Organizational strategy Essay
The corporation has an organizational strategy of on – time delivery that works efficiently in making sure that waste is kept to the possible minimum levels if not done away with completely. This kind of delivery is facilitated by a well coordinated approach to the corporation’s manufacturing requirements by corporate strategy and the operations management teams. Each team plays its part effectively to ensure that anything that the manufacturing department needs is delivered on time (Kazmi, 2008, p. 89).
The workers in the manufacturing plant are supplied with the materials that they require at the right time and as such no plant sits idle leading to increased production which is timely at the same time. The corporate strategy department makes sure that it organizes for the materials that are needed in the production plant are sourced and delivered just at the right time. The operations management on the other part does the necessary efforts to facilitate timely production of goods for the market so as to maintain customer trust.
There is a well equipped logistics team in the corporation’s corporate department which coordinates all the activities and makes sure that everything goes according to plan. All the raw materials are brought in
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This is the organizational strategy that has enabled Toyota Corporation to become the world’s leading motor vehicle manufacturer. 4. Critical evaluation of the areas of operations management which need improvement. Despite the fact that Toyota Corporation is the global motor vehicle manufacturing giant, there are some failures which can be traced to an oversight or lack of some crucial policies in the operational management department. One such area that needs innovation is the manufacturing plant.
The corporation needs to make changes to the manufacturing plant so that it can meet the challenges of the ever increasing rate of change in technology. It is clear that for the corporation to withstand the emerging competition for state-of-the-art technology that is currently in use in the motor vehicle industry, they must come up with a new strategy aimed at producing a lot more sophisticated cars that meet the market demand (Slack, 2004, pp. 12-43).
The managers in the corporate strategy department should commission its aesthetics team to come up with new and more appealing designs that can compete with the new models being produced by upcoming companies such as Chrysler and Nissan which have for some time now been slicing Toyotas market share. A reduction in Toyota’s sales has led to a decline in the corporation’s shareholder value ( Walters, 1999, pp. 125-142).
Considering the recent string or recalls of Toyota cars due to defects in manufacturing, a change of strategy in planning and production is urgently needed. The specific areas that nave been identified need a closer look as failure in the manufacturing of these vehicles has given an undue advantage to other manufacturers to sale their cars more than Toyota. The corporation has to invest more in technology so as to meet the ever changing standards to avoid more recalls which may be detrimental in the long run (Coopers, Lybrand & Strategic Risk Management, 2000, pp. 53-94).
This may affect the corporation in reduction of the total sales due to lack of customer confidence if the faulty areas are not corrected with speed and further defects prevented. The only way in which they can affect this is by equipping the operation department with the right apparatus so as to be able to detect anything that can lead to defects in the cars that they produce for example the steering wheel, brake peddles, and speed recorders which have seen fleets of some models recalled in recent years.