Case Study : Toyota Motor Company

2268 Words Jul 30th, 2015 10 Pages
Case study one: Toyota Motor Company
2.1
Toyota motor company was started when a famous Japanese loom inventor Sakichi Toyoda (1867-1930), wanted to produce motor vehicles (Nayebpur, 2007). The need for such enterprise arose because of the destruction of Tokyo’s street cars and trains in the 1923 Kanto earthquake. He gave this idea to his son Kiichiro Toyada (1894-1952), who was a mechanical engineer and provided him initial fund to experiment with automobile manufacturing. As a result, Toyota launched in first passenger car A1 in 1936 which surpassed the sales of General motors and ford in the Japanese market (Spear, 1999).
Toyota’s culture is steeped in tradition (Takeuchi, 2008) and its strengths were observed as follows:
1. Crisis management in Toyota was developed by keeping in mind that Toyota’s leadership in automobile industry is never safe.
2. Community management is maintained within the Toyoda family
3. Anything that is good for Toyota is taken in and assimilated by the management.
4. Even though the management is run by the family, decisions are taken by involving everyone.
5. Constant training of people and retaining them along with efficient use of resources.
2.2
Toyota is an industry leader in automobiles and is well known for its innovation and excellence in manufacturing through Toyota production systems. But the basics of it innovation is founded by its founder Toyoda’s five values (Nayebpour, 2007):
1. Contribute to the company by being faithful to the…
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