The Operational Plan of a Restaurant

An operational plan for a restaurant is an outline of all the basic that are required for the smooth running of its activities. This operational basic includes of the technological investments, the menus and also the operating licenses. This is issued from any of the local authorities, where the restaurant is still subject to regular health and safety inspections. For a complete plan the restaurant is also required to have a menu which is its product brochure. This menu should basically contain a flagship product such like the manager’s special. It should also in addition have average breakfast, lunch and banquet items (Brown, 2007). The basic technology investments are inclusive of software accounting packages for secretarial and point-of-sale system.

The business of foodservice does not always hold the supply chain in the same in manner the other industries does. Theirs is quite different in regard to the focus they take, specifically, many of the restaurants focus narrowly on procurement and to some point missing opportunities to maximize operations at all steps all trough the supply chain (Bourlakis & Weightman, 2003). From here, the goods are to be taken to the restaurant where they officially are handed to the guests. It is also important to note that every step in the process presents an opportunity for improving the quality of the good. To add on the value of the supply chain the restaurant ensures quality payment of the suppliers and funds them for any training for more ideas and tactics of carrying out their business and offering services.

To successfully carry out the business of the restaurant, an alliance was made with the best suppliers who are the Shopsy’s. This is a classic and remarkable group which is the leading in Canada at catering and restaurant specialist. These partners are located in different and very distinct areas some of which are Toronto, Markham, York U, Rogers Centre and other places for the sake of offering their services (Bourlakis & Weightman, 2003). Shopsy’s had been a traditional but is getting better with age and therefore gives an almost sure estimation of improvement of both performance and remarks. The success and quality of their partners was also a source of encouragement to our restaurant partner with them. With such a history concerning the partners, requesting to connect and get supplies from the same suppliers who supplies to them was the best thing for quick and easy catch up of activities (Brown, 2007). This also was a good way to learn their ways of doing things both to their customers and to the public. The restaurant’s contingency is to be at a similar level with Shopsy’s or even better. At the moment the plan is to ensure that by the end of five years the level of performance and income is the same or nearing a similar figure. However, this is not to last for long as the restaurant is aiming higher and has its different goals from those of Shopsy’s. 

There are several ways that can be used to optimize operational effectiveness, which is a major way of maximizing the efficiency of the restaurant. Automation of activities, ensuring they are simple and optimizing resources are three major and most effective ways of achieving effective operations. Automation helps in reducing the time that is taken to carry out some wide range of functions.  This is majorly in areas such as updating and in providing the ongoing management. It becomes even more important when there’s need to carry out management of the restaurant from a centralized location (Ignizio, 2009). Simplification is aided by automaton, with automation; it becomes simple to carry out activities perfectly and fast. Resource optimization is a third way that tailors a business such as the case of a restaurant to success. This can be done by ensuring the use of a converged infrastructure platform with which there is a chance to tailor the resources in a way they match the requirements of the work that is to be carried out. This will ensure that the required amount of resources is exactly that which is provided.

References

Bourlakis, M. A., & Weightman, P. W. H. (2003). Food supply chain management. Ames, IA: Blackwell Pub.

Brown, D. R. (2007). The restaurant manager's handbook: How to set up, operate, and manage a financially successful food service operation. Ocala, Fla: Atlantic Pub.

Top of Form

Ignizio, J. P. (2009). Optimizing factory performance: Cost-effective ways to achieve significant and sustainable improvement. New York: McGraw-Hill.

Subway IP Inc.

Introduction

Subway is one of the fastest developing restaurant chains in the global market. The restaurant was founded back in 1965 by Fred DeLuca who opened the first outlet in Connecticut United States (Subway, 2016). The idea of opening the restaurant developed from Fred’s inquisitiveness to cater for his education fees. One of his family friends advocated for him to open a shop for submarine sandwich. Fred opened an outlet in Bridgeport, Connecticut using the capital which he acquired from a loan that was led by Peter Buck his friend (Subway, 2016). After some years of operation, Fred had acquired sufficient skills of learning the business which helped him enhance customer relations and experience. As a result, Subway at the early stages of development was able to offer premium quality services and products to its customers. Additionally, Fred was able to keep the operating costs low together with reaching a wider customer base. By 1974, the restaurant was a chain operating approximately 16 outlets spread all over Connecticut (Subway, 2016). By this time, the restaurant was a partnership business owned by Fred and Peter Buck. In the contemporary global restaurant chain market, Subway operates approximately 44,818 restaurants spread in 112 countries (Subway, 2016). In United States, the restaurant chain operates only 26,880 restaurants while the others are operated overseas. This makes Subway the dominating restaurant chain among the single-brand restaurant chains in the world (Miller & Washington, 2013). In terms of size, Subway is the largest restaurant outlets operator both in United States and in the world. One of the factors that have propelled the restaurant chain towards their success in the global market is an approach of being customer oriented. This means that every implementation made is by considering their customers.

Subway’s mission statement is “to provide the tools and knowledge to allow entrepreneurs to compete successfully in the fast food industry worldwide, by consistently offering value to consumers through providing great tasting food that is good for them and made the way they want it.” (Subway, 2016)       

The vision statement of the restaurant chain is “to make their restaurants and operations environmentally and socially responsible as possible.” (Subway, 2016)

The mission and vision statements of Subway are straightforward and simple. It is exhibited that the number one concern for the company is to delight every customer by making sure that they enhance their experience and relations. Additionally, which offering quality services to the customers, their vision is to ensure that their business operations pose positive impacts to the environment and the community while improving the lives of the customers, employees, franchisees and the general community. Thus, it is perceptible that the mission and vision of Subway Inc. have helped the company withhold its customer oriented culture which has in turn enhanced their operations and overall success. Additionally, the company is able to retain their commitment in making sure that their products and services achieve the desirable quality. Subway has been committed towards implementing cost effective strategies for their franchise operations. Lastly, through their mission and vision, the company has been able to adhere to sustainable initiatives on the basis of environmental conservation, sustainable energy consumption and sustainable supply chain management.    

Five Forces of Competition

The level of competition of an organization is assessed using Porter’s five forces analysis framework to determine the attractiveness of the organization in the market. The framework is based on the notion that there exist five forces that influence the competitiveness of the business together with its attractiveness in the market. Therefore, this framework helps in identifying the strengths and weaknesses of the organization especially that influences its attractiveness and competitiveness in the market. The model uses the current position of the organization in the market together with position that the organization anticipates to achieve in future. This means that the analysts in the organization can be able to assess the profitability of new products and services intended to be introduced by the company. Generally, it is recommendable that the management staff should use the model to enhance business operations. The components of the model includes threat of new entrants, bargaining power of suppliers, bargaining power of buyers, threat of substitute products/services, and rivalry from the existing competitors. Therefore, in Subway’s case, it is factual that the restaurant chain is affected highly by every component of Porter’s framework though at different extents. The following is the description of how Subway is affected by the components of Porter’s model.

• Threat of New Entrants   

Citing from the fact that there are low entry barriers derived from low consumer switching cost, it is perceptible that restaurant industry is highly susceptible to new entrants threat. This is derived from the fact that the capital requirement to start the restaurant business is relatively lower and it is easy to operate.

• Threat of Substitute Products/Services

It is perceptible that there are numerous convenient outlets that offer foods and services offered by restaurants. This means that there is variety of alternatives for the customers in the restaurants market. Thus, Subway as an organization in restaurant market is affected by the threat which obliges it to implement an appropriate marketing strategy.

• Bargaining Power of Suppliers

There is a relatively low pressure by the bargaining power of suppliers to the restaurant market. This is because suppliers appear unwilling to lose Subway since the ingredients of their products are highly demanded always.  

• Bargaining Power of Buyers

The brand loyalty in Subway’s market is relatively lower as the restaurant offers distinct types of subs and proposes making own subs. Additionally, competitors such as Quiznos have larger subs thus giving the suppliers bargaining advantage. Lastly, large customer base served by Subway results to a corresponding increase of suppliers’ bargaining power as the company cannot be able to satisfy market demands.  

• Rivalry from the Existing Competitors

The main competitors to Subway include McDonalds, Quiznos, Burger King, and A&W. the stiffness of this competition is based on factors such as price, products/services and overall market changes.

SWOT Analysis   

It is factual that marketing strategies implementation is very complex as it obliges the organization to go through a series of processes prior to executing it. However, the appropriate method to use while planning for the marketing strategy is use of SWOT analysis. SWOT analysis helps the organization identify strengths and weakness together with opportunities and threats that might influence its performance in future. Therefore, in this case, Subway outlets tend to leverage their strengths and utilize existing opportunities which helps them confront their weaknesses and threats to obtain desirable results.

Strengths  

One of the strengths of Subway Inc. is based on size and number of outlets that the company operates. This helps Subway in competing effectively in the market as it is able to make implementations regardless of the cost. The other strength is based on the product line where the company offers variety of products and services that satisfy market demands. The other strength is that Subway uses nontraditional strategies to expand their markets. Their products adhere to healthy living standards that have been a major concern in the contemporary society. Furthermore, Subway enjoys global brand recognition which lowers their cost of marketing for their products. The other strength is based on low franchise startup costs which helped the restaurant penetrate the market easily and operate effectively.

Weaknesses  

The major weakness of Subway is use of old-fashioned décor for their franchise shops. Withholding this décor since the foundation date has affected the competitive advantage of the restaurant significantly. The other weakness is that Subway’s services delivery is consistent from outlet to outlet. Additionally, the company exhibits a high turnover rate for their employees in all franchise outlets (Berfield, Patton & Chaussee, 2015). Therefore, it appears that Subway is not able to control culture of its franchise outlets because of the market diversity.

Opportunities

1. Subway has the fastest global development than any other restaurant chain in the global market.
2. High demand in the market served by Subway promotes growth and development of their brands.
3. Improved franchise relations help the restaurant chain reach out a wider customer base from different markets.  
4. High performing competitors give Subway a comparison platform while making implementations thus increasing its competitive advantage.
5. Partnerships and alliances with the suppliers help the organization offer variety of products in their menu for different target market segments.

Threats

1. Food contamination is one of the threats that might affect the performance of Subway because it is easy to lose customers to other alternatives.
2. Franchise litigation and government regulation on the basis of health standards is predicted to increase in different markets served by restaurants.
3. The current nature of global economy makes most markets susceptible to economic crises which will affect the performance of Subway in those markets.

In order for Subway to capitalize on its strengths and opportunities, and minimize its weaknesses and threats, it has to adhere to the market development strategy. Market development strategy is an approach that is used to source new more markets for the business to operate in. In the process of sourcing new markets, Subway will be able to implement other approaches of fitting in the new markets selected. Precisely, the company will utilize opportunities in the market together with its strengths while adhering to cultural demands of the market served to minimize threats and weaknesses.

Corporate Level Strategies      

1. Diversification

Diversification is an approach where the company ventures new markets that are totally different from the targeted markets. In order to reduce market risks, the company should venture in the trending current markets such as real estate, financial and mobile phone markets. However, the company might not engage in the production process in these markets but should make sure that they play significant roles. This would help Subway in tackling future threats while increasing its competitiveness and profitability in all markets served.

1. Product Development

It is factual that regular improvement of the product and services offered by the business helps in increasing the competitiveness of the organization. Therefore, for the rising concern on healthy living by the consumers, it is recommendable for Subway to develop their products to make sure that they satisfy consumer demands (Subway, 2013).

Business Level Strategies

1. Marketing

In their marketing strategy, Subway should make sure that they address factors affecting current market which include health, product improvement, freshness and satisfaction of consumer demands by the products. The major objective of this is to assure customers that products offered by Subway are healthy and improved according to the changes in their concern.

1. Price Leadership

Citing from the fact that Subway is competing with large restaurant chains which exhibit economies of scale such as McDonalds and Burger King, it is recommendable for Subway to use pricing strategy for competitiveness. This means that they should offer their products and services at lower prices in order to attract new customers and retain the existing ones.

In order to communicate the strategies recommended above, the company can use either formal or informal channels to make them known to all stakeholders. Some of the formal methods of communication that can be used to communicate the strategies include meetings, email, newsletters, posters, and conference calls. Except for the, newsletters, posters, and conference calls, it is factual that formal methods are effective in making sure that the stakeholders have received the message. Additionally, formal methods facilitate immediate feedback from the stakeholders. On the other hand, some of the informal methods that can be used to communicate the strategies include voice mail, lunch meetings and personal short conversations. These methods are used to address the stakeholders personally and individually in order to capture their ideas. Generally, it is recommendable for the company to use informal methods first before going to formal methods. This is based on the fact that it will help capture ideas of different stakeholders and by compiling these ideas; it is easier to modify the information to be addressed in the meetings, email, newsletters, posters, and conference calls.

Corporate Governance Mechanisms 

The first corporate governance mechanisms used by Subway is partnership with Doctors Associates Inc. which assures the customers of the restaurant that products offered are healthy and of premium standard. The partnership with Doctors Associates Inc. helped the company operate overseas to a level of developing in those markets where it owns more than 15,000 outlets in foreign markets.

The other corporate governance mechanism is adherence to original management since the foundation date. It is factual that Subway’s top management which is controlled by the founders of the company has never changed since 1965 (McFadden, 2015). Precisely, what changes is the management of the outlets operated by the organizations where different staff members and regulated and shifted frequently. This has promoted continued success of the restaurant chain in oversea markets because employees are given chances to acquire experience in operating in different markets.

Partnership between Fred DeLuca and Peter Buck can be regarded as the determining factor for the overall success of Subway Inc (McFadden, 2015). This is based on the fact that it has promoted sharing of ideas in the management of the business which resulted to the idea of overseas operation of Subway. However, in order to increase the performance of the company and enhance its ability to adopt the current trends in the market, it is recommendable for the company to assign the top management to personnel from outside who have experience in the contemporary management of businesses. This is based on the argument that Fred DeLuca and Peter Buck might be using traditional management strategies which the reason behind problems such as withholding traditional décor of the restaurant outlets even in foreign markets. Generally, adopting new management strategy will help Subway adapt to the current trends in the market thus enhancing its competitive advantage currently and in the future.

Corporate Social Responsibility      

Citing from the vision of Subway Inc., it is perceptible that the company has been concerned not only in expanding their operations but also in community building and environmental conservation (Subway, 2016). As a result, Subway has partnered with American College of Cardiologists (ACC) to encourage the society to eat and live healthily. Additionally, the company has been engaging in different events such as sports in order to benefit youngsters to be active in the community. On the other hand, the company has adhered to environmental leadership, for example back in 2010; the company was able to reduce carbon emissions by more than 100,000 metric tons by shifting to electrical energy (Subway, 2016). From then the company has been utilizing energy effectively as a way of preventing environmental pollution. Lastly, the company has been engaging in donations and sponsorships for charity and education institutions to facilitate excellence of the community (Subway, 2016). Generally, these activities have enhanced brand recognition of the company thus increasing its competitive advantage and profitability.

References     

Subway (2016). Social responsibility. Retrieved from http://www.subway.com/en-us/aboutus/socialresponsibility

 Miller, R. K., & Washington, K. (2013). LARGEST CHAINS IN METROPOLITAN AREAS. Restaurant, Food & Beverage Market Research Handbook, 74-88.

Subway Restaurants Healthy food for health-related environments. (2013). Caribbean Business, 41(20), B28-B29.

Berfield, S., Patton, L., & Chaussee, J. (2015). JARED ISN’T SUBWAY’S ONLY PROBLEM. Bloomberg Businessweek, (4434), 38-45.

Subway (2016). History. Retrieved from http://www.subway.com/en-us/aboutus/history   

McFadden, R.D. (2015). Fred DeLuca, hands-on co-founder of subway sandwich chain, dies at 67. New York Times. Retrieved from http://www.nytimes.com/2015/09/16/business/fred-deluca-co-founder-of-subway-sandwich-chain-dies-at-67.html?_r=0  

Four Corporate Level Growth Strategies

Vertical level growth strategy

Vertical strategy of growth refers to a firm expands into other business operations with an aim of reducing reliance on others during production and distribution. This strategy needs the firm to take on new aspects in order to operate the business. A firm can integrate by finding a way of creating its own sources of supply by either acquiring another company or establishing a subsidiary company and this act is known as backward integration (Harrigan, 2003). A firm may also integrate by moving into an area so as to serve as a customer for its products. This process of setting its own selling units is known as forward integration.

Literature review

Hyland (2013) asserted that vertical growth strategy is one of the most popular forms of growth strategies since it enables the company to attain control over suppliers and distributors giving the company more power within the market hence minimizing the costs of transactions and securing distribution and supplies channels.

According to Stuckey & White (1993), the principle importance of vertical strategy of growth is that firms are allowed to reduce total costs as they internalize the value that would be profits to other firms. For example a grocery store can spend $ 8,000 to do an activity that costing $ 4,800 to a trucking firm. Therefore, when it buys a truck and hires a driver, the grocery store will only spend $ 4,800. However, it is risky, expensive, complex because it hard to reverse it hence it requires a firm to partake of it after adequate analysis (Perry, 1975). There are instances when vertical growth strategy becomes useful and at times, it is not necessary for a firm (Stuckey & White, 1993). This therefore calls for managers to have a deeper knowledge on when it is important to vertically integrate and when not to.

Stuckey & White (1993) assert that there are four reasons for vertical growth strategy to take place. For instance when the market is too risky and not reliable, vertical growth strategy is necessary. It is also necessary when companies at other stages of industry have a powerful market than those at similar level with your company. Also, vertical growth may also be recommended to occur when it is expected to create market power through raising barriers to entry. Vertical growth strategy may also fail when its transactions are so risky contracts to improve on these risks are so costly (National Research Council (U.S.), 2009). A failed vertical market is characterized by few sellers and buyers, higher asset intensity and frequent transaction.

Horizontal level growth strategy

Horizontal growth strategy refers to an act where a firm expands by combining together with other firms in the same level of production. It involves addition of similar new products to existing ones, expansion of business activities into a bigger geographical region with an aim to broaden the existing organization (Hill & Jones, 2008). It also helps to develop the customer base by embarking on more businesses. It also means network building by embarking on more events carried out by various firms. Horizontal growth strategy is important because it reduces the wasteful competition existing among firms of the same level. It is a source of economies of large scale operation. It also provides control over market which increases the company’s competitiveness. However, horizontal growth strategy is associated with the following disadvantages; there is always a risk of overcapitalization (Goldsby & Martichenko, 2005). Consumers may also be exploited as a result of a firm becoming a monopoly.

Literature review

Gerald & Elisifa (2013) affirm horizontal growth as a strategy used by organizations to sell particular products in various markets. This strategy is proved to be so popular in marketing compared to vertical growth strategy. This particular strategy is more popular where firms are acquired or merged in the same industry and at the same stage of production for example a motor vehicle company amalgamates with another motor vehicle company.  Hyland (2013) stated that horizontal growth strategy helps to strengthen the position of the firm in the industry. Additionally, it allows the firm to become more competitive.

Conversely, Knapp (1988) argues that horizontal growth entails expansion of a particular firm well established in the industry which helps the firm to grow its share in the market for a certain product. However, horizontal growth strategy is important for a standard competitive organization intending to improve its position in the existing competition in the industry (Werden & United States, 1996). This can be achieved through external and internal means.

Concentric growth strategy

Concentric growth strategy is a business strategy where a firm expands through adding new but related products with a purpose of increasing the value of the firm. This strategy is always useful to small business owners as they look on how to growth their businesses (McKechnie, 1998). Usually, this strategy does not involve merging or acquisitions but increasing the current business operations. Under this strategy, the firm does not only serve the existing customers more fully, but it also increases its market share by availing new products to new customers. Concentric growth strategy is important because it allows the firm to build its proficiency in a related area. This strategy may be effective in the event that adding new and related products will increase current products’ sales.

Literature review

Bernard & George (2014) suggest that concentric growth strategy involves firm diversification into other businesses related to the current business. The strategy enables the reduction of associated production costs in the business. For example a firm dealing in water projects device plants generating power during the process. In that case, the firm is trying to build a business around other businesses with value chains possessing strategic fits for competition. Similarly, this strategy of growth can be described as a way of adding new and related products by a particular firm. It involves expansion of a given firm into related products but in a distinct area.

Concentric growth strategy involves building a firm around businesses with its value chain possessing competitive valuable strategic fits (Arthur, 2004).  Strategic fit occurs where activities consisting of different value chain are similar enough to offer opportunities for the firm to diversify. Pearce and Robinson (2010), state that concentric growth strategy is a grand strategy involving second business operations that benefits from accessing the core competencies of the firm also referred to as related diversification. Maurer (1990) states that strategic fit occurs where value chain in differing businesses offer opportunities for transferring cross business resources by uniting the performance of activities in the related value chain.

Conglomerate growth strategy

Conglomerate growth strategy is a business strategy where a firm expands by adding new products that are considerably different from the firm’s existing products. It occurs when a firm expands to another area totally different from its current business (Amit & Livnat, 1988). This strategy is normally based on the rationale that expanding into a different industry has a very attractive potential. The most common reason to pursue this strategy of growth is the limited opportunities in the firm’s current line business which therefore requires a firm to find other opportunities in other types of business (Herger & McCorriston, 2016). Furthermore, a firm may also pursue this strategy as a way of increasing its growth rate. This strategy becomes effective i case the new operation has greater opportunities of growth than those in the previous business. Possibly the biggest disadvantage faced with this strategy of growth is the increased administrative problems.

Literature review

Grigorieva and Gorbatov (2015) state that conglomerate strategy of growth involves merging of several firms or organizations from differing industries into one corporate structure forming a single headed company with subsidiaries. Through this strategy, firms get opportunities to enjoy effective resource allocation through financial synergy and internal market capital. Firms have the capacity to boost their effectiveness in the emerging markets (Knecht, 2014).

Voskanyan (2015) defined onglomerate as a corporation made up of various smaller, independent companies that are able to operate across several sectors or industries. In spite of the possible benefits associated with this strategy, the firm may face a challenge of becoming so big which makes it difficult to be efficiently managed. This can result into lack of focus exacerbating managerial problems hence reducing shareholder returns. This is why some subsidiaries have been left as stand –alone entities.

References

Hyland Brian. June 2013. Growth Strategies for SMEs. Baker Tilly & Ryan Glennon.

Harrigan, K. R., & Harrigan, K. R. (2003). Vertical integration, outsourcing, and corporate strategy. Washington, D.C: Beard Books.

National Research Council (U.S.)., & National Research Council (U.S.). (2009). Evaluation of NSF's program of grants for Vertical Integration of Research and Education in the Mathematical Sciences (VIGRE). Washington, D.C: National Academies Press.

 Stuckey, J & White, D. (1993). When and when not to vertically integrate. Copyright © 1993 by the Sloan Management Review Association. All rights reserved.

Perry, M. K. (1975). The theory of vertical integration by imperfectly competitive firms. Stanford: Center for Research in Economic Growth, Stanford University.

Absanto, Gerald and Nnko, Elisifa. (2013). Analysis of business growth strategies and their contribution.

Hill, C. W. L., & Jones, G. R. (2008). Strategic management: An integrated approach. Boston: Houghton Mifflin.

Goldsby, T. J., & Martichenko, R. (2005). Lean Six Sigma logistics: Strategic development to operational success. Boca Raton, Flor: J. Ross Pub.

Knapp, W. M. (1988). Event analysis of horizontal mergers and acquisitions in U.S. airlines and eight British industries.

Werden, G., & United States. (1996). The entry inducing effects of horizontal mergers. Washington, D.C.: Economic Analysis Group, Antitrust Division, U.S. Dept. of Justice.

Bernard Oyagi Marangu Wilfred, and George Gongera Enock. An analysis of concentric

Arthur A, Thompson J. (2004), Strategy: Wining in the Market Place, Core Concepts

, analytical Tool and Cases. New York: McGraw-Hill Irwin.

 Pearce, J. & Robinson, R. (2010) Strategic Management; Formulation Implementation

And Control, McGraw-Hill Irwin U.S.A.

McKechnie, N. H. P. (1998). A study in concentric diversification.

Maurer, B. A. (1990). The evolution of concentric diversification of sports franchises and media entities.

Grigorieva Svetlana & Gorbatov Georgii. 2015. Puzzle of corporate diversification efficiency in

bric countries. Basic research program working papers. Series: financial economics. WP BRP 47/FE/2015.

Amit, R., and J. Livnat. (1988) "A Concept of Conglomerate Diversification." Academy of Management Journal 28 (1988): 593–604. : http://www.referenceforbusiness.com/management/De-Ele/Diversification-Strategy.html#ixzz4JBEZ5yA3

Voskanyan, R. O. (2015). Implementing A Strategy Of Innovation Company Value Growth Through Conglomerate Mergers. Economic Analysis, (1), 54-60.

Herger, N., & McCorriston, S. (2016). Horizontal, Vertical, and Conglomerate Cross-Border Acquisitions. IMF Economic Review, 64(2), 319-353. doi:10.1057/imfer.2015.42

Knecht, M. (2014). Diversification, industry dynamism, and economic performance: The impact of dynamic-related diversification on the multi-business firm. Wiesbaden: Springer Gabler.

            Fast Food and Restaurant

            The environment is essential in determining the progress of restaurants as it is a major determinant of consumption. Weather changes affect restaurants operation as traffic and sales are influenced.  Based on the national survey that was conducted in 2011, most restaurants are normally affected by the weather conditions changes.  Fast foods restaurants are mostly affected because they make the major section of all the restaurants.

            Weather effects on restaurants operation come in the major distinction which is based on the kind of restaurant that is involved.  Destination restaurants that are mostly situated in areas that are characterized by negative weather conditions are bound to suffer in regard to customer traffic as well as sales capacity (Jandi, 2016).  On the other hand, those restaurants that are situated in shopping areas are likely to attain benefits when the weather is not pleasing. This is mainly because consumers always flock the shopping places as they are forced to spend their time doing shopping all even dining (Jandi, 2016). Cold weather is associated with increased eating as individuals tend to spend most of the time dining in order to overcome the cold. These, therefore, increase the sales volume of those restaurants that are located in the shopping centers.

            Moreover, inaccurate weather forecast affects restaurants circulation and sales volume. This is because the inaccurate forecasts cause tourists to change their plans to a particular place of destination. This, therefore, frustrates the restaurant's operators after the weather turns out to be okay contrary to the predictions (Jandi, 2016).

            In order to overcome the external issues restaurants are necessitated to utilize financial analysis (Jandi, 2016).  Planning should also be conducted to ensure that those seasons that are characterized to have more consumers and those that are expected to have less are accounted.  This will help the restaurants to be able to develop a market strategy that can effectively handle the outcomes of the weather variations (Jandi, 2016). This may include the use of marketing events or even staff scheduling to reduce the operations costs when sales decrease. In addition, the restaurants can change their menu based on weather changes. Cold weather demands hot drinks and easy meals.  Market opportunities and trends should be established in order to grow the restaurants market segments (Jandi, 2016).

            Reference

            Jandi. (2016). Weather Impacts Restaurants Sales and Traffic. Retrieved From http://www.kng.com/blog/food-and-beverage-news/weather-impacts-restaurant-sales-and-traffic/

Joint admission development
        This approach is basically used as a method implemented for the development of the business system. The core function of this approach is to integrate information technology and the business society in a well thought-out practicum setting so as to bring about consent that is based on the business system prerequisites. JAD approach was basically established with an aim of improving the systems requirements determination approach (Marchand et al 2000). This approach is a facilitated group method that offers a meaningful emphasis on the human influences on the system development and apparently confronts communication matters. The approach has been widely accepted as it leads to the advancement of the systems needs as it uses free interaction group method where there is unstructured communication that has no control. This, therefore, calls for the JAD approach to critically rely on the excellent facilitation so as to deflect these unstructured communications that result to dysfunctional conducts (Duggan et al 2003). The integration of the nominal group method at relevant intervals during the JAD meetings is significant as it restricts the group dynamics. Nominal group method is more structured and is assists the people to collaborate within a restricted environment. This, therefore, increases the effectiveness of the decision-making process. As the facilitators in the JAD, meetings offer their teachings they use visual aids that assist them in the delivery of important content (Duggan et al 2003). The five processes include the definition of the JAD meeting, familiarizing with the research product, and preparation of the visual aid, conduction of the meeting and lastly the drafting of documents of the JAD meetings (Marchand et al 2000).

        In conclusion, the JAD requirements meetings and focus groups are important factors in the success of iterative development advancement. It is through these forms of requirements and examination programs used, that allows for a mutual requirement gathering and design.

Thus the entire team conducting the JAD project will be able to offer an agreement that is based on a high-level requirements deliverables with the shortest time period.

References
        Duggan W. & Thachenkary S. (2003). Higher Quality Requirements: Supporting Joint Application Develoment With The Nominal Group. Kluwer Academic Publishers.
Marchand, Davenport and Dickson.(2000). Mastering Information Management. Prentice Hall.

Special topics in logistics

Nike, the world’s leading footwear company for sports is currently determined to embrace environment. Nike’s efforts are grounded on the vision of creating sustainable economy that favors the planet, the people as well as the company in terms of profit. In this regard, Nike has taken an initiative of designing products and persuading their chain supply as it balances it with protecting the interests of sports all around the world. This plan has been in place since 1990’s whereby it has embraced practices such as recycling shoes and designing sport accessories from the waste products to reduce its environment fingerprint. Nike has gone an extra mile to work with different NGOs who have shown their interests in taking part in environment conservation (Global Compact., & United Nations, 2007).

The objectives of this company and aims have been placed in a scheduled timeline whereby by 2005, they introduced a product line that insisted on designing those products that could be easily sustained based on the principles of sustainability. By, 2011, the company announced their target of manufacturing the footwear at the minimum environmental standards. Accessories and apparels were scheduled to be done by 2015 while the sports equipment targeted to be done by 2020. Nike has so far made tremendous steps in embracing the environment as it shall be discussed concerning the friendly environmental forms of manufacturing that has been adopted by the company Global Compact., & United Nations. (2007).

First, Nike has invested much of its resources in establishing new and innovative means of designing products that are environment friendly. This has been evident by how the company has managed the power consumptions and resources which are globally needed to run the manufacturing processes. The raw products for Nike’s production are basically water, textile materials as well as energy which are progressively running scarcedue to competition Global Compact., & United Nations. (2007). Nike has therefore customized its line of product so as to afford a variety of products that meet market demands for sports.The company has also taken advantage of the popular brand value to spread the message of environmental conservationon global basis and action. This invites other manufacturers to collaborate with Nike to conserve environment. In this regard, therefore, Nike has spent the last decade to gain the full understanding of how environmental impacts can be reduced across its levels of production.

The Nike Company has focused on high-volume materials that have low impact on the environmental degradation. These materials include recycled polyester as well as Better Cotton. Through the recycling program, the company is progressively approaching the critical work of achieving a closed-loop future (Lumpkin & Katz, 2011). Waste products are remanufactured and turned into premium products. The company has made a historical achievement of diverting 92% of its total waste from being drained as landfill by transforming it into premium materials used for designing the footwear accessories. The only impact is much felt when the manufacturing is processing and finishing the materials and this would require smarter minds to come up with strategic remedies for this (Lumpkin & Katz, 2011).

Next, Nike has established a two-fold energy strategy whose main focus is to maintain efficiency measures and balancing the transition into renewable sources of energy. In 2008, Nike launched the Energy and Carbon power and many achievements have been recorded. The energy consumptions have reduced by half a unit which implies that even the emissions have been reduced by half. This was a long-term strategy which is expected to drive Nike into more achievement up to greater levels of environment friendliness.

Nike offers a wide range of sport related products that uniquely fit each kind of player. Some of these items include sport shoes, clothing such as shorts, track suits and t-shirts, bags, swimming costumes, watches, eyewear, sport-designed socks, balls, volleyball and football nets among other numerous tiny but essential accessories. All these have been integrated by Nike with an aim of nurturing talents and equipping the various players with every relevant costume or tool for their comfort (Pimentel, Westra & Noss, 2000). The company is also continuing to seek creative and innovative ways of coming up with more integrated products for sports. These products however depreciate in value as they get used up in the players’ courses. Some of them are usually damped while others are recycled back by Nike for reproduction. They are disposed as described below:

First, the company delivers it products using apaper-bug package. The carton box was initially used and could just be disposed soon after the good was delivered to the customers.Thecompany hashad a difficult time trying to be creative to come up with an innovative design that came to reduce packaging waste. With the assistance from the engineering table, the company came up with alternative packaging box which could save 30% of material that the previous one used. It was recyclable and by the end of 2011, it is estimated that the boxes saved 200, 000 trees at annual basis just because of the improved packaging. Nike has also cherished in supplying bags for sports that are suitable enough tocarrya number of accessories.These bags are however designed firmly such that they last long. They are however recycled by other companies when they are used up for refurnishing (Pimentel, Westra & Noss, 2000).

The company also manufactures some clothing such as t-shirts, sweaters and socks among others usually labeled Nike. These are basically essential to the players such as the footballers and athletes among other sports. These accessories are however not manufactured in bulk and therefore their disposal is minimal. The clothing however should be recycled because they have a significant impact on the environment especially soil pollution (Pimentel, Westra & Noss, 2000).

In conclusion, the Nike Company has made recommendable job in balancing between meeting its needs, those of the customers as well as those of the adjacent environment. Major items such as shoes and clothes are usually recycled to make new and premium products for sale. The company has also redeemed resources that are commonly used in the production such as water and energy. The company is indeed determined to manage its operations to ensure that the products and the production embrace environmental friendly standards. Other minor accessories including watches, eyewear, swimwear, are not rampant enough to be considerably counted because the area of focus for the company is sport shoes (Pimentel, Westra & Noss, 2000).

References

Global Compact., & United Nations. (2007). Embedding human rights in business practice II: A joint publication of the United Nations Global Compact and the Office of the High Commissioner for Human Rights. New York, N.Y.?: United Nations Global Compact.

Lumpkin, G. T., & Katz, J. A. (2011). Social and sustainable entrepreneurship. Bingley: Emerald Group Pub.

Pimentel, D., Westra, L., & Noss, R. F. (2000). Ecological integrity: Integrating environment, conservation, and health. Washington, D.C: Island Press.

‘Structure follows strategy’

Introduction

According to Chandler, structure is referred as the organization design which is made from effective communication and authority from administrative offices (Chandler, 2003). These aspects are essential in creating effective coordination and planning the organization goals and policies. Chandler implementing a strong thesis which asserts that ‘structure follows strategy’ and the important purpose of this thesis is to clarify that structure is created when various basic strategies are made.  In order to understand that  strategy play a  great role in forming a  structure, Chandler asserts that  organization structure is made by  two types of strategies  namely,  vertical  integration strategy and  diversification strategy (Chandler, 2003).  Vertical integration strategy is applied when planning to implement administrative office in local areas,   forming departmental structure and forming multidepartimental structure.  Diversification strategy is applied when forming a multidivisional structure in the internal scale or in others when developing new products.  From above explanation, it is clear that structure follows strategy since the organization must first create clear strategies and then develop a structure.  Strategy comes first for the purpose of defining organization objectives, examining the external and internal environment and examining the organization opportunities and weaknesses in order to form a structure (Chandler, 2003).  Structure and strategy are related in every organization in that strategy is defined as what the organization is aiming to achieve and structure is defined as how the aimed things will be achieved.  Generally, organization creates strategies and then forms a structure which impacts the organization performance.

            An effective organizational strategy creates a strong organization structure which brings the success of a firm.  An organization cannot start a business if it has not positioned the strategies to follow in order to achieve the success.  Hill & Jones (2012) asserts that an organization must hold various strategies such as prospector and this is a business strategy which helps the business to identify new opportunities and the capability of implementing new innovations.  Second, business must follow the strategy called analyser in order to examine the customers’ behavior and the activity of competitors in order to compete successfully through providing comparable products with affordable prices. Third, business must follow the low cost defenders strategy which entails the targeting of segments market and providing standardized practices and products with low cost. Last, it is important for an organization to follow the strategy of differentiated defenders which is based on targeting markets by providing differentiated products (Hill & Jones, 2012).  All these strategies helps to understand that before creating an organization structure, it is important to analyze strategic ways which the structure will follow in order to maintain the business.  In corporate strategy, executives start by analyzing the industrial condition which operations are done.   They carry out all the important roles such as analyzing the competition, strength and weaknesses and they create a strategic position where they can build a competitive advantage.  For the organization to achieve its competitive advantages, it applies various strategies such as human resources management, manufacturing, budget allocation and more (Shafiee, Razminia & Zeymaran, 2016). This indicates that strategy shapes structure since it first plans on the vision and then organization structure in which the vision will be accomplished.

Organization structure is an important factor which determines organization effectiveness through encouraging relations in administration hierarchy and providing control.  It improves performance by ensuring that there are effective operational processes, responsible supervision and effective flow of information (Shafiee, Razminia & Zeymaran, 2016). Generally, organization structure improves performance by ensuring accountability, responsibility and availability on human resources.  Performance is highly achieved through the framework which helps smooth operations.  There are different types of structures such as functional, network, matrix and more and all these ensure that performance through different elements is highly achieved. According to Frankenberger (2016) there are four elements of organization structure with holds the type of structures needed for smooth operations. First, performance is achieved through span of control and this entails the number of supervisors who ensures proper coordination, accountability, level of management and task processes.  Thus, span of control as important element of organization structure improves performance since corporate leaders are responsible and accountable for   better management and employee development to (Frankenberger, 2016).  Second, performance is achieved through departmentalization which entails the grouping of workers into different departments such as function network.  Thus, centralization is a special element in corporate structure which ensures that there is an effective decision making from the upper level.   Performance is achieved through workplace harmony, reduction of production cost and solving organization crisis.  Last, corporate structures ensure good performance by applying an important element called decentralization which is based on decision making by lower levels.  Employees are empowered and they are able to adapt and to react to organizational changes (Frankenberger, 2016).

A corporate structure has a significant effect on organization performance and various researches and studies have confirmed that many organizations fail due to lack of a definite structure.  Structure in an organization play a significant role in division of task and activities coordination in order to achieve the organization goals and objectives. Organization is made up by different departments such as manufacturing, advertising and sales and all these departments play a crucial role of shaping the organization structure.  This means that unless the department and culture supports the structure, then the structure would be meaningless (Janićijević, 2013). Therefore, organization structure determines the performance and success since it holds the management decision. Organization structure and strategic decisions impacts the organization level-outcomes. Corporate strategy empowers the organization to realize its set objects, protects shareholders and meets legal requirements. Corporate structure has a mutual impact on organization performance since the structure has the power to understand the peoples’ behavior (Schein, 2010). On the point of people’s behavior, the article asserts that organization performance is achieved from organization culture which is made by organization structure.  Culture in an organization acts as an intrinsic factor and it is valued as it determines the behavior of people in organization operations with respect to the norms, attitudes and assumptions.  Organization structure acts as an in extrinsic factor in people’s behavior and it influences the way people conduct themselves through   authority distribution, coordination and more.  Thus, culture and structure are related since they influence each other in determining behavior toward organization performance (Schein, 2010).  Organization culture involves structural dimensions based on examining the members’ behavior toward achieving organization goal.  Structure involves different models which influence culture since people use the models to make decisions, conduct activities and coordinate with organization.  

Wabha (2015) asserts that corporate structure includes knowledge management which   improves performance.  Knowledge management is defined as the process of producing, storing and sharing valuable information. Organization structure consists of principle of knowledge management which is derived from availability of resources, effective management of information system, management of organization change and management of human resources.  For example, corporate structure has educational programs, good library and more and these resources improve organization’s knowledge management (Wahba, 2015).  Organization structure ensures good performance through knowledge management in that it shapes communication patterns, implement effective decision making and new ideas.  It is important to note that knowledge management itself improves performance as it acts as a strategic tool in  operational efficiency, provision of best practices,  provision of abilities for strategic organization plans, generating new revenues, protecting intellectual capital,  improves decision making and helps in other many areas (De, 2014).  Due to the rapid change in organization in terms of  information technology,  quality structure play a great role in addressing the environment variables in order to meet a  balance of stability and change. Thus, knowledge acts as a strategic resource and learning the knowledge is the strategic capabilities for smooth operations.  Knowledge which is produced by the organization structure ensures smart decision, effective planning and design of provisions intuitive.  In the application of knowledge, corporate structure  focus on the distribution of power and making decision making  in the internal structure  and the ability of personnel in creativity. Organization structure provides formal mechanism of relationships, communications and authority between superiors and subordinates (Csaszar, 2012).  Focusing on the various elements of organizational structure, it is important to note that the units applies knowledge management  to the structures which requires environment changes and ensures performance by ensuring smooth operations.  Corporate structure is also responsible for performance by focusing on market development through the provision of strategy-performance link. Corporate structure provides strategies based on marketing organization, international markets, multi-channel systems and more.  In addition, it employs a specialized structure which helps in the behavior adjustment and adapting to market changes which are unpredictable.  Structure provides the managers with strategies which should be used in market perspectives (Csaszar, 2012).

Lee, Kozlenkova and Palmatier  (2014) brings in another concept of  organization structure  in organization and asserts that  organizational performance  is achieved in the areas of marketing as a  result of organization structure.  Different designs of organization structure contribute to marketing outcomes and objectives and furthermore it helps the organization with new concepts of structural marketing (Bellini, Pereira & Becker, 2016).  Organization structure play a significant role in marketing since the structure is designated as a tool of achieving competitive advantage from local and international l markets.  First, organization structure improves performance from marketing concepts as it acts as a driver of market innovation. The market orientation theory asserts that factors of organizational design, both formal and informal foster the market orientation toward business performance (Burton & Obel, 2004).  In addition, resource-based theory improves performance by providing job satisfactions which impacts the employees operations. In corporate structure, managers apply dynamic capabilities and structural flux to understand the adapting structure and performance implication.  Corporate structure also plays a crucial role in innovation (Royo, Lázaro & Moreno, 2015).  On this point, team structure ensures firm collaboration with an aim of achieving new services, products and development of new knowledge to customers. Team structure is more interested in innovation and it focuses on creating wise managerial decisions and cross-functional integration.  The findings also assert that organization structure helps the managers to set organization goals and applies new concepts of reaching the customers, improving the brands and developing market learning (Horn & Faulkner, 2008).  Structural marketing improves performance since managers are able to improve the speed of meeting the customers demand and they are able to adapt to the changes in order to meet the relational outcomes.

Relationship between findings and own experience from my organization

According to the research, some findings relate with my organization and there are new concepts which the organization must apply in order to gain an effective organization performance. First, the organization achieves performance as a result of applying strategies in different areas.  Our organization formed structure and then employed different strategies which support the structure in moving on the business (Goswami, 2010). With relation to the Chandler’s theory, our organization sets strategic objectives which are followed by different structures in order to improve performance.  Other thing is that my organization ensures that there is a positive organization culture which values the organization behavior and norms.  Through accountability, involvement, consistency and mission, my organization culture brings effectiveness and improves employee perception, understanding as well as behaviors.  Furthermore, my organization culture improves performance through knowledge management. There is availability of resources and it is able to adapt to the environmental changes and this helps to maintain competitive advantage (Ushijima, 2016).

The current literature to current organization

There are new findings which must be applied in my current organization to ensure effective organization performance. Though the organization has implemented strategic methods, good culture, and knowledge management and has enjoyed benefits from marketing, there is need for proactive management in order to maintain the organization performance (Ruddle, 2016). The new findings assert that organization must create a well defined structure and things should be done in a new way and the organization structure should follow new strategies which are derived from four perspectives.  In order to create a corporate value, first the organization should focus on financial perspective   and this means that the organization must institute a resource allocation process to an enterprise-level in order to implement new business units and be in a position to negotiate with external entities (Tatarynowicz, Sytch & Gulati, 2016).  Other new approach which the organization must adapt is customer perspective. This means that the organization must leverage relationships in multiple units and provide low prices and greater convenience to customers and this is a way of generating corporate synergies more than the specialized competitors can offer.  Note that the cross-unit integration will develop a value proposition and this will improve performance (DuBrin, 2012). Other new model in organization structure is called process perspectives.  It is important for the organization to form a multiple business units and share common processes and gain core competencies based on innovation.  Last, a new approach is based on learning and growth and this mean that the organization must integrate in cross-unit collaboration and develop human capital and knowledge management and this is the key drive to enterprise-level synergies (Thornton, Ocasio & Lounsbury, 2012).

Conclusion

            Corporate structure and organization play a significant role in organization performance. Theories and researches have confirmed that in order to create an effective structure, it is important to apply strategies which will support the structure since it cannot stand on its own if there are strategies which the managers and employees will follow.  In addition, organization performance is achieved from organization structure in different angles. Structure provides quality culture, marketing concepts knowledge management and different elements which contain different function and all these ensures smooth organization operations thereby leading to organization performance. According to the findings, my organization has similar features since the structure ensures that there is quality culture, marketing management and other significant concepts but the new findings have implemented new approaches which the organization must implement in order to ensure effective organization performance.

References

Bellini, C. P., Pereira, R. F., & Becker, J. L. (2016). Organizational structure and enterprise systems

implementation. Information Technology & People, 29(3), 527-555. doi:10.1108/ITP-04-2014-

0076

Shafiee, H., Razminia, E., & Zeymaran, N. K. (2016). Investigating the Relationship between

Organizational Structure Factors and Personnel Performance. International Journal Of

Management, Accounting & Economics, 3(2), 160-165.

Hill, C. W. L., & Jones, G. R. (2012). Strategic Management. Cengage Learning.

Chandler, A. D. (2003). Strategy and structure: chapters in the history of the American industrial

enterprise. Washington: Beard Books.

Wahba, M. (2015). THE IMPACT OF ORGANIZATIONAL STRUCTURE ON KNOWLEDGE MANAGEMENT

PROCESSES IN EGYPTIAN CONTEXT. Journal Of Developing Areas, 49(3), 275-292.

doi:10.1353/jda.2015.0173

Lee, J., Kozlenkova, I., & Palmatier, R. (2015). Structural marketing: using organizational structure to

achieve marketing objectives. Journal Of The Academy Of Marketing Science, 43(1), 73-99.

doi:10.1007/s11747-014-0402-9

Frankenberger, S. (2006). Management of regulatory influences on corporate strategy and structure.

Wiesbaden: Deutscher UniversitSts-Verlag.

Burton, R. M., & Obel, B. (2004). Strategic organizational diagnosis and design: The dynamics of fit.

Sáenz-Royo, C., Gracia-Lázaro, C., & Moreno, Y. (2015). The Role of the Organization Structure in the

Diffusion of Innovations. Plos ONE, 10(5), 1-13. doi:10.1371/journal.pone.0126076

De, S. U. (2014). Knowledge management practice in organizations: The view from inside.

Janićijević, N. (2013). THE MUTUAL IMPACT OF ORGANIZATIONAL CULTURE AND STRUCTURE.

Ekonomski Anali / Economic Annals, 58(198), 35-60. doi:10.2298/EKA1398035J

Csaszar, F. A. (2012). Organizational structure as a determinant of performance: Evidence from mutual

funds. Strategic Management Journal, 33(6), 611-632. doi:10.1002/smj.1969

Segal-Horn, S., & Faulkner, D. (2008). International strategy. London: Thomson Learning.

Ushijima, T. (2016). Diversification, Organization, and Value of the Firm. Financial Management (Wiley-

Blackwell), 45(2), 467-499. doi:10.1111/fima.12108

Schein, E. H. (2010). Organizational culture and leadership. San Francisco: Jossey-Bass.

Goswami, C., & Goswami, S. (2010). Role of Organisation Structure in Facilitating Marketing.

Global Business & Management Research, 2(2/3), 162-183.

Ruddle, I. (2016). Understanding the New HR Services Operating Models. Workforce Solutions Review,

7(1), 4-7.

Tatarynowicz, A., Sytch, M., & Gulati, R. (2016). Environmental Demands and the Emergence of Social

Structure. Administrative Science Quarterly, 61(1), 52-86. doi:10.1177/0001839215609083

DuBrin, A. J. (2012). Essentials of management. Mason, Ohio: South-Western/Thomson Learning.

Thornton, P. H., Ocasio, W., & Lounsbury, M. (2012). The institutional logics perspective: A new approach

to culture, structure, and process. Oxford: Oxford University Press

Special Topics in Logistics

In order for each and every company to be able to perform well in the competitive market, it needs to balance its demand and supply. This is majorly because, demand and supply are the main factors which determine the future of a company (Mahadevan, 2010). Demand and supply work hand in hand, thus both of them need to be planned in a very strategic way thus impacting the company positively. In order for my company to be able to balance demand and supply, I would use the following techniques:  

In controlling demand

Pricing

Increasing nonpeak demand

Developing balancing services

In controlling supply       

Using job-sharing employees

Maximizing effectiveness

Increasing customer participation

Sharing capacity

Seeking the best fit

CONTROLLING DEMAND

Pricing

Pricing is one of the basic techniques of shifting the demand of goods in non-peak periods. Reducing the prices of commodities in non-peak hours helps in boosting the demand of goods (Ross, 2015). This consequently leads to a balance in the demand of goods in both peak and non-peak periods.

Increasing Nonpeak Demand

This technique is basically used to attract customers to a given product particularly in areas where the given product is new or not affordable (Mahadevan, 2010). The company therefore offers either free delivery, or otherwise offers promotions to a certain type of people in a given area. In so doing, the company is able to attract a certain of people to its products hence increasing its sales.

Developing Balance Services

Developing complementary services helps in creating demand balance, and this is majorly achieved by providing different alternatives for the customers (Ross, 2015). The company may either provide bonuses on non-peak periods or either coming up with a different product which matches the one on demand.

CONTROLLING SUPPLY

Using job sharing Employees

The demand of products ranges from time to time, and in order for a company to be able to regulate the supply of goods, it is better to use part time employees. These employees can only be at work during peak hours and periods (Mahadevan, 2010). This helps the company to reduce costs and increase efficiency and profits.

Maximizing Effectiveness

Maximizing efficiency helps in meeting the demands of the employees through supplying the products within the required time limit. This is usually achieved mainly through cross training, whereby the employees are trained on how to handle different tasks thus being able to perform different tasks at ease.

Increasing Customer Participation

This is one way of making the consumers to feel appreciated by the company (Mahadevan, 2010). The social media may be used to get the views of the consumers, thus the company can be able to come up with the products that the majority of the consumers want. Hence increasing the supply of the product in the market (Babu et al, 2014).

Sharing Capacity

An increase in the demand of products may affect the company as it will be required to invest in the supply of its products. In order to balance this, the company may partner with a supply company thus reducing the cost of supplying its products, and thus increasing efficiency (Ross, 2015).

Seeking the best fit

Managing capacity and demand is one of the best of ways that a service manager can be able to regulate the flow of goods from the company to the consumers. This therefore requires the service manager to conduct a research on the marketing trends of the product and thus being able to control the supply of goods in the market (Mahadevan, 2010).

In order for the company to be able to come up with very effective techniques, it integrates its planning with functional areas which include marketing and the social media (Babu et al, 2014). Integrating planning with functional helps in coming up with actual figures and trends of the market. This consequently provides an opportunity for the company to be able to regulate and control the changes in the market from time to time (Ross, 2015). Moreover, the company is able to understand through the marketing trends, what the consumers actually need and thus coming up with the desired products. On the other hand, Total Quality Management (TQM) is achieved through dealing with actual customers and asking them whatever they are looking for in a given product and thus improving the product.

Through marketing, the company is able to know its actual competitors, and come up with the necessary strategies in order to beat its competitors in the market. Moreover, planning using functional areas allows the company to use very effective strategies since its planning is based on actual happenings (Mahadevan, 2010). The social media is also a good source of gathering information from the consumers, since most consumers raise their issues on the social media sites of the companies. The social media clearly shows the true picture of a company and what the consumers expect from a company. The company therefore looks at the problems that other companies are actually facing, and it tries to improve them hence attracting customers (Babu et al, 2014). Customers rely on different factors and thus carrying out an actually research when planning really helps in the attraction of customers to a product.

Developing a feasible plan is usually faced by different challenges, this is mainly caused by the difference in marketing trends. The following are the main challenges of developing a feasible plan.

Poor researching methods

Changing marketing trends

Oversupply of commodities in the market

Poor means of communication

Poor Researching Methods

When conducting a marketing research, one is supposed to carry out the research in different areas. In most cases, the research is usually conducted in high populated areas. This consequently provides poor results and may lead to the implementation of wrong strategies. Moreover, it is very costly to conduct this researches in different areas (Mahadevan, 2010).

Changing Marketing Trends

Different areas have different marketing in different seasons, this therefore makes it hard for the company to be able to come up with the best strategy to tackle such issues. In addition, some areas consume a lot over a given period of time while at the same time other areas consume less, thus making the marketing trends to be very complicated (Ross, 2015).

Oversupply of commodities in the market

Due to the changes in the marketing trends, some companies find themselves oversupplying commodities in the market, leading to falling of prices (Mahadevan, 2010). This consequently affects pricing strategies since it becomes hard to come up with a good pricing strategy. Companies therefore end up choosing poor marketing strategies which lead to losses.

Poor Means of Communication

Most consumers do not rate the performance of the company when it performs well, but they criticise it when it performs poorly. Most companies are therefore criticised by consumers simply because of making a simple mistake (Ross, 2015). This provides the researches with very false information as they end up thinking most companies do not offer the best results when they actually do. Moreover, some companies pay people to comment positively about their services hence getting false information which hinders proper planning (Babu et al, 2014).

The company enterprise resource planning in order control the sales, and the all the activities being carried out. This system has benefitted the company positively, since we can be able to keep track of the sales, manage inventory and finances (Mahadevan, 2010). Thus the work flow in the company is very systematic hence reducing the chances of experiencing losses due to poor planning and management of inventory. The supply of products has since been good since each and everything is carried out in a systematic manner.

The company faced different challenges while implementing ERP and this included the following:

Organizational changes

ERP Implementation Goals

Flexibility of ERP System

Organizational Changes

The implementation of ERP leads to changes in the organizations, thus requiring the restructuring of the whole organization. The organization therefore changes the duties and responsibilities of its employees before changing the strategies and approaches used by the company (Mahadevan, 2010).

ERP Implementation Goals

The main reasons for implementing ERP is mainly because the company lacks a proper goals. ERP implementation therefore comes with the need to implement very serious future goals failure to which ERP may not be implemented (Ross, 2015).

Suppleness of ERP System

An ERP system which is not flexible may lead to changes in the organization in order to fit in the ERP model (Mahadevan, 2010). This therefore requires significant changes in the steps required to complete the services that the company is supposed carry out.

Reference

Mahadevan, B. (2010). Operations management: Theory and practice. Upper Saddle River: Pearson.

Ross, D. F. (2015). Distribution planning and control: Managing in the era of supply chain management.

Babu, B. V., Nagar, A., Deep, K., Pant, M., Bansal, J. C., Ray, K., & Gupta, U. (2014). Proceedings of the Second International Conference on Soft Computing for Problem Solving (SocProS 2012), December 28-30, 2012. New Delhi: Imprint: Springer.

Business law case study

Case 1: Wal-Mart Stores, Inc. VS Cockrell

Q 1

In this case, Mr. Navarro an employee of Wal-mart did not act responsibly. This is because he jumped into conclusion that was only based on his observations towards Mr. Cockrell. Mr. Cockrell did inform Mr. Navarro the reason for his appearance and his action by stating his major medical procedure that he had gone through. In his own opinion, he did not want to believe Mr. Cockrell. By this action, the sterility of Mr. Cockrell was compromised that affected his mental anguish. Lastly, I believe that it was not right to deny the liability case as they were not only trying to protect their public relations interest but as well as their finances.

Q2

Wal-mart did not act ethically towards Mr. Cockrell. To begin with, Wal-Mart was unable to prove the shopkeeper’s privilege and the false imprisonment. There was no enough ground for suspicion, Mr. Cockrell could have been held for a rational time and the search could have been carried out in a more sensible manner. It was not ethical in the manner they handled Mr. Cockrell given his condition and he tried to explain himself.

Case 2: Is Outsourcing of US Jobs to Foreign Countries Ethical

Q1

It is ethically wrong for the U.S businesses to sell to their goods to other countries. This is because the foreign workers are a subject to the minimum laws protecting that protects them. This exposes the workers to many challenges for the sole purpose of making profits. This is done due to the lower cost of making these goods at a cheaper cost in the foreign countries compared to the U.S market that results in making high profits. The outsourcing for the jobs is not as beneficial as it may look as it destroys jobs for the Americans that usually end up to financial problems slowing down the American economy as well as the quality life of the Americans.

Q 2

The benefits of these goods made in the foreign countries solely benefit the companies involved in America while the outsourced works from the foreign countries are left to suffer as they are paid low wages.

Organization Core Competence

1)    Core competence refers to the management of combined numerous resources and skills in order to provide a potential access to the markets to gain a competitive advantage. It is true to say that an organization has to identify its underlying skills, knowledge, technology experience and abilities in order to set unique services and products to sphere head competitive advantage (Kahawatte, 2010). This can be achieved through a process of building up the resources and capabilities for any given organization.

2)    I agree that the capabilities of the core competencies serve a firm right over its rivals as they are able to invest in resources and time in a wisely manner that enables the company to figure out where their strengths lie (Ireland, Hoskisson & Hitt, 2012). This enables to company to maximize its abilities that emerge in a more successful way such as the Apple Company has done in innovation.

3)    It is true to say that various firms use the core competencies by implementing strategies of value creating and addition that results in customer’s satisfaction. These strategies have been used by the firms to determine who to serve as their need are addressed (Kahawatte, 2010). Products have been developed in a manner that customers who are targeted are reached and there is a continuous process of improvement, innovation, and upgrades in order to produce more superior products.

4)    It is true to say that capability is power or the ability to put resources together in order to perform objectively in any given ability. I agree that assets can be of no use if the inputs are of no value and no good use is put into them (Rothwell & Graber, 2010). On the other hand, competency refers to the ability to do things in a more efficiently and successful manner which includes prowess, mastery, and proficiency.

5)    I am in support of organizational capability is the ability of an organization to manage its resources such as the employees in order to gain a competitive advantage by a way of focusing its ability to meet the customers demand (Rothwell & Graber, 2010). This is done by putting together all the resources such as technology and staff to achieve it.

6)    Although various organizational departments have to work together to achieve its objectivity a firm’s capacity is reflected by the way resources are deployed in a more purposely integrated manner (Ireland, Hoskisson & Hitt, 2012). I agree that the process is complex as there are both tangible and intangible resources coming together over time. If an organization puts and nurtures its core competence then competitive advantage, the overall objective of the organization, returns above average and value creation are achieved.

Reference

Ireland, R. D., Hoskisson, R. E., & Hitt, M. A. (2012). Understanding business strategy: Concepts plus. Mason, OH: South-Western Cengage Learning.

Kahawatte, U. (2010). Ryanair's strategy from a perspective of core competencies. München: GRIN Verlag GmbH.

Rothwell, W. J., & Graber, J. M. (2010). Competency-based training basics. Alexandria, Va: ASTD Press.

Toyota Motor Corporation

Introduction

    Toyota Company is the largest car corporation in Japan and it holds the third position globally. Its headquarters are located in Toyota, Aichi locality in Japan and it was established in the year 1937. The company is regarded as the leading vehicle manufacturer in as they conduct their operations in more than fifty overseas manufacturing corporations in over twenty-six nations and localities. They offer employment to a large group of employees as the numbers of employees employed are approximately 338,875 employees across the globe.  Toyota industries over time have developed and thus they have been able to diversify their operations as well as expanding the extent of their business. The company’s production, as well as their performance, has improved over the years (Lavanya et al 9). It basically specializes in the automotive industry but it also incorporates their business with finance and other industries. The company’s sections involve the automotive section, financial service section, and other sections. Their operations on the automobiles are based in Japan, Asia, North America, and Europe. This automotive section involves the designing, manufacturing, assembling, and selling of passenger cars, minivans, and business cars, for example, the trucks, interrelated car parts and accouterments (Chart et al 1). They have subsidiaries that include the Daihatsu Motor Corporation which basically deals with the production and selling of the mini-cars and the compact ones. Another subsidiary of the company is the Hino Motors Corporation which is involved in the production and the selling of the money making cars such as the buses and the trucks (Malloch et al 246). The company is also involved in the manufacturing of the automotive parts, machinery, and accouterments for its own personal use and for sale to other people and businesses.

The company produces three types of cars that are categorized into three that is the hybrid vehicles, conservative engine cars, and fuel cell cars (Griffin 243). This paper therefore will major it’s discussion on the mission and visions of the company, SWOT analysis, company’s analysis using the Porter’s five forces and the net assessment of the company’s strategies and recommendations for the company.

    Mission and vision analysis

The company’s vision is to be the most esteemed as well as the most successful business that delights their clienteles with a wide variety of merchandises and elucidations in the automobile production with the preeminent employees and the finest technology. The company’s mission is in the provision of safe as well as the sound journey. Thus it is developing innumerable new technologies from the view of saving energy and diversification of energy sources. Environmental sustainability has been the most prioritized and essential issue of the Toyota Company and thus the company has been determined to work towards the creation a successful society as well as a clean world. The company thus ensures that they focus on the demonstration of a responsible corporate conduct all through the whole continuum of its activities and functions. The company’s concern goes far beyond the production of good cars as they make efforts towards meaningfully contributing towards the development of healthy living standards of all of their customers and the public in general. Thus they focus entirely on producing a clean as well as providing far above high quality and safe merchandises (Toyota Motor Corporation 1). The company is a respected as well as a corporate citizen in the UN Global Compact and they continually undertake social initiatives that assist them to strengthen societies and thus the contribute towards the betterment of the entire community.

The company thus uses the IMC that usually realizes the attainment of the company’s communal social obligation which is a multidimensional model which is the foundation of the sustained as well as the long-term development. The company, therefore, considers the CSR as an essential strategic tool rather than perceiving it as an obligation and it is used for the sustenance of the social strength. The company thus practices socially responsible management with an aim of developing and sharing their values with their employees, customers, partners, shareholders and the society at large in which the company operates (Toyota Motor Corporation 1).

External environment of the Toyota motors corporation

    Industry analysis

    Toyota Company is one of the companies that compete in the automotive industry. The past five years for the automotive companies were unrestrained. So many changes have occurred within the industry and this has adversely affected the company. For instance, the rapid increment of the fuel price and the rise in environmental concerns have diverted customers predilections away from the fuel consuming pick-up truck vehicles to smaller more efficient and conserving vehicles. Some of the automakers incorporated the changes through the enlargement of the small car assortments and the diversifying of their operations into the production of the hybrid electronic motor cars. Another category of the automakers was slow to adapt to the changes as they waited for the fuel prices to go down and thus they brought the customers back to the large vehicle fold. As the fuel expenses went down through the second part of 2008, it was owing to the United States shredding of the financial crises into the worldwide economy (Nkomo 2). This, therefore, affected both the developed and the emerging states where the western nations followed the United Nations into collapse.

The industry revenue fell and all through the five years, the development in the BRIC nations reinforced the production. As the income rose among the people, the demand for the motor cars also increased. However, the western automotive companies relocated the production operations to BRIC nations so as to tap into these marketplaces and also profit from the low rate of production. In the succeeding five years, the developing economies will continually grow and thus the ultimatum for these automobiles in the western countries will recuperate. The business is however in the mature phase of its life progression (Nkomo 2).

    Industry demands factors

    The request for the motor vehicles globally is basically connected to the motor car prices, for every capita disposable profits, fuel charges, and the merchandise invention. On the supply side, the car values increases from the material as well as tools costs with high steel and also plastic cost that raise the producers, buying costs and eventually the merchandizing prices. For the earlier years, the automotive manufacturers have been overwhelmed with high steel and plastic costs which have in turn resulted to their high cost of expenditure as they purchase those goods and this has raised the production and the manufacturing costs. The affordability for the consumers is determined by the amount of per capita disposable income. The susceptibility of the customers to purchase the motor cars increases the income of the consumer's increases as well as the affordability (Nkomo 2). Generation of sales is done using the incentives during the low periods of economic growth there has existed records of a substantial growth in the number of the vehicle funding businesses that have been recognized in the BRIC. This has led to the increase in the number and extent of the automobile loans which has resulted to the increment in the industry demand.

The general improvement in the quality of their products in developed nations has attributed to the freer feeling of the buyers as they use price so as to distinguish similar products. Customers are well informed of the vehicle's actual cost and they, therefore, fail to accept any rapid increment in price per year. During the period of the low price increases, consumers who are familiar with the vehicles actual cost details from the consumers’ publications and the internet sources have become shrewder especially while negotiating the buying of the vehicle. In this manner, customer awareness and admittance to the information can govern the demand of the motor cars. Fluctuation in the fuel prices also generally affects the demand for the vehicles basing on the type of the car. During those periods when the fuel prices are very high, more vehicles which are fuel resourceful are in high demand. For the earlier years, the prices of the fuel have increased which has stimulated the acceptance of the hybrid and new models that are fuel effectual (Nkomo 4). Lastly, the product invention and innovation can stimulate demand especially with respect to more fuel efficient cars, for instance, the hybrid and the electric car models. Most of the customers are willing to purchase a car that is more fuel-efficient as it will potentially save on the cost of fuel while the vehicle is on the road.

Porter’s five forces: Toyota motors industry

    Risk of the new entry

• The quantity of capital that the company requires is large.
• The products of the company are distinct from other products by use of design and the manufacturing quality.
• There is the high retribution possible from the existing corporations, while the new entrants are expected to bring inventive products and ideas to the company.
• The government regularly protects their home markets through the introduction of the high import taxes.
• There are few legal barriers that protect the existing companies from the new entrants.
• It is however too hard to attain economies of scale from the small companies.
• All the automotive corporations have recognized brand image and reputation.
• All the new entrants in the company could easily be able to access the suppliers and the distributors.

    Supplier control

• It involves a large number of suppliers.
• Some of the suppliers are large but most of the suppliers in the company are small.
• The company uses one metal instead of another type of material but only to some degree, the plastic material is used as an alternative to metal.
• The materials are widely available
• The distributors do not position any danger of frontward incorporation.

    Consumer control   

• In the present, there are too many buyers.
• Most of the purchasers are persons who purchase only one compartment while there are other buyers who purchase large convoys and are able to bargain-basement for lower charges, for example, the government and corporates.
• The cost of consumers to adjust to a new brand of car or to start consuming other modes of conveyance is low cost.
• Buyers easily chose alternative vehicle brands.
• Buyers are however price conscious and their decision are majorly determined by the extent to which a car costs.
• Buyers do not threaten of the backward assimilation.

    Threats of substitutes

• There exist so many alternatives of the types of transportation.
• Substitutes rarely provide similar convenience.
• There are alternative forms of transportation that almost cost lesser and at times they are more environmentally eco-friendly.

     Competitive rivalry

• There are reasonable numbers of entrants.
• Once an industry decides to dispense a business it would experience a huge amount of losses thus in greatest time, the company is either in the bankruptcy situation or rather they stay in the automotive industry for the rest of their lifetime.
• The industry is relatively large and as well as mature.
• The size of the competitors in the competitors’ environment varies but they mainly compete for various consumer divisions.
• There is the reasonable risk of being developed by a contestant.
• The marketplace share absorption of the company is low and thus the business is considered to have low intensities of attentiveness while the other four principal manufacturers approximately justifies for around a one-third of the worldwide returns.

    Main success of the company

    The company is flexible in determining the expenditure hence they are able to control the employee interconnected costs which make the manufacturers in the developed world more competent. The company establishes the export markets and thus they are able to repudiate any recessions that may occur in the local markets. The company also uses some of the most efficient work practices, for instance, the use of the good industrial associations through the use of the motivated labor force that enables the minimization of the industrial disputes. The company also has effective cost controls where a close relation is established with the suppliers thus allowing a good distribution channel that assists in the control of costs. The company is also able to access the latest available and most effective technology band methods thus enabling the company to be competent amongst their competitors. With a high technology that is technologically enabled, the company’s competitive edge is acquired. The company has an optimum capability of utilization this is because the industry’s success heavily relies on the excessive high firm utilization in any modern automobile and the light duty motor car manufacturing firm (Nkomo 2).

Internal environment

    Competency

    The main proficiency of the Toyota motor company is its aptitude to create vehicles that are of great eminence and at affordable charges thus offering the consumers a value for money. This main competency on quality can be accredited to its inventive manufacture performances. This quality aspect in the company has transformed the motors in the preceding years and as a result, nearly all of the automobile corporations had to work hard to attempt and improve the superiority of their manufactured merchandises. This is a foundation of the cost management approach pursued by the corporation (Nkomo 3).

    Its distinct competence is evident in the production system which is established on the lean industrial model. This model correspondingly involves the inventive practices, for example, the just in time, the six sigma as well as the kaizen (Borowski et al 4). This makes them outstand among all the other automobile manufacturers. It is through this distinct competence that the company has been able to attain the competitive advantage that has enhanced the company to have a sustainable le brand name and a leading market position.

    Organization structure

    The organization structure of the Toyota motor corporation is formed on the different business operations of the corporations around the globe. The company being one of the leading automotive companies in the business, it engages its organization structure with an aim of associating the company’s goals and direction. The company effectively sustains a strong worldwide presence which portrays its capability to utilize its organizational structure so as to maximize the effectiveness and the capacity usage.

In quintessence, it is through this organizational structure that the company’s success is determined in the international market (Liker et al 46).

    The company basically has a divisional form of organizational structure. The change has undergone important changes over the years and especially in 2013. This was attributed to the safety issues which caused the change as a response to the situation and a corresponding recalling of the products (Nkomo 3). Traditionally, the organization structure had a strong centralized organization structure where the company’s headquarters were in charge of making decisions while the communication flowed from the headquarters. However, this form, of organizational structure was not good and it was criticized thus making the company to reorganize its structure and thus an improved structure was put in place in 2013. The organization structure as at now basically is composed of three elements that are the geographical category, the product-based categories, and the worldwide hierarchy.

    The company therefore upholds its worldwide hierarchy notwithstanding its restructuring in 2013. However, in the company’s current organizational structure has increased the decision making supremacy of the regional management and the business unit leaders. Hence the company’s decision making process is less centralized while all the business managers’ reports to the firm’s worldwide global headquarters located in Japan (Iyer et al 22).

    The company operates in eight regional detachments where each of the region’s head reports to the headquarters of the company. This enables the company to be able to develop products as well as services basing on the regional market situation.  Product based category involves four divisions which are tasked with the role of engine, transmission and other interconnected operations. This helps the company to advance brands and product lines.

    The Toyota company’s organizational structure offers the company greater flexibility as compared to the traditional organizational structure. The new structure therefore is able to respond to the regional market situation. It is through this flexibility that the company is able to speedily respond to matters and offer high-quality products, however, with the increased decision-making authority of the regional managers, has reduced the control of the headquarter over the worldwide organization. Thus the organization structure therefore assists the resilience and the continuous grow (Iyer et al 22).

SWOT ANALYSIS

    Strengths

    The company holds a strong market position and brand acknowledgment. Within the different geographical regions across the globe, the company holds a strong market position. It is through this resilient market situation that the business is able to gain the competitive advantage and correspondingly grow into the transnational markets. Also, the company embraces an assortment of resilient brands in the motorized business. Hence, the corporation resilient markets situation provides it with an important competitive advantage that assists it to be able to record greater sales development in the national and the worldwide marketplaces (Liker et al 46).

    The company has a strong focus on the R&D with an aim of expanding its products selection and developing the functionality, eminence, safety as well as the environmental suitability of its production. The organization’s R&D efforts concentrate on developing new products and processes and the advancement of the abilities of the available products. The company thus operates its activities at all the facilities globally (Nkomo 3). More strong concentration on the R&D has assisted the company in the integration of the innovative structures to its already prevailing choice of merchandises and also conveying out the up-to-date expertise in the different extents. It is through this strong focus on the R&D that the company is able to maintain the industrial management in most of its merchandise division. It correspondingly enhances the Toyota Company to progress inventive merchandise that leads to resilient sales.

    The company also offers extensive production as well as a distribution system. The company together with its associates produces automobiles and related parts and components through more manufacturing corporations within different regions and nations (Nkomo 3). The company has a well distributed geographical production base which broadens the horizons of the business uncertainties; its extensive distribution system offers wider reach thus boosting the returns.

    Weaknesses

    Product recall that is carried out by the company may affect the image of the brand and the overall sales of the products. The decline in the sales in the main geographical areas has adversely affected the company. This is viewed from the continuous decline of sales in different geographical regions and this creates pressure that affects the division of profit making and the overall returns of Toyota. The company has a low apportionment of resources as compared to other corporation (Nkomo 3). This is witnessed from the low profit on equity and the profit on assets as compared to other companies. This is to show that the company has failed to use the shareholder's money effectively and it fails to generate high profits for its shareholders. Hence poor distribution of the resources may hurt the shareholders worth and thus lead them to lose confidence in the long run.

    Opportunities

    The international automotive business was severely affected by the economic recessions with the decline in the revenues that were being recorded over the years. Thus the recovery of this international automotive business offers the Toyota Company a chance to gain more consumers and revenues. Toyota Company is self-assured of the advantage from the developing conglomerate with the BMW. Both the BMW and Toyota companies contracted a memorandum of understanding between the two (Nkomo 3). This was aimed at long-term strategic cooperation, especially on the technological sector. As portion of the arrangement, the two corporations will significant each other for the shared improvement of a fuel compartment structure, shared improvement of the structural design and mechanisms for a impending sports vehicles, integration of the powertrain electrification and shared exploration and improvement on the light weight expertise. The growth of the corporation between the two enterprises is anticipated to increase the technological knowledge of the corporations and may possibly lead to the improvement of new merchandises so as to intensify returns in the long-term. While in the short-period, the corporation will lead to important cooperation and cost saving enhancing the operational margins. Another opportunity is on the strong outlook for the international new car market. With the moderate growth over the years in the worldwide new car market, there are chances of acceleration towards a strong double-digit development. Hence, the strong outlook of the worldwide market, attached through the company’s new invention launches offers an improvement chance for the business.

    Threats

    The global motorized industry is extremely competitive. Therefore, the Toyota Company encounters a tough struggle from the motorized producers in different markets. The competition among different companies is likely to increase with the continuous globalization and the partnerships in the line of automotive business. Quality, features, pricing, development, safety, fuel efficiency, and financial issues are some of the factors that determine competition (Nkomo 3). The amplified rivalry may result in inferior motor cars unit sale and enormous inventory which may lead to recession valuing pressure thus influencing the economic situation and the outcome of operations of the organizations.

    Toyota Corporation is so profound to the variations in the overseas currency exchange charges and is standardly uncovered to fluctuations of the other states. The US dollar fluctuation in the foreign exchange rates would affect the Toyota operations which eventually impact the valuation of the corporation. The Toyota Company suffers disruption of production because of the natural disaster. This company therefore primarily operates mainly in Japan which is highly higher. Generally, the company has outperformed in the business over the years (Nkomo 3).

    Recommendations

    The company should continually carry out the concerted efforts so as to strengthen its management as well as rising of the corporative value. In dealing with the immediate tasks, the company should ensure that they promote business and the cost of organization reorganizations so as to realize a firm organization stage with an aim of responding quickly to the evolving market situations.

Thus the company should sustain a rationalized arrangement through the decrease of the stable costs and the enhancement of its industry in the reputable markets mostly in the industrialized states (Toyota Motor Corporation 10). The company should also hasten the industry’s development into global rapid developing nations by carefully and accurately monitoring of the market condition in relation to the areas and the introduction of the products that are appropriate to the features and the necessities of each and every market. The company should thus be determined in establishment of the production and supply arrangements so as to be able to attain the optimum product pricing as well as delivery upon the valued chain so as to offer a wide selection of customers’ services on each and every geographical region (Nkomo 4). The company should also make considerations where they should consider making the Lexus a priority in the Chinese marketplace (Liker et al 46). This will enhance the company to become competent with other car producers in the luxury category. The increase in the production functions in Asia will enhance the company to have cheap transfer networks and it will come closer to the emergent market consumer. The company should also cut out stratum of the middle management with an aim of allowing the engineers to have more control and power than the specific consumers’ needs which are answered in the designing and the development of the new vehicle. The company should also follow the improvement of the environmentally friendly operations, energy saving merchandise while integrating the functions and the services that are demanded by the by the consumers and delivering these services to the worldwide market extent (Toyota Motor Corporation 10). The Toyota Company should focus on the growth in the three business segments. One of these segments involves the solution where the material and equipment are handled.  Logistics and the textile machinery is the other unit which is the main component of especially when it comes to the vehicle conditioning compressors and the vehicle electronics. The third unit is on the mobility which is involved in the division of the vehicles as well as the engines. The corporations should also maintain the amalgamated international scale where it enhances the power of its working place and the diversity that is there to the employees and strive towards the nurturing of the international human resources (Toyota Motor Corporation 10). It is also important for the company to prioritize safety issues as they enforce on the thorough acquiescence that involves the implementation of the law and regulations and actively involvement in the social contribution in the community. The company should also aim at supporting the businesses and the social infrastructure around the globe through the constant distribution of the products and services that antedate the consumer’s needs so as to contribute to the engendering of the compassionate community. Generally, the company has overpowered the businesses in this line over the past years and thus it has gained the market shares. The company has adopted the Modification towards smaller and more fuel-efficient cars which the Toyota vehicle manufacturers can manufacture at relatively lower prices. This will enable development in America (Nkomo 4).

    Conclusion

    It is important to note that the company has made tremendous progress over the years and their success is attributed to their quality services and products. Their success is also attributed to the well-organized structure that is effectively and efficiently organized in a better way that supports the success of the company. The company honors the language and each and every law that is set in every nation and they usually carry out open as well, as fair corporate activities of being a good corporate citizen globally. This company has also shown evidence of harmonious growth that involves the innovative management within the global society. 

The company has also shown strength in the way in which they create and improve technologies and offers outstanding products and services that fulfill the needs of its consumers. The company also is involved in partnering with other companies in research and creation of the partnership so as to attain a long-term growth and a mutual advantage as they keep the company open for more partnerships. According to the analysis of the strengths, weaknesses, opportunities and threats it is evident that this company faces so many challenges within and outside the company. There are internal forces that affect a business performance and the company should thus focus on the improvement of the strengths and the change of weakness into strengths. For the company to continue realizing more advantages and more return there are so many factors to be worked on so as to ensure that the company is able to meet its obligations. The company is devoted towards not only producing goods of high quality but they usually goes beyond as they ensures that their products are healthy, safe and clean. This enhances the company to ensure that they offer quality living standard through their operations. The company offers so many benefits to the society as they employ so many employees in their company. This therefore allows the people to have better living standards as they are able to get food to eat. The company uses alternative sources of energy that saves on the energy that is used and this enhances the conservation of the environment. The company is also proud since it has a dynamic mix and diversified operations across the globe.  Toyota industries over time have developed and thus they have been able to diversify their operations as well as expanding the extent of their business. It is through this diversity that the company is able to compete with other companies and to respond to the situations facing the company. It is this diversity that the company is able to continually sustain skilled, able and enthusiastic workforce that is drawn from the background, know-how and perspectives.

Over the years due to the company’s success and effectiveness in their operations, they have been able to develop their name and brands and thus making them competent in the competitive environment. Thus they have earned a reputation due to their quality services and products as well as their integrity during their operations. They are therefore committed towards responsible management and environmental activities. The company holds upright their ethical conduct that goes beyond the legal requirement. The company integrates all the stakeholders in its operations which are an important thing as it enhances its success. Once the stakeholders are involved, they are always able to share the company’s values, beliefs, and goals and this helps them to work as a team so as to be able to meet the common goal of all in the company. Customers are prioritized first in the company and thus this allows the company to be more interested in making their customers happy through meeting all of their needs and requirements. They also sell their products at affordable prices which in turn attracts more customers into the business. All their operations clearly portray that the company is doing all their best so as to be able to continually improve and innovate and this has created loyalty among their customers. The company should therefore continue to carry out the concerted efforts so as to strengthen its management as well as rising of the corporative value. The company is flexible in determining the expenditure hence they are able to control the employee interconnected costs which makes the manufacturers in the developed world more competent. The company has adopted the Modification towards smaller and more fuel-efficient cars which the Toyota vehicle manufacturers can manufacture at relatively lower prices. They major on fulfilling their obligations to the people and this is an indication of their respect for the people. They also focus on globalizing their operations with the reduction in the cost of expenditures so as to maximize the profit.

References

            Borowski, Arkadi. Report on the Toyota Company. München: GRIN Verlag GmbH, 2010. Internet resource.

            Chart, Stock, et al. "Toyota Motor Corporation." (2000).

            Griffin, Ricky W. Management. Mason, OH: South-Western Cengage Learning, 2011. Print.

            Iyer, Ananth V, Sridhar Seshadri, and Roy Vasher. Toyota Supply Chain Management: A Strategic Approach to the Principles of Toyota's Renowned System. New York: McGraw-Hill, 2009. Internet resource.

    Lavanya, B., and M. Anbalagan. (2012). "Corporate Environmental Responsibility with special reference to Toyota Motor Corporation."

            Liker, Jeffrey K, and Michael Hoseus. Toyota Culture: The Heart and Soul of the Toyota Way. New York: McGraw Hill Professional, 2011. Print.

            Malloch, Theodore R. Practical Wisdom in Management: Business Across Spiritual Traditions. , 2014. Internet resource.

            Nkomo T. Analysis of Toyota Motor Corporation. Retrieved from: http://scholar.harvard.edu/files/tnkomo/files/analysis_of_toyota.pdf

    Toyota Motor Corporation. (2012). Sustainability report 2012. Retrieved from: https://www.toyota.de/download/cms/dede/Toyota-Nachhaltigkeitsbericht-2012_Langfassung_tcm-17-158986.pdf

Operations Decision Making

An organization main objective is to maximize profits. Most organization have had to engage in social corporate responsibility in order to create that image that is admirable to and by the society. The project that I was involved in was in a non- profit setting (Meredith & Mantel, 2012). The project involved an organizational play that aimed at entertaining the community and educating them as well. The project pertained educational information of the products of the organization and the benefits that one can derive from them. this project did not only involve the employees of the organization but there were also other musicians involved in order to deliver the entertainment bit as well as have large numbers of people from the various organization attending the concert (Meredith & Mantel, 2012). The project was not easy to come up with as a lot of determination was required from each and every one of us together with communication.

In order to make it a success, the structure of the project was subdivided in order to ensure that all the roles of the project were taken up and there was no repetition of responsibilities. To begin with, there were major tasks involved in the play and the overall concerts such as obtaining the rights, the auditions, rehearsals of the involved actors and actresses and the rehearsals of the performing artists (Meredith & Mantel, 2012). There was also some subtask such as constructing the sets, lighting, printing of programs and tickets in which the money raised was to be used for projects that are beneficial to the community and advertising. I was in a critical path as I was responsible for making sure that the costumes were ready for the big day in order to avoid embarrassment (Meredith & Mantel, 2012). The project manager was very supportive as he made sure that we performed to the expected levels and that all the challenges experiences were solved with immediate effect.

Reference

Meredith, J. R., & Mantel, S. J. (2012). Project management: A managerial approach. Hoboken, NJ: Wiley.