TOYOTA

Motor Corporation

Patricia DiFrancesco

Rahi Ahmed

Brook Banta

An Gia Kou

Deena Anwar

Katrina Osea

Christopher Dean

Introduction and Background

• Toyota Motor Corporation is a well-respected automobile company established in 1937
• 364,445 employees worldwide
• 6th largest company in the world based on revenue
• Traditional Japanese Business Practices
• Global hierarchy
• 2009 - 8 million recalls due to faulty accelerations
• 2013 - Global hierarchy to divisional structure

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Mission Statement

“To attract and attain customers with high-valued products and services and the most satisfying ownership experience in America.”

Problems within Toyota

• Toyota Production System (TPS) - insufficient testing
• Unintended acceleration problem
• $1.1 Billion dollar class-action lawsuit
• Rapid growth led to poor quality control
• CEO looked like a “deer in headlights”

Problems within Toyota (continued)

• Decisions made by Japan
• Cultural differences
• Autonomy
• Organizational Structure
• Conflict management

Applying Organizational Concepts

• Teamwork
• Helps the company progress into greater capabilities and success
• Continuous Improvement through Learning
• A way of developing solutions to problems

Applying Organizational Concepts (continued)

• Quality
• Their success is mainly attributed to their ability in providing high quality automobiles
• Secrecy
• Problems that are encountered are now analyzed within the North American business unit of Toyota

Action to Take

Increase:

• Lead time with complete examination process
• Distribution of power
• Culture strength with team diversity, inclusion, and creating a safe psychological climate

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Potential Barriers

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• Money

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• Communication

• Culture

Risks & Consequences

• Longer Production time
• Upsetting customers and/or shareholders
• Discouraging employees who don’t respond well to change

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Conclusion

• Centralized Global Hierarchy
• Lack of Communication
• Company Culture
• Improve Organizational Behavior and Structure

“To survive in modern times, a company must have an organizational structure that accepts change as its basic premise, lets tribal customs thrive, and fosters a power that is derived from respect, not rules. In other words, the successful companies will be the ones that put quality of life first. Do this and the rest - quality of product, productivity of workers, profits for all - will follow.”

-Ricardo Semler

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References

Cole, R. E. (2013, July 17). Who Was Really at Fault for the Toyota Recalls? Retrieved from https://www.theatlantic.com/business/archive/2011/05/who-was-really-at-fault-for-the-toyota-recalls/238076/

Gregory, L. (2018, September 8). Toyota's Organizational Structure: An Analysis. Retrieved October 27, 2019, from http://panmore.com/toyota-organizational-structure-analysis.

How Does Toyota Plan to Deal with Its Challenges? (2016, June 8). Retrieved October 27, 2019, from https://marketrealist.com/2016/05/toyota-plan-deal-challenges/.

Kalb, I. (2012, December 28). How Toyota's Crisis Management Failures Added To The Billion-Dollar Settlement. Retrieved October 27, 2019, from https://www. businessinsider.com/toyota-paying-billions-because-of-marketing-failures-2012-12.

Learning, L. (n.d.). Principles of Management. Retrieved October 23, 2019, from courses.lumenlearning.com/principlesmanagement/chapter/7-1-case-in-point-toyota- struggles-with-organizational-structure/.

Meyer, P. (2017, February 2). Toyota's Organizational Culture Characteristics: An Analysis. Retrieved October 27, 2019, from http://panmore.com/toyota-organizationa l-culture-characteristics-analysis.

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Questions?