Management and Organization Spring 2019: Toyota Report Analysis

This report provides a comprehensive analysis of Toyota Motor Corporation, examining its organizational structure, specifically the tall structure, and its effectiveness in achieving business goals. It explores the application of modern management approaches, such as the systems approach, to address challenges like Brexit. The report further utilizes the STEEPLE framework to conduct a strategic environment analysis, considering social, technological, economic, environmental, political, legal, and ethical factors impacting Toyota. It highlights the company's responses to external factors like Brexit and its strategic objectives. The report discusses the impact of Brexit on Toyota, emphasizing the potential financial implications and the importance of strategic planning to mitigate risks and maintain competitiveness in the automotive industry.

Management and
organization spring 2019

Table of Contents
Management and organization spring 2019...............................................................................................1
INTRODUCTION ...........................................................................................................................................3
Task 1 ..........................................................................................................................................................3
Background of the company ..................................................................................................................3
Task 2 ..........................................................................................................................................................3
Organizational structure and how structure could help the company ..................................................3
TASK 3 .........................................................................................................................................................4
Modern management approach that help the company, with Brexit imminent ...................................4
TASK 4..........................................................................................................................................................5
Strategic environment analysis ..............................................................................................................5
CONCLUSION ..............................................................................................................................................6
REFERENCES................................................................................................................................................7

INTRODUCTION
Management And organizational are two different term in which
management means to manage the people in the systematic manner where
as organizational means defining and grouping of activities of the enterprise
and establishing the authority relationships among them. This report is
based on Toyota Motor Corporation which is Japanese multinational
automotive manufacturer which headquartered in Toyota city, Aichi, Japan.
Furthermore this report will cover the background of the company and also
identify the organization structure of the company and analysis how this
structure could help the company function effectively considering the
positive effect of Brexit. It will also discuss the modern management
approach that could help the company with Brexit imminent. And at last by
the help of STEEPLE framework it will conduct a strategic environment
analysis of Toyota and also identify one current innovative strategic
objective of the company in wake of Brexit.
Task 1
Background of the company
Toyota is a Japanese multinational automotive manufacturer which headquartered in Toyota
City, Aichi, Japan. Toyota has 364,445 employees worldwide. And as of September 2018, was
the sixth largest company in the world by the revenue. Toyota was founded in 28 august 1937
as 81 years ago as spin off from his father‘s company Toyota Industries to create automobiles.
The founder of Toyota was Kiichiro Toyoda. The major products that serve by Toyota are
Automobile, luxury vehicles, commercial vehicles, engine. And the major services serve by it is
banking, financing and leasing. The revenue of Toyota is 29,379,510 million and operating
income 2399,862 million. Toyota is world‘s market leader in sales of hybrid electric vehicles,
and also one of the largest companies to encourage the mass market adoption of hybrid
vehicles across the globe. Toyota is listed on the London stock exchange, New York stock
exchange and Tokyo stock exchange. The scope of organization is very wide and objective is to
increase its sales (Lal, 2015).
Task 2
Organizational structure and how structure could help the company
Organization structure defines how activities such as task allocation, coordination and supervision are
directed toward the achievement of organization aims. Organization need to be efficient, flexible,
innovation and caring in order to achieve competitive advantages. Toyota uses tall organization

structure as Toyota is large company and tall structure will be best for the organization as large business
often required a taller hierarchy. In these as organization grow the number of management levels
increases and the structure grows taller. As in Toyota being one of the leading manufacturers in the
world the company employees a hierarchical structure which supports its business goals and strategic
aims. The success and effectiveness of the company in maintaining these function makes Toyota a
leading company across the world. By the help of tall structure there are several layers of management
by which the communication become very effective and also the organization will able to promote more
number of employees to management position and by these the employees will be motivates to work
hard to get promoted. And gives there hundred percent and become more loyal to the company.
Employees who see potential growth opportunities tend to work harder as they strive for higher level
position. And also the decision making of the Toyota became effective as the senior managers will take
the decision. And by the help of tall organization structure there will improvement in coordination and
less conflict as all the employees know their roles and responsibility very well so there will be less
confusion in terms of jobs. So tall organization structure is one of the most effective structures. And also
Toyota faces an uncertain future following Britain’s vote to leave the European Union ,as there was
direct impact of a 10% tariff ,which is currently applied by the EU on countries without a trade deal
could cost Toyota $490 million annually (Omotayo, 2015).
TASK 3
Modern management approach that help the company, with Brexit imminent
One of the basic modern approaches that help Toyota is system approach which helps the
business to run in effective manner. In system approach the organization viewed as organic and open
system which is composed of interacting and interdependent parts called subsystems. In these the
management is an organized whole made up of subsystems which interact each other in the unity and
effectively. This helps the Toyota to work in the organize manner as these approach is based on
generalization that everything is inter related and interdependent. In Toyota there are many sub parts
or function which form a complex system and by these the organization work in unified way. In these
the various sub section has the boundary which determine which section are internal and external. In
system approach attention is paid to the effectiveness of the system rather than effectiveness of sub
system. By the help of system approach Toyota performance of different department improve and also
it helps to increase the production of the business. The idea of system approach can be applied at an
organizational level. The system approach is considered both general and specialized system. The
specific management system generally consider or includes the analysis of organizational structure,
information, planning , control ,direction , job design etc. and where as general system approach to
management is basically concerned with formal organization and the concepts are relating to
techniques of sociology psychology and philosophy. System approach is using for Toyota as by the
impact of Brexit Toyota can aims to achieve its goals and objectives and also it view organization as a
open system . System approach keeps a balance between conflicting forces and events which helps
business to run in the effective manner. And this approach was very helpful at the time of Brexit and it is
the most systematic approach (Eriksson-Zetterquist, Kalling, and Styhre, 2015).

TASK 4
Strategic environment analysis
STEEPLE is one of the concepts that help the organization to used to analysis all the macro environment
factors that are used in business analysis and also the factors which influence as Toyota.
Social factor – social factor influence Toyota to the large extent. As increasing consumer awareness and
concern about environment implication of driving a vehicle is the most important social tendency to be
addressed by automobile manufacturers. Toyota is also greatly impacted by the other social factor such
as changing family values, change in consumer taste and preferences and the opinion towards the
automobile industry (Siapei, 2015).
Technological factor-as Toyota is the first company to launch a hydrogen car. The company gives more
importance to research and department looking for ways to offer vehicles with alternative fuel option.
As using advance technology Toyota gives a tough competition.
Economic factor – there are different set of economic factor such as the rate of inflation, currency
exchange rate, macro economic climate in the country and in the industry ,cost of labor and tax rate
that have direct implication on Toyota. As during the time of Brexit the GDP of the country decreases
which directly influence the objective of Toyota. And also currency exchange rate fluctuation is a major
macroeconomic factor that has direct affects Toyota reported revenues.
Environment factor – Before entering into new market or starting new business it is important to study
the environmental factor. Sometime environment factors include weather, climate changes, law and
regulating environment pollution, recycling, reusing waste ,attitude towards and support for renewable
energy etc.
Political factor – political factor which influence Toyota are political stability, the impact home lobbying
groups, major geopolitical tendencies etc. Toyota has experience direct impact of political factor. For
example it has faces many uncertainties at the time of Brexit as this situation cause a negative impact on
the volume of Toyota revenues. And other one is poor relation between china and Japan influence
Toyota to the large extent (More, Probert, and Phaal, 2015).
Legal factor - Toyota should carefully study the legal framework after the time of Brexit as many new
rules and regulation was imposed on automobile industry. This may include discriminating law,
employment law, consumer protection law etc.
Ethical factor – ethical factors include the general code of ethics followed by the most of the people in
the region. It is important for the Toyota to work in the ethical manner and follow all the code of
conduct. This will help Toyota to attract large audiences and helps to increase the sales (Stark, 2015).

CONCLUSION
This above report is based on management and organizational spring in which it concludes the
background of the company and also it identify the organizational structure that is tall structure which
is used in the above report as it is the most effective structure and helps the organization to run in the
smooth manner. Furthermore, it has concluded the modern management approach that is system
approach which helps to run the organizational department in the systematic way and helps to achieve
the goals of the business. Al last it has concluded that STEEPLE analysis helps the organization to
conduct the strategic environment analysis which helps to identify the macro factor which effect the
business.

REFERENCES
Eriksson-Zetterquist, U., Kalling, T. and Styhre, A., 2015. Organisation och organisering. Upplaga 4. Liber,.
Lal, R., 2015. A system approach to conservation agriculture. Journal of Soil and Water Conservation,
70(4), pp.82A-88A.
More, E., Probert, D. and Phaal, R., 2015, August. Improving long-term strategic planning: An analysis of
STEEPLE factors identified in environmental scanning brainstorms. In 2015 Portland International
Conference on Management of Engineering and Technology (PICMET) (pp. 381-394). IEEE.
Omotayo, F.O., 2015. Knowledge Management as an important tool in Organisational Management: A
Review of Literature. Library Philosophy and Practice, 1(2015), pp.1-23.
Siapei, I., 2015. Organizational Structure and Strategy Implementation at Geothermal Development
Company in Kenya.
Stark, J., 2015. Product lifecycle management. In Product lifecycle management (Volume 1) (pp. 1-29).
Springer, Cham.