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    Read The Above Given Case Study and Answer The Following Questions

    Uploaded by

    Anudeep Seemakurthi
    The document discusses a case study about Toyota Australia's profitability. It poses three questions: 1. Factors affecting profitability include production methods, which Toyota can control using Just-In-Time and Kaizen strategies to improve efficiency. 2. Toyota operates in a highly competitive market with many imported brands. 3. Toyota is not operating at optimal scale, as production is below capacity. It should expand production while waiting for demand and costs to improve.

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    Read The Above Given Case Study and Answer The Following Questions

    Uploaded by

    Anudeep Seemakurthi
    585 views3 pages
    The document discusses a case study about Toyota Australia's profitability. It poses three questions: 1. Factors affecting profitability include production methods, which Toyota can control using Just-In-Time and Kaizen strategies to improve efficiency. 2. Toyota operates in a highly competitive market with many imported brands. 3. Toyota is not operating at optimal scale, as production is below capacity. It should expand production while waiting for demand and costs to improve.

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    Toyota Case answer

    Original Title

    Toyota Case

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    The document discusses a case study about Toyota Australia's profitability. It poses three questions: 1. Factors affecting profitability include production methods, which Toyota can control using Just-In-Time and Kaizen strategies to improve efficiency. 2. Toyota operates in a highly competitive market with many imported brands. 3. Toyota is not operating at optimal scale, as production is below capacity. It should expand production while waiting for demand and costs to improve.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    585 views3 pages

    Read The Above Given Case Study and Answer The Following Questions

    Uploaded by

    Anudeep Seemakurthi
    The document discusses a case study about Toyota Australia's profitability. It poses three questions: 1. Factors affecting profitability include production methods, which Toyota can control using Just-In-Time and Kaizen strategies to improve efficiency. 2. Toyota operates in a highly competitive market with many imported brands. 3. Toyota is not operating at optimal scale, as production is below capacity. It should expand production while waiting for demand and costs to improve.

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    © All Rights Reserved
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    of 3

    Read the above given case study and answer the following questions

    1. What factors are affecting the profitability of Toyota Australia? Which of these factors can the company control to
    improve profitability? What strategy would you suggest to improve the profitability? ( 10 Marks)
    2. What is the type of market structure Toyota Australia operates? What challenges does this market structure pose for
    the company?( 10 Marks)
    3. Is Toyota Australia operating at the optimum scale of operation? Should Toyota expand or contract its scale of
    operation? What are the associated implications?What should Toyota do? Should it wait for demand and cost
    conditions to improve, or should it exit the market?(10 Marks)

    (Plagiarism or copying from somebody is strictly prohibited)


    Answer to question 1.
    What strategy would you suggest to improve the profitability?
    Strategy to improve the profitability is to follow the method stated below
    a) Just in time
    b) Kaizen

    “just in time” approach to production, which allowed the entire production process to be regulated by the natural laws of
    supply and demand. Customer demand stimulated production of a vehicle, which, in turn, stimulated production and delivery
    of the necessary parts. The just in time approach resulted in the right parts and materials manufactured and provided in the
    exact amount and place where they were needed. Along with the just in time approach

    followed “Kaizen,” the practice represented by employees making day-to-day improvements in their
    working practices and equipment. “Jidoka,” automation with a human touch, was another process adopted by Toyota.
    Such approaches to the domestic manufacturing process strengthened Toyota’s brand image by contributing to
    Australian society in terms of value-addition and employment, and good quality products, and supported its position as
    the market leader.
    Answer to question 2.

    Australia’s domestic market for cars was very thin. Australia, with a population of 23.1 million, representing 0.33 per cent of
    total world population in 2013, represented a small market for
    Low-tariff barriers and highly open trading environment since mid-1980s provided consumers with easy access to imported
    cars. Approximately 65 brands and 365 models — comprising passenger vehicles, sport utility vehicles and light commercial
    vehicles — competed for Australia’s total market of approximately 1.1 million new car sales per year.
    The Australian automotive market both highly competitive and the most fragmented in the world.

    Answer to question 3.
    Since Toyota, the largest Australian manufacturer, with annual installed capacity of 150,000 units produced just more than
    100,000 vehicles in 2012 . There Toyota is not operating at the optimum scale of operation.
    The associated implications were that its Average cost of operations become very high.
    Toyota should expand its scale of operation from 101000 upto 150000.
    It should wait for demand and cost conditions to improve.

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