BUSINESS MODEL INTERROGATION & DEVELOPMENT Essay - 1

BUSINESS MODEL INTERROGATION & DEVELOPMENT - Essay Example Therefore it is extremely important for managers to develop a sound business model as failing to do so would severely disrupt business operations (Hedman and Kalling, 2003). It is with regards to this fact that the researcher will be attempting to evaluate the business model of Toyota Motor Corporation (TMC). Emphasis will be given the manner in which the managers in this company have integrated and developed the business model. The researcher will explain the company’s performance and strategies in the dimensions of product and capital market. Besides that focus will be laid on the organization’s product portfolio. This will allow the researcher to comment on the advantages and drawbacks of the business model implemented by Toyota Motor Corporation and what extent the internal organizational structure contributed to the business model. In that way the researcher will be able to make recommendations regarding any changes that need to be brought within the business model and the organizational structure. TMC is a Multinational Corporation based in Japan which is mainly engaged in manufacturing and distribution of automobiles. The organization operates in three business segments which are automobile production, house design and financial services (Toyota, 2015a). Toyota is presently the market leader in the automobile industry. The company has achieved this stature by selling cars, minivans and trucks as a part of its business in the automobile segment (Thomson Reuters, 2015). Toyota’s business model is based on two fundamental strong frameworks: Kaizen and the lean production system (also referred to as the Toyota Production system). Kaizen means incessant improvements that are to be bought in the quality of products. The managers of Toyota believe in working their way towards innovation in order to develop processes that are aimed towards continuous product development and improvement. Kaizen is an integrated strategy which