expected to fall by 20% In China, due to anti-Japanese backlash, Japanese automakers have suffered
Toyotas value proposition has been built upon quality and reliability. Its culture, defined by the Toyota Production System, completely supports that value proposition. It has set the standard for quality and reliability in its industry and rose to the top on these core competencies. Operational effectiveness of Toyota has been matched by its competitors in terms of quality and reliability Now it must develop new competencies in design, innovation, and customer engagement to remain the industry leader.
Regulatory Challenges (Government) There are stricter government regulations on safety, emissions and fuel consumption, and rising customer demand for vehicles with green and luxury features So, cars are becoming increasingly sophisticated both in terms of how they are designed and how they are manufactured This has led to growing technical complexity of todays vehicles
Eco-friendly cars
One of the most powerful and reliable products that Toyota has is the Hybrid cars, which helped the company to recover from it crisis.
So Toyota should meet the demand on the environmental cars by finding new and creative environment friendly cars such as the electric car. Geographic recommendations Toyota went to its first loss in its operating income in its life due to the mortgage crisis in the United State.
The company was obviously affected very badly by a crisis that happened in one country.
Toyota shouldnt focus in one market and neglect other important and rapidly growing markets such as China, India
Organization Structure Decentralized structure is a good structure for Toyota. It can bring more coordination within the organization, having more effective communication among head managers, division managers and employees