Strategic Management on Toyota (Research Paper Sample)

Strategic Management on Toyota
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Strategic Management on Toyota
The Toyota Motor Corporation is the leading automaker Multinational Corporation regarding, profit, net worth, and revenue. The corporation was established in 1926 as Toyoda Automatic Loom Works Limited and has consistently maintained leadership among its competitors. It has a wide reputation for the quality of its products and production systems. One of the aspects of the company that has significantly affected the implementation of strategy by Toyota is the organizational culture. The organizational culture is described as the shared perception between the organization management and its employees.
Cultural Web of Toyota Corporation
Stories
The stories reported by the business continuity managers are always characterized by events that had triggered the continuity process. As the founder company, Toyoda Automatic Loom Works Limited is considered the hero as it worked hard and provided an example to all employees. The brand image is different in various areas with various values such as simplicity, teamwork, innovativeness and discipline (Hoseus & Liker 2008). The brand image varies in various destinations depending on the culture and economic disparity.
Rituals and Routines
One of the strongest beliefs that the company holds is the creation of strong bonds with her customers. Employees are trained to be customer friendly and always prioritize the needs of customers (Toyota Motor Corporation 2015). However, the employee issues are also prioritized through ensuring that the work environment is friendly. Teamwork is a requirement. Mistakes are also admissible provided that they learn from them.
Symbols
It is normal to find the similarity of features in every subsidiary of the Toyota Corporation. For instance, every employee is supposed to adhere to the principles that characterize the company culture. The five main principles that employees exhibit include faithfulness to duties, studious and creative, practical and avoiding frivolousness, strives to build a homelike work environment, and show respect for spiritual issues (Toyota Motor Corporation 2015). All subsidiaries are also required to adhere to the set quality standards and principles of lean production (Hoseus and Liker 2008).
Organizational Structure
The organizational structure of Toyota Corporation is hierarchical
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The management is composed of strategic decision makers that ensure stability and effective implementation of the strategy. For instance, the management’s decision to recall 8 million workers would have been a source of the challenge since the capital is at stake (Shim & Steers 2012). However, the effective strategic decisions makers ensured that the lost stability was restored. Appropriate training programs are also provided to all members of the management (Magee 2007).
Control Systems
At the center of Toyota’s control systems is the characteristic innovativeness and risk-taking. Toyota is innovative since it encourages innovation at every stage of the product design process. The company has also taken a huge risk in recalling 8 million vehicles globally for unintended acceleration (Shim & Steers 2012). To show its commitment, Toyota does not hesitate to recall its products from the market if they do meet the required standards. Furthermore, the company culture is also people oriented since it gives due credit to all employees for its success, teamwork-oriented since it gives recognition to workers across all levels, and aggressive since it believes in the delivery of the best product.
Power Structures
Senior management was predominantly Japan although this has changed recently to include experts from other areas around the world. However, all employees, regardless of their nationalities, are encouraged to pay strict attention to detail and maintain discipline during the execution of responsibilities and the general implementation of the strategy (McKie 2011).
Paradigm
Toyota’s cultural web supports its current strategy. The change in the composition of the senior management to include employees from other nationalities is an essential strategy for attaining international growth. The strategy of the company is a product of various competencies such as strong brand image whereby the company upholds a good reputation regarding quality and reliability. The two major pillars of their industry include just in time and Jidoka (automation with a human touch) (McKie 2011).
International Strategy
Toyota Corporation has adopted a global strategy that takes advantage of the opportunities in the global market through the consideration of various characteristics of markets where it acted. According to Hoseus & Liker (2008), the corporation’s international strategy is summarized by the slogan “think global, act global.” Therefore, the global strategy is geared towards meeting the need of every customer. The success in its international strategy is also related to its desire to manufacture products of high quality through improving the automotive technologies, creation of the new models, and showing concern for consumption while upholding environmental standards (Naranjo-Valencia, Jimenez-Jimenez & Sanz-Valle, 2011). In this regard, Toyota has invested heavily in the development of eco-car technology in their international markets. For instance, the company established design labs in USA and Europe to enhance the understanding of the local influences and catering for the needs of the potential clients. In fact, Hoseus & Liker (2008) argue that the company’s global strategy is focused on entering the international market in a stable, slow and sure manner. The company also targets emerging markets such as India and Brazil, with the main weapon being lower wage costs.
Strategic Options
Toyota is supposed to be more aggressive in assuming an early leadership in commercializing the hybrid systems as well as the electric-vehicle technology. Although most of the prominent carmakers focus on launching new hybrids with efficient powering technology, the company occupies a leading position in the industry. This indicates that improvements to their products stand a high chance of enhancing the already established competitive position. Further, Toyota is also supposed to focus more on safety standards to avoid bad publicity. It is also necessary that they acquire new small companies that can reinforce their market position as well as expand the company. Due to the wide-ranging awareness on environmental protection, the company should consider separating its hybrid models into a separate brand that can target customers that are more environmentally friendly. Therefore, a new brand that offers cheap, environmentally friendly and efficient car can be well received.
Ansoff Matrix
Market penetration
Market penetration strategies are normally successful in the case of growing or emerging markets. However, in the case of automotive industry, the market is already established indicating that penetration would be highly challenging. This notwithstanding, the risk of penetration for Toyota would not be that significant since the company is already well established. The strategies that the company uses include the focus on refreshing their brand through complete redesigning of the interior, for instance, Corolla 11th generation from 1966 till now (McKie 2011). The company’s penetration strategy is also focused on investing in brand development rather than channelling their monies on discounts and incentives as a strong brand identity is capable of increasing margins, leverage, and sales. Toyota has further attained a significant growth in its market sh...