Success of Toyota
In 2003, the Japanese Toyota Corporation sold 6.8 million vehicles, overtaking Ford to become the world’s second largest car manufacturer. Its profits rose to almost double the combined profits of its three principal competitors – General Motors, Ford and Daimler-Chrysler. Toyota plans to increase its research efforts to develop new materials and car designs which meet current demand and to expand into new markets, building new factories in other countries. Currently it operates 46 factories in 26 countries outside Japan. It plans to increase production in Britain, France, Poland, Turkey and the Czech Republic.
Toyota makes cars in response to customer orders rather than attempting to sell cars it has already built. The idea is to eliminate waste and increase efficiency by making only what is needed, when it is needed. Workers specialise in assembling particular parts of the car. As a result of a suggestion by one of the employees, recent improvements on the production line have included the placing of the small components needed for each car inside the shell of the car itself rather than in trays alongside on trolleys which can get knocked over and cause wasted time.
The company’s luxury car brand, ‘Lexus’, which was launched in 1989, now sells more than its competitors Mercedes and BMW.
(a) Discuss the extent to which it is an advantage for the worker when a company uses specialisation in production.
(b) What factors are likely to influence a consumer’s demand for a Lexus?
(c) How would you investigate whether Toyota should expand production into other countries as planned?
In 2003, the Japanese Toyota Corporation sold 6.8 million vehicles, overtaking Ford to become the world’s second largest car manufacturer. Its profits rose to almost double the combined profits of its three principal competitors – General Motors, Ford and Daimler-Chrysler. Toyota plans to increase its research efforts to develop new materials and car designs which meet current demand and to expand into new markets, building new factories in other countries. Currently it operates 46 factories in 26 countries outside Japan. It plans to increase production in Britain, France, Poland, Turkey and the Czech Republic.
Toyota makes cars in response to customer orders rather than attempting to sell cars it has already built. The idea is to eliminate waste and increase efficiency by making only what is needed, when it is needed. Workers specialise in assembling particular parts of the car. As a result of a suggestion by one of the employees, recent improvements on the production line have included the placing of the small components needed for each car inside the shell of the car itself rather than in trays alongside on trolleys which can get knocked over and cause wasted time.
The company’s luxury car brand, ‘Lexus’, which was launched in 1989, now sells more than its competitors Mercedes and BMW.
(a) Discuss the extent to which it is an advantage for the worker when a company uses specialisation in production.
(b) What factors are likely to influence a consumer’s demand for a Lexus?
(c) How would you investigate whether Toyota should expand production into other countries as planned?