Toyota Motor Corporation Organization Strategies

Contents

1. Toyota Motor Corporation

1.1 Historical Background

1.2 Organizational Structure and Key Players

2. Learning and Reinforcement Concepts

3. Motivation

4. Leadership theories and concepts

5. Influence of power and politics on an organization

6. Strategies for improving organizational communication and work performance

Conclusions

References

1. Toyota Motor Corporation

1.1 Historical Background

Toyota Motor Corporation, or Toyota in short, is a Japanese automaker. It is the world's second largest automaker behind General Motors [http://www.hino.co.jp/e/pressrelease/press.htmhl]; however it ranks first in net worth, revenue and profit. It is also the only car manufacturer to appear in the top 10 of the BrandZ ranking. The company was founded in 1937 by Kiichiro Toyoda as a spinoff from his father (Sakichi Toyoda)'s company Toyota Industries to create automobiles. In 1934, while still a department of Toyota Industries, it created its first product Type A engine and its first passenger car (the Toyota AA) in 1936. It is headquartered in Toyota, Aichi and Bunkyo Tokyo, Japan. It also provides financial services through its division Toyota Financial Services and also creates robots besides automobiles. The company along with the original Toyota Industries form bulk of the Toyota Group. Toyota owns and operates Toyota, Lexus, Scion, has a majority shareholding in Daihatsu Motors [http://www.toyota.co.jp/en/about_toyota/overview/index.html], and has minority shareholdings in Fuji Heavy Industries, Isuzu Motors, and the engine, motor cycle and marine craft manufacturer Yamaha Motors. The company includes 522 subsidiaries. Toyota plans to produce 9.4 million vehicles in 2007. It plans to sell 10.4 million automobiles in 2008, which would be the first time an automaker has sold more than 10 million vehicles in a year. Toyota Motor Corporation operates in the automotive industry worldwide. It engages in the design, manufacture, assembly, and sale of passenger cars, recreational and sport-utility vehicles, minivans and trucks, and related parts and accessories. The company offers hybrid vehicles primarily under the Prius brand, which run on a combination of gasoline and electric power. Its products also comprise conventional engine vehicles, including subcompact and compact cars consisting of Corolla sedan and Yaris brands; mini-vehicles, passenger vehicles, commercial vehicles, and auto parts; mid-size models comprising Camry, Mark X, Premio, Allion, Blade, and Avensis brands; and luxury models encompassing Lexus, Crown, and Century limousine. In addition, Toyota offers sports and specialty vehicles, which include Lexus SC430 and Scion tC brands; recreational and sport-utility vehicles and pickup trucks that comprise Tacoma and the Tundra pickup trucks, as well as 4Runner, FJ Cruiser, Highlander, Land Cruiser, RAV4, Sequoia, and Sienna; minivans and cab wagons that primarily include Alphard, Sienna, Estima, Hiace, Regius Ace, Noah, and Voxy, as well as Wish, Sienta, and Isis brands; trucks consisting of large trucks with a load capacity of over 10 tons, medium trucks with a load capacity between 4 and 8 tons, and small trucks with a load capacity of between 2 and 4 tons; and buses, including large to medium buses used primarily as tour buses, public buses, small buses, and micro-buses. Further, the company provides finance to dealers and their customers for the purchase or lease of Toyota vehicles. Additionally, it engages in the design and manufacture of prefabricated housing and information technology-related businesses, including intelligent transport systems and an e-commerce marketplace, called Gazoo.com. Through out the year's Toyota's products has been successful in building the reputation of reliability and fuel-efficiency (Masaki, Hisane. 2006), high and homogenous quality regardless of place of production. The corporation aims to minimize the necessary support that comes from Japan and let each of its overseas bases become self-reliant (Toyota, 2007). Toyota is such a huge organizational unit that serve each unit in the society. The status of initiatives taken and the thinking behind those initiatives are needed to respect to each category of stakeholder, which includes customers, employees, business partners, shareholders, global society and local communities. Toyota promotes reduction of substances of concern in collaboration with suppliers. Does the American example hold true in other foreign markets? According to Toyota, the company's first major foreign market was the United States, and the lessons learned there informed strategies later used in the European and other markets (Toyota website, 2007). Toyota has replicated not only the practice of customizing automobile models to meet market needs (as they did with the Corona in the U.S.), but also the practice of placing manufacturing plants in countries where they market their products. Toyota currently has 51 manufacturing companies in 26 countries. While the 12 manufacturing plants located in Japan manufacture about twice the total number of cars of those manufactured overseas (and are clearly central to corporate operations, it is obvious that with 51 overseas plants in 26 countries, Toyota is expanding manufacturing capabilities overseas. Clearly, Toyota is heavily committed not only to its global marketing strategy, but its strategy as a global "citizen" as well.

1.2 Organizational Structure and Key Players

As with all other corporations, the governing body of Toyota is the General Meeting of Shareholders, which is convened in June of each year. Only those shareholders that own above a certain threshold of shares may attend and vote at the General Meeting. Toyota's executive body is the Board of Directors. This is composed of a total 25 Directors that include the Chairman, Vice Chairman, President, 8 Executive Vice Presidents, 12 Senior Managing Directors, an Honorary Chairman, and Senior Advisor. None of these are independent directors. There are four committees that feed into the Board, including the Labour-Management Council, the Corporate Philanthropy Committee, the Stock Option Committee, and the Toyota Environment Committee.

The

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