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Business Writing Sample: Essay on Toyota Value Chain Model

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Value chain model is understood as the set of those instruments and processes, which help the company to develop the production and the quality of products. Due to the classical scheme, the chain value involves the organization peculiarities of the enterprise, human resource management, logistics strategy, services, marketing, and production systems.

As for the value chain of Toyota Company, it should be mentioned that the value chain model of Toyota automobile services is based on the special attitude towards relations with stakeholders.

First of all, the company is focused on customers as the most important and influential stakeholders’ group. The basic principles of the Toyota proclaim themselves in providing clients with the best products and to promote the best services. The greatest advantage of Toyota in the context of value chain evaluation is being concerned about ecological issues. Toyota company was called one of the best ecologically-friendly enterprises in the world. Such an achievement became possible for Toyota due to the work of the company’s engineers, who worked out clean and energetically efficient details for vehicles.

Production and logistics of the company are based on the widely spread network. The enterprise does not produce details and raw materials for automobiles by itself, but import them from suppliers, who are located both in Japan and outside the country. As effective methods of logistics management Toyota Company implies Just-in-time strategy and Milk Run. Those strategies make it possible for the company to decrease the amount of time, which is needed for gathering materials and transporting them to the producer. In the process of production itself, attention is paid to possible defects. Special technology developed at Toyota manufacturing points is able to notice defective details immediately and to change criteria of the production system.

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