Toyota Motor Corporation Case Study
analytical Essay
1002 words
CORPORATE SOCIAL RESPONSIBILITY 2 Introduction This essay presents a case of a company that has dealt with public criticism from various stakeholders. In the introduction part readers will be able to know the company, its mission, and the type of business that it provides. Later on, the essay identifies the event which was responsible for the strong criticisms promoted by stakeholders, what the specific criticisms were, and the business’ response to the criticisms. All researched information can be confirmed by consulting the reference list. CORPORATE SOCIAL RESPONSIBILITY 3 Toyota Motor Corporation (TMC) was founded in Japan in 1937 by Sakichi Toyoda and is now considered one of the “giants” of the automotive industry. In the first year TMC produced 4013 units. In July 2012 - 75 years later - TMC “worldwide cumulative production tops 200 million units”. As reported by Lowry W. (April 29, 2014), in 2013, TMC is producing cars, trucks, and buses in five continents and leads the world market with 11.8% of share ahead of General Motors and Volkswagen. Financially, (and except for 2008) results have been very positive during the new century. From the FY 2014 Financial Report (May 8, 2014), the shareholder dividend as per March 2014 was 165 yen per share (Total Amount of Payment: 522.9 billion yen, Payout Ratio: 28.7%). Although Toyota USA’s Mission states "To attract and attain customers with high-valued products and services and the most satisfying ownership experience in America." Toyota’s Group uses an official statement called The Global Vision (refer to http://www.strategicmanagementinsight.com/mission-statements/toyota-mission-statement.html or http://www.toyota-global.com/company/vision_philosophy/toyota_global_vision_2020.html... ... middle of paper ... ...cial Responsibility. University of Houston. Retrieved from http://www.instituteforpr.org/topics/corporate-social-responsibility/ Lowry, W. (April 29, 2014). Why companies like Toyota lead in global automobile market share. The Market Realist. Retrieved from http://marketrealist.com/2014/04/companies-like-toyota-lead-global-automobile-market-share/ (n.a.). May 8, 2014. FY 2014 Financial Results. Toyota Motor Corporation. Retrieved from http://www.toyota-global.com/investors/financial_result/2014/pdf/q4/presentation.pdf (n.a.). (September 3, 2013). Mission Statement of Toyota. Retrieved from http://www.strategicmanagementinsight.com/mission-statements/toyota-mission-statement.html (n.a.). 2005. The Role of Business in Society. International Organization of Employers. Geneva, Switzerland. Retrieved from http://www.ioe-emp.org/fileadmin/ioe_documents/publications/Policy%
In this essay, the author
- Analyzes how the essay presents a company that has dealt with public criticism from various stakeholders. it identifies the event which was responsible for the strong criticisms promoted by stakeholders and the business' response to them.
- Analyzes how the obfuscation undermined toyota's original best intentions and dented the fragile trust with its many stakeholders.
- Analyzes how toyota's communication inability was a consequence of poor strategy planning at higher levels of management responsible for tracking vision and mission.
- Explains that toyota understood that a radical strategy and procedures had to be implemented. they refocused on quality management and internal and external communication strategy of product quality.
- Explains that toyota motor corporation (tmc) was founded in 1937 by sakichi toyoda and is now considered one of the "giants" in the automotive industry.
- Explains that toyota learned the hard way, but was able to correct their mistakes with a strong organizational and strategic change.
- Cites bright, b., brooks, c. and ni, l. on corporate social responsibility.
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- Explains that the current state of the us auto industry can be directly attributed to the crash of 2008. companies were forced to take emergency actions to stay in business.
- Opines that technology is advancing by leaps and bounds. sensors placed around a vehicle’s exterior combined with gps navigation will one day reduce the burden placed on them. remote shutdown systems will enable law enforcement to instantly put an end to high-speed chases
- Explains that the 2008 crash favored foreign automakers who had already emphasized fuel efficiency and affordability. the us market share of us companies dropped, and the japanese car company toyota saw greater profits.
- Explains that consumers have rewarded foreign automakers for their early initiative into efficient and environmentally friendly vehicles, but us companies have not been forgotten.
789 wordsRead More - Toyota Case Studyexplanatory essayToyota Motor Corporation is a Japanese multinational automotive manufacturer that is headquartered in Toyota, Aichi, Japan. Toyota was founded by Kiichiro Toyoda in 1937 as a spinoff from his father’s company Toyota Industries to create automobiles. Toyota has been working towards a contribution that would result to a more prosperous society through the manufacturing automobiles and operating its business with a focus on vehicle production and sales. Its first product was created while under a department of Toyota Industries in 1934, three years before its foundation. The company is the leader in sales of hybrid electric vehicles. It is currently producing vehicles under five brands namely; Toyota brand, Hino, Lexus, Ranz, and Daihatsu. (Frisch,
In this essay, the author
- Describes toyota motor corporation as a japanese multinational automotive manufacturer headquartered in toyota, aichi, japan.
- Explains that toyota's lexus brand was initially directed to countries outside its home country, and mostly the united states. the company was targeting luxurious persons who thought that the toyota brand is of quality below average that’s why they were cheap.
- Explains that lexus had to come up with a strategy to snatch these people's mind. it had no label or logo of the toyota company.
- Explains that lexus is highly demanded and used in the united states of america. the vehicle has a good reputation in that it is of high style, the luxury brand of automotive heavyweight, toyota.
- Explains that other countries like africa and china have been hugely using toyota cars brands like toyota corolla, toyota corona, and toyota hiace.
- Explains that toyota land cruiser tour vans are highly demanded by african countries, kenya being one of them.
- Explains that toyota targets and tries to meet the requirement and demands of all of its customers, from producing vehicles that average people to high-class one need, be it in affordability, creating jobs in different ways and easy maintenance.
782 wordsRead More - Toyota Motor Credit Corporationexplanatory essayIs Toyota Motor Corporation worthy of my investment dollars? This company, which has grown steadily since 1926 with a humble beginning as Toyoda Automatic Loom Works, Ltd., has evolved into what is today Toyota Motor Corporation, one of the largest automobile manufacturers in the world. Toyota has demonstrated sound ethical behavior and social responsibility, and is a strong competitor in the global marketplace. Its Board of Directors is composed of seventy competent individuals who have a vast array of knowledge and experience in the automobile industry. The corporation avails itself of the many opportunities to increase business via the internet. It has shown strength through adversity and continues to grow. Despite the misconception that it is a “foreign” car company, Toyota provides hundreds of thousands of jobs for American workers. Its associates are content; enjoy a substantial benefits package and are offered opportunities to advance within the organization. Toyota’s mission statement and goal of providing “the most satisfying ownership experience in America” (Toyota) drives the company toward continuous improvement. For this reason, Toyota’s marketing; production, distribution strategies, and channels are effective in building brand equity. It utilizes a variety of marketing communication tools and pricing strategies to effectively increase sales; and the company’s three year financial performance indicates that it is in a strong financial position. Accordingly, based on the aggregate of my research, I would definitely invest in this company.
In this essay, the author
- Explains that toyota motor corporation is one of the largest automobile manufacturers in the world. it has demonstrated sound ethical behavior and social responsibility.
- Explains toyota motor corporation's ethical and social responsibility. toyota and its sister company, lexus, offer several different hybrid models, including the prius, camry, highlander, and rx.
- Opines that toyota is well suited to compete in the global marketplace. toyota has manufacturing and sales in more than 170 countries and regions around the world.
- Opines that toyota's strength rests in its resilience. the company is at an opportune time to capitalize on the popularity of its hybrid vehicles.
- Opines that toyota has grown into an organization that demonstrates fine ethics, corporate citizenship, fierce competition, and strong governance.
- Explains that fujio cho 1937- biography - advameg, inc., 2012.
- Explains toyota-global's "guiding principles at toyota." toyota motor corporation.
- Explains that toyota motor corporation's board of directors is led by fujio cho, who is the second person outside the toyoda family to head the company since 1995.
- Explains toyota's cordial relationship between management and labor. toyota offers an excellent benefits package, including 15 paid holidays, paid vacation, personal and sick leave, pension, and an employer-matched 401k plan.
- Explains that the u.s. department of transportation releases results from nhtsa-nasa study of unintended acceleration in toyota vehicles.
- Describes the financial statements of toyota motor corp. hirsch, jerry, and new zealand trade and enterprise.
- Explains toyota help frequently asked questions and toyota in action. toyota motor corporation, dec. 2011.
2318 wordsRead More - What Is Toyota Case Studyanalytical essayNorth American affiliates on quality and safety issues. In retrieving customers, TMS in March 3rd 2010 announced plans to launch the company’s most extensive sales promotion programs for American customers includes 0% APR financing, low leasing rate, and flattering two-year best maintenance offers (Toyota USA Newsroom). though Toyota has working on the disaster, the way they handling the disaster in United State seems not easy to go: they had to tackle with three times testimonies in the American Congressional hearing; to pay $16.4 million civil punishment imposed by NHTSA for reproachful Toyota of a deliberate delay in recalling the vehicles by beating its defects; and Toyota have been withstanding intense examination from U.S. governments
In this essay, the author
- Analyzes toyota's handling of the us-based disaster, including five major recalls and other issues that led to the rising crisis.
- Explains that toyota issued a public safety optional suggestive of owners of specific model about the ill-fitting floor mat issues in north america.
- Explains that the grave impacts of the toyota disaster on toyota were typically coming from the united states. halmstad market in sweden is researched.
- Compares the exhausting difficulty in usa to toyota's different circumstances in sweden. the sales supervisory in toyota center in halmstad insists that toyota didn't have real quality problems with its vehicles.
- Explains that toyota sweden ab in stockholm is responsible for informing the swedish owners of the affected cars with mail letters and suggestive of those customers to contact their local dealer for fix actions.
- Analyzes how the customer respondents can be divided into two separate groups – toyota customers and other brands’ customers. they compare their reflections to see how both groups' customers distinguish in a different way on toyota crisis and the brand.
- Explains that the experimental toyota customers in sweden are not as responsive to the negative aspects of toyota. they trust toyota's status, even though it is undergoing the upsetting crisis.
1499 wordsRead More - Toyota Case Studyanalytical essayThe announcement of Toyota, one of the world’s biggest car manufacturers, to cease its production in Australia by 2017, has been brought to national attention involving Federal government, individual workers, workers union and more, as the decision will undeniably constitute some difficulties to the country. To analyze and evaluate the consequences of this decision, the two models of corporate social responsibility that are Shareholder and Stakeholders theories have been taken into account in order to have a better understanding in areas of social responsibility holding by each particular member of the society. Each theory contains a different view of responsibility; the shareholder theory focuses on shareholders’ profit maximization, while the stakeholder theory looks at the wider view of taking each stakeholder’s interest into the equation. The decision made by Toyota clearly has impacts on the society, and undoubtedly leaves the company to hold moral responsibility more or less. However, considering the professional roles of the Australian government and workers union, they are also responsible for the decision. This essay evaluates the positive and negative consequences in regard to the decision made by Toyota to end their Australian car-making and also examines the shareholder and stakeholders theories to identify the role of social responsibility that is borne by these three sections; Toyota, Australian Government and Australian manufacturing workers union.
In this essay, the author
- Evaluates the positive and negative consequences of toyota's decision to end its australian car-making and examines shareholder and stakeholder theories to identify the role of social responsibility.
- Analyzes toyota's decision to stop its vehicles manufacturing in australia by the end of 2017 and operate in the country only as a national sales and distribution company.
- Explains that toyota's decision to cut 2,500 jobs would have a negative impact on individuals' earnings and the australian economy. the ideal corporation should take the social and environmental impacts of their decisions into consideration.
- Explains that corporate social responsibility is an important factor for a business' long-term sustainability and profitability, as approved by the positive relationship between the financial performance and csr.
- Explains the stakeholder theory, which focuses on the moral responsibility for the society taken by a corporation to improve the social welfare, rather than managing for shareholders.
- Analyzes toyota's decision to end its manufacturing in australia based on their shareholders' perspective. the company is morally responsible for its employees and suppliers.
- Explains that the australian government is responsible for the workforce, supply businesses, and toyota.
- Argues that the government should approach an effective interest rate policy to keep the currency in a steady level to reduce the severe impacts such as high cost of production and low economies of scale on the domestic industry.
- Argues that the australian manufacturing worker union (amwu) is responsible for the employees' job losses as a result of toyota's decision.
- Concludes that the decision of toyota to cease its manufacturing in australia seems to be the right decision based on the shareholder theory because it would end the loss-making incurred from its production.
2688 wordsRead More - Case Study Of Renault And Nissanexplanatory essayRenault-Nissan merger This merger happened in the year 1999 where Renault acquired 36.8 percent equity stake in Nissan, 22.5 persent stake in Nissan Diesel and 100 percent in Nissan’s European Finance subsidiaries amounting to USD5.4 billion. This merger is based on the principal that both companies will share resources but will retain their separate identities. This was done to improve their individual competitiveness. While Nissan is somewhat stable in North America and Asia, it is supported by Renault in Europe and South America.
In this essay, the author
- Explains the merger between daimler-benz and chrysler, which created a combined value of $ 130 billion.
- Explains that the fusion combined german expertise in luxury cars with swift united states management and the expertise of mass market.
- Explains that daimlerchrysler's combined entity aims to improve the economy of scale and reduce costs, making it an automotive giant that could face brutal competition from japanese, german and us automakers.
- Explains that chrysler had a creative style and low development costs. it had an entrepreneurial culture and flair to make things fast, cheap and lean. this expertise could be transferred to daimler.
- Explains that the merger between renault and nissan is based on the principle that both companies will share resources but retain their separate identities.
- Explains that daimler had one of the best global distribution networks which could be made use by chrysler.
649 wordsRead More - Marketing Plan - Toyota Motors Corporation Indiaexplanatory essayThe company Toyota Kirloskar Motor Private Limited (TKMPL) according to its mission statement aims to play a major role in the development of the automotive industry and the creation of employment opportunities, not only through its dealer network, but also through ancillary industries with a business philosophy of "Putting Customer First".
In this essay, the author
- Explains that toyota focused on the environmentally conscious customers and customers who wanted more fuel efficiency.
- Explains that toyota's dealers place an order with the company in advance as they receive it from the customer. they are given a due date at which the goods would be delivered to them.
- Describes toyota's schemes and strategies in order for the supply chain to run smoothly and efficiently, from giving rewards to the suppliers giving best quality components to training them for improving managerial skills.
- Opines that toyota is more strategic and plans to sell 10.4 million vehicles by 2009, surpassing gm in global sales by 2008.
- Explains toyota's just-in-time (jit) system requires material shipments to be small and frequent. jit systems work when long-term relationships exist and suppliers are educated about the production process.
- Explains cross-docking is an extension of the assembly line that gets parts just in time from suppliers onto vehicles and finally to customers.
- Opines that toyota needs its suppliers to be as capable as its own plants at building and delivering high quality components jit.
- Explains the importance of developing a system of evaluating and classifying suppliers.
- Analyzes toyota's strengths, weaknesses, opportunities, and threats on indian market using swot analysis. it can use its strength to overcome its competitors and work on its weaknesses to not lose out on sales or customers.
- Compares toyota vehicles and corolla vehicles in terms of fuel consumption and fuel efficiency.
- Opines that while the firm had respect for its employees, expenses related to post retirement were not that encouraging.
- Explains that there are lots of new players entering the market offering vehicles at lower prices and more competitive advantages.
- Explains that india owns broad demands of vehicle consumption. this market in history is very price sensitive, which leads to the main manufactures paying attention to small car segment market.
- Explains that maruti udyog limited was founded in 1981 and has a long-term cooperation relationship with suzuki motor.
- Explains that maruti suzuki is an old player in india automobile market, so it owns more than 30 years local experience with either their customers or components suppliers.
- Explains that maruti suzuki is an old player in india automobile market, so it has more than 30 years local experience with either their customers or components suppliers.
- Explains that maruti suzuki entered india market in 1996 by establishing its fully owned subsidiary company hyundai motor india ltd (hmil).
- Explains that hyundai motor india ltd (hmil) is a south korean manufacturer that entered india in 1996 by establishing its fully owned subsidiary company.
- Explains that respects the culture and customs of every nation and community and contributes to the economic and social development through corporate activities in the communities.
- Explains that the company's excellent quality, low maintenance, and high resale value has won the support and loyalty of its customers.
- Explains toyota motor corporation entered india in 1997 in a joint venture with the kirloskar group, for the manufacture and sales of toyota cars in india.
- Explains toyota's signaling systems that alert suppliers that it is time to deliver more material. a kanban triggers material delivery when needed and eliminates the need for constant inventory management.
- Explains toyota's principle to invest in finding solid partners and grow together to mutual benefit in the long-term.
- Explains that toyota outsources 70% of the vehicle's components, but still wants to maintain internal competency. toyota will learn with suppliers but will never transfer core knowledge and responsibility to suppliers.
- Explains that toyota has built a very good brand image over the world. jit and kanban systems give it an edge over its competitors.
- Explains toyota is one of the top players in the market because of its high market share, strong financial performance, and well-established managerial staff.
- Explains toyota's plans to boost sales in emerging markets from 3.7 million vehicles in 2012 to 5 million in the future.
- Cites kishore, r, lokhande, & rana, v. marketing strategies of indian automobile companies: a case study of maruti suzuki india limited.
- Analyzes lokhande, rana, and thakkar's views on hyundai motor india limited. maruti suzuki exploring plan to build its own family of diesel engines.
- Cites liker, j.k. & hoseus, m. (2008). toyota culture: the heart and soul of the toyota way.
2853 wordsRead More - Toyota Case Studyopinion essayExecutive Summary The automobile industry can be considered one of the most competitive industries that exists today. The production has to be flawless, the employees hardworking and the managers fully aware of their product. This case study discusses the Toyota production plant in Georgetown, Kentucky.
In this essay, the author
- Explains that a failure investigation would best serve toyota in the long-term and would help all employees study the problem.
- Opines that tmm should be using a better engineering change process and tracking ec's with better traceability.
- Recommends that tmm and kfs should have an electronic ordering system instead of a fax system to ensure no information on the seat reordering form is misinterpreted.
- Explains toyota's toyota production system (tps) in georgetown, kentucky, which focuses on just-in-time production and jidoka.
- Opines that tmm could help with the replacement seat inventory by keeping a certain amount of seats in stock.
- Recommends implementing a routine to deal with defective seats off-line to reduce quality escapes within the tps system.
1845 wordsRead More - Toyota Motor Manufacturing Case Studyargumentative essayMain problem: Toyota Motor Manufacturing, U.S.A. (TMM) is deviating from the standard assembly line principle of jidoka in an attempt to avoid expenses incurred from stopping the production line for seat quality defects. This deviation has contributed to the inability to identify the root cause of the problem, which has led to decreased run ratios on the line and an excess of defective automobiles in the overflow lot for multiple days. If this problem isn’t fixed quickly, an increased amount of waste will continue to be incurred and customer value will be threatened. Analysis: Friesen is truly struggling to find a way to "have his cake and eat it too". Friesen is passionate about TPS ways of achieving lean manufacturing by staying focused on achieving cost reduction by thoroughly eliminating waste.
In this essay, the author
- Explains that toyota motor manufacturing, u.s.a. is deviating from the standard assembly line principle of jidoka in an attempt to avoid expenses incurred from stopping the production line for seat quality defects.
- Explains that friesen is passionate about tps ways of achieving lean manufacturing by staying focused on eliminating waste.
- Recommends continuing the deviation to the production process, but starting a full investigation to uncover the true root causes of the seat problems, utilizing key personnel from assembly, production control, quality control and the supplier.
- Recommends jidoka and andon pull standards, which would mean stopping production when defective seats are encountered.
- Recommends implementing alternative number two: immediately cease the deviation to production process and go back to jidoka and andon pull standards, which would mean stopping production when defective seats are encountered.
- Explains that the toyota way is implemented through a solid foundation of key principles.
- Evaluates the benefits of implementing a jidoka process to solve the problem off the line, but the downsides are numerous and likely more costly.
- Opines that friesen is attempting to fix the problem by skipping the first three foundational levels of key principles and jumping to the fourth level of the foundation, problem solving.
1292 wordsRead More - Toyota Case Studyopinion essayToyota, the last standing Australian manufacturer, has announced that they will cease producing cars in Australia in 2017 (Toyota Australia Announces Future Plan For Local Manufacturing, 2014). The coalition government made it clear that it was not prepared to further assist the Australian car manufacturers and consequently Holden and Ford closed their doors. Toyota followed suit as manufacturing in Australia was no longer sustainable due to the unfavorably high Australian dollar, high labor costs, highly competitive domestic market and overseas competition. (Australian Government Productivity Commision, 2014). Manufacturing has been a great source of pride for Australians over the many years and so this is a solemn time for the industry.
In this essay, the author
- Opines that the abbott government will go down into history as the government that took down the industry forever.
- Opines that the collapse of toyota and australian car manufacturing was a result of factors that are out of the control of these three parties.
- Explains that toyota, the last standing australian manufacturer, has announced that they will cease producing cars in australia in 2017. the coalition government made it clear that it was not prepared to further assist the australian car manufacturers.
- Explains that australia's car market is extremely fragmented, with an abundance of badges and models available for purchase. toyota acted in accordance with their responsibility to generate profit.
- Explains that the government assisted toyota and other australian car manufacturers with their fleet policies, which favoured leasing and purchase of australian manufactured vehicles.
- Analyzes how toyota put forward variations to the workplace agreement that was to expire in 2015 to cut some of their costs.
1534 wordsRead More