Another manufacturing process that Toyota needs to address and which is implicit in the previously mentioned manufacturing process is its increasing propensity to utilize parts suppliers outside of its keiretsu, which loosely translates into headless combination (No author, 2009). Keiretsu is a Japanese term for the tiered hierarchy of additional companies (including suppliers) that traditional Japanese countries work with (Greto et al., 2010, p. 9). Due to Toyota's pressing concerns for globalization and its forsaking of localization concerns, Toyota's American development largely functioned independently of traditional keiretsu suppliers. The noxious effects of this occurrence is not only witnessed in the plethora of recalls Toyota endured in the first decade of the 21st century, but they also resulted in the fact that the organization struggled to find enough senior engineers responsible for monitoring these suppliers. Nevertheless, Toyota leaned even more heavily on its single-source supply-chain approach, often using single suppliers for entire ranges of its cars across multiple markets (Greto et al., 2010, p. 9).

Conventionally, Toyota's keiretsu requires a three-level tier of suppliers, which was largely forsaken during the American market in the 2000's for a single supplier. Clearly, the organization needs to resume its keiru structuring of parts suppliers and equipment manufacturers, since its alternative method engendered swift production and poor vehicle quality. The importance to the company is that doing so may require greater up front capital, but will ultimately produce superior automobiles. This improvement will primarily affect manufacturers, suppliers and Toyota customers, and should affect the organization's operation from a bottom up approach.

Toyota Summary

Toyota is one of the most well-known foreign companies operating within the United States. Its principle product...

As of 2010 it had dealerships and nearly 9,000 employees -- in addition to more than 10 regional offices -- in every state in the country (Greto et al., 2010, p 9). In spite of its substantial U.S. presence, the Japanese-based company has dealerships and offices all throughout the world. The company was founded by Kiichiro Toyoda during the Great Depression, and initially began supplying vehicles to government entities (including both Japan and the U.S.) before specializing in sales and service in the private sector.
Toyota's automobiles have different subsidiaries to accommodate varying customer bases. For instance, its Lexus line produces luxury vehicles designed for higher-end clientele, while its Scion subsidiary manufacturers more affordable automobiles generally designed for a younger customer base.

For the past several years, Toyota has routinely vied with General Motors, Chrysler and Ford for the bestselling automobile manufacturer in the world. Its principle foreign competition is Nissan and Honda, both of which are also based in Japan. In 2008 it achieved its goal of being the top selling automotive company in the world, with its sales fueled in no small part by its U.S. customer base.

Toyota developed its reputation as a staple of the automotive industry by focusing on creating quality, safe vehicles. It began manufacturing and selling vehicles in the U.S. In the early 1980's as part of a joint venture with General Motors.