Organizational Evaluation of Toyota Motor Corporation Report
Contents TOC \o "1-3" \h \z \u Introduction PAGEREF _Toc527669959 \h 3Organizational analysis of the company PAGEREF _Toc527669960 \h 4Business strategies and world competitiveness plan PAGEREF _Toc527669961 \h 4Leadership strategic cost PAGEREF _Toc527669962 \h 5Strategy for product differentiation PAGEREF _Toc527669963 \h 5The company’s internal assessment PAGEREF _Toc527669964 \h 6SWOT analysis PAGEREF _Toc527669965 \h 6The company’s external environment PAGEREF _Toc527669966 \h 8Organizational structure PAGEREF _Toc527669967 \h 9Toyota company business processes PAGEREF _Toc527669968 \h 10Ethical consideration PAGEREF _Toc527669969 \h 11Conclusion PAGEREF _Toc527669970 \h 11References PAGEREF _Toc527669971 \h 13
The globalization Toyota Motor Corporation Company has enabled it to expand beyond domestic boundaries. Sometimes back, local organizations were limited to operate with the boundaries of the local market. many organizations across the expanded internationally in different geographies as a result of technological advancement, internationalization, and globalization. The world we are living in today is characterized by tight competition among organizations that deal with manufacturing products among other goods and services. To overcome local market competition challenge, organizations are now focusing on the global market with the establishment of strategies that enable companies and organizations to venture into new world markets.
The major factor that affects organizational growth in the international market is how the organization manages its internal and external environment. Controlling over and focusing on the internal business environment like employees strength and relation and external environmental factors like global competition are among the strategies employed by multilateral organizations which develops their strategies for growth. Allowing employees’ participation in decision making and the competence of the management team are among the internal environmental factors that enable the direct involvement of organizations (Liker & Convis, 2012). On the other hand, market sentiment and performance of the competitors are among the external environment that is not under direct control of the organizational management. For future strategy development for growth, organizations are required to analyze both internal and external environmental factors which enable organizational growth and development. This paper, therefore, reviews the external and internal factors of Toyota Motor Corporation organization that affects its growth.
The report provided herein is on the Toyota Company which is among the manufacturing high-quality automobile vehicles across the world. The best managerial features the company is known for its quality management principles and philosophies. The company has a proper record in enhancing employees’ strength, learn management and total quality management, the positive qualities for company development. The best-recorded performance of the Toyota Motor Corporate Company across the world. The success of the company could be attributed to the company’s internal capability and enhancement of its external control (Rother, 2010). As discussed herein, the paper presents the Toyota Motor Corporate Company’s organizational structure, the organizational internal factors for success, while analyzing the external environment of the company and how it operates in different parts of the world.
Organizational analysis of the company
Toyota Motors Corporate Company is an automobile manufacturing company based in Japan. The company was founded in 1973 to provide automobile products in Japan and across the world. Toyota has recorded an excellent service provision which includes vehicle products for the customers globally. This company has established its bases in most developed countries like the US and Europe. It has also shown greater interest in market enhancement in developing countries like India and China. The company has provided employment to over 30,000 employees all over the world. The organizational function of the Toyota Motors Company that has enabled its success in the market is based on strategic management. From this perspective, we can discuss the strategic and global competitiveness plan of the company in the world environment from the following point of view:
Business strategies and world competitiveness plan
Strategic management of any organization may take two approaches which mainly include inside-out strategic management approach and outside-in strategic management approach. Inside-out strategic management approach of the Toyota Motors Company focuses on internal capabilities, the strength of the employees, core competence of the organization’s management. On the other hand, the outside-in organizational management strategic plan focuses on the external environment of the company which mainly include competition and analysis of the product market. The products produced by companies or organizations that focus on outside-in strategic plan approach develops products on the basis of the competitor’s products.
Over the years of the Toyota Motors Company operation, the company has been employing inside-out strategic management approach that has enabled its evident growth in the global market. for the development of the company’s product, the company basis its production on organizational internal capabilities and innovations. The employees’ innovation and creativity heavily influence the success of the company. The Toyota Motors Company management realizes the potential of its employees as the biggest company’s asset (Rother, 2010). The company’s management provides the employees with opportunities to develop new ideas and innovations toward the company’s development.
The automobile industry has been experiencing a high competition in the global market. The industry has a large number of participants. An organization can decide to follow any of these two types of high-level business strategies;
Leadership strategic cost
Strategy for product differentiation
Toyota Motors Company employs a combination of these two strategic forms in different geographic locations to serve different customer’s needs. The Toyota Motor Company uses cost leadership strategies while it uses product differentiation strategy in other regions. The company has to consider its internal and external business environment to decide on the form of business level strategy to use in a given region or country. Other factors to consider while deciding on the type of business strategy to use by a company include market sentiment, customer’s preference, and the market condition of the company’s external environment.
For instance, Toyota Motor Company employs cost leadership strategies while operating in developing countries like India and China. In such a developing country, cost leadership business strategy is essential to employ due to various important factors that the company relies on especially in consideration of customer’s needs and preferences. On the other hand, Toyota Company uses product differentiation strategic plan in developing countries like the US and London. This strategy is applicable in developed countries because customers in such countries focus on product quality but not prices. Production of high-quality products in the US as compared to other developed countries by the same company is as a result of high competition that exists in such countries.
The company’s internal assessment
Organizational management plays a major role in controlling the internal environment of a company. The management is required to use the SWOT analysis tool for analysis of the organizational internal environment. The Toyota Motor Company management may use the SWOT analysis tool to enable the company to plan for future based on the current status of the company. The following presents the SWOT analysis of the Toyota Motor Company.
The biggest strength of Toyota Motors Company is in its innovative culture
Valuation of the company’s rand has a value of $30 billion
Toyota displays an industrial and marketing leader features in its production and sales of automobiles with a strong brand portfolio
The company leads in green cars development technology.
A challenge occurs when a company tries to recall its vehicles. Some years back, the company was forced to recall a large number of vehicles which came as one of the biggest weakness that the company experienced.
The company has not exhausted the current and emerging automobile economy due to existing tight competition.
Among the greatest threat that the Toyota Motors Corporative Company and other players in the automobile industry experiences is a fluctuation of the fuel prices across the world.
The industry also faces high competition from other companies manufacturing automobile products which also threaten the market
The company also faces a threat of new emission standards in different regional markets across the globe.
The company is also experiencing a rise in prices for raw materials thus increasing the manufacturing cost
Toyota Company is also threatened by dynamic global economic conditions and fluctuation in exchange rates
The biggest opportunity of the Toyota Company is the global change in the market trend which shifts toward the green car's technology
In the past market, the company has experienced a change in the customers’ preference. For this issue, the company is enjoying the fate of new opportunities in the global market.
Another major opportunity the company is experiencing is its ability to grow through acquisition
The company’s external environment
Just like any other co...