Operations Management : Toyota Motor Corpoartion

OPERATION
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Contrast Primary consumer benefits package........................................................................4
Comparison between customer benefits package of Toyota Financial Services & Toyota
Motor company. ....................................................................................................................5
Contrast and compare value chain design and structure of Toyota motor corporation and
Toyota financial services business.........................................................................................6
Disadvantage and advantage of each value chain design.......................................................8
Organizations operations strategies define in different ways ................................................9
Recommendations for Toyota financial services and Toyota motor corporation...............12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Operations management (OM) is administration of the business activities or practices, it
help to create highest level of efficiency possible within company (Nakamura and et.al, 2015).
OM is concerned with organizing, controlling, planning and directing all the functions and
activities of firm which helps in converting human efforts and raw materials into valuable
services and products for satisfying consumer needs. Operations management is very essential in
organization, as it help to supervising procedures and make necessary improvements and
development for higher profitability. The present report is based on Toyota motor corporation
and Toyota financial services business, it is a Japanese international automotive company
(Antosh and et. al., 2019). This report contrast and compare the primary consumers benefits
packages from each branches and explain both management's and consumer view points related
to them. This study contrast and compare structure and value chain design of organization.
Disadvantage and advantages of each value chain design and justifies operations strategies which
define in different ways. Furthermore, it define each branches strategic vision, competitive
priorities and strategy and suggestions for betterment.
MAIN BODY
Company overview-
Toyota motor corporation-
It is Japanese multinational automotive firm, founded in 28 August 1937 and founded by
Kichiro Toyoda. Organization is one of the largest automotive manufacturer and world's first
auto mobile industry, they produced more than 10 million vehicles each year. In Japan it is
largest listed firm based on market capitalization and revenue. Company is world's market
leader in sales of hybrid electric vehicles and considered as one of the biggest firms to encourage
mass market acceptance of hybrid vehicles around the world. Moreover, Toyota is also known as
market leader in hydrogen fuel cell vehicles. Lexus hybrid passenger car models and cumulative
global sales of Toyota achieved 10 million milestone in 2017, January (Overview of the Toyota,
2018). They build its headquarter in Aichi and its main headquarter is located in the four story
building in Toyota. Company office is located in Nagoya in Nakamura- Ku and Bunkyo in
Tokyo, in addition to manufacturing auto mobiles, they provide financial services to its

customers through their Toyota financial services division. Toyota car company provide tangible
products to its customers effectively within different market segments.
Toyota financial services business-
It covers more than 30 regions and countries including Japan, financial services functions
and operations is coordinate by entirely owned subsidiary of Toyota motor Corporation and
TFSC which is overall accountable for providing financial facilities subsidiaries internationally.
Their first operation commenced in Sydney, Australia and after year by year they spread their
business in all over the world. Norway, UK, France, South Africa, New Zealand, Indonesia,
Brazil, Mexico, Argentina, Canada are the list of nations and states where Toyota financial
services business offer facilities effectively and efficiently. It provide consumers financial
services that include credit cards, auto sales financing and retail sales of investment trusts,
corporate bonds and insurance (Asri, Nawi and Nadarajan, 2016). Business has constructed the
global network that covers approximately 90 per cent of markets in which company sell their
vehicles. Mainly concentrated on leases, auto loans and Toyota dealer floor plan needed, Toyota
financial services offer auto sales financing to approximately 5.4 Million consumers. TFS via
their U.S subsidiary Toyota Motor Credit company onws TFS banks, the ILC chartered bank in
NV. Toyota financial services business provide intangible services to its consumers within
marketplace.
Contrast Primary consumer benefits package
Consumer benefit package of Toyota Financial Services- CBP (Clients benefits
package) includes the clearly defined set of intangible and tangible services that people
recognizes, use or purchase. Toyota Financial Services provide intangible services to its
customer which is quite beneficial and helpful for them in order to start up new business and do
some other things. Such as Toyota financial services provides to more than 30 countries
including Japan. The company provides some additional services to their customers along with
the tangible products like insurance, warranty, guarantee. Also, TDS provides a global network
that covers approximately 90% of the markets in which Toyota sells its vehicles ( De Sanctis,
Ciarapica and Ordieres-Meré, 2016).
Customer benefits packages of Toyota Motor company- Company provide range of
services and high quality products to their customers in order to sustained the quality issues and
defined the best opportunities for quality growth. Along with that, Toyota fulfill its customer

choices in motor cars and deliver the high standard cars to their customers. In order to
maintained the customer satisfaction company also initiate in taking participation in social
contribution activities, respect for human rights, collaboration with business partners etc.
Comparison between customer benefits package of Toyota Financial Services & Toyota Motor
company.
Base of
comparison
Toyota Financial Services Toyota Motor company
Customer
benefits
package
Toyota Financial Services make
insurance and banking rewarding and
simple, they offer services on the cars
and their motor vehicles. As compare to
Toyota Motor company, TFS offer
financial services to its consumers which
make them able to purchase or buy
products necessary in their life. They
provide online banking flexibility to
people in which they can transfers money
via using phone or TFS bank app easily.
Company offer mobile banking, online
banking, in store services and telephone
banking facilities to consumer (Iyoda and
et. al., 2016). As compare to Marks &
Spencer, bank make clients able to
purchase specific products and start their
own business. For example, TFS bank
give people an opportunity to collect club
card points while using their cards in
stores. Moreover, within three months,
club card points of consumer get turned
into club card vouchers which is highly
On the other side, Toyota Motor
company consumer base package
is quite different from TFS. They
provide financial services and
Toyota motors offer branded cars,
motor vehicles. As compare to
TFS, Toyota Motor company
provide discount offer to its clients
on each and every purchase of their
products which make them happy
and satisfied. In order to facilitate
consumers when they wants to buy
several products, company start up
their own department stores in
which they organized all products
related to life style of peoples.
They re-established people style
authority by focusing on the
demand of the car lovers and how
they more attract towards the cars
facilities. In customer benefits
package of Toyota Motor company
offer discounts to its consumer

beneficial for buyers. which help to retain them for
longer and help to increase profit
margin rather than before, as
compare to TFS they can be able to
retain people and provide range of
services which is beneficial for
them.
Contrast and compare value chain design and structure of Toyota motor corporation and Toyota
financial services business
Contrast the structure and value chain design-
Toyota motor corporation-
Value chain design is the concept of value chain as made of both support activities and
primary activities (Kammel, 2016). It is the set of actions that company operating in particular
sector performs in order to deliver great and most valuable goods and services for market.
Toyota is the global brand of vehicles known for their supply chain and its excellent
production capabilities. Japan based brand is known for having build the superior or excellent
stages of trust among their consumers, organization managed their value chain effectively. Its
value chain design includes whole stages from product conception to after sales facilities.
Several things is quite outstanding about value chain of Toyota Motors., there are two types of
activities in value chain design which is support and primary activities.
Primary activities-
Inbound logistics- Company has managed the large supply chain and receives parts from
thousands of providers situated from around the world. It has managed and handled their
inbound logistics effectively and efficiently.
Outbound logistics- Toyota has logistics and parts centres in different countries across
globe, they ships thousands of orders and parts each day from their distribution centres and
network of warehouses (Krishna and Nair, Learn, 2017).
Operations- Company is the global brand along with their operations spread through
world, they serves people across globe through global and large distribution network. Apart from

their different R&D and manufacturing sites, organization has several parts distribution centres
the various locations across the globe.
Marketing & Sales- Firm is facing stiff competition from other vehicle brands due to
high level of competition in industry. To retain their consumer base and market share,
organization makes major investments in promotions and marketing activities.
Support activities-
Technology- Toyota is known for their exceptional technology and engineering world
wide, apart from outstanding production technology, company has increase their investment in
technological innovation for business growth.
Infrastructure- Organization maintained the large infrastructure internationally, from
their headquarter in Japan to South and North Americas as well as Europe and Asia, Toyota
motor corporation has maintained the extensive presence through out globe.
Human resource management- Company had 364.5 K workers, they believes in human
centric approach to value creation. Thus, there fore brand focuses on development of their human
resources (Lohse-Busch, Stutenberg, Duoba and Iliev, 2018).
Procurement- Firm procures raw materials from thousands of providers across the
world, they formulated the particular Toyota way of buying that lays down principles and
policies that procurement employees must follow.
Toyota car company's organizational structure is based on different business operations
of firm around the world. As known as one of the leading auto mobile manufactures in world,
Toyota has divisional organizational structure which is quite different from its Toyota
financial services business. In 2013, this structure underwent significant changes, it was seen as
the response to safety problems and corresponding goods.
Toyota Financial service business value chain and structure-
There are two different types of activities included in value chain design of Toyota
financial services. They provide loan services, credit cards and other facilities to its consumers
effectively which help to grab the attention of people. Business make investment in
advertisements and promotional activities which is quite beneficial for business growth. They
provide trader credit through loans to bigger VC actors. TFS maintained flat organizational
structure that is easy to maintained and restructured easily if its required. With the help of
providing this services company support their consumers motoring needs and daily life.

Comparison between both businesses structure and value chain design as per view of
consumers and management-
As per view of customers Toyota financial services value chain design is quite simple and
easy to manage, according to people simple value chain provide quality services. But as compare
to the viewpoints of management, TFS need more improvement which is essential for business
growth and success (Merrefield, 2018). As view points of management, this business added
some different features in its value chain which attract people more towards them and help to
increase their productivity. According to consumers, flat organizational structure provide
benefits to people in order to get services on time. But on the other side, management of
company think that flat organizational structure impact on business financial performance and
operations management. As compare to Toyota Motor Corporation, TFS structure and value
chain is smaller in size.
Toyota company organizational structure is different From TFS as they has hierarchal
organizational structure which is larger than its other subsidiaries business. As per view of
consumer company provide the best and great quality products while large level of management
which is difficult to organized. But on the the other hand, management of company think that
Hierarchical organizational structure is not easy to manage and with this type of structure firm
faced many issues that impact upon business. Flat company refers to the organizational structure
with few levels of management between staff level workers and management (Secomandi,
2017).
Disadvantage and advantage of each value chain design
TFS-
Advantage-
In value chain design of Toyota financial services, marketing is the primary activities
which is essential for business. Company value chain is quite simple and designed with few
levels which makes operations easy to managed, it is the key source of competitive benefits. It
help to define business progress and operations clearly.
Disadvantage-
Less level in TFS business value chain define some disadvantage which is not
appropriate for business success and growth. The format of company value chain laid out in
competitive benefits, it is heavily oriented to the manufacturing business.

Toyota motor Corporation-
Advantage-
Company has huge value chain which define its strengths and abilities for performing
well. Its value chain provide deeper and better understating of weaknesses and strength of
company. It help to understand company issues included with promise of creating consumer
value promises and commitments because it centring attention on activities required to deliver
value proposition.
Disadvantage-
It is difficult to manage large value chain design, it required a lot of investment and
management need to focus on each and every activities within value chain design.
Organizations operations strategies define in different ways
Toyota financial services business operations strategies-
Operations strategies refers to techniques or methods organizations use to reach at their
objectives. With the help of developing operational strategies, the firms can implement and
examine efficient and effective systems for using personnel, resources and work procedures
(Stewart, 2018). Operations strategies comprises 6 elements like positioning production system,
which includes selecting goods design, inventory policy and production system for finished
products for each goods line.
Providing credit cards, hiring new applicants, managing retail sales, assisting consumers
and sales financing are the different types of operations within TFS which has been managed by
applying several strategies in different ways. Financial services business of Toyota seek to offer
the specific set of facilities to its consumers. Company strategic vision is to be the best financial
service provider for customers who shop at Toyota. Trust, ease and value these things that people
wants and so these are hallmarks of all goods they offer. In order to gain business objectives and
generate revenue as compare to other financial service providers in UK, they apply various
strategies which is quite beneficial for them as well as entire business. Competitive priorities is
defined as dimensions that company production system must posses to help demands of market
in which organization wishes to compete. It includes delivery reliability, innovation, product
quality and process flexibility. TFS competitive priorities is to provide better financial facilities
and credit cards services to customers which help to retain them for long time.

Competitive priorities: Sales of Toyota Motor is considered competitive or effective
because of its unique brand campaign, “Ideas for Good,” a new initiative centred on what the
organisation has been doing for different years-repurposing its new automotive technology. As it
will be beneficial for society in the non-automotive space. Along with this, The campaign
develops upon Toyota’s DNA of reliability, durability and quality, as well as its loyalty to
innovation, by inviting customers to communicate their own ideas to enhance quality of life
beyond the automotive world (Toma and Naruo, 2017). As it will support in improvement of
Toyota's brand image.
In order to run each operations effectively TFS implement new strategies like technology
implementation which make people able to apply for loan easily and faster. they need to invest
heavily in digital banking technology in which people use mobile, digital or web platform to use
financial services (Tsukamoto and et. al., 2017). Online money transactions with the help of
credit cards is one of the operations strategies of TFS that help to gain competitive advantages
and enhance consumer experience the most. Due to complexities for applying credit cards,
people face many issues that impact on financial service sector. In order to solve this issues,
Toyota financial services business offer great opportunity to people in which they get credit card
within short time period. Online transactions via credit cards is also known as the PIN debit
transactions, it is the password protected payment way that authorizes transfer of money over an
electronic funds transfer. It allows people to conduct financial transactions via internet and also
known as web banking or internet banking. It offers consumers almost every facilities
traditionally available through the local branch including transfers, deposits and online bill
payments. Cloud computing is an another technology implementation, it help TFS to save data
related to auto sales financing effectively. Cloud computing facilities enable easy use of
information, a large amount of details in business is feasible to use. This type of technology
helps company and financial services to organize and manage different demands in business.
Cloud computing is the kind of computing that depends on shared computing resources more
than having personal devices or local services to handle applications. It is the hybrid technology
of computing different services like software, storage, servers, databases, networking, analytics
and other over internet.
Online and offline hiring is one of the best operations strategy of Toyota financial
services business which make them able to hire the most talented people within firm. Human

resource management is one of the essential and required operation in company which help to
achieve business objectives and accomplish task on time. In order to achieve goals and
objectives of business, HRM department use online hiring as well as offline hiring methods
which is quite beneficial for business. Online recruitment refers to using organization websites,
job listings, social media and online advertisements on internet to hire and find suitable workers
for tesco bank (Ueno and Scarbrough, 2016). They hire people in order to fill job positions
within organizational structure. Human resource management is responsible for hiring new
applicants and recruit skilled and knowledgable candidates who help to manage and organize
each and every functions effectively. On the other hand offline recruitment is also considered as
operations strategies of TESCO bank which help to provide many benefits.
Toyota motor corporation operations strategies-
Human resource management, marketing operations, sales management and other types
of operations has been managed by M&S. In order to run all the operations effectively they
create operations strategies which is quite good for overall business. Marketing strategies for
company has been applied for generating awareness among people and its target market. It
contains firm value proposition, information on target consumers, key marketing messages and
other high stage elements. Toyota motor corporation marketing strategy informs company
marketing plan which is the document that relies on timing and type of marketing activities.
Internet marketing as well as word of mouth marketing is use by organization define as
marketing operation strategy which is highly effective and beneficial for them (Zia, 2016).
Before selecting appropriate marketing strategy firm consider few points which is essential, they
define target population as necessary step in selecting its marketing strategy. It provide
appropriate demographics which support in collecting most suitable marketing plan for business.
After that company create the hypothetical procedure of buying to test its target audience, once
they know purchasing behaviour of target consumers, they can choose more appropriate
marketing plans or strategy (Leekha Chhabra and Sharma, 2014). After following all the points
systemically, Toyota company chose internet marketing and word of mouth marketing for
business as marketing strategies.
Operations strategies- The success and growth of Toyota motor makes it the international
organisation of the globe even their challengers were losing out although it is the matter which is
require to be seen very important in order to accomplish that recognition and respect. After lots

of studies it is being best-known to others as well as throughout the globe about the Toyota way
of production. Therefore, the success and development of Toyota is principally due to shadowing
and some certain possessions (Antosh and et. al., 2019).
Sales management is considered as one of the most significant operations within
organization, it the procedure of developing sales force, implementing sales techniques and
coordinating sales operations that permit business to systematically hit and even surpass, their
sales targets. In order to generate revenue as compare to TFS and other firms, company create
sales management strategy which is one of the simplest and easiest ways to maximize
profitability and revenue. Staring with small niche markets is the best sales operations strategy
which help increase profit margin of business and also contribute to increase productivity.
Recommendations for Toyota financial services and Toyota motor corporation
In order to managed their financial services effectively, TFS must use cloud computing
system which is highly beneficial for business and make them able to monitor each and every
function of firm effectively.
Thus, Toyota company recommended for using internet marketing strategy which is
appropriate and suitable for its business and help to build strong image in marketplace (Kammel,
2016).
CONCLUSION
From above, it has been concluded that Toyota financial services and Toyota car
company provide different kinds of customers benefits package to its consumers which help to
retain people with both of them for longer time period. According to clients and management
viewpoints, Toyota organization value chain design as well as Toyota financial services value
chain design is quite different from each other. Both branches structure is based on
organizational operations and functions that they managed effectively. Furthermore, TFS use
different types of operations strategies which is beneficial for their business, on the other side
Toyota car firm also create several strategies for running its overall operations effectively and
efficiently.

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