Management of a World Class Company Toyota

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I. Introduction of Toyota Motor Company

II. Management of Toyota Motor Company

1.Coprporate Governance of Toyota Motor Company

2. The Toyota Way

3. Toyota managerial problems

III. Conclusion

Management of World Class Company – Toyota Motor Company

I. Introduction of Toyota Motor Company

Toyota Motor Company or TMC is a Japanese automobile manufacturer and it is stationed in the city of Toyota in the Aichi prefecture. The relationship between the city and the company gave the name of the city which was previously known as Koromo. Toyota is the largest automobile manufacturer in Japan[1] and it is also the largest worldwide as of the first half of 2012[2] by volume of sold cars ahead of General Motors and Volkswagen AG.

The company was created in 1937 by Kiichiro Toyoda as a spinoff to Toyota Industries to create automobiles. As of 2012, Toyota own several different brands as Lexus - luxury cars, Scion – brand only for North America, aimed towards the Generation Y and 51% in Daihatsu – the oldest car manufacturer in Japan. Akio Toyoda is the current CEO of Toyota, he is grandson of the creator Kiichiro Toyoda[3].

Toyota have produced more than 200 million cars all over the world with their biggest market in North America – 32%, followed by their home country Japan – 25%, Europe – 14% and Asia – 11%[4].

Toyota is publicly traded company of three of the major Stock Exchanges: New York Stock Exchange(NYSE), London Stock Exchange(LSE) and Tokyo Stock Exchange (TSE).

In the end of 2009 and the beginning of 2010, Toyota recalled 9 million cars on various technical faults[5]. 5.3 million of them was over a faulty “all-weather” floor mat, additional 2.3 mil. For a faulty accelerator pedal and 1.7 for both problems. On 14th of November 2012, Toyota announced that it will recall additional 2.7 mil. cars over problems with the steering wheel and water pump system. This comes four weeks( 10th October) after another 7 mil. cars recalled over faulty electric windows mechanisms[6].

The 2010 recalls hit the company hard with huge financial loses, because of the recalls and stop of production for some time of the affected vehicles. Severe damage to the brand in the eyes of the public. An estimate of 1.93 billion dollars were lost, because of missed sales, output and another recall related costs[7]. A 15% drop in shares was experienced by the company.

Toyota is one of the leading manufacturers in pushing the hybrid electric vehicles. Their hybrid technologies make them the first company to mass produce such an automobile with the Toyota Prius in 1997. As of October 2012 the Prius around 3 mil. units[8] . 19 other Toyota branded vehicles are also available with the hybrid technology. So are models from the Lexus sub-brand.

II. Management of Toyota Motor Company

1.Coprporate Governance of Toyota Motor Company

Toyota Motor Company(TMC) is a public listed company, which means everybody can buy shares in it. This mean that the is a specific corporate structure and management operations. Toyota is with top-down centralized way of management.

The company is headed by Fujio Cho, he is the chairman which in the Japanese system, that puts him in charge of the country's and world's largest automaker. He is only the second person to head Toyota and to not be from the Toyoda family after they stepped out in 1995. He joined Toyota in 1960 and previous titles include: Managing Director, Senior Managing Director, Vice President, President and Vice Chairman of the Board. He stepped in as a chairman in September 2006[9].

1960–1966, apprentice and training employee; 1966–1974, Production Control Division; 1974–1984, manager in Production Control Division; 1984–1986, manager in Logistics Administration and project manager in Production Control Division; 1986–1987, manager in Administration; 1987–1988, manager of Toyota North America Project and...
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