Assignment for the Week 7

Organization named as

Daihatsu

Submitted to: Prof. Raj K. Sharma

Kings College

International American University

Submitted by: Bishnu Dhamala

MBA 5th Trimester

Background / Introduction

The company named Daihatsu is Japanese company which is famous for the car manufacturing which was established in the year of 1907. In 1967, Daihatsu and Toyota came into the agreement for the alliance which helps them to expand the business and on the other hand, they were also able to increase the efficiency and quality as well. In some circumstances, it also helped them to concentrate on the strength.

From the financial report of 2013, the company was able to increase the sales but at the same time, the operating increase has been decreased as compared to increment in the sales. The company has huge market in the home country itself, and also it was trying to modifying the product to attract the customer. Through its quality, the market in the Indonesia has been increase and demand of the product was going to be strong. But the demand of the product in the Malaysia was seen as same level as it was.

Product / services of the company

To attract the customer of different region, it has been producing through different vehicle segment. In the vehicle mini segment, the company was able to show its strength. It was successful to be in the number one in the home country and through the segmentation, it was continue for the seven years. On the other hand, it was localizing its services in the Indonesia; as a result, the market was increased dramatically in the Indonesia. It adopted manufacturing method which helped them to be number one in compare to the sales in the home country.

According to the market demand, the company was successful for segmenting its product line. We have seen that, it producing the small sized vehicle to cargo carrying and vans as well. In the segment of SUV, it was come with Terios which has seven seats which was also able to capture the market sales in terms of SUV. According to the need of the people, it introduced different types of the vehicles. Actually, it produced different types of vehicle as per the country needs. It came in Malaysia and Indonesia with different types of vehicles as needed.

It was also concerned with the global warming. As a result, it also acted to meet the standard of the economic. In the year of 2011, it was introduced fuel efficient car as Mira.

Pas Strategies of the Company

To target the customer needs and to solve the environment problem, the company was more focused on the fuel efficient vehicles in the affordable price structure. It helped them to make record profit in the year of 2011, when they were able to decreased the cost and it achieved this milestone due to following strategies:

Proper utilization of the resources

Reforms of the procurement and production

Came up through the SSC concept which simply means to slim, compact and simple

Segmentation of the product as require

Decreasing the cost of the product

The above are some of the important strategies of the company, where most of them adopted in the year of 2011; as a result they were able to achieve their target. It helped them to gain gradual success and was able to capture the market share.

Present Strategies of the company

The company was able to create its brand which is unique itself which also helped them to satisfy the needs of the people and generation by generation. Through this way, it planned to develop various departments and tries to maintain strong relationship with the giant company Toyota. It was more focused on the producing fuel efficient car in the affordable fee structure. On the other hand, it introduces such types of vehicle in the international market. The companys slogan also help them to focus on the innovation which as a result it is successful to come up with environment friendly and user friendly as well.

Through the past and present strategies, the company has successful to be number one in many sectors. It maintains number one position in terms of mini vehicle for seven years which is also considered as the milestone of the organization. for some years, it was also number one in terms of sales in Malaysia. Through the innovation, the competition level is increasing day by day, as a result the automobile company also facing tough competition to maintain their market share. Daihatsu, among them was able to stand in the completion through the innovation, reengineering, and continuous improvement. To sustain and increase the market share, the company was more focus on the research and development to find out the changing needs of the people.

Culture of the company

Through the development of the technology, the company was able to produced different types of the product in the affordable prices for the customer which leads them to increase the market share. Moreover, through the reform in the procurement, it was able to reduce the operational costs. Sometimes, the company adopts the strategies in the overseas production which leads them to target sales in the home country as well. More research work, localization of the product was done to come up with new product and service in the market. it was able to adopt strategies properly through the efficient human resource of the organization. The work culture was maintained in such a way they were able to achieve their target.

On the other hand, the company was successful to came up with different program for targeting the female employee. As a result, it is also provides different types of facilities to the female manpower which leads to increase their efficiency level. And the company was able to maintain the strong relationship between different stakeholders like society, suppliers, employees as investor as well.

Scope / future aspect of the organization

Through the innovation and research, the company was able to maintain and increase the market share in overseas especially, Indonesia and Malaysia. It was able to respond quickly as the needs of the customer. the company was able to strengthen infrastructure and operational. With the introduction of Mira, which is fuel efficient vehicle which leads them to increase the market share and stay into the competitive environment. With the innovation in the technology, the company gradually, able to increase the market share and able to uplift the quality of each and every aspect of the product and another milestone for the company is introducing new technology, which is considered as unique as compared to other vehicles. This also leads them to avoid collision which is considered as expensive. Such types of vehicle was also taken overseas to sustain in the competitive environment.

Challenges which is faced by the organization

There is no doubt, that the company is number one in terms of sales in Japan. Through the innovation and research, the competition level is increasing day by day which creates threaten to each of the automobile company likewise, the Daihatsu also facing such types of the problem. on the other hand, due to unfavorable internal environment through Tsunami, the company facing the challenges. One hand, the company was able to increase the sales demand, but on the other hand, the operating income is decreasing day by day.

Through Terios, the company faced different types of the criticism in terms of space, and poor style. Due to that reason, the sales of the vehicle also declined for some years. Moreover, the next challenges to find out new market to expand the business of the organization.

Conclusion / Recommendation

Now for each and every automobile company, if they want to increase the sales, then they should come up with the fuel efficient vehicle in the market. In some circumstance, the company was come up with this through the introduction of the new system which leads them to increase and sustain in the competitive environment. The company was focus on the research and development which also leads them to increase the market share, due to that reason the company is maintaining their top position till now. But biggest challenge them to be top in the future because new company is entering into the market with strong manpower as well as technology.

For the success of the each and every organization, the management should focus on effective utilization of human resource. As a result, The Daihatsu is also providing different facilities to their employee especially to their female employee which is one of the best aspects of the organization. To sustain in the competition market, it is not enough to stay in the usual market, they need to search new market to expand their business.

References:

daihatsu.com/catalogue/index.html. (n.d.). Retrieved from www.daihatsu.com/catalogue/index.html: http://www.daihatsu.com/catalogue/index.html

carcomplaints.com/Daihatsu/. (n.d.). Retrieved from carcomplaints.com/Daihatsu/: http://www.carcomplaints.com/Daihatsu/