Leading and Controlling Part Two - Essay Example

Leading and Controlling Part Two Introduction Toyota Motor Corporation is a reputed brand in automobile sector. It is a multinational organization with its head office situated in Toyota, Aichi of Japan. It is a renowned spinoff operating under the parent group named Toyota Group with a total revenue of ? 18.583 trillion along with a profit of ? 283.55 billion in the year 2012 (Evri Inc, 2012). In addition, it is a branded automobile manufacturer with a market share of 17.3 percent in global market among other apparent players of this sector (Atlantic Monthly Group, 2011).

It is shown in the below diagram: Market Share of Toyota Source: (Atlantic Monthly Group, 2011) However, in recent times, Toyota has witnessed certain consumer complaints and quality related issues. Due to lack of management control, the quality of the products of Toyota declined at a rapid pace in the recent era resulting in product recall. The objective of this paper is to identify the position of Toyota in automobile sector due to lack of control in various functions of management. It also helps to identify the underlying drawbacks in the management system of Toyota, leading to varied types of quality issues within its product lines, which might result in reduction of customer dependency and brand image.

Discussion and Analysis Controlling is referred as the systematic procedure of an organization in order to establish benchmarking standards to enhance the level of performances. It is also utilized within the organizational structure in order to augment the dedication and the commitment level of the employees, resulting in amplification of the entire productivity and profitability of an organization in the long run. Thus, it can be affirmed that controlling is a continuous procedure to determine the pitfalls of the organizational structure and functioning in order to enhance an organization’s corporate image and identity in the market among other competing corporations (Atlantic Monthly Group, 2011).

Similarly, the management of Toyota might also offer more concentration upon the concept of controlling in order to augment its sustainability and brand portfolio within the minds of the customers, resulting in reduction of their switching costs (Ohnsman, Green, & Inaue, 2010). Key Concepts of Controlling Controlling is a management procedure utilized in order to augment the level of efficiency of the organization, with the help of proper coordination and planning. It might help in presentation of varied types of ideas and information resulting in innovation of diverse inventive products, leading to satisfaction of varying desires and needs of the customers.

Moreover, the process of controlling is also described as a persuasive function, implemented in order to reduce operational and production disorders of an organization as well, resulting in reduction of quality issues. Thus, it might help in enhancement of total revenue along with productivity standards (European Federation of Welding, n.d.). Furthermore, controlling is also recognized as a dynamic process utilized in order to enhance the knowledge and understanding of an individual, resulting in amplification of the level of performance.

It might also facilitate an organization to augment its level of efficiency among other competitors in the sector in which it is operating (Atlantic Monthly Group, 2011). Causes of Recalls Similarly, in case of Toyota, due to lack of control by the President Katsuaki Watanabe, the organization had recognized a huge loss in its profit margin and sales due to utilization of inferior quality of vehicle parts. This took place due to the decision of the management of Toyota to implement 10 percent low-priced and lighter quality of engineering parts, in order to cope up with the competitive prices of other organizations.

Moreover, Toyota also attempted to utilize low-quality of carbon fibers within its vehicles, which might catch fire very easily, to diminish the prices of the vehicles, to make it affordable for all (Ohnsman, Green, & Inaue, 2010). This decision acted in a negative way by lowering customers’ dependency and loyalty, leading to them switching over towards other substitute organizations. As a result, the corporate image and the brand uniqueness of Toyota declined, causing downfall of its total revenue and sustainability due to the recent issue of product re-call (Toyota, n.d.; Bloomberg L.P., 2005).

The prime cause behind this mishap is lack of management control and inspection upon the organization’s internal and external factors, resulting in downfall of employee performance and quality standards. It might result in financial loss and diminution of brand distinctiveness, which are extremely essential to retain market share for Toyota in this era cut-throat competition (Rowley, 2009). Conclusion Toyota is a renowned organization, operating as one of the leaders in the automobile sector.

However, its reputation and dominance over other vehicle manufacturers has seen a substantial setback due to lack of management controlling functions which has resulted in issues such as product recalls. Due to which, the effectiveness and value proposition of Toyota is diminishing at a rapid pace, which might hinder its exclusivity within the minds of its customers. Thus, the management of Toyota might attempt to offer more focus upon the controlling operations of the organization in order to enhance its output and assortment in the market.

It might also facilitate Toyota to retain its market value in the future times. References Atlantic Monthly Group. (2011). January U.S. auto sales race past 2010 tally. Retrieved from http://www.theatlantic.com/business/archive/2011/02/january-us-auto-sales-race-past-2010-tally/70623/ Bloomberg L.P. (2005). The man driving Toyota. Retrieved from http://www.businessweek.com/bwdaily/dnflash/jul2005/nf20050721_7169_db053.htm European Federation of Welding. (n.d.). Fundamentals of management control.

Retrieved from http://www.ewf.be/media/documentosDocs/doc_18_ewf-646-08-fundamentals-of-management-control.pdf Evri Inc. (2012). Toyota. Retrieved from http://www.evri.com/organization/toyota-motor-0x4c848 Ohnsman, A., Green, J., & Inaue, K. (2010). The humbling of Toyota. Retrieved from http://www.businessweek.com/magazine/content/10_12/b4171032583967.htm Rowley, I. (2009). Toyota’s cost-cutting drive: making the tough choices. Retrieved from http://www.businessweek.com/globalbiz/content/jan2009/gb20090128_259606.

htm Toyota. (n.d.). Toyota. Retrieved from http://www.toyotabharat.com/cars/new_cars/index.aspx