4 How can a company such as Toyota assure itself that the large investment it makes in...

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4 How can a company such as Toyota assure itself that the large investment it makes in training, paying overtime to employees while they engage in problem solving activities etc., gets them a worthwhile return on investment? With all car mass-production ceased in Australia by late 2017, the new models of imported vehicles were planned by all the major companies, who remained buoyant about their prospects in the local market, because prices and margins are high in Australia, compared with USA and quite a few other companies. GM Holden announced over 20 new imported models, as did most other brands from low priced to luxury brands, yet after year on year growth for many years, 2018 and particularly 2019 brought significant reductions in demand. Consumer confidence declined, and many individuals and businesses decided to keep their existing vehicles for longer, rather than purchase new models. This industry level challenge was particularly strong in the luxury segment. It was postulated that as the housing price bubble burst in 2018, people felt less wealthy so bought less cars. Going forward, it becomes very tricky to try to predict sales and consumer preference trends. Yet despite this challenge, Toyota maintained its first position in market share, with the success of its imported Camry and other vehicles. Toyota has now dominated the taxi market. People buy this brand because of the efficiency of its value chain, that underpins its value proposition, meaning the benefits in terms of features, durability and reliability, for the price of the offering.

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Management

ISBN: 9780324317985

7th Edition

Authors: Richard L. Daft

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