Copy of Toyota in 2009: The Origin and Evolution of the World’s Leading…

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Toyota Origin

Copy of Toyota in 2009: The and Evolution of the World’s Leading Manufacturer.

Transcript of Copy of in 2009: The Origin and Evolution of the Leading Automobile Manufacturer.



Isaac Mbaziira


Logan MacDonald

Sultana Mechanistic Process Implementation Culture Control Management

Style Clearly Roles and Responsibilites Highly roles Highly standardized and roles and responsibilities. Vertical General Manager Assistant Manager Group Leader Group Leader Senior Manager Team Leader Member Reduced inventories.

mechine set up times.

Increased control.

Decentralized responsibility for the manufacturing process to lower employees. (Kanban system)

a close relationship with

Kanban System. Diversified CULTURE OF TOYOTA Strategy Toyota

Toyota’s strategic has always been to be the number one manufacturer in the world

Focus on goals

Lasting relationships

in their Corporate Culture Level Strategy:Identifying Goals

related goals have revolved around growth

competition goal of becoming #1 in sales reached in 2008

realizes the importance of all stakeholders and to keep employees, suppliers, and investors satisfied Business Strategy:Identify P/M Scope

Product line includes a of automobiles

3 Brands: Toyota, Scion

Appeal to consumers of all driving ages, and various classes

Automobiles of all sizes/capabilities

penetration strategy for most Business Level Strategy:Identify Emphasis

Superior performance broad differentiation, focusing on responsiveness

Key was process innovation

Low structure allows for RD investment

value product than Functional Level Strategy

realizes functional activities to support their business strategy

Goal of the functional strategy is to improve the effectiveness of ability through:



Customer Responsiveness Level Strategy:Efficiency

“Lean” system has allowed Toyota to their input costs improving finished product

production costs in the industry

Production System

Eliminate (waste), Muri (overburden), (inconsistency)

Influence of learning Functional Level Strategy:Quality

improving quality

Focus on as reliability”

Also have a to excellence- Lexus

JD Power indicate superior quality Level Strategy:Innovation

Focus on Innovation

Innovation for improving products and introducing new products Level Strategy:Customer Responsiveness

Pride in satisfying customer

Meeting needs in a timely

Customer surveys/dealer surveys Strategy

Penetration of US market through joint venture GM: NUMMI

Transferred experiences to owned plants

Presence in North America, Western China, Russia, India, America, Australia, and South

Maintain consistent management International Strategy

Toyota a Transnational Strategy

Low cost responsiveness

Introduced top to bottom to better serve local Corporate Level Strategy

has chosen to stay focused on a industry

Have not participated in integration but have introduced like Lexus Scion

Can be as a cash cow in automobile industry

alliances with suppliers realize benefits of vertical “The Toyota Way”

Dependence on employees

Promotes involvement creative thinking

by doing

Early stages of transformation:

80% Doing and 20% Training and The 5S are :



Sustain 1:Base your management on a long-term philosophy ,even at the of short-term financial goals 8: Use only reliable ,thoroughly technology that serves people and processes Toyota’s Practice

Problem solving

Team work style

Theory Y management

Needs Analysis Toyota Accounts

In Toyota, the fiscal year from

1 April to 31 March.

limited edition presentation

fiscal 2005, 2006, 2008, 2009. Goals

“By cars that reflect the of customers and society, Toyota target sustainable growth and to the development of the automobile industry.”

7,974,563 8,524,659 8,913,939

had a growth in unit sales 2005 to 2008 by = 20.32%

Net in Yen, in millions:

2005 2007 2008

¥18,551,526 ¥23,948,091 ¥26,289,240

Growth 2005 to 2008 = 41.70% Impact

Vehicle Unit in thousands of units:

Fiscal Fiscal 2009 % +/-

Fiscal Fiscal 2009 %+/-

15,315, 812 12,186,737 -20.4%

Toyota Origin

America 9,423,258 6, 222,914

Global 26,289,240 20, 529, 570 Global net income in Yen, in

Fiscal 2008 Fiscal

1,717, 879 (436, 937)

In year 2008/2009,Toyota experienced

a This result reversed the trend

since fiscal 2004/2005 Introduction Porter’s Forces Recommendations Evolution of

Toyoda Kiichiro founded motor company with influence from his father, Sakichi

Sakichi’s first was based around the invention of his loom

Sold company-wanted Kiichiro to use to study automobile industry

dominated by GM/Ford

Granted in 1933- mechanical engineering

20 vehicles in 1935-1,142 in 1936

learning and efficiency rised to the worlds largest automobile in 2008 Recommendations:

Thier Strategy is to Reduce production.

employee contract for lifetime Look at alternatives like production hours.

Focus on value added by the Kaban

Focus on Green manufacturing.

to focus on process innovation.

New should focus on maintaining share. Strategic Issues The greatly impacted the automobile globally- but demands were differently across markets

of keeping employees for life

gaining ground on Toyota in of production time

Increasing of going green

Transformation of new Five Force’s Analysis of the Industry

Risk of entry by new is low

Rivalry among established is very high

Moderate power of buyers

Low bargaining of suppliers

Moderately, increasing of substitute products. Factors of

Vehicle unit sales.

and services sales.

Price and sales incentives.


Research Development costs.

Fluctuation in exchange rates on the Yen and other currencies used by

Efficient use of production capacity. Ratios In fiscal year experienced a loss. This reversed the profit trend fiscal year 2004/2005 in Exchange Rates

Weakening of the yen against other currencies has a impact on Toyota’s revenues, income and net income whilst an yen has a negative impact.

Operating increased in 2006 by ¥587.2 and in 2008 by ¥252.1 billion because of exchange rate

One strategic solution is to localize by establishing production facilities in the markets of interest. Research Costs.

Toyota has to comply government regulations aimed at harmful effects on the environment, vehicle safety and improving economy.

RD activities are a major in achieving cost effective with these regulations.

increased its RD expenses in fiscal 2006 by ¥57.5 billion, a increase over RD spending in In fiscal 2007/2008, RD spending was higher at ¥958.8 billion. In 2008/2009, however, R D spending slightly. References

Positive corporate image work Associates not workers improvement ideas Principle continuous process flow to problems to the surface Principle “pull” systems to avoid Principle 5: Build a culture of to fix problems, to get quality right the time Principle 4: Level out the Principle 7: Use visual controls so no are hidden 14 Principles Principle 6: tasks are the foundation for continuous and employee empowerment Principle 9: leaders that thoroughly the work ,live the philosophy and it to others

Principle 10: Develop exceptional and teams who follow your philosophy Principle 11: Respect extended network of partners and by challenging them and helping improve Principle 12: Go and see for yourself to understand the situation Principle 13: decisions slowly by consensus considering all options, implement rapidly Principle 14: Become a organization through relentless and continuous improvement VRIO

Toyota Origin
Toyota Origin
Toyota Origin
Toyota Origin


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