UGB165: Risk Management and Operational Strategy for Toyota

This report assesses Toyota Motor Corporation's business operations, focusing on risk management and operational improvement strategies. It advises Toyota on implementing a robust risk management strategy to minimize future shocks, emphasizing structured approaches for identifying, evaluating, and managing risks. The report also details the introduction of a company-wide operations improvement strategy, suggesting tactics such as Just-In-Time inventory systems, supply chain management enhancements, product design improvements, and Total Quality Management. These strategies aim to enhance production efficiency, minimize waste, improve supply chain flow, and ensure high-quality workmanship, ultimately driving business development and profitability. The analysis covers operational objectives like quality, speed, and cost reduction, alongside marketing strategies for improved effectiveness.

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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transformation into finished commodities. In addition to this, there is involvement of active
streaming business supply side. It aids in enhancing consumers value as well as obtains
competitive edge over other entities.
Toyota is the entity which loss their last grandeur as well as profitability developing
ability because of future market of FORD and GM. It has forced them in applying supply chain
management so that it may enhance its profitability which have been lowered into current
quarters as Ford and GM have undertaken the market place over Toyota. Also, for gaining
competitive edge upon other firm, they have adapted supply chain management.
This control technique addresses an endeavour to extend and uphold the production
network with the goal that it will be effective and financially conceivable. This system covers the
total that covers creation and item advancement. Toyota needs to embrace this machine so this
will assist with controlling the assembling, freight and dissemination of the item. The convey
bind assists with dealing with the organizations' abundance cost cut and helps in causing the
products to get benefited from quick (Gupta and Rastogi, 2020). This procedure depends
available results from the endeavours of different business venture that could help with forcing
the control of inventories. The inventory network arranges with the coordination’s of the
association in all components that comprises of preparation, sourcing of uncooked substances,
and assembling with execution, delivering and at last the return machine. In this manner
upgrades have genuine and durable impact at the functional turn of events.
Item Design:
Item Design in activities the executives is one of the most fundamental and crucial stage
inside the item improvement. This could be extremely basic to development the consideration
and the endeavour to plan another supplier. This permits inside the benefits of the office. The
item configuration has two basic advances:
Utilitarian format the item is intended to be valuable. Organizations like Toyota settle on
decisions dependent on the size, materials which are to be utilized, and the kind of end results
that are in need. In this stage, the dressmaker is stressed with the item and the top notch itself and
the methods that have been used by the assembling home. The fundamental district of subject is
deliberate contemplations, buyer fascination and the expense and simplicity of assembling.
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Creation Design: In this level, the style originator considers the appearance of the
adjustments which are needed for the advancement of the association. The thought comprises of
not many levels like normalization, secluded design, rearrangements.
All out Quality Management:
This is a relentless way so one can find and diminish the mistakes in smoothing out,
creation and creation. This system permits in further developing the supporter experience and
guarantees that each one faculty are in control in tutoring and creation procedure. The TQM
attempts to keep up with the gatherings that are worried in the assembling (Helmold, 2020). This
method is most commonly used by Toyota Company to have the option to development the
advance and ensure that decent of the products is kept up with. This empowers the association to
get again the call and notoriety that it used to encounter and the offer charge of the undertaking is
in like manner anticipated to blast.
This also has practical experience in ensuring the internal traces of the strategy that
permits to diminish the mix-ups.
Activities Objectives:
Functional objective is the most fundamental time-frame in big business. These
objectives help to help the brief time frame time frame objectives and their main objective is to
bring the association near long time wants. There are numerous functional destinations that are
referenced under:
 Quality: Quality is the most indispensable a piece of activities and it's miles steady
pointer in gathering the hopes of the customers. Quality works with to keep up with the
consistency in producing merchandise and contributions and presents client joy. This
makes presence simpler in the association and the tasks are executed with precision. This
goal works with the business endeavour to diminish the expense of advancement and
adjustments. There are fewer blunders and significantly less time is burned-through in
creating the merchandise. This permits to capture that astounding ought to be quite
possibly the most basic focuses in gathering the functional advancement element.
 Speed: Speed is the main guidelines that need to be content in get together the objectives
of the assembling and activities. Speed is the passed time between the customers'
solicitation for an item until they get the help. The significant benefit of the activity's
outer customers is they help in information the speed of the conveyance. The quicker the
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labor and products might be presented the quicker the association can acquire its
standing. Toyota's most significant objective is presently to get it done however quick as
they seem to be ready to. This will help to prevail upon the cutthroat advantage and take
itself sooner than Ford and GM.
 Cost: Competing over cost is the greatest significant objective and lessening the cost
empowers the clients to manage the cost of the results of the specific boss. The lower the
cost of assembling the products, the lower can be charged from clients (Meierhofer,
Schweiger and Schreuder, 2021). This will assist customers with getting back to the
organization to purchase the products. This is a fundamental part to win the cutthroat
advantage. The low worth is similar along with fine, speed, reliability and adaptability.
The markdown of cost through the internal viability might be vital in making upgrades of
the functional goals.
Advertising methods
In contemporary worldwide, it has been inspected that publicizing strategies are
fundamental to lift the adequacy and usefulness for a huge scope. As in accordance with the
points of view of Haider et al. (2019), publicizing and showcasing strategies are utilized so as to
help more prominent pay and it empowers to fulfil the necessities of clients. It has been utilized
by Toyota and distinctive vehicle creation enterprises so it will fix a wonderful expense and it
assists with planning with the contrary staff. It works with to procure the objectives of
commercial centre that is accomplished through choosing an objective market and storing up the
publicizing blend.
Low charge
It has been analyzed that GM is going through huge requesting circumstances because of
developing expense charge of steel and this risk is influencing to other car businesses. Cost the
board is one more system that might restrict the worth of metal supplies and it'll development the
efficiency on a major scale. It is of most extreme importance to bring down the expense charges
of metallic assets so you can development the cost of administrations and items.
Brand character
The primary intention of logo distinguishing proof is to portray the best photograph and
image of the brand before the shoppers. It is utilized by Toyota Company that permits you to
help the consideration of shoppers and with the help of wonderful brand planning and correction
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of the designs can assist the association with pointing more noteworthy efficiency. To acquire
forceful advantage in overall elevate it is urgent to limit the convey and assembling pace of
metallic and various pieces of used by the overall vehicles and other car venture (Braun et al.
2018).
Acquisitions key collusion
Acquisitions key collusions is one of the significant publicizing approach and it will
assist the business with creating for an enormous scope. Partnership is utilized so one can
incorporate powerful freedoms to blast the blast of assembling industry. As expressed by Han
and Kang (2018), on this framework one manager used to purchase various gatherings to
eliminate the outcomes of the resistance.
Client development
Client's development is another publicizing system that is utilized so one can advantage
supply wonderful items and administrations to the objective market. The task of Toyota is to
inventive new product and to make greater its product around the world for an immense scope. It
has been found that customer enhancements have assisted the business undertaking with helping
extra new organizations (Miles and Boden, 2019). Advancements in buyer help to expand the
expense of clients and it help to investigate new interaction.
Prompt on the functional techniques that Ford and GM can place in power to advantage
commercial centre rate from Toyota.
The main explanation of functional procedures is to accomplish the objective and achieve
the functional objectives mounted through the business. The premier focuses of the activities are
to expand the adaptability and speed and to diminish the worth of metal assets. It has been tried
that through developing the functional technique Toyota can without trouble produce viable
administrations and items with the help assets and other adaptation.
Corporate methodology and collaboration way
Corporate strategy is utilized with an end goal to set up a dating with the contrary
segments of control and it changed into found that each and each a piece of the association is
interrelated with each unique. It is the commitment of enterprise to have cooperation with their
objective is to have association and captivate them (Mohammed, 2019). Cross viable discussion
technique can blast the increment of the endeavour for a huge scope. It is basic for the Toyota
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Company to embrace this system for conquering future difficulties; and it will help Ford and
General Motors' (GM) to advantage piece of the pie from Toyota.
Client pushed methods
Clients pushed approaches and techniques are significant which will satisfy the desires
and necessities of the objective market. It's miles the obligation of the business endeavour to
attempt the procedures with regards to support the worthwhile focuses and limit the awful
factors. It is fundamental to take on this procedure for observing the new showcasing patterns
and it help to kill the dangers influencing the development of the organization (Nag, 2019). The
clients driven methodologies will be helpful for the Ford and General engines' (GM) to acquire
portion of the overall industry from Toyota.
Prologue to cutthroat need
The primary rationale to acquaint serious need is with build up a procedure dependent on
the standards of the necessities of clients. It has been seen that to acquire share market from
Toyota it is significant for GM and Ford to decide their functional expenses and too analyze the
nature of items. The primary meaning of this technique is to convey quality labor and products at
sensible expense cost to fulfil the requirements of the clients.
Improvement of items and administrations
 Inventive plan and worth of items assists with deciding the techniques through which an
organization can advance new items and administrations.
 It has been seen that Toyota is utilizing kaizen reasoning to work on the nature of
administrations and items on worldwide scale. In kaizen process it was outlined that
everybody are engaged towards progress of activities and it serves to strength the group
construct process. Gemba is one more interaction which is utilized by the auto intention
organizations to watch out for the cycle utilized by Toyota.
It tends to be presumed that, the improvement methodology can be upgraded with the
assistance of JIT framework and executing of preparing and advancement programs dependent
on absolute quality administration for the staff individuals. In the subsequent inquiry, it very well
may be expressed that the principle destinations of the organization can be satisfied by utilizing
quality showcasing techniques to be specific minimal expense cost and advancement
(Namugenyi, Nimmagadda and Reiners, 2019). There are some functional procedure referenced
above which are urgent for the GM and Ford to purchase the portion of the overall industry from
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Toyota. In this segment Kaizen theory has been utilized to work on the nature of items
consistently.
Suggestion
 It can be suggested that, functional methodologies, for example, client driven and
corporate techniques are useful for working on the presentation of clients.
 It can be proposed that, JIT framework plant is critical for working on the nature of
administrations and items (Temnyshov and Belyaev, 2020).
CONCLUSION
As per the above report, it has been concluded that business operation and services plays
vital role within organisation. As 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. While business services is undertaken as the
general aspects which explains task which supports ventures but do not generate tangible goods.
Presently, information technology is essential business service which supports various other
industry or business like automobile, shipping, and so on. Additionally, risk management is vital
into firm 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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REFERENCES
Books & Journals
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Using Process Architecture Models. In International Conference on Advanced
Information Systems Engineering (pp. 643-658). Springer, Cham.
Beynon-Davies, P., 2019. Business information systems. Red Globe Press.
Essila, J.C., 2019. E-Business Supply Chains Drivers, Metrics, and ERP Integration.
In Advanced Methodologies and Technologies in Business Operations and
Management (pp. 989-1002). IGI Global.
Gude, V.G. and Muire, P.J., 2021. Preparing for outbreaks–implications for resilient water utility
operations and services. Sustainable Cities and Society, 64, p.102558.
Gupta, R. and Rastogi, P., 2020. Barcode for Retail Store Operations-The Perfect Tool at Low
Cost.
Helmold, M., 2020. Lean Management in Operations. In Lean Management and Kaizen (pp. 65-
72). Springer, Cham.
Meierhofer, J., Schweiger, L. and Schreuder, L., 2021. Digital twin based decision support
services in business operations. In Smart Services Summit (pp. 117-129). Springer, Cham.
Miles, I. and Boden, M., 2019. Introduction: Are services special?. In Services and the
knowledge-based economy (pp. 1-20). Routledge.
Mohammed, I.A., 2019. CLOUD IDENTITY AND ACCESS MANAGEMENT–A MODEL
PROPOSAL. International Journal of Innovations in Engineering Research and
Technology, 6(10), pp.1-8.
Nag, B.N., 2019. Managing operations in manufacturing, services and e-business. Rylan Books.
Namugenyi, C., Nimmagadda, S.L. and Reiners, T., 2019. Design of a SWOT analysis model
and its evaluation in diverse digital business ecosystem contexts. Procedia Computer
Science, 159, pp.1145-1154.
Temnyshov, I.A. and Belyaev, A.M., 2020, February. Business modeling in business operations
of manufacturing company. In IOP Conference Series: Materials Science and
Engineering (Vol. 753, No. 8, p. 082027). IOP Publishing.
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