Toyota motor company was established in 1937, and Toyota motor sales company was established in 1950. Therefore, in 1982, the two companies merged to form the Toyota Corporation. The fundamental management style of the Toyota motor corporation and its suppliers, as well as affiliates, are currently based on particular principles (Prasad, 2001). These include; being practical, kind, and generous by striving to create a warm atmosphere, contributing to the development and welfare of the country by working together regardless of position, and being innovative, creative, and inquisitive to pursue improvement. These principles emphasize the solidarity relationship between management and labor which is created by a single power in the industry. Family cooperation and harmony is the most vital theme for the successful business of Toyota. In brief, Toyota evolved from a family business and has grown into one of the major multinational corporations in the world.
Toyota motor corporation marketing efforts have been based on the best experience of ownership and vehicles of high standards. The customer experience has been focused on use of certain slogans such as “what an experience”. Therefore, for the company to perform even better than it is today, it’s recommended that it improves on communication strategies. An important strategic decision is that of using standardized or adapted communication (Prasad, 2001). If the company wishes to deliver a common approach across different country markets, this will influence many parts of its marketing communications. It’s also recommended that the organization of the company and agencies be capable of planning and implementing large international campaigns. Therefore, marketing communications is concerned with the detailed implementation of communication strategies. For instance, in advertising, tactical issues will include media scheduling, while sales promotion will require decisions on the type of promotions. For example, if it’s the use of slogans, what kind of slogan will be appropriate to improve the experience of the customer.
The Toyota corporation company has been experiencing a financial crisis in the past few years. Its shares have reduced to about 23% leading to it encountering losses, but its handling the financial crisis in an open and straightforward manner. The company is working energetically to find the solution and it believes that very soon, its sales and the stock price will rise up again. Growth, efficiency and stability, are three key components to Toyotas financial strategy. Toyota has a belief that the automotive market will grow further in the years to come especially in the fuel-efficient, compact and electro vehicles segment. The company wants to invest in such next- generation technologies to ensure long term sustainable growth and to meet the customers needs. Therefore, For Toyota to improve profitability and capital efficiency, it is recommended that it offer affordable price to the new technology like the hybrid vehicles, and to guarantee high quality at a lower price, it should implement more cost reductions and employ the efficient use of unemployed and idle facilities (Graeme, 2004).
Economically, Toyota Motor Corporation is highly recommended to expand its motor transport benefits to various countries world wide. It has been noted that, only a third of the population around the world are in position to enjoy this services while the rest of the population do not benefit because they are unable to access them. Therefore, for its economy to grow higher, the company needs to create clear access of their products for easier reach by anyone who needs the services.
Toyota Motor Corporation should instill its operations worldwide with a customer perspective in its global operations. It’s recommended that the company assesses the way quality problems occur and investigate the things that impact on its functioning in every phase of its design work, processing, marketing and service. According to Hino (2006) in order to spearhead comprehensive improvements to the corporation’s global operations and even promote its strength of global quality practices, the corporation should keep in mind the importance of global communication to enhance transparency. It should also aim at carrying out its quality assurance based on their customers from every region globally (Hino, 2006).
Toyota is an ethical company because it has been ranked among the best companies with good reputation and the most progressive. For example, its products is environmental friendly; it has developed new eco friendly cars, which have a smaller pollution level. However, Toyota Motor Corporation should aim at possessing a specific law on outside shareholder participation. This will ensure that the company meets the better practice principles concerning the stakeholder engagement. For instance, it will be enabled to identify conditions that customers or stakeholders can expect to be engaged in corporate decision making. The company should emphasize on the importance of providing education and training to its staff particularly on engagement activities.It should also institutionalize the involvement of stakeholders from outside in corporate decision making. The company is noted to be having the above mentioned services for its staff, yet good company needs to offer training and education to its staff for better performances in the future. It’s also recommended the corporation improves or strengthens its shareholder protection; which is lowering its performance in member control (Magee, 2007).
Therefore, for better performance of Toyota Corporation, it should consider working with a number of reforms. This can be through strengthening their commitment to being open with their information to stakeholders through a wide organization information transparency policy that indicates the kind of information, when it should be distributed, and how it will be made available (Liker, 2008).
According to Liker, SWOT analysis of Toyota Motor Corporation is a very important tool for information of a company that is considered to be among the top around the world. Therefore, in order for the company to identify and examine its major business structure and how it carries out its operations, its products and major revenue openings, its recommended that, it emphasizes on the use of SWOT analysis as the measuring tool of its daily operation (Liker, 2008).
Toyota motor corporations major strategy is to improve its corporate value by keeping its position as a manufacturing leader in automotive companies (Hitt, 2008). Therefore, for it to ensure the success of this strategy, its necessary that it proceeds in its growth through worldwide functioning and also through manufacturing products that reflects its advanced technology with the aim of reaching the local demand in each market. This will also be achieved through improving its technology by making it environmental friendly, supply ability, and marketing.
Recently, consumers sense of value for vehicles has grown more diversified, and has become indispensable for automotive manufacturers to create high quality, clean and reliable products that appeal to consumer sensitivity.Therefore,for Toyota motor corporation to make improvements in its industry, it has to improve the engineering capability for designing products that can realize a high degree of reliability by simultaneously enhancing the level of collaboration activities with parts of manufacturers (Graeme, 2004).
Another recommendation for improvement of Toyota Motor Corporation is the basic need for creating high quality, inexpensive vehicles by applying still more advanced production engineering and production management systems. To achieve this, it’s recommended that the corporation evade conventional quality management approaches that largely depend on individual experience and intuition of key staff such as the engineers and management for enhancing technological capability. It can also establish new quality management principles and core technology that comprehensively and effectively utilize the experience and know-how scattered across different levels, divisions and persons of the company (Besser, 1996).
Conclusions concerning the strength of Toyota motor corporation
At Toyota Motor Corporation, the drive for perfection is directed into five outlets and this comprise of safety, quality, cost, delivery, and morale. This is emphasized to its employees from day one. They are reminded daily on the importance of working together as a team if they have to accomplish their goals and objectives and fulfill the purpose of long term mutual prosperity. Its strength is in the way it interlocks groups of different and extra ordinary experiences and skills (Amasaka, 2004).
Toyota Company has been ranked among the most progressing companies with strong marketing and global strategies world-wide. Thus, it can make a good business for investment because of its high investments in research and development and in sustainable facilities. Toyota Company is organized and has group responsibility as exemplified in work teams and cross hierarchical teams, job rotation, and the creation of organizational ideology and feelings of community, that is, the company team. Toyota Motor Corporation also has standardized work, fast set up and retooling, just in time manufacturing system in the sense that more surplus labor is recruited from employees for organizational goal achievement and at the same time critically depending upon employees good will.
In conclusion, Toyota motor corporation became the worlds best automaker on the strengths of a management system that motivates leaders to empower team members to think and act on their own. Its steady ascent marked by stability, growth, and evolution continued on the strength of a management structure that empowers employees, turning managers and leaders more into facilitators and coaches than bosses and autocrats. Thus, with strong and empowered employees, the organization strengthens considerably. The company runs on the amalgamated fact-based platforms formed by groups of people. During their important meetings, questions are posed in a professional manner and participants are encouraged to avoid unsubstantiated opinions.Therefore, Toyota expectations run high for preparedness and more authority often means more responsibility. The company also motivates the flow of information in order to remove barriers. This is achieved by managers working in open offices with employees, which makes them more accessible while also allowing them to readily participate in the daily work flow.
Amasaka, K. (2004).Science SQC, new quality control principle: the quality strategy of Toyota. New York: Springer.
Besser, T. (1996). Team Toyota: transplanting the Toyota culture to the Camry plant in Kentucky. New York: Sunny Press.
Graeme. (2004).Time for a model change: re-engineering the global automobile industry.USA: Cambridge University Press.
Hino, S. (2006).Inside the mind of Toyota: management principles for enduring growth. Chicago: Productivity Press.
Hitt, R. (2008).Understanding Business Strategy: Concepts and Cases. Harvard: Cengage Learning.
Liker, J. (2008).Toyota culture: the heart and soul of the Toyota way.USA: McGraw Hill Professional.
Magee, D. (2007).How Toyota became #1: leadership lessons from the worlds greatest Car Company. New York: Portfolio.
Prasad, K. (2001).Japan in the Bluegrass.USA: University Press of Kentucky.