Enterprise Culture: A Comparative Study of Toyota and Tesla

This report discusses the definition and concept of enterprise and entrepreneurial culture. It explores the history, sector, and turnover of Toyota and Tesla. It also analyzes the organizational culture of both companies and its implications in the business and the industry. The report concludes by discussing the reasons why either the corporate or the startup has a better enterprise and entrepreneurial culture.

ENTERPRISE CULTURE 1
STUDENT NAME
COURSE
INSTITUTION
DATE

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Executive Summary.
This report seeks to discuss the definition and concept of enterprise and enterprise and
entrepreneurial culture. It also seeks to know the history, sector, and turnover of a corporate and
startup business. The report also seeks to know the organizational culture of the corporate and
the startup business and its implications in the business and the industry it belongs. Also, it seeks
to know the reasons why either the corporate or the startup has a better enterprise and
entrepreneurial culture.

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Table of Contents
Introduction....................................................................................................................................4
Literature Review..........................................................................................................................5
Case Study......................................................................................................................................5
Analysis...........................................................................................................................................9
Findings........................................................................................................................................13
Conclusion....................................................................................................................................13
References.....................................................................................................................................15
Appendices....................................................................................................................................17

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Introduction.
Enterprise is perceived to be roughly the use of entrepreneurial characteristics in an
extensive range of diverse conditions. Entrepreneurship is the use of entrepreneurial
characteristics within a big company. The association amongst these redefined ideas is
explored plus the matter of whether private enterprise can be informally engineered through
teaching and preparation is addressed. A description of what establishes "enterprise culture"
is then associated with education in addition to training.

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Literature Review.
Enterprise is another term for a business or company, however, it is mostly associated with
commercial ventures. Individuals who have business success are regularly stated as
“enterprising.” Examples of enterprises are sole proprietorship, corporations and partnership
companies.
Enterprise culture has been well-defined as about the values, guidelines, beliefs, and expectations
in the management and conduct of a business especially internal shareholders, which reflects
within as well outwardly the conduct of an organization. The growth of an enterprise isn't
possible devoid of a simultaneous alteration of its values. The altering of ethos in the mind of
organization's stakeholders is regularly a very tough and long-lasting procedure. The ethos of the
larger society in addition to the ethos of an organization is very multifaceted. Entrepreneurial
culture comprises the values, principles, behaviors, artifacts plus reward schemes that influence
individuals to conduct on an everyday basis. It’s driven by topmost leadership and turns out to be
deeply entrenched in the business through many processes, reward schemes, and behaviors.
Entrepreneurial culture comprises all the actions that might or might not improve commercial
performance (Ratten 2014).
Case Study.
This report will discuss one corporate in the automotive industry that is the Toyota Company and
a start-up business that is Tesla Company.

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Toyota.
Historical background
Toyota Motor Company began in the year nineteen thirty-three as a split of the Toyoda
Automatic Loom Works Ltd, a Japanese producer founded by Toyoda Sakichi. Its initial
production vehicle, the exemplary AA sedan, was out in the year nineteen thirty-six. The
subsequent year the unit was named the Toyota Motor Company Ltd, a motorized spin-off
controlled by Toyoda Kiichiro, Sakichi’s child. Toyota subsequently started several related
businesses, including Toyoda Machine Works Ltd in the year nineteen forty-one and Toyota
Auto Body Ltd in the year nineteen forty-five. Nevertheless, faced with worn-out facilities
besides a messy economy in the outcome of the 2nd world war, the business was affected slightly
in its normal automotive manufacturing (Andersson 2015).
Between the years 1960 to 1970, the firm experienced a rapid expansion and venture in the
exportation of vehicles in the external market. Some of the businesses such as Hino motors ltd
that produces buses and large trucks were overtaken by Toyota. Toyota has dominated Japan’s
automobile industry for years as the key manufacturer. Toyota prospered and penetrated the
American market due to the affordable price for the vehicles which are very reliable. Toyota
corolla was later launched in the United States in 1968.
The business took its current name in the year nineteen eighty-two when Toyota Motor Company
was combined with Toyota Motor Sales Company Ltd. Two years well ahead Toyota combined
with General Motors Corporation in the formation of New United Motor Manufacturing Inc., a

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double-brand manufacturing firm in California, where Toyota started the United States
production in the year nineteen eighty-six (Bacq & Eddleston 2018).
Sector.
Toyota has developed from its roots in Japan through the nineteen thirty’s to grow into a large
international corporation. It ousted General Motors and grew into the world's major automobile
manufacturer in the year two thousand and eight. It captured the award of the supreme profitable
automobile manufacturer with eleven billion dollars in profits in the year two thousand and six
together with increased sales in, amongst other nations, the United States. The global head office
of Toyota is situated in its home-based nation in Toyota City, Japan. Toyota brands
comprise Scion plus Lexus, in addition, the business is a fragment of the Toyota Group. Toyota
also holds a fifty-one percent of Daihatsu, besides a seventeen percent of Fuji Heavy Industries,
which produces Subaru cars. They also bought a six percent stake of Isuzu Motors Ltd. besides
presenting Isuzu diesel expertise into their merchandises (Bhachu 2017).
Turnover.
Toyota had over-all net revenues of roughly 29.4 trillion Japanese yen in the financial year of
2018. Operating income of Toyota was approximately 2.4 trillion Japanese yen in the fiscal year
of 2018. Net income of Toyota was approximately 2.6 trillion Japanese yen in the fiscal year of
2018 (Burnett & Danson 2017).

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Tesla.
Historical background
The company is an American based manufacturer for electric vehicles. The company was found
in the year 2003 by Martin Ebernard and Marc Tarpenning who were American based business
persons. The company was created to improve the development of electric sports vehicles.
Martin Eberhard was Tesla’s chief executive officer and Marc Tarpenning its chief financial
officer. Capital for the business was got from a range of sources, particularly PayPal co-founder
Elon Musk, who donated more than thirty million dollars towards the new project and worked as
chairman of the business, beginning in the year two thousand and four (Burns 2016).
In the year two thousand and eight the company launched original vehicle, a perfect roadster that
was electric driven. Throughout the business experiments, it attained a sole charge in each
394KM it covered. IN late of the year two thousand and seven Eberhard stepped down as Chief
Executive Officer plus president of tech and linked with the review board of the business. It was
declared in the year two thousand and eight that he had left the business, though he continued as
an investor. Tarpenning, who stood as vice president of electrical engineering division,
supervising the growth of electronic plus software structures for the Roadster, he too left the
business in the year two thousand and eight. Musk took over as Chief Executive Officer. In the
year two thousand and ten, Tesla’s initial public offering fundraised some two hundred and
twenty-seven million dollars.

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Starting in the year two thousand and twelve, the company established Superchargers based in
Europe and United States which were locations that were intended for rapid cell charging, this
saw the Tesla owners incurring no additional costs. The company moreover specialized in
radiation energy merchandises. A collection of cells for hoarding current from astral generator
for usage in residential places plus places of work was revealed in two thousand and fifteen.
Tesla bought the astral panel company Solar City in the year two thousand and sixteen. In the
year two thousand and seventeen the company altered its label to Tesla Inc., to reveal that it no
longer traded just vehicles (Burrows 2015).
Sector.
The Tesla automotive plan aims to match real merchandise that promote technology cycles plus
original focus on rich consumers. After that it relocated to the marketplaces for lesser cost
value. The knowledge regarding the electric train to be applied by an individual presentation
would remain upgraded and compensated through the trade with previous presentations (Cross &
Payne 2018). The value for a low capacity roadster was one hundred and ten thousand dollars.
Design S plus Model X aimed at the wider gorgeous marketplace. The 3rd Model is targeted at a
greater tone. The commercial approach is shared in the tech field.
Turnover.
Tesla had overall net revenues of approximately11.8 billion US dollar in the 2017 fiscal year.
The income for operations of Tesla was approximate -1.63 billion US dollar in the fiscal year of
2017. Net income of Tesla was a roughly -2.0 billion US dollar in the fiscal year of 2017.

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Analysis.
Toyota organizational culture is grouped into the following four categories.
Collaboration.
Toyota uses groups furthermost in its business regions. One of the corporation’s values is that the
interaction of teamwork guides to greater skills and achievement. This share of the
administrative culture highlights the participation of workers in their own teams. To ensure that
teamwork is properly integrated into the organizational culture, every Toyota employee goes
through a teambuilding training program (Dale 2015).
Continuous Development via Learning.
Toyota’s philosophy assists the growth of the organization by way of a knowledge-based firm. A
knowledge-based firm uses info increased via the actions of individual employees towards
developing strategies plus agendas for improved outcomes. Toyota’s philosophy highlights
education by way of a method of innovating answers to difficulties. This way, the business is
capable of nonstop improving the procedures plus productivity with the backing of its
philosophy (Duman 2015).
Value.
Value is next to the core of Toyota’s administrative philosophy. The achievement of the business
is normally credited towards its capability to offer top quality vehicles. Towards efficiently

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integrating value in the aforementioned administrative philosophy, the organization utilizes Code
number five of “The Toyota Way”, which states, “build a philosophy of ending to fix difficulties,
to get value right the initial time.”
Privacy.
Toyota’s administrative culture has a substantial degree of privacy. Nevertheless, after the
restructuring, the business’s organizational philosophy today doesn’t highlight privacy as
considerably. For instance, difficulties met in United States firms are now distributed, examined,
and resolved in the North American commercial unit of Toyota (Farny et al. 2016).
Impact of Toyota philosophy.
The features of Toyota’s administrative philosophy allow the business to carry on developing.
The invention is grounded in constant development via education. Quality development plus

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problem resolving are attained via the actions of work groups. Nevertheless, the privacy
characteristic of Toyota’s administrative philosophy presents potential problems since it
decreases managerial elasticity in quick problem resolving (Gherhes, Vorley & Williams 2018).
Tesla Organizational philosophy.
Tesla Company has a creative problem-solving philosophy. This kind of culture inspires workers
towards developing lucrative answers to present plus emergent difficulties in the objective
marketplace.
Move Rapidly.
Rapidity upsets Tesla Company’s competitive gain. This feature in the firm’s philosophy
emphasizes the significance of workers’ ability towards rapidly answering to developments plus
variations in the worldwide marketplace. For instance, the firm’s human capital offers the
competency towards developing pioneering merchandises that meet or else surpass those as of
rival motorized firms. This approach, Tesla’s business philosophy facilitates professional
flexibility through rapid replies to present matters besides tests in the worldwide automotive
business (Henry, Hill & Leitch 2017).
Constantly Invent.
The invention is on the core of Tesla Company. This characteristic in the administrative culture
concentrates on the endless way of the invention at the firm. As the company constantly
researches besides come up with solutions that increase current vitality packing product plans.
Herein perspective in the commercial exploration, constant invention aids improves innovative

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electric vehicles plus related merchandises. Continuous innovation upholds the competitive gain
necessary to deal with the robust force of manufacturing competition established in Porter’s Five
Forces examination of Tesla Inc. The firm addresses this necessity through a business culture
that recompenses constant innovation. Executives motivate employees towards contributing to
the constant invention in business procedures and output (Jones & Iredale 2014).
Reason like Proprietors.
Tesla uses its organizational philosophy as an instrument to uphold a mentality that backs
commercial development. As the enterprise influences its staff towards thinking as if they control
the firm. This control mentality backs Tesla’s enterprise dream and mission declarations by
inspiring workers towards taking duty and culpability into their occupations besides in the
general execution of the international trade. The control mentality is a prevailing social issue that
assists raise plus reinforce the honesty of industries in numerous sector. This business cultural
characteristic brings into line workforces with the firm’s strategic objectives, thus improving
strategic efficiency (McInnis-Bowers, Parris & Galperin 2017).
Impact of Tesla’s Organizational Culture.
Tesla’s firm culture puts importance on the invention. A benefit of this characteristic is it allows
the business to improve high-tech yields that appeal to the clients. As, Tesla vehicles, together
with the corporation’s labeling, they have a growing portion of the motorized share. This benefit
line up with Tesla’s general competitive policy plus intensive development policies. The
business philosophy is likewise beneficial for instance in the provision for instant reply plus
problem resolving. This characteristic keeps the firm up-to-date with fresh expertise although

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making its cars effective plus applicable to consumer’s wants and fondness (Allen & Truman
2016).
Findings.
According to the analysis above it is clear that big corporates have a better enterprise and
entrepreneurial culture since they will strive to defend their core base like the Toyota company
has been innovative in coming up with its own brand of electric cars to displace startups like
Tesla. Another reason is that big corporation like Toyota have a repeatable successful formula
which enables the big corporates to have successful subsidiaries. Although startup business is not
ideal, it has its various advantages and disadvantages. Tesla Motors has the advantage like
reaching a wide audience due to its powerful branding combined with its automobiles. Likewise,
it's fast in problem-solving by embracing new technologies and by being relevant to consumers’
needs and fondness. A drawback of Tesla’s administrative philosophy is its burden on workers
towards continuously innovating. Invention aids the enterprise, however it places pressure on
social capital. Likewise, Tesla’s commercial structure imposes restrictions on the receptiveness
of employees, thus countering some of the results of the commercial culture in enabling speedy
decisions plus actions towards addressing fears in the motorized business.
Conclusion.
From the findings, it is clear that big corporates have a better enterprise and entrepreneurial
culture since they will strive to defend their core base like the Toyota company has been

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innovative in coming up with its own brand of electric cars to displace startups like Tesla.
Another reason is that big corporation like Toyota have a repeatable successful formula which
enables the big corporates to have successful subsidiaries. Although startup business is not ideal,
it has its various advantages and disadvantages.

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References.
Allen, S. and Truman, C., 2016. Women in business: Perspectives on women entrepreneurs.
Routledge.
Andersson, M., 2015. Start-up rates, entrepreneurship culture, and the business cycle: Swedish
patterns from national and regional data. Innovation and Entrepreneurship in the Global
Economy: Knowledge, Technology and Internationalization, 162.
Bacq, S. and Eddleston, K.A., 2018. A resource-based view of social entrepreneurship: how
stewardship culture benefits scale of social impact. Journal of Business Ethics, 152(3), pp.589-
611.
Bhachu, P., 2017. Immigration and entrepreneurship: culture, capital, and ethnic networks.
Routledge.
Burnett, K.A. and Danson, M., 2017. Enterprise and entrepreneurship on islands and remote rural
environments. The International Journal of Entrepreneurship and Innovation, 18(1), pp.25-35.
Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
Burrows, R. ed., 2015. Deciphering the Enterprise Culture (Routledge Revivals):
Entrepreneurship, Petty Capitalism and the Restructuring of Britain. Routledge.
Cross, M., and Payne, G., 2018. Work and the enterprise culture. Routledge.

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Dale, A., 2015. Self-Employment and entrepreneurship: notes on two problematic concepts.
In Deciphering the Enterprise Culture (Routledge Revivals) (pp. 55-72). Routledge.
Duman, L., Bedük, A., Köylüoğlu, A.S. and Ay, K., 2015. Entrepreneurship Culture at SMEs: A
Case Study in Konya. Procedia-Social and Behavioral Sciences, 207, pp.492-501.
Farny, S., Frederiksen, S.H., Hannibal, M. and Jones, S., 2016. A CULTure of entrepreneurship
education. Entrepreneurship & Regional Development, 28(7-8), pp.514-535.
Gherhes, C., Vorley, T. and Williams, N., 2018. Entrepreneurship and local economic resilience:
the impact of institutional hysteresis in peripheral places. Small Business Economics, 51(3),
pp.577-590.
Henry, C., Hill, F., and Leitch, C., 2017. Entrepreneurship Education and Training: The Issue of
Effectiveness: The Issue of Effectiveness. Routledge.
Jones, B., and Iredale, N., 2014. Enterprise and entrepreneurship education: towards a
comparative analysis. Journal of Enterprising Communities: People and Places in the Global
Economy, 8(1), pp.34-50.
McInnis-Bowers, C., Parris, D.L. and Galperin, B.L., 2017. Which came first, the chicken or the
egg? Exploring the relationship between entrepreneurship and resilience among the Boruca
Indians of Costa Rica. Journal of Enterprising Communities: People and Places in the Global
Economy, 11(1), pp.39-60.

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Ratten, V., 2014. Future research directions for collective entrepreneurship in developing
countries: a small and medium-sized enterprise perspective. International Journal of
Entrepreneurship and Small Business, 22(2), pp.266-274.

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Appendices.
Tesla’s Roadster made no tailpipe releases, as it didn’t use an interior-combustion machine.
Tesla Motors established that the vehicle attained efficiency scores that were alike to a petrol
mileage of one hundred and thirty-five miles per pint. The vehicle’s electrical motor was power-
driven via lithium-ion cells regularly used in PC batteries that might be re-energized from a
normal electric outlet. Notwithstanding a federal tax incentive of seven thousand five hundred
dollars for buying an electric car, the Roadster’s price of one hundred and nine thousand dollars
made it an expensive item.