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Toyota's step to success!
Transcript of Toyota's step to success!
Manufacturing a car brand for everyone Yet, is it a right thing to manufacture a car brand for everyone? Step 3: Keep growing & attend to potential growth problems Did Toyota grow too quickly?
What to do next? Toyota managed to do this because of their excellent strategic alignment. 'They managed to keep its strategy, organization and people perfectly aligned with its main purpose: pursuit of harmonious growth and enhancement of profitability'.*
Toyota can also produce and move a product to the market faster than any of their competitors. Toyota has benefited extremely because of their integrative growth. They invest heavily in employees and organizational capabilities and implement 'The Toyota Way' in each employee in order to strive for continuous improvement throughout the company. Furthermore, Toyota also grew so much bigger than their competitors because of Toyota's mastery of lean production manufacturing and continuous improvement. They can make up to 8 different models at the same time racking up productivity and increasing market responsiveness. The innovativeness plus the strive for continuous improvement and responsiveness to the market combined with their manufacturing network is what made Toyota grow faster than the rest.
The Rise of Toyota. 2013. http://www.advancebusinessconsulting.com/advance!/strategic-alignment/strategic-alignment-business-cases/the-rise-of-toyota.asp. [Accessed 10 May 2013] Through mass marketing Toyota reaches the largest potential market and thus lowers cost. Toyota also tackles niche markets, segment markets, local markets and individual markets through their vast product line. Because of their manufacturing network they can address demand worldwide, this combined with the fact that Toyota tends to care for customer needs they gain a huge competitive advantage over their competitors. This is the right thing to do in order to increase Toyota's market share and brand image. Toyota can offer what you as a customer need. YES! What competition? In 2009 and 2010 Toyota had to recall a massive 8 million of its vehicles. This was due to a variety of problems, from sudden acceleration to software glitches and mechanical problems. This affected many of the Toyota brand cars and also inadvertently this affected the Toyota brand name and image. Market share dropped 4 percent right after the recall and an estimate of 2-8$ billion dollars of cost were made due to the incident.
As a result of enormous growths in the previous years (see figure 1), Toyota had to keep up with production and therefore they expanded manufacturing capacity. However, 'the Toyota way' couldn't keep up with all the new employees and the quality suffered immensely. Toyota grew too quickly. Growing companies should stick to their quality programs and make sure that quality is always sustained throughout growth even if it will cost a lot, strict recruitment policies and long-term employee trainings should always be a main priority in order to maintain and enhance quality. In the upcoming year, Toyota should implement a detailed 5 year program in which every growth rate should accompany utmost quality. In the next 5 years, this program should be continuously be improved and catered to. In 10 years time Toyota should be focussing on becoming and maintaining market leader in the car manufacturing business. Figure 1: Toyota Motor: global sales (units) 2005–2009 (Source: Toyota year-end financial reports) Growth & problem solving Toyota ... Moving forward! Click play