OUTLINE THE CHOSEN TOPIC
Technological advancement has been rapid in recent years, leading to several changes in the conventional modes of operation. Digital technologies are the techniques, tools, and machines used to seek solutions to management and other contemporary problems faced in the current world. According to Grishikashvili et al. (2014), technology has been used by firms and multinational corporations (MNCs) to improve their logistics and supply chain management and meet the expectations of customers in the dynamic business field. A firm that fails to embrace technology can be sluggish in development, thereby losing out on customers who might opt for better services from other similar firms that are exploiting the advancements in technology. In this proposal, a study is conducted on Toyota, a Japanese MNC established in 1937 and has gone global in its operations (Nakamura, 2022). To ensure they cope with the demands of their customers, automobile manufacturers have embraced technological advancement in all their sectors of production. Toyota is among the leading automobile manufacturers that operate globally and expands their business regularly.
OBJECTIVES
For the establishment of the research goal, the following objectives will inform the study:
- To establish the impacts of a technological revolution in the operations and management of logistics and supply chain management at Toyota.
- To evaluate the success of Toyota’s supply chain management and logistics with the advent of technological use in their operations.
- To know the various types of digital technologies relevant to every sector of production within Toyota company.
LITERATURE REVIEW
According to Pagani and Pardo (2017), the digital revolution is a roadmap to the success of a company. Through digital revolutions and transformations, companies can work, manage, market, and implement innovations. In the current business market with many dynamics, companies need to embrace the changes that come along with technology as it is beneficial in terms of the production of items and saves the company the costs involved with hiring human labor. The automotive industry is very competitive, and people have their preferred brands. To fairly compete in such an environment, a company must be innovative and be a step ahead by ensuring they embrace the changes that come with technology. Implementation of digital technologies such as social media use, television for adverts, the internet, and websites have encouraged cooperation between consumers and automobile industries. Inquiring about the specifications of a given type of automobile has been made easier by the introduction of social media. Technology has made the world a global village, and people can browse from the comfort of their homes and offices and make inquiries about a particular vehicle.
In the early 1990s, the operations of automobile companies saw significant competition, and creativity was needed for a company to stay in business. The concept of globalization affected major industries across the world. Companies needed help with the sourcing and delivery of raw materials from various parts of the world to their preferred areas of delivery. As a result, there was a need to change the operation strategy, and the supply chain management of various companies had to come in and salvage the situation. According to Bhamu and Singh (2014), the cost of delivering raw materials skyrocketed, and innovation was the only strategy that helped companies stay in business. At the time, the companies were facing challenges; technology was undergoing major changes, and it was a blessing to the companies that found it wise to integrate technological systems in their supply chain management and logistics.
The adoption of effective supply chain management within a contemporary organization affects the company in one way or another. Companies have a competitive advantage over their rivals by how they are managed and operated. Toyota is an automobile company striving to compete with astute companies in the industry that have managed their operations by having adept supply chain management systems. According to Waters and Rinsler (2014), organizations have moved a notch higher and no longer compete in processes and manufacturing but in the supply chain aspect. The supply chain aspect of the operation of a company involves the flow of product movement and other company inventories. The movement from the storage point to the point of consumption constitutes the supply chain, and it is what companies compete on. Technological advancements have made it possible for companies to have smooth operations in their supply chain, and Toyota has been no exception.
The e-commerce practices adopted by the company have made it to be the leading MNC in sales and production over the last decade. Through the e-commerce system, the company effectively and efficiently manages its supply chain management as well as its business-to-business transactions. The company has adopted a particular global online marketplace as a platform to advertise all its products and services. The Covisnt is a platform used by Toyota to manage its sales and deliver services to preferred customers globally.
Through integration and embracing the technological changes in their system of operation, Toyota has remained a global change agent within the hyper-competitive automobile industry. Technology has enabled the company to refine its logistics and supply chain management, which has been integral in the movement of goods and products from their go-downs to consumers in various parts of the world. According to Hines (2016), Toyota’s operations have been seamless as a result of its well-managed logistics and supply chain management, which have been facilitated by technological advancements that have led to the improvement of systems that track every activity the company undertakes.
Strategic partnerships have been developed out of trust between the company and its suppliers as a result of effective and efficient supply chain and logistics management. This has been possible due to the integration of technology into the system, which makes it possible for the supplier to be aware of the operations and activities going on in the company. Inventory handling has been improved in the company due to the technological systems in place that ensure there are no instances of inventory overstocking; there is a real-time tracking system in the company that makes it possible for the management to be aware of the inventories that need replacement (Fiskel, 2015).
Supplier relationship management, which has been made technology privy, is another sector where Toyota benefits from the integration of technology in their systems. Supplier relationship management system ensures the business operational costs are significantly reduced. Value creation and product differentiation facilitate the reduction of operational costs (Hines, 2016). In an attempt to retain various suppliers, the company has a system that shares various profits accrued by the company with the supplier depending on their activities and supplies to the company. Without a technological system, it would not be easy to establish how suppliers performed in their respective areas of delivery.
PROPOSED METHODOLOGY
The research methodology is an integral part of a research study; the activities that inform the goal of the research are all studied in this particular section. According to Yazdani et al. (2017), methodology incorporates all types of strategies and methods used in the study during the collection of data. The methodology part of the research covers the study’s blueprint for the intended participants and data collection tools and techniques. The research strategy, demographics, sampling, sample population, tools, reliability and validity of the questionnaire, and the procedure used during data collection and analysis will be covered in this section of the research. According to Yazdani et al. (2017), research methodologies include all the relevant information to the research, such as the strategies and methods to be picked for the study and those that will not guide the study effectively. Through research methodology, the researcher is able to explain how they arrived at a particular research method and the idea that informed their choice. Through this research, the investigator wants to examine the role technology plays in the advancement and improvement of operations at Toyota.
Various factors associated with the research will be discussed in this section as well; this helps in the selection of the appropriate technique and methods, which will inform the organization of the research within the provided time frame. Research method designs utilize various methods; these approaches are crucial in supporting the findings of the research. This section showcases how research was conducted within the allocated time frame. It is a route to identify the formulae used by the researcher to formulate their problems and objectives and the presentation of the results of the data they have gathered in the research process. Since this study aims to find the role of technological advancement in Toyota’s operations, two research designs will be used to guide the findings. The descriptive research design and the exploratory research design will be used simultaneously to find the role and importance of technological development in Toyota’s operations. In the technology-driven world, all industries rely on the intelligence of the computer to remain ahead in their operations and production. Toyota, being a multinational corporation, has taken center stage in ensuring they maximize the use of technology in their operations to gain maximum profits and design the best products for their customers. With increasing technological advancements, Toyota is positioned to gain more, design, and develop the best automobile products that will improve its rating in the dynamic market.
This study will employ both the quantitative and qualitative aspects of research. A case study will be used as the research approach to examine how technological advancement has improved the supply chain management and logistics of MNCs, with Toyota as the selected multinational company. According to Mishra and Alok (2022), a case study is a specific example of operations taken from a particular business. In this case, Toyota will be used to define the improvement in service delivery and management due to technological advancements. Case studies are important because they allow us to predict what is likely to happen in the future regarding the operations of a particular business. Other than predictions, case studies can offer guidance and explanations for particular phenomena Mishra and Alok (2022).
Qualitative and Quantitative Research Methods
The study will use the two dominant research procedures to inform data collection and analysis. Interviews and questionnaires will be used during the active phase of data collection since they are believed to be nearly accurate and free from bias if the study participants are genuine and have no ulterior motives in name-tainting or praising the organization they are employed in. While the selected research methods for the study are qualitative and quantitative studies, the study will be guided by the steps made in the technological field to enhance the performance and operations of multinational corporations; in this instance, Toyota has been picked to be the company for the study. Thus, the approach taken to examine the impacts of technology in the development and operations of organizations has taken the case study approach. A case study is a classic example of an instance taken from a specific business, and in this instance, it is Toyota’s automobile company (Koskinen et al., 2015). This research focuses on the global operations of Toyota to exhaustively ascertain the implications of technology in the operations and management of systems in Toyota and its various stores across the world. Toyota, being a leading automobile company majoring in affordable automobiles, is ideal for study since other companies can gain from them and borrow ideas on how to operate a successful business with the assistance of technological enhancement. According to Koskinen et al. (2015), case studies serve a variety of purposes, which include prediction, guidance, and explanation of instances. Taking Toyota as the case study for this examination, the findings will guide, inform, and direct the choice of operations and management in other companies. Through the study on Toyota, other automobile companies can appreciate and learn the impacts that technology has had on the operations and development of systems and management in the MNCs.
The key financial performance of the company has been informed by technological advancements that have enhanced the ways of collecting funds at the company. The empirical analysis of the best multiple to use in the valuation of the company’s performance typically falls into two distinct categories: the absolute and the relative valuation models. The absolute valuation model endeavors to find the intrinsic value of the investment based on the fundamental parameters. The fundamental parameters that dictate growth in a company include dividends, cash, and growth rate within a specified time. The dividend discount model, discounted cash flow model, residual income model, and asset-based models are all used in the evaluation of the performance of the company (Hitchner, 2003). The management of the system at Toyota has been enhanced due to technological changes. Thus, management and operations of the systems above have been easy, making the company have a noticeable change that other companies have been embracing in a bid to improve their service and production of items. The absolute valuation model, on the other hand, works on a comparison of the company with other like-minded companies. The method involves the calculation of multiple ratios and comparing them to those of other companies to evaluate which company performs better than the other. This type of valuation is easier to apply, and investors generally opt for it when they intend to invest in a particular company (Jones & Van, 2008)
Through the application of various technological interventions, Toyota has found models that befit their business style and enhanced their operations. The dividend discounted model is a basic and most valuation model used by most companies. Toyota, being one of the notable and profitable companies, employs the use of this model, which works on the basis of examining the value of the firm based on the dividends they pay their shareholders. Since Toyota uses technologically enhanced systems in its financial management, it cannot fail to evaluate correctly what its shareholders are paid as dividends. As such, the model is the most accurate since a company paying dividends is doing so on the basis of the shareholders remitting their share of the investment. According to Mercer et al. (2010), the dividend discounted model applies to companies that pay dividends to their shareholders only. The payment of the dividend to the shareholders is not enough; rather, the payment should be stable and predictable. Toyota has managed to adhere to this model on all fronts since it has embraced technology use in its systems, which is proving to be a worthy investment.
The empirical data of this research will be gathered using quantitative surveys. In the recent past, quantitative research has been viewed as a way of presenting hypotheses, identification of ideas, and gathering statistical data to quantify quantitative problems. One area of research that needs diligent selection and procedure is the identification of the sample and target population. According to Snyder (2019), data analysis is done using statistical approaches. The operations and improvements of Toyota have been studied and documented. The empirical data of this research revolves around some parameters that hold the importance of the company’s operations and enhancement in production through the guidance of technological advancement. One area of empirical study into the impacts of technology in the improvement of operations and production at Toyota is quality control. With the help of technology through artificial intelligence, Toyota is among the companies that endeavor to improve the quality of their products. The metrics used in the evaluation of the improvement in quality include defect rates, customer complaints, and recall over time. Toyota has made a reputable name over the years since it has had a few instances of customer complaints about the quality of its products. Another parameter for the evaluation of empirical data at Toyota is cost reduction. The analysis of the costs per unit produced, the total cost for manufacturing products, and the cost-saving initiatives can be used as a yardstick to evaluate the operational improvements at Toyota, which will be integral in the overall cost reduction of the products sold at Toyota. Supply chain management is another parameter used to gauge the empirical performance of the organization. Supplier performance, on-time delivery, and inventory management practices by the company can be a guide to the role that technology has played in the management of operations at Toyota. Data on energy consumption, waste generation, and emissions by the operations of Toyota are key in the evaluation of Toyota’s strategies with regard to environmental sustainability and protection. With the continued advancement in technology, Toyota has ensured that they have systems that will ensure they are compliant with the policies in place aimed at environmental protection against pollution.
Statistical surveys are an integral part of quantitative research; causal correlations and percentages inform quantitative data to a greater extent. The empirical aspect of this study will be informed by the observations, interviews, and qualitative research methodologies to come up with a comprehensive study design. The most popular means of gathering information, according to Snyder (2019), is through interviews focused on a specific topic or a broader set of emerging concerns in society. Through technology, it has been easier to conduct statistical surveys on the views of customers regarding the services offered to them at the company. This, in turn, has had an impact on how the company is managed. Customer satisfaction at Toyota can be evaluated on the quality of the products offered, the reliability of the services, and the availability of after-sales services. Feedback from customers helps the company to have strategies in place and improve the delivery of services that could not have appealed to customers. Another metric used in this section is production efficiency. Through technology, the company is able to identify the machine utilization rates, production cycle, and labor productivity; if these parameters do not conform to what the customers are in need of, the company adjusts in record time so as to retain their customers. The surveys involve the collection of data (mostly quantitative) from a selected sample population. After the collected data has been analyzed, the company can initiate conclusions on trends, patterns, and areas of improvement. All these are possible with advanced technology, which makes it possible for companies to reach their customers remotely in various parts of the world. Toyota can go after only some of their one-caus customers to determine satisfaction and determine the areas of improvement that need movement.
Reference List
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Nakamura, M. (2022). A City Founded on the Automobile Industry and Agriculture: Is Cooperation Between Agriculture and Industry Possible? In Toyota City in Transition: A Motor Town Facing Globalization and Social Changes (pp. 71–92). Singapore: Springer Nature Singapore.
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Snyder, H. (2019). Literature review as a research methodology: An overview and guidelines. Journal of Business Research, pp. 104, 333–339.
Yazdani, M., Zarate, P., Coulibaly, A. and Zavadskas, E.K. (2017). A group decision-making support system in logistics and supply chain management. Expert Systems with Applications, 88, pp.376-392.
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