Toyota Company’s and Google Inc.’s Managerial Issues

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Table of Contents

Abstract
A brief background of Toyota and Google Companies
Operating environment of the companies
Managerial issues
Impact of potential change factors and changing external conditions
References

Abstract

Effective leadership and strategic organization management have become major factors that determine the overall productivity and profitability levels that a company can achieve. Studies reveal that the ability of an organization to balance between its internal procedures such as decision making, leadership and communication with external demands of value for consumers and competitors in the dynamic market is the key to success. This notion is therefore built on change demands which are articulated at different levels of organization management. This has been the case at Toyota Company and Google Inc. because they have assimilated particularistic strategic mechanisms that have made their leadership admirable as well as effective management style.

A brief background of Toyota and Google Companies

Toyota Company

Toyota Motor Company is a multinational company that was founded in1936 (Liker and Hoseus, 2007). The company immediately embraced the concept of effectiveness and assimilated important change mechanisms to keep abreast with the trends that were in the dynamic automobile business. By 1980, the company had instituted major operations considerations that made it to be awarded the first Japanese Quality Control Award (Hopkins, 2009).

The beginning of the 21^st century saw the company assimilating highly modernistic models of manufacturing its automobiles thereby colonizing the US market with ease (Liker & Hoseus, 2007). Today, the company has captured over 15% of US market share with over 2.5 million of its products sold annually (Janicijevic, 2010). Globally, the company has been able to provide jobs to about 350, 000 people and make sales of over $ 264,758.9 million (Liker & Hoseus, 2007).

Google Inc.

Google Inc. is one of the leading American multinational corporations that was founded in 1996 (Waters, 2007). Its major area of specialization has been to provide internet related products and services. Over the years, the company has advanced to become an important pillar for individuals and corporate institutions for its effectiveness in fostering communication and information acquisition. Ahenkora and Peasah’s (2011) reference to Google as a strong leader in information technology and communication is therefore correct as Google has become an empowerment point first, to its workers and most importantly to consumers.

Operating environment of the companies

Legal environment

Current effective leadership and management calls for careful coordination between internal and external demands that create the intrinsic harmony of the services provided to consumers with objectives and goals of the organization. Johnson (2002) indicates that leaders in a company should possess the necessary legal and administrative skills that derive their ability to balance and address key uncertainties proactively before they explode to disasters.

Toyota Company has in the recent past been faced with legal issues pertaining to the quality of its products, a consideration that has put its legendary manufacturing model into risk (Liker & Hoseus, 2007). As a result, it adopted a Total Quality Control (TQC) program due to a special demand for greater caution regarding control and management of possible risks. In addition to the quality system, it introduced a high level compliance oversight committee to handle typical bureaucratic issues. According to Leavy (2010), a company can only be referred to be effective when its staff adhere to high levels of ethics and therefore avoid abuse and possible fraud or privacy infringement. Google Inc. has been very particular on this by regularly subjecting its staff to sequential training on law regarding communication and its related privacy requirements (Waters, 2007).

Social and economic environment

Poor business ethics forms one of the most demoralizing factors that not only affects negatively an organization’s social relationship with its customers but also its ability to make huge gains. At Toyota Company, leaders have established important business elements that determine its overall ability to assimilate high levels of creativity and innovation (Liker & Hoseus, 2007). Such include payment of taxes and adhering to economic requirement of the states where they operate. According to Markle (2011), the role of a business should not only be based on the need to generate profits, but need to be keen on the social and economic demands within its environment to provide the necessary social cohesiveness for further societal progress.

On the other hand, the management at Google has realised that through objective questioning and criticism, new ideologies are easily improved. These objectives are in line with the demands of its economic environment (Waters, 2007). Therefore, it has been keen on economic factors such as economic growth and payment of taxes. It has developed its culture based on the understanding that development and improvement have to be progressive and harmonic with its social and economic environment.

Managerial issues

Company culture and performance

Organization’s culture has over the years remained as one of the key elements that determine how well a company can trace its ideals. In her model of cultural dynamics, Mary Jo Hatch indicated that the levels of efficiency an organization can reach are determined by the beliefs, values, communication models, and relationships that exist between the employees and management (Palmer, Dunford & Akin, 2009). Google and Toyota Companies have faced issues pertaining to effecting change and have come note that one of the most difficult aspects in their organization is the changing organizational culture. Palmer, Dunford and Akin (2009) indicate that in order to enhance change in a company’s culture, the change demand must emanate from employees so as to reduce external resistance.

Promotion Policies

Current promotion policy issues in the economy are very relevant in determining the strategies, structures and practices that a business can assume so as to achieve its objectives. Ensuring that an organization recognizes the current promotion issues forms a major step in determining the ability and levels of successes that will be realized via seeking the best strategies of addressing the emerging issues. Since the onset of the current economic slowdown in the global economy, Toyota Company, unlike Google Inc. has found itself in hard times with imminent loses and possible closures (Liker & Hoseus, 2007).

Strategic decisions making and decision making style

Decision making among companies has been considered as a major tool that enables a business to effectively carry out its activities, solve emerging issues and reach its set objectives. However, in Google Inc., leadership has faced several issues coming from implementing its decisions most of which have not received full support from stakeholders (Waters, 2007). Unlike Google, Toyota Company has sought to empower workers by increasing their autonomy and further promoting their decision making capacities (Liker & Hoseus, 2007). In order to counter resistance to its decisions, it has promoted communication between the management and lower level workers, a consideration that has been cited to have major positive affect since it is able to pro-actively identify variant problems that affect the organization and generate the best solutions.

Management, leadership and communication style

The management and leadership styles of both companies have remained steady since their establishment owing to the customers’ needs and the stiff competition from other companies in the market. However, a special focus in their style of leadership has been laid on the need for planning and management that provides the necessary focus for each company to achieve its objectives and strategies. However, communication is still a major issue in both organizations. Analysts are of the view that their leadership can be very effective if they improve vertical and horizontal communication in the company.

Use of SWOT tool and operations strategy framework

The management of the company has remained steady since its establishment owing to its strategic framework and analysis of strength, weakness, opportunities and threats (SWOT). The latter is required in order to meet customers’ needs and high level of competition from its market rivals. However, special focus goes to Google Inc. which still needs leadership that provides the necessary focus for the company to achieve its objectives and strategies (Waters, 2007).

Impact of potential change factors and changing external conditions

Schumann (2001) points out that the current success at Toyota Motor Company and Google Inc. could not have been realized in the absence of effective leadership and implementation of potential change factors. The presence of change in both companies has defined their internal operational demands, relations and external interlinks.

The concept of change management in Toyota Co. has been tied to the company’s major philosophy ‘the Toyota way’ which defines the internal and external boundaries for all change management operations (Liker & Hoseus, 2007). Schumann (2001) indicates that management of change as dictated by this philosophy denotes the need for thorough understanding of the overall application ideals.

References

Ahenkora, K. & Peasah, O. (2011). Crafting strategy that measures up. International Journal of Business and Management, 6(10), 278-283.

Hopkins, M. (2009). 8 Reasons Sustainability Will Change Management (That You Never Thought of). MIT Sloan Management Review, 51(1), 27-30.

Janicijevic, N. (2010). Business processes in organizational diagnosis. Management: Journal of Contemporary Management Issues. 15(2), 85-106.

Johnson, L (2002). Issue selling in the organization. MIT Sloan Management Review, 43(3), 8-9.

Leavy, B. (2010). Design thinking – a new mental model of value innovation. Strategy & Leadership, 38(3), 5-14.

Liker, J. & Hoseus, M. (2007). Toyota Culture: The Heart and Soul of the Toyota Way. New York: McGraw-Hill.

Markle, G. (2011). Constructions of citizenship among multinational corporations. International Journal of Business and Social Science: Special Issue, 2(24), 283-293.

Palmer, I., Dunford, R. & Akin, G. (2009). Managing organizational change a multiple perspective approach. Boston: McGraw Hill.

Schumann, P. (2001). A moral principles framework for human resource management ethics. Human Resource Management Review, 11(1/2), 93-111.

Waters, W. (2007). Google scholar coverage of a multidisciplinary field. Information Processing & Management, 43(4), 1121-1132.

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