Toyota Case Study

2241 WordsMay 6, 20139 Pages
T Organizational structure and environment: case study Toyota is one of the biggest manufacturers in the world; it is a huge global company as well. Whit the world economy climate changing, Now Toyota is in the case of a sensitive period. There are some issues and challenges that company has to confront. This assignment is a case study of Toyota. The characteristic of Toyota’s structure and environment will be explored and discussed. Issues of Toyota will be connected with company’s structure and environment. The organization theory will be used to explore what issues and how did issues happen in the Toyota. The author will use some evidences and examples to support his arguments. Toyota was established by Sakichi Toyoda in 1937. The…show more content…
The mechanistic structure focuses on high complexity, formalization and centralization. Organic structure is more flexible than mechanistic, this structure pay more attention on lateral communication and coordination. Toyota is like a mix management system, the company is formalization and centralization, but otherwise, the Toyota Production System makes company less hierarchy than mechanistic. (Spear & Bowen P100-101) Organizational Environment Environment can be thought the factor outside and can influence the organization. Hatch & Cunliffe (2006 P65-68) describe that there are two parts can be concluded with environment: the interorganizational network and general environment. The interorganizational network has several points, it show the relative factors of organization in the network, unions, regulatory agencies, customers, partners, competitors, special interests and suppliers. Otherwise, there are several factors throughout network; they are wider than network---the general environment: social sector, cultural sector, legal sector, political sector, economic sector, technology sector and physical sector. Operating an organization needs to considerad several factors, the social division of labor is a key point, and it can not be controlled by one single organization or located in a single place. The specialization

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