Through observation Toyotas decisions where more of reactive. The company provides solutions and warnings to customers only after complaints are made. Though there was an effort to notify customers with regards to the dangers of the floor mats, Toyota communicated the wrong information to clients.
The basis of each decision made were complaints of customers or family member which became victims of Toyotas manufacturing defects. Though the company claims there is nothing wrong with their systems, it is quite confusing why they would recall car models even if they claim that everything was in good condition.
Toyota only makes decisions after accidents happen and complaints and suits are filed against the company. This is only the time when the management team examines and makes decisions with regards to taking actions.
The consequences of Toyotas decisions have given the company a bad reputation which led to the lost of millions of dollars. If Toyota opted to make examine the safety of their cars, conducted studies and surveys before suits are filed and paid attention to complaints by customers they could have saved much public embarrassment and court time. The decisions made by the Toyota management were always late.
True the company was reactive in nature but lives were already lost and it was reported that there were hundreds if not thousands of complaints made because of the problem in terms of the break.
The company did not take action then. Complaints were ignored and the company kept telling its dealers that problems were minor. When suites were filed already, thats the only time Toyota took action by announcing to recall specific models which are suspected to have problems. In this way the company already lost money and its brand was already tarnished.
In terms of the bounded rational model, Toyotas actions acknowledges and confirms that the management team of the company has been considering environmental and behavioral constraints in their decision making. Since Toyota is a Japanese based company operating in the United States (where most complaints are made), Toyota failed to implement strategies that go in line with the western culture.
Where the Japanese business scene is considered reactive to problems, western business culture expects a more proactive approach in handling complaints and problems. Asian and western behaviors must also be considered for customers in the US are far different than those in Asian countries.
American and European customers complain over the slightest detail in every commodity they buy because they want to get the best of what they have paid for as compared to customers in Asia who are submissive in nature. Decisions and actions made by Toyota were based on the awareness of such limitations.
According to the bound rational model, humans divide or factor problems into small pieces and deal with them one by one due to the complexity of real life. This can be seen on how the management team dealt with Toyotas faulty car systems and accessories. At first Toyota warned its customers about the faulty floor mats which disrupt drivers when the car accelerates and becomes out of control.
The breaks may not have any good use during such time thus accidents may occur. Then Toyotas system engine was the culprit for accidents thus the management team slowly focused on such claim and tried to make decisions to resolve such issue. Lastly the faulty pedals due to manufacturing defects were pointed out as the source of the problem; again the management team discussed and analyzed such claim.
Problems were solely evaluated one by one proving that decision makers of Toyota indeed factor or divide problems and deal with them one by one. Another characteristic of Toyotas decision makers is they settle for what is good enough thus problems occur consistently because they do not think through the alternatives and other consequences.
When complete information cannot be obtained, human decision makers seek a course of action that is good enough rather than maximizing utility. When complaints were made about the faulty floor mats Toyota could have taken action not limited to the issue of the floor mats but could have also checked other parts of the cars which may have caused accidents.
The management team only focused on solving the floor mat problem and did not look through beyond such thus problems arose continually. Alternatives can be generated sequentially but the search was aborted once the first good enough alternative was identified.
The management team of Toyota also avoided uncertainty thus they would always provide short term feedback which sought to enable change with any emerging outcomes. As observed with the management teams pattern of decision making the team only addressed problems which are already publicly declared. When problems are still small they do not seem to pay much attention to them.
In relation to all of Toyotas stakeholders featured in the case study, Toyota acted unethically with great caution that is why actions were always delayed. From a relativism point of view where what is right is determined by the culture, Toyota may have had a hard time adjusting to the western culture and needs as the CEO was still of Asian descent who is used to the ways of the Asian world.
The customers in the west expected that actions be taken right away and as the Toyota management team slowly made decisions and came up with solutions, the management team limited themselves with that is within the given scope and did not expand because of the fear of uncertainty.
In the relativism point of view the moral and ethical choice is determined when the social group to which one belongs approves of the decisions made. In this case Toyota was waiting for the approval of the western culture before it implemented their actions. At the same time the egoist theory also applies to the said situation. This theory is often seen as the core to business where executives act from prudence.
It represents the choice of expending which promotes self over any other. Toyota wanted to gain more profit and market share thus their decisions were delayed as they wish to get away with manufacturing defects and make sales thus resulting to lives lost and many injured.
This theory explains human conduct thus the goal is to gain more whether the gain would mean lost to the other party but empirical evidence supports that there would be occasions of non-egoistical behaviors. This can be seen in Toyotas action to comply with court judges as to the recall and improvement of their cars.
Also Toyota issued apology letters to families and paid compensations for damages. Though such conduct is self-serving because Toyota is motivated by self-interest and they benefit in the long run by winning over a new set of customers or retaining the old affected ones.
Operations management deals with all the aspects of goods and services production. Operations management involves supervision, design and if necessary redesigning of business processes with the sole aim of achieving efficiency with minimal resources while meeting the requirements of customers.
Management and direction of a firm or organizations physical functions forms the core concern of operations management (Greasley, 2009, p. 47). Though operations management is wide and includes fields such as equipment maintenance, industrial relations and systems analysis, this discussion will focus on processes related to manufacturing and production systems in a particular industry (Stevenson, 2008, p. 56).
Operations management has increasingly become a critical component in corporate world today. Increased consumer awareness thanks to education coupled by stiff competition has led to major corporations implementing exceptional management systems to ensure maintainace of the market share.
Outstanding performance on a global scale entails heavy investment in both labour and capital-intensive systems in order to maintain relevancy. This analysis will focus on various aspects of operations management and production at Toyota, a leading Japanese car manufacturer with a considerable share in the global auto industry.
The analysis will especially lay emphasis on a brief overview of the company, a somewhat detailed description of Toyota s operations management system, an evaluation on the use of teams in its production and operations management and a brief evaluation of the companys ability to deal with a major crisis.
Toyota Motor Corporation
Toyota Motor Corporation is a multinational car maker with headquarters in Aichi Japan and, also the largest automaker in terms of production. In 2010, Toyota employed slightly over 317, 700 people worldwide. In 2010, the Organization of Motor Vehicle Manufacturers (OICA) ranked Toyota a head of General Motors and Volkswagen, in car sales.
According to the OICA, Toyota sold 8.55 million units representing a market share of 11% while GM came second with 8.4 million units representing 10.9% (Jones & Edward, 2010, p. 35). In 2006, Toyota became the most profitable vehicle manufacturer with $ 11 billion in profits. In the year 2011, Toyota recorded an operating income of $5.2 billion and a profit of $5.07 billion.
Total equity in the same year totaled $128.30 billion with the total assets topping $370.3 billion. From its humble beginnings as department of Toyota Industries, Toyota has grown to become one of the leading brands in vehicle manufacturing and, in the business world. In 2005 Toyota emerged eighth leading world company.
Toyota today has numerous manufacturing plants and dealerships distributed throughout Asia, North America, Europe and Africa. The Daihatsu subsidiary of Toyota has been crucial in establishing a foothold in Asia while the company has struggled to effectively compete in the European market.
Though it faced fierce competition in North America from American auto manufacturers, the effects of the financial crisis on American auto companies have led to a significant rise in the Toyota market share in North America (Jones & Edward, 2010, p. 25).
Toyotas production or operations management system
Many analysts agree that Toyotas Production System (TPS) has been the main catalysis fueling the phenomenal growth associated with the company. Experts credited TPS for Toyota solid performance during the oil embargo crisis in the 1970s (Monden, 2011, p. 89).
According to the MIT, efficiency of TPS was so high that compared to traditional mass production to an extent that it helped in introduction of a new paradigm lean production . Toyota designed TPS with the aim of providing the best quality products at the lowest cost and shortest time. Realization of the above is through elimination of waste.
Two pillars make up TPS i.e. Just in Time and Jidoka (automation). Maintainace and improvement of TPS is possible through standardized work and continuous improvement (Kaizen) through the use of Plan Do-Check-Act (PDCA cycle) method (Monden, 2011, p. 102).
It is important to note that through TPS, Toyota has been able to produce cars through the Lean system whose principle belief is that it is wasteful to use resources for any other goal other than creation of customer value. Toyota production and/ or operations management therefore considers anything that does not meet the above principle wasteful hence a target for elimination.
According to TPS value is anything that a customer will be willing to pay for. In a nutshell, TPS translates to a Lean system that emphasizes preserving value with less work effectively a production approach credited with helping Toyota to become the worlds leading car maker (Monden, 2011, p. 104). Currently, Toyota has in place another system it refers to as the Toyota Way which is more or less improvement of TPS.
The illustration below helps put TPS into context.
Figure 1: The TPS system used by Toyota
Use of teams in production and operations management at Toyota
The success experienced at Toyota could not be possible without widespread employment of the teamwork ethic.
According to Liker (2004, p. 1), success of Toyota is largely due to its ability to develop leaders and create teams as well as a supportive culture with suppliers and customers. The Kaizen part of TPS that empathizes on continuous improvement is mainly composed of teams keen on delivering value through the TPS operations management system.
According to Liker (2004, p. 6) Toyota under the TPS operation management system organizes teams from the start to finish of projects. For instance, the design of the brake system is normally responsibility of a single team throughout the design phase to the end of the production system. Enrichment and empowerment of employees is always the goal in the teamwork approach through TPS.
The logic behind it is that challenging but attainable goals and determination of progress towards the achievement of these goals motivate people. TPS mechanisms therefore always make sure that teams are always updated on their progress and on what they should do to reach their targets. Liker further says that under TPS, team members have four tools that they use in designing quality products.
They include: Go and see, analyze the situation, Use one-piece flow and andon to surface problems, Ask Why? five times (2004, p. 11). Through TPS, Toyota has taken specific steps meant to help in building high performance teams in the production process. The steps include orientation, dissatisfaction, integration and production.
Toyotas ability to adjust to a major crisis
Despite the quality and efficiency delivered by operation management systems like TPS, it is impossible to predict or avert crisis. In the world today, many crises ranging from economic, environmental, or natural have become common.
Besides terrorism the ever looming threat from terrorism and the 2008 shocks from economic cycles for instance the 2008 financial crisis, natural disasters have hit businesses in recent times with devastating effects (Penuel et al., 2010, p. 298). Judging from the response to such crises so far has been very wanting.
For instance, the recent earthquake and tsunami in Japan affected the manufacturing industry including Toyota leading to a rise in the prices of Japanese cars worldwide.
The preparedness of Toyota has however not been tested given that its plants only suffered minor damages in the disaster. However, safe for the quake specific designs characteristic of most Japanese buildings, there is no evidence of any preparation by Toyota to mitigate calamity of the magnitude described above.
Conclusion
There are as many operation systems as there are business entities. At the same time, it is not easy to determine which one is best suited to deliver desired corporate results. However, the Toyota case study has proven that TPS has constantly delivered at Toyota. In fact many companies have tried to implement TPS with the hope of replicating the success experienced by Toyota.
However, few have equaled the Toyota level of success. The TPS system discussed above, the resultant lean system and the most recent Toyota way are operation systems that have finer components linked together whose understanding may need detailed elaboration.
The most dominant principles however, include avoidance of wastefulness, delivery of value to the customer and customer satisfaction. TPS achieves the above through consistent teamwork and emphasis on continuous improvement as the Kaizan principle dictates.
There is a need however for further research in ways to through operations management systems, in this case TPS can help in mitigating the effects of a disaster. During the Tsunami disaster for instance, Toyota announced the closure of a number of North American plans apparently owing to the effects of the disaster. Such an action is a clear indication of the vulnerability such corporations in face of such events.
References
Greasley, A. (2009). Operations Management. New York: Routledge.
Jones, M. & Edward, R. (2010). Toyota Motor Corporation: Japans Industrial Treasure. Chicago: FastBook Publishing.
Liker, J. (2004). The Toyota Way. New York: McGraw Hill.
Monden, Y. (2011). Toyota Production System: An Integrated Approach to Just-in-time. London: Taylor and Francis.
Penuel, B.K. et al. (2010). Encyclopedia of Disaster Relief. New York: Routledge.
Stevenson, W. (2008). Operations Management. New York: McGraw-Hill Irwin.
Toyota Motor Corporation Australia Ltd. is the dominating company which operates within the automobile industry of Australia and over the world.
Toyota Motor Corporation produces vehicles which meet the customers expectations in relation to their quality and effect on the environments (Toyota Sustainability Report 2012).
Thus, Toyota Motor Corporation focuses on the development of specific strategies regarding the corporate social responsibility (Toyota Sustainability Report 2010). The company focuses on principles of sustainability and aims to respond to the global needs of the environmental protection using the innovative technologies.
The project of implementing the new water cycling technology at the companys plant in Altona, Victoria, Australia, provides a lot of benefits for developing the firms image within the industry as the successful company which follows the ideas of sustainability and implements projects to reduce using water resources and pollution.
Water cycling technologies are used within the industry and associated spheres by such companies as Mitsubishi (Japan) and Magic Hand Car Wash (Australia) (Magic Hand Car Wash 2012; Mitsubishi Electric: a practical water recycling solution 2013).
Implementing the water cycling technology in Altona following the experience of Mitsubishi, Toyota Motor Corporation aims to become the leader company within the Australian automobile industry which uses the effective recycling technology basing on the implementation of the microfiltration system, several reverse osmosis systems, and the industrial storage tank (Commercial water tanks 2013; Reverse Osmosis Unit 2010).
This fact can contribute to increasing the companys competitive advantage and profits.
The focus on the non-waste process is effective for the companys progress and developing the notion of sustainability.
355,611 kL of water used at the Altona plant during 2011/2012 can be saved with the help of the new technology (Dissolved metals removal from wastewater 2011; Toyota Australia Sustainability Report 2012).
The 100% reuse of the water resources is the main goal of Toyota Motor Corporation in Australia. The companys profits will increase basing on the expense reduction and usage of cycling technologies.
Project Definition
Nature of Project
The project planned to be implemented at the Altona plant is based on the usage of the water cycling technology which provides the 100% reuse of the water resources necessary for the production process with references to using the specific microfiltration system, several reverse osmosis systems, and the industrial storage tank.
The water cycling technology guarantees the usage of all recycling water to reduce costs and resources. The stages of the project implementation include the development of the plan, training of employees, construction of the system, and the shift to the new system.
Project Aim
The main aim of the project is to contribute to the corporate social responsibility and environmental sustainability implementing the recycling process and gain profits with references to reducing expense and resources.
Relating to the corporate social responsibility, the implementation of the new technology provides many people with the workplaces. Relating to the concept of sustainability, the water cycling technology can decrease the usage of water and environmental pollution.
Project Scope
The effectiveness of the projects implementation depends on the efficiently set time frames for the project. The implementation of all stages of the project involves twelve weeks with references to the engagement and training of the internal staff and constructing the necessary elements of the project.
Prerequisites and Assumptions
The implementation process is based on the planned interruption of the current technological process at the Altona plant. The effective implementation of the water cycling technology depends on following the worked out schedule strictly regarding the planning, assessment, implementation, training, and monitoring activities.
As a result, the introduction of the new water cycling system should lead to the complete usage of recycling water, to reducing costs, and creating the greener image of the company. There are some potential assumptions of the projects implementation (Toyota Sustainability Report 2012).
It is important to focus on preventing such problems as the absence of the water flow within the manufacturing section which can cause the cease of the process.
Project Objectives
Operational Objective
To decrease the amount of water used by the company for the production process by 50% for the period of 2013/2014, it is necessary to implement the water cycling system interrupting the current process of production within twelve weeks, and to provide the training for employees within ten weeks.
The effective implementation of the project is based on such activities as the development of a specific schedule, the work with the staff, the assessment of introduction aspects, the introduction of the technologys elements, the monitoring of the process, and the final shift to using the new technology.
The outputs of the process are the adequate introduction of the technologys elements, the usage of the correct techniques, the necessary testing of technologies, and the qualified training for the staff.
As a result, the implementation of the new water cycling system is successful and leads to saving costs and providing the companys green image.
Financial Objective
The financial objective of the project is to reduce the companys costs in 20% till the end of the 2013/2014 financial year with references to reducing the water usage in 50% providing the 100% water reuse with the help of the new cycling water system.
The achievement of this financial objective depends on finding additional suppliers, researching specific licenses and laws in order to complete the reports and achieve the increase in profits basing on reducing the expense.
The achievement of the increase in profits till the end of the 2013/2014 financial year can be discussed as the main expected financial outcome of the water cycling project implementation at the Altona plant.
Marketing Objective
The marketing objective of the Toyota Motor Corporation associated with the implementation of the new water cycling technology is based on the intention to increase the competitive advantage of the company within the industry referring to the sustainability and costs savings within the 2013/2014 financial year.
The focus on using the innovative water cycling technology provides the company with opportunities to support the leading positions within the market. The main activities which can lead to the achievement of the goal are the changes in the companys focuses and practices associated with using the new technology.
Corporate Social Responsibility Objective
The companys CSR objective is to decrease the negative impact on the environment with references to reducing the amount of water used for the production processes in 50% within the twelve months of the 2013/2014 financial year.
The activities connected with the process of the technology introduction will result in saving resources and reducing the pollution. Thus, the company will respond directly to the concept of sustainability in relation to the community and to the issue of environmental protection.
References
Commercial water tanks 2013. Web.
Dissolved metals removal from wastewater 2011. Web.
Magic Hand Car Wash 2012. Web.
Mitsubishi Electric: a practical water recycling solution 2013. Web.
Management in organizations is not only about job satisfaction and performance. Both the organization and employees have incorporated spirituality. Spirituality is integrated in its many aspects such as humility, love kindness trust fairness among many other values. Toyota Motor Corporation has been performing well in all aspects. Spirituality is adopted in the organization through humility. The satisfaction of employees and performance of the organization can be partly attributed to spirituality in the company. This paper examines the integration of spirituality in Toyota Motor Corporation through humility.
Spirituality
Spirituality is the ability of individual people to be connected with God. The aspect of spirituality is the spirit at work in an individual. Aspects of spirituality include humility, love, kindness and searching for truth as well as awareness. Higher purpose of an individual is an aspect of spirituality that usually leads people to guidance. According to Howard (2002, p. 232), spirituality is the ability of a person to be able to connect with ones self others and the entire universe. It is also the ability of individuals to express the various aspects of spirituality in their behaviors, and policies of their organizations. Kinjerski & Skrypnek (2004) note that although spirituality was initially based in religion, it is today applied in organization and work places and these applications are not connected with religion.
According to Freshman (1999), spirituality in organizations is thought to be an individual phenomenon that comprises of the efforts of individual employees or the efforts of the organization. When applied in the work place, Spirituality refers to efforts that try to integrate spirituality and work by the individual employee and the organization. Howard (2002) argues that the ability of the organization to enact spirituality is the result of the positive relationship that exists between the quest of individual employees for the spirit and the organizational environment. It is possible for employees to asses their own individual spirituality than the spirituality of others. The application of spirituality at the work place is used to connect the divine principle by setting the workplace and the work place process of work.
Spirituality is important in organizations. According to Mitroff & Denton (1999), organizations have five dimensions that are material, intellectual, emotional, volitional and spiritual. Spirituality is an inherent dimension in an organization (Achmos & Duchon, 2002). Spirituality can be implemented in organizations in various models. The models include the religion based, evolutionary model, recovering and value based model. Despite these models, the organization can also develop spirituality in four different steps. The management can begin by articulating the organizational spiritual values, delineation of business and employee plans and goals and employing the human resource management practices. Lastly, the organization will need to measure the outcomes in terms of the performance of the organization and the individual employee attitudes and spirituality.
Toyota Company profile
Toyota Motor Corporation is a multinational car manufacturing company that has its headquarters in Toyota Cho, City of Toyota in Japan. The company was established in 1937 by Kiichiro Toyoda the company manufactures vehicles and it some of its brands as Toyota Lexus, Scion, Daihatsu and Hino motors. The company has expanded worldwide and it has stakes in other companies. The branches of the company worldwide are approximately 522. Some of these branches are manufacturing plants. The company also deals with financial services and the financial services branch of the company lends money to borrowers (Toyota, 2010).
Toyota Company has established itself as a quality manufacturing company because its products are known to be of high quality. This trend has made the company to be the best company in the world for the manufacture of motor vehicles. However, the quality of the products of the company has been compromised of late and the company has been forced to recall more than 8 million vehicles because of the sticky brake pedal.
Humility in Toyota Corporation
Spirituality in Toyota Motor Corporation is depicted in many aspects. However, this study examined spirituality in the company in terms of humility. According to Mitroff & Denton (1999), humility is a recent topic to be talked of in management of organizations. Humility in Toyota Motor Corporation is measured in five components. The five components of humility include fairness, sincerity, open-mindedness, and respect for others and conceited or lack of arrogance. Using a preliminary survey, the data of the study provide the findings concerning the use of humility as a spirituality aspect in Toyota Motor Corporation (Scheid, n.d).
Employees in the organization depict sincerity especially when they indicate that the level of trust between them, the employees and the higher level of management in the company is high. Fairness indicates the presence of humility when the employees indicate that the leaders in the organization behave fairly and with integrity. Moreover, the management demonstrates compassion to all employees in the organization at all levels. Open mindedness as a component of humility in Toyota Corporation is indicted by the ability of the organization not only to seek the opinions of its employees, but also to act on the suggestions.
The lack of arrogance is indicated by the ability of employees to have authority to make decisions that pertain doing their work and their satisfaction with the recognition that they receive for excellent work performance. Additionally, lack of arrogance is indicated when employees are involved in decision-making. The managers in the organization depict humility since the employees reported that their bosses care about them individually and that they would make explanations of major decisions in the organization concerning the employees. All these components of humility in the corporation indicate the presence of humility hence the application of humility at the work place in the organization.
The application of spirituality through humility at the work place has impacts on the outcome of the organization. According to Scheid (n.d), the adoption of spirituality through humility at the work place can lead to creativity, honesty, trust and the personal fulfillment of employees in the organization. These outcomes will translate to job satisfaction by employees, motivation and therefore, improved employee and organizational performance.
Conclusion
Spirituality in the workplace refers specifically to the efforts by the organization to integrate spirituality in the workplace through individual employees and the organization. Many aspects including love kindness humility and trust among many others depict spirituality. Toyota Motor Corporation has adopted spirituality with humility as one of the major aspects of spirituality. Humility in the organization is indicated using the five components of humility such as lack of arrogance, sincerity, fairness, respect for others and open-mindedness. The adoption of spirituality in the organization is by both the individual employees in the organization and the organization. Spirituality in Toyota Motor Corporation has positive impact on the performance of the organization.
References
Achmos, D & Duchon, D. (2002). Spirituality at Work: Conceptualization and Measure. Journal of Management Enquiry, Vol. 9, pp. 134-145.
Freshman, B. (1999). An Exploratory Analysis of definitions and applications of spirituality in the workplace. Journal of Organizational change Management, Vol. 12. pp. 318-327.
Howard, S. (2002). Spiritual Perspective on Learning in the Workplace. Journal of Managerial Psychology. Vol. 17. pp. 230-242.
Kinjerski, V. & Skrypnek, B. (2004). Defining Sprit at Work: Finding Common Ground. Journal of organizational Change Management, Vol. 17. Pp. 26-42.
Mitroff, I. & Denton, E. (1999). A Study of Spirituality in the Workplace. Sloan Management Review. Vol. 40 pp. 83-92.
Scheid, K. (n.d). Humility: What is it, and how do employees perceive it? Web.
Toyota Motor Corporation is a multinational automotive manufacturing company with its headquarters in Toyota City in Japan. The company was founded in 1937 by Kiichiro Toyoda and incorporated in the same year. Toyota lists among the largest automobile manufacturers globally, with an average of 10 million vehicles annually (Britannica, 2021). Toyota Motor Corporation surpassed General Motors in 2008 for the first time to become a leading global automobile manufacturer. The company has approximately 1000 subsidiary companies and affiliates primarily involved in industrial vehicles, commercial vehicles, automobiles, and automobile parts production. Toyotas subsidiaries also manufacture automatic looms, steel, woolen products, rubber materials, cork products, synthetic resins, and cotton goods (Britannica, 2021). Additionally, the company has interests in real estate, importation and exportation of raw materials, and prefabricated housing units. Its assembly and distribution firms are established in many countries globally. Toyota is a visionary automotive company that relies on the skills of automotive service technicians to enhance its prosperity.
Toyotas global vision is to become a leading firm in the future mobility society, thereby enriching global lives through the most reliable and safest mobility techniques. Furthermore, the company aims to exceed customer expectations by committing to quality, true innovation, and planet care and preservation (Greenspan, 2020). It plans to achieve these visions by engaging talented and passionate people with similar visions of a better world. Toyotas mission statement is to make ever-better cars, to build a future where everyone has the freedom to move (Greenspan, 2020). The mission statement conglomerates the corporations official statements entailing its business mission, highlighting its enterprise, goals, and business purposes. Toyotas values include producing quality and world-class goods, obtaining complete as an ultimate goal, fostering teamwork spirituality, and inculcating honest, accurate, and ethical practices (Greenspan, 2020).
My selected position at Toyota Motor Corporation is Automotive Service Technician, often referred to as a service technician. Automotive service mechanics and technicians maintain, inspect, and repair light trucks and cars ( Automotive service technicians and mechanics, 2021). Their typical duties include automotive diagnosis, planning work procedures, testing vehicle systems, and parts, performing essential car maintenance and care, replacing worn-out parts, and performing repairs according to customer and manufacturer specifications. Automotive service technicians also assess checklists to ensure complete examinations and explain the problems or repairs to an automobile to clients ( Automotive service technicians and mechanics, 2021). The diagnoses are made mainly by computerized diagnostic equipment managed by the technicians. The service technicians access several power tools and automated diagnostic tools. The power tools include hoists, welding torches, pneumatic wrenches, jacks, and lathes. There are different automotive service technicians: drivability technicians, brake technicians, transmission rebuilders and technicians, automotive air-conditioning technicians, and front-end technicians.
An automotive service technician position fits into the organizational structure of auto industries, including Toyota, by applying several organizational skills. This occupation requires individuals to use their organizational and communication skills to supervise, coordinate, and train others while maintaining proper communication structures within the company hierarchy ( Automotive service technicians and mechanics, n.d.). Additionally, the position aligns with the corporations missions, visions, and values that highlight the companys commitment to quality products and services. This alignment is due to the occupations satisfaction with Toyotas work values such as independence, relationships, support, favorable working conditions, achievements, and recognition.
An automotive service technician position allows an employee to practice the companys work values. The occupation enables an employee to work and make their own decisions because it corresponds with the occupational needs such as responsibility, autonomy, and creativity ( Automotive service technicians and mechanics, n.d.). This position also depends on supportive management determined to explore an employees best qualities as highlighted by the company policies, human relations, and supervisions. Moreover, this occupation enables an employee to serve others and work with colleagues in a non-competitive and friendly environment, thus helping in enhancing Toyotas visions, mission, and values. A service technician is a result-oriented position that enables individuals to apply their best abilities, giving them a sense of accomplishment enhancing employee satisfaction. Employee satisfaction is essential for Toyotas quality assurance policies and objective of ensuring customer satisfaction ( Automotive service technicians and mechanics, n.d.). Similarly, this occupation satisfies work values that equip employees with leadership potentials besides offering advancement opportunities; hence it is considered prestigious. Toyota requires employees to apply their leadership skills in their workstations to advance. Therefore, an automotive service technician fits within Toyotas organizational structure.
The automotive service technician position is essential to Toyotas long-term objectives and visions. Toyota needs automotive technicians to achieve its vision of providing comfort and safety while being environmentally friendly since a service technicians knowledge allows for quick diagnosis and fixings ( The importance of having certified auto-technicians, n.d.) Automotive service technicians have a deep understanding of electronics, a level outside many engineers scopes, hence the need for technicians due to their practical electronics experience. Service technicians are also capable of diagnosing and servicing intricate electronic systems besides their mechanical skills in removing, repairing, and replacing faulty automotive components. These multi-skill abilities of service technicians are economical to Toyotas expenditure as it saves the corporation from high salaries burden. Additionally, the flexibility of automotive technicians can help Toyota overcome the challenges of skills inadequacy that would otherwise disrupt its business model (Dupuis et al., 2021). Automotive technicians are essential for achieving Toyotas customer satisfaction since they can be facets of customer service beyond their typical engine rebuilding and braking system maintenance.
Automotive service technicians are essential to Toyota as they enhance customer satisfaction and quality of services. These concepts, customer satisfaction, and quality service are crucial to Toyotas high competitive standards and operational productivity. Toyotas operational productivity depends on the customers judgments on the quality of services they experience (Aiyesehinde & Aigbavboa, 2020). Therefore, skilled automotive service technicians uphold the companys customer experience standards, hence promoting customer satisfaction and leading to positive reviews. Automotive service technicians are considered the cornerstone of any automotive companys success in meeting quality standards and marketing strategies.
Service technicians play a prominent role in Toyotas steps towards achieving its visions and upholding its global values and mission. Toyota envisions leading mobility reputation by aiming to enhance mobility safety and responsibility. The company, therefore, depends on automotive service technicians who can effectively maintain, inspect and service its automobiles. These technicians are relevant to Toyotas organizational structure because they have essential work values and organizational skills: independence, relationships, support, favorable working conditions, achievements, and recognition. These qualities promote institutional leadership development among the technicians besides enhancing employee and customer satisfaction, essential for Toyotas marketing strategies. The technicians help Toyota achieve its visions, mission, and global values of comfort, safety, and environmental preservation by facilitating the advancement of innovations towards hybrid and electric vehicles that are comfortable, safe, and environment friendly. Therefore, an automotive service technician is critical for improving the automotive industry, and all auto companies should adopt them.
References
Automotive service technicians and mechanics. (2021). U.S. Bureau of Labor Statistics. Web.
Dupuis, M., Murray, G., & Wu, M. (2021). Technological transformations and the automotive services industry: Meeting the skills challenges for automotive service technicians in Quebec. VOCEDplus, the international tertiary education and research database | education for work and beyond. Web.
Toyota is often cited as an example of JITs success. When an order is received, and the product is ready for production, Toyotas manufacturing approach is characterized by the fact that raw materials do not enter production (Reid, 2020). No components can be placed in a node unless they are part of an assembly for another node or are required by another node in some way. Toyota was able to minimize its expenditures by adhering to the idea of maintaining a small amount of inventory. As a result, Toyota is better able to respond to fluctuating demand without having to worry about disposing of costly inventory in the interim
Pull manufacturing, in contrast to push manufacturing, is a pull system that only supplies what each process needs when needed. Production and transportation take place throughout the entire production process. Just-in-time manufacturings key goals are to reduce warehouse space and unnecessary costs while also improving efficiency, including coordinating the delivery of components to individual workstations before they are physically needed (Reid, 2020). Orders can be placed based on the information provided by Kanban boards and by making predictions about how many parts will be needed in the future. Each automobile can be produced to order, and every component must fit perfectly because there are no substitutes because of the usage of JIT in Toyotas production method. If there are currently difficulties in manufacturing that need fixing, they cannot be hidden.
Regarding quality and product variability, Toyota focuses on TQM, but the company applies TQM to every aspect of its business. These are product design, profile development, engineering design and research and development assessment, production planning, product engineering, production manufacturing testing, inspections, sales and service product management, and market research and analysis. Quality is examined during the development phase based on an analysis of the planned performance and features to ensure that there are no structural or engineering faults. Toyotas approach to quality management has four main elements. Starting with the application of quality assurance and control procedures based on in-depth investigation and testing, the company (Reid, 2020). FMEA and FTA, among other methods, are beneficial through research and experience at Toyota. Quality circles and training are established, and the corporation conducts internal audits to ensure that its staff are actively involved in ensuring the quality of its products.
References
Reid, R. D. (2020). Operations Management: An Integrated Approach. Available from: Columbia Colleg (7th Edition ed.). NewYork : Wiley Global Education.
Toyota is the largest automobile manufacturer in the world. The main target market of the company is the middle class. The company has several brands that are popular due to their prices and quality. However, due to quality concerns, recalls of automobiles threaten to tarnish the image and reputation of the company.
This necessitated the company to develop an efficient crisis public relations strategy to prevent the tarnishing of its image. Crisis PR addresses the needs of the stakeholders and averts the looming problem.
The success of crisis PR was highly dependent on the ability of the company to address the needs of the stakeholders using proper communication channels. Failure to use efficient crisis PR would make other automobile manufacturers take advantage of the crisis in Toyota to develop strategies that would improve their competitiveness.
Stakeholder Needs
For an organization to respond effectively to a crisis, it should understand its image and reputation. In addition, the company must know the impact the crisis will have on its activities. Efficient crisis PR necessitates a company to address the specific needs of each stakeholder.
Efficient response to the crisis will enable the stakeholders to uphold the positive image, identity and reputation of the company (Seitel, 2011). In Toyotas case, the company had to address the needs of their customers and employees to prevent future occurrence of the problem.
Safety and comfort were the major quality concerns of the customers. Therefore, it was vital for the crisis PR to address these issues. Toyota developed the Collaborative Safety Research Center (CSRC). CSRC helped in improving the safety of cars and reducing the number of fatalities on North American roads.
CSRC pays special attention to certain vulnerable populations. These include children, teens and seniors (Toyota, 2012). CSRC has partnerships with various leading academic and research institutions. These partnerships help in developing projects that can improve the safety of Toyotas customers.
Partnerships and collaborations with leading academic and research institutions ensure customers that the company is seeking help from the best available sources. This would greatly improve the confidence that customers have in Toyotas products.
Currently, there are more than seven projects with the academic and research institutions that strive to improve automotive safety. CSRC has improved the customers perception of the company. It assured the customers that the company puts their interests at heart.
Social media is one of the most recent technological advances that companies striving to be market leaders should embrace. Companies may use social media for a variety of purposes. These include marketing and survey. Social media is a critical PR tool that companies may use to repair their image and reputation.
Toyota used social media as a PR tool for repairing its image and reputation. Toyotas customers in the US have direct access to the US CEO via Digg. This allowed the customers to pose questions to the CEO, which the CEO answered promptly (Buley & Elliott, 2010). Direct access to the US CEO showed that the company cared about the issues of the customers.
The crisis appeared due to the recall of millions of vehicles necessitated Toyota to address the concerns of their employees. The company incorporated all employees in addressing issues of quality regardless of their rank. The employees helped in addressing quality concerns of the companys products.
Toyota ensures that it trains employees on its production system. The Toyota production system leads to the production of high quality vehicles at a rapid rate. Toyota retrains employees who cannot complete their scheduled work in the production cycle.
The company had to address the quality concerns with employees since they were the source of the errors. Therefore, employees are the only people who may help in correcting the faults (Spears & Bowen, 1999). Employees have a clear understanding of the production system.
Therefore, Toyota addressed the concerns of its employees to ensure that it solved the crisis effectively and prevented future occurrences of the problem. Toyota employees provided clarification on the quality concerns regarding various automobiles.
This led to the development of a fast response to address the quality concerns. Toyota responded quickly to the quality concerns of its automobiles by recalling millions of automobiles.
Shortcomings and Recommendations
During the recall, Toyota requested its customers to return their vehicles. The company collaborated with dealers in collecting the vehicles. The company returned the vehicles to the manufacturing plants. This enabled the company to repair the defects in the vehicles.
However, the company delayed returning the vehicles to its customers by several weeks. This led to further complaints from the customers. Failure to return the vehicles in time exacerbated the problem that the company faced. It led to further damage of the image and reputation of the company.
Delays led to great losses to customers who depended on the vehicles for their daily operations. This necessitated the company to formulate strategies that would help in dealing with the problem created due to the delays. Therefore, the company should have handled this situation in a better manner.
Returning the vehicles to the customers promptly after the repairs would have reduced the damage of the image and reputation of the company.
Toyota had to repair its image due to the recalls. If Toyota produced high quality vehicles, it would have recalled the vehicles. Therefore, this case shows that Toyota should have ensured that its products are of high quality. This would have guaranteed the market leadership of the company.
Concept Plan
The concept plan provides an illustration of how Toyota handled the crisis due to the massive recall of vehicles using PR. The company targeted customers and employees to repair its image and reputation.
Conclusion
The massive recall of vehicles due to quality concerns threatened to damage the image and reputation of Toyota. This necessitated the company to use efficient crisis PR strategies to repair its image and reputation. The company had to address the needs of its major stakeholders.
These stakeholders included employees and customers. The company collaborated with employees in identifying how to address the quality concerns. In addition, the company provided support to customers to ensure that they maintain their trust in the companys vehicles.
Toyota used social media to address concerns of the customers. Customers could pose questions to the US CEO directly via Digg (Buley & Elliott, 2010). Direct access to the most senior executive of the company made customers feel that the company had their issues at heart.
One of the major shortcomings of the company is the fact that it delayed in returning the vehicles to its customers. This aggravated customers discontent. Toyotas case is a clear illustration of how companies may use PR to repair their damaged image and reputation.
The Nadler & Tushmans model is a model that is used to analyze an organization in terms of its inputs, outputs as well as throughputs. This model was developed with consistency to the open systems theory. Nadler & Tushmans model was developed in such a way that it gives more specific details, thus it is more favourable in analyzing an organization compared to the open system theory.
The model was developed in the 1980s by two men namely, M. L. Tushman and David A. Nadler. This model gives specifications on the critical inputs required by an organization, the critical outputs, as well as any transformational processes that may be required and that characterize the running of an organization (Nadler and Tushman 37).
The principle under which this model was developed states that the performance of an organization is determined by four elements. The four elements are: culture, people, structure, and task. The four elements need to be compatible with each other to ensure better organizational performance. When the compatibility is high, the performance of the organization is also greater.
Source: Mind Tools Ltd (para. 6)
This model emphasizes more on the transformational processes that have the ability to improve the performance of an organization. Change is very critical for any organization, especially in the current business environment. Competition has been at the highest level more than any other time in the past.
These act as stimuli to initiate changes in the way organizations do their businesses. For the best change to be implemented, it is important to first understand the critical organizational inputs and the critical outputs. It is important to note that the critical inputs and outputs determine the performance of the organization. Once the organization has the right inputs, it is more likely to have better outputs and register better performance.
When analyzing an organization using the Nadler & Tushmans congruence model it is important to consider the key individuals who are involved in running the organization, the components of the environment, the strategies that the organization follows, as well as both formal and informal systems. These determine the output of an organization. This essay will analyze Toyota using the Nadler & Tushmans congruence model.
The Environment
Each organization exists and operates in an environment. There are both internal and external environments that influence the performance of an organization. While the managers and leaders of an organization have the ability to control the internal environment, the external environment is beyond their control despite the fact that it also has major impacts on the organizational performance.
Among the factors that impact the running of an organization and that are external include institutions, groups, events, as well as individuals. Legal aspects, economic and social factors also make up the external environment. It is important to note that customers also play a key role in the external environment of any business organization. If the customers are few, then the organization is likely to have a poor overall performance.
Therefore, it is the responsibility of the managers and leaders to ensure that they put in place strategies that have the ability to attract a large number of customers to increase the level of sales and income simultaneously (Nadler and Tushman 40).One of the ways to assess the performance of an organization is its profitability. Other environmental factors that should also be considered include, but are not limited to technology, competitors and labour unions.
Toyota is a motor vehicle producing company that is based in Japan. The company was founded by a man known as Kiichiro Toyoda in the year 1937. Toyota is among the largest companies in the world, ranking 11th in terms of revenue. Toyota ranks third, after General Motors (GM) and Volkswagen Group (Toyota Motor Sales para 1).
The companys performance is influenced by a number of environmental factors, both internal and external. For instance, there is a lot of competition in the automobile industry in the world today. Companies that deal in automobiles are emerging at a high rate, while the existing ones are continually coming up with ways of improving their business. Competitors have the ability to impact the performance of the organization. When the competition is very high, the performance of Toyota is likely to go down and vice versa.
Competition might call for implementation of a transformation process in order to maintain the performance. Toyota is a multinational company, thus it has many competitors and it should be on toes strategizing how to deal with the competition. Among the competitors include General Motors, Ford, Volkswagen, KIA, Chrysler, Honda, Daimler and Mercedes. It is important to note that the competitors could either be a group of subsidiaries or individual companies.
Events that happen outside the company are also likely to affect its performance and the desired outcomes. Events such as promotions from competitors are likely to pull customers away and negatively affect the performance. There are other risky events that are likely to affect the companys business.
For instance, the earthquake that happened in Japan in the year 2011 had significant effects on the general companys economy. This earthquake contributed to the suspension of operations by Toyota as a result of the damages that it caused to the countrys infrastructure, transport systems and energy supply. The tsunami and the nuclear power plant accidents, among other events, are also likely to affect Toyotas business. Such events are not predictable, yet they have very significant effects on any business organization.
Economic and social environments also have the ability to affect the ability to affect the business of Toyota. The economic environment affects the business in a way, whether the economic environment is favourable or unfavourable. Toyota is affected by both the economic situation in its home country Japan and in the international market.
Among the factors that affect the economy include taxation rules, trends in the international trade and markets, the disposable income of the citizens, as well as the market forces of demand and supply. The exchange rates and inflation rates also affect Toyotas business since they influence its income (Muller 54).
The world has been in a state of economic growth slowdown over the last couple of years. Toyota is among the companies that pillar the worlds economy. Therefore, its performance highly influences other industries such as the steel business, plastic industry, as well as the glass industry. The slow growth of the economy affected the Toyota business and the related industries.
This led to changes in HR policies of Toyota in order to cope up with the economic situation. Among the policy changes that were implemented include recruitment policies where the company started recruiting staffs that have the ability to help it perform well in such economic situations, layoffs due to difficulties in paying too many personnel owing to the reduced income earned, and relocation of staffs among other changes.
Technological factors are also part of an organizations environment. There has been rapid technological development that has emerged over the last few decades. This has facilitated innovation in industries and companies. Technological development has a significant effect on the transformation process of an organization.
Toyota has made huge investments in technology. This has been a key factor that has contributed to the companys global success. The company has always pioneered technology in the automobile industry. Toyota is known for its dedication in technology, having been associated with numerous innovation initiatives, funding research projects, as well as initiating replacement mechanisms.
The technology trends that go on in other companies that deal in automobiles have the ability to impact the transformation process of Toyota (Muller 55). For instance, competitors are likely to take competitive advantage over Toyota if they come up with a new innovative strategy. As a consequence, Toyota will lose some of its customers and revenues. For it to avoid such losses, Toyota will have to develop a transformation strategy that will help it maintain its position in the market, or even better its current position.
Companies should implement transformational strategies that will help them cope with the fast hanging technological environment. Toyota might be required to implement some HR policy changes in order to deal with the technological changes. The management will be required to hire people who have the ability to transform the organization in a manner that the company will keep up with the trends in technology.
Strategy
As mentioned earlier in this article, Toyota is one of the largest companies in the world in terms of revenue and size. Toyota has been able to penetrate most markets globally. It is never easy for a multinational organization to make it in the international market, especially if it does not have a good strategy. The success of Toyota in the international market is an indication that the company has a good strategy that has helped in boosting its business and markets its products.
It is worth noting that the strategies that a multinational organization applies in its business vary from country to country since each of the countries in which it operates has its own culture and needs. Therefore, the organizational success in the global market will highly depend on the companys ability to lay out the best strategy in each of the various countries in which it operates.
This calls for leaders and managers who are highly knowledgeable and skilful. Toyota Motor Corporation has able leaders who have been able to align its strategy with its business objectives. Toyotas goal is to pursue a harmonious growth and ensure that its profitability grows consistently. All strategies are developed to address the companys goal, while all employees as well as managers pursue their duties in line with the achievement of this objective.
The mission statement of an organization is important in developing its strategy. Any strategy that is put in place should be guided by the companys mission statement (Nadler and Tushman 40).
The mission statement for Toyota is to develop and provide innovative, safe and outstanding high quality products and services that meet a wide variety of customers demands to enrich the lives of people around the world (Toyota Motor Sales para 1). Therefore, the strategies that the company develops should embrace innovation and ensure that the products are of high quality.
Every customer wishes to get the best value for the money they pay. In order for Toyota to maximize consumer satisfaction, it has to come up with strategies on how to produce products that are innovative and of high quality. Cost is crucial; therefore, the strategies developed try to minimize cost as much as possible. Consumer satisfaction is higher when customers get the best quality at relatively low price.
Toyota came up with a principle that is popularly known as the Toyota way that was aimed at making the values and beliefs of the company clear of all employees. All employees are supposed to act in a manner that they embrace these values that are also the principles that guide Toyota. Knowledge is vital for innovation to take place. As a result, Toyota employees knowledgeable personnel as one of its strategies to ensure that it produces high quality goods that are innovative and that maximize consumer satisfaction.
The Toyota Motors Corporation prioritizes North America and then Japan at second, although recently China has become one of the top priorities in developing Toyotas global strategy. China is considered not to be a very mature automobile market, but it is starting to thrive.
Toyota has come up with a three stage strategy that it will use to penetrate the China market. The first step will be to establish a network of sales in China and promote its brands. This is a strategy that is aimed at making the potential customers aware of Toyota brand and its products. Customers are known to buy most products that they are aware of.
Therefore, establishing sales networks and promotion will be important in making the brand known to locals. The next step would be to establish bases where the company will manufacture auto parts. This will help in reducing the costs of operation and ensuring effective supply chains. An effective supply chain gives the company competitive advantage and enhances marketing (Muller 57).
The third and final strategy that the company is to apply in China is to form joint ventures with the local companies that deal in automobile production. This will enable Toyota to market itself easily. It will also reduce the cost that will be spent for marketing the company. It is easier for Toyota to win the loyalty of Chinese customers by forming joint ventures with local organizations.
One of the general strategies that Toyota applies in its business is that it has a management system that is involved in making marketing and other decisions. The management system is also aimed at ensuring that the companys operations run as expected to facilitate the achievement of its goals and objectives. Leadership is crucial in the success of any organization. Leaders facilitate transformational processes, as well as any other change that can improve the performance of an organization.
Toyotas use of a management system that facilitates its decision making processes is a strategy that helps it improve on its performance and facilitates transformational process (Muller 54). Good decision making is an input that can positively impact an organization. The output of good decisions will be success. The other strategy that the company applies is that it has a system that establishes a problem solving platform that gives the best solution to problems that are likely to affect its business.
This system also develops measures to prevent any problem that is likely to affect the companys business. When a problem is detected, it is flagged to the relevant department or individuals for a solution to be found. The departments come with the best solution to the problem. This keeps the Toyota Motor Corporation in the competition.
Tasks
This refers to the various duties that the organization and its parts are required to perform in order to facilitate transformational process and the success of the organization. An organization is made up different parts, each of which has its own rules that it is supposed to execute. Proper execution of tasks will lead to success of the organization, while poor task performance will negatively impact transformational processes.
Tasks are aimed at continually improving the organization in general and improving the quality, as well. It is important to ensure that each individual is assigned the task he or she can best perform in order to execute tasks accordingly (Nadler and Tushman 40). The issues of division of labour and specialization best apply here. Labour duties are divided according to specialization of different employees, departments and parts of an organization.
Toyota Motor Corporation is a company that has various operational parts, all of which are aimed at achieving the same objective. The objective is to constantly ensure growth of the company and consistent increase in profitability. Automobile manufacture is an industry that has to coordinate the various parts for its success.
For instance, different parts of a vehicle are manufactured differently and then assembled to make up the moving vehicle. Once the vehicle is completed, it has to go through the supply chain and then to the marketing department. All these departments are expected to perform their tasks with a similar objective (Toyota Motor Sales para 2).
In performing their tasks, employees of Toyota Motor Corporation are guided by the principle of: The Toyota Way . Each employee is aware of the tasks that they are supposed to play in order to ensure that they adhere to this guiding principle (Muller 53). Employees are made to understand the values and beliefs of the company.
They are, therefore, expected to embrace these beliefs in performing their duties. It is imperative to note that all tasks at Toyota are standardized under this principle. Every member of the organization is aware of the duties they are supposed to carry out, in spite of the country in which they operate. As a result, an engineer of the Toyota Company, for example, will find identical processes in whichever company he or she walks in throughout the world.
The company produces products that are of similar design, in additional to the similar processes. The manufacturing equipment that is used is also similar. It can, therefore, be said that this principle influences the transformational processes of the company. It is an important part of the organizational input. The tasks that are performed under the principle are the inputs that have made Toyota what it is today. It is because of these tasks that the company has become among the best in the world.
Formal systems
These refer to the structures, as well as the methods and processes that an organization uses in order to ensure that each department and each individual performs their duties accordingly in order to achieve the required goals (Nadler and Tushman 40). The strategies are usually written down, and each employee and member organization is aware of what they are supposed to do.
There is a formal structure that everyone is expected to understand at Toyota. The employees follow the structure in performing their duties. The structure determines the tasks that each individual is supposed to carry out. In addition, the formal system defines the way each objective should be achieved.
The key individuals
People form a very important part of an organization. The success of an organization depends on the key individuals and their knowledge and ability to produce results. Work has to be done for an organization to succeed and it is the people who do that work (Nadler and Tushman 45). Therefore, there is no work that can be done without the people and no success for the organization can be achieved. At the same, time no transformational process can take place.
There are some activities that are critical to the organization and which have major effects on its performance. One should know the type of people who performs such tasks. In addition, it is important to ensure that such critical tasks are performed by people who have the right skills and knowledge. For instance, decision making is a very major task for any organization. A wrong decision will have devastating results for the organization, while a good decision will deliver the required output.
Therefore, decision makers should be able people who will reduce or eradicate the risks associated with decisions through making the right decisions. One should first know the people who they interact with when evaluating the people in an organization in order to perform a certain task. Then it is important to know the skills possessed by the different personnel. Demographics and employee preferences are also an important factor to consider (Mind Tools Ltd para 10).
People are the key to the organizational success at Toyota. Innovation is vital in the automobile industry, and only the people can guarantee innovation. Employees at Toyota operate in an environment where they come across a lot of challenges (Muller 53). The employees are required to constantly develop new ideas to make the organization better each day. The company believes that the employees hold the key to its success and they are considered as key individuals.
Employees are not viewed as just hands for doing the jobs, but they are viewed as sources of knowledge and wisdom. As a result, Toyota invests heavily in people. The key leaders who are responsible for the running of the company are: the president, the vice president, the chairman, and the board members, as well as various managers and directors. All these people together with the rest of the employees have to interact to produce Toyotas output. This is what facilitates the companys success.
Issues that the organization should address
Toyota ranks as one of the best companies in the world in terms of performance. The company has been able to address most of the issues that might hinder its success. The company has able leaders and employees who constantly come up with innovative ideas that have kept the company going for a long time.
However, there is one issue that needs to be addressed to maintain the companys competitiveness. The automobile industry is very competitive with different companies, all striving to get a large share of the market. This is an issue that Toyota needs to focus on since it might lead to loss of customers to competitors.
The issue of competition holds a significant impact on the companys success. Technology is increasingly becoming important for the competitiveness of automobile companies. It is important to note that other companies are working tirelessly to improve their technology and become the best, despite the fact that Toyota is a leader in technology and innovation. Toyota should, therefore, step up its innovation in order not to lose its competitive advantage.
Aspects that have difficulty understanding
Toyota is a multinational company with operations in different countries across the world. Managing a multinational is one of the most challenging tasks since the company has to operate in different culture.
In spite of this, the company is still expected to produce results. Different cultures have different preferences and different buying behaviors. Therefore, it was difficult to understand how vastly Toyota manages to implement its principle of The Toyota Way in all the nations where it operates, despite these destinations having different cultures.
This principle gives a standardized way of performing tasks in all Toyota companies across the world. One might need to access the company physically to conduct an interview to help in this analysis. Alternatively, accessing the finest details in the company website might also be helpful, although it is not easy to get all the details through this method.
Muller, Christoph. Case Study and Comparative Strategic Analysis of Toyota and Ryanair: The Key Differences in the Operations Strategy of Manufacturers and Service Firms in Terms of Process Design, Supply Chain, Human Resources, Capacity, Innovation and Quality Management. Munchen: GRIN Verlag GmbH, 2011. Print.
Nadler, David and Tushman Michael. A Model for Diagnosing Organizational Behavior. Organizational Dynamics 1980. 9 (2), 35-51. Print.
The evolving nature of domestic and international markets has a great impact on business operations. Currently, e-commerce and m-commerce are gaining momentum, so that marketing specialists need to adjust their strategies, including those related to the distribution channels. Toyota, a Japanese car manufacturer, is one of the giants in the automotive industry. Research of its strategies will help to analyze the companys success and failures, depending on which conclusions regarding the optimal marketing channel would be outlined.
The competition in the automotive industry is high, so that Toyota needs to design unique marketing strategies in order to outperform its rivals. Manufacturers are often forced to attract customers by cutting prices and offering discounts (Li, 2018). There is an additional obstacle in this sphere due to a limited number of distribution channels available. Furthermore, its variety depends on the country of interest along with psychological, social, and economic determinants that influence the buying behavior of its residents (Hoque, Faruque, Shahid, Pasha, & Rahman, 2013).
It is necessary to understand and consider demographic factors in order to reach the target audience. As Toyota acknowledges this, it still prefers to rely on the dealership network. Thus, the development of marketing channels is done under the governance of local dealerships.
There is a variety of marketing channels, but the one-level pattern is prevailing in the automotive industry. According to the agency theory, one entity, Toyota, in this case, delegates responsibility for action to another entity, local dealerships, for instance (Watson, Worm, Palmatier, & Ganesan, 2015). Nonetheless, both parties operate by taking their own interests and risks into consideration. Subsequently, the development of marketing channels for the distribution of Toyota products could vary in different countries.
Toyota has created a huge sales network all over the world and cooperates with local dealers in order to make its products truly acceptable for the customers in a certain region (Li, 2018). That is why factories and plants are sometimes established outside of Japan. The other reasons constitute global migration of labor, supply chain management, and response to crises such as natural disasters because several years ago, the companys plants were damaged, which resulted in delays in manufacturing and distribution.
Apparently, each local dealership opts for the most appealing marketing strategies to promote Toyota products. The operational activities of each dealer are divided into three stages: selling, service, and maintaining (Li, 2018). Selling is associated with traditional channels, including print and outdoor advertisement, along with TV and internet media, mainly YouTube. Nevertheless, simply selling products is not sufficient nowadays, while retaining customers is in priority (Hoque et al., 2013).
Thus, the interaction with the customers is not over after purchase but continues during the service and maintenance stages. Toyota has managed to create brand loyalty by providing technical support to its consumers in almost every dealership (Hoque et al., 2013). It means that the evolvement of the marketing channel goes far beyond its traditional perception and understanding. In the twenty-first century, the companies that sell items of high value should be targeted not only at promotion and sale but care about customer experiences which highly depend on the initial quality of the product.
Similar to other companies in the automotive industry, Toyota relies on the development of marketing channels of the first level where retails are local dealerships. Such a scheme allows adopting its products according to the needs of local customers. Furthermore, the philosophy of the company and local dealers goes far beyond advertising and distribution because they care about customer retention. Thus, service and maintenance ensure technical support to the already purchased cars, creating high value for consumers and strengthening brand loyalty.
References
Hoque, I., Faruque, O., Shahid, E. M., Pasha, S., & Rahman, S. O. (2013). Analysis of Toyotas marketing strategy in the UK market. European Journal of Business and Management, 5(20), 226-231.
Li, Z. (2018). Business network positioning analysis of Toyota. American Journal of Industrial and Business Management, 8, 1693-1699.
Watson, G. F., Worm, S., Palmatier, R. W., & Ganesan, S. (2015). The evolution of marketing channels: Trends and research directions. Journal of Retailing, 91(4), 546-568.
According to the case study, Toyota Prius has dominated the United States market yet its introduction to the market was later than other vehicles. It is paradoxical that a small hybrid sluggish vehicle not only hit the America market where SUVs dominated the roads for several years but also turn out to be the most selling. The many reasons that led to the success of the Prius need an analysis hence this paper will discuss the macro environmental factors that have affected the marketing of Prius as well as hybrid marketing strategies.
Macro environmental factors affecting the marketing of Toyota
Demographic
Demographic factors involve the human population in terms of the size, density, gender, occupation, race and age (Cirpicki, Malcolm, & Byron, 2008). It is an important factor because it is concerned with people who make up the market and besides, it is constantly changing.
For instance, the population is growing at an alarming rate, ethnicity and racial diversity is increasing and many people are well educated. As the population grows swiftly, the demand for vehicles increases and the buyers are likely to make a scrutiny of an automobile before procuring it.
This analysis involves improvement in the automobile in terms of the carriage capacity, attractiveness and even durability. As a result, Toyota focused on the group of people fascinated by the sophisticated technology of the Prius and who are willing to try it.
The more educated the people are, the greater their concern about the environment (Qahtani & Messahel, 2010) thus Toyota targeted the customers who were conscious about the environment. It achieved this by introducing a Prius that uses electricity and gas thus decrease in environmental pollution. Besides, the automobile does not make noise therefore decrease in noise pollution.
Economic
This factor affect the buying habits of the consumers and the income earned together with the market value influences it (Crano, Skenderian, & Alvaro, 2008). The skew of the income distribution in the US is upper, middle, working and under class therefore, marketers need to monitor the economic changes cautiously so that the trend helps them to prosper and not to suffer (Crano, Skenderian, & Alvaro, 2008).
The vehicle industry has been reacting to these economic changes accordingly. For example, the stiff competition forced the Toyota to make enhancement that are economic sensitive on the Prius. As a result, it launched the second generation that runs on gas, electricity, regenerated energy or both. This saves on the fuel cost thus making Prius a preference of many buyers.
Natural
This factor entails use of resources that are natural so that consumer interest increases (Garry, 2009). Besides, it involves the raw materials used during the manufacturing process as well as marketing (Cirpicki, Malcolm, & Byron, 2008). For instance, raw materials are inputs while environmental pollution is an example of how marketing activities affect the environment (Garry, 2009).
As oil prices rise, buyers are attracted to automobiles that are fuel efficient and less dependent on oil and for that reason; Prius is preferred to other vehicles. To add on this, many people are concerned about environmental pollution and would do anything to protect it. This concern has made Prius dominated the market because it consumes less fuel and has little emissions hence leading to environmental protection.
Technological
This factor entails forces that create new products and marketing opportunities (Kotler, Armstrong, & Saunders, 2010). Apart from being a dramatic force, it shapes the consumer destiny, and the challenge is to make affordable products. Prius vehicles are powerful than other automobile and consume less resources hence technologically sound.
Political
This factor involves the law and policies that influences various organizations in a society (Garry, 2009). The car owners get rewards of tax breaks from many states. In addition to this, some organizations give employees incentives after the purchase of hybrid. Moreover, hybrids can use the car-pooling lane hence people travel quickly to work. To sum it up, many companies that provide insurance cover give discount to hybrid cars.
Cultural
This factor deals with the institution and forces affecting the values, behavior and perception of the society (Meredith & Zielkel, 2009). Toyota Prius introduction to the market was timely. This is because the oil price was high and the automobile available were not cost effective when it comes to fuel consumption hence people needed to cut down on the cost. As a result, Toyota Prius was preferred as it solved that problem.
Marketing strategies
Marketing is delivery of a product that satisfies the customers need after conceptualization (Kotler, Armstrong, & Saunders, 2010). It involves understanding the market needs, selecting the interested market, describing the market with needs, creation of a product that meet their needs, delivery of the product and getting feedback from the customer (Meredith & Zielkel, 2009).
The main objective of marketing is to increase the sales hence, I agree with Mr. Stewart argument that if you want to get a lot of hybrid on the roads, you put them in vehicles that people are buying now because it will lead to an increase in the sales therefore more hybrids on the roads.
To begin this argument, Mr. Stewart has analyzed the market needs accordingly. It is a fact that people are buying cars not because of what it contains but because they need them. The car is one of the major necessities and by putting hybrids on them; it will definitely be bought hence an increase in the sales. For instance, Americans like big cars, therefore the sale of the hybrid will be greater if put on big cars and not the small ones.
Although selection of an interested market portrays a challenge in marketing, Mr. Stewart has conquered it successfully. He has targeted a group of people who are interested in cars because of what it is capable of doing and not because it contain hybrid. By putting hybrid in vehicles that people are buying now, it will lead to an increase in the sales.
Successful marketing requires a description of the market needs (Kotler, Armstrong, & Saunders, 2010). In Mr. Stewart statement, it comes out clearly, that people may need the hybrid although they do not know its advantages. The hybrid not only saves on fuel cost but also emits less to the environment hence protects the environment from pollution.
By integrating hybrid on the vehicles that people are buying, the environment will be in protection against global warming. As people realize the importance of the hybrid, the sales will increase. On the other hand, if hybrid is on the vehicle that people do not use now, the sales may not be great and many people may end up not realizing the advantages of the hybrid.
Mr. Stewart statement comes out clearly that the new product meets the consumer needs in a variety of ways. For example, the hybrid will enhance the performance of the car, as people will arrive at their destination quickly. Secondly, the consumers will save on the cost of fuel and finally the environment pollution will reduce. This will increase the sale of the hybrid because many people like to get the best services from whatever they possess.
It is evident that by putting hybrid on the vehicle that people are buying now, advertisement becomes easier. This is because as a person uses the car that has hybrid and realize its benefits, he will tell it to another person who will also tell someone else and in the end, the message reaches so many people. Eventually, the number of hybrids on the roads will increase as many people get to know its advantages.
Conclusion
Toyota Prius has dominated the market because of good marketing skills. Its struggle to deal with the macro environmental factors has made it produce an automobile that is appealing to many hence an increase in the sale.
References
Cirpicki, S., Malcolm, W., & Byron, S. (2008, November 13). Managers Knowledge of Marketing Principles: The case of New Product Development. Web.
Crano, W., Skenderian, J., & Alvaro, E. (2008, February 9). Marketing Strategies and Technique. Web.
Garry, R. (2009, July 3). The Most Important Marketing Principles of All Time. Web.
Kotler, P., Armstrong, G., & Saunders, J. (2010). Principles of Marketing. Boston: Pearson Education Prentice Hall.
Meredith, L., & Zielkel, M. (2009, April 14). Strategies and Marketing Ideas. Web.
Qahtani, K., & Messahel, F. (2010, January 20). Bussiness Principles for Marketing Practically Applied. Web.
