Toyota Value Chain Model
Value Chain Management is the process by which a company creates and develops trade and strategy partners and increases the effectiveness of the company (Sheridan, 1999). Within a value chain, a product is designed and ideas are formulated before start of production. Once this is completed, a supply chain is established and communication is outlined. The entire process requires managersfamiliar with the industry requirements, not the least of which is the actions by competitors. Toyota was one of the first companies to employ the value chain. In doing so, Toyota has set the standard for other companies worldwide. The purpose of this paper is to examine the components of the value chain and outline how it applies to Toyota in Japan.