Improving Toyota's Market Share: Operational Strategies and Analysis

This report provides a comprehensive analysis of Toyota's operational strategies, focusing on company-wide improvement initiatives. It examines the Strategy Hierarchy, including corporate, business unit, and functional levels, and explores the application of Top-Down and Bottom-Up approaches to operational risk management. The report emphasizes the importance of quality improvement and the implementation of Six Sigma methodologies to enhance product quality and increase market share. Furthermore, it offers insights into how Ford and GM can adopt operational strategies to gain market share. The report includes discussions on various quality management tools and techniques that Toyota can leverage to improve its performance in the US market and regain its competitive advantage. The report is a contribution to Desklib, a platform offering AI-based study tools for students.

Introduction to business
operations and services

Table of Contents
INTRODUCTION...........................................................................................................................3
Company wide operation improvement.......................................................................................3
Advice for ford and GM to gain market shares of Toyota.........................................................9
CONCLSUION .............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Operational strategies refers to the methods companies use in their operation to gain
their objectives by developing strategies. Companies can implement and apply effectively and
efficiently for using the work process, resources and personnel, so they can increase their
market shares.
This report will cover the case study of TOYOTA company which is Japanese company
working on global level and More than 364445 employees are working for this company
worldwide. This report will explain the company-wide operations improvement strategies
and it will also include improvement strategies tools and techniques. Report provide advice on
the operational strategies that ford and Gm both companies can apply and gain the market
shares of the Toyota. It will include the strategies related to the operation which can be
implemented by the Gm and the Ford company, so they can take competitive advantages and
able to show their name in the US market.
Company wide operation improvement
Toyota need company wide improvement strategies to improve their production and
improvement in quality. It is an multinational auto mobile company and their headquarter is in
Aichi, Japan. More than 364445 employees are working for this company worldwide and having
good reputation globally. TOYOTA is largest auto-mobile manufacturer in Japan and second
largest in the global just behind the Volkswagen which is based on 2018 unit sales. This is the
1st company who manufacture around 10 million vehicle per year. This company is the
global marketplace leader in terms of their gross sales of the Hybrid electrical vehicles and
one of the biggest institution to promote the mass- market acceptance of the hybrid vehicles
across the globe.

Recently Toyota company caught in a downshifts where they are losing their shares in
US market, which is creating threat for them because the other competitors will try to steal
their shares, so they can show their presence in the US market where they are looking market
shares . Toyota company was performing well in the US market in past three years they sell
their vehicles rapidly but they are failed to achieve short term goals so it becomes threat for
the company.
Toyota company need improvement in their operation and these problems can be
solved by using some operation strategies, and they can overcome from this problem. It is
necessary for the operational department of the Toyota company to use those strategies for the
improvement in their operation, so they can take their shares which they lose in the US
market and gain competitive advantages . Toyota is loosing their shares in US market because
they are enable to provide inequality in their product. Here are some operational strategies
which can be used by the operational team of the company -
The Strategy Hierarchy
The Strategy Hierarchy is one of the best operational strategy which can be useful for
Toyota company to improve their operation and quality of the product. This Strategy can be
developed at the 3 major levels in the organization corporate level, Strategic Business unit level
and the last functional levels which is also known by the Departmental level. Before
implementing this strategy, it will be important for the Toyota company managers to understand
the all levels because every level have different issues to address.
Corporate Strategy
the direction of the Corporate strategy is coordinate and create Toyota's Portfolio of
the business and to assure the long period of success ODF their business units. In this
strategy company will find out the main goals of the company and the higher responsibilities
in their corporate business office. At this level of the management also takes place in the option
of the types of businesses the institution will develop and the management This strategy will
also focus to create good understanding between the different business united within the
Toyota company. It is concern with the coordination of company employees, resources and
their interdepartmental sharing to create improvement.
Business Unit Strategy

The business unit strategy can be defined as the companies unit which has a separate
mission as compare to the other part of the company and their mission and objectives are also
different and it can be panned independently for the Toyota company. At this particular, this
strategy is totally focused to create sustainable competitive advantages for the Toyota company
by selling the product which are made by the company or being produce by the Toyota.
Superior of the company should focus to changes in the companies' technology, so they can
improve the production which can satisfy the needs and of the buyers and also concern to
make the social environment at the workplace to improve operations.
Functional level strategy
The Functional level strategy is focused on the business process of the Toyota company
and their value chain. Functional level strategies regard a certain department’s strategy and the
coordination of resources at the business part level. This can include the strategies like
marketing strategies, HRM, legal strategies, new product development for the Toyota
company. Each function department of the company gives their attempt to do their own part
to meet the corporative objectives.
Top Down and Bottom Down Approach
The Top-down and bottom-up Approaches are two different different approaches which
are popular and used in order to measure the risk in the operation for the company.
Operational risk arrives out of the operational failure for examples – Failure in the technology
of Toyota company and management failure are the best examples of it. There are two kind
of risks Fraud Risk and Model risk. Fraud risk can occur when management loses the controls
over operations and the Model risk- this arrives due to the incorrect model application. It is
necessary for the Toyota company to find the operational risk which was the main reason
behind their downshift. After finding the risks in their operation, mangers and leader of the
company have to make proper strategies to overcome from the problem, and they can take
back their shares which they lose in the US market (Henderson, Goldring and Simeon-
Dubach., 2019). This will also helps them to improve their operational system, and they will
able to provide better product and services to their customers and they can also achieve loyalty
of the customers.
Top Down Approach

Top Down management occurs when task, projects and goals are determine among
the companies senior leaders, usually independently of their team. Leaders of the company
ensure from the lower level department that the companies goals, task and objectives are align
with the companies mission and vision. Toyota company can use this approach for the quality
improvement and find the issues in each department. According to this they can ensure that
companies goals are align with the mission and vision.
Top down approaches are investment approaches by the company in which company
superiors select the various sectors or the different industries, and they try to gain the
balance in their investment portfolio. The Top Down Approaches analyse the danger by
aggregating the impact of the inner operational failure. It measures the variant in the economic
variables that are not defined by the external macro-economic cause. As such, this method is
simple and not data-intensive. The top-down approach relies chiefly on historical information.
This approach is alternative of the bottom-up approach.
Bottom Up Approach
Bottom up approach occurs when the companies goals, task and projects are informed
by the employees itself to the senior management. Employees are invited by the superiors to
take participation in decision making -sometimes simply with feedback, sometimes with a stake
in the judgment (Kato, Fujimoto and Yamashina., 2019). These goals, projects, and duty are
then communicated by all team to senior leaders. Toyota company can also use this strategy
which is useful for them to overcome from the issues of quality and production. They can give
higher responsibilities to their employee or invite them to participate in decision-making
process. It will motivate senior level employees, and they will give their best in the task
which will improve quality and production as well.
A bottom up Approach is the another strategy of the investment which is depended on
the selection of the individual stocks. This obverse the management and the company's execution
in the market and are not general economic trend. The Bottom Up Approach analyse the single
risk in the procedure by using the scientific discipline models and the data intensive. Similarly,
if Toyota company will use the Bottom up Approach then they have to find the single risk
which is affecting their business mostly, and they have to use some metamathematical model
and data intensive which can be use to minimize the risk and helps to improve in their

operational management and company can perform better in their business. They will able to
increase their sales in the Us market and profitability as well.
Focus on quality
Toyota has Achieved a reputation for the production of very high quality vehicle in all
countries worldwide and this company successfully provide quality in their product and
satisfying their customers (Kolte and Dabade., 2017). They are using some of the tools like
Total quality management tools (TQM ) but they can also use the other quality management
tools
There are many different versions of the quality management which can be use full for
the Toyota company to improve their product and the services quality . Quality improvement in
is the most important thing which Toyota company need to consider in their business which
can help them to provide satisfaction to their customers, and they will able to earn profitability
in the business effectively (Lie, Syah and Erni., 2018). There are many ways to improve
quality by using the tools which can helps Toyota to improve their quality. Six sigma is one
of them . This can be useful for the company to improve their quality and increase their
production in the US market.
Six sigma
Six sigma is the method which helps to provide organizational tools to improve the
susceptibility of their business procedure. This tools enhance the capacity of their business
procedure also gain the performance and decrement in procedure variation helps to lead to
defect reduction and transformation in companies net profit, quality of the goods and employees
moral as well.
Implementing six sigma
There are 8 steps to implement six sigma in the Toyota company and company leaders
and mangers have to follow those steps properly, otherwise they can fail in implementation.
Here are steps for implementation -
STEP-1- Create a Burning Platform
The first step for the Toyota company is that they have to compelling a reason for the
implementing the Six sigma and Toyota have strong reason that they are loosing their
quality, and they want to increase their production in the market to fulfil demand of their
customers.

Step 2- Put resource in place
It is necessary for the company to hire the right resources because they will need new
equipments, technology and the most important team which can work together, and they should
be empowered to carry out initiatives (Liu and Lin., 2017). Toyota company have to hire
employees who are having good experience in this industry, and they should have learning
abilities.
STEP -3 Training
To implement six sigma approach company will need to training and this training will
be provided by the managers of the Toyota company where they will provide proper
information that how this approach will work and how they will control the quality and
increase the production of the company. Whole team have who is under the operation
management have to take training and it will take times and learn the six sigma technique.
STEP- 4 Prioritize Activities
One resources and training are in spot, a number of the possibility may present
themselves. Toyota company must make it priority to the listening of customers and their
needs because customers are their first priority who buy product and services from them,
find out critical to quality criteria. Manager of the company also have to ensure that six sigma
outcome are linked with the companies goals. It is essential to learn what to overlook and
where to take danger. Actions must be assessed to assure they are meeting the requirement of the
companies goals.
STEP-5 Establish Ownership
It is necessary to the company to be clear and appointing committee to find out who is
accountable for the whole team who are working under Six sigma. With the, engaged and
accountable. ownership comes authorization and the sense of pride, and team unit who are
more committed.
STEP-6 Take the right Measurement
This is also most important to take measurement of important (Luo, Lin and Zheng.,
2019). The employees who are working under the Six Sigma have to take proper measurement
that quality of the product and services are improved or not and if it is not then they have to
pay attention and find out the defects properly.
STEP-7 Govern The program

A proper governance structure can help company to sustain momentum in their Six
Sigma program. A poor governance or too much governance can be reason behind failure. For
instance, establishing a business quality council can help to clear any hurdles that may slow a
project, allowing the project to adhere to timelines.
STEP- 8 Recognize contribution
To make this program successful, it is necessary for the leaders of the company to ensure
that they are getting equal contribution from the Six Sigma team. To get proper attention for
the team members leaders can give them reward for their handwork which will bring
confidence in employees, and they will give their best in task which is provided by their
superiors. This will also improve the working efficiency of the employees.
Advice for ford and GM to gain market shares of Toyota
GM and ford have good opportunity to steal market shares of the Toyota. They can
use operational strategies such as lean manufacturing. Both strategies can be helpful for the
company. Both companies GM are Ford are well-known companies in US market, and they
are having culpabilities to steal market share of Toyota (Picolo And et.al., 2016).
Lean manufacturing
Lean manufacturing is the techniques which gives their focus to eliminate waste from
the manufacture system and maximize productivity and production both. They can remove the
parts from their products which can is not useful for their customers or not adding any value for
the customers.
GM and ford can use lean manufacturing to take competitive advantages in the market
and gain shares from the Toyota company (Seng, Jantan and Ramayah., 2017). There are
some Benefits from the lean manufacturing including reduction in a operational cost which
will helps them to save some money in the product, and they will able to provide their product
discount to their product with the better quality, it will also help them to save their times and
quality of the product will also improve by using this technique.
Five Principles of Lean manufacturing
 Identify Value from the customers - Value of the goods are created by the manufacturer
but it is characterized by buyers of the product. GM and ford have to understand the
demand of their customers, and they need to identify that how much money client is
willing to pay. Both the institution must strive to minify waste and value from their

business activity so the customers optimal price can be achieved so company can earn
both loyalty of the customers and higher profits in the market.
 Map the value system- This principle include recording the flow of information and
required material which is used to produce product and services in GM and ford with
the intent of finding out waste and improvement methods (Trojanowska, J. and et.al.,
2018). The value Stream mapping encompasses the life of the product life-cycle, from
the raw material to disposal.
 Create Flow – operational team have to remove barriers from the functions and
determine ways to modify lead time. This aids helps to ensure that the processes of
manufacturing is smooth-textured from the times an order is received by the
transportation. Flow is captious to the dismissal of waste. Lean manufacturing relies on
preventing break in the manufacturing procedure and facultative a harmonized and
incorporate set of processes in which action move in a constant stream.
 Established a Pull System- lean manufacturing use pull system instead of a push system.
Both are different from each other where Push system are used in the resource plaining
in the manufacturing (MRP system ) This system helps to determine future need of
resources in their inventory so GM and ford can provide their products when it is
needed but forecast are typically inaccurate which can result in swings between too
much inventory and not enough, as well as subsequent discontinuous schedules and poor
client service while lean manufacturing is supported on pull system in which nothing is
bought or made until there is demand (Viljoen, Vermeulen and Pretorius., 2018). Pull
relies on the flexibility and communication
 Pursue perfection with continual process improvement - lean Manufacturing remainder
on the conception of continually starved for the idol in the manufacturing , which
demesne targeting the root origin of the quality issues and ferreting out and eliminating
waste crosswise the worth stem.
CONCLSUION
As per the report has been covered the case study of TOYOTA and their competitor GM
and ford. This report has been explained company-wide operations improvement strategies
and it also has been included improvement strategies tools and techniques. This report has been
provided advice on the operational strategies that ford and Gm both companies can apply and

gain the market shares of the Toyota. It has been included the strategies related to the operation
which can be implemented by the Gm and the Ford company, so they can take competitive
advantages and able to show their name in the US market.

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