The Toyota Company has many ongoing effects to external environments which include general and task environments. There are many challenges that an industry like Toyota faces when dealing with general environment and task environment. Over the next three years Toyota is faced with many difficulties that must be faced from top management all the way to lower management.
Toyota is caught up with many general environmental issues which include economic, social-cultural, political and legal, technological, and demographic conditions. Many of these conditions are due to the many consumer complaints that were brought on by the defects that many of the automobiles that were manufactured by Toyota.
The task environment forces that will affect Toyota include dealerships, customers, and mechanics. Due to the vehicle defects within the past year, top management will be forced to plan with three task factors in order to successfully control the situations and outcomes. Toyota management is working closely together to ensure they are taking the extra precautions to help rebuild a damaged reputation.
After the recall last, Toyota management took the time to meet with their forces in the task environment. Dealerships, along with the top management were fixing the problems for free in order to meet the demands of their customers by remaining loyal and proving they would fix the problem at hand.
The Toyota manufacturing industry has a global structure that allows for the manufacture of Toyota vehicles from over 170 countries throughout the globe. Toyota has set many plants throughout the U.S., China, France, Mexico, and the Czech Republic while they have set themselves as a major global supplier of vehicles. Due to the massive Toyota recall there have been numerous customer complaints due to the faulty equipment in the brakes.
Due to the economic recession more people are buying less Toyota vehicles which are not good for the business. The Toyota recall was not good for the company due to the loss of millions in repairs of the Toyota vehicles. With the U.S. in a recession it is even more difficult to find more American’s buying automobiles. Until the U.S. gets back on course from the recession Toyota will have a harder time with profitability.
The social cultural forces of the U.S. has grown to have a vital with Japan in order to open Toyota plants in the U.S. there is a lot of pressure from the U.S. to meet demands of Toyota. In the past Toyota had seen a steady increase in production sales. Toyota was steadily gaining reputation as the forefront in the general society of America for the purchase of automobiles. The Toyota Company is widely accepted in the U.S. as one of the top automobile suppliers throughout the U.S. The technological forces of Toyota have allowed the company to stay on top with its low prices and use their technology to stay ahead of their competition.
Toyota has faced many political and legal forces in a short period of time due to the massive recall from over a year ago. It will take a few years to pull back from this down fall that Toyota has seen. Toyota must work with their management if they are to get past this difficult part of their life. As stated before Toyota has put forth millions of dollars to ensure that repairs are long lasting, and that there are no more defects. It will be important for management to provide an innovative blueprint to figure out how they will get past this.
Since the recalls Toyota has seen more political and legal burdens within the company. The author’s, Jones and George, state the following about general environment: “Managers must constantly analyze forces in the general environment because these forces affect ongoing decision making and planning” (George, Jones, 2007, pg. 146).
The task environment begins to take place within Toyota when we begin to deal with the suppliers, customers, distributors, and competitors. Toyota task forcers play a key role in the company by the actions taken by the main forcers within the company. The dealerships are dealt as the suppliers. The four taskers all have to help deal with the realization of the recall disaster. With over nine million cars recalled last Toyota is under high scrutiny. Toyota is facing both criminal and Congressional questioning under the safety problems of the vehicles. It’s up to Toyota’s management to use their managerial functions by utilizing their task forcers.
The dealerships will have to work with management to ensure that they are working with their mechanics in the service department to properly fix any of the defects with the vehicles. In order for Toyota stay ahead of the competition they must ensure to meet their customers needs by having their customers demands met. It is important with the proper planning that Toyota establishes a proper plan that will begin to organize, plan and control the process of the various Toyota recalls.
This type of plan is an effective management tool to alert their customers through the dealers to let them know if they are part of the recall. By meeting the demands of the customer’s Toyota is helping to rebuild their reputation as being the top manufacturer in automobiles. This helps them stay in the run against their competitors with having the best vehicle in the market by proving they are willing to fix the problems they are responsible for.
In conclusion, Toyota has learned to build their reputation by having the best made vehicles on the market. Due to the recalls they are using their general and task environment forces to ensure management is doing what it takes to rebuild their reputation. Toyota general and task environment relates to the major forces within the organization of Toyota with potential to influence significantly their products and services. Work Cited
Jones, G.R., and George, J.M. (2007). Essentials of contemporary management (2nd ed.).Boston: McGraw-Hill The Huffington Post. (2010, March 10). Worst product recalls. Retrieved November 4, 2010 from http://www.huffingtonpost.com/2010/02/23/the-worst-product-recalls_n_472340.html