Toyotas Top Management Leadership - Case Study Example

Two primary root causes, Toyota’s rapid growth, and increasing product complexity have been attributed to the onset of the company’s quality problems in the US (Connor, 2010). Toyota’s quality problems can be solved by reconsidering the company’s senior management leadership, organizational structure, and culture, as well as its production and Product development systems. Nevertheless, transforming the company’s top management leadership is the most effective strategy since the company requires individuals with an in-depth knowledge of how different components fit perfectly together into the bigger picture of engine control safety (Ohmae, 2010). Transforming Toyota’s top management leadership demands a total overhaul of its top executives, by appointing individuals with a proven track record and a comprehensive understanding of the Toyota Production System. The company’s top executives must always commit themselves to the promotion of best practices, processes, flexibility, continuous orientation of new people, and a supportive organizational culture to ensure continuity of the company’s success.

Introduction

Headquartered in Toyota City, Aichi-Japan, Toyota Motor Corporation is a Japanese multinational auto manufacturer that employs nearly 333, 498 workers all over the world. Toyota Motors was started in 1933 by Kiichiro Toyoda as an offshoot of the parent company, Toyota Industries, with a focus on automobiles and it was later established as an independent company in 1937. The company has experienced tremendous growth over the years, expanding both in scale and sales, thereby rivalling the world’s largest auto manufacturers to claim its share of the global auto industry market. As of November 2013, the company has been ranked as the 12th largest company in the whole world by revenue, and it is the first automobile manufacturer in the world to make vehicles in tens of millions annually.

The company’s journey has been long and impressive; in 1934, while it had operated as a department of Toyota Industries, the company had created its first-ever product (the Type A engine). While still under Toyota Industries, the company created its first-ever passenger car, the Toyota AA, in 1936; this marked the start of a long journey to hegemony in the global auto industry business. Today, Toyota motors manufacture automobiles under five major brands which include the Toyota brand, in addition to the Lexus, Scion, Hino, and Ranz. Apart from that, the company also holds a stake in other minor auto manufacturing companies such as Daihatsu (51.2%), Isuzu (5.9%), Fuji Heavy Industries (16.6%), and Tesla (0.27%). Additionally, the company holds joint ventures with China’s GAC Toyota and Sichuan FAW Toyota Motor, India’s Toyota Kirloskar, and Czech Republic’s TPCA, in addition to other companies that are not in the automobile industry.