A COMPARATIVE ANALYSIS OF U.S. VERSUS JAPANESE AUTOMOBILE INDUSTRY: A CASE STUDY OF GENERAL MOTORS AND TOYOTA MOTOR CORPORATION.

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Agarwal, Vipin

Issue Date

2009

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Thesis

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en

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Abstract

The purpose of this study is to identify the significant factors contributing to the financial crisis currently plaguing U.S. auto manufacturers. It compares the differences between U.S. and Japanese auto companies in managing their quality systems, supplier relations, communication styles and culture, and proposing solutions to U.S. automakers based on the findings. In this paper the companies selected for discussion are General Motors and Toyota Motor Corporation, as to represent the U.S. and the Japanese auto manufacturers. As the study reveals the supplier relations and quality management are considerable factors that resulted success of Japanese auto manufacturers. The results of this work point to the importance of suppliers and quality of products in addressing the management challenges of the future. The tools used are comparative analysis and the balance score card method. For this study the materials reviewed include studies on various management styles, especially those relating to General Motors and Toyota, the world's two largest auto makers. This study reviews the most current information available in business and financial journal articles on the nature and causes of the problems facing American auto companies. Primary data sources are included to show the current financial picture for the major automakers.

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