Toyota

TOYOTA
Management Case Study
Hiroshi Okuda in Toyota

Nur Firdous Majid & Jatin Naresh
5/18/2009

Table of Contents

Contents Page Number

Introduction 1

Question 1: Okuda’s Leadership Styles 2 - 4

Question 2: Transactional or Transformational Leader 5 - 7

Question 3: Radical changes When Company Is in a Crisis 8 - 9

Question 4: Charismatic, Visionary and Culturally Consistent with Japanese Practises 10 - 12

Conclusion 13

Reference List 14 - 15

EXECUTIVE SUMMARY Hiroshi Okuda, a Japanese leader, became the president of Toyota in 1995. He was known for his outspoken and aggressive personality. He is also rather frank and is never afraid to speak his mind. For example, one question about his competition prompted Mr. Okuda to say, “I don’t understand why Ford chose that kind of styling for the Taurus; it is too round. In Japan, that styling was popular four or five years ago.” (McFarlin & Sweeney 2006, p. 426) He was much different than the other executives in Japan where these Japanese executives usually remain unseen. During his time as the president of Toyota, he adopted many leadership qualities. Firstly, he led Toyota on being a household name. Besides that, he also came up with various innovations and managed Toyota according to his unique style. Okuda was also known as a transformational leader as he implemented many drastic changes to the company. A leader should recognise the circumstances and organisation of the company before choosing to become a transactional or transformational leader as they exhibit very different qualities. When a company experiences a crisis, a leader should be able to make some radical changes in order to turn the company around. This is exactly what Okuda does. Okuda is definitely classified as a charismatic