Toyota Case

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Toyota’s Team Culture - Case Incident 1

1. Do you think Toyota has succeeded because of its team-oriented culture, or do you think it would have succeeded without it? Indeed. This is because Toyota structures its work around team. They are not used only in the production process but also at every level and in every function: Sales and marketing, finance, engineering, design and executive level.

2. Do you think you would be comfortable working in Toyota’s culture? Why or why not? Yes, Because. Toyota’s culture seems to excel with this strategy of team orienting. Apparently, the CEO has a culture where he is not the mega star behind the scenes, but by his employees working collectively in team efforts are achieving high level of outcomes if all the levels of the organization.

3. In response to the recession and the firm’s first-ever quarterly loss, Toyota’s managers accepted a 10 percent pay cut in 2009 to avoid employee layoffs. Do you think such a response is a good means of promoting camaraderie? What are the risks in such a plan? Absolutely, not only it promotes camaraderie, but also shows alliance to those employees that were to lose their jobs. In terms of risks, No, first, I am sure that these employees are extremely grateful. I feel that it is as an incentive for these employees to meet the deadlines and put more effort if they know that they did not get laid off. I am also sure that these managers get paid a generous salary and 10 percent would not necessarily affect their lifestyles. Perhaps, the CEO made arrangements, that if quotes were met by a certain time, there would be some bonus or increase in their salary.

4. Recently, DCH Group, a company comprised of 33 auto dealerships, decided to adapt Toyota’s culture to its own, particularly its emphasis on teamwork. DCH’s CEO, Susan Scarola said, “Trying to bring it down to day-to-day operations is though. It was not something that everybody immediately embraced, even at the senior...
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