Business Model of a Company

Running head: STRATEGIC MANAGEMENT
Strategic Management
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STRATEGIC MANAGEMENT
1
The sustainability of an organisation depends on the nature of activities that are
carried out by an organisation. Hence, the sustainability of the company depends on the
business model of the company. The nature of the business model to be adopted by
companies determine the effectiveness of the companies in terms of gaining favourable
nature of outcomes (Lorenzo, Christopher and Afuah 2017). Toyota Motors has been
recognized as a company that has been successful in the global automotive sectors as a result
of the approaches to management that the company has been able to adopt. The aim of the
paper is to critically analyse the business model of Toyota Motors.
Toyota Motors is a company that needs no second introduction. The company has
been recognised as a fortune 500 company (Wendy and Victor 2019). The company that has
its headquarters in Japan follows a business model that is knowns as the Toyota Production
System. Some of the key aspects of the Toyota Production System are Kaizen, Lean
Manufacturing and Agile Operations (Andrew 2019). Kaizen refers to continuous
improvement that helps companies in thriving for the absolute best (Andrew 2019). It is a
process that helps in ensuring that the company is able to improve with time and in
accordance with the motives associated with sustainability in both the short and the long run.
Kaizen or continuous improvement is an aspect that is bolstered with the help of innovation
(Andrew 2019). Thus, it can be interpreted that there is a high involvement of innovation in
the business model of Toyota Motors.
Lean and Agile Manufacturing are issues that are highlighted by Toyota in the TPS or
Toyota Production System. Lean manufacturing is a production process that is helps in
ensuring that there is minimisation in terms of generation of wastage (Andrew 2019). The
functions of both the operations and logistics division of the company are characterised by a
high degree of involvement of affiliation towards lean manufacturing. Just as Lean
manufacturing, Agile operations are aimed at the reduction of wastage from operational