Toyota's Organizational Culture and Global Business Strategies Report

This report provides an overview of Toyota's organizational culture, exploring its seven dimensions, including innovation, people-oriented approach, and team orientation. It explains Toyota's globalization, driven by expansion, technology, and cost advantages. The report details Toyota's business strategies, such as geocentric and regiocentric approaches, and highlights problems like vehicle recalls and financial issues. It concludes with recommendations for improving quality, safety, and employee rewards, emphasizing the need for strategic vision and qualified personnel. The report uses academic sources to support its analysis of Toyota's operations and challenges within the global automotive market. The report is aimed at students to provide insights into Toyota's global business strategies and organizational culture.

Running head: Management and organization in global environment
Management and organization in global environment

Management and organization in global environment
Table of Contents
Introduction.................................................................................................................................................3
Toyota organization culture........................................................................................................................3
Toyota culture dimensions..........................................................................................................................4
Why Toyota becomes globalized.................................................................................................................5
Business strategies of Toyota......................................................................................................................5
Problems in Toyota organizational culture..................................................................................................5
Conclusion...................................................................................................................................................6
Recommendations.......................................................................................................................................6
References...................................................................................................................................................7
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Management and organization in global environment
Introduction
The report presents a brief overview of the Toyota organizational culture. It explains the
how Toyota is using seven dimensions of organizational culture. The report describes the
significant and business strategy of this company. It also explains the key challenges of Toyota
organizational culture.
Toyota organization culture
Toyota Motor Corporation is a Japanese international automotive manufacturing
company which is founded by the Kiichiro Toyoda in 1937. It is the biggest automotive
manufacturer company in the world and in revenue, it is one of the ninth largest companies in the
world. In today’s world, it is the market leader in sales of electronic vehicles and it was one of
the biggest listed companies in Japan by market capitalization. Toyota Motors Company
produces five brands in the world which includes the Toyota, Lexus, Ranz, Hino, and Daihatsu.
Besides this, it provides financing, banking and leasing services to its customers (Womack &
Jones, 2010).
Toyota uses its human resource capabilities in innovation and improvement. The significant of
Toyota organizational culture are discussed as below:
 Teamwork: Toyota uses the team for doing business globally. It encourages and
enhances employees to involve in respective teams.
 Continuous improvement through learning: Toyota organizational culture facilitates
improvement and development through the learning process. A learning organization
continuous utilizes the knowledge and information through the performance of workers
to get the better results in future.
 Quality: It plays a vital role in the organizational culture of Toyota. The success of the
company depends upon its high-quality automobiles.
 Secrecy: Toyota organizational culture maintains a high degree of secrecy (Schein,
2010).
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Management and organization in global environment
Toyota culture dimensions
Toyota culture using seven dimensions of organizational culture, which are discussed as
below.
Innovation: Toyota Company is one the biggest companies in the world because the production
system of Toyota is excellent. The main purpose of Toyota is to produce good quality of
vehicles. The other companies believe in stereotyped approach but Toyota does not believe in
this approach. Toyota believes in soft innovation in its organizational culture. Toyota
encourages people to face challenges and they give innovative ideas to employees to solve the
problems. In such way, the company stands out in the market and it can beat its competitors.
Through innovation, the company is improving in the product design and process (Lubin & Esty,
2010).
People oriented: Employees play a significant role in Toyota Company. Toyota always thinks
about the interest of the employees. The company gives all credit to its employees for its success.
It is the people oriented dimension which always focuses and concentrates of its employees.
Team oriented: It is the other dimension of the organizational culture of Toyota. It focuses and
advocates team work in the company. In Toyota, people work together for the achievement of
goals and objectives.
Aggressive: In this dimension, employees become aggressive and competitive to achieve the
organization goals and objectives. Being aggressive and competitive nature, the company
delivers and provides the best product to its customers (Kapferer, 2012).
Stability: Toyota maintains the stability in the market. Stability helps to achieve mission and
vision of the company. The culture of Toyota is rule oriented, predictable and bureaucratic which
provides a higher level of efficiency and coordination to its employees.
Attention to detail: The Company encourages people to give all the information in details and
maintain discipline and coordination to execute task and responsibilities. So Toyota provides
such type of organizational culture to its employees.
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Management and organization in global environment
Result oriented: The main objectives of the company is to provide best products to its
customers. Mainly, Toyota focuses on results and outcomes rather than process and techniques
which are used to achieve goals and objectives (Davila, Epstein & Shelton, 2012).
Why Toyota becomes globalized
There are few reasons behinds that Toyota has become globalized, they are discussed as
below.
 Toyota wants to expand its business globally
 It wants to take greater advantages of technologies, locations and cheap labor forces from
other nations.
 To create high opportunities and competitiveness in the domestic market.
 It wants to build a learning culture for improvement (Redshaw, 2012).
Business strategies of Toyota
There are few approaches which Toyota is pursuing in its international business; they are
such as geocentric approach, regiocentric approach, Standardization and think globally, act
globally approach.
Problems in Toyota organizational culture
In 2009, Toyota motor company saw that 9 million of their vehicles recalled and
recollected due to several vehicles unintended acceleration. It was the main problem of Toyota
which was faced by the Toyota corporate culture (Ciravegna, 2012). Sudden unintended
acceleration crop up and occur when the vehicle accelerates from a stationary situation without
the driver’s control and intention. The problem occurs due to the error of driver in faulty car
parts. A recall was also made in 2010 for the hybrid anti lock brake software so it affects the
Toyota brand name and image globally (Monden, 2011).
Further, Toyota also faced a financial problem due to defective and faulty vehicles. Due
to these problems, many people are losing their jobs and employment. These are the main
consequences of Toyota corporate culture. Toyota is trying to recover from the economic crisis
which was faced by the company in 2009 Ciravegna, L. (Ed.). (2012.
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Management and organization in global environment
Conclusion
The report is based on the Toyota organizational culture and it also describes the seven
dimensions of its culture. It explains that how Toyota company has become the biggest
corporation in automotive manufacturer in the world. Now it is concluded that Toyota should
focus on the business strategy and corporate culture. It should appoint potential and talented
employees who can serve good services in the company.
Recommendations
Although Toyota is expanding its business still it needs to focus on the quality and safety
of vehicles. It should save the cost of manpower and production. It should hire good qualified
and skilled technicians for producing the cars and safe drive. The managers of Toyota should set
vision, goals and it should develop plans for the company. The company should provide rewards
to potential and talented employees for their work. It will enhance the working capacity of
employees and they will perform the best work for the company.
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Management and organization in global environment
References
Ciravegna, L. (Ed.). (2012). Sustaining industrial competitiveness after the crisis: Lessons from
the automotive industry. Springer.
Davila, T., Epstein, M., & Shelton, R. (2012). Making innovation work: How to manage it,
measure it, and profit from it. FT press.
Kapferer, J. N. (2012). The new strategic brand management: Advanced insights and strategic
thinking. Kogan page publishers.
Lubin, D. A., & Esty, D. C. (2010). The sustainability imperative. Harvard business
review, 88(5), 42-50.
Monden, Y. (2011). Toyota production system: an integrated approach to just-in-time. CRC
Press.
Redshaw, S. (2012). In the company of cars: Driving as a social and cultural practice. Ashgate
Publishing, Ltd.
Schein, E. H. (2010). Organizational culture and leadership (Vol. 2). John Wiley & Sons.
Womack, J. P., & Jones, D. T. (2010). Lean thinking: banish waste and create wealth in your
corporation. Simon and Schuster.
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