Corporate management and business environment
Group II – 2013
Toyota is a Japanese motor corporation, with recorded consolidated sales of around 2 billion US dollars every year, andthey are the third world's largest automaker. Their employees are over 30,000 people and there are total 507 subsidiary companies.
Toyota was established in 1937 in Japan by Kiichiro Toyoda. Since then Toyoda family as a founding family is the core of the Toyota group companies. In 1957, Toyota Motor Sales (Toyota USA) established. After 20 year, they achieved 20 million units’ domestic salesand 10 million units in total exports in 1979 and then they achieved 100 million units total domestic production of cars in 1999. In 2008, finally Toyota's sales surpassed General Motors, making Toyota number one in the world.
Their mission statement is “To sustain sustainable growth by providing the best customer experience and dealer support.” Which means that customer satisfaction is thedriving force for Toyota, and also continuous improvement of technology, products and services.
This figure is the ratio of sales of Toyota. Japan 25%, North America 32%, Europe 14%, Asia 11% and others 18%. As figure represents, 75% of sales have been became overseas sales. They have established factories and offices around the world.
Tangible internal resources
When we talk aboutToyota, first thing that comes up would be its outstanding technology. At the same time, there is a remarkable for their aggressive strategy.
Toyota Production System (TPS) is one of the superior technologies. By developing a system, they were able to improve the efficiency of making the production. The main pillar of which is the reduction of 7 wasted time, Over-Production(earlier& faster), Inventory (more than 1-piece flow), Defects (non-zero defect rates), Over-processing (low or no value added by un-necessary work), Waiting, Motion, Transportation. And the major of TPS is “just-in-time”. Main aim is that it minimizes inter-process inventory and a complete system that is a complete build-to-order manufacturing.
And also they have been continuously focusing onproduct development and improvement. Toyota Corolla was debut in 1966. Since then, in every three years it is changed to new model. Another example, Toyota hybrid car was started to develop in 1995, and first it was available only to the Japanese market. However today it is selling almost 75% of its hybrid cars alone in the US market, because it is more economical on gas than others and it wasdeveloped earlier than others land.
Land is also another aspect of tangible resources. Toyota increases the number of plants making a giant in car in the world, especially North America. And they are promoting the localization. In addition, they are working on an internationally coordinated production system and planning to extend all over China.
TPS and the localization worked well, and in fact theywere able to reduce the cost. Toyota succeeded to obtain a product with the lowest possible price and a superior quality. By high technology and other tangible resources, Toyota has been able to get the current position.
Intangible internal resources
There is no doubt that the production system of Toyota helped the company become one of the largest companies in the world. But this positionwas also possible due to its Human Resources procedures and Internal Culture.
Toyota is well known for its good labor relations and respect for people. The company has a special care for its employees, and is always seeking opportunities to improve the workplace environment with consistency activities and actions. The company stimulate the employees development, both in...