Case Module 3

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Module 3 Case Strategic Management February 20, 2012 Toyota Internal Analysis Toyota like most companies has its strengths and weaknesses. In a SWOT analysis we will review Toyota’s strengths and their weaknesses. I will also review how they take advantage of their strengths or how they don’t and take a look at the weaknesses and how they can be improved upon. A strength of Toyota that sets them apart from other car manufactures is the JIT method or Just In Time process. This method has proven to be effective and cost efficient for them. This leads to lower costs on the automobiles they produce which in turn give consumers a better price. They also have a lean manufacturing that cuts costs and keeps inventories down and speeds up the production process. Toyota strives to effectively use resources to maximize production and minimize costs. This type of lean manufacturing has made Toyota a leader in the auto industry. Suppliers are strength. Strong relationships with suppliers make for an efficient manufacturing process. Suppliers are a key ingredient in the Kanban System. Toyota Production System is one of the items in which Toyota Motor Co. instructs the suppliers. This system is also called the Kanban system and has become well-known internationally for its small quantity of stocks and thorough rationalization. Toyota Production System has two major features, “Just-in-Time Production” and “Jidoka (Automatic line stopping when something goes wrong)” (Kanban System, No date). Toyota found that horizontal merge proves to be cost effective, risk reducing, and increase benefits. Understanding the importance of good relationships with suppliers, Toyota sought out to assist with management, help engineering expertise, and even offered to finance potential investments. Toyota strives for the best and only goes after the best suppliers of Japan

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