Category: Toyota

Introduction

The number of product liability lawsuits as well as product recalls against the manufacturing companies has continued to heighten. This discourse aims at giving a detailed analysis on the issue of product safety and liability in relation to the case of Weimer versus Toyota of North America Inc.

Discussion

The paper will give limelight to Toyota Company as well as the product safety issue that led to its lawsuit. Also, it will discuss at length the legal theories that the plaintiff used in recovering the lawsuit and some of the changes that have taken place in the company since then to ensure the safety of the products. It will also give a detailed analysis of a related agency that can work with Toyota to ensure compliance and quality assurance. As a means to an end, the paper will briefly give rational recommendations.

Toyota and product safety issue that led to the lawsuit

Halbert and Ingulli (2011) in their book ‘law and ethics in the business environment’ assert that Toyota is the vastest automobile manufacturer in America. Its manufacturing headquarters are in Erlanger, Kentucky.

In the year 2009, the National Highway Traffic Safety Administration agency was faced with a major crisis that resulted from the acceleration of the Toyotas. As is expected by Federal law, the carmakers are supposed to notify the agency to incase of any safety defects within five days. However, Toyota waited for a period of four months before it finally disclosed the issue of sticky pedal problems. As a result, the company paid $ 16, 385 million (Rupp, 2011; Mitsuhiro, 2010).

However, NHTSA is not the only player that sought accountability from the corporation as Daniel Weimer and other plaintiffs such as Colby and Ann Cavalier had a bone to chew with Toyota Company.

In the case of Weimer versus Toyota, it was noted that 5.3 million vehicles that were sold by Toyota had defects as they were uncontrollable and had unsafe acceleration. This was a class-action lawsuit against Toyota on behalf of all the consumers that were affected in the period between 2005 and 2010 by the Toyota gas pedal defects.

It ought to be noted that Toyota is not the only company that has suffered from lawsuits due to negligence. A similar case is that of Mitsubishi Motors Corporation vs. Peter Laliberte. The case resulted in a multi-million dollar judgment against the corporation due to defects that caused death to the plaintiff due to the injuries that he sustained in the accident (Baldwin et al, 1998).

Legal theories

In the case of Weimer versus Toyota, Toyota argued that the plaintiff’s legal theory defied rationality and they were confident that their cars offered security and reliable transport hence the plaintiffs had no credible claims. It would be naïve to assume that the defendant was right and the plaintiffs’ theories defied commonsense.

In a similar case of Denny vs Ford motor company (Baldwin et al, 1998), the plaintiff offered rational-legal theories asserting that the company caused damages and hence had to pay for negligence, breach of an implied warranty, and strict liability. The plaintiff alleged that the vehicle had been defectively designed.

Some of the legal theories that were put forward by the plaintiff included breach of implied warranty and negligence.

Baldwin et al (1998) assert that negligence claims do require causation, damages and proof of duty. In this case, in their legal theory, the plaintiff argued that Toyota company had a duty to offer a safe product in manufacture and design, to let NHTSA know about the defects and warn NHTSA about the defective nature of the pedals which they never did hence were negligent. Additionally, the company breached its duty of care to the class members as well as the plaintiff when they designed the defective pedals in a manner that endangered the lives of people.

To continue with the theories, the plaintiff argued on the issue of breach of implied warranty. They argued that at the time, in which Toyota sold and distributed automobiles for use by the class members and the plaintiff, the company already knew the intended purpose of the vehicles and hence by selling defective vehicles, that was a clear breach of implied warranty and an obvious tort and a breach of contract.

Additionally the company had marketed the automobiles making everybody believe that the vehicles were safe and with no defects hence that was a tort. Moreover, the plaintiff argued that the vehicles sold were unfit for their intended purposes as they were defective and caused damages. It is clear that the company breached the warranties of fitness and merchantability when the vehicles were sold to the plaintiff and hence it is rational to allege that the company had a case to answer and the plaintiff legal theories were reasonable.

As a result, the panel gave considerable thought to the suitability of the wrongful death cases and personal injuries with the economic damages that were brought before the court by the plaintiff. The case of 2010 led to a great loss for the company as it was required by the law to pay a total fine of $ 32.4 million for recalls (Halbert and Ingulli, 2011).

Correspondingly, in a case between Anderson vs General Motors, the jury ordered the company to pay the plaintiff a total of $ 4.9 billion because of a defective and dangerous designed fuel system which had also been quoted as a massive suit which resulted in the vastest personal injury judgment in the historical books (Baldwin et al, 1998). The decision to fine Toyota such a huge amount of money was appropriate and justifiable as the company violated the products liability law hence rendering the vehicles in question unfit and useless for their intended use.

Toyota Company and changes to ensure safety of products

There have been several changes in the company to ensure safety of the products manufactured. They have come up with goal policy to heighten the level of workplace safety skills and to continue on improving and implementing proactive prevention activities that will help them avoid frustrations and losses that are as a result of lawsuits (Rothenberg and Maxwell, 2011). It has implemented ergonomic measures that will help in the prevention of musculoskeletal disorders and enhance strong measures against dust and noise.

To ensure safety, the company has introduced a management system that is usually focused on prompt decision making so as to speed up operations (Rothenberg and Maxwell, 2011). It has also implemented a unique culture which does emphasize on preventive measures and problem solving. This has helped in instilling a culture of safety as part of their aim to ensure zero danger and zero accidents.

Since the year 2010, Toyota Company has come up with measures which are aimed at eliminating incidents and providing maximum safety to all its consumers. It is clear that the company has undergone tremendous changes and even cut on their losses. For example in November of 2010, a lawsuit was filed against Toyota due to electronic defect.

As compared to the earlier lawsuits that led to heavy penalties, the November lawsuit failed as the company offered rational legal theories supporting the fact that their cars were safe. It also argued that the lawsuit ought to be dismissed as the plaintiff did not identify actual defect (Halbert and Inguli, 2011). This portrays a major change in the company towards designing a safe product.

The company has also come up with measures that will help secure their consumers. To correct the problem on gas pedals, it modified and replaced the gas pedals so as to reduce the danger of accelerating out of control (Rothenberg and Maxwell, 2011). These measures were designed so as to prevent the floor mats from jamming the pedal. As an additional precaution, the company has focused on modifying most of its cars so that the brake can override the accelerator incase the pedals were to be pressed instantly.

Regulatory Agency (NHTSA) and Toyota

Toyota Company can work effectively with NHTSA to enhance operations as well as product safety. National Highway Traffic Safety Administration (NHTSA) is an agency whose main responsibility is to prevent injuries, save lives and reduce traffic related accidents and economic costs.

Moreover it is responsible for investigating any defects caused by the manufactures and has a duty to serve the common good (Paolozzi, 2005). Toyota Company can work with NHTSA so as to have clear reference on the standards, regulatory programs, enforcement processes and reporting requirements. The agency has a mandate to investigate any defects caused by the manufacturers.

Recommendations

The main cause of the supposed defects is related to design and quality flaws. The company should have corrected the problem immediately they realized there were defects so as to enhance safety which they never did.

The company totally ignored on the need to ensure safety and product quality. It is crucial for the company to maintain its philosophy of ‘customer first’ and guarantee safety to its consumers to avoid losing them. Under its high profit entity, the company continues to ignore on its corporate philosophy hence leading to recalls of over a million cars which can be easily avoided if the company sticks to its philosophy.

Additionally, the company has lost customer trust thus it needs to focus on regaining trust. This means that Toyota Company needs to change on its business strategies which are related to cost reduction so as to heighten its profits. It should treat its employees equally and ensure that their wages are raised. Generally, Toyota Company should fulfill its main social responsibility so as to produce high quality and safe cars thus achieving international and national trust. This will ensure expansion as well as stabilization hence recovering other related global economies.

Conclusion

It is apparent that cases related to product safety have increased and hence there is a need for companies to come up with effective strategies to curb the heightened causes of these lawsuits. This will help them to maintain their reputation as well as increase profits in their companies.

References

Baldwin, S., Hare, F & McGovern, F. (1998). The preparation of a product liability cases. Washington: Aspen publishers.

Halbert, T & Ingulli, E. (2011). Law and ethics in the business environment. New York: Cengage learning.

Mitsuhiro, F. (2010). Japanese financial instability and weaknesses in the corporate governance structure. Journal of economics, 11(4): 301-422.

Paolozzi, L. (2005). The role of sales of new motorcycles in a recent increase in mortality rates. Journal of safety research, 36(4): 364-366.

Rothenberg, S & Maxwell, J. (2011). Issues in the implementation of proactive environmental strategies. Business strategy and the environment, 1(4):1-12.

Rupp, N. (2011). Who initiates recalls and who cares? Evidence from the automobile industry. Journal of industrial economics, 50(2):123-449.

Introduction

Toyota Motor Corporation is one of the world’s largest motor vehicle manufacturing corporation. Headquartered in Aichi, Japan, the company’s ‘Toyota’ automobile models are quite popular in nearly all regions of the world due to their comparatively cheap prices and fuel efficiency.

As an international corporation headquartered in Japan, the corporation off shores much of its production activities, and procures cheap labor from various countries outside Japan. Off shoring enables companies to reduce operation costs and thus maximize on profit (Meredith & Shaffer, 2007, p.136). The Toyota Motor Company has several divisions in the US involved in production, assembly, and sale of Toyota automobiles.

In late 2009 and the early months of 2010, Toyota Motor Company began a worldwide recall of its vehicles, many of which were found to have faulty accelerator pedals. The pedals malfunctioned upon increased application of pressure, leading to accidents which had, by the time of the recall, killed nearly one hundred persons.

In the US, the death figure was about 60. Toyota Motor Corporation ignored early complaints of problems with the floor mats, accelerator, and brake pedals in some of its models.

The subsequent reluctance to alert its clients of the stated defects in its vehicles publicly, and denial of the existence of the same defects make Toyota Motor Corporation culpable, and the ensuing product liability lawsuits against the corporation are well justified.

Background to the Product Liability Lawsuit

Complaints against the faulty accelerator pedals had been made as early as the year 2006. Further complaints from Toyota vehicle owners focused on the floor mats, which seemed to attach to the accelerator pedals, and when this occurred when a driver was in high speed, the driver easily lost control of the vehicle.

Additionally, during high speeds, when a driver applied the breaks the vehicle increased its speed, leading to loss of control and accidents, therefore, even the break pads themselves were faulty in these vehicles.

Toyota Motor Company as a corporate entity had always been a model company insofar as quality production, employee satisfaction, and customer service were concerned. According to Liker, Toyota’s corporate management style was one of the best in the world, and had always been used as the best example in running successful and sustainable corporations (2010, p.30).

However, in 2001, Toyota Motor Corporation’s resolution of increasing its global market share by nearly 20% – thereby making it the world’s largest automaker in terms of units produced and sold – began to erode the corporation’s quality commitments.

Toyota Motor Corporation had always had a post for a vice president in charge of worldwide quality production. However, due to the drive to increase sales, this office got engaged in sales increase as opposed to its core business, leading to the decline in quality that led to the production of the vehicle models with the defective floor mats, accelerator and brake pedals.

The Product Liability Lawsuit

The Product Liability Lawsuit against Toyota for the above stated product deficiencies and negligence on the part of the manufacturer were filed in California and New York, US, in March 2010.

Mark Saylor, a Highway Patrol officer, was off duty and had been travelling with a Toyota Lexus automobile since his own vehicle was undergoing service. While cruising at high speed, the accelerator pedal attached to the floor mat and his subsequent inability to stop the car led to a collision that resulted in his death (The Gilbert Law Group, 2010, Para. 2).

According to his wife and other relatives who filed the liability lawsuit against Toyota, a previous user of the same vehicle had complained of the exact hitch with the accelerator pedal that led to Saylor’s death. Despite this complaint, the Lexus dealership (managed by Toyota Motor Corporation) still went on and rented out the car to Saylor.

Another victim of the malfunctioning pedals was Nancy Murtha, who while driving her Lexus in the company of her five year old child tried to apply the breaks only for the vehicle to accelerate further, and she subsequently crashed into a wall (The Gilbert Law Group, 2010, Para. 8).

Her child died while she suffered multiple injuries that required several surgeries, which left her bankrupt and emotionally traumatized. Saylor’s wife and their relatives filed a product liability lawsuit against Toyota in California on 18 March 2010, while Nancy Murtha filed her lawsuit in New York on 24 March 2010.

The Reaction of Toyota Motor Corporation

By the time the two lawsuits were filed in the US, Toyota had recalled about 9 million units worldwide due to suspected defects in the accelerator and brake pedals. Therein lays the fault with Toyota Motor Corporation: despite undertaking such a significant recall of its vehicles, there were no press releases to warn owners of particularly susceptible vehicles such as the Lexus, that their vehicles were veritable death traps.

Therefore, owners and users of Toyota models such as Lexus – for instance Mark Saylor and Nancy Murtha – could have benefitted immensely from public warnings of the possible defects in their vehicle’s accelerator pedals.

The matter of faulty accelerator did not come to the attention of Toyota Motor Corporation in the period immediately preceding the recall, but much earlier. According to Taylor, as early as 2007, reports of defective floor mats and the malfunctioning accelerator pedals had begun to surface on a substantial scale in the US (2010, p.110).

However, part of the reason why the recall of these vehicles was delayed has to do with Toyota’s tradition of dealing with its overseas plants and clients, and the corporation’s historically slow reaction to allegations of deficiencies in its automobile models. Toyota typically has a number of Chief Engineers, or Shusas, whose exclusive task is to oversee the quality of manufactured automobile models.

However, due to Toyota’s focus on expansion and an increased global presence, these Shusas overrode many decisions made by Toyota managers in overseas divisions, such as the US.

Therefore, any reports of mechanical defects in theses vehicles would receive scant attention from the Shusas, who seemed more interested and focused on the corporation’s growth. Additionally, these Shusas would routinely ignore recommendations from Toyota’s overseas managers, especially if such recommendations did not align with the corporation’s expansionist intentions.

Furthermore, Toyota Motor Corporation has historically been averse to acknowledging defects in its automobile units. Long admired for its quality productions, Toyota basked in the glory of the quality of its units for so long that, any claims of defects in its units would immediately be dismissed or denied altogether.

For instance, between 1998 and 2003, the corporation refused to acknowledge the fact that some of its six cylinder engines in the US were performing under par due to a build up of engine oil caused by defects in the cylinders.

Even though independent investigations confirmed this fact, Toyota Motor Corporation fervently denied these claims, only to agree later to repair and compensate owners of vehicles with the defective engine cylinders (Taylor, 2010, p.111). Lewis States that the fear of negative publicity for a corporation such as Toyota sometimes outweighs the desire to perform public good, even when lives are involved (2010, p.32).

Unethical Conduct of Toyota Motor Corporation

As stated in the foregoing paragraphs, there was indeed an actual manufacturing problem in the Toyota automobile models, especially the Lexus, which necessitated a worldwide recall. The recall began November 2009, and as more investigations revealed further hitches in wide ranging Toyota models, the scope of the automobiles units recalled widened. The last recall occurred in May 2010.

Instructively, the onus was Toyota Motor Corporation to issue public warnings and press releases communicating to the American public the possible anomalies in the accelerator pedals of some of its automobile models. Such an undertaking never occurred, and due to the lack of such notices, Mark Saylor and Nancy Murtha’s child, and many other victims lost their lives.

According to Bensinger and Vartabedian, federal regulators had, as early as 2007, asked Toyota Motor Corporation to consider making the necessary changes to the software of its automobile models to prevent sudden acceleration in its vehicles, a complaint against Toyota models that had become too common to ignore for the regulatory body concerned (2010, Para. 1).

The company should have conducted a worldwide systems analysis of its models; to identify faults and make the necessary changes, as is the purpose of a systems analysis (Meredith & Shaffer, 2007, p. 156). The corporation did no such software upgrade.

Conclusion

The conduct of Toyota Motor Corporation in handling its vehicle recalls between November 2009, and the early months of 2010 were unethical, especially in light of the needless lives lost due to the lack of public communication of the possible defects in its vehicles.

As discussed in this paper, The Toyota management, both in and out of the US, had been aware of complaints regarding the faulty accelerator pedals, and the defective floor mats. However, the corporation was slow to act, meanwhile, millions of lives were put at risk, and some, like that of Mark Saylor and Nancy Murtha’s child discussed here, were lost.

As much as the corporation had earned its reputation as a manufacturer of quality vehicles over the years it has been in operation, this seeming lack of empathy and its desire to protect its public image at the expense of the lives of its clients has stained its reputation. The onus is now on the corporation to compensate the wronged victims and their families, and attempt a restoration of its reputation, if at all that is possible.

References

Bensinger, K., & Vartabedian, R. (2010). Toyota was asked in 2007 to consider installing software to prevent sudden acceleration. The LA Times. Retrieved From <https://www.latimes.com/archives/la-xpm-2010-mar-14-la-fi-toyota-brake14-2010mar14-story.html>

Lewis, P. R. (2010). Safety First. Mechanical Engineering, 132(9), 32-35.

Liker, J. K. (2010). The way back for Toyota. Industrial Engineer: IE, 42(5), 28-33.

Meredith, J., & Shaffer, S. (2007). Operations Management for MBAs (4^th Ed). Hoboken, New Jersey: Wiley & sons

Taylor, A. (2010). How Toyota lost its way. Fortune, 162(2), 108-118.

The Gilbert Law Group. (2010). More Toyota products liability lawsuits over sudden acceleration wrongful deaths. Web.

Advertisements of Toyota Yaris car communicates its benefits enabling the audience to understand and consider buying it. The selling benefit attempts to persuade the customer by emphasizing the positive side of the product. It makes the audience realize that a reputable multinational company that offers nothing less than quality products to the market manufactured the car. The advertisement process aims to educate the audience and ensure that all the necessary information is provided.

The key selling benefit makes it possible for Toyota Company to charge higher prices and earn greater returns on investment. It facilitates the differentiation of the car by creating a positive story that motivates the audience to prefer the product to those of the competing companies. The strategy enables the company to justify higher prices for this car than other similar cars in the market resulting in better profits. Since the brand has a good reputation and is recognized around the globe, many consumers could be willing to pay higher prices for their preferred cars. Moreover, selling benefits creates room for the company to emphasize the intangible benefits.

The selling strategy facilitates the expansion of the target market and makes it easier for the audience to develop complicated purchasing decisions. It becomes possible for consumers to make informed decisions since the details of benefits are provided. This implies that selling benefits would promote consumer knowledge and understanding to influencing the purchasing decision. The method also enables the company to benefit from powerful psychological motivators based on the consumers’ purchasing behavior. Focusing on the benefits of the car enables its marketers to satisfy the desires and needs of the consumer. It also supports product differentiation to satisfy customers through meeting their diverse needs. Toyota has achieved the objective by presenting the car model with a hatchback and another one with a sedan shape to meet the requirements of all customers.

Advertisement Targeting the Audience Appropriately Verbally and Non-Verbally

Non-verbal advertisement played a great role in the establishment of a good impact on consumers and included eye contact, gestures, facial expressions, and body postures. The facial expression created a beneficial impact by supporting contradicting or complementing statements. The use of body language facilitated the creation of a long-lasting impression and reinforced the verbally communicated message. The audience was targeted appropriately verbally by ensuring effective persuasion and provision of beneficial information. Toyota Company applied various persuasion tricks to influence customers’ decisions and create a fruitful relationship. Communicating with customers offers clarity making sure that they access all the necessary information. Both verbal and non-verbal advertisements promoted the satisfaction of customers following a better flow of information and response to feedback.

The Positive/Negative Aspects of the Advertisement

The positive aspect of the advertisement is that it explains the benefits of the car to customers, and its ability to solve their problems. Defining the benefits in a quantifiable manner is likely to attract more customers than offering the basic description. The selling approach highlights all the benefits of the car including public perception and attitude towards it. Moreover, the approach facilitates the identification of unique needs in the market and presents the product as an effective solution. It also helps maintain a low cost of production while maintaining the high profitability of the company products.

The negative aspect of the selling approach is that it does not inform consumers about possible problems with the car. It only concentrates on the positive side while ignoring issues that buyers are likely to experience while driving the car. Moreover, the approach takes the advantage of intangible services such as the reputation of the company and public perception to charge higher prices than the value of the product. For instance, Toyota uses its strong brand and reputation to maintain exaggerated prices regardless of the quality of the product they are selling. This implies that large organizations may not realize the need of offering quality products since their recognition and reputation will support the market. The approach frustrates new entrants in the market since they do not have loyal customers who would come for their products based on the history. Important features such as the quality, interior space, durability, fuel efficiency, acceleration rate, and stability on the road that should determine the price become irrelevant.

Improvements/Changes for the Advertisement

The advertisement should incorporate specific features of the product that are relevant to consumers. Apart from focusing on increasing profitability, the approach should consider the customers’ value for money by ensuring that their needs are satisfied. Customers are always interested in the buying of products meeting their needs and solving their problems. This means that it is important for the approach to avoid misleading consumers to buy recognized brands even when they are not meeting their minimum requirements. Improvements should be focused on ensuring that customers receive the necessary information regarding specific features of the product. This would play a role in the satisfaction of customers while facilitating the development of a long-lasting relationship. Moreover, it should provide information regarding the available models in the market, engine size, body size, capacity, as well as, the number of seats.

Introduction

The definition of globalization stems from capitalism. It is the domination of the world markets by multinational organisations with massive capital bases through the imposition of free trade policies leading to existence in massive frontiers simultaneously. The practice has been ongoing for quite some time but has however picked momentum in the last half decade.

Multiple Free Trade Agreements (FTAs) have been signed between nations in a bid to opening up new markets for the maximization of profits for capitalists. The labour markets have not been left untouched, far from it, they are the drivers of globalizations as cheap labour usually amounts to less costs and in turn more revenue, a capitalist’s dream. Like in all other factors affecting the world economy, there have been beneficiaries of this practice as well as losers (Gereffi 2005).

Naturally, the beneficiaries are the few privileged members of the society whereas the losers have largely involved the marginalized poor, lowly paid workers ad the environment. Present trends, like melting of the ice caps due to global warming, tend to suggest that unless this practice is regulated, then our very existence is at risk. The regulation of globalization has been regarded as the most challenging task of the political leadership of our time.

The Toyota Engineering and Manufacturing, North America (TEMA), company provides a very good platform for the analysis of the operations of globalization. The company is a subsidiary of the Toyota Motor Company (TMC) of Japan and is based in Texas in the United States.

The case of Toyota is perfect since it is a blueprint of a multinational company which has 13 plants in North America alone. This helps in dispelling the notion that globalization only happens in developing countries. Toyota has already surpassed general motors in the production of automobiles in the US making it a very good example of a global company at work.

The company is accused of being the biggest force in undermining its workers and also the community it exists in. for starters, the 2,000 acre piece of land that the plant sits on was formerly ranch land. Additionally, the company has collaborated with the state in the preference of capital over labour.

This has an effect on the way workers are treated, how the community is handled and how the environment is utilized. The location of the plant and all others is along the NAFTA corridor that allows access to the markets in the south as far as Mexico and also on all other directions (Vogel 2006). No study can be conclusive without the examination of the significance the location plays.

Theoretical framework

Globalization as discussed is a product of communism and is driven by the need for rapid expansion into new markets and also in existing ones. Therefore, there are several characteristics of globalization that can be derived from this description. The first is that globalization is relentless in the search for cheap labour.

Hence, companies are opening up subsidiaries in areas where production is cheapest and then exporting these products into the markets that have opened up as a result of the free trade agreements. As a result, there are opportunities of employment that open up in those countries where multinational set up their production plants. The downside to this characteristic of globalization is that sometimes in a bid for utilizing cheap labour, children are coerced into working in these plants like in Asia.

When multinationals set up production plants in foreign countries, they are in effect investing in the resources of those countries which lead to foreign direct investment (FDI). This is because most factors of production readily available in those countries are utilized and only those that are not available are imported into the country. Globalization is therefore a source of development for different regions in the world.

The other characteristic of globalization is that it leads to increased sales in foreign countries that may amount to new markets that open up. Companies make more revenue from the marketing of products in countries that they have set up in by selling those products in those markets before they are exported into others.

Manufacturing in foreign countries means that there are a lot of raw materials that may be needed that translate to the importation of most factors of production not present in the countries of manufacture (Humphrey and Memedovic 2003).

As discussed above, many companies are usually attracted by the prospect of having cheap labour which accounts for a very small fraction of the total cost as it would have had where labour is more expensive. The exchange of factors of production has led to the improvement of communication as coordination is very important.

The negative impacts of globalization are usually concerned with the attitude of the multinationals towards their workers, some who are children, and the environment. Many multinationals corporations that set up in developing countries usually do not have employee structures and pay very little attention to them.

In addition, very little investment is made in the conservation of the environment with no established waste management systems. This has led to pollution on a very large scale. Another negative impact of globalization is that most multinationals do not develop the area in which they operate.

Discussion

The theoretical framework above presents a preview of what is expected in the subsequent discussion. Since the focus was on the Toyota Company, the discussion will look at the impact of globalization on the corporation itself, the labour market, the community of operation and the environment.

The Corporation

The company boasts a strategy that it refers to as lean manufacturing (Berger & MIT IPC 2005). This entails the manufacture of the “maximum number of sellable parts or services at the lowest operational cost” (Vogel 2010). This strategy has worked very well for the company as it is hinged on teamwork, flexibility and evaluations and re-evaluations. The system is aimed at maximizing “throughput” instead of “input” which is a system through which the company generates revenues form the sale of automobiles.

There is a lot of corporate rhetoric that is anti-lean manufacturing. The company has had partnerships with state governments that extends to it subsidies and tax abatements. There is also the factor that allows the company to maximize cheap labour both offshore and onshore to extensively produce low cost motor vehicles capable of competing with other companies in the country (Gereffi 2006).

On close inspection of the company’s operations, it is clear that no manufacturing process adopted saves on operational costs as the tax abatements and cheap labour do. This serves to uphold the principles and strategies that have been adopted by Toyota.

By the endorsement of the system, the company has made mega profits during its cause of operations and has remained relatively unaffected by the global economic dynamics. The successes of the company must however be measured against its impacts on its workforce, the community and the environment.

Labour

It is undoubted that the success of globalization has largely been at the expense of the working population. The strategy of utilizing cheap labour is affecting the labour market on two major fronts. The first effect is that globalization creates a sense of competition between the workers which drives the cost of labour further down (Herrigel 2004). Secondly, the effect has been that workers in regional labour markets have been stratified thus. The chart below shows the cost of labour in the Americas where Toyota operates.

The North American Free Trade Agreement (NAFTA) is the reason why manufacturing companies in the US are moving their operations southerly in order to maximize the cheap labour in Mexico. The simple strategy is to pit workers against each other which works very well for the company but has had disastrous consequences for the labourers.

Among the consequences is the obsoleteness of UAW (United Auto Workers) which was one of the strongest welfare unions in the US, the deteriorating welfare of all auto workers, the continuous decline in the payable wages and other benefits and the decline in employment opportunities in both the Midwest and Canada (Sturgeon & Richard 2000).

The table shows how the wages are distributed in the various divisions of the Americas. Clearly, there is a distinction between the different wages with those in the Midwestern US assembly receiving the highest wages at $26 per hour. In sharp contrast, those in the Mexican parts receive and abysmal $1.75 per hour while performing relatively same tasks as their counterparts. Another disparity that is noticeable is that part workers receive about half what the others in the assembly do.

What is even more appalling is that assembly workers in Mexican parts receive only 16% as much as part workers in Midwestern US. The absence of part workers in southern US is largely because the company relies on Mexicans to produce he bulk of their parts and just crosses them over the border where they are utilized. This proximity was largely the reason why manufacturing plants were in the southern parts of the US.

Another strategy that has worked very well for the company has been the payment of surwages, a practice that involves the payment of wages that are higher than the minimum wages but much lower that those that are arrived at through collective bargaining. This makes it hard for members of these labour blocks to unionize and hence the company keeps control of the labour block. The figure below supports this fact.

It is clear that the company pays a little higher that the minimum age in San Antonio which is $11.55 and hour. The company adds an extra $3.70 dollars but that does not even begin to cover the amount that is demanded by the unions. The company has reiterated that this strategy is very important for its continued growth in North America.

The Community

It is almost absolute that the fate of the economy of a part like San Antonio is closely tied with that of its workers. In the discussions above, it is clear that the beneficiaries of globalization are usually a few people at the expense of the larger society. The economy of the area can thus be said not to be gaining as a result of having the company located here. As an example, we are going to examine public education in the area.

As a starting point, the deal between the government and the company where it receives subsidies and tax abatements mean that there is lost revenue for the region. The funds that were diverted into this cause could have been utilized in the development of public utilities or invested into the education system.

Even before the company was officially began and asked for applications from prospective workers, there was already an influx of people into the area seeking to be employed which put a pressure on the existing systems. This led to a financial crisis barely a year after the plant had been opened.

In 2007, Toyota’s tax was estimated at $700 million. The Southwest Independent School District (SWISD) went before the Bexar County Appraisal District (BAD) to challenge this valuation as it felt that revenue was being lost. As a retaliatory approach, the company’s lawyer also went before BAD arguing that the $700 valuation was too high for the $1.2 billion rated plant and that the figure should be reduced to $300 million.

The company went as far as to threaten BAD which led to it revising their tax downwards to $627 million. During the same period, the company installed a sewerage system in Texas which led it to receiving a further $52 million tax break which brought the total tax to $575 million. This scenario shows the power that multinationals has which is capable of holding local authorities at ransom and twisting them to do according to their will.

In that year, SWISD received taxes totalling to $2.86 million from Toyota but the figure included $2 million which was part of an initial deal, meaning that in subsequent years, the educational system in San Antonio will receive only meagre amounts from the company. This scenario is played out in all other social infrastructure.

The Environment

Toyota has been named as being environmentally responsible in Texas. However, on close inspection, they have relocated all their dirty manufacturing procedures outside the US to countries that have fewer restrictions to environmental pollution. For example, auto batteries are manufactured in Mexico and steel products are manufactured in the Far East countries where the governments are lax in enforcing environmental laws. Toyota thus gets tax breaks for not polluting the US but doing it elsewhere.

Conclusion

The discussion above has drawn comparisons on how globalization affects the economy of the world through the utilization of cheap labour and the destruction of the environment. The deliberate effort by Toyota to underpay its workers and in turn rob them of their rightful dues is a pattern does not go unnoticed by the government but is in fact assisted by it to succeed.

The payment of surwages further aims to subvert the need for unionization which is a well calculated move but is however against the rules of labour. The consequence of this cheap labour and by extension globalization is a poorer society which cannot adequately fend for itself leading to poverty.

The policies that are adopted by the Toyota Company have been emulated by other multinationals leading to the same results. This means that the workers are continually being exploited for the profit of a few individuals while their governments continue to do nothing.

It is not that multinationals should not make profits; on the contrary, they should make their profits in the edicts of ethics. Paying their workers the appropriate dues does not only help that single individual but also ensures that the economy of the particular country also benefits.

While there are positives that can be associated with globalization, the bottom line is that it is a trend that threatens the everyday survival of most populations. These positives are clearly outnumbered and their effects are nowhere as catastrophic as the negatives. It is therefore my recommendation that world governments revise the operations of multinationals in order to protest their societies and the environment.

References

Berger, S., & MIT IPC. 2005. How We Compete. Doubleday, New York.

Gereffi, G. 2005. The global economy: organization, governance and development, in Smelser, N. and Swedberg, R. (Eds): Handbook of Economic Sociology.

Gereffi, G. 2006. The New Off shoring of Jobs and Global Development. International Institute for Labor Studies, Geneva.

Herrigel, G. 2004. Emerging strategies and forms of governance in high-wage component manufacturing regions. Industry and Innovation Vol. 11, Nos. 1/2, pp.45-79.

Humphrey, J., & Memedovic O. 2003. The global automotive industry value chain: what prospects for upgrading by developing countries? Sectoral studies series, United Nations Industrial Development Organization, Vienna.

Sturgeon, T. & Richard, F. 2000. Globalization and Jobs in the Automotive Industry. Final Report to the Alfred P. Sloan Foundation, International Motor Vehicle Program, Center for Technology, Policy, and Industrial Development, Massachusetts Institute of Technology. Cambridge, MA.

Vogel, R.D. 2010. How Globalization Works Toyota Motor Manufacturing, Texas (TMMTX). Global Empire. Web.

Vogel, R.D. 2006. The NAFTA Corridors: Off shoring U.S. Transportation Jobs to Mexico. Monthly Review. Web.

Introduction

The Toyota motor corporation is a Japanese car manufacturer, which is the world’s second-largest manufacturer of general motors. Regardless of this fact, it is ranked first in terms of profitability, net worth, and revenue collection. It was founded in 1937 as a subsidiary of Toyota industries.

Analysis

As a firm in the motor industry, the Toyota Corporation is also affected and or assisted by general changes within its market environment. The motor industry, just like many other industries, is affected by different national government policies or general industry changes.

There are some changes that have occurred within Toyota’s line of the field that have had tremendous impacts on its operations.

One of the major changes has been the emergence of China as an economic power in recent times. The emergence of China as an economic power has had the effect of boosting Toyota vehicle sales remarkably. China is now the leading purchaser of Toyota vehicles and, as a result, has helped to push the profits of the company even higher. This emerging market has made Toyota be the biggest seller of vehicles globally by the start of this year. The second change that has affected the companies operations has been the recent continuing increase in global fuel prices. The continued increase in global fuel prices has caused the firm to consider introducing more fuel-efficient vehicles in its production line.

On matters of opportunities and threats

Opportunities and threats are part of the wider swot analysis. Swot analysis incorporates strengths, weaknesses, opportunities, and threats. Opportunities are external advantages that accrue to a firm depending on the working of economies or other stakeholders. On the other hand, the threats are the external disadvantages that affect a firm because of its involvement with other players in the industry.

On the side of opportunities, that the Toyota Corporation can take advantage of some advantages. One of the advantages is the emergence of China as an economic power. It is surprising to note that china is also one of the fastest growing corporations for the Toyota Corporation. With continued expansion of production within the country, the company will effectively reduce logistical problems and reduce the corporation’s operations budget. In addition to this, the company is also favoured by a depreciating dollar. This has had the effect of increasing sales within the United States as well as reducing its purchasing costs.

Regardless of this fact, the company is also faced with some threats. Among these threats, one is the increasing price of global fuel prices. This has had the effect of scaling down the demand for fuel guzzlers as they are being rejected with consumers more keen on purchasing fuel-efficient vehicles. In addition to this, environmental laws and doctrines are increasingly becoming a threat to the operations of the company. This is because the required levels of pollutant waste require very costly pollution abatement materials. Furthermore, the relocation of factories to less regulated states is becoming a very costly venture as well.

Recommendations

The threats mentioned above can affect the firms business operations if not well addressed. What the firm needs to do is adopt new technologies and modes of production as time changes. On the first case, the firm should try to manufacture more fuel-efficient cars while the demand for them is still high. On the second issue, the firm should try to use less pollutant means of production or invoke some recycling professionals to recycle part of the firms waste into better uses.

References

Alan R. Rushton, John Oxley, Phil Croucher.2000.The Handbook of Logistics and Distribution Management. London: Kogan Page.

Mankiw, N. G. (2004), Principles of economics (3rd Ed.), Chicago, ILLIOIS: Thomson South-Western

Philip Hardwick (1982), an Introduction to Modern Economics, Longman, U.K

Rashi Glazer, Marketing in an Information-Intensive Environment: Strategic Implications of Knowledge as an Asset The Journal of Marketing, Vol. 55, No. 4 (1991), pp. 1-19.

‘Global complementation’ refers to a process that restructures production plants from being local producers of a good into being able to create the same product for export. This concept was first seen during a crisis situation occurring in a Toyota manufacturing plant in Thailand. Sales of Toyota cars dropped by fifty percent within a month in terms of local sales. Toyota made the decision to refurbish this plant into an export-focused facility. It took time but resulted in a beneficial outcome, with the Thailand plant being able to manufacture products for non-local sales. Toyota representatives stated that if the plant was initially designed to switch between local and international sales, the loss would be minimal.

The phrase ‘global complementation’ was coined by Toyota themselves and essentially can be summarized as a strategy that transforms old manufacturing plants to be able to shift between producing cars for local markets and manufacturing for export. It prioritizes flexibility and adaptability while minimizing the loss and time cost of restructuring plants only after observing market fluctuation. Toyota themselves described the strategy as a crisis that was turned into an opportunity.

The strategy has a number of advantages and disadvantages. The strategy is an expensive and time-consuming process as Toyota will have to restructure every plant they have in the world to be prepared for their losses in any market. If they continue to observe market failures, their transformation of the plants will have no value as there will be no demand for their products. However, this strategy also allows for plants to continue working instead of simply being shut down and thereby continue to provide jobs and profit. Additionally, the initial flexibility of new plants can be beneficial in the long term.

Ergonomics outlines how the health of a product can be enhanced to suit human comfort (Bergoffen 2005, p. 25). Since the release of the Toyota Allion by Toyota Japan, the model has stood out as the best-selling compact and sedan car that has gained market worldwide (Toyota Allion/Premio 2000 2013). The car has got a youthful, fashionable and fantastic look. Its sporty look and the appealing headlamps have acted as its marketing advantage.

Allion’s user-friendliness and undisputable driving performance are some of the other merits that the new vehicle has earned from its users. However, it is important to assess the display and design of the dashboard and to present the impacts of the systems on the driver. This new model has been improved from the second generation to accommodate the automation system, gauges, modernized indicators, and automotive navigation systems (Toyota Allion/Premio 2000 2013). The new improvements have been built to embrace the automation of the new model and to provide comfort that was not provided comfort.

The most prominent dashboard systems fitted in the Toyota Allion include the speedometer, steering wheel, odometer, tachometer, the gauges, and indicators (Toyota Allion/Premio 2000 2013). The indicators include gearshift position, the seat belt warning light indicator, engine malfunctioning light, and the parking light indicator that has been fitted in the dashboard (Abut, Hansen, and Kazuya, 2007). Considering all these systems fitted in this new model, there are many effects that the driver will experience when using it.

The speedometer is the gauge that measures and indicates the speed of the car when in motion (Kohli, 1983). The fitted gauge in this new model can allow an error of up to 5 mph whenever the car is driven at 50 mph (Toyota Allion/Premio 2000 2013). This feature protects the safety of the passengers and the driver (Wickens et al, 2004). The tachometer enhances the driver’s knowledge of how the engine’s crankshaft rotates (Parker, 2003). This new model, it enhances the driver’s selection of the gears for safe driving on the roads. The car has also been modified to have ventilated disc front brakes all at the driver’s disposal.

The odometer normally indicates the distance that has been covered with the car (Parker, 2003). The Toyota Allion has been designed to have an electronic odometer. The fuel gauge has also been designed uniquely to fit in the new model’s dashboard. This gauge indicates the fuel capacity in the tank (Parker, 2003). The gauge has got a sensing unit and an indicator. This is important since Toyota Allion consumes 17.2 km/L, and the driver should be aware of the fuel volume whenever he drives the car. This will ensure that the driver does not inconvenience anyone either from/to the airport.

The new model has got a three-spoke steering wheel as shown in the picture below.

This type of steering is manipulated while driving where each input causes a response from the device (Kohli, 1983). The new steering wheel enhances the Toyota Allion’s sporty feel. It has an adjustable column that allows adjustment on the height of the steering wheel providing the driver with ease of entering and exiting.

Other systems fitted in the vehicle include the meter panel fitted to face the driver. There is also a Valvetronic system that varies the lift of valves performing the intake functions leading to the reduction of the pumping loss as well as improving the efficiency of breathing (Ozguner, Acarman & Redmill 2011, p. 18). Others include indicators for; fuel, tire pressure, and fault in the airbag system (Toyota Allion/Premio 2000 2013). The audio system in the dashboard also enhances the entertainment aspect in the car.

All these mentioned systems have been positioned strategically to accommodate all drivers in the car. They are not far from the driver’s reach when driving which is a positive impact in terms of road safety and the car’s efficiency. In this case, 30-50 years-old male with more than 8 years of experience is suited remarkably.

The Relationship between Display and Controls

The systems that have been fitted in the dashboard can be used at various times. According to Ozguner, Acarman and Redmill (2011), the steering wheel and the brakes can be used concurrently. These two devices perform two distinct functions. The steering wheel controls the car while driving. Therefore, the driver manipulates this element to control other sections of the steering system to cause a steer on the wheel (Parker 2003). In the Toyota Allion, the steering wheel is adjustable. Therefore, the driver can easily adjust it whenever he wants to live the car or rather enter in the car. The positioning of this device is accommodative to all drivers irrespective of one’s height.

The front brakes have also been put strategically in front of the driver (Parker 2003, p. 217). The function of the brake system is only to inhibit motion. The location of the braking system is a high achievement in the design of this car. Any slight force applied to the brake system results in equal pressure felt in the whole braking systems (Daniel 2009, p. 32).

The simultaneous operation of the brake and the steering wheel is very possible in the new Toyota Allion model. The position of these two devices allows this application. The driver can operate the two with no complications. The driver does not strain whenever he operates the two devices. The use of these two devices is so effective that the driver does not have to use much force. Consequently, the operation of the two devices is compatible with the user.

The other case to consider is the operation that involves the audio system and the indicator arm. The audio system is fantastic and can be operated easily from the driver’s seat. This is attributed to the fact that the system ensures the driver and the passengers are entertained when traveling in the Toyota Allion (Toyota Allion/Premio 2000 2013). The indicator arm is an important device in the dashboard. The placement of this device is in front of the driver is a great necessity. It allows the driver to indicate the course taken by the driver.

The access and simultaneous operation of these two devices are easy. The position of the two devices in the dashboard allows this (Abut, Hansen and Kazuya, 2007, p. 37-42). The negative impact will only arise when the driver loses concentration due to the entertaining music in the car. From the users’ perspective, the operation of two devices seems to be antagonistic.

The last case we can consider is the operation of the steering wheel and the indicator arm. The functions of these two devices are compatible with the user’s perspective. The driver can operate the two controls concurrently because of how the Toyota Allion’s dashboard is designed (Toyota Allion/Premio 2000 2013). The indicator arm can be operated with one hand as the steering wheel is operated by the other. The relationship between the two devices meets the users’ prospects. The driver finds it very comfortable when operating the two devices together.

From the three cases discussed, it is evident that the association linking the devices meets the users’ expectations. The relationships feel compatible with the users’ perspective. The drivers can easily operate the systems and controls without straining.

Effects of Automation on Driving Workload

Automotive industries have achieved substantial developments in designing automated vehicles (National Automated Highway System Research Program 2001). Automation is aimed at maintaining the car-operator involvement in the system performance that will result in great awareness and reduction of some unsafe practices in the roads eventually. There are various levels of automation. Complete automation of the cars will have both negative and positive impacts on driving workload. The problems that arise due to automation include loss of manual skill (Wickens et al. 2004, p. 132). This problem arises from the car operator vigilance. The operator of the machine will be so much interested in an automated car that he or she will lose the skills of driving manual cars.

Automation has been considered in addressing the need to optimize technologies (National Automated Highway System Research Program 2001). Wickens et al. (2004) argued that the main aim of improved technology is to reduce the human workload. The result of this will be a reduced cost of labor for those who are involved in commercial cars. However, cost reduction is not the solution to the prevention of road accidents. Operating a fully automated car alongside manual cars will not be an easy task due to the difference in speed between the two categories of cars.

Automating the essential systems in the dashboard may also result in improved driving (Ho & Spence 2008, p. 158). It reduces the tasks performed by the driver so the driver pays attention to maintaining the car on the right lane. The automation of devices such as the indicator increases the driver’s capabilities. Automation of the breaks will result in reduced collisions and chances of road accidents.

Automation considered the following three activities.

1. Reducing the speed of the car.
2. Operating an indicator system.
3. Controlling the steering wheel.

With the automation system, the driver will be able to accomplish all these activities with ease (Parker 2003, p. 217). If the systems were not automated, the driver might end up concentrating on one system while neglecting the other systems. With automatic cars, the indicator device works concurrently with the steering wheel (Ho & Spence 2008). The leg will be moved to apply force on the brake while the hand will be operating the other devices. This reduces the overall activities performed by the driver as well as improving his flexibility in the car. The overall result will be a reduced driving workload.

Furthermore, automation will have some effects on drivers with different capabilities (Abut, Hansen & Kazuya 2007, p. 35). The drivers who can drive for a long period will not be affected adversely as compared to the drivers who can only drive for a short period. There will be reduced fatigue on drivers who can drive over long distances for a long period. The drivers who lose concentration easily will be comfortable while using the automated systems in the car. Therefore, automation of the cars has different impacts on the driving workload depending on the driver’s capabilities, and activities that he can perform in the car (National automated highway system research program: a review 2001, p. 14).

Conclusion

Designing and introducing Toyota Allion in the world’s market was a great achievement of the Toyota Company (Toyota Allion/Premio 2000 2013). In this light, the company will continue to benefit from this achievement.

References

Abut, H, Hansen, J, & Kazuya, T 2007, Advances for In-vehicle and Mobile Systems: Challenges for International Standards, New York, Springer.

Bergoffen, G 2005, Commercial Bus and Truck Safety, Commercial Motor Vehicle Driver Safety Belt Usage, Transportation Research Board, Washington, D.C.

Daniel, S 2009, Muscle Car Interior Restoration Guide. Pearson Education, Upper Saddle River, NJ.

Ho, C, & Spence, C 2008, The Multisensory Driver, Ashgate, Aldershot.

National Automated Highway System Research Program: A Review 2001, National Research Council, Washington, DC.

Ozguner, U, Acarman, T, & Redmill, K 2011, Autonomous Ground Vehicles. Web.

Parker, B 2003, The Isaac Newton School of Driving: Physics and your Car, Johns Hopkins University Press, Baltimore.

Toyota Allion/Premio 2000. 2013, JPNZ, Auckland, N.Z.

Wickens, C, Lee, J, Liu, Y, & Becker, G 2004, An Introduction to Human Factors Engineering, 2^nd and, Pearson Education, Upper Saddle River, NJ.

Kohli, P.L. Automotive Electrical Equipment. New Delhi: Tata McGraw-Hill, 1983. Print.

Introduction

The principles of marketing refer to the various concepts or factors that provide a framework for developing a marketing strategy. The principles inform the process of formulating the marketing objectives and strategies of achieving such objectives. The main principles of marketing include “product, price, placement and promotion” (Harker 198, vol. 4, pp. 315-327).

These principles influence the marketing practitioner’s view of the role of marketing in a business environment. This means that firms define the role of marketing based on these principles. This paper focuses on these principles by critically evaluating Doyle’s definition of marketing. The application of Doyle’s definition of marketing will be discussed in the context of Toyota Motor Corporation.

Definition of Marketing

According to Doyle (2002, p.29), “marketing is the management process that seeks to maximize returns to shareholders by developing relationships with valued customers and creating a competitive advantage”. This definition views marketing as a value addition process that helps in achieving the shareholders’ growth objectives by establishing relationships with customers. This can be evaluated as follows.

The Evaluation

Management Process

The above definition perceives marketing as a management function that focuses on the customer. This implies that firms are redirecting their attention from production to the customer in order to improve their competitiveness. This means that identification and satisfaction of customers’ needs is the most important aspect of marketing (Halstead, Jones & Lesseig 2008, vol. 13, pp. 183-192).

Therefore, marketing being a management process relies on the use of scientific, mathematical and economics techniques to achieve its purposes. These techniques help in understanding the customers’ needs and how to satisfy them. However, Doyle’s definition ignores the fact that marketing is also associated with art and creativity.

For example, the design of adverts for a particular product is a work of art that is based on creativity (Srivastava, Fahey & Christensen 2001, vol. 29, pp. 771-802). Since many marketing managers lack the art skills, the advertising activities are usually done by an external agency. For example, Toyota outsources the advertising services.

Maximization of Returns

The second part of Doyle’s definition, “…maximizing returns to shareholders…” (Doyle 2002, p. 29) implies that marketing involves exchanges that are beneficial to both the consumers and the firm’s shareholders. The shareholders benefit from the revenue accruing from the sold goods.

The consumers on the other hand benefit from the satisfaction associated with the consumption of the bought goods. Thus according to Doyle, the main purpose of marking is to improve the profitability of the firm by increasing sales. This is based on the fact that the market is perfectly competitive.

Thus the customers must be influenced to buy the product through marketing activities such as advertising (Halstead, Jones & Lesseig 2008, vol. 13, pp. 183-192). This means that if Toyota’s marketing plan is informed by Doyle’s definition, then the main objective of the plan will be profit maximization. This can be achieved through low prices in order to increase revenue as the market share increases due to price reduction.

It can also be achieved through high prices especially if the demand for Toyota’s cars is high. However, the application of this concept is usually limited by market inefficiencies such as the presence of monopolies. Monopolies for instance discourage competition and this undermines the ability of the marketing process to facilitate maximization of returns (Siomkos & Viechopoulos 2002, vol. 3, pp. 22-38).

Besides, various governments can introduce trade quotas in order to protect their local industries by limiting the sale of Toyota’s cars in their economies. This means that marketing can not always lead to maximization of returns due to market inefficiencies and external environmental factors such as regulation. Therefore, in order to maximize returns, Toyota must evaluate the influence of the macro-environmental factors on its performance.

Customer Orientation

The third part of Doyle’s definition, “…developing relationships with valued customers…” (Doyle 2002, p. 29) implies that the customer is the focus of the marketing process. This means that firms must understand the demand of their products in order to remain competitive. This is based on the fact that the demand reflects the wants and needs of the customers (Halstead, Jones & Lesseig 2008, vol. 13, pp. 183-192).

Thus all marketing decisions will be informed by the wants or needs of the consumers. For example, Toyota will be competitive if its pricing decisions are informed by the amount of cash that potential buyers are willing and able to spend on its cars. The implication of this concept is that only the marketing strategies that are inline with the needs or wants of the customers will be pursued. This calls for a mechanism for evaluating the suitability of each marketing strategy.

Besides, formulation of the marketing strategy must begin with evaluation of the needs of the customers (Halstead, Jones & Lesseig 2008, vol. 13, pp. 183-192). The rational behind this concept is that producing goods without understanding customers’ expectations can lead to wastage of resources since such goods might not be bought.

Focusing on the customer helps in producing goods and services that meet the expectation of consumers. Thus the customers will be able to receive value for their money. Customers will tend to be loyal to a firm and its products if they receive value for their money (Halstead, Jones & Lesseig 2008, vol. 13, pp. 183-192). Hence the quality of Toyota’s products must be aligned to the needs of the customers in order to ensure brand loyalty.

The concept of customer orientation views the marketing mix from the supply side and this can be explained as follows. The product represents the solution to the needs or wants of the customers. Such products will only be accepted if they satisfy the needs of the customers (Halstead, Jones & Lesseig 2008, vol. 13, pp. 183-192). Promotion represents the sources of information about the market condition.

Promotional activities help the consumers to learn about the various goods and services being offered in the market. They also give the sellers an opportunity to engage the customers in conversations. Consequently, they obtain information about customers’ wants. The price represents the value that customers attach to the goods offered in the market. Customers will only pay for prices that correspond to the worth of the products especially if the market is competitive (Halstead, Jones & Lesseig 2008, vol. 13, pp. 183-192).

Finally, place denotes access to the produced goods. It determines the customers’ ability to buy the produced goods. Thus Toyota can increase the sales of its cars if it embarks on an efficient distribution channel in the global market. This can be achieved through partnering with independent car dealerships in various markets in order to eliminate the cost of establishing branches in every country.

While Doyle believed that focusing on the customer is the best way to maximize returns, the following views oppose his perspective. First, his perspective omits the role of internal efficiency in regard to marketing success.

The marketing department must work together with other departments such as finance and research and development. This means that poor coordination of these departments will lead to a failure in the marketing process even if all the needs of the customers have been taken into account (Srivastava, Fahey & Christensen 2001, vol. 29, pp. 771-802).

For example, the finance department can fail to fund the marketing strategy on the ground that it will interfere with the firm’s cash flows. Thus Toyota’s marketing team must also focus on the role the firm as whole in the marketing process in order to succeed. Second, Doyle’s definition does not focus on the product and this can lead to failure. Customers’ feedback in regard to product development is sometimes unreliable.

This is based on the fact that customers can not predict the products that will be available to them in future (Srivastava, Fahey & Christensen 2001, vol. 29, pp. 771-802). This means that they can not inform the producers on the goods that they will buy in future. Consequently, a manufacturer like Toyota can focus on producing a product through its own research and development and then use the marketing process to create a market for the product.

Segmentation

According to Doyle’s definition, returns are maximized if the firm is able to establish relationships with valued customers. ‘Valued customers’ in this case denotes the concept of segmentation. Segmentation refers to the process of identifying the “most suitable group of buyers to target with specific products” (Siomkos & Viechopoulos 2002, vol. 3, pp. 22-38).

This helps a company to focus its resources on the section of the market that it can best serve at the existing level of competition. Thus Doyle believed that firms can realize high returns if they focus their marketing activities on particular segments of the market. For example, Toyota will be able to realize more sales if it continues to target the middle income earners who currently form the bulk of its customers.

However, most market segments usually become saturated as competition intensifies and this causes price reduction (Srivastava, Fahey & Christensen 2001, vol. 29, pp. 771-802). Thus even the most valuable segments will not realize maximum returns. This implies that in addition to the existing segments, firms must identify and establish relationships with customers in new segments.

Competitive Advantage

This refers to the “strategic advantages that one business has over its rivals in a competitive industry” (Siomkos & Viechopoulos 2002, vol. 3, pp. 22-38).

The last part of Doyle’s definition relates to creation of competitive advantages in the market. Competitive advantages are created if a firm is able to position itself as the best in the market. This is achieved if the consumers are able to identify with and remain loyal to the firm’s brands in the market. Competitive advantages are created as follows. First, the firm must analyze the influence of macro-environmental factors on its performance.

Such factors include “political, economic, social, technology, environment and legal factors” (Siomkos & Viechopoulos 2002, vol. 3, pp. 22-38). The firm must be able to exploit the opportunities associated with these factors while reducing the threats resulting from them in order to create competitive advantages. Second, the firm must analyze the level of competition in order to formulate the best marketing strategy.

Finally, the firm must understand the consumers’ behavior in regard to consumption patterns. This helps in influencing the customers’ purchasing decisions (Siomkos & Viechopoulos 2002, vol. 3, pp. 22-38). Thus the firm will be able to increase its sales and market share as the customers become loyal to the brand.

Conclusion and Recommendations

Doyle’s definition of marketing focuses on the customer and the importance of maintaining relationships with customers. According to his definition, the main purpose of marketing is to add value by maximizing returns on investments.

Even though his perspective can be used by a firm to maximize returns, his definition does not apply under all market conditions. Consequently, the following recommendations can be considered. First, the marketing process should focus on the product and organizational efficiency in addition to the customer (Srivastava, Fahey & Christensen 2001, vol. 29, pp. 771-802).

This will help in preventing failures associated with market inefficiencies and external environmental factors. Second, firms should always find new segments and establish new relationships with customers in order to avoid the negative effects of competition. Finally, the marking objectives should be informed by the firm’s vision and mission in addition to the need to maximize returns. The vision will help in realizing the overall goals of the organization.

References

Doyle, P 2002, Value-based marketing, Wiley, Chichester.

Halstead, D, Jones, M & Lesseig, V 2008, ‘The customer orientations of financial advisers’, Journal of Financial Services, vol. 13, no. 1, pp. 183-192.

Harker, M 1998, ‘The role of marketing in the company turnaround process’, Industrial Marketing Management, vol. 29, no. 4, pp. 315-327.

Siomkos, G & Viechopoulos, A 2002, ‘Strategic marketing planning for competitive advantages in electronic commerce’, International Journal of Services, Technology and Management, vol. 3, no. 1, pp. 22-38.

Srivastava, R, Fahey, K & Christensen, K 2001, ‘The resource-based view of and marketing: the role of market-based assets in gaining competitive advantages’, Journal of Management, vol. 27, no. 1, pp. 771-802.

The manager interviewed is the head of marketing department to the international company whose head quarters are in Japan, the United States Branch sells automobiles and offers financial services, and rent a car business to customers. The company has 317,734 employees all over the world however, in the United States; the employees are slightly over 70,000.

According to the manager, the success of a business is a function of the quality of its management. There are different roles and functions of management that the manager described; they are;

Planning

Planning ensures that activities are well thought and coordinated. Strategic decisions of various functions of an organization are considered when planning. It involves reflective thinking that consider an organizations goals and deriving methods to attain them. This is the initial function of management.

Organizing

Organizing is structuring of function in an organization to ensure that goals in the organization have been attain effectively. Functions must be planned in a way that there is high in production. The function also involves ensuring that experienced human resource is deployed in various sections.

Leading

To get things done, a manager must provide good leadership in the organization. He must understand various functions at his level and lead by example. People are more likely influenced by set examples by mangers instead of given directions. A good manager should ensure that he offers good leadership to the business.

Controlling

This is overseeing functions in the organization and ensuring that they are well conducted. It involves monitoring of activities in an organization.

According to the leader, the most dominant function that he does is leading people, he is of the opinion that different situation calls for different approach that need to be mastered and applied effectively.

Being a leader cuts across all the functions of a leader, it covers all areas in the leadership. The manager noted that there is a growing change in people’s perception, needs and drives; it calls for managers to lead their teams in the path that can result to success of an organization.

When asked about the main characters and attributes that he feels all great leaders have, the manager was quick to point out the following traits; decisiveness, good communication skills and visionary/futuristic.

The manager observed that what differentiates a good manager and ineffective managers is their decisiveness, secondly the effect of the decisions are only felt if the manager can make orchestrate teams, orchestrate teams are only developed through good communication. Businesses operate in perpetuity thus; effective leaders need to be visionary/futuristic.

The manager was quick to emphasize the need for effective communication strategies among teams; the manager feels that communication should be a two way where managers feel free to listen and be heard by the juniors and the same happens with the juniors. With good communication, the manager felt that organizations could attain high and build positive organizational culture.

When the manager was talking of his experience in management, he said that it feels good to see transformation occurring within an organization because of decisions made, the manager feels rewarded when he pioneers a successful project. It gives him self-confidence and raises his self-esteem.

The most frustrating times in a managers life according to the Toyota marketing manager is when top management and junior staffs fail to offer him support needed to perform a certain duty. It feels disappointing in such times since the manager feels he is going to fail but can do nothing about it.

In his final remarks, the manager advised that to become an effective and successful leader, a leader must have constantly been reading relevant materials from scholars, periodicals, dailies and books. The manager noted that leadership evolves with time so being updated is the secret to effective leadership.

Introduction

According to Larry English, the principles and strategies for information quality management have been in existence for decades. Any quality management process begins and ends with the consumers.

It starts with understanding consumers’ needs for the product, initiating quality parameters to attain them and culminates with assessing whether consumers’ requirements are attained (English, 2004). I will discuss how quality management systems are used to improve the quality of a product/service and satisfy customer needs.

I will evaluate how the Toyota Motor Corporation has employed quality management systems to improve the quality of their Corolla products. I will also talk about how the Australian Airline use its modern mobile messaging system to provide quality services to passengers at affordable prices.

Quality management system used by Toyota Motor Corporation

The Toyota Motor Corporation is the biggest car producer in Japan. It has been the largest automobile producer in the world since 2004 (Leney, 2004). Since 1999, Toyota has made aggressive marketing campaigns to encroach into the European Market (Bodevin 2010). The company hired European designers to develop cars that matched the needs customers from Europe (Vries 2001). Toyota also aimed to expand its production capacity in Europe.

For example, it launched two new manufacturing plants in 2004: the Polish plant for manufacturing manual transmissions for Avensis, Corolla and Yaris; and the Valenciennes plant in France for producing Yaris. In 2002, the company set up Toyota Motor Manufacturing Turkey, to produce Corolla sedans for export purposes (Prebil 2010).

Toyota Corolla has many competitive advantages when compared to other automobile competitors. For example, the 1998 Corolla model offered superior power with admirable economy, a comfy interior and reliability. The current model is evolutionary, fixing shortfalls without reducing Corolla’s strengths.

For instance, it is now easier to handle Corolla S than the previous Corolla LE model because it offers a well-cushioned ride. The poor air condition system has been enhanced especially in the 2004 models compared to the 2003 generations.

The interior space has been enlarged to accommodate five passengers comfortably. In addition, the current model has a superior acceleration with an automatic transmission. The gas mileage is also very efficient (about 38 for highway and 29 when driving in the city). Even the small irritations seen in previous Corolla have been rectified.

For instance, the fragile-feeling door handles have been swapped with pull and it opens handles to enable people with gloves or bigger hands open the door easily. Moreover, the exterior of the Corolla S model has been upgraded with a European-bulbous appearance. The back has smart tail-lights with assimilated amber turn indicators for safety (Zatz, 2008)

The S model has a superior rpm range when compared to other competitors. The model has an efficiently-designed pedal-to-fuel curve that makes Corolla stronger even in city traffic.

In addition, the engine is not extremely noisy under hard acceleration. Generally, the S model is easier to handle than other cars. Majority of drivers will discover that Corolla S will swiftly attend to their needs. The S model feels lively and fast even if the tires appear to complain under stress (Zatz, 2008).

Quality management system in Australian airline

Quality management system is a combination of work ethics and practices for enhancing passenger safety and upgrading boarding services in aviation industry (Smith, 2002). For example, Australian airline has upgraded its mobile messaging system to provide quality services at affordable prices (Mulholland, 2005).

The airline has launched an SMS-based boarding pass and also installed novel self-service check-in reception desks at airports to provide customers with an efficient and swift check-in services. Under this new system, all passengers receive their flight pass via email or text messages.

For those passengers who do not have check-in luggage, they immediately board the plane using the pass sent to them through email or SMS. Passengers are also allowed to select their preferred seats at the check-in reception desk. The entire process takes about 13 seconds for each passenger, compared to the previous process which took over 60 seconds (Milojkovic, 2011).

The major aspect of this messaging system is the novel scanning technology that scrutinizes the text message conveyed to a passenger’s cell phone via the boarding code SMS platform. The new mobile messaging system is able to analyze a message transmitted to any type of cell phone, including smartphones.

This represents a major technological advancement that has enabled Australian airline to issue boarding passes for all passengers. As a result, the airline recorded over 9% increase in the volume of passengers who used this service (Smith, 2002).

It is worth to note that both Toyota Motor Corporation and Australian airline have integrated quality management systems in their operations to improve the quality of their products and services respectively. These efforts mirror David Garvin’s eight dimensions of quality which he observes that consumers have diverse opinions on quality compared to that of a producer.

Garvin defines quality in relation to costs and prices. He states that a quality product (service) is one that offers performance, reliability and serviceability at an affordable price (Das 2007).

As noted above, safety management systems play crucial role in any airline operations. Experience has revealed that quality management systems enhance productivity of any organization. Given the current economic status and stiff competition in the global market, it is paramount that top-level management and employees play active roles in implementing quality management systems to provide superior products/services to meet customer needs.

Reference

Bodevin, L. 2010, ‘While Detroit Slept: Toyota Invaded the American Car Market’. Web.

Das, S. 2007, ‘Quest for Quality: Thoughts, Ideas, Concepts, Views on Quality and Process Improvement in the Information technology’. Web.

English, L. 2004, putting Quality Process in Place to Exploit Technology. DataFlux Corporation, Cary, NC.

Leney, A. 2004, ‘Vehicle Recycling on South Tawara’. Web.

Milojkovic, D. 2011, ‘Australian airline introduces SMS boarding passes’. Web.

Mulholland, K. 2005, ‘Aerospace Standard’. Web.

Prebil, S. 2010, ‘The international expansion of a company into a foreign market’. Web.

Smith, M. 2002, ‘Safety Management Systems: What’s in it for you’. Web.

Vries, W. 2001, ‘Performance, quality, Management’. Web.

Zatz, D. 2008, ‘Introduction: 2004 Toyota Corolla Reviews’. Web.