Risk Management and Operations Improvement Strategies for Toyota

UGB165 INTRODUCTION TO
BUSINESS OPERATIONS AND
SERVICES

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1. Advise Toyota on why and how they should implement risk management strategy that can
minimize or withstand such shock when it occurs again.......................................................1
2 Explain how you would introduce a companywide operations improvement strategy.......2
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business operations are considered as the practices which ventures involve into regular basis
to enhance their values as well as gain profitability. Moreover, activities may be optimised for
producing appropriate income for covering expenditures and obtain profitability for company. It
also evolves as business develops as well as the administrations have to accommodate
modifications for preventing glitches occurs into system. While business services is undertaken
as the general aspects which explains task which supports ventures but do not generate tangible
goods (Babar and et. al., 2019). Presently, information technology is essential business service
which supports various other industry or business like automobile, shipping, and so on. as per the
case study the company which are chosen for accomplishing this report is Toyota motor is
known to be one of the Japanese multinational automotive producer. Its headquarters is in
Toyota city, Aichi, Japan. The topics which are going t be discussed in this report are suggestion
related to implementation of risk management strategy as well as operation improvement
strategy.
MAIN BODY
1. Advise Toyota on why and how they should implement risk management strategy that can
minimize or withstand such shock when it occurs again.
Risk management strategy facilitates a structured as well as coherent approach for
determining, evaluating and managing risk. Moreover, this develops into procedures for
continuous updating and reviewing evaluation depends upon new development or actions taken.
In addition to this, it may be formed and executed through even small project or develop within
difficult strategy for multi site global firm. Additionally, the procedures of determining as well as
reviewing risks which firm goes through is called risk assessment (Beynon-Davies, 2019).
Through evaluating risks they become competent actively aware of where uncertain environment
results or events exists as well as determining steps which may be undertaken for protecting
business, individuals and assets concerned. Furthermore, risk management is vital into firm like
Toyota as without this, business cannot possibly explain their intent for future. The overall goal
of risk management is to assures that entity only undertakes risks which would aids this attain
their fundamental goals while keeping whole other risks into control.
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2 Explain how you would introduce a companywide operations improvement strategy.
Operation management is considered as the much vital part of business growth as well as
this is related with effectiveness and conversion of raw material into finished products. It assists
in enhancing profitability of firm. Moreover, it is primary needs for regular potential
development for business which is struggling with operative problems due to external or internal
business influencing factors or with challenges of modifying business surroundings (Essila,
2019). Additionally, operational improvement allows them to bring operational effectiveness
level which drives towards business development as well as high profit. So, for introducing
companywide development strategies, Toyota may utilise following tactics for developing its
growth:
Just In time: This is undertaken as the inventory system which aids management of
organisational growth. Moreover, it aligns raw material orders from suppliers as well as the
manufacturing. In addition to this, this enhances production efficiency as well as aids
manufacturing to be into time. Also, it aids in minimising waste into manufacturing as well as
receives products based upon the requirements of production. They do not undertake excess of
goods in order as well as it is a minimalist’s strategy for enhancing wastes. Additionally, the
some products assist to minimise cost of inventory. It needs manufacturer to essentially
anticipate on accomplishing the demand in accurate manner. This contrast with Just in case
strategies. Into this case, manufacturer hold effective inventories for absorbing enough amount of
market demand.
Therefore, respective strategy assists Toyota firm may mitigate losses into shorter time
duration. In fact, Just in time is called as Toyota production system as it was initially adapted
through them into year 1970. Also, this is proved that it utilise particular system for avoiding
overcapacity of task in progress as well as to develop steady manufacturing along with higher
quality workmanship. The system also incorporates lower machine breakdown as well as
facilitates relevant suppliers. Respective firm would obtain advantageous as it minimises cost of
production and lesser money is spent upon raw material. Hence, they may obtain chance for
revamping their quality and maximises margins of profitability margins.
Supply chain:
Supply chain is considered as the operation improvement strategy which aids the flow of
products as well as services into optimistic way. Moreover, procedures incorporates raw material
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