Strategic Leadership and Management Report: Toyota Company Overview

This report provides a comprehensive analysis of Toyota's leadership and management practices. It explores the company's strategic leadership, including transformational and entrepreneurial leadership styles, and examines the challenges associated with these approaches. The report delves into issues such as organizational behavior, ethical conduct, and the application of organizational and institutional theories within Toyota. It highlights specific challenges faced, including questionable management practices, poor corporate governance, and the impact of stakeholder theory on the company's operations. The report also discusses the importance of business ethics, particularly concerning safety regulations and the company's responses to safety defects. The analysis covers key aspects such as intellectual stimulation, individualized consideration, and the role of leaders in fostering a positive work culture. The report concludes with a discussion on how Toyota's leadership impacts its global market position and its commitment to continuous improvement (Kaizen).

Managing Leading and Stewardship
Name of the Student
Name of the University
Author’s Note

1
1.0 Executive Summary:
The strategic leadership is considered important that will help in enhancing the workability of the
business. Most organizations utilize an effective leadership that will help in enhancing the
management of the business process in an effective way. The application of the relevant
leadership practices ensures the growth opportunity of the business in the international ground.
In other consequences, it is suggested that the management system requires handling the business
procedures in a secure and systematic way. The efficient leaders take the active participation in
the business process to resolve the emerging situational crisis or challenges. From this report, an
analysis can be made that the business provision for the Toyota organization needs to apply the
several theoretical approaches. In this report, the organizational theory will be analyzed on the
topic in an effective manner. Moreover, an evaluation of the several issues on the discussion part
will be explained.

2
Table of Contents
2.0 Introduction and background of the company:..........................................................................3
3.0 Issues identified and analysis:...................................................................................................3
4.0 High level recommendation:......................................................................................................5
5.0 Conclusion:................................................................................................................................6
References........................................................................................................................................7

3
2.0 Introduction and background of the company:
The Toyota Company has set a rapid pace in the automobile industry and is regarded as
the most reputable organization in the automobile industry. Since 1937 it has embraced the
strategic leadership qualities that has helped them in its further expansion in the mere future. The
strategies of the leadership have made the company embrace certain generic growth and strategy.
The strategic leadership process helps in undertaking the positive decisions beneficial for the
company. Toyota is looking forward to develop the relevant strategic decisions to secure the
competitive edge in the business market. Toyota has been concentrating on improving the
leadership and operational practices to sustain the strengthened and successful position.
Moreover, it can be stated that the success of the company depends on the efficient leadership
practices. The implementation of such strategic process signifies the usefulness in participating
in the global market associated with intense competition. This can be considered the main reason
behind why the Toyota company has gained a good reputation for its products in the market. The
primary focus is on the entrepreneurial and the transformational leadership in the organisation
that has been embraced for its future growth and success (Pongpearchan, 2015). Toyota has
sought to contribute to become a developed society that will help in manufacturing the various
automobiles. The focus on this operational strategy is much opportune to increase the sales ratio
in the competitive market. The key personnel and the facility of the Toyota are based on the
various corporate entities and the business activity that has its production growth around the
globe. There is a need to discover the various non-automotive pursuits of the Toyota and the plan
tours that are much open to the public.
3.0 Issues identified and analysis:
Undertaking the transformational leadership style is much beneficial in ensuring
progress and changes in the automobile sector. However, there are some of the specific
challenges found in this leadership style. It has been evident that the transformational leaders
have faced several challenges that include implementing on the changes, inspiring followers,
making a permanent change and its requirement of an input change in the industry. It is quite
evident that the questionable management practices are solely responsible for affecting the wok
culture at the Toyota organization. Moreover, there is a need to resolve the negative impacts of
the business. Accounting practice and poor corporate governance are the major factors that

4
question the management practices in the business. The Toyota Company has ethical conduct
and high morals as well as set standards that helped the pioneer leaders to uphold the
organization to date have embraced transformational leadership. The employee should be
motivated in order to produce enhanced level in the performances.
Organizational behavior is regarded as the major factor for experiencing the rapid
growth in the profit markets of the global market (Campbell and Strikwerda 2013, pp. 4-12). The
Toyota organization follows the organizational hierarchical structure that needs to be maintained
for a systematic work culture in the business environment. The leaders are considered to play an
important role in the development of the organization. For an instance, the work culture will
enhance the improvement of the leadership traits. Thus, it eventually facilitates the development
for the organizational behavior and also making them experience the healthy business across the
international platform. This type of leadership will help in inspiring the morale, the motivation as
well as the performance of the job (Fisher, Campbell and Svendsen 2012, pp.26-48). In this sort
of leadership, the leaders are able to comprehend the strengths and the weaknesses of the
employees that will help them to assign employees with the task that is geared in achieving them
to get a high rate of performance. When this type of leadership the leader and helps to create an
excessive power that might affect the organization in a negative manner (Muenjohn 2015)
It is quite evident that the leadership in the Toyota Company has made an intellectual
stimulation that has accelerated the individualized consideration as well as the intellectual
stimulation. The sole aim of bringing in this transformation is that the Toyota Company that has
used various applications that is relate to the strategies and the new concepts of the management.
These attributes is take by the employees of the organization with high regard and this
exemplifies his charisma. The strong personality of the leadership has always been challenging
the norms of the organization through the intellectual stimulation. This has been illustrated that
when the Toyota organization has been abandoned the revolutionary change in redesigning the
company’s operations and plants. Toyota has been objectified in believing that the decisions
must be from the stakeholders that are involved in opposing the top most executives. There is a
need to add the various ideas that has been geared in creating several products that are expensive
as well as can be opposed by the competitors (Engelen et al., 2015).
The application of organizational theory in Toyota helps in sustaining the remarkable
position and building the reliable, practical, and affordable vehicles for the mainstream

5
consumers. In order to quench the thirst of the customers there is a need to fulfill their needs so
that the organization feels determined to push the global stand of the Toyota organization
amongst the other local automobile contenders that needs to emphasize on the performance and
the styling. It is guaranteed that the Toyota organization has representatives that will comprehend
why the need of the progressions exemplified his vision and brings the enterprise for change. The
acceptance of the workers will set the commendable vision for bringing changes in the future
operational practices (Pongpearchan, 2015)
The institutional theory is regarded as the theory that has deep resilient aspects that is
based on the social structure of the Toyota organization. Considerations is made on the process
structures that has the schemes, norms, rules and the routines that has become more established
as the authoritative guideline for the social behavior. The institutional theory is basically
concerned for the relationship between the organization and the set of actors that are found in the
environment. Toyota is such an organization that adopts the various practices that are accepted in
a legitimate way within the organisational field. The competitive pressures that are faced by the
organization have an impact on it. In case of the institutional theory in the Toyota organization
the choices are constrained by multiple pressures from the external sources. They often face
competitive pressures that may depend on the impacts by the various external actors in the
environment. Toyota is also building up with the legitimate acceptance of the various external
stakeholders. Operations have been made within the social framework of the various norms and
the assumptions and Toyota is regarded as having the appropriate behavior.
There are several fundamentals to the stakeholders theory that deals with addressing and
managing the various values and the morals of the Toyota Company. In Toyota organization the
recent brake pedal recall from the subsequent events from the US transportation that is based on
the safety measures. It has almost resulted to $16 million in the fine for the Toyota organization
for not releasing the problem and even hiding those defects (Engelen et al. 2015). There is
various large company that produce the product for the public’s that has its safety measures as an
issue that has its brake pedal problem that was first noticed by Toyota even before 2009. An
effort has been included and is made interesting by the stakeholders by making them deal with
the problems. The Toyota organization has also included the various government safety agency
in the process that is one of the best example that can be shown in the stakeholder theory. There
is a need to meet the safety measures of the organization.

6
The leadership position is generally influenced by the contribution of the self-employed
person. There is a need for involvement in the organization of the different employees that
intends to attain a common goal. There is a need to entail on the use of the entrepreneurial
behavior that consists of the various risks in the optimization level as well as employing the
various innovational strategies that has the sole aim of taking advantage of the various
opportunities that is available. There is a need to encompass on the use of the various skills that
are related to the individual entrepreneurship in the environment in a much bigger way. This can
be considered as the leadership that has a strong determination in attaining the goals that are set
in the organization (Cosh, Fu and Hughes 2012, pp.301-317). The category of the leaders needs
to make their presence and take their own drives that are for the representatives that shows
inventiveness and reliably seek after new opportunities. Regardless that they do not succeed
there is a possibility that they utilize the attempts that has been made for future attempts (Koryak
et al., 2015).
The business ethics plays an important role in any organization. Toyota admits that there
is a purpose to neglect the safety concerns and delays in recalling the investigations that helps
them to save a lot of money. The investigation report reveals that there is some of the unethical
behaviour associated in the safety parameter of the vehicle use. From an article, it was deduced
that the Toyota organization has dragged its feet in the safety defects and has maintained a good
reputation of it throughout. There is a need to manage with the unfamiliar ethical challenges,
regulations and behaviors that will help in the business of the organization. The major focus of
the company is to avoid the associated safety regulations to delay the investigation process and
obstructing inquiries imposed by the government related to safety parameter. The documents
show that it is the financial benefit of the delay. In some of the presentations, Toyota commented
that it is that phase that adds to the safety regulations of the side airbags that has saved the
company from $124 million and 50,000 man hours. A delay in the rule can be seen that is for the
tougher door locks that have saved to $11 million.
It is evident that from every situation, it is easy to see that there something or the other
goes wrong. The mantra of the Toyota Company is “kaizen” or in other terms, it is the
continuous improvement. Somehow, it is found as the only justified way that helps in negotiating
with the government about disappearing their problems. Some of the consumers are also a victim
of the PR spin game where the Toyota would recall a limited amount of the vehicles that are

7
certain times of a particular year. In spite of the drawbacks in the safety parameter, Toyota has
been advertising the vehicles by adding the positive remarks and high quality assurance in their
propaganda. The company also ensured that the cars are much safe to drive in a busy road.
The Toyota Company has conspired with the NHTSA that is one of the governmental
departments that is solely responsible for the crash test ratings. A false improvement to the safety
record of the Toyota is while hiding the various facts of the NHTSA and the Department of the
Transportation that is neither adequate compensated nor staffed to the dealing with the influx of
the safety concerns that has been eventually raised by the consumers (Carlos Pinho, Paula
Rodrigues and Dibb 2014, p. 17). The larger problem is that with the scandal it has created a
precedent for the unethical behavior and the corruption that comes to the safety measures of the
vehicles that many of us are dependent upon or used by many.
The unethical behavior of the Toyota as per the various academic articles shows that it is
manufacturing plant that resembles the worst sweat shop in the world in Japan. The company is
known for its busting union that will help in destroying various small countries all over the
world. Reducing the standard of their living amongst the other citizens has been viewed. The
ultimate goal of the organization is to lower the wage on an average basis in America and Honda
seems to be the one backing them (Huhtala et al. 2013). The Toyota is one of those profitable
organizations in the world but their profits make them to lower the wages of the workers.
4.0 High level recommendation:
There is a need to analyze the organizational theory that needs to be assessed about the
organizational structure that is a major component for developing business in an effective
manner. It can be said that the Toyota needs to develop an organizational structure in order to
make a healthy business growth experienced in the market. The organizational needs to be
engage in a participative leadership that has a trait into the Toyota business that is to encourage
the employees so that their performance may be enhanced. On the other hand it can be said that
the organization has several changes in the departmental interactions so that the business might
help in eliminating the issues in an effective manner.
The organizational theory consists of the various approaches that help in the analysis of
the organisation. The theories that have been followed in the organization include the various
division of labor, the rational perspective of the system that also includes the bureaucratic and

8
the contingency theory. With the organizational culture, the Toyota group can easily coach and
identify the various damages in the culture. There are certain amounts of people who are doing
the damage to the organization. There is a need to identify those people and make the
bureaucratic undermine on the latest companywide initiatives that helps in the development
planning to communicate with the new expectations and their random change in the behavior.
The negative impact of those people has a wide impact on the organization and they literally
drain out their everyday work (Cadden, Marshall and Cao 2013). When the people are addressed,
the damaging cultural head along with the organizational culture strengthen immediately. The
step one is to identify and make the possible changes for their damaging culture.
A person who contributes well to the oranisational culture that is of the Toyota Company
needs to be well rewarded. The people who are trying to make a positive impact on the
organizational culture needs to be strengthened. The decision making lines has a core value in
the organization that results in making the people more committed to the organizational goals of
the Toyoota company (Anitha and Begum 2016, p.17). There is a need to think about the positive
impact of certain people on their culture. The culture of the organization is built on a specific
way on how they represent themselves in the company. The promotions of the people are based
on achieving the greater financial success and receiving the recognition.
The Toyota company can maintain its culture by hiring people based on the concepts of
the organization. There is a need to assess the skill of an applicant that needs to be quite straight
forward. This organization is good at making great determinations and this fact cannot be denied.
There is a need to hire on the basis of one’s culture that needs to be added to the organizational
core values in the process of the decision making. There is a need to have the ability and set
skills that will help in producing great results in the particular position. The people will work
accordingly to the core values of the organization (Babnik et al. 2014, pp. 612-627). The
organization must check that the applicant is fit enough to survive and enhance the
organizational core values. Ultimately, the employee is the greatest contributor to the
organizational culture.
In the Toyota organization, the leadership is guided by the principle “see it for yourself”.
For an instance it can be said that during the recall of the pickup, the organization is said to be
visited by the Ann Arbor dealership that is in Michigan and has the chance to examine personally
the investigation of the pickup recall. Hence an impromptu visit can be made that is without the

9
awareness of the several employees in their research centre. The odds can be eliminated by
fitting in the collaborative methods in their culture and making it more enhancing (Cosh, Fu and
Hughes 2012, p.301- 317). There is no requirement of the executive need to be convinced on the
Toyota Motor Corporation that has become one of the greatest Company in the world. The
unorthodox system of the management enables the Japanese giant to make it the planets best
automobile at the cheapest rate. The unorthodox manufacturing system helps this Japanese giant
Toyota to make it the best automobile in the planet at the lowest cost that will help to develop the
new products in a quick way. The rivals of the Toyota are Chrysler, Honda, Ford and the
Daimler (Huhtala et al. 2013).
5.0 Conclusion:
From the above report it can be concluded that the pursuits for quenching the thirst of the
needs of the customers and the organization needs to determine in order to push Toyota’s
organization in a global stand. Among the other automobile contenders there is a need to
emphasis on performance and the styling. The Toyota organization is considered to have more
moral and ethical conducts in their standards that are primarily set by the pioneer of the leaders.
In this type of the leadership it can be stated that the Toyota organization is poised for the
success and that is considered the main reason in leading the automobile industry. The leader of
the Toyota is to take their own drive and make a presence that can be felt by the representatives
and needs to show the reliably seek and the inventiveness that is regarded as the new
opportunity. Once he goes out by one step it can be constantly open to guide their subordinates
and make them open to the new ideas. The various ethical issues of the organizations have been
explained in this paper along with the use of the two organizational theories. The two
organizational theories that has been explained with reference to the Toyota Company is the
Stakeholders theory and the institutional theory. The issues of the organizational culture have
been briefed along with its probable solutions.

10
References
Anitha, J. and Begum, F.N., 2016. Role of organisational culture and employee commitment in
employee retention. ASBM Journal of Management, 9(1), p.17.
Babnik, K., Breznik, K., Dermol, V. and Trunk Širca, N., 2014. The mission statement:
organisational culture perspective. Industrial Management & Data Systems, 114(4),
pp.612-627.
behaviours of expatriate managers. international Journal of Business and information, 2(2).
Cadden, T., Marshall, D. and Cao, G., 2013. Opposites attract: organisational culture and supply
chain performance. Supply Chain Management: An International Journal, 18(1), pp.86-
103.
Campbell, A. and Strikwerda, H., 2013. The power of one: towards the new integrated
organisation. Journal of Business Strategy, 34(2), pp.4-12.
Carlos Pinho, J., Paula Rodrigues, A. and Dibb, S., 2014. The role of corporate culture, market
orientation and organisational commitment in organisational performance: the case of
non-profit organisations. Journal of Management Development, 33(4), pp.374-398.
Cosh, A., Fu, X. and Hughes, A., 2012. Organisation structure and innovation performance in
different environments. Small Business Economics, 39(2), pp.301-317.
Engelen, A., Gupta, V., Strenger, L. and Brettel, M., 2015. Entrepreneurial orientation, firm
Entrepreneurial leadership, capabilities and firm growth. International Small Business Journal,
33(1), pp.89-105.
Fisher, D.R., Campbell, L.K. and Svendsen, E.S., 2012. The organisational structure of urban
environmental stewardship. Environmental Politics, 21(1), pp.26-48.
Gilbert, S., Horsman, P. and Kelloway, E.K., 2016. The Motivation for Transformational
Huhtala, M., Feldt, T., Hyvönen, K. and Mauno, S., 2013. Ethical organisational culture as a
context for managers’ personal work goals. Journal of Business Ethics, 114(2), pp.265-
282.
Koryak, O., Mole, K.F., Lockett, A., Hayton, J.C., Ucbasaran, D. and Hodgkinson, G.P., 2015.
Leadership Scale: An examination of the factor structure and initial tests. Leadership &
Organization Development Journal, 37(2), pp.158-180.

11
management and firm success of Toyota's dealer in Thailand. The Business & Management
Review, 7(1), p.256.
measuring entrepreneurial leadership style. Journal of Small Business Management, 53(1),
pp.54-74.
Muenjohn, N., 2015. Transformational leadership: The influence of culture on the leadership
performance, and the moderating role of transformational leadership behaviors. Journal of
Management, 41(4), pp.1069-1097.
Pongpearchan, P., 2015. Effect of transformational leadership on strategic human resource
Renko, M., El Tarabishy, A., Carsrud, A.L. and Brännback, M., 2015. Understanding and
Stone, R.J., 2013. Managing human resources. John Wiley and Sons.