Toyota

Corporate
structure
Culture of
Toyota
Code of conduct
Strategic Implementation Factors
Strategies are usually formulated by the top- Implementation is the process that links
level management of the company the top-level management with the other
employees of the organization
 The people responsible for implementing the strategy are different. Implementation is the process
that links the top-level management with the other employees of the organization.
 Strategy formulation and implementation of the strategy are two sides of the same coin.
 Implementation is a process with the help of which the strategies and the policies of the company
are put in action by developing programs, budgets and procedures .
To see that the strategies have been properly implemented it is important to use the capabilities of a few to check
those implementations.
The factors such as the:
• structure
• culture
• control and the outcome
They are very important for an organization to successfully implement the strategies. To see
that the strategies formulated have been carefully implemented, the organizational structure
and culture should be reviewed.
Structure
The structure affects the organization indirectly. It also affects the implementation of strategies through the flow and control of
information. The organization should always align the design and the capabilities of the organization with the strategies. This is because
the structure helps to install accountability and helps in achieving goals and objectives of the organization .
In the backdrop of the quality issues faced by Toyota, there is cold war that is prevailing between the president of the company, Akio
Toyoda and a group of top level managers of the company.
Both of them are blaming each other for the quality defects that prevailed in the automobiles of Toyota. The president has even pushed out
Katsuaki Watanabe, the vice chairman and asked him to leave the company. It has created a situation of confusion and divided leadership
within the organization. The employees are not divided into two groups (The Wall Street Journal, 2010).
Culture
One of the main building blocks of the organization is the culture. The culture consists of the values, beliefs and other behavioral assumptions. It is very
important to study the culture of the organization to build an effective structure. The strategies decision-making is always done by the top-level
management or the governing body of the organization. Strategy of the organization deals with the culture and the people who interact in that culture (Cant,
Strydom, & Jooste, 2009, p. 288).
Toyota had to recall about half a million of its SUVs due to their suspension problems. About 11 accidents took place due to such defects in
the cars. The problem prevailed with different models of Toyota and for each consecutive year, Toyota had to recall cars for repair in
different parts. This created a situation of chaos within the company. The vice chairman was overthrown and the president blamed the top-
level managers for such condition of the company.
The environment of the company has turned into a battle field where the employees have divided themselves into two groups. They are into
open battle with each other and accusing each other for weakening the base of the company. The president of the company is further
accusing some people in the top-level management of focusing too much on earning profit. The fight has now turned in between family and
non-family members of Toyota.
Control
Strategies of the company need to be built around certain premises about the future events. The top-
level management needs to have control over the strategies formulated and the implementation of
such strategies in the organizational structure.
• Control helps in assessing the overall strategy of the firm and sees that if any modification is
required or not in the strategies formulated.
• Toyota is facing tough situations due to technical defects in the SUVs and other car models. So, it is
necessary for Toyota to control such situation by implementing effective strategies for fast removal
of technical defects in cars. But the management could not sort out the issues. So, such situations
have be controlled otherwise it may affect the company badly .
LEAN IMPLEMENTATION STRATEGIES
o Creating a vision.
o Preparation.
o Value-stream mapping.
o Employee empowerment.
o Implementation planning.
o Implementation.
o CI
RECOMMENDATIONS:
1. Lean Manufacturing and Kaizen
 Lean Production System: Toyota's legendary Toyota Production System (TPS) is a cornerstone of its success. Continuously refining lean
manufacturing to reduce waste and improve efficiency ensures long-term competitiveness.
 Kaizen (Continuous Improvement): Encouraging every employee to contribute to incremental improvements in processes, products, and
services.
. Focus on Sustainability and Electrification

 Carbon Neutrality: Transitioning toward carbon-neutral production and operations aligns with global environmental goals. This includes
improving the efficiency of hybrid vehicles and investing in electric and hydrogen-powered vehicles.
 Expanding EV Lineup: Increasing the range of battery electric vehicles (BEVs) to compete with emerging players like Tesla and
traditional rivals such as Volkswagen.
Circular Economy: Incorporating strategies for recycling batteries and materials to promote sustainability
3. Technological Innovation
 Autonomous Driving: Developing advanced driver-assistance systems (ADAS) and fully autonomous vehicle technologies.
 Connected Cars: Leveraging Iot to create connected vehicles that enhance customer experience and safety.
AI and Robotics: Expanding investment in AI and robotics for both manufacturing and product innovation
4. Market Expansion and Customization

 Emerging Markets: Focusing on expanding in high-growth regions such as Southeast Asia,
Africa, and South America by offering affordable, durable vehicles suited to local needs.
 Customization: Adapting products to regional tastes and regulatory requirements.
5. Strong Brand Value and Customer Loyalty

 Reliability and Quality: Maintaining its reputation for producing reliable and high-quality
vehicles.
 Customer Service Excellence: Enhancing after-sales services and customer engagement to
build long-term loyalty.
Conclusion
The study is conducted on one of the biggest companies in the automobile industry, called Toyota Motor Corporation.
Toyota Motor Corporation is not only famous for its quality and affordable cars but also for a perfect car production system that they follow.
Toyota had implemented various models to implement a perfect organizational structure. The problem that Toyota faced in the early days was
to build different car models on the same assembly line. But Toyota did overcome such issues by implementing Kaizen and Just in time processes in
their company.
.The recent reports relating to the company is not so enthusiastic compared to its past
Toyota cars, especially the SUVs owners are facing several major problems and accidents due to faults in the
.manufacturing of such models
These problems are prevailing over a period of about five to ten years. The president of the company is blaming the top-level
.management and vice-versa
The internal environment of the company is not fit for experts to maintain the same reputation of the company. The president of the company is
.blaming the group of top executives for focusing mainly on earning profit rather than providing quality products to customers
.This situation has not only disorganized the structure of the company but also disturbed the healthy culture
Controlling such situation is very important but when the top level management and the owner is at war, controlling such situations become
difficult.

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Corporate

. Focus on Sustainability and Electrification

4. Market Expansion and Customization

5. Strong Brand Value and Customer Loyalty

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