TOYOTA STRATEGIC ISSUES
Toyota was founded in 1937 by Kiichoro Toyoda where in the year 1957 it entered the United States America with the crown. Today, Toyota is considered to be the globe largest automobile manufacturers where in 2011 eight million cars were produced. Toyota has continued to enjoy as a market leader in the automobile industry due to its most valuable and leading brands namely; Scion, Lexus, Daihatsu ad Toyota. Thomas (2001) maintain that, in the USA, Toyota has significantly grown through acquisition merges with majority shares being held by Daihatsu (51%). Besides in the United States of America, Toyota has its assembling plants and factories in over twenty countries across the globe. These countries are; Australia, Canada, Egypt, Poland and United Kingdom. In summary, Toyota has consolidated over 540 subsidiaries thus considered as a giant multinational company. Thomas (2001) maintain that, Toyota’s vast size and ability is a grand advantage in meeting automotive industry enlargement. The number of customers requiring vehicles is continuously increasing, thus creating a larger market for Toyota. The apparent significance of owning a car due to increased motion needs in today’s chiefly corporate world is continually increasing as well. Toyota’s great size has enabled them to effectively meet the needs of this increasing population of consumers in need of vehicles.
Thomas (2001) maintain that, increased globalization and competition have forced organizations to reexamine their strategic issues so as to largely focus on cost cutting measures thus increasing their profits. With this, redefining of different strategies have become common practices in today business environment. For the Toyota Company having the best strategy is the choice they engage making every day. over the past forty years, the companies have been involved in defining their various strategies though enhancing their corporate responsibility, innovation and entrepreneurship, diversification, international strategy, benchmarking their quality and finally engaging in best practices. According to Porter (1996), with the company outlined comprehensive strategy, Toyota defined principles of continuous improvement have created an opportunity for the company to enhance their various strategies thus being among the best companies within the automobile industry.
Koontz and Weihrich (2006) maintain that, based on its diversity and corporate strategy, Toyota has been involved in seeking a successful society through automotive production. The company has been involved in ensuring that it achieve both stable and long term growth in future through effective synchronizing various factors. These factors are; global economy, local society serves, understanding the company environment and involving both the internal and external environment of stakeholders. The Toyota diversity strategy largely outlines the programs and processes that will ensure that they are in a position to achieve their desirable diversity goals. . Koontz and Weihrich (2006) maintain that, to minimize the strategic issues and problems that are connected to diversity, the company is involved in aligning their diversity in a manner that pulls out “respect for people” while at the same time enhancing continuous improvement. For Toyota, their diversity strategy will significantly impact the larger community, their workplace, dealership and stakeholders. According to Porter (1996), it is quite evident that lack of diversity or diversity sabotage within organization has resulted to poor performances. Due to this, Toyota has been involved in fostering its workplace diversity throughout automobile industry. Koontz and Weihrich (2006) maintain that, toyota diversity strategy have ensured that the company is able to have a full participation in today changing business environment, the company have been involved in creating new and effective partnerships thus making...