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Richard Hairston

GM543-01 Organization Diagnosis and Design

Dr. Rebecca Herman

12/06/17

Toyota

Toyota is a Japanese automaker company that deals with car production in the world. It is well known for producing mini-sized to big truck cars worldwide. It is a multinational organization with branches all over. Toyota Motor Europe (TME) is based in UK, France, Poland and the Czech Republic dealing with assembling and manufacturing of Toyota products (Batal, 2014). Toyota was started by the son of Sakichi, Kiichiro Toyoda in 1937 (Dias, 2015). According to the article, Toyota first car was developed in 1947 giving rise to production opportunities outside Japan in 1959 in a small Toyota firm in Brazil. Further research indicates that about thirty-two percent of the company sales are collected in United State, fourteen percent in Europe, eleven percent in Asia, and finally twenty-five percent within Japan (Dias, 2015). He argues that this is enhanced by the Toyota Motor Corporation (TMC) is well positioned in over one-eighty counties in the world. In addition to that lack of equilibrium in the economy, increase in unemployment, increase in demand and lastly increase in fuel price has made the company popular among European countries (Batal, 2014). According to another article by Nkomo (2013), the company has been able to deal with issues of unemployment having employed 333,498 staffs by 2013 and have an annual revenue of two hundred and thirteen billion dollars the same year. Currently, the company operates in the production of four different brands such as Toyota, Hino, Lexus, and finally Daihatsu (Nkomo, 2013). With the growing environment the company experience competition which eventually impacts the financial outcome of the company which must be put into consideration.

One of the priorities factors that the company put into consideration in it management is the political factor (Batal, 2014). According to his political argument factor is important because it equips the company with their target market country with the certain requirement of the country, restrictions, policies, and regulations of the country. This simply means that the consumer will be able to evaluate how much he/she will spend when they import the product. Research in the same article further indicates that Europe has an emission regulation standard which is known as Euro standards. The regulation is bound to protect the environment. Therefore, the current small cars and hybrid which produce fewer CO2 have an advantage over those that produce high CO2 since those with high CO2 will be taxed highly compared the hybrid hence becoming a determining factor to the consumer (Batal, 2014; Debnath, 2015).

The economy is another priority factor to be considered (Batal, 2014). With the increase in inflation, the fuel price has also increase affecting the price elasticity. Currently, buyers are now focusing on buying “smaller efficient engines” that will be equal to the fuel price helping them save more (Batal, 2014).

The social factor is important since it will also determine the type of car the society buy (Batal, 2014). Social factor majorly deals with change in buyers needs. Thus it may have an impact on the business of the company. According to the article by Batal (2014), the variation takes place since Japanese buyer are concerned with working while the European buyers, on the other hand, are concerned with both private life and working thus the company must know how to satisfy both their needs.

Technology is also a determiner priority for the company (Debnath, 2015; Batal, 2015). Globalization has currently increased competition hence Toyota majorly concentrate in the production of cars that emit low CO2 and research deeper into a new technique to substitute fuel with cars that use solar, electricity and other forms of hybrid cars which are environment-friendly (Batal, 2015).

Lastly, the threat and opportunity are the priorities that the company takes into consideration (Nkomo, 2013). According to the article, competition is one of the biggest threat to Toyota followed by emission restriction. In addition to that economic stagnation is argued to be one of the most influential factors that may affect the cost of production and raw material which eventually may affect the fuel price hence becomes a big threat to the company (Batal, 2015). Upon opportunities, the company has an advantage since they are able to produce cars which are environmentally friendly which may be a considering factor for the buyers (Batal, 2015). Thus the company utilizes the opportunity towards its success.

The top objective of the company is to increase sales within the company hence top managers should always address the short-term objectives and the outsourcing of “nonessential function” (Dias, 2015). He argues that functional tactic help the company achieve short-term objectives and facilitate fair competition. The R&D department must focus in the emerging technology in the market to boost the production while departments such as human resource, finance, and marketing should be included in the business to promote production (Dias, 2015). Resource allocation is also an important factor in Toyota Company thus access to material and manpower must be available for the success of the company (Dias, 2015). In summary, Toyota management attention is one of the strengths of the company while resource and cost are among the weaknesses (Batal, 2014). Coordination, specialization, control, and motivation are among the strengths of the company (Batal, 2015; Dias, 2015).

Toyota Motor Corporation has improved their design criteria (Dias, 2015). Product diversification is one of the ways they have a focus to be successful. They have increase relationship with automobile consumers hence the buyer can get financial and insurance services easily (Dias, 2015). In addition to that low price, environmental issues and social issues have been put into consideration in the Toyota Motor Corporation to facilitate its success (Batal, 2015).

In conclusion, the future of Toyota is not only based on technology and innovation but also in sustaining the needs of its customers and protecting the environment. Toyota has focused on creating environment-friendly cars that help to protect the environment and still meet the target budget of its customers. The research and development, production system in Toyota, and production of the hybrid vehicle are some of the strengths that put Toyota on top of its game while at the same time taking advantage of the future increase in fuel price they are able to produce more innovative vehicles in the market. However, they must also focus more on improving their brand portfolio and increase their production presence in China.

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