Introducing Company-wide Operations Improvement Strategies

INTRODUCTION TO
BUSINESS
OPERATIONS AND
SERVICES

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Introducing Company-wide Operations Improvement Strategies...............................................3
Operational Strategies That GM and Ford can Implement Towards Gaining Toyota’s Market
Share............................................................................................................................................8
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
All the business functions and processes that occur within a business organisation and
contribute towards its smooth and effective operations which also allow for the business
organisation to earn money and financial profits within the operational industries constitute as
business operations. The business operations vary accordingly from one business organisation to
another but generally have come to include the common operational processes, location, staffing
and technology used by the business organisation to operate successfully within the operational
industries (Hazen and et.al., 2018). This report analyses the business operations and services of
Toyota, which is a Japanese international automobile manufacturing business organisation that
was founded in 1937, 82 years ago and currently operates from its headquarters in Toyota city,
Japan. As of late 2019, Toyota has been able to become the world’s tenth largest business
organisation on the basis of total revenues generated by the automobile business organisation.
Toyota is also the world’s first automobile manufacturing business organisation to
manufacture more than 10 million automobile vehicles in a single fiscal year. In order to
effectively conducts its varied operations, Toyota employs around 364,445 employees at various
organisational positions within its hierarchical organisational structure.
MAIN BODY
Introducing Company-wide Operations Improvement Strategies
There are several ways through which Toyota can effectively introduce and implement
organisation wide operations improvement strategies with the intention to enhance their
operational performance and efficiency, while also improving their financial performance within
the global automotive industry. In order to effectively be able to improve upon the business
operations of Toyota its operational strategies are recommended to place focus on the following
operational attributes through which Toyota can make effective use of their organisational
resources, minimise wastage and improve their operational performance:
Just in Time:

Just in Time relates to an innovative and effective inventory system that can be used by
Toyota with the intention to effectively manage their stored manufactured automobile vehicles in
warehouses and inventories. Through Just in time strategy, Toyota would be able to effectively
keep track of their orders of raw materials and align them to the need form its manufacturing
department, allowing for the automobile manufacturing business organisation to operate with
maximum efficiency. Through the Just in Time strategy, Toyota can effectively mitigate and
decrease the operational wastages that are part of their manufacturing process, as all the raw
materials that are required for its manufacturing operations are procured based on the needs and
requirements of its manufacturing department (Choi, Chan and Yue, 2016). Just in time is a
minimalist operational strategy and enhances the operational efficiency of Toyota as through this
approach, Toyota does not buy or procure any excess amounts of raw materials from its suppliers
and only receives raw materials that its production operations need and require. Using Just in
Time strategy requires Toyota to effectively forecast and predict how much raw materials their
manufacturing operations require and demand from their suppliers and is a viable strategy for
Toyota to make use of with regards to mitigating their operational losses in the short term.
Effective use of their organisational resources and raw materials allows for Toyota to decrease
their operational and manufacturing costs, allowing for the automobile manufacturing business
organisation to effectively decrease the costs of their final automobile vehicles or increase their
overall financial profitability within the automotive industries of the world. Use of the Just in
Time strategy also allows for Toyota to gain a sustained competitive advantage against their
industry competitors such as Ford and GM and allows for Toyota to increase its overall market
share, operational and financial productivity in an effective and efficient manner.
Supply Chain:
Toyota can also introduce and implement operational strategies that make use of supply
chain management in order to effectively improve the performance and efficiency of its business
operations and functions. Supply chain management strategy can allow for Toyota to manage the
flow of their manufactured goods and services to the consumers in a positive and effective
manner. This strategy includes transformation or conversion of the raw materials procured by
Toyota from their suppliers into manufactured automobile vehicles that can be sold to the
consumers within automotive industries to effectively satisfy their needs and demands. Effective