Organizational Growth and Decline - Essay Example

Organizational Growth and Decline Organization is actually the process of organizing something or the structure of arrangement in given company. Manycompanies in the world adapt different organizational behaviors that suit them. The shareholders in a company have a major role in deciding the company’s organizational structure. It is important to note that the organizational structure of a company largely dictates its growth and consequently accounts for its decline. This paper will analyze the organizational growth and decline of Toyota motor company.

It will refer to the Toyota article placed on Forbes magazine. The paper will conclusively analyze the points raised in the article, and draw the significance to the manager’s understanding. Toyota Motor Company started its operations in 1937, and its headquarters are located in Toyota City, Japan. The company deals in designing, manufacturing, assembling, and sale of trucks, vans, passenger cars, sports cars, and motor vehicle spare parts. Its products run on gasoline and electric power. The synonymous ventures of the company are automotive, financial services and motor vehicle assembly.

The company has grown massively in the last few years. This growth draws its attributes to good organization. The higher average realization per vehicle has been attributed to the regular introduction of new models and diversification of the existing models. The efficiency of the Toyota products has boosted the Toyota sales in the markets. Toyota daring investments on new markets like Asia also promoted is success in the competitive motor vehicle markets. However, Toyota faced its worst decline in public trust and sales turnover in the year 2011.

The earthquake and tsunami in Japan adversely hit its North America and Japan markets thus crippling its growth. The continued recall of sold products by Toyota has largely tarnished its reputation. As a result, customers lost their trust in products from Toyota Company. There was a low vehicle resale value and the obvious sales decline. With a record 14 million recalled vehicles, the U.S. Transportation Department fined Toyota Company $48.4 million (Forbes, 2012). All these factors have significant contributions to the organizational decline in the company.

However, the company is optimistic that the recovery of the world economy will subsequently boost its sales. The management also plans to expand its business network to India, China, Brazil, and Russia. It also seeks to increase the production of hybrid automobiles and lower the cost of production. There are intensions to expand the automotive market from medium to large in developed countries (Forbes, 2012). However, the increasing competition, environmental awareness, and quality issues are aspects of marketing that the company will need to address carefully with time.

Managers will need to understand about the uncertainties like earthquakes that can dent a company’s growth within a short time. They should consider insuring the company for such calamities. The late recall of products is an issue that managers should avoid at all costs because it adversely affects the public trust, sales turnover and equally attracts fines from the trade organizations. Managers should foresee the implementation of quality production policies in the company because it is the backbone of market competition.

Introduction of new products, expansion of market base, and diversity in production are avenues that company’s can use to boost their sales in these competitive markets. Company managers should understand and implement Environmental awareness policies to avoid conflicts with the law. Managers should also understand the effects of world’s economic clash and align themselves accordingly to evade huge profit losses. The efficiency of the company’s products holds the key to their growth. Reference Forbes (2012).

“Toyota Motor Corp”. Forbes. Retrieved from http://finapps.forbes.com/finapps/BuyHoldSellAnalysis.do?tkr=TM