ORGANIZATIONAL DESIGN STRATEGY

Organizational Design Strategy: Toyota



Organizational Design Strategy: Toyota

About Toyota

Toyota is one of the world's largest and most flourishing car manufacturers with some 80,000 employees around the globe. In 1959 the Japanese city of Koroma was renamed Toyota City in recognition of the influence the company had on the economic and social welfare of its citizens. By 2005, business report experts Forbes 2000 placed Toyota eighth in the list of the world's leading companies. However, by the late 2000s a series of malfunctions in their cars resulted in the biggest crisis the company has faced in modern times.

The company was a powerful global operator in the car industry and by the beginning of the 1980s was manufacturing in the USA and forming a partnership with giants General Motors to broaden the brand range, including the luxury model the Lexus. Innovation continued into the 1990s with the roll-out of their first hybrid car, the Prius, as well as a range of SUV's and models designed for the young, affluent clientele. Meanwhile the company's European ventures were expanded, including operations in the UK. This growth was the catalyst for the company's listing on the New York Stock Exchange in 1999.

The main products of Toyota include Prius, Hilux Surf, Land Cruiser, Mark II, Corolla, Mark X and Hiace. The main competitors of Toyota are: General Motors, Suzuki, Chevrolet, Nissan, Hyundai and Ford. The fiscal year ended in 2009, was among the nastiest sales sprawl in the car manufacturing industry, a net loss of 4.3 billion dollar was on the books of Toyota, which was its first ever since 1950.

Company's Mission

“To be the first choice partner for all customers looking for materials handling solutions and to be widely recognized for our innovative products and services as well as our respect for society.”

We build trust and confidence with customers by delivering outstanding quality products and services which add real value to their businesses. We respect the expectations and ambitions of employees, stakeholders and suppliers through a never ending search to improve. 

The Toyota Way 

The Toyota Way is based on the Guiding Principles at Toyota. Its five core values express the beliefs and values shared by the Toyota Group. All Toyota team members, at every level, are expected to use these values in their daily work and relations with others.

Challenge At Toyota, we maintain a long-term vision and strive to meet all challenges with the courage and creativity needed to realize that vision.

KaizenKaizen means striving for “continuous improvement. As no process can ever be declared perfect, there is always room for improvement.”

Respect Toyota respects others, makes every effort to understand others, accepts responsibility and does its best to build mutual trust.

Teamwork Toyota stimulates personal and professional growth, shares opportunities for development and maximizes individual and team performance.

Organizational Culture and Environment

Internal Culture and Environment

A strategic part that creates opportunities for Toyota is the capabilities of the company's supply chain and performance management. (Bradley, 2003, Pp. 291) Format and a group of supply chain ...