MGT8007 RISK MANAGEMENT ASSIGNMENT
1. Organizational Context
The present paper reviews the risks faced by a Japanese car maker in the Australian market. Toyota, one of the leading world car manufacturers, has reportedly faced immense pressures and unprecedented competition in the Australian economy. Toyota is already setting its foot off the Australian economy, and getting its car manufacturing plant shut down in Melbourne, resulting in massive loss of profits in the years to come. Toyota in Australia is one of the oldest car manufacturing companies after Ford, and General Motors made their grounds firm here in the country. Despite, the fact that the company has failed to cope up with the risks arising in Australian automotive industry cannot be denied. The paper discusses the common threats that Toyota is yet to overcome and the opportunities that the company is yet to utilize in the context of ‘project risk management.'The project revolves around the risks about the manufacturing plants of Toyota based in Australia.The risks that are identified for Toyota mostly follow from the periodicals and newspaper articles; while the alternative approaches to managing them are learned from some of the most remarkable journals and books in the field of automotive industry.
2. The Annotated Bibliography
2.1 Threat and Opportunity in the Project Environment
2.1.1 Monden, Y., 2011. Toyota Production System: An Integrated Approach to Just-In-Time. 4th ed. New York: CRC Press.
As per the views ofMonden, (2011), Toyota’s Just In Time (JIT) management system is by far the most innovative form of waste and cost management invested till date. The JIT system of wastes management assures that the excess wastes are readily identified in the manufacturing process. The wastes can be in the form of input wastes, spare parts, and other types of wastes which are generated while manufacturing the cars. The JIT system has already helped the company reduce unnecessary costs by capturing the value leakages and all other loopholes in the supply chain of logistics. The book also stresses on the fact that Toyota has gained a patent for the famous JIT system, which has made the companywitnessprofits owing to the core competencies and competitive advantage. Other opportunities of Toyota include its economies of scale, implying that the companycan reduce it’s per unit cost by expanding production capacity.