Cars after Financialization: Financial Under-Performance, Constraints, and Consequences - Case Study Example

Case Study Cars after Financialization: A Case Study in Financial Under-Performance, Constraints and Consequences The major issues presented in the case are related to the quality of the seats that are fixed in most Motors manufacturing industries. Motors Manufacturers are highly recognized motor producing industry that aims at manufacturing hybrid machines that are not only competent in terms of effectiveness, but also proficient in terms of efficiency. However, according to the case, it is evident that there is an immense challenge associated with the lean system integrated in the production technology in manufacture of the seats of the motors and there is great need to devise appropriate measures to address the issues linked to the seats. Additionally, there is need to evaluate the consistency of the current technologies and approaches for addressing seat defects in assembly with consideration of the notion that the customers and other users of the products of the company have towards its manufactured machinery. The performance of the factory is considerably high as compared to other factories of the organization, and this success is facilitated by the managerial skills and experience of the manager in terms of planning, supervising and controlling the staff. The challenge that is facing the factory cannot be directly associated with poor management, but to poor integration of technical and production skills and technologies. Additionally, the predicament can be linked to the suppliers, and this is to the understanding that the materials that the factory uses are supplied to the companies; the KFS. In addressing the issue of the seats, the manager should consider identifying the major cause of the issue, and since the problem is bonded to quality, it implies that the production system in the plant needs investigation before appropriate measures are undertaken. This is because one needs not to base all the reasoning on the supplier as there might be a loop in the production sector such that quality production resources and technological are supplied to the producers, but the employees use their own materials of low quality to make the production (Robertson & Stefan, 2012, 22). Upon recognition of the major cause of low quality seat production, then the manager will be having evidence-based conclusions that are very significant in making corrective measures and procedures to address the problem. Making an assumption that the seat challenge is facilitated by internal factors, the manager is obliged to improve the performance and output of the production employees through integration of several techniques which are with inclusion of training the employees to advance their technical knowledge and skills. Training in a technical industry is a very vital solution to the challenges that are linked to quality, and this is with consideration of the fact that with the changing generation and improvement in the technology industry, the workers need to be updated on the innovated productions skills among other production techniques. In situations where the employees are irresponsible in the sense that irregularities such as theft and corruption are observed, then the manager is mandated to sack and punish such employees in one way or another. Increasing the number of employees in the production sector is another alternative of improving the performance of the factory in terms of quality seat production. Additionally, the manager should consider assigning the managerial duty to a trustworthy employee in the production department who has supervisory skills and expertise to reduce his workload, thus enabling him to manage other sectors of the factory. Considering as situation where the problem is brought forth by the suppliers, the only approaches that the manager can use to improve the situation are signing contracts with other suppliers whose materials have been tested and approved by specialist in the sector and/or making new agreements with the existing suppliers on the quality of their supplies. Since the organization is entirely focused on technology, all its productions are supposed to be of high quality and in case of otherwise, then their sales will decline due to reduced rates of sales facilitated by lack of confidence in their productions. The rapport that exists between the TMM clients and the industry itself is very high, and considering the fact that the issue of seats is not an intense matter in the industry, appropriate measures need to be integrated in the operational decisions and managerial decisions to address the issue. The managers should start by evaluating the business level strategy and focus on technology and production of hybrid vehicles with high quality seats, as this is one of the ways that a future differentiation strategy can be attained. He also needs to consider the functional and operational strategy, and this includes improving the manufacturing systems for attainment of efficiency and effectiveness in their products. Lastly, the manager should incorporate appropriate marketing strategy that targets at improving and sustaining the reputation of the organization at high level. This improves the value of Toyota Motors Manufacturers, increases their general performance in terms of sales, and consequently stimulating growth and expansion of the company. Unremitting and continuous training and enhancement of the company’s products u terms quality, competence and efficacy through technology and innovation is the fundamental solution to the challenge currently facing the factory. There are various participants who are responsible for financial decisions in a nation, and the impacts they subject to decision-making process highly depend on their powers in the organizations. The major players in financial decisions are the political parties. The political parties constitute of various representatives of people, who clearly understand the challenges that people are facing and the financial strategies that can be applied to improve their living standards. They have powers to make financial decisions, and some of their roles are with inclusion of ensuring there is fair distribution of organizations funds in all departments. Additionally, they ensure that sufficient funds are located to departments that offer basic services to the public such as educational sectors, health sectors and agricultural sectors among other ministries. The ruling political party takes the mandate of making financial decisions, but the opposition party plays a great role in ensuring there is even distribution of funds through correcting the organizations and offering advice where need be (Olowu & Wunsch, 2012, 102). The other party responsible for financial decisions in most companies in the motor vehicle industry is the finance department. This follows the fact that it is the department that is aware of the revenue that the nation is able to raise, the debts that the nation has, and some of the loans that can be awarded to the country to improve its operations and the techniques and conditions of payment (Rank, van Rooyen & Molele, 2008, 74). Lastly, the general public plays a role, though minor in financial decision, because in case a financial that is passed is not in their favor, they incite the political leaders to force the organizations into amending the financial to the favor of the citizens. In democratic countries, customers have great influence to financial decisions, and are always considered as the key players in decision-making through their representatives. Organizational Financing Organizational Financing is understood to be a field of public administration that is characterized with making decisions related to financial management in ministries and organizations. Financing is featured by its approaches, function that are applied, and more importantly the type of financial that are established. From a political perspective, public financing is a political event that is conducted in a political arena for political advantage (Rubin, 2007, 46). On the other hand, economists consider organizational financing to be the process of allocating resources in terms of their opportunity cost where allocation of resources to one individual causes withdrawal of resources from another. Generally, a financial is a plan that is developed for accomplishment of programs related to objectives for a specified period of time, indicating the resources needed, and resources available and the future expectations of the parties preparing the financial (Key, 2010, 18). There are two major types of organizational financing, and these include operating financials which are understood to be documents that describe the expenditures and revenues during a specified period fir the functioning of the organizations ministries. The other type of organizational financing is the capital financing. This is the process of planning for the future purchases that are over a specified cost threshold (Smith & Thomas, 2004, 30). Capital financial is mostly accompanied by a Capital Improvement Plan that outlines the timeline for acquisition and payment of debts that an organization or the organizations might be having. The organizations have defined strategic financial plan that enables it to attain its goals continuously through benchmarking comparisons with credit industry standards and specific policy targets developed by managers. The annual financials of different cities are usually collected, compared with that of the organizations, and this helps the managers and leaders to devise appropriate measures that can be used to beat the successes of other cities (Shelton & Albee, 2000, 125). By so doing, the organizations consults the consumers or the public in attempt to investigate some of the strategies or measures that they feel can be used to improve the financial and resources distribution in the organizations. The fundamental financial strategy that the organizations integrate in its financial planning is matching finding sources with the types of expenditures present in the organizations. This is done to allow the demand for money to be consistent with the characteristics of the matching funding sources. This implies that the debt service funds require more stable financial sources as compared to those that require a balanced mix source of financial support such as operating fund. Utilizing user charges for service that are price excludable is another strategy that the organizations use in its financial planning in the motor vehicle manufacturing industry. This encourages economic efficiency and reduces the burden associated with tax among other unaccountable expenses. The organizations also balance recurring expenditures with recurring revenue and also isolate volatile components of the revenue base. This enables the managers and officials in devising ways of directing them out of the operational financial and has defined capital reserves. Maintaining benchmark data on tax and fee rate is another approach that the organizations integrates in controlling the finances and resources in the organizations, and this is made with comparison to municipal organizations and competitive private service providers. Additionally, the organizations strategizes on seeking new pay-as-you-go sources of capital and maintains moderate credit ratios and this enables the managers and elected officials to minimize the impacts linked to taxes and fines. Customer oriented organizations such as those in the motor vehicle manufacturing industry is considered to be the organizations where the administrators or managers are concerned with the needs of the clients and the people they service or serve. It integrates the involvement of the communities and people in shaping the agendas of the organizations as a way of establishing achievable goals and objectives for the county or municipality. It is the most appropriate mode of organizations because it addresses not only the needs of people but their developmental expectations and support from the city, county, state or national organizations. It involves the community with its elected representatives and staff in development of common set of goals and approaches that are essential in accomplishment of the targeted objectives. This approach of leadership also helps in determination of whether or whether not the outcomes are in accordance to the plan in the sense that it allows people and organizations to evaluate their performance accordingly. Customer-oriented organizations such as those in motor vehicle manufacturing industry differ from the traditional organizations because in traditional governing systems, only the elected officials and staff have the authority to make decisions for the organizations, city or municipality. These are the individuals who are responsible for controlling and managing the finances of the organizations. They control how resources are distributed in the country or county without minding the needs of the people they serve (Shelton & Albee, 2000, 94). This consequently hinders fair and equal distribution of resources, unlike in customer-oriented organizations where finances and resources are equally and fairly distributed in accordance to the needs of people the organizations serves. Financial planning is essential for customer-oriented organizations by involving the customers in policy development, the organizations is able to understand the financial needs of the customers and act on them accordingly. Finances and resource allocation in a organizations is not easy, and it is upon involvement of the people where the finances and resources are allocated to that equality and fairness can be achieved. Financial concerns in organizations are viewed as constraints that limit creation of vision and missions that can be achieved within the time plan scheduled by the organizations. Customer-oriented organizations help in reduction of financial reality because it hinders visioning process, thus limiting the chances of implementing the dreams of the organizations. Additionally, the policies that are made with help of the consumers are more achievable, realistic and timely as compared to those created by traditional organizations systems. Decision-making process is considered to be a cognitive process that leads to selection of a course of action from various alternatives. This is to the understanding that every decision making process has a final choice (Damasio, 2010, 75). Financial decision-making process is therefore the development of a course of action in the form of a plan that needs to be followed for effective management of funds in an organization or organizations’ ministry to be achieved. From political environment, financial decision-making process integrates various procedures that ensure that the contribution of all parties involved in the decision-making process is attained successfully (Tversky, 2009, 29). Conclusion In the main, financial planning in most organizations in the motor vehicle manufacturing industry is considered to be the process through which the management of an organization or administration devises on appropriate measures of allocating finances to various activities with respect to the needs. On the other hand, operational planning entails establishment of a schedule of activities, allocation of resources and statement of the anticipated outcomes of these activities. Through integration of customer-oriented governance, the organizations was able to use both financial and operational planning because it allowed the customers to contribute to decision-making, and this enabled the organizations to make decisions and objectives that are achievable, concrete and more importantly timely (Shelton & Albee, 2000, 51). The result of the integration of both financial and operational planning in the organizations is reduction of waste, which led to growth and expansion of the organizations in terms of development and economic, social and political stability. References Aron. K. (2007). The Concept of Indeterminism and Its Applications: Economics, Social Systems, Ethics, Artificial Intelligence, and Aesthetics. Praeger: Westport, Connecticut Damasio, A. R. (2010). Descartes Error: Emotion, reason and the human brain. New York: Picador. Tversky, A. (2009). "Elimination by aspects: A theory of choice". Psychological Review 79 (4): Key, V. O. (2010). American Political Science Review 34. Rubin, I. S. (2007). The Politics of Public Financialing: Getting and Spending, Borrowing and Balancing. New Jersey: Chatham House Publishers Smith, R. W. & Thomas, D. L. (2004). Public Financialing in America. 5th Edition. New Jersery: Pearson; Upper Saddle River Mikesell, J. (2012). Fiscal Administration Analysis and Applications for the Public Sector. New York: Wiley & Sons Olowu, D. & Wunsch, J. S. (2012). Local Governance in Africa: the Challenges of Democratic Decentralization. London: Lynne Rienner Publishers, 2004, p 1. Rank, F., van Rooyen, K. & Molele, C. (2008). ‘Hungry for change,’ Sunday Times, Schick, A. (2009). Public Administration Review 26. 243-58. Smith, R. W. & Thomas, D. L. (2004). Public Financialing in America. 5th Edition. New Jersery: Pearson; Upper Saddle River, 37 Willoughby, W. F. (2008). "The Movement for Financialary Reform in the States". D. Appleton and Company for the Institute for Organizations Research. 1-8. 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