Toyota Management Information Systems Case Study

1.0 Introduction of MIS

MIS (management information systems) is a general term for the computer systems in an enterprise that provide information about its business operations. It's also used to refer to the people who manage these systems. Typically, in a large corporation, "MIS" or the "MIS department" refers to a central or centrally-coordinated system of computer expertise and management, often including mainframe systems but also including by extension the corporation's entire network of computer resources.

There are four different kinds or level of IS: Strategic level, Management level, Knowledge level and Operational level.

Operational level systems help operational manager keep track of the firm's day-to-day activities. Knowledge level systems help knowledge and data workers design product, distribute information and cope with paperwork. Management level systems help middle managers monitor and control; it supports the monitoring, controlling, decision-making and administrative activities of middle managers. Strategic level systems help senior manager with long-term planning; it supports the long-range planning activities of senior management.

These days Toyota is increasingly using computer systems for scheduling. For example, when ordering parts from supplier, Toyota is moving to electronic kan-ban rather than sorting and sending cards back. In this case, it does not have to be either/or. On visual control, Toyota will often use a computer system for scheduling some operations, but then use manual cues like cards or white boards to visually control the process. For example, the logistics planning backbone of Toyota's Service Parts Distribution Centers is a computerized scheduling system but "process control" whiteboards actually control the operations.

Toyota Motor Corporation, commonly known simply as Toyota and abbreviated as TMC, is a multinational corporation headquartered in Japan. In 2009, Toyota Motor Corporation employed 71,116 people worldwide (total Toyota 320,808). TMC is the world's second largest automobile maker after Ford by sales and production. In addition to manufacturing automobiles, Toyota provides financial services through its Toyota Financial Services division and also builds robots.

Toyota Motor Corporation is using MIS in their industry to helps management to evaluate performance and evaluate process effectiveness. The MIS is implemented to collecting strategic customer information or needs and make informed. Also, changes to process, quality, training, customer relationship management. No single system can provide all the information an organization needs. Organization and information systems can be divided into strategic, management, knowledge and operational level. All the above mentioned levels of an organization can be further divided into 5 functional areas: sales and marketing, manufacturing, accounting, finance and human resources.

2.0 Competitive Forces:

The company can survive and ultimately succeed over the long term only if it has successfully developed strategies to confront five competitive forces.

Threat of New Entrants

The threat of new entrants in the automobile industry is very low. The industry has successfully reached economies of scale and it is very mature. A manufacture must be able to achieve economies of scale in order to compete in this industry. For this to occur, manufacturers must mass-produce the automobiles so that they are affordable to the consumer. Another barrier to entry is that it takes an incredible amount of capital to manufacture the automobiles. It takes an extreme amount of capital not only to be able to manufacture the products but also to keep up with the research and development that is necessary for the innovation requirements. Access to distribution channels is another high barrier to entry. A company must have their own dealership or must find a dealership to sell their automobiles. Space in the dealerships lots is very limited making it difficult to have a wider variety of inventory.

Bargaining Power of Suppliers

In the automobile industry, the bargaining power of suppliers is very low. To produce an automobile, there are so many parts that are used and it takes many suppliers to accomplish this. When there are many suppliers in an industry, they do not have much power; manufactures can easily switch to another supplier if it is necessary.

Bargaining Power of Buyers

The bargaining power of the buyers is moderately high. The manufacturers depend on the buyers to stay in business because the buyers being consumers purchase almost all of the industries output. The buyers also are a significant portion of the industries revenue. If they cannot keep their buyers happy then they risk losing them to their competitors. All the buyer has to do is sell the car they own and purchase a new one. The reasons why the power is not completely high is that the buyers are not large and few in number. The buyers do not have the ability to integrate backwards into the industry. If they want a car then they have to purchase it from a dealership.

Threat of Substitute Products

There are not many substitute products for automobiles. Some of the substitutes are walking, riding bike or taking MRT. Substitutes products all depend on the geographic location of the consumer. In some cities such as New York or Chicago, a car is not really necessary because in those cities, the subway is the most effective means of transportation. However, in most places a person must have access to an automobile in order to get around.

Intensity of Rivalry among Competitors

Rivalry among the competitors is very