Innovation and the Sustainable Organisation: Toyota - Essay Example

Innovation and the Sustainable Organisation Individual Written Assignment Table of Contents Introduction 3 The Green Products or Services 3 Sustainability Report of Toyota 4 Toyota Visionary Management 5 Industry Ranking and Reflection 6 Conclusion 8 References 9 Introduction Green technology is one of the major areas of competencies possessed by Toyota Motor Company for the sustainability as well as attainment of intended competitive advantages. Toyota is an automotive manufacturing company, which provides a variety of designs to the customers as per their needs, demands and preferences. Besides automotive manufacturing, it also has other divisions of operations comprising financial services through which the company provides financing assistance to its retail and business customers (Deeppa & et. al., 2012). With due significance to these aspects, this paper intends to explain the green technologies strategized by Toyota along with a literature review on the stated area of research. This paper also deals with fruitful ranking of the industry compared to its rivals from the global market based on the sales of the company. The Green Products or Services Toyota is currently reputed as among the most competitive business, which provides variety of vehicles with new models linked but entirely differentiated on dimension of financial services. The company is much credited for its ability to meet the needs of the customers, which has also empowered its competitive advantages, brewing talented employees valuing their innovative ideas. In its recent endeavors, Toyota has implemented an advanced set of green technologies for improving the lifestyle of the customers by providing them better eco-friendly services. The products produced by Toyota are also preferred for their good quality and new design approach, without compromising the comfort needs of its customers. Overall, these features help in grabbing the attention of customers (Deeppa & et. al., 2012). A major feature providing differentiating advantages to Toyota products is its use of green environmental technologies that also display the responsible attitude of the company towards its stakeholders. The company is also attaining competitive advantages by providing vehicles or cars based on the lifestyle choices of the modern environment and the market structure. Green technologies are thus required for the economic development of the company as well as to attain competitive advantages through greater sustainability of the products (Deeppa & et. al., 2012). Green technologies applied by Toyota also involve durable and comfortable designs, innovations and greater viability of the products that has significantly contributed to the overall development of the company. In accordance with several subject areas, green technologies can be identified as environmental science, energy and green chemistry among others. To be noted in general, green products are mainly produced through green innovation in a manner that is eco-friendly in the markets. Such products have great demands in the market and have the capability to achieve competitive advantages in the long run (Deeppa & et. al., 2012). Sustainability Report of Toyota Source: (Toyota Global, 2014) Toyota Visionary Management Source: (Tata Global, 2013) Toyota has remained much emphasised towards implementing green technologies, as its sustainability strategy to improve the quality of the products helped to suffice the needs of the customers. From the above diagram of Toyota, it can be observed that to improve the sustainable growth rate of Toyota, the company needs to be focused on developing effective co-operation with the stakeholders, enabling greater involvement of its both internal and external stakeholders in the global environment. Stakeholders also play a significant role in producing or consuming products as well as services. Theoretically defining, stakeholders are the one, who invest resources for channelising the products as per the demands of the market and for increasing the rate of sustainable growth of the company (Attah, 2010). Review of Literature According to Zubir, Habidin, Conding, Jaya and Hashim (2012), automotive industry refers to the motor vehicle producing and selling sector. Data obtained in this regard revealed that the automobile industry has been recently incorporating green technologies and innovative ideas for introducing innovative, designer and best quality products in the market. The performance of employees is also essential for the sustainable development of the company, wherein companies functioning in this industry have been emphasizing knowledge sharing and knowledge management as significant attributes (Zubir & et. al., 2012). According to Deeppa, Anupama and Sridhar (2012), sustainability is a concept, which is essential for the long-term growth of the company in recent trends. Taking advantage of these measures, Toyota has concentrated towards implementing its sustainability strategies for the improvement of the business as well as towards increasing the growth rate of the company in a stable rate in the long run. Along with sustainability strategy, the company also should implement green technologies as well as innovative ideas to enhance the quality of the products based on the needs of the customers. Innovation process is also important for Toyota owing to the fact that through innovation processes, managers of the company can develop new and advanced technologies for achieving the competitive advantages in the current global environment (Deeppa & et. al., 2012). According to Attah (2010), environmental sustainability along with global efforts is also essential for the development of sustainable growth of Toyota and other similar companies. In recent trends, environmental sustainability has become an important aspect due to the changes taking place in the global environment not only in terms of customer needs and preferences, but also in the form of global warming among others. Contextually, environmental sustainability strategy refers to retaining the factors, which are important to improve the quality of environment on a long-term basis. Therefore, environmental sustainability strategy is also essential for the development of Toyota on a long-term basis, which can be possible by retaining the several factors currently functioning in the industrial environment (Attah, 2010). Industry Ranking and Reflection Toyota is one of the leading automobile manufacturing companies, which was established in the year 1937 in Japan. Toyota is also known as one of the top-selling companies in the global automotive industry due to the variety of products it serves in the market and for the sustainable development of the environment. The varieties of products of Toyota range from cars, vans, trucks and hybrids through which, the preferences of different customers can be fulfilled (Attah, 2010). Market Share of Automobile Companies 2013-2014 Serial No Description 2013 2014 1 General Motors 16.90% 16.80% 2 Ford Company 16% 16.20% 3 Toyota Company 14.10% 14.20% 4 Honda 9.40% 9.30% 5 Nissan 9.50% 9.10% 6 Hyundai 8.10% 7.60% 7 Volkswagen 3.80% 3.40% Source: (Deeppa & et. al., 2012) From the above table of market share of automobile industries, it can be assumed that Totota holds the third position relative to its competitors based on sales as well as efforts. The market share of Toyota has also increased due to good efforts provided by the employees and managers for improving its scope for sustainable growth. In the year 2013, market share of Toyotas was 14.1%, which increased in 2014 by 14.2%. In subsequence, the profit as well as economic growth of the company has also increased (Deeppa & et. al., 2012). Due to the good positioning in the market, it is easy for the company to enter into new market segmnets for expanding the business. It also helped to increase the popularity of its brand name in the global market. The good rank of Toyota, based on sales implies that the company provides quality assurance along with a variety of product choices to its customers to suffice their continually altering and growing needs. From the above table, it can also be observed that there are several competitors of Toyota, in the market such as General Motors, Ford Company, Honda, Hyundai and Nissan among others (Deeppa & et. al., 2012). The threats of new entrants of Toyota is also low rather than other automobile companies, as the company has high capital for investment along with new technologies as well as innovative ideas, which apparently rewards it with ample competitive advantages. Nevertheless, General Motor and Ford Company are the strong competitors of Toyota based on sales and variety of products. The employers of the company also implement diversification strategies through which they can change the model of the old products and renovate the same according to the needs of the customers (Deeppa & et. al., 2012). Conclusion From the above discussion, it can be stated that Toyota is the leading automobile company, which delivers top quality products to the customers based on their needs. For producing goods quality of products and achieveing sustainability development, the company used green technologies and innovative ideas. Innovative ideas helped the company to produce new designed car, which are different from the products offered by its competitors and can easily attract the attention of the customers rewarding greater competitive advantages. To be stated precisely, by satisfying the needs of the customers, the company can increase its market share and hold a strong position in the market as well as achieve its organizational goals successfully. References Attah, N. V., 2010. Environmental Sustainability and Sustainable Growth: A Global Outlook. Master of Science in Organizational Dynamics Theses, pp. 1-65. Deeppa, A. & et. al., 2012. Innovate To Sustain - A Study On Sustainability Development With Reference To Ford Motor Company. International Journal of Social Science & Interdisciplinary Research, Vol. 1, No. 9, pp. 99-110. Zubir, A. F. M. & et. al., 2012. The Development of Sustainable Manufacturing Practices and Sustainable Performance in Malaysian Automotive Industry. Journal of Economics and Sustainable Development, Vol. 3, Iss. 7, pp. 130-138. Tata Global, 2013. Sustainability Report 2013. Toyota Motor Corporation, pp.-99. Toyota Global, 2014. Sustainability Report 2014. Editorial Policy, pp. 1-7. Read More