Mini-Case#16. What are the advantages of Toyota’s system?

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Mini Case # 16
The outline of the case is as follows.
* Introduction
* Thesis statement
* Background of the problem
* Alternatives
* Purposed Solutions
* Recommendations
* Conclusion
Introduction
The mini case response is related to Mini-case 16, “ Toyota: Lean Production and the Rise of the World’s Largest Automobile Manufacturer.” The material presented in the mini-case briefly describes the growth of Toyota and the challenges experienced by the company. The case indicates that Toyota Company has experienced significant growth since its inception. The company sold approximately 9.4 million vehicles globally in 2012, which made it the largest manufacturer in the globe. However, the worldwide financial crisis in 2008 to 2009 affected the company adversely. For instance, consumers’ demand for new vehicles decreased causing the globe’s vehicle manufacturing companies to experience losses. The mini-case focuses on examining how the Toyota Company could re-establish itself as the undisputed leader in the vehicle manufacturing sector, and how the company could stand out in the rapidly industrializing market place.
The following are key-problems or issues that will be addressed.
* Are there advantages of Toyota manufacturing system when compared with conventional mass production system?
* What are the consequences of the differences between supplier relations managed at Toyota and those managed historically at the United States manufacturer?
* How does Toyota relate to its customers? Does it affect its production and design planning process?
* Can the cooperation Toyota has achieved with its employees and suppliers in Japan be replicated in its foreign manufacturing operations?
* Is the competitive advantage of Toyota imitable? What is it based on?
Thesis Statement: Based on the analysis of the mini-case materials available, it is likely that boosting sales in the United States, and introducing 0% financing enabled the company to recover from the losses in 2008-2009. Also, changing the company’s senior management rank enabled Toyota to experience success in the automotive industry.
Background
It is important to examine the factors that caused the automobile industry to experience the challenges that indicated the mini-case. As the case states, Toyota Company was established in 1910. Toyoda Sakichi developed the idea behind inventing a Toyota motor company. Sakichi achieved success when he invented an automatic loom that lowered the cost associated with high-quality interlacing fabric. In 1926, Sakichi produced Toyoda automatic loom to manufacture the vehicle and sold the patent rights to the British textile industry in 1930. At the end of the Second World War, Kiichiro stated that the company should be established as a car manufacturer. However, the company faced numerous problems that included the inefficiency of the Japanese domestic market to support large-scale production of vehicles. Moreover, it was a challenge for the Japanese economy to raise money to support new investments because of the unavailability of capital. Also, the United States had introduced new labor laws...