Toyota: Strategic Choices

Introduction

Toyota, commonly known as TMC is the world’s largest automobile maker by production and sales. With headquarters located in Japan it operates in more than 120 countries of the world employing 71000 employees worldwide.

Under the leadership of the new management team and its Chief Executive Officer Akio Toyoda, Toyota undertakes the challenge to become more powerful in today’s difficult business situation which enables it to achieve its corporate mission and its strategies. Toyota management leads the way in many aspects of business strategy and strategic management and numerous companies have followed the lead.

Mission and Strategy Management

Toyota’s mission is always to satisfy its customers and to provide them with high-valued products and services. Based on its Customer First philosophy, Toyota is developing a clear regional vision that defines the best way to serve customers and society in each area of the globe.

Its new management structure reflects this emphasis with five regional executive vice presidents that are rich with on-site experience who will provide the hands-on stewardship needed to respond promptly to changing state of affairs around the world. To do this Toyota adopted “THE TOYOTA WAY” which contains the expression of values and the strategy of improvement in business for all employees .To help us achieve our goals, we are implementing a stronger product-oriented management model focused on making better cars. .Toyota summarizes its values and culture with the five main principles to achieve its mission and to implement its strategies.

• Challenge

• Kaizen (improvement)

• Genchi Genbutsu (go and see)

• Respect

• Teamwork .

On the contrary kaizen (continuous improvement) has always...

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... it became apparent that the issues relating to Toyota regarding safety scandals, was because of the factors relating to strategic implementation and lack of communication which gave the competitors the chance to regain market share by offering incentives. Thus combing the principles of continuous improvement and problems identification enabled the biggest producer of hybrid cars, to maintain a strong image and its corporate reputation.

References

Mockler J. Robert 2002 ‘Multinational strategic management: an integrative entrepreneurial context-specific process’ Routledge Publications

Stahl J. Michael Grigsby W. David 1997 ‘Strategic Management: total quality and global competition’ Wiley-Blackwell Publications

Iyer, Ananth Roy, Vasher 2009 ‘Toyota’s Supply Chain Management: A Strategic Approach to Toyota's Renowned System’ McGraw Hill Professional