Toyota Organizational Strategy

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Company Information Toyota Motor Corporation is one of the leading Japanese car manufacturer. Its headquarters is in Toyota, Achi in Japan. Worldwide, it is complemented with 338, 875 employees as of March 2014. Of the same year, it was considered as the twelfth largest company in terms of revenue around the world (, 2015). In terms of automobile production, it was also the largest as of 2012 on top of Volkswagen Group and General Motors (OICA, 2013). Kichiro Toyoda started the company in 1937, as a spinoff for the purpose of automobile manufacturing from the parent company, Toyota Industries. Automotive operations Primarily, Toyota has been manufacturing and distributing commercial vehicles such as trucks, cars and minivans.…show more content…
Another subsidiary, Hino Motors Ltd has been producing and selling commercial vehicles (, 2015). Aside from car manufacturing, Toyota has been engaged with in the manufacture of different automotive components, parts and accessories compatible with its product lines. Car products of Toyota can be grouped into hybrid vehicles and conventional engines. The product lines of Toyota includes compact and sub-compact cars, mid-size, mini-vehicles, sports, luxury, specialty, recreational and sports-utility vehicles, trucks, minivans and buses (, 2015). Toyota Organizational Strategy The growth and improvement of its corporate value is the ultimate corporate goal of Toyota through the means of retaining its leading position in the automotive market and industry and to sustaining its growth in the global operations and in showcasing product lines that highlights the technological capability through its research and development due to the trending demand of each market it is operating (, 2015). Toyota are constantly in the process of technological advancement through constant research and development and the…show more content…
The TPS is a system based on the production concept of Just-in-Time (JIT) which means that the delivery of supplies and raw materials are done at exactly at the moment it is required. This system had been very remarkable because of the efficiency of both employees and machine, the prevention of resources that are slack and it allows the minimization of waste. The organizational structure of Toyota had been designed to cater towards the TPS (Carpenter, Bauer & Erdogan, 2012). Though we found competitive strength on the part of Toyota on the TPS, it also had been its weakness. The way handled the recall issues gives us an idea over how weak is the organizational structure in Toyota. In this kind of challenging times, productivity has been threatened, however it also pose an opportunity towards continual improvement and learning for the company. However, because of the TPS, the organizational hierarchy of Toyota had become rigid and had permeated an organizational culture that can react in a slow pace towards the threat of the environment such as the recall problem (Carpenter, Bauer & Erdogan, 2012). It is a common problem that people on the ground, regardless of the degree of empowerment given to them in the TPS has the reluctance to

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