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toyota

toyota

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Published by suredotcom007

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Published by: suredotcom007 on Apr 23, 2010
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05/05/2013

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Toyota: a case studyToyota: a case study
Presented ByPresented ByNaziaNaziaHassanHassan
 
BackgroundBackground
Toyota Motor Company was founded in 1937 by the Toyoda family.Toyota Motor Company was founded in 1937 by the Toyoda family.
Business was relatively unsuccessful until Eiji Toyoda introduced theBusiness was relatively unsuccessful until Eiji Toyoda introduced themethod of lean production after studying Fords Rouge plant in Detroit inmethod of lean production after studying Fords Rouge plant in Detroit in1950.1950.
This lean production method became known as the Toyota ProductionThis lean production method became known as the Toyota ProductionSystem.System.
The production executive, Taiichi Ohno, successfully helped ToyodaThe production executive, Taiichi Ohno, successfully helped Toyodaimprove his company using this new production method and mode of improve his company using this new production method and mode of thinking.thinking.
 
Environment Environment 
CulturalCultural
Company as a community: lifetime employment, access to company facilities,Company as a community: lifetime employment, access to company facilities,seniorityseniority--based wages (in return for 1/3 work force layoff in 1946) ; as a return,based wages (in return for 1/3 work force layoff in 1946) ; as a return, employees must be more flexible and actively promote interests of company >>employees must be more flexible and actively promote interests of company >>Implications: labor = Fixed cost Implications: labor = Fixed cost 
EconomicEconomic
Postwar conditions put Japan into a country lacking significant capital, so that Postwar conditions put Japan into a country lacking significant capital, so that Japan had to rely mostly on producing its own technology.Japan had to rely mostly on producing its own technology.
PoliticalPolitical
The Ministry of Intl Trade and Industry (MITI) encouraged Japanese firms toThe Ministry of Intl Trade and Industry (MITI) encouraged Japanese firms toenter the automobile industry despite established competitors from the West byenter the automobile industry despite established competitors from the West byimposing high tariffs discouraging imports and prohibiting foreign ownership.imposing high tariffs discouraging imports and prohibiting foreign ownership.
Japans work force, under Western influence after WWII, grew more powerfulJapans work force, under Western influence after WWII, grew more powerfuland more demanding, thus limiting producers efforts to reduce labor costs.and more demanding, thus limiting producers efforts to reduce labor costs.

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