Hybrid electric vehicle

Situation (current)

Toyota has globalized their company and has expanded to more than 170 countries such as Japan and the United States. They also put an "ecotechnologies" division together and developed a "hybrid electric-combustion" automobile. Management’s efforts are all not forgotten. They continued leading their company in offering environmentally responsible products will continue to be a goal.

Situation(past)

With more than 9 million cars covered under its latest recall, Toyota's management is certainly under the microscope. In fact, Toyota is facing both criminal and Congressional probes into its safety problem. Some of their cars were reported by their customers as unsafe one.

Problem

Because of the said unsafetiness of their cars, Toyota faced a mass recall. Many of their customers complained and also rate them as unsafe and not trusted car company. Many are disappointed. They didn't control the situations and the outcomes of their plans. They didn't implement also their ethics in a correct way. In addition, they were always focusing on the ethical standards or they are toward their customer relationship rather than focusing on the four functions of management- planning, organizing, leading and controlling and that results in poor quality of safeties through their product.

Analysis (SWOT and PESTEL)

Strengths

*The two good philosophies of Toyota production system- "Daily improvements" and "Good thinking. Good products". *The globalization of their company and expanded to more than 170 countries such as Japan and United States. *They are having such responsive customers.

*They also having a good guiding principles: always be faithful to duties, thereby contributing to the company and to the overall good, always be studious and creative, striving to stay ahead of the times, always be practical and avoid frivolousness, always strive to build a home-like atmosphere at work that is warm and friendly, and always have respect for God, and remember to be grateful at all times.

These principles install ethical standards by which the company operates incorporated to "CSR Policy: Contribution towards a Sustainable Development". It is a statement about Toyota's relationship with parties connected or with business involved in the corporation- the consumers, employees, business partners, shareholders, global society, and local communities. Through this, Toyota sets ethical standards for it s corporate relationship.

Weaknesses

*The poor quality of their cars in terms of safeties. *They lack on the four functions of management: planning, organizing, leading and controlling especially on controlling the outcomes of their planning internally through analyzing. *They also lacks in providing enough information about their vehicles and their company especially to other countries that affects the globalization of their company. *Focusing only to their five principles for ethical standards leads them to poor quality of their product in terms of safeties and mass complaints.

Opportunities

*Expanding their company through globalization. *Innovation of their products. From unsafe to good quality cars. *They might focus on the diversity found within the skills of its subcontractors in other countries. *To become top sellers, they need to motivate the dealership to sell the vehicles well.

Threats

*Losing their potential customers and dealers because of their unsafe system *The poor information of their products may lead them in not reaching their sales or quotas and regretting the real company's purpose. *The competition and might getting their potential customers would be easier for the competitors because of they're not considering the important functions of management especially in planning. *Destroyed company's image.

*Total elimination of their company.

Decision

*Their planning of alerting customers through dealers and through the Internet is a primary example of effective management. Customers can enter the vehicles identification number on their website to immediately determine if the autos are one of the affected and can further begin processing the claim. As repair takes place, information will be sent back to the corporate managers to establish the success rate. *They also plan to use technology to achieve future goals. They help with designing vehicles and communicating to other facilities to make sure that everything is operating correctly.

They organize information using technology such as internet so customers can see more information regarding their vehicles and their prices. They also organize information for the employees so that they can see new information which is out, such as the recall on the Toyota vehicles. Then they can tell their customers what to expect and how to handle the situation.

They also motivate their employees by sending congratulations e-mails to the top sales employee or by telling them what they have earned if they sell a specific amount of vehicles. They also plans for innovation when will they begin their projects. They need to determine what new innovation will bring them and how much will bring them and how much it will contribute to the company. If innovation is a good idea, such as using different types of gas pedals on the vehicles, then management can put that plan into action and project how much it will cost them compared to their profits.

Execution

*They plan to eliminate the unsafe system and the re-arrangement of new standards and procedures.