Manufacturing

Different manufacturing companies apply different techniques and strategies in their production processes with the objectives of achieving high standards of quality possible for their products. The objectives of these manufacturing companies have been motivated by increased competition for markets, changing technological developments, environmental concerns, increased demand for resources and demands from both internal and external customers (Nielsen-Englyst, 2003).

This paper takes a deep insight into production processes of jewelry rings at Tiffany & Co. , with particular emphasis to needs assessment for quality improvement. Current Situation Founded way back in 1837, Tiffany & Co. is currently one of the most prolific jewelry manufactures with a worldwide network of shop outlets. The jewelry company is particularly famous for its thematic channel set engagement and wedding rings. The company’s unique jewelry items are usually produced through a combination of manual and automated processes which ultimately culminate to authoritative brilliance of finished products.

Tiffany & Co. has notably eliminated the prevalence of symmetrical and consistency errors in its production services by adopting a computer aided technology for designing and creating rings. As a result, the computer aided production system has enabled the company to increase its production capacity by cutting down on production costs, reducing labor intensity and production errors. Currently, Tiffany’s & Co. jewelry production process include: designing, programming, setting wax impressions, investment, melting, cast transformation, cleaning of casts, polishing, setting and quality check. These steps are observed as illustrated below:

• Designing marks the first step in the production process of Tiffany’s & Co. jewelry. The company uses multi-dimensional computer software to design the shape and determine the components of rings. Special tailored or customized designs demanded by customers are also fed into the computers at this point.
• The second stage of the jewelry production process involves programming, whereby the computer programs are coordinated to a printer that molds wax.
• The creation of wax impression form the third phase and it is at this stage that the printer for molding wax creates rings in wax form.
• The wax is then transferred to an investment, a jewelry production term that refers to a production slate.
• A melting process which lasts overnight follows, resulting to the baking of the investment by way of clearing the wax from the ring’s cavity.
• The ring is then cast from the investment’s cavity.
• The cast is then cleaned extensively.
• The ring is then hand-polished to achieve optimum brilliance.
• Setting form the second last phase in the production process and it is at this stage that the rings are crafted by highly qualified staff to achieve sophisticated settings.
• Quality control is the final phase in the production process of Tiffany & Co. jewelry rings.

If the quality is approved by the quality assessment team, the rings are released to the distribution department. Tiffany’s & Co. As-Is Flowchart Needs Assessment for Quality Improvement As much as the Tiffany & Co. has achieved marked improvements in its production process through the introduction of computer aided designs, the process is too rigid and cannot enable the company to achieve its strategic plan of expanding its market share through increased production and improved quality of its jewelry products.

For example, the feeding of customer design orders to the computer system at the design phase is evidence that the company’s system does not provide adequate interaction between the company and its external customers. In effect, the company’s is forced to use extra resources to feed the designs from the company’s premises, a process that could eliminated by simply adopting interactive management systems. As Nielsen-Englyst (2003) posited, the operation’s functions of a firm can only be achieved upon the designation of an appropriate system capable of matching the firm’s production needs.

Therefore, tiffany & Co. must eliminate the rigidity in the flow of its jewelry production process so as to enable the company achieve its corporate objectives through increased satisfaction of both the internal and external customers. Tiffany & Co. is a production company that is evidently in its advanced stages of operations where it is expected to be externally supportive. Companies experiencing the progressive stages in development must always incorporate operations strategies to the overall engineering, production, marketing and distribution strategies (Nielsen-Englyst, 2003).

It is upon this realization that recommend to the management team of Tiffany & Co. to adopt the manufacturing resource planning (MRP II), a more progressive production system so as to achieve sustained quality improvement. The MRP II is capable of addressing numerous manufacturing solutions particularly in terms of facilitating working strategies between the management and operational functions of the firm through the integration of different functions of the firm (Walder 1992).

By adopting MRP II, Tiffany & Co. will be able to introduce interactive aspects in its production utilities such as the automated computer designs by encouraging increased interactions among the internal customers and more importantly, between the internal customers and the internal customers. As such, customers will be able to directly feed their preferred jewelry designs to the system and thereby eliminate the need of the company employees to perform the same function from the company computers. These benefits will translate to increased order uptake and productive use of human resources in other demanding functions in the production processes.

The company will also be able to employ just-in-time production strategies in supply chain and inventory management by using the customer fed designs in the system to forecast the raw material need for production at particular times. The adoption of MRP II will enable Tiffany & Co. to improve its manufacturing processes by as much as 25 percent, a precedent that will significantly transform the company’s market presence and profits according to its strategic plan. Conclusion My findings in this simulation activity demonstrate the significance of continuous process improvements as key components of success in any manufacturing company.

By and large, a manufacturing company which does not pursue constant process improvement strategies risks experiencing redundancy of staff and production facilities because of the difference between the company’s corporate objectives and market realities. As Walder (1992) observed, process innovations and the alignment and integration of technological and management systems to the needs of the organization are prerequisite requirements for successful strategic management of manufacturing activities.

Therefore, the significance of my process improvement project is validated by my proposal of achieving high quality production standards by adopting persistent practical and corrective measures in manufacturing processes.

References

1. Neilslen-Englyst, L. (2003). Operations strategy formation…a continuous process. Integrated Manufacturing Systems, 14(8), 669-690.
2. Walder, J. (1992). CIM: Principles of computer integrated manufacturing. John Wiley and Sons Limited.

Is recycling worth the effort in the 21st century and what is recycling? The definition of recycle given by dictionary is “to pass again through a series of changes or treatments ; to process (as liquid body waste, glass, or cans) in order to regain material for human use ; to reuse or make (a substance) available for reuse for biological activities through natural processes of biochemical degradation or modification”. Recycling has been around for thousands of years.

Not only do people recycle but nature has been recycling plants, trees, insects and creatures for as long as there has been nature. We recycle mostly because it is the smart thing to do for our earth but it also helps save energy, creates jobs and reduces many of our problems with litter and trash. In 1031 Japan was the first country recorded to use waste paper for making new paper. In 1776 America declared its independence from England and they advertised for scrap metals like iron kettles and pots to melt down for their weapons.

In 1865 The Salvation Army started in England and they start collecting and recycling unwanted goods of all kinds and they give jobs to the poor and uneducated and then it comes to the United States in the 1890’s. In 1904 the first aluminum can recycling plant opens in Chicago and in Cleveland Ohio and the all aluminum can is introduced in 1964. The value of the aluminum can starts a huge recycling system and for redeeming the used beverage containers.

Landfills came about in the 1940’s and 1950’s when these huge areas became available and they were very popular because of the it was to easy to toss unused products away. No one knew at that time how they would grow and multiply to how they are today. In 1965 the Solid Waste Disposal Act is passed by Congress which recognizes trash as a national issue and to develop programs to state and local governments with disposal programs. In the 1970’s the fist national Earth Day is held on April 22, 1970 and the U. S.

Environmental Protection Agency is created to response to the public’s concern for the environment and waste disposal. In the early 70’s the PET plastic bottle is also introduced and starts replacing many glass bottles but recycling for PET plastic bottles does not start until 1977. It is not until the late 80’s that Rhode Island is the first state to pass a mandatory recycling law for aluminum and tin cans, glass, plastic bottles and newspapers where residents and businesses must separate these items from the regular trash and recycle.

As stated by the White House Task Force on Recycling in 1998; Recycling is everybody’s business. From industry to government, from schools to our very own households, America’s commitment to recycling has helped keep our communities clean and our economy strong. Federal agencies are further reducing waste generation, increasing recycling, and increasing purchases of recycled products. Working together, there is even more we can do. Today, we challenge every American to step forward, take action, and contribute to this important national effort.

By bringing new partners to the recycling efforts of businesses and families across the nation, we will better protect our natural resources, improve our quality of life, and strengthen our economy. So is recycling worth it? Michael Shapiro, director of U. S. Environmental Protection Agency, the Office of Solid Waste states “A well-run curbside recycling program can cost anywhere from $50 to more than $150 per ton…trash collection and disposal programs, on the other hand, cost anywhere from $70 to more than $200 per ton.

This demonstrates that, while there’s still room for improvements, recycling can be cost-effective. ” Many people still say it costs more than it is worth. John Tierney wrote in the New York Times Magazine that Recycling is Garbage and stated “Mandatory recycling programs offer mainly short-term benefits to a few groups — politicians, public relations consultants, environmental organizations and waste handling corporations — while diverting money from genuine social and environmental problems. Recycling may be the most wasteful activity in modern America…”

Controversy over the benefits of recycling bubbled up in 1996 when columnist John Tierney posited in a New York Times Magazine article that “recycling is garbage. ”Officials in some cities claim that curbside recycling programs are cheaper than burying the garbage in a landfill, which can be true in places where the landfill fees are high and the collection costs aren’t as exorbitant as in New York. But officials who claim that recycling programs save money often don’t fully account for the costs. A lot of programs, especially in the early years, have used funny-money economics to justify recycling,” says Chaz Miller, a contributing editor for Recycling Times, a trade newspaper. “There’s been a messianic zeal that’s hurt the cause. The American public loves recycling, but we have to do it efficiently. It should be a business, not a religion. “

Recycling programs didn’t fare well in a Federally financed study conducted by the the Solid Waste Association of North America, a trade association for municipal waste-management officials. The study painstakingly analyzed costs in six communities (Minneapolis; Palm Beach, Fla. Seattle; Scottsdale, Ariz; Sevierville, Tenn. , and Springfield, Mass. ). It found that all but one of the curbside recycling programs, and all the composting operations and waste-to-energy incinerators, increased the cost of waste disposal. (The exception was Seattle’s curbside program, which was slightly cheaper by one-tenth of 1 percent than putting the garbage in a landfill. ) Studies in European cities have reached similar conclusions. Recycling has been notoriously unprofitable in Germany, whose national program is even less efficient than New York’s.

We have to recognize that recycling costs money,” says William Franklin, an engineer who has conducted a national study of recycling costs for the not-for-profit group Keep America Beautiful. He estimates that, at today’s prices, a curbside recycling program typically adds 15 percent to the costs of waste disposal — and more if communities get too ambitious. Franklin and other researchers have concluded that recycling does at least save energy — the extra fuel burned while picking up recyclables is more than offset by the energy savings from manufacturing less virgin paper, glass and metal. The net result of recycling is lower energy consumption and lower releases of air and water pollutants,” says Richard Denison, a senior scientist at the Environmental Defense Fund, which has calculated the ecological benefits of recycling.

When the research firm Franklin Associates examined the issue a decade ago, it found that the value of the materials recovered from curbside recycling was far less than the extra costs of collection, transportation, sorting and processing incurred by municipalities.

Plain and simple, recycling still costs more than landfilling in most locales. This fact, coupled with the revelation that the so-called “landfill crisis” of the mid-1990s may have been overblown most of our landfills still have considerable capacity and do not pose health hazards to surrounding communities means that recycling has not caught on the way some environmentalists were hoping it would. Education, Logistics and Marketing Strategies Can Lower Recycling Costs However, many cities have found ways to recycle economically.

They have cut costs by scaling back the frequency of curbside pickups and automating sorting and processing. They’ve also found larger, more lucrative markets for the recyclables, such as developing countries eager to reuse our cast-off items. Increased efforts by green groups to educate the public about the benefits of recycling have also helped. Today, dozens of U. S. cities are diverting upwards of 30 percent of their solid waste streams to recycling.

The United States 2 million tons of materials are recycled in the United States. 53. 4 % of all paper products are being recycled. There is about 100% increase in the total recycling in the United States during the past decade.? Each person produces 4. 6 lbs. of trash per day in the United States. In 2005, roughly 8,550 curbside recycling programs existed throughout the United States. 8,875 programs existed in 2003. The United States recycles about 32% of its waste today. An average American produced 800 kilograms of rubbish in the year 2005, compared to only 577 kilograms per person in Western Europe.

Bibliography

1. http://www. benefits-of-recycling. com/historyofrecycling. html
2. http://www. benefits-of-recycling. com/recyclingstatistics. html
3. http://www. benefits-of-recycling. com/recyclingprices. htm
4. http://www. epa. gov/osw/nonhaz/municipal/pubs/msw2008rpt. pdf
5. http://www. merriam-webster. com/dictionary/recycling; “History of Recycling”, California Environmental Protection Agency Integrated Waste Management Board, 1997
6. http://www. epa. gov/osw/nonhaz/municipal/pubs/msw2008rpt. pdf “Recycling For The Future”

INTRODUCTION

In this fiercely aggressive business world, the goal of most firms is to establish distinctive or unique capabilities to gain a competitive advantage in the marketplace through utilising the most of their core competencies. Competencies refer to the fundamental knowledge owned by the firm (knowledge, know-how, experience, innovation and unique information), and to be distinctive they are not confined to functional domains but cut across the firm and its organisational boundaries (2002).

Today, business enterprises in developed countries operate in a more complicated, and more regulated, environment. The strategic task, then, is to create a distinctive way ahead, using whatever core competencies and resources at its disposal, against the background and influence of the environment. Through these distinctive capabilities the organisation seeks sustainable competitive advantage. Competition in many domestic and international markets appears to be entering a new phase, in which product quality and performance are becoming more important to customers than price.

In such markets, the effective management of the new product development process is the essence of competitive advantage. Due to such changes, a review of the organisations’ strategic capabilities is a must if they are to keep up with the demands of the changing times. This paper analyses the strategic capabilities of Toyota Company in face of the ever-stiffening competition in the automotive industry, as a potential tool to further strengthen Toyota’s position in the automobile market.

BRIEF TOYOTA  BACKGROUND

Toyota Motor Corporation is a famous Japanese multinational corporation, and is considered the world’s second largest automaker of automobiles, trucks, buses, robots, and providing financial services ( 2007). Its founder is Kiichiro Toyoda, born in 1894, and the son of Sakichi Toyoda, who became popular as the inventor of the automatic loom. Kiichiro inherited the spirit of research and creation from his father, and devoted his entire life to the manufacture of cars. After many years of hard work, Kiichiro finally succeeded in his completion of the A1 prototype vehicle in 1935, which arked the beginning of the history of the Toyota Motor Corporation ( 2007). The first Type A Engine produced in 1934 was used in the first Model A1 passenger car in May 1935 and the G1 truck in August 1935, and led to the production of the Model AA passenger car in 1936. In addition to being famous with its cars, it still participates in the textile business and makes automatic looms that are now fully computerised, and electric sewing machines that are available in different parts of the world.

It has several factories around the world, which serve to manufacture and assemble vehicles for local markets. The corporation’s factories are located in countries such as the United States, Australia, Canada, Poland, France, Czech Republic, United Kingdom, Turkey, South Africa, Brazil, Argentina, Venezuela, Mexico, Japan, Indonesia, Pakistan, India, Mexico, Malaysia, Thailand, China, Vietnam, and the Philippines. Despite the many locations of its factories, its headquarters is located in Toyota, Aichi, Japan (2007).

It invests a great deal of time and effort in its research into cleaner-burning vehicles, such as promoting a Hybrid Synergy Drive and running a Hydrogen fuel cell in its vehicles (2007). It has significant market shares in developed countries, such as the United States, Europe, Africa and Australia, and has significant markets in South East Asian countries. Its brands include the Scion, its division in the United States, Guam and Puerto Rico, and the Lexus, which is Toyota’s luxury vehicle brand ( 2007).

Aside from producing cars and other types of automobiles, such as SUVs and coasters, Toyota also, participate in rallying or racing. The company’s presence in Motorsport can be traced to the early 1970s, when Ove Andersson, a Swedish driver, drove for Toyota during the RAC Rally in Great Britain, and in succeeding years, Toyota Team Europe was formed ( 2007). Up to the present, Toyota cars are still being used in a variety of racing events in different countries around the world.

These events include the CART in Vancouver, the Le Mans, the Indy Racing League, the NASCAR, and the Toyota F1 Series (2007). As the leader in the industry of automobile manufacture and production, the company adopts a philosophy in terms of its production system, which is named The Toyota Way. The company’s philosophy in production involves a list of fourteen principles that are implemented in the company, and serve as guides to the operation of the company. This includes the following principles:

• Base the company’s management decisions on a long-term philosophy, even at the expense of short-term goals;
• Foster a continuous process flow to sight problems;
• Utilise “pull” systems to prevent over-production;
• Level out the workload of the workforce;
• Build a culture that stops to fix problems, in order to get quality perfect at the first try;
• Standardised tasks are the company’s foundation for its continuous improvement and the development of the employees;
• Use visual control to let problems surface; Use reliable and tested technology, which serves both the people and the company’s processes;
• Train leaders who understand the company’s work, live its philosophies, and share it to others;
• Train and develop a workforce who follow the company’s philosophy;
• Respect the work and responsibilities of partners and suppliers by challenging them and helping them improve;
• Actually immersing one’s self to understand the situation;
• Slow but sure decision-making through consensus, through considering a variety of options, and to implement decisions effectively and efficiently; and,
• Becoming a learning business organisation through expression and continuous improvement ( 2007) With these principles, the company is guided in terms of its operations and production. Through these principles and philosophies, it can become efficient and effective in manufacturing its products, keeping in mind the welfare of its employees, the image and brand of the company, and the satisfaction of its employees.

PESTLE Analysis

Currently, Toyota faces a need for accelerated investment, in order to deploy the new technologies, for pressing geo-political, economic, environmental and societal reasons. Political. Observers will see a continuing progression in the ruinous steps which have forced the industry into a socio-politico-economic corner. Whether this is related to flat demand or to the company’s creation of an ever-wider range of vehicles that many buyers seem to care little about, there is a problem. The company is likewise linked closely to the policies of governments, the earnings of banks. Little wonder then that so many emerging countries are keen to develop an auto sector or that there is such a political pressure to protect it in the developed countries.

Toyota Company is currently dominated by little more than a handful of firms, each wielding colossal financial, emotional and political power. The company’s approach to dealing with political institutions has not always been brilliant. It tends to be good on technical issues, although it has not always fully presented the longer-term options, in order to make the choices and their implications clear. Economic. For much of the developed world, and increasingly for the developing world, Toyota Company is a pillar company in auto mobile business, a flag of economic progress. Without Toyota Company in automotive industry, it is impossible to develop an efficient steel business, a plastic industry or a glass sector – other central foundations of economic progress.

The Toyota Company has been a core company, a unique economic phenomenon, which has dominated the twentieth century (2007). However, the automobile industry including the Toyota Company now suffers from a series of structural schisms and has become riddled with contradictions and economic discontinuities. For the capital markets and the finance sector, it has lost a lot of its significance, as a result of ever declining profits and stagnant sales. The proliferation of products means that it has become hopelessly wasteful of economic resources. While all these and more sound like a very gloomy assessment of such a vast economic phenomenon, the industry is not in the end despondent. A different future is possible for the industry, a highly desirable one. Social.

As part of the development in automotive industry, the Toyota Company actually affects the society as a whole. It employs millions of people directly, tens of millions indirectly. Its products have transformed society, bringing undreamed-of levels of mobility, changing the ways people live and work (2007). The social value of the additional mobility that this industry brings involves the value of the people being able to commute over longer distances easily, among many others. For most of its existence the Toyota Company has been a model of social discipline and control and it is not just that the auto sector offers a ‘pillar’ of something else.

There are, on the other hand, particular social issues to address in many developing countries, often those that are the result of an undertone of religious faith. Toyota company has the role to play in helping develop the mobility of such countries and it can be achieved at an acceptable social cost of the country is prepared to learn the necessary lessons from those who have traveled this route before it, and to make the necessary investments. Technological. The Toyota Company works on a scale so awesome and has an influence so vast that it is often difficult to see. The level and diversity of technologies that it must deploy are increasing, which imposes both new investment burdens and new uncertainties and risks (2007).

Roughly a million new cars and trucks are built around the world each week – they are easily the most complex products of their kind to be mass-produced in such volumes. The industry uses manufacturing technology that is the cutting edge of science. But still, the potential for developing coordination skills, intellectual capabilities and emotional sensitivities through electronic technologies remain far from fully exploited. There are numerous additional near-term technological opportunities to adapt the company to changing energy availability. The possibilities suggest that automotive technology is unexpectedly robust and provides a powerful defence against energy starvation even if the real price of oil climbs steadily during the next couple of decades. Legal.

Toyota Company is subject to numerous technical directives and regulations, as well as legislation of a more legal nature. The legislation covers areas such as competition law, intellectual property law, consumer protection and taxation, and emissions (air quality and fuels). When the auto parts industry reached full development, accelerated technological efforts were made to create a web of local suppliers that would make it possible to meet the growing legal requirements for the national integration of production. Environmental. Other than the vehicles themselves, and the roads and fuel needed to run them; the business is intricately tied to the manufacture of a wide range of components and the extraction of precious raw materials.

Indirectly, it brings people road congestion, too many fatalities and a wave of other environmental troubles. The effect to the Toyota Company is that they needed to establish R&D centres to take advantage of research infrastructure and human capital, so that they can develop vehicle products locally to satisfy the requirements of the environmental and safety regulations more effectively.

SWOT ANALYSIS Strengths.

One of Toyota’s most potent strength is that they are one of the world’s best known brands (2007). As they have been in the business for several years now, the experience that they have in manufacturing cannot be overemphasised. They already have built a solid reputation for being a dependable automaker.

Additionally, they have the strength of being diverse with respect to their product lines, having affiliated automotive brands including Aston Martin, Ford, Jaguar, Land Rover, Lincoln, Mazda, Mercury and Volvo, which allows clients to choose from a variety of car models to fit their lifestyle. They are also known to be supportive of societal causes, in particular the fight for breast cancer and support after the September 11 attacks in the U. S (“Toyota”, 2007). They pioneered the moving assembly line, which became their mechanism for making vehicles more efficiently and faster, therefore more affordable. Traditionally Toyota’s international operations were a source of that allowed the company to maintain its position as the second largest auto maker in the world and to respond to GM’s competitive moves. Weaknesses. The company’s organisational structure has become inefficient as the company became more complex.

This hindered Toyota’s ability to manage its international network of subsidiaries, branches, and companies. The weakness of its organisational strategy reflects to the speculations over the likely performance of Toyota in the future, as the company’s financing section is swamped down by hefty outstanding debts. The firm is not in risk of bankruptcy, but the Toyota management is in a tight spot, and has to be extremely vigilant to not make it any tighter. There is also a notable management issues within the company. Finally, because of the increasing competition, the company has witnessed a decline in overall sales, a weakness on their part as they have somehow failed to overcome the challenges that additional competition brings. Opportunities.

Toyota Motors Company has the distinct opportunity to have cleaner engine emissions, in alignment with their corporate responsibility to become environment-friendly. Through working with environmental groups to help clean the environment, they also have the opportunity to further enhance their image to the general public. Since they have already started investing in Solar Power, the end is a more viable prospect. Toyota could further widen the scope of their opportunities through specialising and rationalising its worldwide operations on a regional basis and to develop a network organisation in which its subsidiaries would increase their transnational linkages.

Besides Toyota learning about the possibilities of producing quality automotive products in their areas of operation at a comparative cost advantage, other relevant factors could bring about new opportunities for exporting vehicles: the parent company’s efficiency-seeking strategy; its competitive disadvantage in the small-car segment of the market and the competitors’ moves in this market-segment; and the new more flexible regulations in the respective countries in which they have manufacturing plants. Further, with Toyota’s existing capability to innovate on automobiles, they have the opportunity to penetrate a still larger scope of market. Threats. As with any firm in the automotive industry, Toyota faces very tight competitive rivalry in the auto market. Competition is escalating, with the threat of new entrants continuously flowing into the market from South Korea, China and new plants in Eastern Europe (2007).

Toyota is also exposed to the risk of movement in the price of raw materials such as steel, glass, rubber and fuel. The key economies in the US, Europe and the Pacific are also experiencing slow downs lately. These economic factors are latent threats for the company under analysis. Further, substitute products such as Natural gas, Electricity, Ethanol, Vegetable oil, Sunlight, Water poses a distinct threat to the sustainability of company sales. While Toyota strategies responded to the local opportunities and competitive advantages that were built over time in different national markets, the competitiveness of foreign operations was also dependent upon the company’s management capabilities and its overall position in the industry worldwide.

If such factors were to perform under expectation, their competitiveness in the international scene would suffer seriously (2007).

RESOURCE AUDIT

A resource is a basic element that a firm controls in order to best organise its operational processes. A resource, or set of resources, can be used to create competitive advantage (2002), that is why an audit of the resources of a firm is a must if it is to utilise them to create the latter. The sustainability of a company’s competitive advantage depends upon the ease with which the resources can be imitated or substituted (Peteraf, 1993). When resources are combined they can lead to the formation of competencies and capabilities ( 1990). Financial Resources.  Although Toyota Motor’s 2005 financial results showed a full-year net loss, the company still managed to come back in their expressive profits earning in 2007. As seen in the accounting ratios, the company managed to have an expressive positive change of 21. 4% in 2006 against its low performance in 2005 with only 2. 9% of change.

Toyota Accounting Ratios Human Resources. Toyota directly employs around 38,340 people in North America. It has made around $16. 8 billion in direct investments in North America. It has in total produced 14. 8 million vehicles, 2. 5 million vehicles sales (2005), 39. 2 million total vehicles sales, and purchased $26. billion worth of “parts, materials and components” as of December 2005 in North America. It has 1,745 North American dealers and has given around $301 million as philanthropy to the United States since 1991. Physical Resources. To date, Toyota has factories all over the world, manufacturing or assembling vehicles for local markets, including the Corolla. Toyota has manufacturing or assembly plants in Japan, Australia, Canada, Indonesia, Poland, South Africa, Turkey, the United Kingdom, the United States, France, Brazil, and more recently Pakistan, India, Argentina, Czech Republic, Mexico, Malaysia, Thailand, China, Vietnam, Venezuela, and the Philippines.

VALUE CHAIN ANALYSIS

1985) in his seminal work of value chain proposed it as a tool to identify and to analyse the origins of competitive advantages and suggested that the activities of the business could be grouped into two: primary and support activities. What activities a business undertakes is linked to achieving its competitive advantage, and Toyota seemed to be best prepared to implement a global strategy, because of the superior competitive advantages of its foreign operations compared with GM and Chrysler. Paradoxically, Toyota’s rivals showed a greater disposition to use resources from outside of the United States. It was not until 1994 that Toyota focused on developing a global strategy as a means to enhance its competitive position in the industry.

Before then, Toyota largely focused on building a strategy that would allow the company to recover its competitive position in its own home market, which was essential for survival. An analysis of the structural and institutional factors that shaped Toyota’s strategic response both to the new industry rules and the short-term challenges posed by other industry competitors explains this paradox. A number of broad sustainability challenges set the context for all of the value chain activities (see appendix 1). These issues apply across the value chain:

1. Population growth;
2. Urbanisation;
3. Child mortality;
4. Maternal health;
5. Infectious diseases;
6. Biodiversity;
7. Loss of ecosystem services;
8. Poverty;
9. Education; and
10. Gender Equality.

All these issues are attended to by the Toyota Motor Company in alignment with their efforts to maintain sustainable competitive advantage through preserving the good public image that their clients expect from them.

CORE COMPETENCIES

Toyota has several core competencies which they could utilise to further gain advantage over their competitors, and currently the company overtook General Motors in its market leadership in the automotive industry. One core competency of the company is their brand management. The strength of their automotive marketing has been such that their brand is known even in the parts of the world where cars are not the common medium of transportation.

Another core competency is their supply chain management, which links to their ability to maintain a steady stream of raw materials coming in for production because of their long-term good standing with their steel, glass, plastic and other raw materials supplier. Their highly coordinated logistics system handled by outsourced firms also form part of their core competencies, leading to excellent inventory management and always on schedule production activities. Another marked core competency is their ability at the moving assembly line. Being the pioneer of such mass production system, they were able to get ahead of the competitors manufacturing processes-wise and were also able to save on costs and time.

Yet another core competency is Toyota’s focusing on its product development technology under a single product-information-management program through standardising and incorporating them. If sustainable development is to achieve its potential, it must be integrated into the planning and measurement systems of business enterprises. And for that to happen, the concept must be articulated in terms that are familiar to business leaders. Many observers believe that more stakeholders — investors, consumers, nongovernmental organisations and others — will insist that companies to take environmental and social costs as seriously as they take purely financial costs.

In addition, investors are expected to increasingly seek out sustainable companies and avoid firms with poor environmental performance, judging the sustainable companies as better risks over the long term. Likewise, consumers are expected to search for products that perform well environmentally.

THE FUTURE OF TOYOTA

(1982) observed that the automotive industry has been depended upon by other industrial sectors to provide them with means with which to optimise their investment capital because of the transfer of its technology, which basically means that the manufacturing and materials handling processes that revolve around mass auto production will be, in the future, far removed from their original use through consulting engineering firms that undertake to design and equip factories.

The tendency for car manufacturers, then, will be to focus on competition that would become more rigorous, giving special attention to profit-gaining activities and concentrating also on arranging for financial, marketing and industrial cooperation among car makers. In the first three months of 2007, Toyota together with its half-owned subsidiary Daihatsu reported number one sales of 2. 348 million units. Toyota’s brand sales had risen 9. 2% largely on demand for Corolla and Camry sedans. The difference in performance was largely attributed to surging demand for fuel-efficient vehicles. In November 2006, Toyota Motor Manufacturing Texas added a facility in San Antonio. Toyota has experienced quality problems and was reproached by the Japanese Governement for its recall practices (2006). Toyota currently maintains over 16% of the US market share

Introduction

Business ethics focuses on ethical problems or moral and ethical principles that occurs in the business environment. Currently, there is an increasing conscience of market place and there have been more demand for ethical actions and process in the business. Through new laws and public initiatives firms are experiencing pressure to change its ethics (Donaldson & Werhane, 1979).

In paper manufacturing industries, the impact on natural environment has always been ignored since harmful effects and economic costs are not clear. Paper and pulp industries have treated air, land and water as free goods that are not owned by any body. Since air, land and water have large carrying capacity the individual firms see their involvement to pollution as negligible. On the other hand if the effect of environmental pollution of all the firms is combined the effects are enormous (Hond, de Bakker & Neergaard, 2007).

It is worth to point out that the effect of pollution does not result only from business activities but also from consumer utilization of manufactured goods. Problems of environmental pollution of manufacturing industries like paper manufacturing industries have various origins and require similar sets of varied solutions.  Since the environment is very complex and the systems interwoven, our duty in the protection of environment would extend beyond human welfare to other parts of the ecosystems.

Paper and industries produce enormous amount of waste chemicals during the process of manufacturing. The toxic substances include inorganic chemicals which are used for bleaching and pulping to slimicides. In addition polymers used for dry and wet strength and for retention are also produced. The toxic substances are then allowed to run freely into water sources and have caused a significant amount of water pollution. The toxic chemicals accumulate in water bodies and in some instances have caused contamination of the aquatic system.

Paper and pulp industries also produce air pollutants which include nitrous oxide, carbon dioxide, particulates and carbon monoxide. These pollutants contribute to ozone layer depletion, respiratory problems and global warming. Some of paper and pulp mills uses coal as the source of energy and have contributed to releases of arsenic, mercury and radioactive substances (OECD, 2008).

Making of paper requires intensive energy which has forced the industries to establish power plant. The power plants are major contributor of air pollution and cause other damages on the extraction fields of oil and coal. In addition paper making has contributed in much solid waste production especially when there are inefficiencies in the use of law materials (Sisman & Korkut, 2003). Where there are many industries that recycle paper larger quantities of solid waste are produced. The fibers used in the manufacturing of paper may only be recycled to a limited number of times and therefore low quality and broken fibers are separated and form part of solid waste. Stickies and staples, pigments, coatings, dyes and ink are also washed off and form part of solid wastes.

The solid waste produced from paper manufacturing industries is dumped in land fill and occupy large portions of land. In some areas the waste is spread on a cropland as a method of disposal and has contributed to accumulation of trace contaminants in soil. The pollutants on cropland may be washed off by running water and deposited into a nearby stream or lakes. When solid waste is burnt in an incinerator emit pollutants in to the atmosphere and cause pollution problems (Hessing & Howlett, 1997).

Manufacturing of paper has also led to wide spread deforestation of major forests for production of paper pulp. Some of the paper pulp is obtained from old and often endangered forests. Some products of paper such as paper napkins, towels, post-it pads, office papers etc are used once and thrown away. Consumption of these products contributes to loss of forest resources. Environmental degradation resulting from manufacturing and use of paper products undermine the principles of sustainable development that of intergeneration equity (Sisman & Korkut, 2003).

Approaches to environmental protection may include ecological approaches, ethical approaches, market approaches, and environment and human rights approaches. An ecosystem is a self sustaining unit that includes both abiotic and biotic factors. Dynamic changes on the ecosystems may occur due to anthropogenic activities such as those caused by paper manufacturing industries. In order to achieve positive changes in the ecosystems, there is a need for an ecological balance and solving ecological problems using ecological methods (Theobald & Mills, 1973).

Ecological approaches for the protection of environment are of two kinds i.e. holism where nature is considered as a whole single unit and studies are carried out in order to understand the interactions of its components. The other kind of ecological approach to protection of environment is reductionism. Reductionism involves studying individual components of nature and analyzing the relationship of cause and effects.

The major aim of planning and protection of ecological systems is to provide a healthy environment in which human beings can exist and also to assess and develop the ecosystems in order to increase their productivities by reducing the negative effects. Other aims include protection for aesthetic value of the ecosystems, their diversity and balance of the ecosystems since every component of the ecosystem has an intrinsic value (Hond, de Bakker & Neergaard, 2007).

Human right approach to environmental protection is not a new concept. Several international agreement have addressed this issue ands many nations have legislations and constitutions addressing the issue of environment and human rights. On the other hand it is wise to link the rights of human being with the concept of sustainable development. The right of the human being to life is difficult to realize if fundamental rights to secure land, air and water are lacking (Adebowale, 2002). Human and environmental right approach involves life quality of all people as the central idea in the process of decision making.

Environment and human right approach employs two major approaches i.e. utilizing the existing rights of human being and developing new rights. The existing human rights are often distinguished as political and civil rights and cultural, social and economic rights. Civil rights offers for political and moral order and include equality, political association and participation and right of human being to life. Civil rights are based on human rights universal declaration of 1948. On the other hand cultural, social and economic rights offer standards for well being of an individual (Adebowale, 2002).

The global agreement on cultural, social and economic rights of 1966 provides for health rights and right of each and every one to control the natural resources which they possess. Social ecology on the other hand focuses on the historical appearance of hierarchy. Social view tries to get rid of the hierarchical relationship and explores for new technologies that would harmonize the relationship of human beings and nature (Barisani, MacConaill & Tierney, 1995).

Paper and pulp industries are affected by various environmental regulations and statutes. Among the laws that have been provided by federal regulatory body “(Environmental Protection Agency EPA)” include Acts that provides for clean water and air, Act of endangered species, Act of energy policy, federal amendments that provide for control of water pollution, prevention of pollution Act, recovery and conservation of resources Act, Act of safe water for drinking, control of toxic substances Act etc.

On the other hand paper manufacturing industries often commit environmental crimes since their activities violate the laws intended to protect the health of human beings and environment. Environmental laws mostly govern quality of water and air and provides ways in which disposal of hazardous waste would take place legally. When firms violate environmental crimes they became guilty of “white collar crime”. Such violators are often hit with jail time, probation, criminal fines etc. fines are used to deter big firms from committing environmental crimes (Mesothelioma, 2008).

According to environmentalists environmental issues arises since laws and regulations providing for property rights does not adequately offer protection. In addition the law does not define fully those rights. Secondly, environmentalist suggest that laws governing individual or tort claims that offer polluters with protection from legal claims make it difficult to sustain property rights legally.

On the other hand leaders of paper manufacturing industries suggest that environmental problems sustainability and health of the environment can be provided by free market. These leaders are driven by desires to realize profits and they do not care for the health of the environment (Donaldson & Werhane, 1979).

Conclusion

The environmental issues are defects of market. Due to pollution caused by paper manufacturing industry the market price of papers does not reflect the actual cost incurred in producing them and therefore there is inefficient commodity distribution, increases in waste and resources misallocation. The effect of market defects to the society decline economic welfare and therefore harms the whole society. On the other hand paper products provide many benefits to the society due increasing use of these products. It is therefore necessary for global transformation of paper consumption and production towards sustainable and socially and ecologically responsible practices (Ettlie, 2006).

Reference

1. Adebowale M (2002): Environment and Human Rights: A New Approach to Sustainable Development. Retrieved on 19th December 2008 from; http://www.ring-alliance.org/ring/ring_pdf/bp_envrights.pdf.
2. Barisani K, MacConaill P & Tierney P (1995): Opening Productive Partnerships: Concerted Efforts for Europe. ISBN 905199236X, IOS Press.
3. Donaldson T & Werhane P (1979): Ethical Issues in Business: A Philosophical Approach. ISBN 0132900645, Prentice-Hall.
4. Ettlie J (2006): Managing Innovation: New Technology, New Products, and New Services in a Global Economy. ISBN 075067895X, Butterworth-Heinemann.
5. Hessing M & Howlett M (1997): Canadian Natural Resource and Environmental Policy: Political Economy and Public Policy. ISBN 0774806141, UBC Press.
6. Hond F, de Bakker F & Neergaard P (2007): Managing Corporate Social Responsibility in Action: Talking, Doing and Measuring. ISBN 0754647218, Ashgate Publishing, Ltd.
7. Mesothelioma A (2008): Environmental Law Violations. Retrieved on 19th December 2008 from; http://www.lawyershop.com/practice-areas/criminal-law/white-collar-crimes/environmental-law-violations/.
8. OECD (2008): OECD Environmental Outlook to 2030.ISBN 926404048X, OECD Publishing,
9. Sisman E & Korkut A (2003):   Etliecological Approach on Environmental Pollution Journal of Environmental Protection and Ecology 4, No 3, 668-674.
10. Theobald R & Mills S (1973): The Failure of Success: Ecological Values Vs. Economic Myths. ISBN 067251818X, Bobbs-Merrill.

Explain the concept of the JIT system in detail. Also, discuss the characteristics, advantages and disadvantages of the JIT system. It is a management philosophy which aims at eliminating waste from every aspect of manufacturing and its related activities. The term JIT refers to producing only what is needed.

JIT is defined as “A technique for the organization of work-flows, to allow rapid, high quality, flexible production whilst minimizing manufacturing waste and stock levels.”  JIT production is defined as “A system which is driven by demand for finished products, whereby each component on a production line is produced only when needed for the next stage.”

JIT philosophy aims at reducing waste, which is defined by Fujio Cho of Toyota as – “any thing other than the minimum amount of equipment, materials, parts, space and worker’s time, which are absolutely required to add value to the product.” Thus waste is any resource used in excess of the minimum amount required to add value to the product.

More specifically JIT seeks to achieve the following goals.

1. Estimation of non-value added activities
2. Zero inventories
3. Batch size of one
4.  A 100% on time delivery service

The following are the key features / characteristics of JIT production. The production line is run on a demand pull basis, so that activity of each work station is authorized by the demand of downstream work stations. Thus, parts move through production system based on end unit demand, focusing on maintaining a constant flow of parts rather than batches of WIP.

Set-up time and manufacturing lead time are minimized. Demand-led production may require manufacturing small quantities of the product and producing small batches is economical only if set up time are small.

The production line is stopped if parts are absent or defective work is discovered. In absence of buffer stock emphasis is placed on ‘doing the job right the first time’. The focus is on eliminating the root causes of defect, waste or re-works. JIT goes hand in hand with ‘total quality’.In a JIT environment:

• Absence of large amount of materials and work-in-progress inventory enables to control inventory through personal observation;
• work-in-progress constitutes, a lower percentage of total cost of production;
• there is no need for an elaborate cost accounting system of stores requisition, material transfer notes, rework accounting and so forth.

All the above provide tremendous cost advantage to firms adopting JIT production. In a JIT environment, EOQ model has lost its relevance because the focus is on synchronizing delivery and usage. Such synchronization requires no stock be purchased in large and kept in stores. Should a firm adopt JIT purchasing depends on reduction in cost of quality, cost of delayed delivery, cost of early delivery, and ordering costs. All these cost be compared with premium payable to suppliers (by way of increase in cost of quality products for just in time supply). Firms using JIT purchasing have reported significant saving in cost.

Advantages and Disadvantages of Just in Time Systems

Traditionally manufacturers have forecasted demand for their products into the future and then have attempted to smooth out production to meet that forecasted demand. At the same time, they have also attempted to keep everyone as busy as possible producing output so as to maximize “efficiency” and (hopefully) reduce costs. Unfortunately, this approach has a number of major drawbacks including large inventories, long production times, high defect rates, production obsolescence, inability to meet delivery schedules, and (ironically) high costs. Non of this is obvious -if it were, companies would long ago have abandoned this approach. JIT is a production and inventory control system in which materials are purchased and units are produced only as needed to meet actual customer demand. In just in time manufacturing system inventories are reduced to the minimum and in some cases they are zero. JIT works in the three types of inventories:

• Raw materials: inventories provide insurance in case suppliers are late with deliveries.
• Work in process: inventories are maintained in case a work station is unable to operate due to a breakdown or other reason.
• Finished goods: inventories are maintained to accommodate unanticipated fluctuations in demand.

The main Advantages of JIT are the following:

• Funds that were tied up in inventories can be used elsewhere.
• Areas previously used to store inventories can be used for other more productive uses.
• Throughput time is reduced, resulting in greater potential output and quicker response to customers.
• Defect rates are reduced, resulting in less waste and greater customer satisfaction.
• Customer Needs – Balancing the goals of avoiding stock outs while minimizing inventory costs is at the heart of just-in-time inventory.

One of the main benefits of automated and efficient inventory replenishment systems is that you can quickly respond to reduced inventory levels. Companies are now equipped to pull back on stock in a given product category and ramp up inventory in another as customer needs and interests change.

Most companies find, however, that simply reducing inventories is not enough. To remain competitive in an ever changing and ever competitive business environment, must strive for continuous improvement. A real business example: Dell Computer Corporation.

In this company an order for a customized personal computer that comes in over the internet at 9 am, can be on a delivery truck to the customer by 9 p.m. In addition, Dell’s low cost production system allows it to under price its rivals by 10% to 15%. How does the company’s just in time system deliver lower costs? While machines from Compaq and IBM can languish on dealer shelves for two months Dell does not start ordering components and assembling computers until an order is booked. By ordering right before assembly, Dell figures it s parts, on average, are 60 days newer than those in an IBM or Compaq machine. That can translate into a 6% profit advantage in components alone.

Implementing thorough JIT procedures can involve a major overhaul of business systems -it may be difficult and expensive to introduce. Risk – JIT manufacturing also opens businesses to a number of risks, notably those associated with the supply chain. With no stocks to fall back on, a minor disruption in supplies to the business from just one supplier could force production to cease at very short notice. Coordination – A disadvantage of managing a just-in-time inventory system is that it requires significant coordination between retailers and suppliers in the distribution channel. Retailers often put major trust in suppliers by syncing their computer systems with suppliers so they can more directly monitor inventory levels at stores or in distribution centers to initiate rapid response to low stock levels. This usually means build up of technology infrastructure, which is costly. This coordinated effort is more involving on the whole than less time intensive inventory management systems.

Just-in-time manufacturing system is vulnerable to unexpected disruptions in supply chain. A production line can quickly come to a halt if essential parts are unavailable. Toyota, the developer of JIT, found this out the hard way. One Saturday, a fire at Aisin Seiki Company’s plant stopped the delivery of all break parts to Toyota. By Tuesday, Toyota had to close down all of its Japanese assembly line. By the time the supply of break parts had been restored, Toyota had lost an estimated $15 billion in sale.

Abstract

The decision to enter foreign market is an ever increasing daunting task to many organizations in today’s contemporary business world. Whenever the company wishes to enter a foreign market it is necessary, in fact mandatory to choose an entry strategy. This because the entry strategy has a bearing to the out come of the marketing targets, or in other words the strategy used determines successfulness of the marketing objectives. With these views, this paper shall look at the manufactures or producers options in respect to entering into a new foreign market. In order to do that effectively and efficient, the paper shall critically analyse the available option to export directly after manufacturing in home country and to manufacture locally in the foreign market. Thus by doing so, this paper shall demonstrate knowledge gain about the different strategic choices available to firms with regard to foreign market entry for the manufacturing firms. The other issue to be examined is to draw pros and cons of using these varied strategies.  

Introduction

When companies make a decision to enter into foreign market, the important aspect to consider is the international marketing strategy to use in order to be successful in their business operations.  However, before selecting an entry mode the prerequisite considerations are necessary to ensure selection of a vital entry mode. As Jean-Pierre (2008) puts it, the focus of marketing both local and international is to meet the needs of the consumer satisfactorily in order to gain profits. The global market has evolved over past decades and presently the modern marketer is concerned with strategies that are customer oriented.

According to Jobber (2002), international marketing refers to the marketing of goods and services outside the country that the firm is located. This marketing involves the marketing of the products in a more complex way than local or national marketing. Therefore international marketing calls for advanced marketing entry strategies to deal with dynamism, international competition and trade related regulations. There is a slight difference between international marketing and the global marketing according to Jobber (2002) who defines global marketing as marketing activities coordinated and integrated across multiple markets internationally. Xxxx, point out that the foreign marketing operations of the firm fall under the following categories.

Firstly, International category involves regional operations which are autonomous, Manufacturing and assembly, marketing and sales are decentralized beyond the home region, finished goods and intermediate products are exported and key decisions are made and coordinated from the central office in the home region of the firm. Secondly, Regional exporter that operates within a geographically defined region that crosses national boundaries and Markets served are culturally and economically homogenous. Thirdly, International to global that runs independent and mainly self-sufficient subsidiaries in a range of countries. The key functions like Research and Development, financing and sourcing are decentralized, but the home region is primary base for many functions of the company. Fourth category, Exporter firm that Runs operations from a central office in the home country. The sole activities are to exporting finished goods to a variety of countries.

And lastly, is the Global category characterized by highly decentralized organizations operating across a broad range of countries (Collis 2006: 328). In context of primacy of the base functional, global category assumes that home location is not a priori to be the primary base for any functional area. Therefore, each function such as Research and Development, marketing and sales, manufacturing and sourcing is performed in the location(s) globally. In general, (Papadopoulos and Heslop, 2005; Prystay, 200; Keegan and Green 2005) summarises that global companies differs with international and local companies in the aspect that global companies think globally while acting locally.

The prerequisite for the successful selection of marketing entry mode relies in the following essential domains for international and global marketing. Market selection is an essential part of the processes of deciding the appropriateness of a marketing strategy to be employed by the firm in internationalization of business operations (Davidson and Lawrence, 2006; Hellenes, 2008; Godiwalla and Cavusgil, 2006).

Market Selection

Market selection is an essential component to decision in relation to market entry strategy. To offer a solid reason for the importance of selecting market priori to choosing a market entry strategy; he reiterates that global market has over 200 independent nations with their own distinctive characteristics that makes the global market too vast (Jobber, 2002).  Therefore as a consequence, it is not possible for a business firm to operate in all of these markets. Additionally, there are various political, economical, social, developmental and geographical barriers in various markets that are varied which make entry to a number of markets very difficult. As a result, selecting an appropriate market is vital managerial processes towards adopting a suitable and sustainable marketing entry strategy.

In regard to market selection, Chan (2004) gives simplified processes to be engaged in selecting a suitable market for an organization in relation to international marketing. These tools of design are best suited for small scale, large scale and MNCs who would wish to partake on global scale or expansion.  The tool of design or parameters that stipulate criteria for market selection processes are: determining international marketing objectives, determine parameters for market selection, Preliminary Screening of the product in relation to demographic characteristics, structure of the economy, per capita income, and infrastructural factors political condition. After screening of the markets and elimination of uneconomical viable markets for the firm, the next procedure is to Short-list the Markets.

 Short- listing shall facilitated further screening and to scrutinize the most viable market amongst the long list.  The last process is to evaluate and Select the best markets to venture into. To these effect of market selection processes to be employed when selecting the best market5 for the firm to engage in international marketing, the flow diagram below enhances a better understanding.

Market Profile

Another important component that should accompany the decision geared towards selecting marketing entry mode for a firm is the market profiling. In this regard, market profiles of already selected market in the previous processes of market selection, is to help the firm to formulate appropriate marketing strategies.  Market profile can be general or specific. For specific market profile, it describes relevant characteristics of the market for a specific product in a nation of destination. This shall encompass brief general profile of the country and other part should consist of the market profile of product which proves to be of great help in the formulating appropriate product strategy, promotion strategy, distribution strategy and pricing strategy.  Jean-Pierre (2008), emphasize that market profile for product in this case should have aspects of: Factors relevant to pricing, laws related to product, price, promotion, distribution, imports; Channel characteristics; Customer characteristics; Market segment characteristics; Competitive characteristics; and past, present and forecast of the future trends in the domestic production, demand, imports and exports.

While the general market profile encompasses the information necessary for the firm to know in order to inform their marketing entry strategy.  Content wise, general market profile usually includes political characteristics. Secondly, general characteristics of a nation like the population characteristics. Thirdly, shall have economic policies and business regulations in general, nature and pattern of foreign trade. And lastly, clear understanding of the economic characteristics is important for successful marketing in international arena.  By gaining proper and clear understanding in these domains the firm marketing strategy to the country shall be in harmony with the area of operation regulations with focus to gain profit.

Market Segment Selection

The firm ought to make a strategic decision about the specific segment of the target market selected and profiled. Market segment selection depends on the factors which are organization related like product mix, marketing characteristics of the company and size and resources of the organization. Secondly, product related factors like innovativeness of the product in contrast to a ‘me too’ product (Davidson and Lawrence, 2006; Godiwalla and Cavusgil, 2006).

Thirdly, the competitive factors determine market segment selection. Such factors are the weaknesses and strengths competitors and the extent of competition in the different segments of the in the business field. For instance, the company with marketing strength and innovative product can easily settle for lucrative segment of the market then later spread to other segments within the market (Paul, Wetzel and Wu, 2003). Whereas a small firm with a ‘me too’ product is likely to compete directly with large established firms.

Foreign Market Entry Strategies

In regard to international marketing strategy, the most important and vital strategic decision is to choose and decide the mode of entering the foreign market. In classifying international marketing strategy to use in entering into a foreign market, Doole and Lowe (2001), proposed four classes depending on the level and mode of operation. These classes are: Manufacturing as market entry strategy: Own Subsidiary, Acquisition, Assembly and contract manufacturing. Direct Exporting as an entry strategy: includes Distributors, Agents, Direct Marketing, Franchising, and Management Contract. Cooperative or ownership Strategies: Joint Ventures, Strategic Alliances.  And lastly are the strategies relating to Indirect Exporting: Piggybacking, Trading Companies, Export Management Companies, Domestic Purchasing.

Direct Exporting as Market Entry Strategy

In employing direct exporting as an entry mode to foreign market Doole and Lowe (2001, p. 259) states that the nature, size and structure of the market will be significant to decide whether to use direct exporting as an entry mode or not. This mo0de is best for Companies that wish to pursue a long-term position in a foreign market; hence they have to be directly involved. Using the direct mode of entry allows the organization more control over activities like adaptation to local markets, marketing mix variables, market selection, and monitoring competitor’s activities.

The burden of use of direct exporting is the aspect that needs long term commitment and investment from the organization to be able to sustain foreign market activities.  However, due to high risks of conducting business through direct export establishing a beach head as an initial step in their exporting strategy is highly recommended for the firms intending to employ the strategy.  Furthermore, crucial success factor to the international expansion depends on organization’s attitude and commitment (Paul, Wetzel and Wu, 2003: 207). Despite the attitude and commitment of the firm towards expansion, the size of the firm may enhance or hinder international development as organizations rely on the capability of its human capital for planning for its activities.

Agents

Under direct export market entry strategies there are a number of the modes that ranges from Agents to management contract modes. The mode employs Agents which are in real sense individuals or companies operating (Tait, 2007) in a foreign market which has been selected by the organization that the organization enters into a contract to obtain orders for the product on the organization behalf. In return the agent firm or individual (s) are paid a commission for their work. The organization usually select the agents in case were there is low exposure to risk especially in dealing with non-direct competing products.

Agents can only prove beneficial to the organization when they can interlink and able ability to form relationships, adequately provide feedback regarding market development strategies and have thorough knowledge in regard to local market. However caution should be taken when selecting a suitable agent.  Collis (2006) suggest that a effective criteria for selecting a suitable agent should include financial strength analysis of the agent, determining the agents contracts and relationships with current and potential customers, Clarify the nature and extent of their relationships with competing organisations and evaluate the premises, equipment and resources available like capability of sales representatives and personality. The firm benefits since the agents do not have a share in the entire processes they only receive and work on the commission.

 Distributors

When the organization involves distributors in entry mode, the distributors take responsibility and ownership for the goods. Some scholars refer to the distributors as merchant middlemen who bear the profitability and risk of unsold products. In this context, the distributor seeks exclusive rights for the sales and servicing of a particular region under which represent the manufacturer or the producer (Keller, 1993; Henry, 1995).  Thus, distributors ought to be specialized in handling of the products and their marketing skills. Currently, the firms face difficulties in entering into a contract with a single distributor for several products since distributors are becoming fewer, larger and more specialised in their activities in the global market.

Management Contracts

When a firm uses management contracts in today’s cotemporary business world, it implies that the organization wishes to internationalise the services.  In this regard, Management contracts invoke marketing or selling knowledge, selling the skills and expertise of organizations in an international arena.  In most cases, the contracts apply to technical areas of business marketing. For instance, installing management operating and control systems and training of local work force are some of the aspect that relates to contract management aimed at taking over after the contractor is finished. In this case, turnkey operations methodology approach is recommended for setting up, running and training work force. Empirically, Tata Tea has a joint venture contracts to manage Sri Lanka Estate Management Services Pvt. Ltd.

Licensing ; Franchising

The use of Licensing ; franchising is advantageous to the organization since it only involve minimal attitudes, efforts and commitment of resources on the international marketer part, therefore prove to be easy  modes for entering the foreign market to international marketer. International licensing in regard to marketing, the licensor (producer or manufacturer) allows the licensee (a company in another country) to use its IPR (intellectual property Right) like patents, technical know-how, trade marks, marketing skills, and copyrights, technology (Paul, Wetzel and Wu, 2003; Keller, 1993; Henry, 1995; Von Keller, 2003).

 While Franchising is a form of licensing in which the franchiser (a parent company) allows the franchisee (another independent entity) the right to do business in a prescribed manner.  Licensing ; franchising mode can take the form of selling products, production and marketing techniques, using its name, or/ and general business approach.  Empirically, a number of foreign firms have employed this mode. For instance, Nike International ltd licensed Sierra Industrial Enterprises Ltd in 1995, while  General Electric (GE) which is US base multinational has licensed its patented technology to the a small scale unit in India (Jobber 2002).

 In summary Tait (2007) states that there are two main advantages of direct exporting as a market strategy entry mode to organizations. First and foremost, the use of intermediaries located in the foreign market facilitates more control over the marketing effort of the organization. And secondly, direct exporting provides the exporter first-hand knowledge of the foreign market which the organization intends to enter.  On the dark side of it, ?foreign distributor may represent competing brands without prior knowledge of the organization that paralyses the gains of the firm. It may prove to be costly and complicated since it requires some knowledge of the foreign market to hire appropriate distributors.

Manufacturing as Market Entry Strategy

In attempt to enter into a foreign market many firms become involved in foreign manufacturing strategies. These manufacturing strategies are necessary since firms are usually under pressure to demonstrate their commitment to regional market, hence necessitates organization’s direct involvement. Manufacturing in foreign markets is aimed at localizing the production of the products to be owned and exhibited by the locals who are the target market for the firms. The importance of manufacturing strategies as entry mode to foreign markets as highlighted by Doole and Lowe (2001) is to gain new business in the sense that the localized production has ability to persuade countries customers to change suppliers and is a strong mechanism to demonstrate a strong commitment of the organization to the region or the market.

This strategy is important in countries where importing companies are subject to restrictions as sales increase; therefore, foreign manufacturing location enhances local investment to defend existing business (Collis 2006: 329). Other cost related reasons are part of many reasons that can be used in augment for foreign manufacturing. For instance, by locating production in a foreign market it leads to significant reduction of labour, transport and raw materials costs. But, on the other hand it is costly to the organization to transfer technology, knowledge and skills. For an organization entering a foreign market trough foreign manufacturing, it shall avoid trade restrictions and policies unfavorable to exporters like tariffs or quotas that are usually enforced to limit importation of certain goods (Davidson and Lawrence, 2006; Hellenes, 2008). The two main modes of assembling and contract manufacturing are going to be discussed in relation to foreign manufacturing.

Assembly

In regard to Assembling, Collis (2006) refers to it establishing manufacturing plants in foreign markets for the purpose to assemble components manufactured in the home market by the organisation.  Assembling mode of the as an entry mode to foreign market usually attract certain business engaged in manufacturing, since importing raw materials or components to use in  assembling of the products attract low tariffs or charges barriers as opposed to already assembled or finished products, hence cutting down the production costs for the firm. This strategy use by firms who wish to enter foreign market should be involved in relatively technical business like of aircraft, automobile and ship manufacturing whereby these products in assembled form are bulky and large that involve high transportation cost.

Additionally, the assembling plants established can handle local management, development support and engineering skills that reduces the burden and administration cost to the organization. The assembling plant in foreign country can be actively involved in investment, development and production skills (Tait, 2007) that can lead to the company gaining profits form economies of scale. However, in the past decades many organizations have been constructing assembling plants with long term vision which should be revisited by placing a safe exit strategy should business environment change in unfavorable manner. There is usually a barrier to assembling mode approach to the businesses, since most governments feel it is not possible to gain the local economy in the long term unless the components are manufactured locally. Typical examples industries where there is extensive usage of the assembling as a market strategy entry mode are automobile companies. For example, the GM (General Motors) company is one of the firms that have successfully utilized the assembling strategy to gain its powerful growth.

Contract Manufacturing

In using contract manufacturing approach to market entry strategy, a firm arranges to have its products manufactured by an independent local company on a contractual basis. The entry mode v=can either include or involve the contract with a foreign firm to manufacture parts or finished, or assemble parts into finished products. After the local firm manufactures parts or finished product, or assemble parts into finished products, the international company assumes back the marketing responsibilities for the product sales, promotion and distribution in the foreign market (Chan 2004: 302).  In other words the international organization rents the local firm its capacity to produce products in a convenient way to avoid trade or manufacturing related barriers that are put in place to prevent the import of its products.

There is usually confusion in relation to licensing, but, Alexander, Charles (2002) puts clear that licensing differ from contract manufacturing in terms of legal relationship between the firms that are involved. The contracted local manufacturer production capacity is based on the international firm’s order it places to be produced. The international firm places order by setting the production volume and guarantees purchase for that order.  The proponents of this mode advocate it for its Lower labor costs, total cover against hostile foreign trade policies in some countries an overcoming of the protectionism policies.

It should be noted however that most firms may not venture into contract manufacturing as an entry mode not because they need to enter the market but to protect their products that they have already exported, while entering into new market is secondary. For instance, The Japanese car manufacturers in 1980s were subjected to an import limitation of assembled cars imported from Japan to US. In reaction for protecting their car brands already exported in the US, these firms began to build factories in United States in order to protect their market share (Jean-Pierre, 2008; 295) in automobile industry globally.

Conclusion

To sum up the paper, the paper has basically based on the international market entry strategies for the manufacturing firms to use in entering international market. In drawing the options in manufacturing firms, the paper has compared entry modes for production in home country and then marketing the products and localizing production in a foreign market region. However, it is important to note that the entry strategy selected should be in accordance with objectives, cost of operating the business and the sustainability of global market share. Therefore, the paper concludes that each of the method has special circumstances where it applies in today’s diverse, competitive and dynamic markets.

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This research is to larn and open our head about the waste in our environment and how to cut down or dispose the waste right. This is of import because our Earth is acquiring covered with a waste. The article below show the cogent evidence.

The UK produces more than 434 million metric tons of waste every twelvemonth. Every twelvemonth UK families throw off the equivalent of 3 million bus coachs ( about 30 million metric tons ) , a waiting line of which would stretch from London to Sydney ( Australia ) and back. On norm, each individual in the UK, throws off seven times their organic structure weight ( about 500kg ) in trash every twelvemonth.

I would strongly believe the Earth would truly appreciate and thankful to hold homos who know how to cut down or dispose the waste with a right manner.

Introduction

The dumping of waste at suited sites around the state is the usual agencies of disposal worldwide. It may be the quickest and the cheapest manner to acquire rid of waste but it is non a solution to the job of waste disposal. Indeed, at times is has led to major catastrophes. Landfill is an operation where the waste is used to make full up digging or natural hollow in the land. A shit may be good served but non ever.

In the UK, possibly 90 % of all waste including toxic and other unsafe waste is still disposed of by landfill. ? So we need to halt shit the waste and make a proper manner to dispose all the waste. This is to forestall the land H2O pollution.

As a consequences, we need to recycle all the wastes. Recycling is a processing used stuffs into new merchandises in order to forestall waste of potentially utile stuffs, cut down the ingestion of fresh natural stuffs, cut down energy use, cut down air pollution, H2O pollution and lower nursery gas. The commence waste that we can recycle are fictile, steel, gum elastic, glass, wood, paper and so on. Different waste difference type and method of recycle.

Plastic

Plastic is one of the most material waste around the universe. Plastic is light weight and versatile, doing it an ideal stuff for many applications. When we recycle the plastic, we will cut down the volume of waste traveling into the landfill, reduces the sum of oil used for fictile production and reduces the sum of energy consumed. We need to recycle plastic because plastic can take up to 500 old ages to break up. One metric ton of plastics is tantamount to 20,000 two litre drinks bottles or 120,000 bearer bags.?

Presents, the demand and used of plastic are acquiring addition. Most of them are seeking to alter the used of other stuff to plastic. For illustration, autos are progressively utilizing fictile constituents in an attempt to cut down vehicle weight and better fuel ingestion. Then, nutrient is being repackaged in plastic instead than glass or Sn in order to cut down weight and merchandise harm.

The considerable growing in plastic usage is due to the good belongingss of plastics. These include:

1. Extreme versatility and ability to be tailored to run into really specific proficient demands.
2. Lighter weight than viing stuffs, cut downing fuel ingestion during transit.
3. Extreme lastingness.
4. Resistance to chemicals, H2O and impact.
5. Good safety and hygiene belongingss for nutrient packaging.
6. Excellent thermal and electrical insularity belongingss.
7. Relatively cheap to bring forth.

However, the are a batch type of plastics such as Polyethylene Terephthalate, High Density Polyethylene, Polyvinyl Chloride, Low Density Polyethylene, Polypropylene, Polystyrene and many more. Different plastic have different strength, stamina, denseness, runing point, life clip and utilizations. Some can be make for nutrient container and some ca n’t because incorporate chemical and toxic. Some can be make for utilizing in high force per unit area and high temperature. The following tabular array illustrates the most common types of plastics used, their applications and the symbol which is frequently used to place them on signifiers of plastic packaging.

Polymer Types

Examples of applications

Polyethylene Terephthalate

Fizzy drink, H2O bottles, salad trays, medical specialty containers

High Density Polyethylene

Milk bottles, bleach, cleaners and most shampoo bottles.

Polyvinyl Chloride

Pipes, adjustments, window and door frames ( stiff PVC ) , thermic insularity ( PVC froth ) and automotive parts.

Low Density Polyethylene

Carrier bags, bin line drives, boxing movies.

Polypropylene

Margarine bath, microwaveable repast trays, besides produced as fibers and fibrils for rugs, wall coverings

Polystyrene

Yoghurt pots, foam beefburger boxes and egg cartons, fictile cutter, protective packaging for electronic goods and playthings. Insulating stuff in the edifice and building industry.

Unallocated Mentions

Any other plastics that do non fall into any of the above classs – for illustration polycarbonate which is frequently used in glazing for the aircraft industry

Plastic recycling procedure

There are three cardinal factors when believing about how to recycle – The 3 R ‘s:

Recycling is an first-class manner of salvaging energy and conserving the environment because 1 recycled fictile bottle can salvage adequate energy to power a 60-watt visible radiation bulb for 3 hours. 4 To make the recycle procedure, there are a few stairss such as shredding, dividing, runing and remanufacturing. These are the common measure to make the recycle procedure but different type of plastic required different measure of remanufacturing.

Shreding

Shreding is a cutting procedure. We will set all the fictile waste into a shredding machine and the machine will tear up the waste until it ‘s become little pieces or grain.

Separating

There are 3 phases of dividing. Blowing, drifting and centrifution. Once we finish tear uping all the waste, we will make a blowing procedure. This procedure is to take all the unwanted igniter stuffs such as paper labels and mulcts.

Before the grains go into a floating procedure, it must travel into a scrubber machine. During this procedure, the grain will be washed with a particular detergent. This is to take the nutrient that might stay on the inside surface of bottles or containers, gum that is used at the label ‘s containers and any soil that might be present. After that, it will travel into drifting container. In this container, the grain will be drain with H2O. Then we will see that all the heavier grain like Polyethylene Terephthalate ( PET ) will be sink while the lighter grain like Polypropylene ( PP ) and High Density Polyethylene ( HDPE ) will be drifting at the top. So, we have separated the different type of plastic. The last measure of separating is a centrifution. This measure is similar with a blowing procedure.

Melting

Once we done separated the fictile base on their group, we have to run it. Different group require different thaw point. For illustration, the thaw point for HDPE is 130-135 & A ; deg ; C while the thaw point for LDPE is around 110-115 & A ; deg ; C. After that, it will travel into a chilling procedure and will be cut to go a little flake. This flake is called ‘pallet ‘ . Pallet is a fictile natural stuff and this procedure is called ‘repelletizing ‘ .

Remanufacturing

This is a last measure before the wastes become a new merchandise. Once once more, there are many type of remanufacturing such as injection mold, blow mold, calendaring, extruder, thermoforming and many more. Most of the plastic merchandises are made by injection molding. Example of the merchandises are fork, spoon, home base, bowl, toys, disc casing and many more. Blow mold is merely for green goods bottles and the calendaring is for doing a fictile sheet. Extruder is a procedure to do a long tubing or hosiery.

Future development

Plastic being used widely for our day-to-day needs – plastic bag, nutrient container, bottle, packaging, etc. Therefore, a batch of plastic is required and there should be new coevals, development and uninterrupted research to counterbalance with today ‘s life style. Invention is really indispensable to procure a strong hereafter for the interest of environmental protection and the sustainability of merchandises based from plastic. Therefore, technology company will be given to plan more sophisticated machine which can recycle the plastic with assortment of advantages in footings of quality of merchandise, cost of production and clip consuming.

Beside that, we besides have to believe about a new merchandise made by plastic in order to replace other merchandise which have been made by other stuff such as steel. For illustration, auto organic structure. Currently, about 95 % of the auto organic structure in the universe utilizing steel and merely 5 % is utilizing C fiber. This is because, the cost to bring forth the C fiber is so high. As a consequence, we need to make a research to better the plastic capableness. Once we archive the hereafter program, we will be able to increase the demand of plastic. Stating that point, authorities may be can do an offer to purchase a fictile waste from people. As a consequences, people are seeking to maintain their fictile waste and sell it. In the other manus, we are non merely can cut down the waste but we manage to bring forth some gross.

Decision

Recycling is the best solution for waste direction and to derive sustainability stuff. It is non easy to develop new engineerings and methods for recycle. Therefore, allow us made usage of it sagely and pull off this waste decently even though the utilizations of plastic is acquiring higher.