Assignemnt 11 – Essay Example

1. When was your organization founded? Who founded it? What opportunity was it founded to exploit? Ans. Toyota did not outrightly start as an automobile manufacturing company. Actually, the family that started it was initially engaged with just spinning and weaving textiles and looms under Toyoda Automatic Loom Works, a small division, which was headed by Kiichiro Toyoda. How it came about to manufacture vehicles started when the Japanese government at war with China encouraged this company to manufacture the needed domestic vehicles. Hence, this opportunity created an immediate demand.
2. How rapid was the growth of your organization, and what problems did it experience as it grew? Describe its passage through the growth stages outlined in Greiner’s model. How did managers deal with the crisis that it encountered as it grew?
Ans. Toyota was seen as a fast growing company moving at a pace comparative to the developing economy of Japan. Its rapid upsurge are clearly manifested in the annual increase in number of units/ production and sales (kindly see Attachment A). Such rapid organization growth may be attributed to the following:
Growth through creativity
Entrepreneurs develop the skills to create and introduce new products.
Organizational learning occurs
Availability of knowledge and skills ( Toyota giving priority to developing its by giving them training and on the job actual experience; practice of kaizen and genzi genzubu );
Provided role models (i.e. integration of Japanese discipline and culture with technology now being emulated by other car manufacturing firms.)
Extension of its environmental niches (from Japan to other regions like North America, Asia and Europe Availability of knowledge and skills e.g. the TPS Way ;
In the process of natural selection. Toyota’s strategy is more characterized to be r-Specialist which means
Moving quickly to focus on serving the needs of a particular group (TMC produced economy cars to address the problem of oil crisis then.)
As r-Specialists characterized by growth which they often become generalists and compete in new niches. This is clearly manifested whenever TMC opens a regional office in any part of the world. They try to introduce new models of vehicles, for example, the first hybrid electric-gas model cars to compete globally.
Institutional Theory of Growth – Coercive isomorphism exists for Toyota.
This is said to exists as Toyota adopts certain unique norms, ethics to come up with a unique because of pressures exerted by other organizations and by society in general
Increasing dependence of one organization on another leads to greater similarity
From Greiner’s Model of Organizational growth, Toyota has been identified with achieving growth through :
1) Creativity- The TPS way
2) Direction – Japanese managers are position on top or head of various departments and divisions
3) Delegation – Toyota enhances Team Work
4) Coordination- Coordination is strictly implemented between Toyota headquarters and regional offices.
5) Collaboration – Merging of Toyota Group
3. What stage of the organizational life cycle is your organization in now? What internal and external problems is it currently encountering? How are managers trying to solve these problems?
Ans. Organizational Decline
Toyota seemingly may have grown too much that it failed to anticipate, recognize, avoid, neutralize, or adapt to external or internal pressures that threaten its long-term survival.
Internal Problems – Leadership within and supposed coordination mechanisms that are in place need reassessment
External Environment – Global competition in terms of marketing strategies, Environmental Issues (gas to electric based, etc)
4. How are managers trying to solve these problems?
Managers have changed their strategy with the adoption of Innovation Management to achieve Fast Renovation which include integration of Innovated Team concepts and R& D, among others. (Wentz, 2010)
Source:
Wentz, R.F. Organizational Structure of Innovation: How Toyota. 2007. Innovation-machine.com. Web. July 05, 2010. http://www.the-innovation-machine.com/?p=84

5. Has your organization ever shown any symptoms of decline? How quickly were managers in the organization able to respond to the problem of decline? What changes did they make? Did they turn the organization around?
Signs of decline can be traced in the isolated crises that may have occurred such as the Vehicle Recall Campaign in 2009-2010 . The recall has cost the company a large sum of money amounting to about US$1.93 billion and has affected its reputation as one of the top-selling car companies in the world. This may be due to the following:
5.1 Toyota was unable to recognize the internal or external problems that threaten their operations;
5.2 Faulty action - TMC managers may have made the wrong decisions because of conflict in the top-management team, or they may have changed too little too late fearing more harm than good from reorganization;
5.3 A crisis was recognized in the midst of their operations which can only be stopped through either right strategies and change in structure. Toyota opted for the former instead of the latter.
How quickly were managers in the organization able to respond to the problem of decline?
Ans. Toyota’s launch of a top-to-bottom review of the process Focused on acquiring more information. As earlier mentioned, it changed its strategy by adopting Innovation Management.
What changes did they make? Did they turn the organization around?
Fast Innovation Strategies adopted by Toyota
1. Delegation of Decisions to Innovation Teams
2. Integration of R&D into the Business Units
3. Co-Location of Teams and Departments
4. Central Innovation Teams
5. Central Innovation Funds
6. External Interface for Open Innovation
7. Merger & Acquisition Department
ATTACHMENT A
Toyotas Net Revenue by Geographical Regions for the Year Ended 31 March 2007
Geographic Region
Total Sales ( Yen in millions)
Japan
8,152,884
North America
8,771,495
Europe
3,346,013
Asia
1,969,957
Others
1,707,742
Production and sales numbers
Calendar Year
Total
Japan
United States
Production
Sales
Production
Sales
Sales
1935
20
1988
3,956,697
2,120,273
1989
3,975,902
2,308,863
1990
4,212,373
2,504,291
1991
4,085,071
2,355,356
1992
3,931,341
2,228,941
1993
3,561,750
2,057,848
1994
3,508,456
2,031,064
1995
3,171,277
2,060,125
1996
3,410,060
2,135,276
1997
3,502,046
2,005,949
1998
5,210,000
1999
5,462,000
2000
5,954,723
1,619,206
2001
5,847,743
4,046,637
2,291,503
1,741,254
2002
6,309,307
4,138,873
2,218,324
1,756,127
2003
6,826,166
4,244,667
2,305,635
1,866,314
2004
7,547,177
4,454,212
2,387,556
2,060,049
2005
8,232,143
4,611,076
2,368,817
2,260,296
2006
9,017,786
5,085,600
2,368,706
2,542,524
2007
9,497,754
5,119,631
2,261,515
2,620,825 citation needed]
2008
9,225,236
4,911,861
2,153,197
2,217,662
2009
7,234,439
3,543,199
1,996,174
1,770,147
Calendar Year
Production
Sales
Production
Sales
Sales
Total
Japan
United States
Source: http://en.wikipedia.org/wiki/Toyota#2007.E2.80.932010_financial_crisis
WORKS CITED
Abilla, P. Toyota Motor Corp. : Company History. Shmula.com. Jan. 05, 2007 Retrieved. Web. July 05, 2010.http://www.shmula.com/291/toyota-motor-corporation-company-history
Shirozu, N. Inside Toyota, Executives Trade Blame Over Debacle. The Wall Street Journal. Asian Edition, Auto Industry News. April 13, 2010.Web. July 05, 2010. http://online.wsj.com/article/SB10001424052702303395904575157452266613406.html
Soriano, J. Evaluating Toyota’s Response to Recall. PR Solutions.com. Feb. 15, 2010.Web. July 05, 2010. http://johnsoriano.wordpress.com/2010/02/15/evaluating-toyota-motor-sales-response-to-the-recall/
n.a. Toyota history: Corporate and Automotive. n.d. Toyoland. Com.Web. July 05, 2010
http://www.toyoland.com/history.html
n.a. Using the Greiner Curve: Surviving the crises that come with growth. MindTools.com.2010 Web. July 05, 2010 http://www.mindtools.com/pages/article/newLDR_87.htm
Wentz, R.F. Organizational Structure of Innovation: How Toyota. 2007. Innovation-machine.com. Web. July 05, 2010. http://www.the-innovation-machine.com/?p=84
Attachment A
Production and Sales of Toyota Cars/ Vehicles
CALENDAR YEAR
TOTAL
JAPAN
UNITED STATES
Production
Sales
Production
Sales
Sales
1998
5,210,000[90]
1999
5,462,000[91]
2000
5,954,723[92]
1,619,206[93]
2001
5,847,743[94]
4,046,637[94]
2,291,503[94]
1,741,254[citation needed]
2002
6,309,307[95]
2003
6,826,166[97]
2004
2005
2006
2007
2008
2009
4,138,873[95] 2,218,324[95] 1,756,127[96] 2003 6,826,166[97] 4,244,667[97] 2,305,635[97] 1,866,314[citation needed] 2004 7,547,177[98] 4,454,212[98] 2,387,556[98] 2,060,049[99] 2005 8,232,143[100] 4,611,076[100] 2,368,817[100] 2,260,296[citation needed] 2006 9,017,786[101] 5,085,600[101] 2,368,706[101] 2,542,524[102] 2007 9,497,754[103] 5,119,631[103] 2,261,515[103] 2,620,825[citation needed] 2008 9,225,236[104] 4,911,861[104] 2,153,197[104] 2,217,662[105] 2009 7,234,439[10