Toyota 's Organizational Processes At Toyota

Toyota was thought to be the best quality car in the 1970s and 1980s but, due to Japanese competition, American car manufactures soon began to close the rankings gap. At the top of their game in 2010, Toyota had to stop manufacturing and order a large recall of automobiles. While leadership was probably considered great at the height of Toyota’s success, changes were obviously needed during the recall period and management needed to be as adaptable to those changing conditions. The only thing regarded as permanent in a market economy is change

Toyota grew at a record speed and could not keep up with the speed in which it was growing. They are a centralized company and Japan only made the decisions. This prevented the company to keep up with the safety problems. The process that Toyota external suppliers follow when improving product and making sure the product is functioning properly before shipping to Toyota needs to be improved before they release the product from their warehouse to be sent to Toyota. This problem began when the company started to rapidly grow. Toyota’s lack of communication led to the faulty gas pedal recall.

In the 1960's Toyota linked together quality, customer satisfaction, and profit. These became pillars for Toyota's foundation and the company's baseline for growth and expansion. In 2009, the company's recalls started with what was deemed a floor mat issue. “Over the next four months, the company recalled 3.4 million more vehicles in three separate recalls over and above the initial 3.8 million, for a total of more than 7 million” (Cole, 2011). The issues were linked to different things; Sticky gas pedals, more floor mat problems, software glitches, and electrical problems. But one fact remained, the percentage

It is arguable that Toyota’s ability to deliver on its ‘customer first, quality first’ policy is due to its organisational structure. Toyota’s organisational structure was based on a traditional Japanese business hierarchy in which the most senior executives. This centralised decision making system places the responsibility of all the decision processes solely on the most senior executives. This type of organisation structure is characterised by limited delegation of authority with all the information flowing downward. This structured was utilised within the global platform, which meant the production within American Toyota plants were heavily monitored by a Japanese counterpart. This was done in order to make sure that protocol was

Due to Toyota’s financial greed and unethical practice, vehicles were wrongly equipped with faulty brakes, sticking pedals and poor quality door looks, which caused death of many Toyota customers and hundreds of dollars in damages. When a company like Toyota acts in an ethically questionable manner, it causes the company to lose customers and develop a negative reputation. Customer tend to lose faith in the company and have to look for better service

This Process Identification and Improvement Plan will begin with a summary of the Toyota Motor Corporation and core commitment to safety, quality and volume. It will also refer to the case study review titled “Toyota: The Accelerator Crisis (2010), by Greto, Schotter, and Teagarden for a synopsis of the accelerator and automobile recall crisis that affected the company’s reputation, image and near financial collapse. It also identifies two distinct process areas have been targeted for

Madam Chair, Members of the Board good morning my name is Victoria Morgan and I am a member of the Organisational Communication team at Toyota Australia and today I have been asked to present to you a profile of our company.

Supplies are becoming more and more expensive. The bargaining power of suppliers is very important for Toyota’s survival. Toyota must produce and sell their vehicles so they have the profits to buy the materials that they need to build their cars. With out money they can’t buy supplies, which lead them to not producing vehicles.

Toyota’s superior technology was not enough in light of the recent recalls. As a result they had to reduce their organizational structure, which is no easy task. My observation is that Toyota could have closed a blind eye but instead decided to restructure and fix the problem without deviating from their core competency and mission.

Toyota has been one of the most trusted and dependable names in the automobile business. In late August 2009, Mark Saylor, an off duty cop, was traveling in Southern California with three of his family members, when his 2009 Lexus ES350 started to accelerate on its own. One of his family members called 911 and said the car had no brakes and they were going well over 100 mph. Mark’s car would hit another car and fall down an embankment where it would catch fire and kill everyone in the car. Investigating started and in mid the late September investigators believed the cause of the accident was wrong floor mats might have been installed in Mark Saylor’s Lexus. This was a shock to the US consumers that wrong floor mats were leading to fiery crashes. Toyota decided in late September that they were going to recall 4.2 million Toyota’s and Lexus because of faulty floor mats and sticky gas pedals. In October of 2009 the LA times published several stories that involved the accelerator problem with Toyota. There were nine separate investigating done by the National Highway Traffic Safety Administration (NHTSA), five cases that resulted in fatalities, and hundreds of complaints filed to the federal government. Toyota being one the best automobiles in the world let this go by the way side and it cost them dearly.

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.

Toyota Motor Corporation, affiliated with Japan’s Mitsui Chaebol, has gradually rank the NO.1 as an auto maker since 2008, whose brands include Lexus, Toyota, and other lower-end models. However, it’s recalling fact include ruins its reputation to a certain degree. On August 24, 2009, Toyota’s two joint ventures in China, Guangzhou Toyota and Faw-Toyota announced that set by its defects of its parts, since August 25, they would recall a large number of vehicles up to 688.314, including Camry, Yaris, Vios and Corolla car. In fact, continuous recall events of Toyota over years has greatly touched consumers never around the world, especially after the occurrence of recalling Lexus, a pride of Toyota, the myths about quality of Toyota has been widely questioned, What’s worse in the first 10 months of 2009, Toyota had recalled its vehicles for nine times worldwide, involving more than 6.25 million ones. Among 10000 netizens participating an online survey “Whether you will still buy Toyota motor”, nearly 73% respondents voiced they would not buy it. What’s more, a November issue of Automotive News predicted “more misery” for Toyota as “sales slip, floods delay, shoppers

They have a power culture which has a centralized decision making party. This culture has no flexibility, centrally rigid and is mono national thus, has contributed in failure to respond to the defects. Though the corporate culture is known for its efficiency but this culture in case of the Toyota has lead to wrong decision which enhanced the issues of the company.

main strategy for the North American market is to aim for higher sales, while raising the proportion of locally produced automobiles. Toyota Motor Corp have reached a stage where investments made over the last several years to expand production capacity are beginning to show returns and improved profitability can be expected. Toyota’s goal is to bolster local production through additional investment, and contribute to the regional economy by expanding its operations. At present, our production capacity in North America is approximately 1.25 million units (including our joint venture with GM). However, Toyota Motor Corp plan to boost this to 1.45 million units during 2003.

It has been created also a gap between Image and Vision. After the crisis Toyota's relationship with its main stakeholders (suppliers, national and international customers, employees, dealers and investors) was not so strong as before, because it was loosing its reputation. The investors and the suppliers were complaining because recalling million of vehicles, and the customers were disappointed because they were not receiving what they expected.