Operational Strategy of Toyota & Westpac-Free-Samples for Students

Question: Identify two Organizations in an Industry of your Choice. These Organizations must have clearly different value chain designs and Structures. Describe, Compare and Contrast a primary Customer Benefits Package for each firm. Answer: Introduction Proper management of the operations is an essential aspect for the success of every company. Operations management refers to all the activities that are required to create and deliver products or the services from procurement and then conversion then distribution. Operations management is important since it complements all other activities in an organization and thus their efficient coordination. Value chain is a set of activities that adds value to the operation of a given company such as production, marketing and after-sales services. Customer benefits package adds value to the company and is usually a set of goods and services that the consumer buys altogether. This research was conducted to establish and unveil various aspects in operations management of two companies; Toyota Corporation and Westpac Banking Cooperation. Toyota deals in the production of physical goods while on the other hand, Westpac concentrates on offering services. The research attempts to establish, compare and contrast the two companies regarding the customer benefits package, value chain analysis, and their operation structure. The report is critical to give a deeper understanding of the similarities and differences that exist between the good based and service based organizations (Sheehan and Bruni, 2015, pp. 317-324) Aims of the Research The main aims of this research establish the customer benefits package, value chain and the operational strategy of Toyota and Westpac. This information is necessary to reveal the differences that exist in the operations management of the two companies thus can realize the differences and similarities that exist between the good based and a service based company. Further, the research aims to help discover the various advantages and disadvantages of operational strategy of each company (Serguei and Christopher, 2009). Company Background Information Westpac banking Corporation is one of the Australian banks and a financial service provider with its main offices based in Westpac Place, in Sydney. The company has over 13.1 million customers making it to among the largest banking and financial service provider businesses in the world. The company has over 1429 branches that are spread across the world. The company has a vision of becoming the largest great service organizations to help customers, communities, and people to grow in all ways (Laszlo and Zhexembayeva, 2011). On the other hand, Toyota is a Japanese international company that manufactures and sales the automotive. Its headquarters are located in Toyota, Aichi, in Japan but have its subsidiaries spread across the globe. Currently, the company is ranked second in the world automotive industry after the German's Volkswagen Group. Toyota also sells the hybrid electric vehicles around the world. Thus, Toyota has employed hundred thousand of people across the world. Findings Customer benefits Package Customer benefits package entails a set of goods or service that the consumer buys altogether. Usually, the company offers the primary goods or services to the customers but also provides certain additional goods or services to the customers thus forming a full customers benefits package. This is very critical for every company since it gives companies competitive advantage since when customers find value in the organizations offering, they are likely to get attracted (Weber, 2008, pp. 247 - 261). Toyota has considered customer benefits package in many ways. The company has quality control measures to ensure that only vehicles of the highest quality are produced. Also, the organization provides a vigorous test of the vehicles before releasing to the customers to ensure that the clients benefit more from them. Besides, Toyota has plans in place to give a comprehensive warranty to its customers which cover major parts of the vehicles thus increasing the customers benefits (Song, Cadeaux and Yu, 2015). Also, Toyota has introduced a software solution called Toyota as a way to add value to its customers. All Toyota customers can Toyota for free which will give them the ability to manage their vehicles online. Customers get a lifetime service to track all things about their cars. Besides, the system also serves as a lifetime channel for the customers to access the offers, features and new ongoing enhancements in the company (Hudadoff, 2009, pp. 1-11). All these factors have significantly contributed to the improvement of the customer benefits package thus increasing the satisfaction of the client. Customer Benefits Package for Toyota Figure 1.1 On the other hand, Westpac just like Toyota has also considered the customer benefits package in different ways. Firstly, the company has partnered with Samsung and introduced the Samsung pay, one of the services that come for the Westpac's customers who hold the debit or credit card. These services help Westpac customers for easier payments thus delivering value to them. Also, Westpac has been innovative to embrace the latest technology in the market to ensure that its clients benefit most from this (Cameron, 2014, pp. 22-27). The company has also embraced SMS and USSD services to allow customers to transact conveniently with the organization from wherever they are thus adding value. Customer Benefits Package for Westpac Banking Corporation Figure 1.2 Value Chain Design and Structure The value chain of Toyota includes five most important aspects. These are the outbound logistics, the inbound logistics, the operations, marketing and then the sales service. Firstly, for the incoming services, Toyota employs the JIT (Just-in-Time) system of production that reduces inventory cost (David and James, 2009). The company collaborates with the third party in the supply of the raw materials. Secondly, in the chain, the company considers operation which mainly covers the actual manufacturing and the assembling process of the Toyota vehicles. Toyota controls its process to ensure the high quality and also meeting the customer requirements (Kemp, 2008). Regarding the outbound logistics, Toyota transfers the final products to the various parties such to the retailers, wholesalers and even the final customers. The company has taken full control of the outbound logistics to ensure that the products are distributed smoothly to the respective parties in time. After outbound logistics, the company considers the marketing and sales aspects (Kvint, 2009). The organization emphasizes on the adherence to the planned marketing mix, advertisements, sales and promotions among others. Finally, Toyota offers the product services and also the support activities to increase value to its customers. On the other hand, Westpac Cooperation seeks to satisfy the financial needs of the customers throughout the world. The company has segmented its customers and aligned its divisions to deliver value to its customers. Westpac has five branches in its value chain; the Consumer Bank, the Business Bank, Westpac New Zealand, the BT Financial Group and the Westpac Institutional Bank. Each division offers services to customers per specific locations (Microlinks, 2009). Differences in the value chains of Toyota and Westpac are clear in the sense that Toyota focuses so much on increasing the production of the highest quality vehicles while the value chain of Westpac focuses on reaching many people all over the world to satisfy their financial needs (Stark, 2015). Westpacs chain focuses much on reaching the segmented groups of customers while Toyotas chain focuses more on increasing the satisfaction level of the customers (Holloway and Parmigiani, 2014, pp. 460). However, it is clear that both companies have some similarities. Both companies have incorporated technology as an added benefit to the customers Value Chain Design Figure 1.3 According to figure 1.2, the value chain covers many aspects of the companys operation. It entails the partners and suppliers, the procurement aspect, sustainability and product development among many others. All these aspects work together to deliver value to the company. Also, certain aspects such as the technology and logistics should be incorporated to the operation of the company to increase efficiency of the process. Advantages of the Value Chains Toyotas value chain is associated with various advantages. Firstly, the chain encourages a high level of cost leadership. The five step value chain of Toyota enhances quality in the production of vehicles (Erica, 2012). Besides, the emphasis on meeting the customer requirements helps Toyota to achieve differentiation f its vehicles. On the other hand, Westpac's value chain of embracing five division help serve many customers with specific needs and satisfy their financial needs. The chain is perfect for gaining a competitive advantage in the market since it targets and satisfies various customers distributed in different parts of the world (Cooper and Owen, 2007, pp. 649-667). Disadvantages of the value Chains The value chains of Toyota and Westpac also have weaknesses. Implementing Toyota's value chain is difficult, and its adoption is not easy. Besides, this type of value chains limits innovation on the entire production system. Strict adherence to the existing systems limits innovation in the company (David, Scott and Mark, 2012). The improvement of the chain is important and needs to be adopted all the time, and thus it is important that the chain accommodates creativity and innovation. Analysis Westpac banking Cooperation has incorporated its business and operational strategy in their operation for efficiency. The strategic vision of Westpac Cooperation is to become the world leader in service provision, to help customers, people and communities to prosper and grow in many ways. The companys strategy is to deliver its vision through the provision of superior returns for the shareholders, to build a deep and enduring customer relationship, and staying the best in the community to attract the best people. The competitive priorities of Westpac are to create economic solutions and also help customers achieve sustainable financial futures (Bebbington, Frame and Thomson, 2007, pp. 356-381). Therefore, from the discussion above it is clear that the value chain of Westpac and its customer benefits package are in line with its mission, vision and its competitive strategies thus helping the company. This has helped Westpac to gain more competitive advantage and stay on top (Warf and Stutz, 2007). On the other hand, Toyota has its business strategies embodied in a value chain that aligns with its strategic vision, mission, and its business and the operational strategies. The vision of Toyota is to embrace great steps and be able to develop eco-cars reduce carbon in the society through improvements of the existing technology and the adoption of the new technology (Rumelt, 2011). The company was founded on a mission to develop key technologies that will help it make vehicles that become popular with the consumers. The competitive priorities of Toyota are to work mutually with the partners to deliver the best technology, prioritize safety and also embrace research and development in the organization (Zhexembayeva, 2014). Recommendations As a recommendation, Westpac needs to improve on its customer benefits package to attract more customers. Increased value in the services is likely to attract more customers for the Westpacs banking and finance services. This will improve and help achieve the strategic vision of this organization. For Toyota, it is recommended that the organization improves on its value chain to be in a way that encourages creativity and innovation. Strict adherence to the existing process hinders the creative mind and thus reduces the flexibility which increases process improvements. Adoption of these aspects is likely to improve the performance of Westpac and Toyota respectively. Conclusion In conclusion, operation management is necessary for the success of every business organization. Customer Benefits Package (CBP) and value chains are some of the major aspects of operation management. Different companies offer customer benefits package differently to attract many customers to the company. Also, companies employ different value chains depending on their nature. It is important that companies align their operations with the vision, mission, and their objectives. Well managed operations are likely to impact positively to the company by improving their competitive advantage in their respective industries. References Bebbington, J., Frame, B. and Thomson, I. (2007). "Theorizing engagement: the potential of the critical dialogic approach." Accounting Auditing Accountability Journal 20, pp. 356-381 Cameron, B. 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