Subject: MANAGEMENT PRACTICES AND ORGANIZATIONAL BEHAVIOUR

A CASE STUDY ON Toyota: Americas Best Car Company

Submitted to: Preet Kanwal

Submitted by: Haresh Verma(B26) 11012076

::COMPANY PORTFOLIO::
TOYOTA MOTOR CORPORATION Toyota Motor is one of the leading auto
manufacturers in the world. Toyota sells its vehicles in more than 170 countries and regions worldwide. Toyotas primary markets are Japan, North America, Europe and Asia. It is headquartered in Toyota City, Japan. It is mainly engaged in the automobile business and financial business. The Company operates through three business segments. The Automobile segment is engaged in the design, manufacture and sale of car products, including sedans, minivans, 2BOX cars, sport-utility vehicles and trucks, as well as the related parts and accessories. The Finance segment is involved in the provision of financial services related to the sale of the Company's products, as well as the leasing of vehicles and equipment. The Others segment is involved in the design, manufacture and sale of housings, as well as the information and communication business.

::CASE SUMMARY::
In August 1957, the first production of the company was two tinny cars like a brick having one roof and four doors, that get overheated and vibrated when the speed goes more than 60 miles per hour. After the years of launch, toyota realized that they have done mistake. so, they pulled their model out of the market. After this humiliation , Toyota came back in market few years later with the better model of the car with superb performance. In 2006 ,Toyota became worlds most profitable automaker, where it sold 2.5 million cars & truck and having 15% market share in the U.S. Being a hard competitor for the existing companies i.e GM,FORD AND CHRYSLER .Toyota was named one of Americas most admired company. Toyota had successfully managed the issues and problem like discriminatory taxes, import restrains and hatred feeling for person of different countries. neverthless, it became most prestigious company .Toyota doesnt make the iconic car but making trouble free product that works and looks fine. so that the customer get ready to pay the premium cost for that product. the company has many deep thinkers and professional advisors who can easily read the peoples mind. They have staff of 116 people for monitoring the industry for the and keep tab on economic development. Its mission is to predict consumer trends and manufacture the cars and trucks for making the profit for them. Each professional is expected to spend their time out in the field talking to the car buyers. Every company follows the same but the one thing that Toyota different from the rest of the companies is that its executives actually listen and have turned their insights into profits. In 1988, when it started production in its first assembly plant in George town .In the order of maximising approach or spread the company all over ,they carefully locate each new assembly branch in different state. Toyota has no political committee, but it has built an effective lobbying operation .so that it has link with government and public. As Toyota spreaded business in U.S, this helped U.S a lot in developing. Toyota employs 34,600 employs directly and 40,000 more indirectly at suppliers and dealers. Every U.S function sales and marketing, R&D ,manufacturing reports to japan

and Japanese coordinators also to U.S .somehow, this is the company that run by the two language and two culture hybrid works.

::SWOT ANALYSIS::

INTERNAL FACTORS:

STRENGTHS # Highly determined company. # Profitable automaker # Manage to survive discriminatory taxes, import restraints and the occasional xenophobic hissy fit # Unburdened by retiree obligations and union contracts # Read consumer car psyche # Predict consumer trends # Tapping into appeal of green revolution with hybrid power Prius # Sunk deep roots in US # Two culture hybrid work

WEAKNESS # Toyopet crown , overheated & vibrated at 60 miles per hr # Prius accounts for less than 5% of us sales # No political action committee # It can be brassy when it is time to clear inventory # Coordinators shadow each operation and make there own reports to headquarters # Too much work pressure

EXTERNAL FACTORS: OPPORTUNITIES # Toyota lying behind the two American perennials General electric and Starbucks # They have small cars ready to sell when the first oil shock hit in 1970s # New models # Increasing demand for hybrid electric vehicles

THREAT # Never been a style leader # Losing to big companies # Competition in global automotive market

:: Q & A::
Q: What evidence can you identify, in this case, of Toyotas being an open system? A: Evidence from this case like Toyota reads the public mind is the think tank at Toyota Motor Sales in Torrance , Calif, where a research department staffed by 116 people monitors the industry and keeps tabs on demographic and economic developments led Toyota as a n open system. Its mission: to predict consumer trends and create a lineup of cars and trucks to capitalize on them. They expect that each professional is expected to spend time out in the field talking to car buyers. What distinguish Toyota from others is that its executive actually listens and have turn those insights into profits.

Q: What evidence of centralization or decentralisation can you find in this case? A: In this case we have found evidence of centralisation as in terms of management every U.S. function sales and marketing, R&D, manufacturing there reports to Japan. U.S. managers sometimes endure 20hr roundtrip flights to attend a single meeting. Japanese coordinators in the U.S. shadow each operation and make their own reports to headquarters.

Q: From the standpoint of Toyotas culture, what does the story of the failed Toyopet Crown symbolically say to both new and long- term employees? A: To both new and long term employees Toyotas culture says that story of the tarnished Toyopet Crown wasnt inevitable about Toyotas success . It has managed to survive discriminatory taxes, import restraints, and the occasional xenophobic hissy fit .A less determined company might never have returned after this humiliation. But Toyota came back a few years later with a better car and has gone from strength to strength ever since.

Q: Which approach, mechanistic or organic, would be better for a company like Toyota that designs, manufactures, and sells technically sophisticated products such as cars and trucks? Explain. A: For the company like Toyota that designs, manufactures, and sells technically sophisticated products such as cars and trucks I think both mechanistic and organic approach should be there simultaneously . Since on one hand where they read the public mind , predict consumer trends, expect each professional to spend time out in the field talking to car buyers, employ 34,600 Americans directly and 4,00,000 indirectly . On the other hand in terms of management every U.S. function sales and marketing, R&D, manufacturing there reports to Japan. U.S. managers sometimes endure 20hr roundtrip flights to attend a single meeting. Japanese coordinators in the U.S. shadow each operation and make their own reports to headquarters.