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(PDF) Improving Business Performance

Added on - 08 Dec 2020

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IMPROVING BUSINESSPERFORMANCE
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1TASK...............................................................................................................................................1Current performance and operational areas that require change in firm.....................................1Identified changes that should be implemented in Toyota..........................................................3Review of one identified change.................................................................................................4Evaluating proposed changes and applying radical change and continuous improvement withits advantages and disadvantages.................................................................................................4CONCLUSION................................................................................................................................8REFERENCES................................................................................................................................9
INTRODUCTIONIn the modern competitive era, it has become essential for companies to identify changerequirements and make necessary modifications in operations in order to improve overallperformance of business. Change management supports in maintaining day to day operations andin reducing risk of organization (Toth and Vigo, 2014). Present study is based on Toyota MotorCorporation which is a multinational automotive firm that provides high quality automobileproducts to consumers across the world. It has become the leading firm in selling hybrid electricvehicles. Current assignment will evaluate the current performance of firm and describe threeoperational areas that require changes. Furthermore, it will explain the importance of thesechanges in business. In addition, report will discuss the radical change and continuousimprovement methods for managing alterations in organization.TASKCurrent performance and operational areas that require change in firmToyota Motor Corporation is the leading automotive firm that manufactures automobileparts, commercial and industrial vehicles. The main agenda of entity is to raise its profitabilityand expand its business across world. There are many automobile firms that are giving toughcompetition to entity such as BMW, Volkswagen, etc. (Robinson, 2017). Toyota implementseffective operational management strategies that help organization in conducting its operationseffectually. But over a period of time, firm has faced many operational issues and its manyproducts are being recalled. This has spoiled the brand image of enterprise and affected itsprofitability as well. Company always take support of advanced technologies that help inmanaging the quality and controlling cost. Entity also invests a huge amount in research anddevelopment in order raise quality of its products and services. In the year 2010, Toyota hasfaced huge losses because in most of the vehicles of company, acceleration problems werehighlighted (Fredendall and Hill, 2016). There are various areas that require change in order toimprove the operational performance of entity. These are explained as below:Maintaining inventory levelToyota Motor Corporation is the multinational firm but it is recently unable to maintainits inventory well. It is responsibility of business that to meet with consumer demand but due toineffective management of inventory it is unable to manage stock well. This increases cost of1
business and sometimes create issue of mistakes as well (Fernie and Sparks, 2014). A business isneeded to maintain its raw material and control over manufacturing process. Recently order leadtime and usage rate of material is very high in organisation due to which its profit is gettingdeclining. This is the major area that requires changes because by improving inventorymanagement entity will be able to control over inventory which may help in raising its profit togreat extent (Dubey, Gunasekaran and Ali, 2015).Maximizing production and enhancing product’s qualityIn past few years many of Toyota vehicles are being recalled this has created negativeimage in the mind of consumers (Toyota Recall Highlights Deep Organizational Failures, 2010).By this way now people are moving towards other brands. This has negatively impact onprofitability of business unit. In order to gain competitive advantage it is very important forToyota that to make changes in its production style. It has to work on raising its productioncapabilities and have to raise quality of its cars. Recently Toyota’s production is not good,wastage and scrap are causing difficulty for business unit, Consumers always prefer to buy highquality cars, and they are ready to pay high amount for getting such standard products (Zheng,Wang and Liu, 2015). But if Toyota is unable to meet with their expectation then it might createdifficulty for business and in such condition overall sales of firm can get reduced. Toyota isimplementing traditional quality management tools and these techniques are unable tomanufacture high quality cars. That is why profit of company is getting down. SometimesToyota gets failed to deliver cars on time. Due to slow manufacturing process entity is unable tomeet with expectation of target audience. Thus, it is require making changes in its productionprocess and have to raise quality of its goods and services (Richards, 2017).Changes in supply chain managementCompany has opened its manufacturing plants in many countries. It has many suppliersacross the world. Supply chain management strategies of company are not good. Though Toyotatries to minimize bullwhip effect in its supply chain but due to weak supply chain managementstrategies entity is unable to improve its production capabilities (Toyota Recall Highlights DeepOrganizational Failures, 2010). This is major challenge for the company and it is increasing costof operation in business unit.2
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