Strategic Management Report on Toyota

strategical Management Report on ToyotaToyota Motor Corporation (Toyota) is the largest producer of automobiles in Japan and the worlds second largest self-propelled manufacturer based on fruit and sales. In 2010, Toyota sold 7.24 million units (Toyota, 2010). Toyota diversified operations overwhelm financial services, telecommunications, prefabricated hovictimization and leisure boats.Besides its 12 plants and a number of manufacturing subsidiaries and affiliates in Japan, Toyota has 52 manufacturing companies in 27 countries that produce Lexus and Toyota brand vehicles and components. Toyota employs approximately 320,590 heap worldwide, and markets vehicles in more than 170 countries. The caller-out is headquartered in Tokyo, Japan and had an operating income of approximately 397.05 billion Yen (Toyota, 2011). And the main competitors of Toyota are General Motors, Honda Motors and Ford Motors (Daily Finance, 2011).3. digest of Toyota Strategic Capabilities3.1 Company Capab ilities Grant (2010) says about Lean increaseion integrates capabilities relating to the manufacture of components and subassemblies, supply cosmic string management, production scheduling, assembly, tone of voice control procedures, systems for managing innovation and continuous improvement and inventory control.3.1.1 Resources Innovation has always been a Toyota resource. In the 1970s Toyota began to produce sm aloneer, more fuel-efficient cars, which nodes desired after oil equipment casualtys rocketed. Recently, it has used both diesel applied science and the electric car.3.1.2 Organizational enculturation However, Toyotas main resource is the Toyota stylus, the 14 principles behind the Toyota Production System (Combe, 2011). These originated in the post 1945 environment, when it was imperative to make the maximum use of scarce resources. Ch bothenges, improvement, Kaisen, go and see (genchi genbutsu) respect and teamwork are the main tenets of these principles, which c an be outlines as follows.Management decisions should be huge term, as opposed to in short term, although they should be arrived at consensually. Problems should be bring outed by continuous process, not hidden and resolved immediately so that a step product is produced immediately. Only existing and trustworthy technology should be used and tasks bring to be standardized so that the workload is leveled out and the workers are continually improving. Management should understand all aspects of the companys operations, and pass on their dedication to the companys goals to others.All workers, suppliers and affiliated should always be challenged to improve their performance. The latter heart and soul that Toyota call ons a leaning organization with workers being em personneled to make changes as they perform their daily tasks. The Toyota Way has given Toyota a comparative advantage in both quality and reliability.3.1.3 Supply Chain agree to Winfield and Hay (1997) authority of the strategic capabilities of Toyota includes the strategic capabilities of the supply chain. The pattern and organization of a supply chain is perceptibly a comprehensive topic, concerning inter dependencies between research and development, marketing and production roles, creating considerable courses of goods and technical, market and financial information.3.2 Core Competencies Toyotas global competitive advantage is to build trust and confidence with guests by delivering salient quality products and services that add real economic value to their business.According to Drejer (2002),However, in recent years on that point has been a number of recalls of multiple models of Toyota, which are amazingly reliable. How could this possibly happen to the car company that was the noncontroversial leader in quality.4. Evaluation of Possible Future Strategies for the CompanyThe main strategic issue for Toyota is maintaining its mooring as the worlds leading car manufacturer after the rece nt mass vehicle recall.4.1 Future Strategies for Culture careen Based on the book titled 7 Lessons for Leading in Crisis written by George (2009), Toyota postulate a credible leader with a strong, cohesive plan (George, 2010).4.1.1 Face reality, starting with yourself Toyota blest the problems on stuck floor mats and panicky drivers. Instead, Toyota should acknowledge that its vaunted quality system failed. CEO Toyoda should take personal office by saying that he pushed in any case hard for growth and neglected quality.4.1.2 Dont be Atlas lend the world off your shoulders Toyoda needs a crisis team reporting directly to him, working 24/7 to get problems fixed permanently. He should add the worlds top quality experts to his fix it team and listen conservatively to their advice.4.1.3 Dig deep for the floor cause Management should have required its best engineers to get to the root cause of this problem and every other quality problem being reported.4.1.4 Get bring in for t he long haul These problems wont just fade away. In fact, they are likely to get worst forward getting better. Toyota must invest heavily in corrective actions while its sales shrink and win implode, requiring major cash resources until its reputation can be restored.4.1.5 Never waste a good crisis For all the pain Toyota is experiencing, this crisis provides a unique opportunity to make stock certificateamental changes required to restore Toyota quality. Employees are ready for new committee, and they are willing to make radical changes to renew the company. With Toyodas leading, Toyota automobiles can be restored to the worlds highest quality.4.1.6 Youre in the play up Follow True North Toyoda must come out of hiding, take personal responsibility, and subject himself to unabated questioning by regulators and the media. Then he should make a personal commitment to every Toyota customer to repair the damage, including buying back defective cars.4.1.7 Go on offense focus on harming now Coming out of this crisis, the market will never look the same. Toyota cannot wait until all its quality problems are resolved. It must play defense and offense simultaneously. To win, Toyota has to offer advanced features and superior quality, better value for consumers, greater safety, and improved fuel efficiency.4.2 Future Strategies for Innovation Like Volkswagen, Toyota could design cars for specific markets (Welch, 2010). Penetration of the price sensitive Indian market could be achieved by producing its low cost car soon (The economical Times, 2010). Toyota needs to pay more attention to the Chinese market, which is the largest and fastest growing. As Chinese families are littler than their Western equivalents, this could be an opportunity for increased sales of the smaller Camry model (Xinhua, 2010). Retracting in Europe could fund expansion into these blossoming Asian markets. Specific markets could also be entered by joint ventures with local manufacturers . Volkswagen is aiming to do this in India, by acquiring a stake in Suzuki, which is a market leader in that respect through its subsidiary Maruti (Ran Kim and Hetzner, 2009).Another possible dodge for Toyota is to restore its benchmark for quality and reliability, which has been severely impaired with the second recall of 4.2 million vehicles in 2009 (Bunkley, 2010). Crucial to this strategy, is the introduction of twenty dedicated technology facilities to highlight defects as quickly as possible (Guardian, 2010). In addition, the new regional quality subcommittees have the power to make improvements without head office approval. This would eradicate defects quickly, and, in turn reassure customers.5. Implementation of the Strategic ChangeRecently, public criticism focuses on complaints of too much computerization, problems with global sourcing, and the effects of Toyotas single-minded pursuit of nice the worlds largest automaker. In fact, the recent criticism of Toyota in these areas demonstrated how leadership holds the keys to success and failure to organizational transformation. in the buff Technology and Leadership Toyotas recent strategy to become the worlds number one automaker has been underpinned by using new know-how, new technology and new materials to improve, perfect and break through auto design and manufacturing. However, the strategy also required that Toyota shifted its focus form manufacturing engineering and built-in-quality toward research and development product design.When a company shifts its focus form lean production to technology innovation, there is an embedded obstacle culture change. On one hand, the essence of lean production dictates the elimination of waste. On the other hand, the uncertainties in new product development require that the manufacturer build in redundancy to manage the risks of the unknown and unsure a high level of safety. Trying to balance lean production with the need for redundancy is a grueling act tha t requires the leadership to be instrumental in making key decisions as well as leading and managing the change.Global Sourcing and Leadership Toyotas decisions on strategic positioning impacts its cooperation with suppliers. The suppliers original consecratement of competitive advantages, centre of attention capabilities and value propositions needs to change along with that of Toyotas. such changes, unavoidably, will be reflected in vehicle quality, customer satisfaction and even customer safety.Some would view this as a by-product of the vehicle makers strategic move directed by its leadership. Others think the leadership should consider such impact as part of the change management alongside strategic planning shifts. Whatever it is, the key is the alignment, especially with corporate culture, people capabilities, acceptance of stress and pressure, and the ability to coordinate and change.World No. 1 and Leadership The new leadership certainly has felt the pressure. It is the r esponsibility of the leaders to sort out the alignment and coordination between strategic direction and operating model.Hopefully, the recall crisis will be treated once more as an opportunity to align its lean production culture and its operation excellence capabilities with its desire to leverage new technology, to continue sourcing from the public while continuing to stay on the No. 1 pedestal. A transformation already is apparent. Toyota has become less defensive and has responded quickly to new complaints of defects. Leadership is no longer absent and now appears to be leading from the front.In consideration of the various issues, Toyotas growth strategy for the continued realization of Genchi Genbutsu and high quality at affordable prices will centre on a thorough customer first linear perspective (Toyota, 2010). Specifically, Toyota will review their product lineups to match customer needs in each region and make water a production system that responds to changes in market structure while optimally allocating resources in areas where Toyota deprivation to advance.6. Conclusion RecommendationsToyota seems to have abandoned one of its inwardness competencies quality. Toyota is suffering from trying to get too big, too fast. Toyota sensed weakness from its auto rivals in the American market, and also noted opportunity in emerge markets such as China and India. So, it started enormous expansion around the world. In doing so, Toyota abandoned one of its force values, which is to never build a new product in a new factory with a new workforce. Toyota may have won the rights to brag as the worlds biggest car company, however, that appears to have come at a heavy cost to its reputation for quality and in turn customer dissatisfaction.Management needs to make sure that their projects and their goals are aligned with organizational values and core competencies. Understanding the importance of competencies and core values, and how they need to work in con junction, is profoundly important for management success. Management should give thought and efforts towards underdeveloped both of these sets of attributes and remain focused on business goals.This is a challenging menu, and this crisis is the true test of Akio Toyodas leadership. suppose this is a great company that will resurrect its reputation and restore its leadership.