Professional Documents
Culture Documents
THREATS
The automotive industry is subject to various
governmental regulations
Increasing competition in the worldwide automotive
market
Toyota may be adversely affected by natural disasters
DECISION CRITERIA AND
ALTERNATIVE SOLUTIONS
1. Initiative to produce more "green
cars"
Advantages
Disadvantages
Much more expensive
Maintenance is difficult
Less Power
2. Toyota can operate with very low
inventory levels by using just-in-time
production.
Advantages
Production runs remain short
Reduces costs by eliminating warehouse storage needs
Companies spend less money on raw materials
Disadvantage
Disruptions in the supply chain
3. Application of new strategy
Toyota should setup a small team to research and
design the fixes for the issue. Team should include
engineers, who have helped previously in deigning
various models at Toyota and the suppliers. Suppliers
should work closely with the team so that they are
aware of the processes to follow while deigning
autoparts. The company should ensure exhaustive test
for the fixes before releasing it to consumer market.
Advantage
It helps the Toyota overcome the recall crisis,
restore its brand image and recover losses
Disadvantage
It can be costly
Employees cannot be easily adjust with their new
workforce
RECOMMENDED SOLUTION, IMPLEMENTATION AND
JUSTIFICATION