In light of the above discussion on Ford, we can analyse Toyota across the dimensions of Leadership, Culture, Power/Politics and Structure. This will help us better understand whether Toyota, the second largest automobile manufacturer in the world, took a different management approach from Ford. As mentioned earlier, it is evident that both were fighting entirely different battles, albeit repercussions of which were similar. Ford was trying to keep its head above water as GM and Chrysler submerged in the subprime crisis’ fallout. On the other hand, Toyota was trying to ensure that the impact of this crisis, now affecting the larger automotive industry especially in terms of falling profit margins and sales volumes, could be limited at its doorstep …show more content…
Despite their status, they are not the dominant source of power since the company’ culture does not allow concentration of power in a single source. However, they have been a guiding force in times of crisis, especially when Aido Toyoda was at the helm and he helped Toyota become the largest automotive manufacturer by developing a focussed regional approach commercially. He exhibited an ability to ‘retool’ when he showed flexibility in directing a more regional approach to work in different markets as compared to implementing reliable yet universal processes in each region.
Structure:
After the famous recall of 2009, the organization structure was criticized for slow response time to address safety issues. Akio Toyoda implemented a new structure and it had three characteristics:
• Global Hierarchy
• Geographic divisions
• Product based divisions
The company was divided into eight geographic divisions and four product based divisions. In essence, the new organizational structure ensured that decision making process became faster, error-free and less
Organizational structure is a system used to define a hierarchy within an organization which improves operational efficiency by providing clarity to employees at all levels of a company. A systematically outlined structure can also provide direction for internal promotions, allowing companies to create employee advancement routes for entry-level workers. In other words, it identifies each job, its function and where it reports to within the organization. Harley-Davidson’s organizational structure, for example, assists centralized control of the business through the company’s arrangement of its components in terms of their interactions and functions. As one of the world’s oldest motorcycle manufacturers in the world, Harley-Davidson Inc. maintains this organizational structure and centers its current focus on a limited number of markets. While the business continues to grow by international expansion, Harley-Davidson’s corporate structure focuses mainly on the fact that most of the company’s revenues are generated in the United States. Thus, Harley-Davidson has a functional organizational structure that is based on the company’s current focus on the motorcycle markets in developed countries, especially the United States, in addition to ensuring centralized control of business activities. The basic characteristics of Harley-Davidson’s organizational structure include Function based groups, Centralization, and Global hierarchy.
Things went out well for Toyota and the years 2003 to 2007 could be inferred as the most profitable years in the company’s history. But it faced a major problem in the events of recession in 2008 and the recall crisis of 2009-2010. “Toyota Under Fire” describes the recall crisis in details and provides valuable lessons and leadership techniques to survive at the time of crisis and how to turn a crisis into opportunity by three principles – i) Build strong culture long before the crisis hits, ii) culture matters far more than decisions made by top executives, iii) Investing in
First off we have the best-selling pickup trucks. We have more experience than Chevy. We have been around since 1903. Even though our Motor Company been through countless downturns, the Great depression & the Great Recession, we continued to thrive. Our base engine in Ford trucks are larger than Chevy, which means there is initially more power, & we also offer more engine sizes to choose from.
The company’s superiority in the global market share was exhibited by overtaking Ford to become the second largest automobile company in the world. Therefore, those spending immense resources have valid reasons to do so (Hino 2006). However, a person wonders why the companies that study Toyota have not been in a position to replicate its performance. The reason behind this scenario is that those who study Toyota tend to focus on mere tools and tactics such as; the company’s basic operating principles, production cells and cords. However, these observers fail to study one of the main areas that leads to this company being outstanding which regular training and learning, which enables them to do their works better.
Each division is operating independently with its own division manager. Also, each division’s performance had been judged on its profit and return on investment (ROI). The company policy of decentralizing responsibility and authority for all
We live in the 21st century, which is considered to be the era of modern technology and sophisticated ingenuity. Yet up to this day, two brands have managed to keep up with the 21st century. Which includes the best technology in automotive industry and the capability of implementing sophisticated aerodynamics. Ford and Dodge have been head to head with each other since the early 1900’s. Both of these car brands are known to have built some of the best muscle cars out in the world. But what many people don 't know is that Ford and Dodge also represent a piece of freedom and America.
New United Motor Manufacturing Incorporated, the 1984 joint venture between Toyota and General Motors, was by all accounts a manufacturing success. NUMMI’s effectiveness was evidenced by the drastic change in output quality, employee morale, and overall cost—but while these great outcomes were recognized by GM, they were hardly leveraged. What supported these results were exactly the factors that radically set NUMMI apart from the rest of the GM family. Ultimately, GM’s failure to adapt the plant’s success was the result of a prideful conglomerate embodying a competitive internal structure and divisive culture so strong that it was unable to fully recognize and adapt to the fundamentally different NUMMI model.
The key distinguishing features of Organization 2005 consist in the abolishment and reorganization of the Matrix structure around three interdependent organizations: Global Business Units (GBUs), Market Development Organizations (MDOs) and Global Business Services (GBS). Furthermore P&G implemented several policies that empowered executives in order to facilitate faster decision-making, which in turn should promote innovation and increased agility on the market.
Ford in 2011 is on the rebound, having recovered from the darkest hours in the late 2000s. The company for the company is that many of its competitors are also rebounding, and there are significant long-run changes in the automobile industry. Ford needs to determine a strategy that will take the company through the next decade, and improve the company's competitive position. The company has four of the top fifteen best-selling cars in America, but also needs to set strategy globally, as many of the best automobile growth markets are overseas. Another strategic consideration is that CEO Alan Mulally remains in the process of changing the organizational culture at Ford, which had become stagnant and unresponsive to the changes in the industry environment.
Decision-makers, like sailors, need to know how to ride out a potential storm and to understand how the winds may change in the future. (World Economic Forum 2009) In global automobile field, Toyota’s faced several problems in European market at the entrance and what entry mode did Toyota choose? Why did they select those entry modes? And how did
The purpose of this report is to examine if the reasoning behind well-known car manufacturer, Toyota’s loss of revenue and leading market position is alone as a result of extensive product recalls following a fatal crash of a Lexus ES 350 on August 28th 2009. The journal article, “Toyota Crisis: Management Issue?” (Yuanyuan Feng 2010) provides an outline of the key factors that triggered the 2009 Toyota crisis, and explores whether the fall in the company’s returns by 19% were caused purely as a result of the recall and safety concerns, or something much deeper.
Today, Toyota has become the largest car maker in the world leading General Motors and top selling Auto Makers. The reason behind their success is being sharp and well thought and effectively implemented strategies. It has the source of strong competitive advantages in
Comparison and Contrast of General Motors and Toyota Motor Thomas Hong, Ph.D. The Impact of Technology on Organization University of Phoenix November 12, 2007
Toyota is a key player in global automotive market. Its structure constitutes if various production plants in different locations and a very strong branding which helps it capture a major market share. Like other enterprises, Toyota has several strengths and weakness which makes it what it is now. Toyota heavily invests in Research and development which helps it come up reputable product line which is spread out throughout the world because of its strengthening global distribution network however its recent product recalling, loose grip in key geographic areas and wrong allocation of resources shows that even a strong brand like Toyota has its weaknesses.
Toyota positioned itself in the American auto market and defined its organizational strategy as high quality, innovative engineering and producing some of the safest auto mobiles on the road, and in one fell swoop, the integrity and quality of their vehicles were not only brought into question, but many consumers looked elsewhere for their automotive needs. The Toyota group and its subsidiaries has had a prominence in Japan for years, but the Organization of Arab Petroleum Exporting Countries (OAPEC) embargo of 1973 allowed Japan to bring its kaizen work ethic to the US and begin to gain an automotive presence that allowed Toyota to compete with America’s big three: Ford, GM and Chrysler. The big three controlled the market up until this point and it would take some time but by 1980 Toyota was the fourth leading manufacturer in the US and poised to gain ground and by 2008 Toyota, Honda and Nissan made prolific jumps with around 32% of the market share. Unfortunately the economic recession slowed all manufacturers’ growth but trends such as forty-three-year-old Hyundai has surpassed 107 year-old Ford in global sells would mark the end of the big three reigns, with GM and Chrysler taking part in the controversial automotive bailout in 2009. This also harkened back to the belief those automakers had little vigilance on the market and their long term control left them vulnerable to better organizational strategies. Market growth in the US had become stagnant by 2008 so