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Economic Impact -- There are both macro and micro implications for the Toyota issue. The recall, of course, came at a difficult time for all automakers who are struggling to emerge from lagging sales. On the day of the recall almost 1000 jobs were cut in one Toyota plant, and the economic impact is expected to be about $2 million/month to total almost $2.5 billion. Toyota's stock shares fell by 15%, and the loss of jobs in manufacturing, sales, and dealer repairs has yet to be calculated. Additionally consumer economics are affected due to the devaluation of Toyota models, some now upside down on relatively new vehicles. Sales, too, are expected to dramatically fall, which has an effect on the local economy, the national economy, and the global economy. Players in the range of Toyota's annual production and revenue affect the economies of more than one nation -- in particular in this case, that o f Japan and the United States, with peripheral effects in the EU and other...
Transportation unions on the West Coast (Los Angeles, Seattle, and Portland) also face a reduction in force as shipping from the automaker declines.
On the other hand, Toyota's loss may or may not have a potentially positive impact on U.S. automakers, especially Ford, GM and Chrysler. It is not yet clear whether this event will allow greater economic life into the U.S. auto industry, perhaps even supplanting the loss in jobs and manufacturing from Toyota's downturn. It also remains to be seen what the global sales of U.S. cars will be if Toyota loses a larger chunk of its market share. Unfortunately for many Japanese automakers, a recent problem with Honda has consumers and analysts concerned that the public's perception will be tarnished, and therefore plunge some of the industry back into economic recession. Likewise, the overall and long-term effect for consumers is not yet known, depending on what happens to the value of the product over time.
Economics Course Economics impacts on many areas of life subsequently it will impact on many areas of professional life. Reflecting on the lessons learned, including the knowledge and skills gained, the real value is in the way that economics concepts can be applied to the real world; not only to explain event that are seen in the macro-environment, but to guide the way personal decisions will be made with that knowledge. The
Kaizen is so engrained in the Toyota culture and the corresponding House of Quality that internally when planned results are not achieved it is considered more of a failure of process and execution (Gong, Wang, Lai, 2009). This is where the TPS varies significantly from American-based approaches to managing variation in results and failure to attain results as well. The Kaizen approach systematically analyzes why a process did not
Analysis of Toyota Opportunities and Threats Toyota is the world's leading patent holder in hybrid vehicle technologies, having over 85% of all patents registered in the U.S. Patent Office, in addition to holding over forty different patents in other registries throughout Europe and Asia. This is a formidable platform for growth in this high-growth emerging line of business. Hybrid technologies can reduce carbon emissions by over 60% in the latest engine
However, certain elements of the Toyota Production System must be re-evaluated, particularly the conception of waste. If the principles of CCC21 and Value Innovation were based on the concept that production materials could be halved because they amounted to waste, those initiatives should be discarded. Ideally, Toyota should utilize 100% of the materials that it used prior to CCC21, when all of its quality issues began. The cost-benefit analysis of
"Toyota is currently working to achieve this voluntary target by 2009 within the context of its own 2010 Global Vision and zero emissions vehicle goal through, in part, increasing the mix of hybrids within its model line up." In terms of design, it should not be forgotten that Toyota pioneered the world's first mass produced petrol/electric car, the Prius, which went on sale in Japan in 1997. It is also a
TOYOTA'S PRIUS With the increased level of awareness of the environment, automotive car manufacturers vie on the viability of selling environmentally hybrid cars. Leading this group are Honda and Toyota. The following is a market analysis of the position of Toyota's Prius. It analyzes the following factors: Situation of the firm in the market The industry of hybrid cars The strategy adopted by Prius and how it is faring in the market The barriers of