Monday, October 28, 2019
Toyota Company Limited Essay Example for Free
Toyota Company Limited Essay BACKGROUND When we talk about company, we are talking of the worldÃ¢â¬â¢s seventh largest corporation. On the car manufacture Industry, the company is the third ranked. Toyota is a Japan based motor company that manufacturers cars, vans, Lorries and tractors selling them to a wide variety of global markets. It is also a renowned manufacturer of tracks and motor car accessories. Toyota Company started in 1937 with the headquarters currently based in Japan. The very first car that the company manufactured was the Toyota AA in the early 1930s. Later, new brands emerged like the Luxuries, Lexus. These gave rise to more Luxurious brands like the Tundra, Camry, Scion and Prius. Currently, the company manufactures and sells millions of vehicles each year. In 2008 for instance, it plans to manufacturer more than ten million vehicles. The company has set up marketing bases in the UK and parts of Asia to help in the marketing of its vehicles. To-date, the company boasts of profits of up to $ 12 billion (made in 2006) accompanied with increased sales. To further boast its market share, the company has acquired stakes in other automobile companies like ISUZU Motors (6%) and in Fuji industries (8%). The companyÃ¢â¬â¢s shares are traded publicly on the New York stock exchange. Products and Services offered Toyota produces the following Toyota type of cars: Hilax Surf, Land Cruiser, RAV4, Caldina and Auris. Other brands include Vitz and Lexus. Toyota also offers financial services such as giving credit in form of Loans to small and medium enterprises. The company offers these financial services to over twenty five countries across the globe. The Toyota subsidiaries operating these financial services are wholly owned by the parent Toyota Company. Started in Australia, the services are now offered Europe, USA and Asia. Besides, automobiles, the company also make robots and has even entered the textile industry. The company is best known in making computerized loans and sewing machines. Corporation culture and Management The company has development out of certain believes which the members of staff and top corporate directors hold. To them, management decisions are based on long-term developments rather than school-term objectives. There is a culture of consensus in decision-making as opposed to chest thumping and neglect. There is also the culture of people avoiding fixing of problems, instead of getting quality of work is advocated for. There is always the desire of using only high technology in the manufacturer of vehicles that would satisfy customers. The company doesnÃ¢â¬â¢t believe in wastages. By-products of processes are used as raw materials of other processes. Work is planned in such a way that there are no over-production unnecessary motions of medicines. Waiting costs are also kept at a minimum through thoroughly calculated machine operations. The company deals with its clients with the highest level of accountability. Every brand of vehicle truly represents what its descriptions are. The profit margins and mark-ups (of cost) are calculated without customer exploitation. Mission statement Ã¢â¬Å"To have a profitable growth through the provision of the best services to customers and support is the dealers. The company aims at becoming the best companies across the globe. Organizational structure Toyota has a flat organizational structure with the managing Director who doubles as the Chairman being at the top. Down the hierarchy is the General Manager and various managers who report to the General Manager. These are: Financial Manager, Marketing Manager, Commercial Manager, After-Sales Manager and the Administration Manager. The Commercial manager controls the retail sales, marketing, Fleet sales, Long-term rental, and daily rental. Under the financial manager are the internal control , accounting and the financial analysis departments. The After sales manager governs the Buying and Purchase shops, customer care and accessories. Departments under the admistrative manager are the human resources, financing, Information Technology, Purchasing and Quality control management. All these work towards realizing the overall goals of Toyota. Decision-making strategies In Toyota, everybody is brought into board as far as Ã decision making is concerned. However, the junior staff do not make decisions rather are given the chance to express their suggestions in a written platform. It is on the basis of these suggestions that policy is formulated by top management. SWOT analysis is greatly employed before decisions can be made on pertinent issues. SWOT means Strengths, Weaknesses, opportunities and threats. The management evaluates what their strengths are before a decision to embark on a new brand is reached and before making any new acquisitions among other several decisions. Other new opportunities are also rated against the companyÃ¢â¬â¢s strengths. The company uses the knowledge of its weaknesses to seek for means of reducing them against the threats imposed by the environment The pros and cons of every aspect is also looked at before decisions are made. The direction the decision would take would then depend on the number ofÃ merits and demerits if a given path is undertaken. In complex areas, the company applies scientific processes like linear programming and other stochastic models to make decisions. Motivational Strategies Top management get their goals executed through the employees. It is therefore important to ensure that employees are motivated for them to effectively carry out their daily chores. The management of Toyota has however ensured that its workforce is highly motivated to avoid problems associated with demotivation such as go-slows, sit-downs and strikes. One of the things that Toyota has done is to empower employees. Toyota comprises of very many departments each of which is occupied by persons qualified in that field. Every department has been left to make control its own activities whereby people are left to make their own decisions. There is little or no interference from the top management who feel that such an arrangement makes the employees to feel a sense of ownership of the company. To foster empowerment of employees, suggestion boxes are evenly distributed within the company premises. They use these boxes to air their grievances without fear or intimidation. This doesnÃ¢â¬â¢t end here because the management meets regularly with the employees to deliberate on the findings of their suggestions. Benefits Employees of Toyota get some rebates/discounts on the market price of the vehicles. This special concession has been in existent for quite some time. Workers also obtain gifts for better performance be it in the sales and marketing department or the assembly department. The gifts range from cash to even free motorcars. In this way they are motivated to perform even better in the season that would follow. The Toyota companyÃ¢â¬â¢s employees also have a savings plan/ scheme to which they make annual savings. This gives them financial security even after their terms of services expire. They do not fall short of a healthy insurance Scheme that gives them a surety of compensation incase one gets ill or is injured while serving the company.