TOYOTA MOTOR COMPANY

Operational strategy is a plan specifying how an organization will allocate resources in

order to support infrastructure and production. It is a strategy that is typically driven by the
overall business strategy of the organization, and is designed to maximize the effectiveness of
production and support elements while minimizing costs.

Nowadays, there are many companies rising up because of there unique strategies in
operating their businesses, one of these company is Toyota Motor Company. Toyota strives to be
a strong corporate citizen, engaging with and earning the trust of its stakeholders, and to
contribute to the creation of a prosperous society through all its business operations.

But what is the secret of Toyota’s success? Based on my research, the incredible
consistency of Toyota’s performance is a direct result of operational excellence. Toyota has
turned operational excellence into a strategic weapon. This operational excellence is based in
part on tools and quality improvement methods made famous by Toyota in the manufacturing
world, such as just-in-time, kaizen, one-piece flow, jidoka, and heijunka. These techniques
helped spawn the “lean manufacturing” revolution. But tools and techniques are no secret
weapon for transforming a business. Toyota’s continued success at implementing these tools
stems from a deeper business philosophy based on its understanding of people and human
motivation. Its success is ultimately based on its ability to cultivate leadership, teams, and
culture, to devise strategy, to build supplier relationships, and to maintain a learning
organization.

Toyota really handle properly the implementing of their plans and strategies. They have
different products with different segments for costumers which meet the needs of customers
from all levels with the high production lines which gives Toyota its good reputation and brand
image that reflects positively on the competitive advantage. Its products are famous with value
cost, quality, durability, and reliability and environmentally safe which gives it the strength
throughout Europe market. Because of these, it is no doubt why Toyota is a world leading
company with a strong brand position in the automotive industry globally, with a large number
worldwide in the car sales. They have a strong financial backbone, strong distribution networks
which helps Toyota to improve their sales and market positions around the world.

PEÑAMORA, MHELLODY A.
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