TOYOTA

Toyota Motor Corporation is a Japanese multinational automotive manufacturer

headquartered in Toyota City, Aichi, Japan. It was founded by Kiichiro Toyoda and
incorporated on August 28, 1937. Toyota is one of the largest automobile manufacturers in
the world, producing about 10 million vehicles per year.

OVERVIEW OF TOYOTA
Company name
Toyota Motor Corporation
President and Representative Director
Akio Toyoda
Date founded
August 28, 1937
Capital (as of March 31, 2022)
635 billion yen
Shareholders
Shareholder composition
Main business activities
Motor vehicle production and sales
Number of employees (as of March 31, 2022)
70,710 (Consolidated 372,817)

VISION AND MISSION

MISSION:
Toyota’s corporate mission is “to make ever-better cars, to build a future where everyone has
the freedom to move.”

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

1. Strong brand image

2. Global supply chain
3. Rapid innovation capabilities

WEAKNESS

1. Hierarchical organizational structure

2. Secrecy in organizational culture
3. Effects of product recalls in recent years

OPPOURTUNITIES

1. Growing markets in developing countries

2. Rising demand for fuel-efficient automobiles
3. Growing interest in advanced electronics in vehicles
4. Weak Japanese Yen vs. U.S. Dollar

THREATS

1. Growing market presence of low-cost competitors

2. Rapid innovation of competitors

ORGANIZATONAL STRUCTURES OF TOYOTA

Toyota has a divisional organizational structure. This structure underwent significant changes
in 2013. This was seen as a response to the safety issues and corresponding product recalls
that started in 2009. In the old organizational structure, Toyota had a strong centralized global
hierarchy that was more like a spoke-and-wheel structure. The company’s headquarters in
Japan made all the major decisions. Individual business units did not communicate with each
other, and all communications had to go through the headquarters. However, this
organizational structure was widely criticized for slow response times to address safety
issues. After the reorganization that was implemented in 2013, Toyota’s new organizational
structure now has the following main characteristics:

1. Global hierarchy
2. Geographic divisions
3. Product-based divisions
LEADERSHIP STYLE
“RESPECT AND RELATIONSHIP”
Toyota’s leadership style emphasizes the importance of respect for its people. Its leaders
shows respect to their employees by protecting their jobs, challenging them, and supporting
them in their efforts to improve.

Protecting workers’ jobs. Toyota prioritizes job security for its employees, even through
significant internal and external challenges. For example, during the Great Recession of
2008-09, while other car manufacturers were letting thousands of people go, Toyota didn’t
lay off any members of its regular workforce.

Challenging employees. At Toyota, respecting employees means challenging them. The

TPS, with its lack of time buffers and inventory to hide behind, compels employees to think
on their feet. Liker says that workers participate in voluntary “quality circles” outside of
working hours in which employees work on complex problems together.

Supporting employees. Toyota uses a flipped org chart in which workers on the factory floor
are at the top (the highest priority), says Liker. The primary role of a team leader is to support
his or her team. Team leaders step in for workers who are sick or on vacation, coach team
members in a hands-on way, and routinely watch their team work to prevent problems and
improve processes.

CORE COMPETENCIES
The core competence of Toyota Motor Corporation is its capacity to create vehicles
of incredible quality, best case scenario costs, along these lines giving an incentive to
cash to the clients. This core competence of value can be credited to its imaginative creation
rehearses. The quality part of Toyota’s items have changed the vehicles in the past and all the
car organizations needed to attempt and better the nature of their items. It is a foundation
of the cost authority system that the organization seeks after.
OBJECTIVES:

Business objectives:

 To maximize shareholder’s wealth and giving them returns on their capital invested.
 Effective working capital management
 Cost management
 Quality production
 Resources utilization (manpower, capital, assets and other)
 Public image in market (national and international)
 Overcome competition

Ethical objectives:

 No compromise in ethics
 True and fair presentations, comply with law and standards Maintain highest level of
honesty, integrity, professionalism and ethical behaviour.

Cultural social and environmental objectives:

 See foreseeable future needs, company’s responsibilities as a manufacturer

company and always take proactive steps that benefits customers as well as society

 Proper waste management as a corporate social responsibility

 Protect whistle blowers and have regular meetings and review on

social, cultural, and environmental issues.

THE CULTURE OF TOYOTA

The basic reason for Toyota’s victory in the worldwide marketplace lies in its corporate
attitude” the set of rules and manners that run the use of its possessions. Toyota have
profitably penetrated international markets and recognized a world-wide occurrence by good
worth of its efficiency. The company’s approach to both product development and
distribution is very consumer-friendly and market-driven. Toyota’s philosophy of
empowering its workers is the attraction of a human resources management system that
promotes creativity, continuous improvement, and innovation by encouraging employee
participation and that likewise creates high levels of employee loyalty. Knowing that a
workplace with high spirits and job satisfaction is more likely to produce reliable, high-
quality products at affordable prices, Toyota have institutionalized many successful
workforce practices. Toyota has done so not only in its own plants but also in supplier plants
those were experiencing problems.
While a lot of car manufacturer have earned a reputation for building high-class cars, they
have been not capable to conquer Toyota’s reward in human resource management, dealer
networks and sharing systems in the highly reasonable car market. Much of Toyota’s success
in the globe markets is certified in a straight line to the synergistic recital of its policies in
human resources management and supply-chain networks.