Concept of International Marketing:

It is concerned with the micro aspects of a market and takes the

company as a unit of analysis. The purpose is to find out as to why and how a
product succeeds or fails in a foreign country and how marketing efforts influence
the results of international marketing.

Definitions of International Marketing

 International Marketing is the performance of business activities that
directs the flow of goods and services to consumers or users in more than
one nation. -Cateora

 It is the performance of business activities designed to plan, price, and

promote &direct the flow of a company’s goods & services to consumers or
users in more than one nation for a profit. -Cateora &Graham

 International Marketing is the multi-national process of planning and

executing the conception, prices, promotion and distribution of ideal goods
and services to create exchanges that satisfy the individual and
organizational objectives.

American Marketing Association

 The process of planning and conducting transactions across national
borders to create exchanges that satisfy the objectives of individuals and
organizations.

 International Marketing can be defined as exchange of goods and services

between different national markets involving buyers and sellers.

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Five Steps of the International Marketing Process :

Analyzing Marketing Opportunities

Selection of Target Markets

Offers to the Potential Customers

Developing the International Marketing Mix

Proper Implementation Of Marketing Programs

1. Analysing Marketing Opportunity

Analysing international marketing opportunities to identify unfulfilled or under

fulfilled needs that a marketer may satisfy through its products or services. This
analysis can be done through information seeking and analysis or through market
research. A marketer may have a product or service concept developed first and
looks for the needs in the market that can be satisfied by these products or
services. The marketer may also first identify unfulfilled or under fulfilled needs in
the market and then develop a suitable product or service offer to satisfy these
identified needs.

2. Selection of Target Market

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Once the marketer has identified the potential opportunities in the first step now
is the time to select the groups of potential international customers (target
markets) to whom to sell the products or services. This step also involves
identifying the potential buyers, demand measurement & forecasting, market
segmentation, market targeting & market positioning. Segmentation involved
identifying groups of potential customers from the total potential market that are
homogeneous on certain aspects of identity and behaviour and are
heterogeneous on the same aspects from others in the target population. This
step also requires the marketers to decide what key benefits in a product or
service to offer to the selected target-customers and on what aspects to
differentiate from the competition.
3. Offers to Potential Customers

Since a firm needs to offer best value to the potential customers to makes its
products and services more profitable compared with competitors, firms have to
adopt appropriate business and marketing strategies. Many activities are to be
undertaken in a firm by many people and in a number of departments to produce
and deliver final products and services to its customers, this requires aligning and
coordinating numerous activities and efforts. At the same time to achieve best
value for the buyer and bet profits for the firms, the firm needs to optimize all the
activities, efforts undertaken and resource utilization. This requires the firm to
adopt a coherent and appropriate logic or strategy to direct and control the
alignment, coordination and optimization of its business and marketing effort.

4. Developing the International Marketing Mix

The fourth step in the marketing process is developing the international

marketing mix, product, place, price & promotion. Marketing mix identifies four
key areas for developing a well-coordinated marketing strategy. To create a
strong marketing impact a firm needs to develop appropriate programs in these
four key areas and also need to ensure that all these four aspects of a firms
marketing program are well coordinated and in conformity with each other to
give a clear image to the target market of the firm’s brands and its products.

5. Proper Implementation of Marketing Program

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Developing a good marketing program is not good enough for success. A firm also
needs to manage the international marketing effort properly. Quite often firms
fail not because they did not have a viable marketing program, but that they
failed in properly implementing their well-designed plans. Firms also need proper
analysis, planning, implementation and control of their marketing programs.

Toyota Motor Corporation

The company was founded by Kiichiro Toyoda in 1937 as a

spinoff from his father's company Toyoda Industries to create
automobiles. Toyota Motor Corporation when incorporated has many strengths
being one of the industry leaders in the automotive industry. Toyota has three
major brands underneath the company umbrella; Toyota, Lexus, and Scion. By
having these three distinct brands, it lets the company reach many sectors of the
globe in a choice of vehicle for customers. They produce their vehicles and target
specific global regions. Toyota has traditionally also been the leader in Total
Quality Management or TQM. The belief that no process could ever be declared
perfect, and that therefore there was always room for improvement was
introduced by Toyota Sakichi (Financial Times). This brought about the Japanese
word, Kaizen meaning continuous improvement. By using the Kaizen theory of
continuous improvement, Japan caught up the U.S. auto makers during the
1980's. Toyota began with an A1 prototype passenger car in 1935 in Japan,
opened its U.S. operations in 1957, and became the number one carmaker in the
world in 2007.
Toyota Motor Corporation is a multinational company that produces
cars,trucks, buses and robots, with headquarters in Toyota City, Japan. Toyota is
the largest carmanufacturer in Asia and second largest producer. Toyota is one of
the three major Asian car manufacturers competing U.S.producers on the world
market, the other two are Nissan Motors and Honda Motor. Alsothe company
provides financial services through its subsidiary, Toyota Financial Services,and
works in other fields.

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Toyota’s Global Vision

“Toyota will lead the way to future of mobility, enriching lives around the world
with the safestand the most responsible ways of moving people.”
“Through our commitment to quality, and respect to the planet, we aim to exceed
expectations and be rewarded with a smile.”
“We will meet our challenging goals by engaging the talents and passion of
people, who believethere is always a better way.”

The Statement gives voice to who they are as a global enterprise, the values they
embody, and the good that they are striving to accomplish. Designed to inspire all
Team Members to even greater things, the Statement emphasizes Toyota's
commitment to quality, innovation and respect for the planet. At its heart is this
signature statement: “We aim to exceed expectations and be rewarded with a
smile.”
One aspect of the vision is “respect to the planet” The process for developing an
Environment Action Process begins with the parent company in Japan, Toyota
Motor Corporation (TMC). Every five years, TMC develops a global five-year
environmental action plan (EAP).

Toyota’s Mission

“To provide safe & sound journey”. Toyota is developing various new
technologies from the perspective of energy saving and diversifying energy
sources. Environment has been first and most important issue in priorities of
Toyota and working toward creating a prosperous society and clean world.”
“Create vehicles that are popular with consumers.”

International Marketing Strategy of Toyata

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As an international corporation and Global Fortune 500 company currently ranked
fifth in the world for revenues in 2008, there is no doubt that Toyota has seen
much success in its global strategies. The company’s ability to execute its global
agenda is clearlyclearl evident when examining the distribution channels,
marketing, production, and supply chain aspects of Toyota. Kaizen (continuous
improvement), and the Toyota Production System (TPS) are the essential pieces
and the heart of the company’s global strategy. By using the concept of kaizen,
the company is always thinking of new strategies and methods of improvement,
no matter what area the improvement can be made. TPS on the other hand acts
as a form of linkage between the critical aspects of the global automaker as it
creates and manages the supply chain, distribution channels, inventory
management, planning methods, and production capabilities. Kaizen and Toyota
Production Systems have been two successful strategies that have led Toyota to
dominance in the global automobile manufacturing market.
Toyota has grown to a large multinational corporation from where it started and
expanded to different worldwide markets and countries. It displaced GM and
became the world's largest automobile maker for the year 2008. It held the title
of the most profitable automobile maker (US$11 billion in 2006) along with
increasing sales in, among other countries, the United States. The world
headquarters of Toyota are located in its home country in Toyota City, Japan. Its
subsidiary, Toyota Financial Services sells financing and participates in other lines
of business. Toyota brands include Scion and Lexus and the corporation is part of
the Toyota Group. Toyota also owns 51% of Daihatsu, and 16.7% of Fuji Heavy
Industries, which manufactures Subaru vehicles. They also acquired 5.9% of Isuzu
Motors Ltd. on November 7, 2006 and will be introducing Isuzu diesel technology
into their products.
Toyota has introduced new technologies including one of the first mass-produced
hybrid gasoline-electric vehicles, of which it says it has sold 2 million globally as of
2010,Advanced Parking Guidance System (automatic parking), a four-speed
electronically controlled automatic with buttons for power and economy shifting,
and an eight-speed automatic transmission. Toyota, and Toyota-produced Lexus
and Scion automobiles, consistently rank near the top in certain quality and

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reliability surveys, primarily J.D. Power and Consumer Reportsalthough they led in
automobile recalls for the first time in 2009.
In 2005, Toyota, combined with its half-owned subsidiary Daihatsu
Motor Company, produced 8.54 million vehicles, about 500,000 fewer than the
number produced by GM that year. Toyota has a large market share in the United
States, but a small market share in Europe. It’s also sells vehicles in Africa and is a
market leader in Australia. Due to its Daihatsu subsidiary it has significant market
shares in several fast-growing South east Asian countries. According to the 2008
Fortune Global 500, Toyota is the fifth largest company in the world. Since the
recession of 2001, it has gained market share in the United States. Toyota's
market share struggles in Europe where its Lexus brand has three tenths of one %
market share, compared to nearly two % market share as the US luxury segment
leader.
In the first three months of 2007, Toyota together with its half-owned
subsidiary Daihatsu reported number one sales of 2.348 million units. Toyota's
brand sales had risen 9.2% largely on demand for Corolla and Camry sedans. The
difference in performance was largely attributed to surging demand for fuel-
efficient vehicles. In November 2006, Toyota Motor Manufacturing Texas added a
facility in San Antonio. Toyota has experienced quality problems and was
reprimanded by the government in Japan for its recall practices.In 2007, Toyota
maintained over 16% of the US market share and was listed second only to GM in
terms of volume. Toyota Century Royal is the official state car of the Japanese
imperial family, namely for the current Emperor of Japan.

Toyota was hit by the global financial crisis of 2008 as it was forced in
December 2008 to forecast its first annual loss in 70 years.In January 2009 it
announced the closure of all of its Japanese plants for 11 days to reduce output
and stocks of unsold vehicles. Akio Toyoda became the new president and CEO of
the company on June 23, 2009 by replacing Katsuaki Watanabe who became the
new vice chairman by replacing Katsuhiro Nakagawa. Toyota has factories in most
parts of the world, manufacturing or assembling vehicles for local markets. Toyota
has manufacturing or assembly plants in Japan, Australia, India, Sri Lanka, Canada,
Indonesia, Poland, South Africa, Turkey, Colombia, the United Kingdom, the
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United States, France, Brazil, Portugal, and more recently, Argentina, Czech
Republic, Mexico, Malaysia, Thailand, Pakistan, Egypt, China, Vietnam, Venezuela,
the Philippines, and Russia. Toyota's net revenue by geographical regions for the
year ended March 31, 2007.

Geographic region Total sales ( Yen in millions)

Japan 8,152,884
North America 8,771,495
Europe 3,346,013
Asia 1,969,957
Others 1,707,742

In 2002, Toyota initiated the "Innovative International Multi-purpose vehicle"

project (IMV) to optimize global manufacturing and supply systems for pickup
trucks and multipurpose vehicles, and to satisfy market demand in more than 140
countries worldwide. IMV called for diesel engines to be made in Thailand,
gasoline engines in Indonesia and manual transmissions in India and the
Philippines, for supply to the countries charged with vehicle production. For
vehicle assembly, Toyota would use plants in Thailand, Indonesia, Argentina and
South Africa. These four main IMV production and export bases supply Asia,
Europe, Africa, Oceania, Latin America and the Middle East with three IMV
vehicles: The Toyota Hilux (Virgo), the Fortuner, and the Toyota Innova.
Strategies used by Toyota in order to get success on selected markets to develop
business and to impose on these markets are strategies most, created by
Japanesespecialists. The strategy that generally based both Toyota company and
most Japanesecompanies is KAIZEN strategy which means continuous
improvement and the impact that ithas on the level of product quality. ”KAIZEN”
is an integrative strategy, which means across-functional strategy that appoints
the gradual improvement, management and continuousbusiness activities and
the parameters of quality, productivity and competitiveness, withdirect
involvement of all staff.The product strategy of Toyota is based on high quality, on
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developing new innovative technologies, focusing on further research, creativity,
but also hard work.Toyota is a world leader in research and development of
advanced automotive technologies. Toyota develops intelligent responses to the
challenges of the automotive industry today, while assuming responsibility for
future generations.Regarding the problem of pollutant emissions, Toyota explores
simultaneously avariety of solutions for designing less polluting vehicles as well.
Toyota has committed todevelop hybrid systems as a basic factor in
manufacturing clean technology cars, combining different sources of power. It has
made significant progress in designing engines that use alternative energy
sources. One of the most promising approach is combining two differentsources
of energy in a single system with the potential to use both. This solution is known
as hybrid technology and is the most promising way to achieve Toyota’s green
machine.Search for innovative solutions is based on new technological concepts
of this company. Unconventional ideas need a way of expression, and future
technologies has to be tested in terms of daily life. Therefore, Toyota develops
concepts such as the Fine-Nengine powered by a fuel cell or CS&S roadster
powered by a Hybrid Synergy Drivesystem.The fabrication technology of engines
is one of the most valuable property ofToyota. Toyota’s performance range of
engines and advanced design reflects the high standards set by engineers.
Toyota’s engines are designed for comfort and performance,while constantly
aiming to reduce emissions and optimal fuel consumption. So, today,Toyota may
offer its clients the following advantages: gasoline engines with
advancedtechnology, variable rate control valves VV-i and VVT-i, D-4D common
rail turbo charged engine - now available in D-CAT variant to equip Avensis,
unique hybrid propulsionsystem Synergy Drive.Safety is a priority for Toyota.
Advanced steering systems, brakes, suspension andtraction control help keep
control of the car. Each is designed with a Toyota extreme carein terms of safety,
using advanced computer simulations and crash tests. Body and chassisare
designed to absorb energy from impact and provide a maximum occupant
protection,besides SRS (Supplementary Restraint System) airbags protection
system they used. Toyota made over time many innovations and improvement in
active and passive safety. From the first active suspension system in the world in
1991, to the marketing of Stability Control System Vehicle in 1995, and to the first
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curtain air bag launched in 1998, Toyota has aimed to improve the security and
technology benefits that it offers to its clients. It can be said that Toyota’s main
strategy is the total control of the quality using the, zero defects”, continuous
improvement of its products. Toyota makes independent studies on consumer
needs, getting the vote ofconfidence on their part. Also, this is reinforced by the
exceptional results of Toyota vehicles in Euro NCAP safety tests. Consumers trust
Toyota cars and feel safe in thei rwheels. This trust is the result of the highest
standards of quality which Toyota designsand produces its cars.The Japanese
have turned their attention to markets with significant growth potential. In
Europe car manufacturers have invested substantial amounts to build production
plants, research centres and design workshops. Toyota designers from three
continents are exploring ideas, visions and desires inorder to design advanced
machines and new technologies bringing more quality of life. Toyota opened in
1954 in Tokyo, Japan, Head Office Technical Centre, which was the centre of
design activities, planning, designing, and production of prototypes andevaluation
of vehicles. It was responsible for all fields, including planning, designing and
evaluating vehicles. In addition, the centre is also in charge of security
technologies, energy conservation and environmental protection.In 1973, in
Newport Beach, California Toyota opened the design centre CaltyDesign
Research, Inc... Toyota Europe Design Development is opened in 2000 and is
located in Nice,France. The company created the European Laboratory for Design
ED for a better understanding of local influences and preferences of current and
potential clients. Here, the team has developed successful models Yaris, Corolla,
Corolla Verso, Avensis and Land Cruiser.The company experts were quickly realize
that local production of vehicles and exporting them to different countries is not
as profitable business as their installation even in areas of marketing. Very rapid
conquest of significant market share in the EU is a direct result of rapidadaptation
to the specifics of each area and complying with regulations without trying
toavoid or modify them (a characteristic of U.S. firms).Also, a major component in
Toyota’s strategy is to build more research and design centres in the proximity of
production facilities. These bring specific items of the areasregarding the design
and amenities. Unexpected success of the Japanese led to the exportation of
vehicles produced in Europe to other markets of the world.This is the strategy
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that Toyota has adopted to penetrate foreign markets worldwide. ”Think global,
act local” is the slogan that guides the company on the global market. Toyota has
adopted the strategy of direct investments on the growing and stable markets, as
we have demonstrated, and it fully managed.

Toyota European Market

Japanese investors have turned to Europe, a market which they consider vital not
only for their products, but also ambitions to become leading global player.
Toyota Motor, the second global car manufacturer, was the one who initiated this
trend. The auto manufactures has eight factories in the “old continent”, in UK,
France, Poland, Turkey and the Czech Republic, with a total of 55,000 employees,
including a distribution network and a research and a development centre in
Zavetem, Belgium. Any location it would have operations, the company brings
annual profits of million Euros from contracts made. It brings an important chain
in research and development related to design and safety standards. In Europe in
2003, the Japanese company under three brands owned Toyota, Daihatsu and
Hino, recorded a 4.4% market share. In 2004 there were 17 production units of
Japanese automotive facilities in the European Union, they produce 1.3 million
vehicles and 14 research and development centres. It is estimated that these
investments have created 200,000 new jobs. The European market is too
important to be ignored, said the Japanese’s, it is still a strong market that rivals
many companies for and it has a unique industrial base. Japanese companies have
started a series of investments in Russia, where domestic market is growing. In
June 2005, Toyota began building a plant near St. Petersburg that will produce,
starting with the 2007 Camry models. While the UK benefits from about half of
total Japanese investment, Japanese companies begin to move eastward
manufacturing facilities to take advantage of lower wage costs and to be closer by
the more flexible markets of new EU’s members, that some of them will adopt
the euro in a few years. They want to consolidate their positions on the stable,
secure and growing markets, but competitive, too. The European market is one of
them. On the European market Toyota Motor Corporation recorded increases in
sales from year to year. Its success owes to adapt its supply to the needs and

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requirements of the Europeans, based on total quality strategy, innovation and
continuous competitive spirit.

Toyota US Market
Business activities in U.S. of Japanese automotive and components companies are
highly profitable. If in 1980 the Asian brands cars were imported 100%, in 1993,
the number of factories located on American soil was 11. Descent into force of
the Japanese producers in the U.S. is seen as a second Pearl Harbour. Japanese
brand market share increased from 15.3% in 1999 to 20.6% in 2004 and the trend
is upward, considering that in 2006 their number of plants is 23. As in Europe, the
Japanese have invested heavily in U.S. production sites. GM, Ford and Daimler
Chrysler companies have been overcome by the Japanese, especially because of
their high adaptability, but also of the lack of a culture of “domestic product”
among American citizens. In 2007, Toyota surpassed Ford in U.S. sales, standing
on second place, after GM. At the end of 2007 Toyota manages to become a
world leader in car sales surpassing giant General Motors. Japanese manufacturer
has managed to manufacture and sell 9,51 million units compared with 9,26
million units sold by GM. GM leader of the auto sector for 8 decades, had to
settle, this time, with the second position after Toyota. The reason that Toyota
becomes the world leader was undeniable the interest that US show to the fuel-
efficient vehicles which bear the unmistakable signature of Japanese. In 2008,
Toyota sold more vehicles than GM, 4.72 million vehicles for the Japanese group
compared with 4.67 million vehicles of GM, the leader of the American auto
industry over the past 76 years. For 2009 Toyota proposed to sell 10.4 million
vehicles, a figure that would set a new record in the automotive industry, the
former dating from 1978 when GM sold 9.55 million vehicles in the whole world.
However, global economic crisis has hit everyone, including Toyota. The race
between GM and Toyota is not only about the number of vehicles sold. In terms
of profitability, GM is significantly behind those of Toyota, which also invests
heavily in research and development of new models. On costs and profits of the
auto industry, for each vehicle produced in North America in 2006, GM posted a
profit of $ 2,123 less than Toyota did. Japanese car manufacturer is the most

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profitable car manufacturer in the world, its profit per vehicle increasing from U.S.
$ 1.175 in 2005 to $ 1,977 in 2006. Although the European market is steady for
Toyota Company, the market where they sell most Toyota cars remains the North
American.

Toyota Australian Market

On the Australian market, in early 2010, the Toyota company has started
production of the Toyota Camry Hybrid car. This is a model powered by electricity
and gas and it will be produced around 10.000 units annually at the Altoona plant
in south-eastern Australia. Toyota became the first manufacturer which makes
mass production of cars powered by a hybrid system, starting with the Prius more
than ten years ago. Toyota is counting on increasing demand for such vehicles
with hybrid propulsion in terms of increasing fuel prices and the sharp rise in
world temperatures.

Toyota Other Market

Toyota made another step towards conquering global automotive market. It
expands on the markets of Russia and China, the main weapons are low-cost cars.
Toyota’s plan is to build three new factories that produce over 450,000 units
annually in order to meet market demand in India and China. Till 2010 Japanese
giant plans to hold 15% of the global auto market. In 2010 Toyota plans to sell
about 73 million vehicles, up 12% of sales in the last five years. Japan plans
envisage the expansion on the emerging markets like Brazil, Russia, India and
China. Toyota is counting on the elasticity of these markets, which, in their
opinion, is the key to success for increasing their sales significantly. The main
objective is the Chinese market. China currently registered the highest rate of
economic growth and the automotive segment is a very large expansion, which
makes Toyota to hurry to take over the control of this market. The most
spectacular evolution of the sales took place in China, the most dynamic region
for Toyota in 2006. In 2008 Toyota sold in China 62% more cars than in 2006 (in
2006 the growth rate for this region was 68%). Middle East ranked second place
among the regions with the largest increasing sales of Toyota cars. Toyota Motor

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Corp. will invest 68 billion yen (680 million dollars) in the second production plant
in India. The new plant will produce the Corolla model. At the same location will
be produced another new model that will be launched in 2010. It will cost around
8000 dollars and the company says that it is aimed at low-cost segment.

Market Segmentation Strategy

How do Toyota Choose its Customers “Target Market”?

The segmentation, targeting and positioning of Toyota cars is based on the "care"
of its users and it can be clearly seen in its variety of offers and product attributes.
Currently Toyota is focusing on two segmentations:

• Demographic Segmentation
• Psychographic Segmentation

In the first segment of Demographic, Toyota has targeted the family size and in
this segment people of Upper Middle High Income group is kept in view by
Toyota. Land Cruiser, Parado, Camry is some major cars of this segment which are
designed for those who have the willpower and buying power to purchase these
cars. In the second segment of Psychographic, Toyota has targeted the family size
and in this segment people of the high class, a high income group who have
sporty attitude, is kept in view by Toyota such as Toyota Altis Sport model and
Toyota Fortuner. These sports cars that helps in improving and exhilarating their
sense and passion for sports. SUV , MUV and Sedan are its examples.

Positioning Strategy

Toyota’s uses both differentiation and low cost as generic strategies to

try and gain a competitive advantage over their competitors in the automotive
industry. The market scope that Toyota uses is a broad one that encompasses
nearly every type of customer that is in the market to purchase an automobile.
Toyota is able to target such a large market because they have something for
everyone. Toyota has four wheel drive trucks and SUVs for the outdoor types or
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those who live in areas that face severe weather conditions, hybrid models like
the Prius for the eco-friendly customers that are interested in saving the
environment, along with the standard cars for general, everyday use.
Additionally, Toyota provides vehicles for all price ranges. From the low price
Toyota Corolla line of cars to the high priced luxury line of cars and SUVs with
Lexus, Toyota has something for everyone. Figure demonstrates brand positioning
from the perspective of a consumer looking for high quality; fuel-efficient vehicles
(please note that these positions vary depending on the consumer). Toyota will
increase sales by positioning their low cost, hi-tech, energy saving cars near the
green circle on this perceptual map. By highlighting their most recent
technological innovations as a point of difference, Toyota can overthrow the
Honda Mobilio, their rival model.

Toyota’s Operations Strategic Decision Areas

1. Design of Goods and Services: Toyota addresses this strategic decision area
of operations management through technological advancement and quality. The
company uses its R&D investments to ensure advanced features in its products.
Toyota also integrates dealership personnel needs in designing aftersales services.
2. Quality Management: To maximize quality, the company uses its Toyota
Production System (TPS). Quality is one of the key factors in TPS. Also, the
firm addresses this strategic decision area of operations management through
continuous improvement, which is covered in The Toyota Way, a set of
management principles.
3. Process and Capacity Design: For this strategic decision area of operations
management, Toyota uses lean manufacturing, which is also embodied in TPS.
The company emphasizes waste minimization to maximize process efficiency and
capacity utilization. Thus, Toyota supports business efficiency and cost-
effectiveness in its process and capacity design.
4. Location Strategy: Toyota uses global, regional and local location strategies.
For example, the company has localized manufacturing plants in the United
States, China and Thailand, as well as official dealerships in all markets except
Mongolia and some countries in the Middle East and Africa. Thus, Toyota
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addresses this strategic decision area of operations management through a mixed
set of strategies.
5. Layout Design and Strategy: Layout design in Toyota’s manufacturing plants
highlights the application of lean manufacturing principles. In this strategic
decision area of operations management, the company aims for maximum
efficiency of workflow. On the other hand, Toyota dealership layout design
satisfies the company’s standards but also includes decisions from the dealers.
6. Job Design and Human Resources: The company applies The Toyota Way
and TPS for this strategic decision area of operations management. The firm
emphasizes respect for all people in The Toyota Way, and this is integrated in HR
programs and policies. Also, Toyota has training programs based on TPS to ensure
lean manufacturing practice.
7. Supply Chain Management: Toyota uses lean manufacturing for supply chain
management. In this strategic decision area of operations management, the
company uses automation systems for real-time adjustments in supply chain
activity. In this way, Toyota minimizes the bullwhip effect in its supply chain.
8. Inventory Management: In addressing this strategic decision area of
operations management, Toyota minimizes inventory levels through just-in-time
inventory management. The aim is to minimize inventory size and its
corresponding cost. This inventory management approach is covered in the
Toyota Production System.
9. Scheduling: Toyota follows lean manufacturing principles in its scheduling.
The company’s goal for this strategic decision area of operations management is
to minimize operating costs. Cost-minimization is maintained through HR and
resource scheduling that changes according to market conditions.
10. Maintenance: For decades, Toyota developed a network of strategically
located facilities to support its global business. The company also has a global HR
network that supports flexibility and business resilience. Thus, in this strategic
decision area of operations management, Toyota uses its global business reach to
ensure optimal and stable productivity.

Reference:

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 https://www.wikipedia.com

 https://www.researchgate.net

 https://www.scribd.com

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