Toyota Motor Sales Case
TMS is sales and marketing subsidiary of TMC, manufacturing and selling vehicles to TMS.
Toyota Motor Sales are discussing a change—more authority and responsibility to TMS – cost center to profit center Pro: including finance, marketing, human resources, operations and dealer-support functions. Opp: focus on short-term profit and sacrifice TMS’s goal of growth in US and long-term commitment to customers; lack of experience to fill a profit center manager’s role.
Function of TMS: providing vehicles, parts, and service and sales support to Toyota and Lexus dealers by nine regional offices and three distributorships.
Regional manager role
All dealer related activities; supervising, training and evaluating employees; achieve sales penetration, customer satisfaction and operating budget objectives. Dealer related activities took most of their time. Cash flow is the biggest problem in bad economic times.
Sales forecasts and plans
1 Five or longer strategic plan; annual sales and profit plan. Began with managers in TMS’s planning department making predictions of future automobile market segments; Selected segments TMS wanted to participate; worked with TMC in Japan. 2 Annual planning process: TMS managers set a target for sales and market share. TMS sales Dep. developed a sales plan to achieve sales target( like sales projections by car line, region) 3 Regional managers are not effectively involved in this process: TMS more efficient because of better knowledge of macroeconomic factors; the accuracy of managers’ plans were found inconsistent. 4 expense budget by regional personnel and sales projections were reviewed in meetings
Constant production rate policy
TMC maintained a steady production rates—greater and more efficient utilization of fixed assets and labor and eased the suppler scheduling prob. Stick labors costs; JIT system relied heavily on suppler network.
Allocation of automobiles to regions
4 month order...
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