Toyota Organization Using the Nadler-Tushman Congruence Model - Case Study Example

Toyota (M4) Table of Contents I. Introduction ………………………………………………………………….…… 3 II. Toyota Organization Using the Nadler-Tushman Congruence Model ……. 3 III. Key Outputs that Exist at Individual and Organizational Levels ………….... 4 IV. Importance of Outputs in the Overall Performance of Toyota ………………. 5 V. Discussion ………………………………………………………………………… 6 VI. Conclusion …………………………………………………………………….…. 7 Appendix I – Toyota’s Inputs to Congruence Model ……………………………….... 8 Appendix II – Toyota’s System Components to Congruence Model ………………. 9 Appendix III – Toyota’s System Outputs to Congruence Model …………….…….. 10 Bibliography / References ………………………………………..…………………….. 11 Introduction Toyota being the seventh largest company and the third largest car manufacturer worldwide struggles to maintain its position in the car manufacturing industry. In line with the tight competition in the domestic and global markets, Toyota decided to invest on IS Solutions in order to shorten the time period wherein the customers make their vehicle purchase decisions. (p. 2) Eventually, the utilization of the corporate website could enable Toyota management establish a long-term relationship with its customers. For this study, the researcher will analyze the organization of Toyota using the Nadler-Tushman Congruence Model. In the process, the researcher will identify the key outputs that exist at individual, group and organizational levels. Eventually, the researcher will justify the importance these outputs in the overall performance of the company. Prior to the conclusion, the researcher will discuss importance of e-loyalty, how the various outputs could affect each other as well as the possible problems or synergies that may be created by conflicts and poor coordination of the outputs. Toyota Organization Using the Nadler-Tushman Congruence Model There is a very tight competition in the car manufacturing industry in UK. (p. 2) Considering the fact that Toyota customers often takes several months prior to making their final decision on purchasing a new Toyota vehicle, there is a higher probability that other car manufacturers and dealers could convince Toyota’s prospective buyers to purchase a different brand. As a strategic move in developing a better and stronger relationship with Toyota’s customers, the top management decided to establish a good working relationship with IS Solution – a company that has the expertise in developing a complete web solution. Throughout the existence of the IT industry, most companies acknowledge the importance of business and technical analysis is well recognized but not the information architecture. (p. 2) This is not the case with IS Solution since the company has both the expertise and long-term experience on business analysis, technical analysis and information architecture which are all necessary in developing an effective and efficient web solution. In order to ensure the efficiency of the website design, Toyota management implements a regular workshop in order to draw out the specific requirements the company needs based on its past customer relationship experiences. (p. 3) Prior to the website development, IS Solution managers and technical experts will collaborate on the use of the gathered information from Toyota’s workshop together with the IS Solutions’ award-winning Studio wherein the input of well-trained and experienced interactive designers will be considered in developing the best design for Toyota’s website. (p. 3) (See Appendix I – Toyota’s Inputs to Congruence Model on page 8) Key Outputs that Exist at Individual and Organizational Levels IS Solutions provided Toyota with a flexible, personalized website that meets the organizational goal of engaging customers to do business with Toyota Company and it respective car dealer. (p. 4) In order to ensure the success of using the website; IS Solutions provided a customized training program for Toyota’s business management and technical users. (p. 5) The training program was designed to allow Toyota employees be familiarized with the system. As a result, business managers were empowered with sufficient knowledge and skills with regards to editing and monitoring the website contents. In the process, managers could easily remove the photos and description of the obsolete car models in exchange with the latest car models or implement new rules and editorial contents on a real-time basis. (p. 4) Managers could also monitor the number of visitors that comes in and out of the website. (p. 4) In line with enabling Toyota’s business managers to develop a better understanding of their customers’ preferences, top management could update the web content in a way that it will satisfy the specific needs of the consumers. To satisfy the needs of the entire organization, IS Solutions upgrades the system when necessary. (p. 6) Since the website is designed in a hierarchical structure, Toyota management could easily arrange the web contents based on its importance. As a strategy on increasing the personal interest of the viewers, IS Solutions developed the ‘persistent guest’ technology which enables the content to be personalized by the visitors. (p. 4) Toyota encourages the viewers to register on the website by providing them with added services related to latest information on used cars, launching of a new car model, road-show events, latest promotions and news items from the local dealers. Registered users could also book for test drives on-line and request for a vicinity mapping application to enable them to locate the nearest dealers by postcode. (p. 5) (See Appendix II – Toyota’s System Components to Congruence Model on page 9) Importance of Outputs in the Overall Performance of Toyota In relation to the tight competition in the UK car industry, Toyota could easily lose its existing and previous customers by not establishing a good relationship with them. The fact that there is a significant growth in the web usage since the mid-1990 is a good sign of establishing a good interaction between Toyota and its customers. (p. 6) (See Appendix III – Toyota’s System Outputs to Congruence Model on page 10) According to Jones and Sasser (1995), a high level of customer’s satisfaction could eventually lead to a high customer loyalty. The authors noted that: “customer-satisfaction information can be used as a critical barometer on how well the company is serving its customers.” (Jones and Sasser, 1995: 95) When a customer keeps on returning to the website to purchase some goods or services, it is most likely that the customer is very much satisfied with the service he/she is getting from the company. For this reason, there is a higher chance that the company has won the loyalty of the customer. Discussion E-loyalty used in online marketing is a long-term strategy used by businesses based on a value proposition in order to enhance the relationship building between the company and its customers. (Reid Smith & Associates, 2001) Basically, e-loyalty is about engendering trust and value towards the valuable customers by humanizing digital loyalty. Therefore, it helps create a strong relationship with the website’s prospective customers and customers online. One thing nice about the e-loyalty program is the fact that it provides a real-time feedback via Web logs, tracking software and customer feedback prompts. This feedback can allow the administrator to identify the problems and provide a feedback faster. (Anderson and Srinivasan, 2003) A good leadership skill among Toyota’s managers as well as a strong organizational culture and goals (Burke and Litwin, 1992) contributes a lot to the success of the project. According to Dessler (2001), leaders with a competent leadership skill are individuals who are capable of inspiring another person who often times have the “drive to achieve their goals; the desire to lead; self-confidence; cognitive ability; honesty and integrity; as well as having sufficient knowledge in doing business.” The fact that Toyota employees were actively participating in the development of its website without the unnecessary use of coercion also shows that Toyota managers have good communication skills. (Huth, 2001) The absence of a good leadership and two-way communication line between the managers and the employees could increase the possibility of organizational conflicts and miscommunication resulting to the failure of the website project. Conclusion In line with the tight competition among the players within the car manufacturing industry in UK, it was necessary for Toyota to invest in the development of a company website. In the process, the company could establish a good relationship with its customers. The website project of Toyota was successful in establishing an interactive communication line between the company and its prospective customers. In the absence of a good leadership and communication skills, the implementation of the said project is unlikely to be successful because of the possible conflict and errors that may arise along the way. Appendix I – Toyota’s Inputs to Congruence Model Inputs Environment Resources History Strategy IS Solution has the expertise and experience on business analysis, technical analysis and information architecture needed in developing a complete web solution. Implements a workshop to draw out the requirements of Toyota to form the basis of development for the website. Customers decision making process when buying a vehicle takes several months. Toyota establish a good working relationship with IS Solution to extend its expertise in developing a complete web solution. Tight competition in the car manufacturing industry in terms of brands and car models. Adopts the IS Solutions’ award-winning Studio (input from trained and experienced interactive designers). Throughout the IT industry, the importance of business and technical analysis is well recognized but not the information architecture. Appendix II – Toyota’s System Components to Congruence Model System Components Task Individual Formal Organizational Arrangements Informal Organization IS Solutions provided Toyota with a flexible, personalized website that meets the organizational goal of engaging customers to do business with Toyota. Toyota’s business managers are able to develop a better understanding of their customers’ preferences allowing them to update the web content to satisfy the consumer needs. IS Solutions initially used BroadVision’s One-to-One technology version 3.0 and eventually upgraded with the latest version 7.0. The website provides the consumers with data on used cars that specify the mileage, care model, color, etc. Registered users automatically receives message alert via e-mail. IS Solutions provides Toyota’s business management and technical users with a customized training program to enable them to familiarize with the system. Business managers could easily edit the website to remove obsolete car models and add the latest ones or implement new rules and editorial contents on a real-time basis. Managers could also monitor the number of visitors that comes in and out of the website. The website is designed in a hierarchical structure that displays the web content against user profile on the web page. In the process, contents labeled as global is considered as ‘priority’; followed by specific zone and default contents. Registered users are also informed with the latest developments like launching a new car model, road-show events, latest promotions and news items from the local dealers. To enable Toyota achieve a higher ratio of browsers, IS Solutions developed the ‘persistent guest’ technology which enables the content to be personalized by the visitors. Registered users could also book for test drives on-line. Visitors are provided with vicinity mapping applications that allows them to locate the nearest dealers by postcode. Appendix III – Toyota’s System Outputs to Congruence Model Outputs (e.g. Performance and Effectiveness) Individual Behavior and Affect Group and Intergroup Behavior System Functioning (i.e. organizational) The use of Toyota website allows the managers to maintain an open communication line with its customers outside office hours. Toyota and IS Solutions maintain a good working relationship in terms of providing Toyota and its customers with the necessary hardware and software supply, support as well as outsourcing. Significant growth in the web usage started back in mid-1990s showing that interaction between Toyota and its customers has strengthened. The constant communication with the customers enables Toyota to narrow down the decision-making of its prospective customers upon purchasing a new vehicle. The use of configuration in the web servers allows the BroadVision interaction managers to closely monitor the available load vs. the site traffic. To maintain the increasing number of web usage, Toyota will continuously upgrade its systems in load-sharing configuration in order to support the main organizational goal of Toyota. Bibliography: Toyota. “Toyota Case Study: The Consistent Growth in Traffic to the Toyota Site is a Reflection of the Work that has Sought to Position Toyota at the Forefront of the Automotive Industry in UK.” 2003. References: Anderson, R.E. and S.S. Srinivasan. "E-Satisfaction and E-loytaly: A Contingency Framework." Journal of Psychology and Marketing (2003): 20(2):123 - 128. Burke, W.W. and G.H. Litwin. "A Causal Model of Organizational Performance and Change." Journal of Management (1992): 18(3):523 - 545. Dessler, G. Management Leading People into the 21st Century. Upper Saddle River, New Jersey: Prentice Hall Publishers, 2001. Huth, A.J. "Born to Lead or Made to Manage - We Need Both. The Strategic Edge." 2001. Jones, T. and E. Sasser. "Why Satisfied Customers Defect." Harvard Business Review (1995): November - December: 89 - 99. "Reid Smith and Associates." 2001. What is E-Loyalty? 17 February 2008 . Read More