TOYOTA MOTOR CORPORATION is a Japanese multinational automaker headquartered in Toyota, Aichi, Japan. It was founded in Japan on August 28, 1937. The company originally produced small cars and light trucks for consumption in Japan and for exports to other countries. In 1990 Toyota started to produce new types of vehicles, such as luxury cars, full sized pick-up trucks, and sports utility vehicles, in an effort to broaden the product mix farther beyond. Toyota went public in 1999.
Since then, the company has created a broad range of new products, delved into robotics, and had two vehicles named car by “Motor Trend”. The recent President of Toyota Motor Corporation is Akio Toyoda and its Chairman is Fujio Cho. In 2012, Toyota employed 325,905 people worldwide and was the third-largest automobile manufacturer by production behind General Motor and Volkswagen Group. Toyota is the 11th largest company in the world by revenue.
Corporate strategy has to do with knowing the aim and scope of the organizations activities and the nature of the business it is in, taking the environment in which it operates, its position in the marketplace, and the competition it faces into consideration. Corporate planning and business plans are used to implement corporate strategy. Strategy is all about competing and surviving as a firm in the business environment. The products of an organization are developed by the business units, which are managed by the corporate level. The process helps in contributions from each level of strategic hierarchy to the corporate level.
Toyota management and business model is said to be one of the best in business strategy and strategy management. Toyota management culture steadily transformed its business to world leadership.
Toyota's success was achieved through the implementation of ‘Jidoka' and ‘Just in time production'. ‘Jidoka' is about preventing defects from going from one machine to the next. This is the ability to detect unacceptable quality during the process of production rather than waiting until the end, when it may be not be obvious. ‘Just-in-time production' is the principle of having parts ready just as they are needed.
Toyota company managers also use a tool called the A3. A3s are mechanisms for managers to mentor others in root-cause analysis and scientific thinking, while also aligning the interests of individuals and departments throughout the organization by encouraging productive dialogue and helping people learn from one another. A3 management is a system based on building structured opportunities for people to learn in the manner that comes most naturally to them, through experience, by learning from mistakes and through plan-based trial and error.
Political Factors There is no organization or industry that is immune from the various decisions made by the government. Consistent policies of the government, frequent change in duty tariff and smuggling are usually the reasons of unstable market conduction. Toyota is also affected by the current changing policies of the government.
Economical Factors Economic policies of the government at the federal level also influence the ability of the industries to survive and progress. Inflation is a major economic factor that affects automobile industry including Toyota. Increase in sale tax also increases prices of Toyota cars. Also, if Toyota decides to build up to 100,000 Camry's or Highlanders each year at the plant, it will mean like 1,000 jobs for the youths. This will really boost the Local economy.
Social Factors Toyota regards the importance of culture and customs of every nation and community. Toyota contributes to the economic and sociological development through corporate activities in the communities. Toyota believes in respecting the language and spirit of the law of every nation and undertakes open and fair corporate activities to be a good corporate citizen of the world.
This is the reason why Toyota vehicles are perceived to be a symbol of reliability, comfort, luxury and thus trusted. Toyota's ability to bring to market world-class vehicles depends, in large part, on the craftsmanship and hard work of the tens of thousands of Americans who manufacture parts for our automobiles and trucks. That's why Toyota believes it's important to support the communities where its suppliers are located.
Technological Factors Technology is very important because it is the main source of increases in productivity. For instance in the process of making a car more durable,“Pitospaate Primer” is a total immersion in a catholic Electro-deposit primer process , which assures long term anti corrosion and an extra thick color coat that is better than all others, ensuring that “New Car” look “New” for years to come. This has really attracted customers to Toyota.
TOYOTA KEY DRIVERS FOR CHANGE The key drivers for change are likely to be: Environmental protection laws of the region Taxation policy of the governments Foreign trade regulations Employment law Government stability Important political events Critical global markets Newly industrialized countries
TOYOTA'S CULTURE AND ITS IMPACT ON THE CURRENT SITUATION From the research carried out, it is observed that Toyota's corporate culture is about:
1) Managers are not bosses they are process improvers This simply means their managers assist in every way to do work better. They do not ‘boss'.
2) The business is not about the product but about the process producing it Toyota's management believes in making better cars, not just making cars. They are process-focused which has really helped in their overall total quality management. Toyota levels out the workload, builds a culture of stopping to fix problems, to get quality right the first time. Standardized tasks and processes are the foundation for continuous improvement and employee empowerment.
3) Competition is not about competing with others,it is about improving oneself Toyota's competitiveness is internal and self critical. Toyota strongly believes in improving self and taking responsibility for whatever situation. Toyota believes in continuously solving its root problems to drive organizational learning. It enables its workers to see for themselves and thoroughly understand the situation thereby decisions are slowly made by consensus with all options considered and implemented rapidly.
4) Toyota organizes training and developments for workers Toyota believes in building quality people as it believes that quality people produce quality products. The Toyota institute in Japan organizes managerial training classes for its managers. They are been taught workplace ethics and social responsibility, value creation through human development, leadership system, managing daily results and top management thinking. This in turns help in the development of the organization and managing of resources within the community.
5) Kaizen Kaizen means striving for continuous improvement. This is part of Toyota way and culture that believes no process can ever be declared perfect, there is always room for improvement.
6) Toyota also believes in hiring the right person in the right amount. This is part of its corporate culture.
Vision Statement To be the global leader in the automobile industry.
Mission Statement Our mission is to produce low cost but high quality vehicles for the comfort and mobility of our esteemed customers worldwide.