write a 3–5 page paper (excluding title and reference pages) demonstrating that “You have tied the pieces together and defined power relationships” (Milestone #3) in your organization design. Include the following:

Milestone 2: Strategic Grouping for Toyota Corporation

Richard K. Hairston

GM543.01

Organizational Diagnosis and Design

12/15/17

Professor

Dr. Rebecca Herman

Introduction

Strategic grouping provides an analysis to understand the strategy employed within an industry better. This makes it easy for strategists to understand the industry better in which they operate in. in addition to that, it helps in the identification of any gaps or areas where a shift in the strategy could help in building rewards (Drejer, 2002). The rewards can be built through capitalizing on an opportunity in a less crowded market. Toyota Corporation can have different business segments catering to different markets. Strategic groups can be varying in an industry such that big businesses may have a much higher bargaining power than the small businesses.

Organizational Archetype

Organizational archetype is distinguished by one feature that defines it. There are four types of the organizational archetype. The first type is the simple archetype. Where an organization is more structured like the traditional pyramid. Employees in an organization report to the manager who then reports to the CEO all the way to the top. The second type is the professional bureaucracy archetype. The professionals in the organization who have undergone some type of training are the given the responsibility of making decisions. Companies like financial agencies and regulatory bodies use this type of archetype. The third type is the divisional archetype. As stated above, many small organizations use simple organizational archetype while large organizations use divisional archetype (Kesler, & Kates, 2010). A Simple organizational archetype cannot be applied to larger organizations since each manager is only mandated to manage a small or a limited number of employees. In divisional archetype, the employees in an organization are grouped into divisions. Even though large organizations use this type of archetype, they may end up implementing the same differences as that of smaller organizations. The last type is the flexible archetype. This type of archetype is characterized by lack of formal structure. Such organizations also tend to indulge external influence.

Since Toyota Corporation is a large organization, it requires an archetype that will support its size. There are different divisions in Toyota such as the geographic divisions and product-based divisions. It has got 8 geographic divisions and four product-based divisions. Therefore, the archetype that fits Toyota is the divisional archetype. This is because each manager can only manage a limited number of employees due to its size. Therefore, employees are group into divisions that can be easily managed. The managers of the divisions make choices for how the employees in a certain division will undertake activities.

Analysis

Four Classic Design Options

Advantages and Disadvantages of the Classic Design Options
Option	Advantages	Disadvantages
Function	Helps in increasing the knowledge sharing of functions and capacity to create depth and specialization. This will help Toyota corporation to develop leverage with its suppliers. The company will also be able to attract and develop experts.	It is difficult to manage a diverse range of products. In addition to that, it may result to conflicts.
Geography	It helps a company in focusing locally, customization and relationships with the local government.	It can be challenging to mobilize and share resources on the regional boundaries.
Product	This will help the company shorten the product development cycle. In addition to that, it helps in locating the profit and loss for each product at the division level with the general manager.	It may be hard to recognize when a product should be changed or dropped.
Customer	Enables the production of value-added products. Promotes relationship and customer loyalty.	Required an ability to track customer profitability.

Selection of High-Level Design Options

Top Choices for Design Options
Option	Benefits	Risks
1. Product	It promotes and enables “state-of-the-art” research. Therefore, Toyota company will be able to research on the cars that is more needed in the market. Such as new design among others.	Despite the fact that it encourages loyalty to product division, it may make it hard to recognize whether a product should be changed or if it should be dropped. In addition to that, it can cause duplication of products.
2. Customer	This option makes it easy to add value to the product and services. In addition to that, makes to customize for customers through good relationships with them and customer loyalty.	It may cause and poses a danger of duplication of products and functions. It also requires regular track of the customer profitability.

Recommendation for Best Grouping Option

The best choice that is more important is the customer. Due to competition in the market, customers will help the company to do away with its competitors and gain a competitive advantage. It is important to note that prospective customers do not look for products or services. Therefore, the company should ensure that it acquires loyal customers. a company cannot operate with customers and therefore, I think that it is important for Toyota corporation to value its customers so as to make more profit and have a competitive advantage in the market.

Conclusion

In conclusion, Toyota Corporation should ensure that it creates the value of its product and at the same time ensuring that it promotes customer value. This will help in ensuring that it promotes customer satisfaction and loyalty.

References

Drejer, A. (2002). Strategic management and core competencies : theory and application. Westport, Conn: Quorum Books.

Kesler, G., & Kates, A. (2010). Leading organization design: How to make organization design decisions to drive the results you want. John Wiley & Sons.

Pearson, C. (2003). Archetypes in organizational settings: a client's guide to OTCI professional report. Center for Applications of.