Lower Division Capstone Unit 4
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Unit 4
MEMO:
From: (., management team)
To: (Mrs. Smith, manager)
Re: (Toyota Company success story, on employee empowerment, and penetration pricing.)
Toyota Company, celebrated this year in November, of opening the new Toyota factory, in Mississippi. ((2011) Commercial Appeal). The company is one of the leading car manufacturers in the world, and has a corporate philosophy, known as the Toyota Production System. ((2011) Business Guide). One third of the companys profits are from USA car sales. ((2011) Reference for business). It strives on employee empowerment, influencing creativity from the employees and loyalty. This is part of the human resource management.
Toyotas Employee Empowerment Results:
Over 700,000 improvement suggestions were submitted to Toyota, by its employees.
Has an average of 10 suggestions per employee.
Over 99 percent of the suggestions were implemented.
Toyotas market development, and distribution, is consumer friendly and market driven. ((2011) Business Guide). It has successfully penetrated global markets and uses penetrating pricing in its strategies. Reasons for penetrating pricing, was the demand for hybrid is elastic and will gain mass appeal faster. ((2011) Gusta). The success from penetrating pricing helped them build market shares.
Toyota strives on making high quality products, while keeping production cost low. ((2011) Business Guide). One of the ways it achieved this, was the pull production method. Whereas the quality of work is dictated at each phase of the production process, and the materials are pulled for the next stage of production. This helps reduce inventory holding cost, and lead times.
If I was the senior manager at this company, I would have addressed the situation in the same way. Toyotas philosophy of empowering employees, and penetration pricing, has made the company profit, while meeting the needs of its consumers. The company has also committed to donating $5 million dollars a year for 10 years, to the school systems in Union, Lee, and Pontotoc counties in Mississippi. ((2011) Commercial Appeal).
Thank you for intrusting in me with this assignment.
Best regards,
, management team
References
Retrieved (2011)
Retrieved (2011)