The Decision-Making Process at Toyota

The Decision-Making Process at Toyota â€Å"The minor assessment is centred around Toyota’s annual report. Each student is expected to submit a case report, based also on the analysis of relevant background readings in addition to the case study itself, addressing the following issues:  · Explain what is meant by the term â€Å"decision-making† and analyse it in connection with the concepts of risk and uncertainty.  · Discuss the decision-making process at Toyota.  · Briefly analyse the automotive industry and explain how its dynamics influence Toyota’s managers in making decisions.  · Apply forecasting models to Toyota case study (e.g. provide a 2-year moving average graph using sales data).† Table of contents Introduction: The decision-making process 1 Risks and uncertainties in decision-making process 2 Case study: Decision-making process at Toyota 3 Automotive industry analysis 4 Influence of automotive industry in Toyota’s decision making process 5 Financial analysis 6 Forecasting model: 2-year moving average graph 7 Forecasting model: weighted moving average and exponential smoothing 8 Conclusion: Toyota heading towards Sustainable Growth 9 References and Sources 10 Introduction: The decision-making process We can define decision-making, as a conscious and human process, involving both individual and social phenomena, an ongoing process of evaluating alternatives for meeting an objective. A particular course of action to select that course of action most likely to result in attaining the objective. The decision-making process allow us to raise our vision beyond our immediate concerns and, in turn, allow us to evaluate our existing beliefs an actions in a new light in order to make an important and useful decision. Achieving an objective requires action leading to a desired outcome. In theory, how one proceeds should inevitably affect what one achieves, and in turn this should affect future actions. Risks and uncertainties in decision-making process The ability of a firm to absorb, transfer, and manage risk is critical in managements decision-making process when risky outcomes are involved. This will often define managements risk appetite and help to determine, once risks are identified and quantified, whether risky outcomes may be tolerated. For example, many financial risks can be absorbed or transferred through the use of a hedge, while legal risks might be mitigated through unique contract language. If managers believe that the firm is suited to absorb potential losses in the event the negative outcome occurs, they will have a larger appetite for risk given their capabilities to manage it. Managing uncertainty in decision-making relies on identifying, quantifying, and analyzing the factors that can affect outcomes. This enables managers to identify likely risks and their potential impact. Decision makers are used to assessing risk because decision-making is usually associated with some degree of risk taking, but not all outcomes are easily assessed. Some unknown outcomes may not previously have been seen or experienced and so they are uncertain. In theory the outcome may have a low probability to occur but if so would happen it could be troublesome. So it is important for every company, especially in ever changing and competitive markets to deal with risks using a ever-better decision-making process. All of the decisions anyhow are taken by individuals so the strategy for risk avoidance is tied in with a personal reference point. Of course it’s fundamental nowadays, for big corporations, to have extremely good employees in this department. The skills and needs of the decision-maker and the role of the decision within an organization, the importance of the risk analysis will depend on the objectives of the decision. A wise approach to decision-making might seek contributions from different angles. The importance placed on data analysis, management skills, organizational awareness, and custom and practice in the assessment of risk would be vital. In this field of course with any doubt Toyota is one of the finest players in the market, with a top notch decision-making process. Case study: Decision-making process at Toyota Automotive industry analysis The worldwide automotive market is highly competitive. Toyota faces intense competition from automotive manufacturers in the markets in which it operates. Although the global economy continues to recover gradually, competition in the automotive industry has further intensified among difficult overall market conditions. In addition, competition is likely to further intensify due to continuing globalization in the worldwide automotive industry, possibly resulting in further industry reorganization. Factors affecting competition include product quality and features, safety, reliability, fuel economy, the amount of time required for innovation and development, pricing, customer service and financing. Increased competition may lead to lower vehicle unit sales, which may result in a further downward price pressure and adversely affect Toyota’s financial condition and results of operations. Toyota’s ability to adequately respond to the recent rapid changes in the automotive ma rket and to maintain its competitiveness will be fundamental to its future success in existing and new markets and to maintain its market share. There can be no assurances that Toyota will be able to compete successfully in the future. That’s the risk connected with every business activity. Through this uncertainties Toyota has to deal with a top-notch management. Each of the markets in which Toyota competes has been subject to considerable volatility in demand, so the risk is becoming even higher year after year affecting all business decisions. Demand for vehicles depends on social, political and economic conditions in a given market and the introduction of new vehicles and technologies. As Toyota’s revenues are derived from sales in markets worldwide, economic conditions in such markets are particularly important to Toyota. In Japan, the economy gradually recovered due to increasing personal consumption and last-minute demand encouraged by the increase of the consumption tax. In the United States, the economy has seen constant gradual retrieval mainly due to increasing personal consumption and the European economy has shown signs of recovery too. In the meantime, growth in emerging markets slowed down due to weakening currencies of emerging markets, increases in interest rates of emerging markets to protect the local currencies, and political instability in some nations. The shifts in demand for automobiles is continuing, and it is unclear how this situation will transition in the future. Influence of automotive industry in Toyota’s decision making process Toyota’s future success depends on its ability to offer new innovative competitively products that meet customer demand on a timely basis. Their corporate DNA is headed to continuous innovation and ensure that tomorrow’s Toyota is even better than today’s. Toyota’s current management structure is based on the structure introduced in April 2011. In order to fulfill the Toyota Global Vision, Toyota reduced the Board of Directors and decision-making layers, changing the management process from the ground-up, facilitating rapid management decision-making. In April 2013, Toyota made organizational changes with the goal of additional increasing the speed of decision making by clarifying responsibilities for operations and earnings. In detail Toyota’s group divided the automotive business into the following four units —Lexus International (Lexus business); Toyota No. 1 (North America, Europe and Japan); Toyota No. 2 (China, Asia the Middle East, East Asia Oceania; Africa, Latin America the Caribbean); and Unit Center (engine, transmission, and other â€Å"unit†-related operations) Meeting customer demand by introducing attractive new vehicles and reducing the amount of time required for product development are critical to automotive producers. In particular, it is critical to meet customer demand with respect to quality, safety and reliability. The timely introduction of new vehicle models, at competitive prices, meeting rapidly changing customer preferences and demand is more fundamental to Toyota’s success than ever, as the automotive market is rapidly transforming in light of the changing global economy. Toyota has to be ready for every occasion to occur in this ever changing global economy. Toyota’s managers every year are taking under consideration every occasion to happen. Within a managerial decision-making context, a risk might be viewed as the chance of negative outcome for a decision which has a possible uncertainty element, usually on the downside. Financial Analysis In terms of finances, the carmaker boosted its profit forecast for the current fiscal year ending March, expecting net income to rise to 2.0 trillion yen ($16.97 billion, 14.7 billion euros). It also said revenue would come in at 26.5 trillion yen. Toyota Motor Corporation had revenues for the full year 2014 of 25.692tn. This was 16.44% above the prior years results. Regarding the competition between Toyota, Volkswagen and ford, top players in the market, Toyota is average a positive trend. Moreover Toyota has the highest income since the year 2009. Forecasting model: 2-year moving average graph Forecasting model: weighted moving average and exponential smoothing We could use instead different methods. The moving average is a simple method that doesn’t take in in consideration the weight or real value that a number has. In fact to overcome this issue we can adopt the â€Å"weighted moving average method† and the â€Å"exponential smoothing method†. Using the â€Å"weighted moving average method† I take under considerations 3 years, which I consider the most important. The value of weights it is based on the percentage growth every year. Using weighted moving average, we can have a better forecast. However, it is more important for a better forecast to use the exponential smoothing method. Here I take in consideration all of the years moving from 2008. Found out that the smoothing factor is pretty high, 0.99. I took under consideration 0.9 as my alpha because in this particular case higher alpha means that the recent history will have more weightage in the forecast calculation. As we can see from page 26/68 I took under consideration Toyota’s Consolidated Performance (U.S. GAAP). I think that the last one is the most appropriate method to see a realest forecast for the next year. Of course the calculation has been made â€Å"ceteris paribus† so everything it is supposed to be the same next year, but as showed before this particular market is subject to constant changes. For this reason and other random errors the forecast could be higher or lower, but however we can obviously see a positive trend in Toyota’s business. Thanks to the tireless efforts of all concerned, today Toyota’s group can take pride in the strengths of its management practices and culture. Even its president is convinced that they are now in a position to take a definitive step forward toward sustainable growth. Conclusion: Toyota heading towards Sustainable Growth So is Toyota heading towards a sustainable growth? What is the engine for sustainable growth? Toyota has learned from experience that they can achieve sustainable growth only if they manage to create great cars that bring smiles and if they foster the human resources needed to make this a reality. At the same time, ever-better cars can be produced only through efforts made by employees on the front line. Individuals must take ownership of their work and place the utmost emphasis on local manufacturing, swift decision making, and immediate action. As it continues to grow however, tasks that were once routine may become increasingly difficult to perform. As I see it, Toyota’s current situation is particularly critical as we are now entering another expansion phase. This is a really important moment for Toyota. For this, because of the risks associated with the future Toyota should continue to seek perfection in his work of manufacturing, but especially in its management process where the decision-making process takes a fundamental part. References and sources For further readings†¦ Ken Segall, Insanely Simple, the obsession that drives Apple’s success, Published by Portfolio Trade, 2013 Robbins, De cenzo Coulter, Fundamentals of management, Global edition, 8th Edition, Pearson Higher Education, (2014 version) Burns and Stalker, The management of innovation, Tovistock Publications, London, 1961 Some internet sites†¦ ADAPT OR DIE, by John S. McCallum – Ivey Business Journal about management [accessed November 18, 2014] http://iveybusinessjournal.com/topics/strategy/adapt-or-die#.VGvDZDSG_ng 1

Macbeth Contextualize Analyze And Personalize

He felt like maybe he shouldn't have done what he did. Lastly, Machete's psychological state is that he is feeling suspicious about how Duncan and Banquet are acting. Analyze- In this scene , something that is revealed is that Macbeth immediately realizes that the fulfillment of the prediction may require conspiracy and murder on his part. One thing that Machete's words in this scene mean to me is that things can be good but also be terribly bad at the same time.Also, life can be hard at times, but you have to push through it the best you can. You can't let the bad things overtake the good in life. Think the most important words in this aside are when Macbeth says he is Thane of Castor. These are the most important words because even though some people may not want him to be king there isn't anything they can do about it for it to change. Personalize- My reaction to these lines are that there is a lot of defense coming from Macbeth, like he is lining guilty or ashamed about being kin g.I feel like Macbeth is trying to get a point across to Banquet, that he knows Banquet wants to be king but he will never feel the joy that Macbeth feels. Banquet will never have the power of being king. The way would deal with the situation would most likely be the same way Macbeth did. He seemed very calm about it. He didn't really get violent, he just stated that he was King, and there's no way to change it.

Accounting for a Loss Contingency for a Verdict Overturned on Appeal Essay

M International (â€Å"M†) and W Inc. (â€Å"W,† a competitor of M) have been engaged in long- standing litigation over a specific patent infringement matter. Below is a summary timeline of specific events that have taken place related to this matter: In May 2007, W filed a claim against M for patent infringement. For the year ended December 31, 2007, management of M determined that a loss for this matter was probable and represented that the estimate of loss was in the range of $15 million to $20 million, with $17 million being the most likely amount of loss within the range. See more: Beowulf essay essay A jury trial took place in September 2009. The jury reached a verdict on September 24, 2009, and a judgment was ordered in favor of W. The judgment required M to pay W $18.5 million. In November 2009, M filed a Notice of Appeal with the Court of Appeals. In December 2010, the Court of Appeals issued a ruling in favor of M’s appeal and reversed the lower court’s ruling on the matter. This meant that the Court of Appeals overturned the jury verdict and the $18.5 million judgment against M. On January 6, 2011, W filed a petition for a re-hearing before the same panel of appellate judges against the reversal of ruling by Court of Appeals. On February 10, 2011, the appellate judges declined the petition for a re-hearing. On February 28, 2011, management of M determined this matter was closed upon discussions with in-house legal counsel.

Diversity For A Diverse Workplace - 3965 Words

If an organization is serious about leading and managing a diverse workplace, they must prepare a plan of managing cultural diversity not only for the current status of the diversity in their organization but also for the very starting point of accommodating new employees with different cultural backgrounds. It is all about the preparation for recruiting different cultural backgrounds. Recruiting strategies At first, the organization must create a diverse pool of candidates. If they always recruit from the same places, they will get the same people; then here is the question on what recruiting strategies the organization has and how their diversity recruiting plan will answer these following questions: 1. Is their lead time for hiring†¦show more content†¦How is their organization viewed in the communities where they want to recruit? Do they sponsor events such as Chinese New Year or other traditional celebrations and events? Do they get involved with community organizations? 7. Where have they advertised for candidates? 8. Do they look for internal candidates? Can employee affinity groups help? Do they talk to suppliers and vendors that champion diversity and let them know that they have positions available? Do they have best practices in recruiting they might adopt? 9. Do their website and promotional literature tell that diversity is part of their mission statement? 10. Do online photos and illustrations reflect real diversity in their organization? The responses to these questions could help the organization draft a new recruiting strategy or take to modify and carry out an existing one with an improved diversity perspective (Lieberman et.al. 2003, p. 76). Attitudes to job candidates After having a clear strategy for recruiting diversified workforce, the next problem is what the organization or especially interviewers‟ attitudes are to job candidates. Despite what many believe, hiring candidates for a new position or a promotion is never completely objective. In fact, unconscious bias and assumptions always try to interfere with the ability to interview and select the best candidate. Those biases and assumptions can affect everything, including