Toyota company in Malaysiaandanalyse how covid-19 had affected theirdemand analysis, forecasting, cost and production analysis,pricing decision, policies, and practices.You may emphasize primarily on solving business problems and decision-making by applying the theories and principlesof microeconomics and macroeconomics.

Executive Summary

Summary of this assignment

Despite the Covid-19 pandemic, which has been spreading since the beginning of 2020, Toyota was able to continue corporate activities through the implementation of the various infection prevention, and working together with their partners including dealers and suppliers in Malaysia. The study looks at how Toyota's operation activities such as demand, forecasting, cost and production, pricing decision, policies and practices were impacted by Covid - 19. Different firms used a number of strategies to be able to cope with Covid -19 Toyota being one of them.

Explanation:

The study's motive is to come up with solution to the business problems facing the company during the pandemic. The strategy used in finding alternative ways of carrying out the business during Covid- 19 influences the type of decisions made by the dealers in the industry. The decisions made have to be sound economically since they affect a number of stakeholders including shareholders, employees, management, the government, suppliers and the customers who are the most important aspect.

Toyota Motor Corporation which is an automobile company is a Japanese multinational manufacturer based in Toyota which was founded and incorporated in 1937. It is one of the largest automobile manufacturers in the world producing about 10 million vehicles in a year. Negative impact of the pandemic on Toyota Motors is the decline in the profits and the company forgoing the raise of base salaries to the employees.

Demand analysis is the process of understanding the customer demand for a product or service in a specific target market. The demand analysis before the covid 19 crisis indicates a huge demand for the Toyota motors which can be attributed to the large population in Malaysia and the quality of Toyota that give them an added advantage. After the crisis, the demand that had gone down during the covid -19 pandemic is slowly rising. Reports indicate that more than 17,000 units were sold in Malaysia in the beginning of the year with a market share of 12.1 per cent. The company attributes the strong sales to the improving conditions of the covid 18 pandemic. The company should continue following the measures put by the government of Malaysia on preventing the pandemic so that they can continue with the sales to their targeted customers and markets.

Forecasting is the process of using previous data to be able to make informed estimates that are predictive to determine the future of the company. Before the crisis the forecast on the sales of the motors was positive and each year the targeted number of units was sold out to the population. After the covid 19 pandemic, auto sales have been revised down by the forecasters on the total industry volume. This is due to the delay in the operation resumption amid movement restrictions. The solution is to forecast a reasonable number of vehicles they can be able to sale accurately so that they do not make losses.

Cost and production analysis is concerned with determining money value of the inputs that is labor and the raw material as the overall cost of production which helps in making decisions on the production. The cost of production went up since the company had to pay their employees despite the profits declining during the pandemic. This will be improved as the economy is regaining and sales are recovering.

During the crisis the pricing decisions remained constant since most businesses were making losses. Incentives to customers during the pandemic could mean more losses on the company's strategy to survive reduced sales. The Toyota motors continue with its operation in Malaysia adhering to the covid 19 preventive measures instituted by the government. This will see the automobile recovering its operation from the crisis.

Toyota's ability to develop automobiles that have a superior quality will ensure its recovery from the crisis since they have loyal customers due to their competitive prices. Toyota's key competency is as a result of innovative production methods and processes.

References;

Ohno, T., & Bodek, N. (2019). Genealogy of the Toyota production system. Toyota Production System, 75-92. https://doi.org/10.4324/9780429273018-4

Toyota production system. (2019). CIRP Encyclopedia of Production Engineering, 1748-1748. https://doi.org/10.1007/978-3-662-53120-4_300712