A Case Study of Toyota Motor Company’s Strategic Implementation Factors and how they affect the Company’s Operations.

926 Words2 Pages

Toyota has adopted an expansion strategy aimed at increasing the company’s market share through sustainable growth. This will be done based on the delivery of high quality, and safe cars, at an affordable price. As the company seeks to expand to new markets, focus will be on maintaining an organizational culture that allows optimum efficiency in the ever dynamic global market.

Different nations within which Toyota operates have different political, technological, social, and cultural environments. To safeguard the company’s overall image, there must be effective communication between the head office and regional quarters. This is especially important in the area of quality control, as Toyota currently grapples with safety issues facing several of its car models.

Structure of Toyota Company

Organizations must operate within structures that allow them to perform at their best within their given environments. According to theorists T. Burns and G.M Stalker (1961), organizations require structures that will allow them to adapt and react to changes in the environment (Mechanistic vs Organic Structures, 2009). Toyota Company’s corporate structure is spelt out as one where the management team and employees conduct operations and make decisions through a system of checks and balances.

Toyota’s new structure introduced in 2003 reduced the number of directors, and introduced senior managing directors, who link management with on-site operations. This has led to prompt decision making that also reflects the opinions of on-site personnel.

Toyota’s decision making structure is largely focused on management, despite the fact that the company operates in a highly dynamic and uncertain global environment. Toyota’s decision making proces...

... middle of paper ...

...y assurance systems. Developing independent manufacturing divisions in the different regions would ensure better coordination within the company’s global business.

Works Cited

Annual Report ( 2010) TOYOTA MOTOR CORPORATION: Purpose, Perspective and

Passion, Retrieved From: http://www.toyota

global.com/investors/ir_library/annual/pdf/2010

Mechanistic vs. Organic Organizational Structure (Contingency Theory) (2009).

BusinessMate. Retrieved From

http://www.businessmate.org/Article.php?ArtikelId=44

Four Organizational Culture Types (n.d) Haworth White Paper. Retrieved From

http://www.haworth.com/en-us/Knowledge/Workplace-Library/Documents/Four-Organizational-Culture-Types_6.pdf

McNamara, C. (n.d.) Management Function of Coordinating / Controlling: Overview of

Basic Methods Retrieved from http://www.managementhelp.org/cntrllng/cntrllng.htm

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