Culture on Toyota

Topics: Organizational culture, Geert Hofstede, Culture Pages: 12 (4144 words) Published: January 23, 2013
Corporate Culture Analysis of Toyota
Case study Analysis
Mithila Saranapala


This case study analyses the corporate culture of Toyota by using two theories and then analyze the national cultures of Japan and USA by using two theories and its impact on the corporate culture of Toyota. The models of “Edgar Schein” and “Charles Handy” will be used to analyze the corporate culture of Toyota while the models of “Greet Hofstede” and “Fons Trompenaars” will be used to analyze the national cultures. Afterwards the case study will discuss the climate of Toyota and the impact of the same to its success. Also the case study will analyze the reasons as to why the Toyota Company had to face failures and whether the company culture had any impact in the same. It will also point out on how the culture of Toyota had become inflexible over a period where the company was facing rapid expansions in to other countries and how it had impacted the success of the company. Finally the author will provide with suggestions and advice as to how Toyota could do in the future on developing their corporate culture.


1. Toyota History and Its Culture
2.1. History of Toyota
2. National Culture & Toyota Culture
3.2. What is Culture
3.3. National Culture
3.4.1. National Culture according to Fons Trompenaars model 3.4.2. National Culture according to Greet Hofstede’s model 3.4. Toyota Culture
3.5.3. Toyota culture according to Edgar Schein theory 3.5.4. Toyota Culture according to Charles Handy Theory 3. Corporate Climate
4.5. What is Corporate climate
4.6. Was the climate correct in Toyota
4.7. Areas which went wrong with culture
4. Suggestions for way forward
5.8. How could Toyota do better in the future?
5.9. Measures which they could take to effectively embed the proper culture to its employees 5. Conclusion
6. References

1. Toyota History & Its Culture
2.1. History of Toyota
Toyota was established as a commercial vehicle manufacturer in 1937 with a capital of ¥ 12 million. By 1948 Toyota’s debt was 8 times than its capital value. In 1950s Toyota studies US plants, including Ford, and supermarkets during a 12 week study visit. They see little improvement since his previous trip but use supermarkets as a model for just-in-time production. Toyota entered the US in 1958 by launching its model the Toyopet. It established its first overseas production unit in Brazil in 1959 and entered the European market in 1963. Besides manufacturing, the company started a global network of design and R&D facilities covering the three major car markets of Japan, North America, and Europe. The company underwent rapidexpansion in the 1960s and exported fuel-efficient small cars to different countries across the world. By the early 1970s, Toyota‘s global vehicle production was behind that of only GM and Ford. The oil crisis in the late 1970s gave a major boost to Toyota, with many people shifting to smaller, fuel-efficient cars, where Toyota had a significant presence. In 1988, Toyota opened its first plant in North America in Georgetown, In 2000, Toyota‘s global production exceeded five million vehicles. By November 2003, Toyota‘s market capitalization touched US$ 110 billion. In 2006, Toyota became the third largest car and truck seller in the US, surpassing Chrysler Group LLC13 (Chrysler). In 2007, Toyota with sales of 2.6 million vehicles overthrew Ford from the second position in the US auto market. About two-third of Toyota‘s workforce was located outside Japan at that time. In July 2008, Toyota replaced GM15 as the largest automaker in the world. In the financial year 2008, Toyota emerged as the largest automobile manufacturer in the world. 2. National Culture & Toyota Culture

3.2. What is Culture
“Culture is not something you can manipulate easily. ...
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