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Toyota Corp. Weakness Assessment

Weakness 1: Ford Motors High cost structure
Recommendation Implantation
Positive Ramifications
Negative Ramifications
Toyota has the largest recalls in history
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Weakness 2: Toyota has the largest recall
Recommendation Implantation
Positive Ramifications
Negative Ramifications
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References
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Step 1
Ford Motors has a high cost structure. Its fixed costs are higher than those of its competitors, especially foreign car makers. This places Ford at a disadvantage. Its cars have to be priced higher than those of its competitors. The high cost structure increases the costs of cars made by Ford, makes it less competitive, and also less profitable.
The recommendations are that Ford should re-negotiate contracts with unions. There should be restructuring that will reduce fixed costs.
The implementation can begin with government intervention or mediation and renegotiation of wage and pension contracts with the unions. The second point of implementation will be that a restructuring plan should be drawn by the company which must be approved by the Federal Government. This is necessary so that unions accept the restructuring plan.
Positive ramifications of restructuring and re-negotiations will be that Ford will become more competitive and will become financially viable once again. If the ...

Solution Summary

This posting gives you a step-by-step explanation of challenges faced by Ford and Toyota. The response also contains the sources used.

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