SCHOOL: BUSINESS AND ECONOMICS
DEPARTMENT: BUSINESS MANAGEMENT
COURSE CODE/TITLE: BCM 3148 PURCHASING MANAGEMENT
QUESTION ONE
Toyota Motor (Toyota) is one of the leading automotive manufacturers in the world. It is
engaged in the manufacture and sale of motor vehicles, as well as financing and other related
businesses. Toyota sells its vehicles in more than 170 countries and regions worldwide. The
worldwide automotive market is highly competitive. The competition among various auto
players is likely to intensify in light of continuing globalization and consolidation in the
worldwide automotive industry. The factors impacting competition include product quality and
features, the amount of time required for innovation and development, pricing, reliability, safety,
fuel economy, customer service and financing terms. Toyota is subject to disruption of
production due to natural disasters such as earthquakes and floods, among others. The company
primarily operates in Japan which is one of the highest earthquake-prone regions in the world.
Product recalls have also affected Toyota's performance. The company recalled more than 10m
vehicles during the period from 2009 to 2011 as a litany of technical problems bedeviled a
manufacturer once renowned as a pioneer of production knowhow. Toyota is subject to laws in
various jurisdictions regulating the levels of pollutants generated by its plants. In addition,
Toyota is subject to regulations relating to the emission levels, fuel economy, noise and safety of
its products.
a). Outline the purchasing management processes that Toyota may be involved in. (10 Marks)
b) Highlight internal purchasing risks that are exhibited by Toyota. (10 marks)
DEPARTMENT: BUSINESS MANAGEMENT
COURSE CODE/TITLE: BCM 3148 PURCHASING MANAGEMENT
QUESTION ONE
Toyota Motor (Toyota) is one of the leading automotive manufacturers in the world. It is
engaged in the manufacture and sale of motor vehicles, as well as financing and other related
businesses. Toyota sells its vehicles in more than 170 countries and regions worldwide. The
worldwide automotive market is highly competitive. The competition among various auto
players is likely to intensify in light of continuing globalization and consolidation in the
worldwide automotive industry. The factors impacting competition include product quality and
features, the amount of time required for innovation and development, pricing, reliability, safety,
fuel economy, customer service and financing terms. Toyota is subject to disruption of
production due to natural disasters such as earthquakes and floods, among others. The company
primarily operates in Japan which is one of the highest earthquake-prone regions in the world.
Product recalls have also affected Toyota's performance. The company recalled more than 10m
vehicles during the period from 2009 to 2011 as a litany of technical problems bedeviled a
manufacturer once renowned as a pioneer of production knowhow. Toyota is subject to laws in
various jurisdictions regulating the levels of pollutants generated by its plants. In addition,
Toyota is subject to regulations relating to the emission levels, fuel economy, noise and safety of
its products.
a). Outline the purchasing management processes that Toyota may be involved in. (10 Marks)
b) Highlight internal purchasing risks that are exhibited by Toyota. (10 marks)
