Toyota Corp. Analysis & Balanced Scorecard

Topics: Management, Strategic management, Toyota Pages: 7 (1921 words) Published: April 21, 2014

Toyota Corp. Analysis & Balanced Scorecard

BBUS 4251
Instructor: Dr. Rishma Vedd
Name: Tsung-Lin Yeh
Student # T00022252

Contents
Contents page ……………………………………………..1 Summary of Balanced Scorecard …………………………2 Executive Summary ……………………………………………..3 Corporate Strategy…………………………………………3 Critical Success Factors ……………………………………4 Competitive Advantage ………………………………………..4 Balanced Scorecard …………………………………………….5 Recommendation ……………………………………………….7 Conclusion ………………………………………………..7 References ………………………………………………..8

Summary of Balanced Scorecard
Definition:
Balanced Scorecard (BSC) is a strategic performance tool, which is used by managers to monitor consequences and keep track of the execution of activities. According to Kaplan and Norton “balanced scorecard was designed as a strategic tool and used mainly by the executive of an organization, and might not be relate to the employees at operational levels” (2001). In addition, it gives people “a comprehensive measure of how the organization is progressing towards the achievement of its strategic goals” (Vedd, 2011). BSC is measured by both leading and lagging measurements to either look forward or backward to company’s performance. The full assessment of BSC is done through a series of goals/objectives, mapping/measurements, as well as targets and initiatives. Strategic Objectives:

The first measure is the finance, in which by justifying the revenue, the company can learn to improve its profits. The next layer down is related to customer satisfaction in which excellent service, company image, fair price, and high quality can result in good financial results. By exploring the wants and needs of the customer, a company can focus on exactly what is needed to accomplish that goal. The third measure is internal process. This step is similar to value engineering, because a company must decide what values (e.g. good customer and product services) to be added with their product in order to excel in their sales. Last but not least, learning and growth this depicts if the company is willing to change in order to succeed. The final measurement shows that everything (that includes people, systems, and organization) processes through learning and growth. Improvement will be made when everyone within the entire organization “make changes as” everyone “get feedback and learn what works” (Vedd, 2011). Conclusion

A balanced scorecard is a tool used to accomplish many objectives in a company. It helps an organization clearly identify issues regards to its performance. It also communicates the key objectives and “can be experimental, whereby you test your strategies, refine, as well as make changes” (Vedd, 2011). Thus, it is an essential tool for business success. Executive Summary

Toyota Motor Corporation, abbreviated TMC, was established in 1937 by Kiichiro Toyota. As of June 2009, it is currently run by his grandson, Akio Toyoda. It is currently Japan’s largest vehicle manufacturer. It was also the world's largest automobile manufacturer in 2010 by production. Toyota manufactures automobiles in 27 countries and regions throughout the world, and its vehicles are sold in more than 170 countries and regions under the Toyota, Lexus, Daihatsu and Hino brands (Toyota 2009). Toyota currently employs approximately 317,716 people worldwide, and over 4,500 in Australia (Toyota 2009). Evidence of loyalty to its employees has been shown through the decision of not cutting jobs during the global economic downturn. Ever since its conception, Toyota, like many other Japanese companies, has been a firm believer in delivering quality products to consumers at affordable prices. They believe that this can only be achieved by the upholding of loyalty and responsibility to the environment that they operate in. Corporate Strategy

The Toyota Way is a set of principles and behaviours that underlie the Toyota Motor Corporation's managerial approach and...

References: Annual Report (2009). Toyota Motor Corporation
Gallagher, S
Hines, P. (1998), “Benchmarking Toyota’s supply chain: Japan vs UK”, Long Range Planning,
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Kaplan, R.S. and Norton, D.P. (2001b), The Strategy-focused Organization: How Balanced
Scorecard Companies Thrive in the New Business Environment, Harvard Business School
Kurogane, K. (Ed.) (1993), Cross-functional Management: Principles and Practical Applications,
Asian Productivity Organization, Tokyo.
Monden, Y. (1998), Toyota Production System: An Integrated Approach to Just-in-Time, 3rd ed.,
Engineering and Management Press, Norcross, GA.
Nobeoka, Kentaro, Jeffrey H. Dyer and Anoop Madhok, (2002). “The Influence of Customer Scope on
Supplier Learning and Performance in the Japanese Automobile Industry.” Journal of International
Toyota (1999), Ensuring the Achievement of the Second Action Plan (FY2000) and Taking
Actions for the 21st Century, company document, Toyota Environment Management,
Vedd, R. (2011).BBUS 4251: Class Notes. Thompson Rivers University
Witcher, B.J., Chau, V.S
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