Marketing Strategies 4050 Research Paper Example | Topics and Well Written Essays - 2000 words

Marketing Strategies 4050 - Research Paper Example Our Java Cafà © would be focusing on customers who are environmentally conscious of their actions. While coffee is enjoyed by people of all ages, it is important to develop a primary target market so that we are able to develop a marketing strategy targeted towards this specific market. Our primary target market includes: Students: Students form a big part of the target market for Java Cafà ©. The Auraria Campus located in downtown Denver accommodates more than 40,000 students and thus could be a good potential market for our Java Cafà ©. Students have a hectic daily routine from pressures of work as well as having to survive on limited budget. Most students cannot afford coffee machines for themselves and rely on coffee shops for their daily cups of coffee. However, since they are on a limited budget, they cannot afford to buy from Starbuck or Mc Cafà ©, and thus they look for cheaper options that do not compromise on the quality of services. As our Java Cafà © offers Wi-Fi, it would be a further attraction for the students since this generation is addicted to the internet and travels with its personal gadgets such as cell phones, laptops etc. ‘For them, technology is not a thing to be considered. It is a way of life’1. Furthermore, students usually have a common hangout place where they can meet up with their friends and peers. In this case, word-of-mouth promotion can help improve sales for Java Cafà ©. Young Professionals: Young Professionals are another target market for Java Cafà ©. Young Professionals in Denver make up 64 percent of the total population and Denver has the highest number of college graduates. Professionals from surrounding counties also visit lower downtown during their pre-working, lunch time and after working hours. These college graduates and young professionals are also busy people trying to make a position in the corporate world. They usually visit the coffee

100 Words Essay Examples Essay Example for Free

100 Words Essay Examples Essay Essay about Red Nose Day The purpose is to entertain and change lives in the UK and Africa. The money spent to aid young who live on the street and protect people living with domestic abuse. In Africa for vaccines etc. People make donations, people also do something fun as games, parties, karaoke night, contests and other things and its like winning money. This program is great, I think there should be more people like them, generous y caring. This type of action I love. It is best to help and if it is fun and with love is better. 99 words Her Majesty The Queen Buckingham Palace London SW1A 1AA Her Majesty the Queen, My name is Leslie Monserrat Martinez Hernandez, I have 16 years old, Im Mexican and I am student. Im from the state of Hidalgo Mexico but I live in Teotihuacan City of Gods Mexico, I live with my family, my dad, my mom and two younger brothers. Im going to talk about the beautiful place where I live. Teotihuacan is an archaeological site as are the beautiful Pyramids of the Sun and Moon and the Teotihuacan was one of the most important and ancient cultures of Mexico. The food is very tasty, very friendly people and is a quiet, well this Animal Kingdom a great zoo where the animals are free. Teotihuacan is a charming town. I say goodbye without thanking your attention. Greetings and kisses from Mexico. Essay about The British Museum The museum is free, open daily 10.00-17.30 Friday until 20.30. In this museum one of the most important objects of the museum is the Cyrus Cylinder. This museum is very interesting and very important for the United Kingdom You can reach the museum by car, bicycle, subway and bus. The purpose of the museum is to share his collection with the world. People can donate items and museum receives them in order to make the collection bigger. I imagine this museum is very cute and very interesting because it has a variety of information and objects with great meaning. 99 words Essay about Poppy Day Remembrance Day also known as Poppy Day, because it is traditional to wear a poppy artificial. Sold by the Royal British Legion a group dedicated to helping veterans. It is a remembrance of those who died in the war so that people were free, some people prefer to wear a poppy on the left side above his heart. The first day of Poppy Day was in Britain on November 11th, 1921. This commemoration is very beautiful and interesting because it is a nice touch to remind the people who gave their lives in the war. It is an example of love, respect and solidarity. 100 words Essay about St. Patrick’s Day St. Patricks Day is celebrated annually on March 17 to commemorate the death of St. Patrick, patron saint of Ireland. It is a national holiday in Ireland. Many people celebrate the festival by dressing green with Irish food, drink and parades. This festival demonstrates the creativity, professionalism and sophistication of Ireland. The origin of this holiday is in commemoration of the arrival of Christianity to Ireland, one of the traditions of St. Patricks shamrock. This custom is very funny because I think people are going green and all the country of going green and other things that represent this special day. 100 words Essay about Millennium Stadium Millennium Stadium is the national stadium of Wales, where rugby and soccer practice. It is located in the city of Cardiff, capital of Wales, in the UK. There may be 74,500 people. The total construction cost of the stadium was  £ 121 million and was built by Laing in 1999. Opened in June 1999, also the second largest stadium in the world. Its a great stadium, cool and important because it is the largest stadium second the world but to me the history of this stadium did not like, I like football but it is important for me to know him. 100 words

Impact of Internet Addiction on Social Skills

Impact of Internet Addiction on Social Skills The world continues to progress all the time with the rapid development of new technologies. Inventions like telephone, television, computers, and Internet being one of  the most recent in a series of technological developments have proven that people are no  longer limited by geographical boundaries. Almost everyone will agree that Internet is  the largest and most flexible source of information in the world today. It is widely used  by the business world for conducting their daily work or research and by individuals for  communication, entertainment, learning and relaxing. However, apart from the  advantages there are some disadvantages of the excessive use. Internet has been  responsible for decreased family time, relationship problems, lower productivity in  employment, continuation of false information and the increasing of psychological  problems (Beard, 2005). The development of Internet is increasing worldwide and the  excessive use leads to Internet addic tion that became a common problem nowadays. The nature of the term addiction is difficult to define. Addiction has been referred  as an uncontrollable compulsive behavior that despite of the negative consequences it is a  repeated behavior. This behavior includes using more of the substances than intended;  having unsuccessful attempts to stop, and experiencing problems in their social and work  environment (Kring, Johnson, Davison, Neale, 2010). Internet addiction disorder was first seen in the U.S press in 1995, in an article  that was published in New York Times with the title The Lure and Addiction of Life On  line ». The author of the article, O Neill, stated that health professionals related excessive  Internet use to obsessive shopping, exercise, and gambling (Chack Leung, 2004). Goldberg (1996) presented the first definition for Internet addiction, describing it as a  behavioral addiction that took the criteria from substance dependence from the DSM-IV. Griffiths (2000) expanded the definition by stating that technological addictions are a  subset of behavioral addictions that include six components (salience, mood  modification, tolerance, withdrawal, conflict and relapse). Also Internet addiction might  be caused by many aspects of internet use like distant communication, the fact that there  is no face to face contact, and other online activities like chat rooms (Griffiths, 2000). A  second definition that was called Problematic Internet Use (PIU) took criteria from DSM-IV and was associated with pathological gambling (Young, 1996). The author stated that  in order for a person to be addicted he/she has to meet five of the eight criteria. Some of  these criteria are, obsession with internet, environmental problems, withdrawal when  reducing internet etc. Also according to Young, Problematic Internet Use could be more  related to impulse control disorder that substance dependence. The problem that arises  out o f these two definitions is that they neither exclude co-morbidity as an important  factor nor determine whether the time spent on the internet is related to their normal work  or to a pathological addiction. Both defitions support a pathological etiology that has no  theoretical base (Hall Parsons, 2001). By extending the definition of Young, Davis (2001) suggests that problematic  internet can be regarded as Specific Pathological Internet Use and Generalized  Pathological Internet Use. The first is using the internet to increase an addiction that has  occurred before (gambling), while the second is about the general use of internet  (searching, chatting). Another definition that was presented for internet addiction was  named Internet Behavior Dependence. This definition suggests that excessive Internet use  can cause problems to cognitive, behavioural, and emotional functioning in a generally  healthy person. The dependence that a person has on internet can been seen by the  following: deficient in satisfaction with all areas in his life, like school, work or home,  use of internet with less pleasure, feels worry when not using, failure in controlling the  use regardless of all the physical, psychological and social problems. No matter how  someone call it, Int ernet- related disorders are arising as a serious problem for which  people need understanding, help and change. The internet because of its rapid spread is reachable nowadays by almost  everyone and especially college students. They tend to be more vulnerable than others  because of the developmental stressors, like social relationships, and because internet can  be easily accessed. Many students use it nowadays for many purposes, like preparing  course works, search information, communicate, and entertain those selves (Ceyhan,  2008). Also online relationships differ from real relationships ». Through internet  anonymity is provided and anxiety is reduced because there are no face to face  interactions. The self- presentation of a person in an online activity may prevent him from  being judged for his appearance or personality style (Kandell, 1998). Therefore students  are more likely to develop problems with internet than others. Many studies have been  conducted using DSM- based criteria and showed higher rates in internet use among  college students than in gen eral population (Morahan- Martin Schumacher, 1999;  Yang, 2001). In the literature there is a great number of studies showing that Internet  addiction has been related to many variables apart from social skills such as gender and  internet expertise (Morahan-Martin Schumacher, 1997), age and grade level  (Johansson, 2004), online experiences and the amount of time spent online (Morahan-  Martin, 1999), depression, with increased levels of depression being associates with  internet addiction (Young, Rogers, 1998), and impulse control disorder (Shapira, 2003). Social skills are a fundamental factor in the development of the relationships. They include all the behaviours that a person should have in his/her interactions and  communication with other people (Teodoro, 2005). Caplan (2002) developed a theory  imploring deficient social skills. The author claimed that people who are depressive and  lonely tend to have a negative view towards their social skills. Another explanation can  be that people who tend to be low in social skills are attracted by some special features of  online communication. These features allow the person to adopt another self-presentation  that cannot be developed through face to face interaction. Through this, a person may  exaggerate and present himself different than he is in real life (Caplan, 2002). Thus, for  some people Internet is a place much easier and safe because of its anonymity and  because it requires less interpersonal communication. It is a place less stressful where  they can control their social skills better than having a face to face interaction (Shaw   Black, 2008). There have not been conducted a lot of studies until now that measure internet  addiction and social skills in college students. Most of the studies focused on excessive  internet use and how it affects the development of social skills in children and  adolescents (Harman, Hansen, Cochran, Lindsey, 2005). The research that has been  conducted focused in some specific aspects of social skills like shyness, loneliness, social  adjustment. There is a contradiction in the literature referring to these specific aspects of  social skills and internet addiction. Engelberg (2004) in his study about internet use,  social skills and social adjustment found out that individuals who use excessively internet  tend to be lonelier and have problems in their social adjustment in work and in their spare  time. On the other hand, another research found out that by talking online in chat rooms,  loneliness is reduced and social support is increased (Waestlund, Norlander, Archer,  2001). Also another study conducted by Morahan-Martin (2003) found out that lonely  people tend to use internet for emotional support and that their social behaviour is  increased by making online friends. In a study it was shown that shyness and locus of  control were associated with internet addiction. It was found that persons scored higher  levels of internet addiction tend to be shier and indicating more difficulties in their social  life. (Chack Leung, 2004). Most of the studies that have been conducted measured  some specific aspects of social skills that are most of them loneliness, shyness and social  adjustment and social comfort. There is a contradiction in the studies referring to  loneliness and social comfort, with studies indicating different results (Engelberg, 2004;  Waestlund et al., 2001). Due to this contradiction further research should be conducted to  measure whether these aspects of social skills are related in a negative or in a positi ve  way with the use of internet. The purpose of this study is to investigate the relationship  between compulsive internet use and four dimensions of social skills that are loneliness/depression, impulse control, social comfort and distraction. Methods Participants An approximately number of 70 undergraduate college students is going to  participate in the current study. Their age will range from 18 to 35 years  old. The study will be conducted in an English University in northern Greece and  students will be recruited from different departments, the psychology, computer and   business department. The measuring tools will be given in English since they know and  understand the language. Also participants will not be from the same ethnicity but from  different countries like Greece, Bulgaria, Romania, Albania, Serbia and Fyrom. Measures Online Cognition Scale (Davis, Flett, Besser, 2002). The OCS is a  multidimensional questionnaire that was designed to measure Problematic Internet Use. It  is consisted of 36-items that cover four subscales, six items measure loneliness/  depression, ten items measure diminished impulse control, distraction is measured by  seven items and social comfort by thirteen items. Respondents will rate in a seven-point  Likert scale with answers ranging from 1- strongly disagree, 4- neither agree/ nor  disagree to -7 strongly agree. Students will respond to statements such as: I feel safest  when I am on the internet; I use the Internet more than I ought to; I am less lonely  when I am online and I often use the Internet to avoid doing unpleasant things. In  order to avoid order effects the items of the online cognition scale were presented in a  random order. The author in order to establish the validity of the Online Cognition Scale  investigated the association betw een various cognitive and behavioural variables and the  OCS dimensions of problematic internet use. Item-total correlations were highly  significant, ranging from 0.47- 0.77 for social comfort, 0.49- 0.81 for loneliness/depression, 0.50-0.76 for diminished impulse control, and 0.55-0.80 for distraction. Compulsive Internet Use Scale (Meerkerk, Eijnden, Vermulst, Garretsen,  2009). The CIUS was designed to assess the severity of compulsive Internet use. It  includes 14 items and participants will respond in a five-point scale: 0, never; 1, seldom;  2, sometimes; 3, often; 4, very often. The questions included in the scale are like: How  often do you think about the Internet, even not online; How often do you go on the  Internet when you are feeling down. The author in order to test the validity of the test  used another test the online cognition scale. Pearson correlations were high and  significant between CIUS and OCS with p Procedure The sample will be obtained by college students randomly during class or break. Participants are going to fill in the three questionnaires individually with all the useful  instructions provided. They will have the chance to fill them right away or hand them  over later to secretary. Also with the questionnaires they will receive a consent form that  have to sign in order to show that they agree to participate in the study. Participants will  be encouraged to answer as honest as they can, but someone can be never sure about the  answers and if someone will feel offended or upset by a question. Participants will have  the right to withdraw anytime they do not want to continue for any reason, without  receiving any penalty. Confidentiality and anonymity were provided and explained that  the study is only for research. Also, the instructor will be there ready to answer any  question in case of any doubt. Design The design of the study is a correlation design that will measure the two variables,  Internet addiction and the level of social skills. Proposed Analysis Pearson correlation will be conducted for the data analysis that will investigate  the correlation between the severity of compulsive internet use and the level of social  skills.

Carribbean Mist :: essays research papers

Caribbean Mist Web Project Recommendation Report Overview This report provides Caribbean Mist Inc. Tanning Spa, with a well detailed recommendation for a web site that would cater to the company’s needs. In order to create a good web site and write a good report we need to have a general understanding of your needs. From our extensive research we can see that the main goal for the company’s web site is to attract more customers and provide customers with more information regarding your services. Both goals are addressed in the recommendations for the web site so that it will achieve its full potential. In this report we will analyze and contextualize our team’s field research so that we can give recommendations for a web site that meets the standards of Caribbean Mist. After looking over what we had gathered from our research we began to see what Caribbean Mist is looking for in this web site and what restrictions and standards you are forced to comply with. The report provides recommendations for advertising for the web site, web site design, where to host the web site, and the context on the web site. Each recommendation is well stated and provides descriptive steps or actions, supported by research, that the company must perform in order to fulfill the recommendation. Along with the description, we will provide a rationale on why the option we chose will best suit your needs. Lastly, each recommendation presents Caribbean Mist with a step by step procedure of what needs to be done and how long it will take. To assist Caribbean Mist with our recommendations, we have also i ncluded a cost analysis of each recommendation that is given so that you will know exactly how much each step will cost and how much money will be needed to get the project started. Analysis Our team executed a number of things to produce our recommendations. We did field research, an interview, and market research. Our field research consisted of an in-depth observation of Caribbean Mist while they were open for business. This gave us a better idea of what types of customers come into Caribbean Mist and how often. We also conducted an interview with the manager to get a better idea of what Caribbean Mist wants in a web site. We conducted market research by examining other tanning company web sites to see what is popular in the industry.

An Analysis of Toyota’s Strategic Procurement and Supply Chain Management

Purchasing & Materials Management| | Strategic Procurement & Supply Chain Management| Introduction The topic selected is (Strategic Procurement & Supply Chain Management). For this study, we have selected Toyota Motor Corporations as our company of choice. Toyota is without doubt the best in the world, with its many philosophies and principles on how to make the best out of the least; JIT, lean production and elimination of waste and the desire for continuous improvement are just a few ways how Toyota has become the best in the auto industry.Toyota as a name, a company, and as a brand has become synonymous with Quality. At the heart of its success, lie family values that have been passed down; a norm that has become the Organizational Culture of Toyota – The Quest for Excellence, and The Passion to Lead. Toyota’s achievement of excellence stems from implementing lean production, or which they refer to as ‘The Toyota Way’. The most visible product of Toyotaà ¢â‚¬â„¢s quest for excellence is its manufacturing philosophy, called the Toyota Production System (TPS).We have selected to apply this topic to Toyota, because to perfect their way of lean production, they work on it from the root; i. e. their suppliers, and purchasing strategy. Scope of Project Analyzing the strategies of Toyota, and how they implement it in their purchasing and procurement policy. Also, analyzing how Toyota selects it suppliers and what selection processes do they go through; and also conducting an analysis of Toyota’s supply chain and its supply chain management. Limitations This study was really difficult to attain, as personal interviews or nteractions with Toyota’s direct employees was beyond our budgets to conduct. This study is a result of hard work and extensive internet and textual or written research from more than ten websites and three books. Also, the study of Toyota was too large and very difficult to summarize into the limited requirem ents of this paper. Company Background The Toyota Motor Co. Ltd was first established in 1937 as a spin-off from Toyoda Automatic Loom Works, one of the world's leading manufacturers of weaving machinery. The Toyoda Automatic Loom Works was then headed by Japan's â€Å"King of Inventors† Sakichi Toyoda.The patent rights to one of his machines had been sold to Platt Brothers (UK) and provided the seed-money for the development and test-building of Toyota's first automobiles. August 2007 marked the 70th anniversary of TMC. The fledgling company founded by Kiichiro Toyoda, Sakichi's son, has since blossomed into the leader that it is today. In 1950 the company experienced its one and only strike. Labour and management emerged from this stoppage firmly committed to the principles of mutual trust and dependence, and that corporate philosophy still guides T0oyota’s growth today.Production systems were improved in the late 1950s, culminating in the establishment of the Ã¢â‚¬Ë œToyota Production System. ‘ It became known as TPS in 1970 but was established much earlier by Taiichi Ohno. Based on the principles of Jidoka, Just-in-time and Kaizen, the system is a major factor in the reduction of inventories and defects in the plants of Toyota and its suppliers, and it underpins all of Toyota’s operations across the World. Toyota launched its first small car (SA Model) in 1947.Production of vehicles outside Japan began in 1959 at a small plant in Brazil, and continued with a growing network of overseas plants. Toyota believes in localizing its operations to provide customers with the products they need where they need them; this philosophy builds mutually beneficial long-term relationships with local suppliers and helps the company fulfill its commitments to local labour. Over and above manufacturing, Toyota also has a global network of design and ‘Research and Development' facilities, embracing the three major car markets of Japan, North Am erica and Europe.In every community in which the company operates, Toyota strives to be a responsible corporate citizen; close relationships with people and organizations in the local community are essential contributors to mutual prosperity. Across the world, Toyota participates enthusiastically in community activities ranging from the sponsorship of educational and cultural programmes to international exchange and research. Toyota has the fastest product development process in the world. New cars and trucks take 12 months or less to design, while competitors typically require two to three years.Toyota is benchmarked as the best in class by all of its peers and competitors throughout the world for high quality, high productivity, manufacturing speed, and flexibility. Toyota automobiles have consistently been at the top of quality rankings. Strategic Analysis To better understand a firm and its placement of its strategies, we must conduct an analysis of factors that might affect its selection of strategies. SWOT Analysis Strengths * Toyota Motor Corporation is the world’s largest vehicle manufacturer by production and sales. * Toyota is best known for environmentally safe, quality, reliability, durability and value for money. Toyota’s Camry and Corolla have been the top-selling cars in their respected categories; in the past eight out of nine years. Also, Toyota produces the globe’s best selling hybrid car, the Prius – which by 2010 had surpassed two million sales worldwide. * Strong distribution and marketing efforts focused on meeting diverse needs, high quality sales and services, and close involvement with customers. * Low cost, high quality factory operations guided by just in time. * Toyota maintains long-term partnerships with suppliers, and strategic partners. Toyota holds the competitive edge of being the undisputed quality leader in automotive marketing. * Strong brand equity. * Diversified product portfolio (Lexus, Daihat su, Hino) leading to increasing customer base. * Toyota’s success allows it to invest heavily in Research and Development and in the future. Weaknesses * From the last quarter of 2009 through to the 1st quarter of 2010, Toyota had recalled more than 8 million cars and trucks globally in numerous recall campaigns, and temporarily stopped production and sales. * Toyota was badly hit by the 2008 financial crisis, and declared its first annual loss in its 70 years history. Toyota does not have detailed customer segmentation * Customers are not involved in the process. * Toyota places a very high level of responsibility on employee shoulders. * After the 2009-2010 recall crisis, Toyota was criticized for not having or employing enough PR staff, and that it was not able to manage its Customer Relations. Opportunities * Joint ventures with French motoring companies Peugeot and Citroen has provided various opportunities for the company to produce cars in France. * North American cons umers have shifted to more fuel-efficient and higher quality products of the European and Japanese automakers. Produce fuel-efficient, higher quality and smaller automobiles that can attract the consumers in developing and poor countries. * There is a growing demand for hybrid electric cars. Threats * Rising oil prices and other car maintenance costs, leading to decrease in car ownership. * Encouragement from governments and pressure from environmentalists to turn to more environmental friendly methods of transportation (e. g. cycling and public transportation) * Escalating competition in the low priced car market by the entrance of several newly industrialized countries. Continuing trade frictions due to trade imbalances between Japan and other countries and the lack in openness of the Japanese market to import. * Declining economic growth on a global scale. * Major producers, including the Big Three of U. S (G. M, Ford and Chrysler) offered significant discounts across their lineu ps. PESTLE Analysis Political The auto-industry is being pushed into a socio-politico-economic corner. Carmakers are regularly being restricted with new laws or policies or requirements; that they must adhere to. Toyota likewise is linked closely to the policies of the government.Not only this, but emerging countries, that are keen to develop an auto sector are putting political pressure on Toyota, so as to protect it and develop it. Economic Toyota Company is a pillar company in the auto mobile business, a flag of economic progress. The Toyota Company has been a core company, a unique phenomenon, which has dominated the twentieth century. However, the automobile industry, including Toyota Company has suffered a series of structural problems and has become riddled with contradictions and economic discontinuities; including the recent financial crisis. SocialAs part of the development in automotive industry, the Toyota Company actually affects the society as a whole. It employs milli ons of people directly, and tens of millions others indirectly. Its products have transformed society, bringing unbelievable levels of mobility and changing the ways people live and work. Nearly since its startup, Toyota has been a model of social discipline, control and improvement and it is not just the auto sector, where it has left a mark. Toyota is considered a role model in millions of organizations and institutions worldwide. It has with its culture been the example that professors use in every business school.Technological Toyota works on a brilliant scale and has such a vast influence that it is impossible to miss. Due to continuous improvement in demands, the level of technology that Toyota has to implement is increasing, and this adds to the challenges of heavy investment burdens on its R&D, and increases its uncertainties and risks in developing the technologies. Technologically, the automotive industry is becoming increasingly competitive. Legal Toyota is subject to a m ultitude of rules and regulations, as well as laws and legislations of a more legal nature.These laws and legislations cover areas such as competition law, intellectual property law, taxation, consumer protection law and emissions. Environmental Transportation through automobiles consumes a lot of the earth’s precious resources. Also to include as environmental issues are the network of roads that are made for the running of automobiles. The forests or ecosystems that are destroyed to make those roads are also environmental issues. Also, the extraction of oil as a usage of fuel; all are environmental costs. Another environmental cost is the extraction of raw materials that go into the making of these automobiles.Indirectly the automotive industry brings people congestion, pollution, traffic accidents and fatalities and a wave of other environmental troubles. Due to this, Toyota needed to establish R&D centres to take advantage of research infrastructure, human capital and tec hnical and technological knowledge, so they can develop vehicles to satisfy the requirements of the environmental and safety regulations more effectively. Toyota’s Core Competencies Toyota has several core competencies which they could utilize to further gain advantage over their competitors. In January of 2009, Toyota overtook the U.S. auto giant General Motors, to become the market leader in the automotive industry. One core competency of Toyota is their brand management. The strength of their automotive marketing has been such that their brand is known even in the parts of the world where cars are not the common medium of transportation. Another core competency is their supply chain management, which shows their ability to maintain a steady stream of raw material coming in for production, because of their long-term good relationships with their steel, glass, plastics and other raw material suppliers.Another thing that forms part of their core competencies is their highly c oordinated logistics system, which is outsourced; and leads to excellent inventory management and always on schedule production activities. Another major core competency of Toyota is their ability at the moving assembly line. Not only this; The Toyota Way of lean production, its JIT and TQM approach; all are part of its core competencies. Being the pioneer of such mass production and waste elimination system, they were able to get ahead of the competitors manufacturing process-wise and were also able to save on cost and time.Yet another core competency is Toyota’s focusing on its product development technology under a single product-information-management program through standardizing and incorporating them; thus highlighting Toyota’s work and effort on the development of sustainable production, and their commitment to perform environmentally. Toyota and its suppliers Toyota has basically 14 management principles, which combine to make ‘The Toyota Way’. Of those 14 principles, Principle 11 states that: â€Å"Respect your Extended Network of Partners and Suppliers by Challenging Them and Helping Them Improve†.This is merely a small sentence, but is more than enough to illustrate the importance of its suppliers to Toyota, and how it sees them as strategic partners and a part of its organization. Toyota in its early days was very small, and didn’t have a lot of business or production. It didn’t have the resources, capital or equipment to design and make the myriad of components that go into the making of a car. Toyota’s offer to its suppliers was small. It was the opportunity for all partners to grow the business together and mutually benefit in the long term.So, like the associates who work inside Toyota, suppliers became part of the extended family who grew and learned the Toyota Production System. Even when Toyota became a global powerhouse, it maintained its supplier partnerships. One way that Toyota has honed its skills in applying TPS is by working on projects with suppliers. Toyota needs its suppliers to be as capable as its own plants at building and delivering high-quality components just in time. Moreover, Toyota cannot cut costs unless suppliers cut costs, lest Toyota simply push cost reductions onto suppliers, which is not the Toyota Way.Since Toyota does not view parts as commodities to be sourced on the market through open bidding, it is critical that it works with highly capable suppliers that are following TPS or an equivalent system. Toyota’s purchasing department has its own quality and TPS experts to work with suppliers when there are problems. Toyota pays careful attention to its suppliers and their performance. It provides ample hands-on assistance and monitoring to avoid problems; or in the case of an occurrence of a problem, to correct it as soon as possible.If problems do occur, Toyota sends a team of its experts to address the problem and to create the ac tion plan. Whereas other companies would threaten problem suppliers—â€Å"Fix the problems or we will drop you†Ã¢â‚¬â€Toyota nurses them out of their â€Å"sickness† in a very holistic way. There are several advantages for Toyota in treating suppliers as strategic partners or part of the Toyota family. First of all Toyota’s JIT system is a practiced specimen, of how important and beneficial supplier relationships truly are. This system would have never been truly effective if successful integration with suppliers had not taken place.Parts and components arrive just when they are needed and hence Toyota saves on storage and warehouse costs. Toyota’s suppliers are integral to the just-in-time philosophy, both when it is working smoothly and when there is a breakdown in the system. Toyota also saves money on its logistics, and this as well roots from careful integration with suppliers. Also the TQM system of Toyota can be traced back to Toyotaâ€℠¢s supply chain management. Toyota outsources almost 70% of the components that go into its cars, and it maintains close relationships with its key suppliers, so as to procure quality parts and components.Toyota has been rewarded time and time again for its serious investment in building a network of highly capable suppliers that is truly integrated into Toyota’s extended lean enterprise. Much of the award winning quality that distinguishes Toyota and Lexus results from the excellence in innovation, engineering, manufacture, and overall reliability of Toyota’s suppliers. Toyota’s Purchasing Strategy Toyota’s Purchasing/Procurement Policy The ultimate objective of Toyota is to produce vehicles that fully satisfy the customer.To this end, Toyota has developed three basic principles that guide its relationship with suppliers with a view to optimizing its purchases in a global context. These principles are the following: i) Fair competition based on an open d oor policy Toyota is open to any potential supplier, regardless of nationality, size or whether this company is a first-time supplier or not. Toyota’s co-operation with suppliers is solely based on business considerations, which include an assessment of the overall economic and technological capacities of the potential supplier.Critical parameters of this evaluation are quality, cost, technological capabilities and reliability regarding the on-time delivery of the required quantities of inputs, as well as the entrepreneur’s ability to implement a kaizen strategy, which means the continued improvement and enhancement of products, services and management. ii) Mutual benefit based on mutual trust Toyota believes in developing mutually beneficial, long-term relationships with suppliers based on trust and confidence. Close and wide-ranging communication with them is considered a key factor in building and maintaining trust. ii) Contribution to local economic development thr ough localization and good corporate governance As part of the on-going globalisation efforts, Toyota is relocating a larger part of its production to other countries. It is its objective to contribute to the host country’s economic development in line with Toyota’s market presence by purchasing parts and other inputs from local suppliers. This is a Flowchart of the Toyota’s Purchasing Process Toyota’s Supply Chain Management Toyota’s Supplier Consideration and the Selection Process At Toyota, choosing a supplier is a long, drawn-out process that involves erifying whether the supplier will mesh with the supply network. In some cases, suppliers are selected because they have innovations that improve processes or decrease costs. Both new and existing suppliers are expected to share their innovations with other suppliers that supply similar products. As a basic rule, Toyota expects its suppliers to excel in quality, cost, delivery, and engineering, in cluding technology, and management. These are the five key areas that shape competitive entrepreneurs and make them successful in a competitive environment.Thus, Toyota requires suppliers to maintain consistently high quality levels which can be measured in terms of the number of defect parts per million. In addition, suppliers need to build and to maintain a strong position regarding unique designs or special technologies, while being cost- competitive. They also need to follow and to monitor trends in information technology and be able to harmoniously amalgamate state-of-the-art technology with their business organization. It is often necessary that potential suppliers undergo a preparatory process before entering a business partnership with Toyota.During this period, the management should attach particular emphasis on the following issues: * Encouragement of an enterprise culture of creativity, continuous learning and improvement; * Particular attention on R & D, which should go beyond technological issues to include an analysis of both customers’ needs and competitors’ competitive potential; * Improvement of employees’ satisfaction in order to promote creativity and strengthen organizational development; * Strengthening the management information system to help executives to take informed and effective decisions.Toyota views new suppliers cautiously and gives only very small orders. They must prove their sincerity and commitment to Toyota’s high performance standards for quality, cost, and delivery. If they demonstrate this for early orders, they will get increasingly larger orders. Toyota will teach them the Toyota Way and adopt them into the family. This is a model of what Toyota expects from its suppliers. Toyota’s suppliers have to show excellence in areas that Toyota sees as critical. These areas are cost, delivery, engineering, management and quality.Toyota’s philosophy is that suppliers have to excel in thes e areas if they wish to stand out amongst other suppliers and to be successful with global competitiveness Tiered Supplier Organizations Toyota like many auto carmakers is a network of suppliers. Tier 1 suppliers are Toyota’s direct suppliers, which is followed by Tier 2 suppliers and so on. Lastly, there are the Tier 4 suppliers. These are generally small in size, but are critical to the suppliers that are supplying Toyota. Toyota, to maintain the smooth flow in its supply chain, even handles when problem exist in these Tiers.An example of this can be a situation in which a government regulation required a change in antirust coatings. More than 4,000 parts were impacted by this change, but there were only a small number of suppliers that supplied the coating materials. Thus, Toyota was able to focus attention on a few suppliers to develop the new coating materials to be provided to suppliers that coated the 4,000 parts. Working with these lower-tier suppliers was the key to making the necessary changes in a timely and efficient manner. Toyota chooses suppliers across multiple tiers so as to guarantee availability of innovative solutions across the supply chain.Pressure on Suppliers to Perform Toyota’s suppliers are always at their toes. They do not get complacent or feel that they can ease-out, even if they are considered as Toyota’s trusted suppliers and have been supplying Toyota quality materials for a number of years. Even suppliers who have acquired long-term contracts from Toyota, for supplying specific components for a model or set of models have to prove that they are worth the trust to have been given the contract. Otherwise they would jeopardize their opportunity of continuing as Toyota’s suppliers or risk not acquiring such a contract in future models.The depth of Toyota’s Supplier Relationship Toyota’s suppliers suggest that Toyota’s processes have a few characteristics that enable their success, na mely: * Pervasive collaboration tools that have common standards and are compatible with one another * Visibility and visual control not fogged by analysis * Trust to share intellectual property without fear of abuse * Modular view of teams and processes and flexible planning to keep goals aligned with customer needs * Encouragement of teams as a vehicle to solve problems Assisting and Helping SuppliersA key feature of Toyota’s supply chain is the automaker’s role in supplier capability development. This point has already been addressed earlier in this project, how Toyota provides assistance to its suppliers and helps them learn. Supplier Location Decisions Toyota’s planning for assembly plant sites assumes that most suppliers will be located at a reasonable distance from the assembly plant and that their delivery schedules will permit efficient operation of the assembly plant to produce vehicles based on the final vehicle mix and sequence.The low lot sizes of a ssembly plant parts orders imply that suppliers need to be located close to the assembly plant. Many suppliers choose to be located close to an assembly plant. In Japan, 85 percent of the volume comes from suppliers located within a 50-mile radius of a plant (i. e. , within a one-hour drive). In North America and Europe, the goal is for 80 percent of the parts to be delivered within three to five days lead time. The Toyota Target Value System The Toyota Target Value System is a complex system that is continuously applied in Toyota-supplier relationships.Under this system, Toyota and a supplier agree on a number of long-term issues and objectives to strengthen the supplier’s competitiveness. In the course of intense consultations, the long-range objectives are scaled down to annual targets, the so-called â€Å"target values†. On this basis, the supplier undertakes appropriate steps and measures to reach these goals as agreed. Progress is regularly evaluated in terms of organization, effort and achievement and the assessment is communicated to the supplier. Suppliers that succeed in raising their levels of competitiveness receive awards.In case suppliers experience difficulties in their efforts to attain the agreed targets, Toyota provides expertise to analyze the problems and to design measures to remedy the situation. The continuing circle of improvement, attainment and further improvement enables suppliers to improve their competitive edge, while laying the foundation for a stable and long-term business relationship with Toyota, as well as for a broadened range of business opportunities. This long-term approach also helps to overcome problems emanating from economic recession and turmoil.Environmentally-Friendly Products Based on â€Å"Green Procurement† In order to produce environmentally-friendly products, Toyota aims to procure parts, materials and equipment that have low environmental impact from suppliers that always give sufficient consideration to the environment. Toyota’s Supplier Strategies: Strengths and Weaknesses Strengths Suppliers are considered part of Toyota’s value chain. Having strong relationships with partners provides Toyota with certain advantages. Its lean production methods are directly integrated with the efficiency of suppliers.The advantages that Toyota acquires of its supplier strategies include the inventory that Toyota receives JIT from its suppliers. Toyota’s suppliers work hand in hand with Toyota to improve processes and the quality of its products. These supplier strategies also help Toyota shed its costs. The work that Toyota has done with its suppliers has helped the suppliers in eliminating waste from their factory floors; shedding cost and getting the best out of the least. All these savings and reductions in costs are passed on to Toyota as low priced – high quality parts and components.These supplier strategies have also increased Toyota’s qu ality, and have decreased defects to a bare minimum. Another visible advantage of Toyota’s supplier strategies is that the company has decreased its time-to-market for its new or developing products. Suppliers respect Toyota and share common interests and mutual benefits with Toyota. These strong ties also help improve Toyota’s insight on the occurrence of problems and avoiding them, as it goes beyond just handling its direct suppliers; in fact it also deals with its Tier 2, Tier 3 and Tier 4 suppliers.Also, Toyota’s decision to select most of its suppliers that are geographically located near to it, also helps solve logistics problem and brings a large reduction in the cost of transporting the parts or components to its plants. Weaknesses (Toyota has a very studied and planned organizational structure. Its departments are perfectly set and planned. We as students did not have the ample resources to conduct a study on the weaknesses of Toyota – so what we mention here are just assumptions. ) Recent recalls that Toyota has suffered, have been to some extent blamed on its suppliers and Toyota’s Supplier Management.There is a wide speculation that since Toyota, after overtaking GM as the largest auto manufacturer set its goal to increase its market share from 11% to 15%. Due to this Toyota lost sight of its core philosophies, and grew complacent in its supplier selection process. Thus, summarizing that Toyota is only as good as its network of suppliers. Denso, a core supplier of Toyota, which conducts more than 30% of its business with Toyota is said to be somewhat frustrated with the closeness that Toyota maintains with it. This is due to the reason being that Denso also supplies to other customers which are also car manufacturers.These customers are namely Honda, Nissan and Mazda etc. and are considered by Toyota as its main competitors; especially Honda and Nissan. These deviating relationships might possibly hurt or damage T oyota in the long run; if corrective measures are not taken. Also, some suppliers complain that although Toyota is their best customer, it doesn’t let go of its bargaining power; meaning that Toyota keeps an upper hand over everything. It can also be argued that having low inventories, if not managed well can cause problems in the production line.Corrective Actions Required Knowing how Toyota works, if these problems come into existence; Toyota will have a carefully planned approach to solving them. To begin with Toyota would first clarify the problem and see the comparison between the current and the ideal or required state. Then as second step, it would grasp the actual situation and see the gaps, which have caused the problem to occur. A third step would be to break down the problem and set targets to correct them bit by bit. Finally, it would conduct an analysis of the underlying causes.What Toyota should do to prevent the problems mentioned in the (Weaknesses) section ab ove is that Toyota must improve its supplier management process and make some corrections to its supply chain. Conclusion Japanese carmakers have always been considered the benchmarks in their industry, and Toyota is the best among the Japanese car manufacturers, establishing it as the benchmark of benchmarks. Toyota has excellence embedded deep in its core and has helped and developed its suppliers to do the same, by integrating and applying a scope of mutual learning and development.Fun Fact As a full stop to this project, we would leave you with a fun fact to think over. Today, Toyota is the world's largest manufacturer of automobiles in unit sales and in net sales. It is by far the largest Japanese automotive manufacturer, producing more than 10 million vehicles per year, equivalent to one every six seconds. In the time it has taken you to read this paragraph, Toyota would have produced at least another three or four cars! Resources Books 1. TOYOTA SUPPLY CHAIN MANAGEMENT: Anant h V. Iyer, Sridhar Seshadri and Roy Vasher 2.THE TOYOTA WAY – 14 Management Principles from the World’s Greatest Manufacturer: Jefferey K. Liker 3. THE TOYOTA LEADERS – An Executive Guide: Masaaki Sato Online Resources and Websites 1. http://www. economist. com/node/15576506 2. www. toyota-industries. com 3. http://www. strategicsourceror. com/2011/04/toyota-supply-of-cars-will-be-impacted. html 4. www. toyota-global. com 5. http://blogs. gxs. com/morleym/2010/02/improving-visibility-across-toyota%E2%80%99s-supply-chain. html 6. http://thethrivingsmallbusiness. om/articles/what-can-we-learn-from-the-toyota-crisis/ 7. www. businessweek. com 8. http://www. toyota. co. nz 9. www. toyotasupplier. com 10. http://www. industryweek. com/articles/toyotas_real_secret_hint_its_not_tps_13432. aspx 11. http://www. autoweek. com/article/20060818/free/60816004 12. www. inc. com 13. http://www. businessweek. com/bwdaily/dnflash/content/jan2010/db20100128_907800. htm 14. http:/ /www. bnet. com/blog/mba/lessoned-learned-from-toyotas-crisis/1939 15. http://findarticles. com/p/articles/mi_m0KJI/is_10_118/ai_n27023150/ An Analysis of Toyota’s Strategic Procurement and Supply Chain Management Purchasing & Materials Management| | Strategic Procurement & Supply Chain Management| Introduction The topic selected is (Strategic Procurement & Supply Chain Management). For this study, we have selected Toyota Motor Corporations as our company of choice. Toyota is without doubt the best in the world, with its many philosophies and principles on how to make the best out of the least; JIT, lean production and elimination of waste and the desire for continuous improvement are just a few ways how Toyota has become the best in the auto industry.Toyota as a name, a company, and as a brand has become synonymous with Quality. At the heart of its success, lie family values that have been passed down; a norm that has become the Organizational Culture of Toyota – The Quest for Excellence, and The Passion to Lead. Toyota’s achievement of excellence stems from implementing lean production, or which they refer to as ‘The Toyota Way’. The most visible product of Toyotaà ¢â‚¬â„¢s quest for excellence is its manufacturing philosophy, called the Toyota Production System (TPS).We have selected to apply this topic to Toyota, because to perfect their way of lean production, they work on it from the root; i. e. their suppliers, and purchasing strategy. Scope of Project Analyzing the strategies of Toyota, and how they implement it in their purchasing and procurement policy. Also, analyzing how Toyota selects it suppliers and what selection processes do they go through; and also conducting an analysis of Toyota’s supply chain and its supply chain management. Limitations This study was really difficult to attain, as personal interviews or nteractions with Toyota’s direct employees was beyond our budgets to conduct. This study is a result of hard work and extensive internet and textual or written research from more than ten websites and three books. Also, the study of Toyota was too large and very difficult to summarize into the limited requirem ents of this paper. Company Background The Toyota Motor Co. Ltd was first established in 1937 as a spin-off from Toyoda Automatic Loom Works, one of the world's leading manufacturers of weaving machinery. The Toyoda Automatic Loom Works was then headed by Japan's â€Å"King of Inventors† Sakichi Toyoda.The patent rights to one of his machines had been sold to Platt Brothers (UK) and provided the seed-money for the development and test-building of Toyota's first automobiles. August 2007 marked the 70th anniversary of TMC. The fledgling company founded by Kiichiro Toyoda, Sakichi's son, has since blossomed into the leader that it is today. In 1950 the company experienced its one and only strike. Labour and management emerged from this stoppage firmly committed to the principles of mutual trust and dependence, and that corporate philosophy still guides T0oyota’s growth today.Production systems were improved in the late 1950s, culminating in the establishment of the Ã¢â‚¬Ë œToyota Production System. ‘ It became known as TPS in 1970 but was established much earlier by Taiichi Ohno. Based on the principles of Jidoka, Just-in-time and Kaizen, the system is a major factor in the reduction of inventories and defects in the plants of Toyota and its suppliers, and it underpins all of Toyota’s operations across the World. Toyota launched its first small car (SA Model) in 1947.Production of vehicles outside Japan began in 1959 at a small plant in Brazil, and continued with a growing network of overseas plants. Toyota believes in localizing its operations to provide customers with the products they need where they need them; this philosophy builds mutually beneficial long-term relationships with local suppliers and helps the company fulfill its commitments to local labour. Over and above manufacturing, Toyota also has a global network of design and ‘Research and Development' facilities, embracing the three major car markets of Japan, North Am erica and Europe.In every community in which the company operates, Toyota strives to be a responsible corporate citizen; close relationships with people and organizations in the local community are essential contributors to mutual prosperity. Across the world, Toyota participates enthusiastically in community activities ranging from the sponsorship of educational and cultural programmes to international exchange and research. Toyota has the fastest product development process in the world. New cars and trucks take 12 months or less to design, while competitors typically require two to three years.Toyota is benchmarked as the best in class by all of its peers and competitors throughout the world for high quality, high productivity, manufacturing speed, and flexibility. Toyota automobiles have consistently been at the top of quality rankings. Strategic Analysis To better understand a firm and its placement of its strategies, we must conduct an analysis of factors that might affect its selection of strategies. SWOT Analysis Strengths * Toyota Motor Corporation is the world’s largest vehicle manufacturer by production and sales. * Toyota is best known for environmentally safe, quality, reliability, durability and value for money. Toyota’s Camry and Corolla have been the top-selling cars in their respected categories; in the past eight out of nine years. Also, Toyota produces the globe’s best selling hybrid car, the Prius – which by 2010 had surpassed two million sales worldwide. * Strong distribution and marketing efforts focused on meeting diverse needs, high quality sales and services, and close involvement with customers. * Low cost, high quality factory operations guided by just in time. * Toyota maintains long-term partnerships with suppliers, and strategic partners. Toyota holds the competitive edge of being the undisputed quality leader in automotive marketing. * Strong brand equity. * Diversified product portfolio (Lexus, Daihat su, Hino) leading to increasing customer base. * Toyota’s success allows it to invest heavily in Research and Development and in the future. Weaknesses * From the last quarter of 2009 through to the 1st quarter of 2010, Toyota had recalled more than 8 million cars and trucks globally in numerous recall campaigns, and temporarily stopped production and sales. * Toyota was badly hit by the 2008 financial crisis, and declared its first annual loss in its 70 years history. Toyota does not have detailed customer segmentation * Customers are not involved in the process. * Toyota places a very high level of responsibility on employee shoulders. * After the 2009-2010 recall crisis, Toyota was criticized for not having or employing enough PR staff, and that it was not able to manage its Customer Relations. Opportunities * Joint ventures with French motoring companies Peugeot and Citroen has provided various opportunities for the company to produce cars in France. * North American cons umers have shifted to more fuel-efficient and higher quality products of the European and Japanese automakers. Produce fuel-efficient, higher quality and smaller automobiles that can attract the consumers in developing and poor countries. * There is a growing demand for hybrid electric cars. Threats * Rising oil prices and other car maintenance costs, leading to decrease in car ownership. * Encouragement from governments and pressure from environmentalists to turn to more environmental friendly methods of transportation (e. g. cycling and public transportation) * Escalating competition in the low priced car market by the entrance of several newly industrialized countries. Continuing trade frictions due to trade imbalances between Japan and other countries and the lack in openness of the Japanese market to import. * Declining economic growth on a global scale. * Major producers, including the Big Three of U. S (G. M, Ford and Chrysler) offered significant discounts across their lineu ps. PESTLE Analysis Political The auto-industry is being pushed into a socio-politico-economic corner. Carmakers are regularly being restricted with new laws or policies or requirements; that they must adhere to. Toyota likewise is linked closely to the policies of the government.Not only this, but emerging countries, that are keen to develop an auto sector are putting political pressure on Toyota, so as to protect it and develop it. Economic Toyota Company is a pillar company in the auto mobile business, a flag of economic progress. The Toyota Company has been a core company, a unique phenomenon, which has dominated the twentieth century. However, the automobile industry, including Toyota Company has suffered a series of structural problems and has become riddled with contradictions and economic discontinuities; including the recent financial crisis. SocialAs part of the development in automotive industry, the Toyota Company actually affects the society as a whole. It employs milli ons of people directly, and tens of millions others indirectly. Its products have transformed society, bringing unbelievable levels of mobility and changing the ways people live and work. Nearly since its startup, Toyota has been a model of social discipline, control and improvement and it is not just the auto sector, where it has left a mark. Toyota is considered a role model in millions of organizations and institutions worldwide. It has with its culture been the example that professors use in every business school.Technological Toyota works on a brilliant scale and has such a vast influence that it is impossible to miss. Due to continuous improvement in demands, the level of technology that Toyota has to implement is increasing, and this adds to the challenges of heavy investment burdens on its R&D, and increases its uncertainties and risks in developing the technologies. Technologically, the automotive industry is becoming increasingly competitive. Legal Toyota is subject to a m ultitude of rules and regulations, as well as laws and legislations of a more legal nature.These laws and legislations cover areas such as competition law, intellectual property law, taxation, consumer protection law and emissions. Environmental Transportation through automobiles consumes a lot of the earth’s precious resources. Also to include as environmental issues are the network of roads that are made for the running of automobiles. The forests or ecosystems that are destroyed to make those roads are also environmental issues. Also, the extraction of oil as a usage of fuel; all are environmental costs. Another environmental cost is the extraction of raw materials that go into the making of these automobiles.Indirectly the automotive industry brings people congestion, pollution, traffic accidents and fatalities and a wave of other environmental troubles. Due to this, Toyota needed to establish R&D centres to take advantage of research infrastructure, human capital and tec hnical and technological knowledge, so they can develop vehicles to satisfy the requirements of the environmental and safety regulations more effectively. Toyota’s Core Competencies Toyota has several core competencies which they could utilize to further gain advantage over their competitors. In January of 2009, Toyota overtook the U.S. auto giant General Motors, to become the market leader in the automotive industry. One core competency of Toyota is their brand management. The strength of their automotive marketing has been such that their brand is known even in the parts of the world where cars are not the common medium of transportation. Another core competency is their supply chain management, which shows their ability to maintain a steady stream of raw material coming in for production, because of their long-term good relationships with their steel, glass, plastics and other raw material suppliers.Another thing that forms part of their core competencies is their highly c oordinated logistics system, which is outsourced; and leads to excellent inventory management and always on schedule production activities. Another major core competency of Toyota is their ability at the moving assembly line. Not only this; The Toyota Way of lean production, its JIT and TQM approach; all are part of its core competencies. Being the pioneer of such mass production and waste elimination system, they were able to get ahead of the competitors manufacturing process-wise and were also able to save on cost and time.Yet another core competency is Toyota’s focusing on its product development technology under a single product-information-management program through standardizing and incorporating them; thus highlighting Toyota’s work and effort on the development of sustainable production, and their commitment to perform environmentally. Toyota and its suppliers Toyota has basically 14 management principles, which combine to make ‘The Toyota Way’. Of those 14 principles, Principle 11 states that: â€Å"Respect your Extended Network of Partners and Suppliers by Challenging Them and Helping Them Improve†.This is merely a small sentence, but is more than enough to illustrate the importance of its suppliers to Toyota, and how it sees them as strategic partners and a part of its organization. Toyota in its early days was very small, and didn’t have a lot of business or production. It didn’t have the resources, capital or equipment to design and make the myriad of components that go into the making of a car. Toyota’s offer to its suppliers was small. It was the opportunity for all partners to grow the business together and mutually benefit in the long term.So, like the associates who work inside Toyota, suppliers became part of the extended family who grew and learned the Toyota Production System. Even when Toyota became a global powerhouse, it maintained its supplier partnerships. One way that Toyota has honed its skills in applying TPS is by working on projects with suppliers. Toyota needs its suppliers to be as capable as its own plants at building and delivering high-quality components just in time. Moreover, Toyota cannot cut costs unless suppliers cut costs, lest Toyota simply push cost reductions onto suppliers, which is not the Toyota Way.Since Toyota does not view parts as commodities to be sourced on the market through open bidding, it is critical that it works with highly capable suppliers that are following TPS or an equivalent system. Toyota’s purchasing department has its own quality and TPS experts to work with suppliers when there are problems. Toyota pays careful attention to its suppliers and their performance. It provides ample hands-on assistance and monitoring to avoid problems; or in the case of an occurrence of a problem, to correct it as soon as possible.If problems do occur, Toyota sends a team of its experts to address the problem and to create the ac tion plan. Whereas other companies would threaten problem suppliers—â€Å"Fix the problems or we will drop you†Ã¢â‚¬â€Toyota nurses them out of their â€Å"sickness† in a very holistic way. There are several advantages for Toyota in treating suppliers as strategic partners or part of the Toyota family. First of all Toyota’s JIT system is a practiced specimen, of how important and beneficial supplier relationships truly are. This system would have never been truly effective if successful integration with suppliers had not taken place.Parts and components arrive just when they are needed and hence Toyota saves on storage and warehouse costs. Toyota’s suppliers are integral to the just-in-time philosophy, both when it is working smoothly and when there is a breakdown in the system. Toyota also saves money on its logistics, and this as well roots from careful integration with suppliers. Also the TQM system of Toyota can be traced back to Toyotaâ€℠¢s supply chain management. Toyota outsources almost 70% of the components that go into its cars, and it maintains close relationships with its key suppliers, so as to procure quality parts and components.Toyota has been rewarded time and time again for its serious investment in building a network of highly capable suppliers that is truly integrated into Toyota’s extended lean enterprise. Much of the award winning quality that distinguishes Toyota and Lexus results from the excellence in innovation, engineering, manufacture, and overall reliability of Toyota’s suppliers. Toyota’s Purchasing Strategy Toyota’s Purchasing/Procurement Policy The ultimate objective of Toyota is to produce vehicles that fully satisfy the customer.To this end, Toyota has developed three basic principles that guide its relationship with suppliers with a view to optimizing its purchases in a global context. These principles are the following: i) Fair competition based on an open d oor policy Toyota is open to any potential supplier, regardless of nationality, size or whether this company is a first-time supplier or not. Toyota’s co-operation with suppliers is solely based on business considerations, which include an assessment of the overall economic and technological capacities of the potential supplier.Critical parameters of this evaluation are quality, cost, technological capabilities and reliability regarding the on-time delivery of the required quantities of inputs, as well as the entrepreneur’s ability to implement a kaizen strategy, which means the continued improvement and enhancement of products, services and management. ii) Mutual benefit based on mutual trust Toyota believes in developing mutually beneficial, long-term relationships with suppliers based on trust and confidence. Close and wide-ranging communication with them is considered a key factor in building and maintaining trust. ii) Contribution to local economic development thr ough localization and good corporate governance As part of the on-going globalisation efforts, Toyota is relocating a larger part of its production to other countries. It is its objective to contribute to the host country’s economic development in line with Toyota’s market presence by purchasing parts and other inputs from local suppliers. This is a Flowchart of the Toyota’s Purchasing Process Toyota’s Supply Chain Management Toyota’s Supplier Consideration and the Selection Process At Toyota, choosing a supplier is a long, drawn-out process that involves erifying whether the supplier will mesh with the supply network. In some cases, suppliers are selected because they have innovations that improve processes or decrease costs. Both new and existing suppliers are expected to share their innovations with other suppliers that supply similar products. As a basic rule, Toyota expects its suppliers to excel in quality, cost, delivery, and engineering, in cluding technology, and management. These are the five key areas that shape competitive entrepreneurs and make them successful in a competitive environment.Thus, Toyota requires suppliers to maintain consistently high quality levels which can be measured in terms of the number of defect parts per million. In addition, suppliers need to build and to maintain a strong position regarding unique designs or special technologies, while being cost- competitive. They also need to follow and to monitor trends in information technology and be able to harmoniously amalgamate state-of-the-art technology with their business organization. It is often necessary that potential suppliers undergo a preparatory process before entering a business partnership with Toyota.During this period, the management should attach particular emphasis on the following issues: * Encouragement of an enterprise culture of creativity, continuous learning and improvement; * Particular attention on R & D, which should go beyond technological issues to include an analysis of both customers’ needs and competitors’ competitive potential; * Improvement of employees’ satisfaction in order to promote creativity and strengthen organizational development; * Strengthening the management information system to help executives to take informed and effective decisions.Toyota views new suppliers cautiously and gives only very small orders. They must prove their sincerity and commitment to Toyota’s high performance standards for quality, cost, and delivery. If they demonstrate this for early orders, they will get increasingly larger orders. Toyota will teach them the Toyota Way and adopt them into the family. This is a model of what Toyota expects from its suppliers. Toyota’s suppliers have to show excellence in areas that Toyota sees as critical. These areas are cost, delivery, engineering, management and quality.Toyota’s philosophy is that suppliers have to excel in thes e areas if they wish to stand out amongst other suppliers and to be successful with global competitiveness Tiered Supplier Organizations Toyota like many auto carmakers is a network of suppliers. Tier 1 suppliers are Toyota’s direct suppliers, which is followed by Tier 2 suppliers and so on. Lastly, there are the Tier 4 suppliers. These are generally small in size, but are critical to the suppliers that are supplying Toyota. Toyota, to maintain the smooth flow in its supply chain, even handles when problem exist in these Tiers.An example of this can be a situation in which a government regulation required a change in antirust coatings. More than 4,000 parts were impacted by this change, but there were only a small number of suppliers that supplied the coating materials. Thus, Toyota was able to focus attention on a few suppliers to develop the new coating materials to be provided to suppliers that coated the 4,000 parts. Working with these lower-tier suppliers was the key to making the necessary changes in a timely and efficient manner. Toyota chooses suppliers across multiple tiers so as to guarantee availability of innovative solutions across the supply chain.Pressure on Suppliers to Perform Toyota’s suppliers are always at their toes. They do not get complacent or feel that they can ease-out, even if they are considered as Toyota’s trusted suppliers and have been supplying Toyota quality materials for a number of years. Even suppliers who have acquired long-term contracts from Toyota, for supplying specific components for a model or set of models have to prove that they are worth the trust to have been given the contract. Otherwise they would jeopardize their opportunity of continuing as Toyota’s suppliers or risk not acquiring such a contract in future models.The depth of Toyota’s Supplier Relationship Toyota’s suppliers suggest that Toyota’s processes have a few characteristics that enable their success, na mely: * Pervasive collaboration tools that have common standards and are compatible with one another * Visibility and visual control not fogged by analysis * Trust to share intellectual property without fear of abuse * Modular view of teams and processes and flexible planning to keep goals aligned with customer needs * Encouragement of teams as a vehicle to solve problems Assisting and Helping SuppliersA key feature of Toyota’s supply chain is the automaker’s role in supplier capability development. This point has already been addressed earlier in this project, how Toyota provides assistance to its suppliers and helps them learn. Supplier Location Decisions Toyota’s planning for assembly plant sites assumes that most suppliers will be located at a reasonable distance from the assembly plant and that their delivery schedules will permit efficient operation of the assembly plant to produce vehicles based on the final vehicle mix and sequence.The low lot sizes of a ssembly plant parts orders imply that suppliers need to be located close to the assembly plant. Many suppliers choose to be located close to an assembly plant. In Japan, 85 percent of the volume comes from suppliers located within a 50-mile radius of a plant (i. e. , within a one-hour drive). In North America and Europe, the goal is for 80 percent of the parts to be delivered within three to five days lead time. The Toyota Target Value System The Toyota Target Value System is a complex system that is continuously applied in Toyota-supplier relationships.Under this system, Toyota and a supplier agree on a number of long-term issues and objectives to strengthen the supplier’s competitiveness. In the course of intense consultations, the long-range objectives are scaled down to annual targets, the so-called â€Å"target values†. On this basis, the supplier undertakes appropriate steps and measures to reach these goals as agreed. Progress is regularly evaluated in terms of organization, effort and achievement and the assessment is communicated to the supplier. Suppliers that succeed in raising their levels of competitiveness receive awards.In case suppliers experience difficulties in their efforts to attain the agreed targets, Toyota provides expertise to analyze the problems and to design measures to remedy the situation. The continuing circle of improvement, attainment and further improvement enables suppliers to improve their competitive edge, while laying the foundation for a stable and long-term business relationship with Toyota, as well as for a broadened range of business opportunities. This long-term approach also helps to overcome problems emanating from economic recession and turmoil.Environmentally-Friendly Products Based on â€Å"Green Procurement† In order to produce environmentally-friendly products, Toyota aims to procure parts, materials and equipment that have low environmental impact from suppliers that always give sufficient consideration to the environment. Toyota’s Supplier Strategies: Strengths and Weaknesses Strengths Suppliers are considered part of Toyota’s value chain. Having strong relationships with partners provides Toyota with certain advantages. Its lean production methods are directly integrated with the efficiency of suppliers.The advantages that Toyota acquires of its supplier strategies include the inventory that Toyota receives JIT from its suppliers. Toyota’s suppliers work hand in hand with Toyota to improve processes and the quality of its products. These supplier strategies also help Toyota shed its costs. The work that Toyota has done with its suppliers has helped the suppliers in eliminating waste from their factory floors; shedding cost and getting the best out of the least. All these savings and reductions in costs are passed on to Toyota as low priced – high quality parts and components.These supplier strategies have also increased Toyota’s qu ality, and have decreased defects to a bare minimum. Another visible advantage of Toyota’s supplier strategies is that the company has decreased its time-to-market for its new or developing products. Suppliers respect Toyota and share common interests and mutual benefits with Toyota. These strong ties also help improve Toyota’s insight on the occurrence of problems and avoiding them, as it goes beyond just handling its direct suppliers; in fact it also deals with its Tier 2, Tier 3 and Tier 4 suppliers.Also, Toyota’s decision to select most of its suppliers that are geographically located near to it, also helps solve logistics problem and brings a large reduction in the cost of transporting the parts or components to its plants. Weaknesses (Toyota has a very studied and planned organizational structure. Its departments are perfectly set and planned. We as students did not have the ample resources to conduct a study on the weaknesses of Toyota – so what we mention here are just assumptions. ) Recent recalls that Toyota has suffered, have been to some extent blamed on its suppliers and Toyota’s Supplier Management.There is a wide speculation that since Toyota, after overtaking GM as the largest auto manufacturer set its goal to increase its market share from 11% to 15%. Due to this Toyota lost sight of its core philosophies, and grew complacent in its supplier selection process. Thus, summarizing that Toyota is only as good as its network of suppliers. Denso, a core supplier of Toyota, which conducts more than 30% of its business with Toyota is said to be somewhat frustrated with the closeness that Toyota maintains with it. This is due to the reason being that Denso also supplies to other customers which are also car manufacturers.These customers are namely Honda, Nissan and Mazda etc. and are considered by Toyota as its main competitors; especially Honda and Nissan. These deviating relationships might possibly hurt or damage T oyota in the long run; if corrective measures are not taken. Also, some suppliers complain that although Toyota is their best customer, it doesn’t let go of its bargaining power; meaning that Toyota keeps an upper hand over everything. It can also be argued that having low inventories, if not managed well can cause problems in the production line.Corrective Actions Required Knowing how Toyota works, if these problems come into existence; Toyota will have a carefully planned approach to solving them. To begin with Toyota would first clarify the problem and see the comparison between the current and the ideal or required state. Then as second step, it would grasp the actual situation and see the gaps, which have caused the problem to occur. A third step would be to break down the problem and set targets to correct them bit by bit. Finally, it would conduct an analysis of the underlying causes.What Toyota should do to prevent the problems mentioned in the (Weaknesses) section ab ove is that Toyota must improve its supplier management process and make some corrections to its supply chain. Conclusion Japanese carmakers have always been considered the benchmarks in their industry, and Toyota is the best among the Japanese car manufacturers, establishing it as the benchmark of benchmarks. Toyota has excellence embedded deep in its core and has helped and developed its suppliers to do the same, by integrating and applying a scope of mutual learning and development.Fun Fact As a full stop to this project, we would leave you with a fun fact to think over. Today, Toyota is the world's largest manufacturer of automobiles in unit sales and in net sales. It is by far the largest Japanese automotive manufacturer, producing more than 10 million vehicles per year, equivalent to one every six seconds. In the time it has taken you to read this paragraph, Toyota would have produced at least another three or four cars! Resources Books 1. TOYOTA SUPPLY CHAIN MANAGEMENT: Anant h V. Iyer, Sridhar Seshadri and Roy Vasher 2.THE TOYOTA WAY – 14 Management Principles from the World’s Greatest Manufacturer: Jefferey K. Liker 3. THE TOYOTA LEADERS – An Executive Guide: Masaaki Sato Online Resources and Websites 1. http://www. economist. com/node/15576506 2. www. toyota-industries. com 3. http://www. strategicsourceror. com/2011/04/toyota-supply-of-cars-will-be-impacted. html 4. www. toyota-global. com 5. http://blogs. gxs. com/morleym/2010/02/improving-visibility-across-toyota%E2%80%99s-supply-chain. html 6. http://thethrivingsmallbusiness. om/articles/what-can-we-learn-from-the-toyota-crisis/ 7. www. businessweek. com 8. http://www. toyota. co. nz 9. www. toyotasupplier. com 10. http://www. industryweek. com/articles/toyotas_real_secret_hint_its_not_tps_13432. aspx 11. http://www. autoweek. com/article/20060818/free/60816004 12. www. inc. com 13. http://www. businessweek. com/bwdaily/dnflash/content/jan2010/db20100128_907800. htm 14. http:/ /www. bnet. com/blog/mba/lessoned-learned-from-toyotas-crisis/1939 15. http://findarticles. com/p/articles/mi_m0KJI/is_10_118/ai_n27023150/

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Common Questions About Trees How can I tell if I’ve picked a site with good drainage? Start by digging a hole as deep as your planting hole. Fill the hole with water and watch to see how water drains from the hole. If it drains at a rate of less than 1 inch per hour, pick a new site. If that’s not possible, consider installing some form of drainage to carry water away from the base of the tree. Also consider using water-tolerant species, such as: Red maple Sycamore willow oak river birch How big should the planting hole be? While you might be tempted to dig a very deep hole, in fact a tree requires a shallow planting hole that is no deeper than the root ball. However, it is very important to make sure the hole is wide enough. As a general rule, make yours three times as wide as the root ball. Such a wide shallow hole encourages the horizontal root growth that allows your tree to thrive. Should I add anything to the soil? You may be accustomed to backfilling planting holes with peat moss or other organic matter when installing perennials. When planting a tree, however, you should fill the planting hole with the unamended soil (that is, soil to which nothing has been added). This ensures that the soil around the root ball has the same density as the soil the roots will encounter later, as they spread beyond the original planting hole. A marked difference in density between the planting hole and the surrounding area can limit growth. Do I have to do anything to the tree before planting? All trees sold at Long Meadow Gardens come with roots wrapped in untreated burlap, which will degrade quickly in the soil after planting. To plant a tree wrapped in untreated burlap: 1. Remove any tags from the trunk and branches. 2. Place the entire root ball, including the burlap, into the planting hole. 3. Untie the twine from the base of the tree. 4. Push the burlap down to the bottom of the plan... Free Essays on Microsoft Apps Free Essays on Microsoft Apps Common Questions About Trees How can I tell if I’ve picked a site with good drainage? Start by digging a hole as deep as your planting hole. Fill the hole with water and watch to see how water drains from the hole. If it drains at a rate of less than 1 inch per hour, pick a new site. If that’s not possible, consider installing some form of drainage to carry water away from the base of the tree. Also consider using water-tolerant species, such as: Red maple Sycamore willow oak river birch How big should the planting hole be? While you might be tempted to dig a very deep hole, in fact a tree requires a shallow planting hole that is no deeper than the root ball. However, it is very important to make sure the hole is wide enough. As a general rule, make yours three times as wide as the root ball. Such a wide shallow hole encourages the horizontal root growth that allows your tree to thrive. Should I add anything to the soil? You may be accustomed to backfilling planting holes with peat moss or other organic matter when installing perennials. When planting a tree, however, you should fill the planting hole with the unamended soil (that is, soil to which nothing has been added). This ensures that the soil around the root ball has the same density as the soil the roots will encounter later, as they spread beyond the original planting hole. A marked difference in density between the planting hole and the surrounding area can limit growth. Do I have to do anything to the tree before planting? All trees sold at Long Meadow Gardens come with roots wrapped in untreated burlap, which will degrade quickly in the soil after planting. To plant a tree wrapped in untreated burlap: 1. Remove any tags from the trunk and branches. 2. Place the entire root ball, including the burlap, into the planting hole. 3. Untie the twine from the base of the tree. 4. Push the burlap down to the bottom of the plan...