Risk Assessment report on an organization (Toyota USA) Research Paper

Risk Assessment report on an organization (Toyota USA) - Research Paper Example It is one of the highest ranked car companies in the entire world in terms of global brands. Even when sales are low Toyota in the United States sold almost 1.8 million vehicles, thus the company is able to make 16.7% share in the market. Toyota Being the third largest car manufacturer in the world, it has been known as the most efficient. The main business segments include automotive and financial services. The automotive segment can account for at least 90% of the revenue in Toyota and almost 96 percent of Toyota’s operating income. The manufacturing, product development and vendor management practices of Toyota Company are known to be the best. This risk assessment was carried out on Toyota Company in the USA to find out on the risks that face the company during production, selling and distribution. Toyota USA is faced with major risks that can affect the profitability of the operations. Factors such as vehicle sales volume, marketing costs, sales incentives, and price discounts, the vehicle models and the options that are sold, customer warranty claims or customer satisfaction actions, cost of research and other costs, production capacity, changes in the value of currencies used in Toyota business, intensified competition, and regulation issues. In Toyota company product development can be highly capital intensive. In any automobile industry, this has been experienced. The automakers are faced with the challenge of making new models from time to time to stay up to standards. The automakers are supposed to standardize the core product through creating a platform on which, they can build feature. Toyota can be said to be the pioneer in product development that is lean. A philosophy where a company is supposed to come up with a development process that comes up with new products using minimum resources. According to Toyota Motor Corporation SWOT Analysis 10, the automotive market worldwide is very competitive. Thus, Toyota faces high