Management, Operations, and Personal Development

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Funding was cut back due to rising global competition, and the desire for better quality The pressure to improve system and operation quality and enable effective operations is something that all organizations must deal with. Total quality management highlights the mindset and organizational culture of businesses that offer services and goods to meet the expectations of their clients (Yüksel, 2012).

Motorola developed the six sigma methodology in order to track flaws across millions of opportunities. For the methodology to result in new norms and processes, a cultural shift was necessary. Motorola managed to document huge savings ($16 Billion) due to the utilization of six sigma’s continuous improvement efforts (Snyman and Kruger, 2004).

Kaizen - continuous quality improvement (CQI)

This is a Japanese methodology that was adopted by Toyota in between 1950-1960s, and it involves the promotion of the instinct for continuous improvement through small incremental approach over a period (Shortell et al., 1995). The implementation of Kaizen, quality management methodology, highly depends on the senior organizational management. The methodology ensures increased efficiency, reduction in waste, continuous monitoring, and improvement of products, increased employee satisfaction.

Total Quality Management (TQM)

This is the earliest scientific methodology adopted in the process of improving all aspects of quality with broad application in Japanese and U.S. manufacturing sectors or in any other organization with contentious issues in implementing a disciplined approach to improving customer satisfaction (Rex et al., 2002). The management has first to identify the improvement goals and within what project these needs to be achieved. TQM seeks to integrate all organizational operation functions i.e. finance, marketing, engineering, designing, production and customer service to meet the organizational objectives and the customer needs. TQM is infinitely adaptable ad variable, and a lot of organizations have been able to create different versions of TQM that are best suited for their functions (Schroeder et al., 2008).

Lean generation concentrates on disposal of waste—of materials, time, inventory idle hardware, enhance efficiency and benefits by enhancing material taking care of, stock inventory, quality, planning, work force, and consumer loyalty. A key element is the strengthening of line specialists to actualize configuration changes and to end a procedure to maintain a strategic distance from mistakes—transforming workers into issue solvers. At first, some people disputed the of idea Toyota's prosperity claiming that it was attached to social contrasts between Japan and the United States, the organization's achievement in actualizing the system in its North American plants killed the claims (Pryor et al., 2007).

TQM allows obligation chances for everybody in the association regarding quality at each phase of generation, from the underlying plan stages to after sale deals benefit. On the off chance that an issue is discovered amid any phase of the generation procedure, it is settled by that individual, before it influences ensuing creation stages. Hence issues are resolved before they affect the end client (Müller, 2011).

The technique requires hierarchical pioneers to build up change objectives and to pick that can accomplish particular upgrades. Cross-functional groups devise a stream diagram of a procedure under investigation and utilize information to comprehend varieties from quality. The approach sees mistakes as results of ineffectively composed frameworks, not as the blame of individual specialists. Once groups have built up an advanced comprehension of a procedure, they begin a four-stage routine with regards to plan, do, study, act (Luo, 2007).

Mission, Vision, and Values

The organizational values are best communicated through the written vision and mission of the organization that relates to the primary purpose of the organization. Companies that issue vision and mission statements that are communicated clearly, understood widely and shared collectively have recorded better performance than companies without the visions and mission statements. The company’s mission and vision can only be said to be effective only if they are aligned with the organization’s objectives, goals and strategies (Kumar and Ellingson, 2007).

The mission statement explains the company’s reason of existence and communicates hits plan on serving its employees, customers and stakeholders. In some cases, the mission statement can be used, to sum up the values of the organization. On the other hand, the vision statement addresses declarations of the aspirations and the function of the organization in future (Johnson and Whang, 2002). The vision statement bases its future aspirations on the purpose statement.

The vision and mission statement have three primary roles;

1. Communication on the functionality of the company to various investors

2. Development of measurable objectives and goals that are used to gauge the success of the business’s strategy.

3. Inform strategy development


When developing an organizational strategic plan, some factors go into consideration i.e. the type of management used determines if the strategic plan will be implemented using a top down approach or bottom up approach. The bottom up approach is considered to be democratic compared to the top down approach that is considered to be bureaucratic (Hart, 1992). The culture of the organization will at the same time define the behavioral approaches. Planning systems need to evaluate the impact of the strategic plans for the departmental level managers and targets.

The Ansoff matrix provides an easy way for business leaders and marketing team to identify risks of growth. The planning methodology involves four stages of market development, diversification, market penetration and product development. The risk increases as one move from one growth strategy to another (Freeman, 2010). The BCG matrix, on the other hand, is used in reviewing of the product portfolio with long term strategic plans. BCG primarily helps a business to evaluate the available growth opportunities to identify investment opportunities or make decisions on developing or discontinuing products (Gunasekaran. and Ngai, 2004).


The global automotive brands are facing lots of environmental pressures from the environment in which they operate. Amongst some of the factors driving the motor industry is the technological shifts that have seen increased investments by competitors who are investing in self-driving vehicles technology. Competition is also another factor that influences the automotive marketing industry (Clark and Fujimoto, 1991). Here a PESTEL evaluation of Toyota that tries to provide insights into the various forces affecting the profits and market operations of Toyota.


The growing operations of business on global levels entirely depends on political stability and the regulating policies for a business to operate its business I a given country. Political stability is associated with the creation of a calm business environment without political turmoil. Political instability can disrupt the distribution networks of raw materials and supply chains. Asia, the main operational base of Toyota, has maintained a stable and positive environment for Toyota to operate profitably. The political disruptions in Europe have however impacted the ability of Toyota to conduct business there with the recession (Decker, 1992.).


The passing of the economic recession Asia is recording amongst the fastest growing economies. However, this is not witnessed on a global level as still some countries are struggling to emerge from economic slowdowns. Economic situation directly impacts the level of employment and the purchasing power of citizens. Despite the economic challenges in other countries Toyota has managed to focus its efforts in the development of smaller cars that are economically affordable thereby increasing profits.


Cultural and social forces tend to affect the sales of international brands. Toyota has dedicated lots of efforts to localization to ensure they appeal to local, regional customers. The global market comprises of smaller markets that exhibit high social barriers hence localization helps advance brand acceptability. In addition to this, social trends i.e. change in preference affects the Toyota business. Toyota plans to increase their production of electric vehicles that appeal to the younger generations by 2020.


Technology remains to be the backbone upon which the automobile industry is based. Improved technology directs impacts the rates of sales. Technology innovative brands invest huge amounts in improving passenger's safety. Technology has also grown to be a very influential marketing tool that allows for the connection and engagement with customers to address their concerns. Toyota aims to develop a new self-driving/ autonomous vehicle hence the need to invest hugely in technology.


Environment sustainability is a topic of concern in the automobile production business since emission of fumes results in polluting of the environment. Toyota has achieved a milestone in developing an environment sustainability business strategy that resulted in the winning of reward for fuel cell vehicle that has led to reduced emissions. Still, Toyota dedicates a lot of resources in ensuring that they protect the environment. Toyota is dedicated to the development of the next generation hybrid vehicles, fuel cell vehicles and electric vehicles that are eco-friendly and have a lower CO2 emission rate. All these efforts serve to contribute to an eco-friendly environment (Debnath, 2015).


Legal compliance ensures that international companies operate within the jurisdiction of governing laws in their areas of operation. This ranges from labor laws to laws related to quality requirements, environmental protection policies and passenger safety issues. Toyota has developed internal controls that ensure that they operations are in-line with the legal compliance requirements at all levels. The corporate guiding principle adopted by Toyota is to honor the spirit and language of the law of all nations and undertake in fair and open corporate activities, and most of all be a good citizen of the world.


Toyota remains to be one of the biggest producers within the automobile industry. However, in recent time, it has faced challenges from its close competitors like Volkswagen that has toppled its leadership in the automobile market and brand recognition. As much as Toyota remains to be a widely known and accepted brand in the world, it operates in an environment where several forces impact its business operations. The Porter's five forces model is an analytical tool that allows for the evaluation of the effect of competition and the strength of a brand within the market. The Porter's five forces evaluation of Toyota include;

1. Toyota’s bargaining power of suppliers is weak

In the case of Toyota, their suppliers pose a weak bargaining power. Most of the suppliers to Toyota are moderate in size and reduce their ability to influence Toyota. D to a high number of suppliers Toyota has lots of options to choose from hence allowing for easy switching between suppliers. For the suppliers, this means loss of business. These factors increase the control of Toyota over their suppliers thereby suppressing their bargaining strengths (Crosby, 1979).

2. Threats of substitutes is moderate

There is a moderate level of threats presented from substitutes of Toyota. The public modes of transport are the biggest preferred substitute since it involves lower costs of switching making it convenient for many users. Threats majority of the middle and lower class people prefer the substitutes due to the economic advantage presented. Toyota has developed new models that consume lower levels of fuel, safer for family use while at the same time ensuring they are affordable to many. All these efforts try to mitigate the threat of substitutes to a small extent hence the threat remains at moderate levels.

3. Bargaining power of customers strong

The availability of cheaper substitutes, lower switching costs, and the variety of options from Toyota’s competitors gives the customers a strong bargaining power. The vast majorities of customers are highly informed of available alternatives and are free to decide on any brand with similar pricing and attributes. The little bargaining strength held by Toyota is due to their design and technological innovations that have increased customer loyalty.

4. Industrial competitive rivalry is strong

Although the major global players’ number is limited there exists a high level of competition. The companies employ aggressive marketing strategies. The automobile brands compete on several levels including designs, technological innovation, fuel efficiency, passenger safety and much more. The increased competency increases investments in marketing and R&D. Close competitors of Toyota include Honda, Ford, Hyundai and much more.

5. Threats of new entrants weak

Entering into the automobile industry requires a huge capital investment to fund and manage the brand. A new brand needs to extensively invest in marketing, hiring of experts in different levels, distribution system, and a supply chain. For entrants to become even notices, they must have a unique innovation that differentiates them from the rest. The automobile industry entry and exit barriers are huge, and this limits the new entrants. At the same time the existing incumbent automobile brands are likely to exert pressure on new entrants a, they have resources these includes investing heavily in research and production of new models at fast rates, heavy advertising and promotions to increase customer loyalty (Clark, and Fujimoto, 1991).


Stakeholder analysis is an evaluation technique that is used to identify the right people to be engaged and winning them over. Projects cannot be successful without the involvement of the senior management. Stakeholder analysis involves the collecting of senior management opinions to help shape the project in the early stages of requesting their support. Winning the support of senior stakeholders allows accessibility to resources besides making them understand what the project represents from their business point of view.

The first step is the identification of the stakeholders i.e. the people likely to be affected by your project. Next, prioritize all the stakeholders in order of their influence and interests on the project. Lastly and the main point of stakeholder analysis is trying to engage them and win their support.



Procurement is an important aspect of any business that is directly associated with the organization’s success. Technological advancements have allowed for the change in the manner in which procurement operates. Information technology has allowed for the creation of appropriate networking infrastructures to allow for communication between suppliers and the business organizations. Most organizations are focusing on reducing the time and cost requirements of procurement processes and reducing the purchasing prices through the use of comparative technological models (Hsin Chang et al., 2013). In the modern complex supply chains, business operations information technology is considered as a prerequisite for ensuring effective control.

Information technology is used in supply chain management for;

1. Transaction processing: for this scenario IT usage is driven by the urge to reduce procurement costs, increase the transaction volumes, elimination of human errors see in the traditional procurement models and the speeding up of the whole process of information sharing.

2. Order tracking and delivery coordination: technology allows for in-transit delivery consolidation and business project orientation.

3. Supply chain planning and collaboration

Technology is highly preferred since this process is highly unpredictable and operates in an environment that is logically demanding.

The use of technology for information sharing highly depends on the ability to predict demand. Sharing of information can bring significant value especially in scenarios of unknown demand i.e. during promotional situations and the sales of new products (Johnson, and Whittington, 2008).


E-procurement has grown to be an important aspect of modern business addressing the business processes and relationships and their suppliers. The main points of focus about e-procurement have been reverse auctions and online market places. The e-procurement processes can be used for the processing of orders whereby the sellers may be allowed to specify their costs and in most cases invite buyers to place their bids (Johnson, and Whang, 2002).

E-acquirement, the part of e-business which addresses the connections and procedures of business with its providers, was an intriguing issue for quite a long while. Online commercial centers and invert barters were the fundamental concentration of intrigue. Presently the elation encompassing e-business has subsided, there is additionally less discuss e-procurement. What is the part of data innovation in the acquirement capacity of huge organizations today?

The acquirement association can essentially impact the achievement of an organization. Nowadays it works in a dynamic, complex condition and keeping in mind the end goal to work effectively and successfully it needs to make proper structures and utilize reasonable technology. Data innovation can play an imperative part in this.

There are various types of e-procurement systems i.e.

1. E-MRO (Maintenance Repair and Overhaul)

2. Web auctions

3. E-sourcing

4. Web-based ERP (enterprise resource planning)

5. E-tendering

Logistics service and international trade

The internet is the most used form of technology that influences the communication between buyers and suppliers which include sending of invoices, delivery and availability flow of information acts as a backup to the supply chain. Technology is also used for filing of returns of goods mechanisms and supporting of various payment plans and payment platforms. Technology can also be used for tracking of transported goods through radio frequency identifications and other communication plans.

The most vital general procurement objective set by the organizations analyzed is to decrease of the procuring cost. The Extraordinary significance is too joined to internal organizational process enhancement. The most astounding need for the greater part of the organizations in the utilization of data innovation is for logistics, tracking and ordering (50.8 %). The need of IT ought to offer help in the streamlining of process proficiency and cost/consumption transparency and accomplishing diminishments in the acquiring cost. IT makes a vital commitment to effectively doing the acquisition work. Likewise, desires of the technology utilized are altogether met for an expansive extent of the acquisition associations (Kumar, and Ellingson, 2007).

Various organizations have made considerable interests in their IT framework over the recent five years. The fundamental core interest lay in the improvement of the products administration framework (66.0 %), in the change of the ordering capacity (60.0 %) what's more, in electronic receipt preparing and billing (54.0 %). Venture objectives were accomplished totally for 26.0 % of the organizations while the others needed to acknowledge bargains as far as costs, scope or, on the other hand, the arranged time span (Chopra, and Sodhi, 2004).

The request demonstrates that the cutting edge technology of e-procurement and Supplier Relationship Management are just utilized reliably by a minority. Just the materials administration module demonstrates a reliably high level of utilization (67.2 %). Online-apparatuses for index based procurement, for solicitations to delicate or buying barters and for coordinated provider collaboration are utilized just once in a while or every so often in correlation. There is likewise still potential for utilization of technology for contract administration and provider assessment.

Various organizations have utilized technology to better their services. For this case let’s still maintain Toyota. Considering that the use of IT is the backbone of most of the business operations of Toyota they have digitized their business processes especially in the procurement and supply chain sectors. Through the advanced technologies, it is possible for them to place orders online and get the goods delivered to their favorable location. Goods can only be said to have been delivered when they reach the intended customer hence the company takes responsibility for tracking the logistics aspect of transporting goods to the consumers. In the future, more technological advancements should be anticipated with better provisions being put in place to streamline the process of procuring product or services. Technology has proved to benefit many sectors thereby improving their efficiency, transparency of operations and more dependability (Bendell, 2006.).


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March 02, 2023

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