Report

On

The communication Process of “Toyota Motor

Corporation” with its Suppliers

Submitted To:
Nafiza Islam
Assistant Professor
Department of Management Studies

Submitted By:
Maleka Sultana-1624
Suhana Ismail Srity-1627
Ariana Haque-2027
Jannatul Ferdous Zinia-1634
MD.Raihan Uddin-1655
Department of Finance & Banking

Date of Submission:
13th February, 2017

Faculty of Business Studies

Jahangirnagar University
Savar,Dhaka-1342.
 A report on “The Communication Process of Toyota Motor
Corporation with its Suppliers” submitted to the Department of
Finance & Banking in partial fulfillment of the requirement for the
Business Communication course in Jahangirnagar University,
Savar,Dhaka.

Submitted To:
Nafiza Islam
Assistant Professor
Department of Management Studies

Submitted By:
Maleka Sultana-1624
Suhana Ismail Srity-1627
Ariana Haque-2027
Jannatul Ferdous Zinia-1634
MD.Raihan Uddin-1655
Department of Finance & Banking

Date of Submission:
13th February, 2017

Faculty of Business Studies

Jahangirnagar University
Savar,Dhaka-1342.

i
 The Brains of Castamere
BBA 7th Batch
Department of Finance & Banking

13 February, 2017

Nafiza Islam
Course Teacher
Department of Management Studies
Jahangirnagar University
Savar, Dhaka-1342.

Subject: Submission of the report on the communication process of Toyota Motor Corporation
with its suppliers.

Dear Madam:

It is our immense pleasure to express that we, the undergraduate students of BBA 7th batch, have
prepared a report on ‘Communication process of Toyota Motor Corporation with its suppliers’
under the course Business Communication.

Though we are in learning curve, this report has enabled us to gain insight into the
communication process of a manufacturing corporation. Throughout the completion of this
report we have earned in depth knowledge about the relationship between Toyota Motor
Corporation and its suppliers.

We are thankful to you, as you allowed us to perform the study and to submit the report. We
hope that the Report will meet the standard and will serve its purpose.

Sincerely yours,

.............................. ..…….………………. ….……………………..

Ariana Haque Maleka Sultana Suhana Ismail Srity
ID: 2027 ID: 1624 ID: 1627

……………………………. ..……………..................
Jannatul Ferdous Zinia MD. Raihan Uddin
ID: 1634 ID: 1655

ii
 Acknowledgement

This is our pleasure to prepare and submit the report on “The Communication Process of
Toyota Motor Corporation with its Suppliers.” we went through many websites, newspapers,
journals and articles to complete our report and it’s really a great opportunity for us to acquire
valuable knowledge for this interesting subject. At the very beginning, we want to express
our profound gratitude to our respected course teacher Nafiza Islam, to provide us with
such a nice opportunity to prepare this kind of report.

We would also like to take this opportunity to express our wholehearted gratitude to our
fellow friends who offered encouragement, information, inspiration and assistance during the
course of preparing this report.

This report suffers from many shortcomings; nevertheless we have exerted our best efforts in
preparing this report. We seek excuse for the errors that might have occurred in spite of our
best effort.

At last special thanks to Almighty Allah to whom we are grateful forever for giving us all the
opportunities in doing each and everything.

iii
 Table Of Contents

Executive Summary vi

Chapter 1 Introduction 1
1.1 Concept & Background 1
1.2 Communicating Objectives 1
1.3 Significance of the Report 1
1.4 Acknowledging Exceptions and Limitations 1

Chapter 2 Methodology 2
2.1 The Report Design 2
2.2 Data Collection Procedure 2
2.2.1 Primary Data 2
2.2.2 Secondary Data 2
2.3 Research Framework 3
2.4 Gantt Chart 4

Chapter 3 Theoretical Framework 5

3.1 Literature Review 5
3.2 The Communication Process 7

Chapter 4 Organizational Synopsis 9

4.1 An Overview of The Organization 9
4.2 Toyota’s Mission Vision and Strategy Statement 9
4.2.1 Toyota’s Vision Statement 9
4.2.2 Toyota’s Mission Statement 9
4.2.3 Toyota’s Strategy Statement 10
4.3 Corporate Stock Summary 10
4.4 Equity Capital and Reserves of Toyota 11
4.4.1 Cash reserve 11
4.4.2 Receivables from banks 11
4.4.3 Foreign currency assets 11
4.5 Toyota’s Organizational Structure 12
4.6 Risk Management 12

Chapter 5 Analysis & Interpretation Of Toyota Motor Corporation’s 13

Communication Process

Chapter 6 Summary of Findings 17

iv
 Conclusions 18

Recommendations 19

References & Bibliography

List Of Tables & Figures

Figure 3.2 The Communication Process 7

Table 4.3 Stock summary of Toyota Motor Corporation 10
Table 4.4.2 Receivables from banks 11
Figure 4.5 Toyota’s Organizational Structure 12
Figure 5.0 Communication process of Toyota Motor Corporation 14

v
 Executive Summary

This report provides an analysis and evaluation of the communication process of Toyota Motor
Corporation with its suppliers. Methods of primary data collection include observation,
interview, questionnaire and experiments. Secondary data collection includes various sources
like books, magazines, newspapers, journals and periodicals etc. Results of data analyzed show
that In Toyota Motor Corporation, engagement is achieved greatly with their suppliers through
communication process. All methods of communication used by Toyota Motor Corporation play
a very essential role in passing the vital messages to the suppliers that help building the
corporation. The success of this manufacturing corporation has been achieved by cultivating and
deepening ties with suppliers who share the commitment for creating quality products for
customers. The report finds the prospects of the company in its current position are positive but
the major areas of weakness require further investigation and remedial action by management.
Recommendations include the establishment of an enhanced system to create a direct
relationship between the corporation and the final customer, the need to get higher experienced
supplier personnel and building more plants to increase the producer-supplier relationship.

vi
 1.0 Introduction

1.1 Concept & Background:

This report is prepared to show the communication process of Toyota Motor Corporation with its
suppliers as a requirement of academic activities for the course “Business Communication”. It is
to explain the ways of communication between the corporation and its suppliers.

Toyota Motor Corporation has developed processes to enhance the producer supplier relationship
with the corporation. It creates a good relationship between producers and suppliers to improve
the performance and enhance speedy delivery of gods and services to their final destination.

1.2 Communicating Objective:

The purpose of this report is to make a clear and thorough analysis on the communication
process of Toyota Motor Corporation with its suppliers. To achieve this objective the following
specific objectives are outlined:

 To study the available support services of Toyota Motor Corporation.

 To suggest some policy recommendations to overcome communication limitations.

1.3 Significance of the report:

In this report, we have explained the communication process of Toyota Motor Corporation which
occurs on a regular basis between the producers and suppliers to align schedules and plans which
has prevented unnecessary production loss. Here, we have shown how a manufacturing company
controls and manages its communication process with their suppliers.

1.4 Acknowledging exceptions and limitations:

Most of the information was taken from various internet websites. So, there is a slight
possibility that some of the information may not be accurate. We tried our best to fulfill the
purpose of the report but there were some specific topics on which we couldn’t collect any valid
data.

Page 1 of 25
 2.0 Methodology

2.1 The Report Design:

This is an academic based report. This report is mainly designed to show the communication
process that takes place between an organization and its producers & suppliers. First, we have
included the basic communication process which occurs between a sender and a receiver. Then,
we have shown how this process helps the Toyota Motor Corporation to communicate with its
suppliers. The whole idea of this report is to represent the ways that Toyota Motor Corporation
follows to communicate with their buyers.

2.2 Data Collection Procedure:

We have encountered a number of issues in our various attempts at using the Internet for primary
data collection. A list of such issues must include those associated with research ethics
guidelines, technical snags arising from power failures, data cleaning requirements, and low
response rate. Sometimes, the experience has been so frustrating as to make manual data
collection through paper-and-pencil research packets appears more attractive. However, with
experience, we have learnt to be judicious in selecting the appropriate data collection method for
a given research project and taking the necessary precautions if we choose to use the Internet.

2.2.1 Primary Data:

We have used different types of primary data and they are used according to the type of study.
Some of the most prominently used methods of primary data collection include observation,
interview, questionnaire and experiments. There are many other methods but they are less
recognized compared to the above mentioned methods.

2.2.2 Secondary Data:

Published data is the most basic secondary source of information for data collection. We
obtained published data from various sources like books, magazines, newspapers, journals and
periodicals etc. Published data is the most reliable secondary source of information. The validity
of published data is greater than unpublished data.

Page 2 of 25
2.3 Research Framework:
A research framework is a bit like a recipe or a blueprint. It provides an outline of how you plan
to conduct the research for your report, but it goes further than that by also positioning your work
within the larger field of research. Writing a research framework helps to guide your report to
ensure that your research stays on track.

Design of Review of Elaboration of Collection of

Report Literature Report Topic Data

Preliminary Phase Analysis Phase

Primary Data Research for Analysis of Interpretation

Collection Other Data Data of Findings

Research Framework

Prepare Draft Additional Final Paper Proofreading

Paper Data Collect Review

Paper Preparation Phase Paper Submission Phase

Development Revise Final Editing Report

of Report Documents Submission

Page 3 of 25
2.4 Gantt Chart:
Here, we have presented the activities that have been made throughout the preparation of our
report with the help of a “Gantt Chart.”

December January February

Activities
Week Week Week Week Week Week Week Week
3 4 1 2 3 4 1 2

Preliminary Phase

Design of Report,

Review of Literature,

Primary Data
Collection,

Research for other

Data

Analysis Phase

Elaboration of Report
Topic,

Collection of Data,

Analysis of Data,

Interpretation of
Findings
Paper Preparation
Phase
Prepare Draft Paper,

Revise Documents
Paper Submission
Phase

Final Paper Review,

Report Submission

Page 4 of 25
 3.0 Theoretical Framework

3.1 Literature Review:

Title of the article: Corporate communication in Toyota Motor

Corporation

Summary:
The world has changed a lot because of information revolution. Toyota has responded very well
to this change. Its visions, cultures and images are aligned perfectly with each other. Toyota is a
very forward thinking company and they have always kept their vision dear to their heart.
Management and employees both are engaging in the company’s strategic decisions. This
ensures not only fine decision making but also implementation of those decisions in the best
possible way.

Toyota is very responsive to the needs of its stakeholders. Their commutation with stakeholders
is clear and decisive. In Toyota Motors Corporation there are several communication methods by
which employees share their ideas, information, opinions and feelings. The following are some
of the methods: news-letter, face to face, notice board, memo, e-mail, telephone, cell phone, text
messages, and instant messaging. The sharing ideas, information, opinions and feelings
contribute to the operations of teams and the work of individuals within the corporation.

Due to their communication effectiveness Toyota Corporation has always done wonderful
business of selling cars. In fact, Toyota Corporation has been rated as the best motor vehicle
company that produces the best cars and the most cars that are in demand all over the world. It
produces passenger cars, buses, sport utility vehicles, trucks, and vans. In addition, Toyota owns
companies that manufacture such products as rubber, steel, and textiles.

Page 5 of 25
 Employee Newsletter is one internal communication skills that the corporation uses to recruit
employees. The Newsletter within the Toyota Corporation is, one of the best vehicles for
employee communication, it normally offers many riches in the corporation.

To set the new strategic direction, which aims to be environmentally friendly and respect their
work environments, Toyota has to rethink its structure. The company establishes its visions,
image and culture in order not to have any gaps between them. The carmaker also prioritized the
most important stakeholder and used a themed message to communicate all around the world. To
do that, the vehicle manufacture has an integrated communication department in its subsidiaries,
which are controlled by a central Toyota communication HQ.

Things that we’ve covered but this article lacks:

Toyota has complex strategies regarding its suppliers. It always keeps 2 or more suppliers in
hand for each component needed. The process of choosing suppliers is complicated. They have
excellent communication strategy that helps them to keep a very good relationship with all the
suppliers they have. Even though the article mentioned above is very well written and commands
respect, it has totally missed on Toyota’s relationship with its suppliers. Our report has in depth
information about all the facets of this excellent communication model.

Page 6 of 25
3.2 The Communication Process:
The goal of communication is to convey information—and the understanding of that
information—from one person or group to another person or group. The communication is a
dynamic process that begins with the conceptualizing of ideas by the sender who then transmits
the message through a channel to the receiver, who in turn gives the feedback in the form of
some message or signal within the given time frame. Thus, there are seven major elements of
communication process:

Sender

Encoding

Message
Feedback

Channel Noise

Receiver

Decoding

Figure 3.2: The Communication Process

1. Sender: The sender or the communicator is the person who initiates the conversation and
has conceptualized the idea that he intends to convey it to others.

2. Encoding: The sender begins with the encoding process wherein he uses certain words or
non-verbal methods such as symbols, signs, body gestures, etc. to translate the information
into a message. The sender’s knowledge, skills, perception, background, competencies, etc.
has a great impact on the success of the message.

Page 7 of 25
3. Message: Once the encoding is finished, the sender gets the message that he intends to
convey. The message can be written, oral, symbolic or non-verbal such as body gestures, silence,
sigh, sounds, etc. or any other signal that triggers the response of a receiver.

4. Communication Channel: The Sender chooses the medium through which he wants to
convey his message to the recipient. It must be selected carefully in order to make the message
effective and correctly interpreted by the recipient. The choice of medium depends on the
interpersonal relationships between the sender and the receiver and also on the urgency of the
message being sent. Oral, virtual, written, sound, gesture, etc. are some of the commonly used
communication mediums.

5. Receiver: The receiver is the person for whom the message is intended or targeted. He tries to
comprehend it in the best possible manner such that the communication objective is attained. The
degree to which the receiver decodes the message depends on his knowledge of the subject
matter, experience, trust and relationship with the sender.

6. Decoding: Here, the receiver interprets the sender’s message and tries to understand it in the
best possible manner. An effective communication occurs only if the receiver understands the
message in exactly the same way as it was intended by the sender.

7. Feedback: The Feedback is the final step of the process that ensures the receiver has received
the message and interpreted it correctly as it was intended by the sender. It increases the
effectiveness of the communication as it permits the sender to know the efficacy of his message.
The response of the receiver can be verbal or non-verbal.

Note: The Noise shows the barriers in communications. There are chances when the message
sent by the sender is not received by the recipient.

Page 8 of 25
 4.0 Organizational synopsis

4.1 An Overview of the Organization:

Toyota Motor Corporation (Toyota), incorporated on August 27, 1937, conducts business in the
automotive industry. The Company also conducts business in finance and other industries. The
Company's segments include Automotive, Financial Services and All Other. Toyota sells its
vehicles in approximately 190 countries and regions. Toyota's markets for its automobiles are
Japan, North America, Europe and Asia.

4.2 Toyota’s Mission Vision and Strategy Statement:

4.2.1 Toyota’s Vision Statement:

Toyota Motor Corporation’s vision statement indicates the company’s long-term strategic
direction in the automobile industry. This vision statement reads, “Toyota will lead the way to
the future of mobility, enriching lives around the world with the safest and most
responsible ways of moving people. Through our commitment to quality, constant
innovation and respect for the planet, we aim to exceed expectations and be rewarded with
a smile. We will meet our challenging goals by engaging the talent and passion of people,
who believe there is always a better way.”

4.2.2Toyota’s Mission Statement:

Toyota Motor Corporation uses various mission statements for its businesses in different
markets. Toyota’s mission statement is as follows: “Create vehicles that are popular with
consumers.” In expanded form, Toyota’s mission statement includes the following strategic
actions:

 Provide world-class safety to protect the lives of customers.

 Provide optimization of energy/infrastructure to local communities.

Page 9 of 25
  Put high priority on safety and promote product development with the ultimate
goal of “completely eliminating traffic casualties”.
 Deliver cars that stimulate and even inspire, and earn smiles from their customers.
 Through true mutual trust with partners, contribute to the development of new
technology and improved expertise.

4.2.3 Toyota’s Strategy Statement:

It reveals and identifies the company's purpose in terms of action program, long term goals and
objectives and available resources allocation priorities:

 Finding the business in the organization where it is in, or it is to be in.

 Helps to find out distinct task for managers at functional, business and corporate
levels
 Is a unifying, coherent and integrative patterns of making decisions
 Is organization's strategic intoned expression process
 Is for nurturing and developing intend of the organization.

4.3 Corporate Stock Summary:

Table 4.3: Stock summary of Toyota Motor Corporation

I. Securities code 7203(Japan)

II. Number of shares issued Common shares 3,337,997,492 shares
Common shares First Series Model AA Class Shares47,100,000 shares

III. Number of Shareholders 682,802 Shareholders

IV. Fiscal Year End March 31, 2016
V. Dividend payout confirmation March 31, 2016
date *When interim dividends are declared, the dividend
payout confirmation date is September 30.

VI. Number of shares per unit 100 shares

VII. Transfer Agent Mitsubishi UFJ Trust Bank Limited

VIII. Stock listing Japan: Tokyo, Nagoya, Osaka, Fukuoka, Sapporo

Overseas: New York, London

Page 10 of 25
4.4 Equity Capital and Reserves of Toyota:

4.4.1 Cash reserve:

The cash reserve includes foreign currency amounts of TEUR 16,994 (31 March 2014: TEUR
25,030).In addition to the balance with the Deutsche Bundes bank, cash balances with central
banks related to the National Bank of Poland amounting to TEUR 12,356 (31 March 2014:TEUR
17,105) and to the Central Bank of Russia amounting to TEUR 4,638 (31 March 2014: TEUR
7,925).Cash on hand amounting to TEUR 45 (31 March 2014: TEUR 20)and balances with
central banks amounting to TEUR 33,881(31 March 2014: TEUR 39,711) correspond to cash
funds reported in the consolidated cash flow statement.

4.4.2 Receivables from banks:

Receivables from banks have the following remaining terms:

Table 4.4.2: Receivables from banks

Remaining term of 31/03/201531/03/2014

up to three months (TEUR) 104,077 40,030

more than three months and up to one year (TEUR) 20,006 20,029
more than one year and up to five years (TEUR) 9,0089,000
Receivables from banks include foreign currency 114,567 47,668
amounts totaling (TEUR)

4.4.3Foreign currency assets:

Assets denominated in foreign currencies totaled TEUR 2,680,655 (31 March 2014: TEUR
2,753,725).

Page 11 of 25
4.5 Toyota’s Organizational Structure:
Toyota Motor Corporation’s organizational structure is based on the varied business operations
of the company around the world. As one of the world’s leading automobile manufacturers,
Toyota employs its organizational structure to support business goals and strategic direction.

Figure 4.5: Toyota’s Organizational Structure

4.6 Risk Management:

In response to the series of recall issues in 2010, Toyota has been reinforcing its risk
management systems. A Risk Management Meeting (now renamed Corporate Governance
Meeting) was established in June 2010 and risk managers were appointed as part of global
measures in each section to take preventive action across the range of risk occurring in business
activities.

Page 12 of 25
 5.0 Analysis & Interpretation Of Toyota Motor
Corporation’s Communication Process

Toyota seeks to contribute to the "creation of a prosperous society through automobiles." Toyota
also seeks to contribute to society by providing customers with the most attractive products in
the timely manner. In order to achieve these objectives, the task of Purchasing is to ensure "long-
term and stable procurement of the best products at the lowest price in the most speedy and
timely manner."To do this efficiently, Purchasing needs to build the world's No.1 supply base.
This is achieved by cultivating and deepening ties with suppliers who share the commitment for
creating quality products for customers.

A key feature of Toyota’s selling strategy is to build in schemes that prevent unilateral actions to
change the volumes or commitments. The use of a consensus approach, fostered by visibility
across the supply chain, minimizes actions that result in additional costs at different parts of the
supply chain. As discussed in Mix Planning through Parts Ordering, Toyota strives to reduce
variability to ensure stable operations by systematic mix planning, careful sales and operations
planning, and sensitivity to the impact of product changes throughout the supply chain. Such
deliberate planning provides suppliers with phased-in design changes and stable order volumes.

At Toyota, choosing a supplier is a long, drawn-out process that involves verifying whether the
supplier will mesh with the supply network. In some cases, suppliers are selected because they
have innovations that improve processes or decrease costs. Both new and existing suppliers are
expected to share their innovations with other suppliers that supply similar products. Thus, being
a supplier brings along with it an opportunity to receive ideas generated across the supply
network.

Toyota’s goal is to minimize the number of suppliers and create long-term partnerships by
nurturing existing suppliers to expand and grow with Toyota instead of growing the number of
suppliers to induce competitive price bidding. Individual suppliers receive a contract for a
fraction of the total market over the life of a model. The suppliers are promised all of the orders

Page 13 of 25
associated with a market segment (e.g., exports versus domestic) or a fixed fraction of a certain
market (e.g., a fraction of the domestic market volume) or all of the orders for a particular car
model. The goal of the supplier is to maintain delivery performance, high quality, productivity
improvements, and so on, over the life of the model.

Figure 5.0: Communication process of Toyota Motor Corporation

Toyota organizes its suppliers into two functional tires. First-tier suppliers work together in a
product development team and second-tier suppliers make individual parts. Toyota encourages
cooperation and communication among first-tier suppliers. Toyota sends personnel to suppliers
to compensate for greater workload and transfer senior managers to suppliers for top positions.

Page 14 of 25
For the auto OEMs, suppliers are organized into tiers, with tier 1 suppliers being assemblers of
systems, who manage all relationships with tier 2 suppliers, and so on. The bottom of the
pyramid consists of tier 4 suppliers who form, perhaps, about 40,000 entrepreneurs who own a
lot of the intellectual capital that is required to produce excellent components. There are many of
those suppliers that own patents, have customized machinery, and may be owned by an
individual family.

The relationship with suppliers, from drawing-supplied to drawing-approved ones, can vary
based on what is being produced. Intermediate relationships exist as well, such as when Toyota
provides rough drawings and the suppliers complete all details. Toyota uses the terms genchi
genbutsu or gemba (actual location and actual parts or materials) to describe the practice of
sending executives to see and understand themselves how suppliers work. The process can take a
while, but it usually proves to be valuable for both the suppliers and the manufacturers.

Toyota doesn’t depend on a single source for anything. They develop two to three suppliers for
every component or raw material they buy. They may not want ten sources, as an American
business would, but they encourage competition between vendors right from the product
development stage. For example, Toyota asked several suppliers in North America to design tires
for each of its vehicle programs. It evaluated the performance of the tires based on the suppliers’
data as well as Toyota’s road tests and awarded contracts to the best vendors. The selected
suppliers received contracts for the life of a model, but if a supplier’s performance slipped,
Toyota would award the next contract to a competitor. If the supplier’s performance improved,
Toyota might give it a chance to win another program and regain its market share.

Toyota starts the product development process with its suppliers on-site by teaching them how to
collect data. For example, Toyota expects precise data on the tolerances that the supplier’s
equipment can hold so it can design the product appropriately. Toyota helps the supplier set up a
data collection system before other companies figure out ways to improve the process.

Page 15 of 25
When they’re developing new products with their suppliers, Toyota divides components into two
categories: those that vendors can design by themselves and those that must be developed at
Toyota. The first category includes floor consoles, sunroofs, mirrors, locks, and other small
components. Suppliers can design those components without much interaction with Toyota’s
engineers because the parts work relatively independent of the rest of the vehicle. The second
category includes parts that interface with the sheet metal and trim of the body. Toyota must
design these components more collaboratively with suppliers. It insists that suppliers develop the
parts on Toyota’s premises in close consultation with the manufacturer’s engineers.

Toyota teaches suppliers its famed Toyota Production System. The company has also set
up jishuken, or study group teams, as a way to help the manufacturer and its suppliers learn
together how to improve operations. Executives and engineers who work for Toyota and its
suppliers meet under the direction of a Toyota sensei and go from plant to plant improving
suppliers’ processes. These activities, which are orchestrated in some cases by the Bluegrass
Automotive Manufacturers Association (BAMA), Toyota’s North American supplier group, give
suppliers’ managers hands-on experience with the Toyota Production System in different types
of environments.

Toyota has built great supplier relationships by following six distinct steps:

 First, they understand how their suppliers work.

 Second, they turn supplier rivalry into opportunity.
 Third, they supervise their vendors.
 Fourth, they develop their suppliers’ technical capabilities.
 Fifth, they share information intensively but selectively.
 And sixth, they conduct joint improvement activities.

Page 16 of 25
 6.0 Summary of Findings

All methods of communication used by Toyota Motor Corporation most of them play a very
essential role in passing the vital messages to the suppliers that help building the corporation.
The effectiveness of the communication methods contributed so positively to the success of the
corporation that has operated for over thirty years in the business of selling cars. Due to the
corporation’s effective communication, the corporation has made a lot of profit that has helped
them acquire another branch.

In Toyota Motor Corporation engagement is achieved greatly with their suppliers through
communication process .While many factors collectively influence engagement level, the
following communication-based elements indicate a strong engagement environment:

 They depend on multiple suppliers for resources.

 Management is trusted in what suppliers say and do.
 Communication with suppliers is honest and straightforward, helping maximize
organizational and individual performance.
 Suppliers truly understand organizations business strategy.
 Accomplishments are recognized and rewarded.
 Suppliers recommend organization to colleagues and friends.
 Suppliers are verified and well tested to supply similar products with other suppliers.

Toyota Motor Corporation works side-by-side with hundreds of suppliers to build their top
quality vehicles. Current and potential suppliers can get information on their purchasing policies
through their communication methods. The success of this manufacturing corporation has been
achieved by cultivating and deepening ties with suppliers who share the commitment for creating
quality products for customers.

Page 17 of 25
 Conclusions

Toyota Motor Corporation is an effective communication based organization. It is very much

evident from here that it is an organization of ethics and high morals working towards a better
world. The company really cares about its employees, does its corporate duties as a responsible
citizen and has contributed to each country it has entered in. The prospects of the company in its
current position are positive. The effectiveness of the communication methods contributed so
positively to the success of the corporation, but to set the new strategic direction, Toyota needs to
rethink its structure which requires further investigation and remedial action. Despite a few
problems, Toyota can be considered as a role model for automobile industry.

Page 18 of 25
 Recommendations

The future changes that should be made in “Toyota Motor Corporation” have been shown in this
part of the report through “Prioritization Matrix.”

Urgency
HIGH LOW
The establishment of an The need to get higher
enhanced system to create a experienced supplier
HIGH

direct relationship between personnel supporting them.

Importance

the corporation and the final

customers.

Building more plants in The need to keep growing

different countries to for building a stronger
LOW

increase the producer- foundation for the

supplier relationship. company’s long-term
health.

Page 19 of 25
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