...Running Head: Ford Motor Company and the Toyota Motor Corporation Ford Motor Company and the Toyota Motor Corporation AIU – MGT680 Abstract Two major automakers are Toyota and Ford. This paper will compare the two companies to better understand the contributions to for success of each company. This paper will include a SWOT analysis which identifies strengths, weaknesses, opportunities, and threats to these companies. It will also include a plan of action for one weakness to turn them into strengths. It will discuss the current issues being faced by each company and how it affects the global operation because of the importance. Ford Motor Company and the Toyota Motor Corporation Ford Motor Company was started by Henry Ford in 1903 (Heritage, 2014). Toyota Motor Corporation was started by Kiichiro Toyoda in 1935 (50 Years, 2014). While each firm has been able to develop a relationship between the political and economic forces within their communities, they also understand a strategic plan is important and will guide them to an effective relationship within their communities. This type of plan will help the two firms build brand name as both firms have successfully done. The following table will illustrate the main issues Ford and Toyota are facing. It briefly explains the current position or view of each company to help better understand who the two firms view their community responsibilities. Issues Ford Toyota Legal, Social and Economic Environments Follows...
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...The Toyota Motor Corporation can trace its roots back to the textile industry of the late 19th and early 20th centuries. In 1890, Sakichi Toyoda invented the wooden Toyoda handloom then the Toyoda automatic loom, which would revolutionize the textile industry (Toyota-Global.com, 2013). Four years later in 1929 he sold the patent to British investors and used the profits to fund his automotive venture. Since its inception in Japan in 1937, the Toyota Motor Corporation currently has plants in 27 countries with more in construction. Toyota realizes that in the global economy they must be accommodating to other countries’ customs and values and not try to force Japanese practices on them (Maynard, 2008). In the United States alone there are plants in Kentucky, Indiana, Texas, and Mississippi as well as design centers in California and Michigan (Maynard, 2008). Toyota is following this semi-autonomous regional model in other places as well, such as Europe and China. Toyota has embraced the Global economy and marketplace and is thriving. As a result of Toyota’s worldwide operations, the labor demand will vary in different countries and regions. The effect of globalization on labor supply and demand is double edged sword. On one hand, the global presence of Toyota increased their potential labor supply exponentially. Certain job positions have no geographic restrictions on the talent pool. Conversely, the presence of regional factories increased the labor demands in the respective...
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...Running head: TOYOTA MOTOR COMPANY OPERATIONS/QUALITY RESEARCH REPORT 1 Toyota Motor Company Operations/Quality Research Report TOYOTA MOTOR COMPANY OPERATIONS/QUALITY RESEARCH REPORT 3 Table of Contents Abstract 2 Introduction-Company History 4 Company’s Orientation 5-6 Operations Management 7-9 Lean Systems 9-12 Managing Quality 12-14 Improvements in Quality 14-15 References 16 TOYOTA MOTOR COMPANY OPERATIONS/QUALITY RESEARCH REPORT 2 Abstract Toyota Motor Company is the number one car manufacturer in the world today. They were founded by Sakichi Toyoda, some three quarters of a century ago in Japan. Through the years Toyota Motor Company has seen major growth throughout their hierarchy. Toyota’s growth can be attributed to Toyota’s company orientation and that is recognizing the consumers’ demands, having the right products in place to meet these demands. Throughout the years Toyota Total Quality Management (TQM) was the strength of Toyota year after year winning quality awards. Along with quality, Toyota pioneered their own lean system called Toyota Production System (TPS) which identifies and reduces/eliminates waste and variance in processes. Managing product quality was Toyota Motor Company’s claim to gaining market share over the U.S. car manufactures’ but recently the last...
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...CASE – 1: SMART SYSTEMS AND SMART WAYS OF WORKING HELP TOYOTA BECOME NUMBER ONE Q1: Which of the strategic objectives are met with Toyota’s IS implementations? The Strategic Objectives that are met with Toyota’s IS implementations are: * To emerge into a brand known for quality and reliability. * To become skillful at combining quality with efficiency. * To deliver value to the customer at a competitive price. * To only build cars based on what and when the customers want, without additional delays or quality problems. Q2: What is the major system implemented by Toyota? The major system implemented by Toyota is A Vehicle Orders Management System based on Oracle E-Business Suite software. Its various advantages and uses are as follows: * It reduces the time between placing a customer order and delivery of the vehicle to the customer. * The dealer uses the system to configure a car with all of the selected options in front of the customer and then locates the best available car and options in the Toyota supply chain, including vehicles scheduled for production in the future. * The dealer then uses the system to place the order through national distributors, who consolidate the order with those of their other retailers and place an order through Toyota Motors Europe. * National distributors can use the system to monitor their orders and those of different dealers and even “swap” cars with various retailers. Q3: Identify the ‘management’...
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................. 2 Assembly Line ........................................................................................................................................... 3 Vertical Integration ................................................................................................................................... 4 Profit Sharing ............................................................................................................................................ 5 General Motors – The David who beat the Goliath (Ford) ........................................................................... 5 Reorganization of GM into divisions with decentralized responsibility and centralized control ............. 7 Range of products with prices made affordable by financing .................................................................. 7 Introduction of new models annually ....................................................................................................... 8 Toyota – From the ruins of WW II to the Top of Automotive Industry ........................................................ 9 Kanban and the elimination of Muda...
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...of Contents 1 Executive Summary 2 Introduction 2 Innovative Companies 3 Innovative Solutions 4 Transferring Innovations 8 Success Factors 9 Conclusion 10 Self Evaluation 10 References 12 Executive Summary In order for Chrysler to be successful in a global market, they are going to have to shed the old ways of manufacturing cars and develop newer innovative ideas to compete in today’s economy. By implementing a new business plan, a knowledge sharing system and partnering with a design firm, Chrysler can become a dominant force in the auto industry, not just domestically but globally. The initial startup costs for implementing these innovations are quite high, yet the long term payoffs such as lower manufacturing costs, higher quality products, less waste, a variety of innovative designs, better supplier relationships, increased sales, profits, market share, and greater customer retention and loyalty, all support changing to a more innovative company. Introduction The target of this project was to find and research innovative methods to apply to a current existing company. Our team chose Chrysler to apply the innovations researched to help their company domestically and globally. With Fiat recently acquiring a 35% stake in Chrysler, it is necessary for Chrysler to focus on the global market to remain competitive in this day and age. This project takes an in-depth look at TaTa Motors business model, Toyota’s knowledge sharing system and BMW’s DesignWorksUSA...
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...Contents 1.0 Introduction 2 2.0 Ford Company Background 4 3.0 Toyota Company Background 5 4.0 Scientific Management 6 5.0 Scientific Management in Ford Motor Company 7 6.0 Contingency Theory 10 7.0 Contingency Theory in Toyota 12 8.0 How Scientific Management impacts Ford’s Workers 14 9.0 How Contingency Theory Impacts Toyota’s Workers 16 10.0 Definition of Organizational Culture and Structure 18 11.0 Ford Organizational Culture 19 12.0 Ford Organizational Structure 20 13.0 Toyota Organizational Culture 21 14.0 Toyota Organizational Structure 23 15.0 Motivational Theories 24 16.0 Maslow’s Hierarchy of Needs in Ford 25 17.0 Impacts of Hierarchy of Needs Theory 29 18.0 Goal-setting Theory in Toyota 30 19.0 Impacts Goal-setting Theory 32 20.0 Conclusion 33 21.0 References 34 1.0 Introduction One of the most important human activities is managing . Ever since people began forming groups to accomplish aims they could not achieve as individuals . Managing has been essential to ensure the coordination of individuals efforts . As society has come to rely increasingly on group effort as many organized groups have been grown larger , the task of managers have been rising in importance . The term management drives from latin word “Manu agere” which means to lead by hand . Lead by hand means , giving directions . It also implies that the leading person first goes where he or she wants to send the followers (Shied, 2010) . According to Drucker (1974) management...
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...Q:1)Why has Toyota been successful? Toyota motor corporation is a very well known and one of the largest car maker in the world. The company is known for its effective and efficient approach to production management, its quality products, and outstanding labor relation. Key to success 1. Toyotas production system (TPS) aim at producing high quality car with low cost. For that they applied JIT (Just in Time manufacturing) to avoid the high inventory cost of the traditional assembly operation. The effectiveness of TPS is aided by closer relationship with suppliers and by continuous improvement, teamwork, decentralized decision making, and motivated work force . 2. They design vehicles by customer choose. Customer can order cars according to their need. Their customer service is too good for that customer are kept happy even after the car is delivered. 3. Toyotas worker are well trained in several kind of skills so that they can operate several machines. They are also trained to trace any error to its sources. 4. Toyota have a good relationship with its suppliers who deliver parts daily to the production line. 5. One of the Toyotas successful was the introduction of the luxury Lexus model . 6. Toyota has reputation for producing cars which are greener, more fuel efficient, and of good performance. Q:2)What are the strategies for gaining entrance into foreign countries? It successfully entered markets and penetrated them with both manufacturing and...
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...Ford Motor Company SWOT Analysis Strength: Ford Motor Company’s strength lays in its ability to use internal resources such as knowledge and reputation to maintain its dominancy in the automotive industry. Ford has managed to survive depressions, recessions, and internal breakdowns to become one of the biggest automaker in the world. What sets Ford apart from its competitors is the amount of knowledge it has acquired in the automotive industry for over a hundred years. In the business world, time plays an enormous role because it separates the weak from the strong. Ford is able to maintain its popularity by introducing new and innovative ways to produce and sell automobiles. Ford started with the assembly line, which revolutionized the automotive industry making it faster, cheaper and safer to manufacture vehicles. Then, it continued with the introduction of dealerships all around the United States enabling accessibility to transportation, which was soon to be the fastest growing industry in the world. Knowledge is key in any business, and Ford recognizes the strength and advantage it has over its competitors, by simply being in the business longer and learning from the past. Another major strength Ford has is its reputation. Ford is recognized for its unparalleled ability to speak to the American people. When people think about cars and America, they immediately think Ford. Why? Ford has branded itself as the father of the automobile industry, and no other company can...
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...Business Analysis Part Two Keyah A.Baker University of Phoenix Management 521 Bernard Ruff April 10,2012 Business Analysis Part Two In this paper, the author will discuss Ford Motor Company’s business environment. The author has reviewed Ford’s income statement, balance sheet, and cash flow to determine the financial health of the company. The author will conduct a benchmarking analysis of the company as well. From reviewing Ford Motor Company’s income statement, balance sheet, and cash flow, the author has learned that the company needs to increase their revenue. Their revenue concerns the author because it is a little low, as compared to other companies, GMC and Toyota. It is lower than that of the other two companies. Toyota’s operating income is low, however, and their assets and liabilities equal to the same amount. GMC’s sales and revenue was very high along with its net income. GMC’s liabilities outweigh its assets though, which poses a very big problem. They are spending more than they produce, which is a bad thing. This makes their financial health very poor in that regard. To summarize Ford’s financial health, it could be better. Their gross profit is very low, in comparison to the two other companies. Their operating income leaves much more to be desired. Their income after taxes is more than their income before taxes. Their total assets outweigh their liabilities. They have quite a bit of debt. Moving forward, Ford...
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...Business Analysis: Ford Motor Company Milan C. Kelly MGT 521 Christopher Romano August 1, 2011 Abstract In recent years several American corporations have seen record low sales and profit accumulation. Ford Motor Company is a company that has made steps toward improving sales, profit, and meeting the needs of all stakeholders. As a mutual fund manager, I will examine the SWOT Analysis, financial statements, and trends in the market to determine if Ford Motor Company is a wise investment. Recently, Ford has changed to make the company more appealing to investors. Strengths in the company include: strong engineering capability, extensive dealer network, diversified product base, and a strong market position. Ford’s focus in improving their automobile’s engineering capability is fuel efficiency and safety. The improvement of these characteristics is more appealing to consumers and allows this company to further develop the product line. With an extensive dealer network of 17,107 Ford could market and sell automobiles globally. Acquiring such a large global distribution permits Ford to meet the demands of the market as well as their consumers. The diversified product portfolio gives Ford an advantage over the competition. New and updated vehicle models such as small, mid-size, and premium sedans, pickup trucks, compact, and sports utility vehicles give consumers...
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...References Advance! Business Consulting B.V. (2009). The Rise of Toyota. Retrieved 03 29, 2016, from Advance Business Consulting: http://www.advancebusinessconsulting.com/advance!/strategic-alignment/strategic-alignment-business-cases/the-rise-of-toyota.aspx Bunkley, N. (2016). Ford won’t blindly chase market share. Automotive News, 90(6708), 0032. Edwards, J. (2012). Mastering Strategic Management ( 1st Canadian Edition ed.). Retrieved 04 01, 2016, from https://opentextbc.ca/strategicmanagement/chapter/types-of-international-strategies/ Funaru, M. (n.d.). Toyota’s business strategies in international markets. Braşov: University of Braşov. Retrieved 04 01, 2016, from http://feaa.ucv.ro/annals/v3_2010/0038v3-004.pdf Gillis, C. (2015, September 13). What’s it really like in the driver’s seat of a driverless car? Mclean’s. Retrieved from http://www.macleans.ca Henry, J. (2015, August 30). One Ford, Part Two; Tweaking The Master Plan. Forbes. Retrieved from http://www.forbes.com Hitt, M., Ireland, R. & Hoskisson, R. (2015). Strategic management : competitiveness & globalization : concepts & cases. Stamford, Conn: Cengage Learning. Negi, R. (2013, 03 27). Toyota: Analysis of Vision Statement, Corporate Level Strategies & SWOT. Retrieved 04 02, 2016, from Slideshare: http://www.slideshare.net/rohannegi/toyota-analysis-of-vision-statement-corporate-level-strategies-swot NYSE. (2016). Financials for Ford Motor Company. Retrieved March 28, 2016 from http://www.google.com/finance?q=NYSE%3AF&fstype=ii&ei=n0f5VrjeEojUigKop5rADg ...
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...Strengths, Weaknesses, Opportunities, And Threats Assessment Company Overview Ford Motor Company, (NYSE: F) originally established by Henry Ford in 1903 is a producer of cars and trucks, based in Dearborn Michigan. The Company has other diversifications worldwide, which also includes small stakes in other brands such as Aston Martin and Mazda, plus an arm for the financing of vehicles. Its Automotive Sector includes Ford North America, Ford South America, Ford Europe, Ford Asia Pacific Africa. In the U.S. Ford North America engages in the sale of Ford and Lincoln branded vehicles, designs, manufacturers, both develops and purchase of parts associated with these activities and is a seller of these parts for the repair of its vehicles. Ford Motor Credit includes a variety of vehicle related financing, leasing and insurance. With a total revenue of 136.26 billion in U.S. dollars, (1) Fortune Magazine ranks Ford as the 25th largest corporation in the world. Location Of Factor Internal Strengths Type Of Factor Favorable Unfavorable Weaknesses Strong Executive Management Did not take Government Bailout Money Production based on world platforms Stable UAW Relationship Reliance on Profits from North American Market Weak sales in Europe, South America and Asia Pacific High Debt to Equity Ratio Pension Fund Liabilities External Opportunities Threats New Products Emphasis Green Technologies Finance Group Profits Partnerships...
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...TOYOTA- The Rise of a Global Corporation Submitted By: (12010121196) Ms. N AMULYA REDDY (12010121213) Ms. NIKITA SINGHANIA (12010121276) Mr. REUBEN JOSEPH (12010121032) Mr. AMIT KUMAR JENA (12010121057) Ms. ARPITA DEB (12010121316) Ms. SAYONEE DATTA Submitted To: Dr. Ravi Raj Kumar. ACKNOWLEDGEMENT At an outset we would like to express our profound gratitude to all the people who helped us directly or indirectly in completing the project. We thank Alliance University, the institution that has been working towards its noble mission of providing quality and holistic knowledge to its students. We sincerely express our gratitude to our Dean, Dr. Ravi Raj Kumar for the benevolence he has showered on us by providing us with all necessary facilities. We are thankful to him, for his expert advice and help which has always been source of inspiration for us. Above all, we owe everything to the Almighty and well-wishers for their valuable contribution and insights. However, we have taken utmost care in preparing this project report, mistakes would have crept though. (12010121196) Ms. N AMULYA REDDY (12010121213) Ms. NIKITA SINGHANIA (12010121276) Mr. REUBEN JOSEPH (12010121032) Mr. AMIT KUMAR JENA (12010121057) Ms. ARPITA DEB (12010121316) Ms. SAYONEE DATTA 1 Topic. Case Summary Q1: Toyota's revolutionary lean production Q2: Compare and contrast the arm's length relationships Q3: Development of Toyota's revolutionary "lean production system" Q4: Toyota enter into the...
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...needs of the customers. As well as providing employees with working environments which is healthy and enables employees to perform above and beyond. To maintain competitive in the business environment, the organization must constantly look out for the opportunities to grow as well as reduce costs. The automobile industry is a competitive organization domestically and globally. By applying the combination of quality and management Toyota Motor Corporation has been voted the most admired motor vehicle company globally by Fortune magazine in 2005 and Ford Motor Company has been recognized as one of the worlds ethical companies. Both companies has been recognized in the automobile industry for their industry quality, global care, and social responsibility. Toyota Motor Corporation (TMC) is one of the global leading manufacturing companies with nearly 70 years in the market and has become the world’s third largest vehicle manufacturer with a wide range of models and high technology. Ford Motor Company have 90 plants world wide. Both automobile companies is recognized globally for their automotive production. Globalization promotes the most efficient and cost-effective use of resources. TCM has opened Global Production Centers (GPC) in the United States, United Kingdom, and Thailand in order to The basic principles for the Quality Management philosophy of doing business are to satisfy the customer, satisfy the supplier, and continuously improve the business processes....
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