Significance of factor describing visual control in the second management principle of Toyota in the automotive supply industry

Customers increasingly demand that companies offer a wide variety of products and services. As a result, many companies spend millions of dollars conducting profitability analyses of their customers. For instance, the banking industry alone spends an estimated $500 million per year on customer profitability analyses. Accordingly, customer profitability analysis is listed as one of the recent major developments in managerial accounting (Cotton 2005). Customer profitability analysis refers to the practice of estimating the profitability of individual customers and identifying both customers that create value for the company and, just as importantly, those customers that destroy value. Effective customer profitability analysis provides the company with a strong competitive advantage by improving key strategic and operating decisions involving customer selection and retention. For example, Sprint Nextel drew the attention of investors, analysts, and customers alike when it “fired” 1,000 of its worst customers via a form letter (Srivastava 2007). This case reflects the experiences of several international companies in the automotive supply industry and provides you with an opportunity to enhance your knowledge about customer profitability. First, the case demonstrates the importance of customer profitability analysis. Second, the case enhances your ability to perform customer profitability analysis. Third, it helps you improve your critical thinking and analytical reasoning skills. Finally, the case enables you to integrate business knowledge across functional boundaries.

Download Full-text

Product Strategies for Technical Transformation in the Automotive Supply Industry

MTZ worldwide ◽

10.1007/s38313-021-0640-4 ◽

2021 ◽

Vol 82 (5-6) ◽

pp. 64-67

Author(s):

Franz Schweiggart ◽

Sebastian Scheeler ◽

Felix Senf ◽

Jürgen Schneider

Keyword(s):

Supply Industry ◽

Automotive Supply Industry ◽

Automotive Supply ◽

Product Strategies

Download Full-text

Human-Machine Communication and Crisis Management. An Automotive Industry Case Study

Műszaki Tudományos Közlemények ◽

10.33894/mtk-2020.12.02 ◽

2020 ◽

Vol 12 (1) ◽

pp. 23-27

Author(s):

Levente Bakos

Keyword(s):

Crisis Management ◽

Automotive Industry ◽

Organizational Crises ◽

Standards And Regulations ◽

Supply Industry ◽

Automotive Supply Industry ◽

The Difference ◽

Machine Communication ◽

Automotive Supply

AbstractThe article presents some results of a larger study of crisis management in the automotive supply industry. This paper studies human - machine communication during organizational crises, an issue that can make the difference between success and failure. The topic is even more challenging in the highly standardized and regulated automotive industry. Using some methodologies taken from social sciences, we analyse the manner in which employees in the automotive supply industry handle unforeseen events. In spite of the increased number of standards and regulations, employees display ambiguous behaviour during unforeseen events, affecting trust in human-machine communication.

Download Full-text