Undeniably, Toyota Motor Corporation is among the leading global auto manufactures. It is mainly engaged in the sale and manufacturing of motor vehicles. Additionally, Toyota Motor Company also engages itself in other businesses such as sales financing. The company in the last two decades has experienced tremendous growth in global sales. The main issue facing Toyota Motor Company today is the global design on distribution and production network. As a matter of fact, Toyota serves 170 countries or more in the world, but they are determined to open factories in every major market. Some of its major markets in the world include Asia, Europe, Japan, as well as North America (Datamonitor 2011).
In order to maximize its production capacity, gain competitive advantage, and have efficient supply chain, Toyota Motor Corporation has various options to undertake. The Company can design plants for local consumption or establish fewer part-plants globally supplying multiple assembly parts. Arguably, it is efficient and economical for Toyota Corporation to develop fewer part plants globally (Franz & Liker 2011). Due to global completion and continuous demand of Toyota Motor corporation products, developing fewer plants globally to supply multiple assembly parts will help in expanding companies capacity in the global region, as well as reducing costs. Additionally, this will enhance fast supply chain, and perfect distribution systems. The general move to redesign its production strategy will help the company achieve its competitive advantage, so as to remain the top supplier and manufacture of motor vehicles (Kurtz & Boone 2011).
The Toyota Motor company is facing the issues of quality in their global production. Before the crisis, Toyota Motor Corporation had established it name based on quality. In fact, it was the leading auto manufacturer of quality products. Currently, the largest motor vehicle producer in crisis on issues of quality as it recalls most of its vehicles. Therefore, the root cause of the current quality issues that Toyota Company is facing is the fact that the company tried to grow rapidly, as high rate of unsustainable. Furthermore, the company had unexpected and rapid acceleration, whereby its models could not engineer well with the plan (Datamonitor 2011).
In this case, the company had to forego its main objective of producing quality, at the expense of growth. Research shows that Toyota Company took a move to produce 15% of 2015 global market demand, forcing the company to compromise quality. As a matter of fact, the company took a lot of risk in its operations and product development, which lead to quality crisis. The impacts of the quality crisis were devastating to the company, in that they had to recall approximately nine million cars in the entire world (Franz & Liker 2011). Additionally, the quality crisis in the company poses marketing, legal, operational, political strategic, as well as ethical challenges to the Corporation. Actually, the problem has been a defining moment for the company to improve its seriousness in operations and working towards customers satisfaction through quality production.
In order to keep been the number one manufacturer and supplier of vehicles, the President Toyoda need to adhere to various strategies. These strategies and policies will bring back the company's credibility in quality production. The company need to act swiftly, in the best ways to solve the quality crisis. In the competitive world, other competing companies might use the crisis as an advantage to overtake them (Kurtz & Boone 2011). Therefore, building customers trust and producing quality will make them maintain its dominance in the vehicle manufacturing industry. In addition, The President Toyoda should focus on winning customers trust once more, rather than focused in on profitability. Moreover, Toyota Company needs to be more flexible; this is achieved by stropping production and identifying the root cause of the current problem. Toyota is a very strong company, and it is believed that it will regain from the current crisis; hence, producing quality vehicles and satisfying all the client’s needs in the right place, and time.
Reference List
Datamonitor. 2011. Toyota Motor Corporation. Retrieved from,
http://web.ebscohost.com/ehost/pdfviewer/pdfviewer?sid=824be38b-56cc-42f9-bb45-
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Franz, J & Liker, J. 2011. The Toyota Way to Continuous Improvement. Linking Strategy and
Operational Excellence to Achieve Superior Performance. London: McGraw-Hill
Kurtz, D & Boone, L. 2011. Contemporary Business. New York: John Wiley & Sins
