Human Resource Development in Toyota Culture - Case Study Example

Toyota Company Name Institution Name Course Name and Code Date Table of Contents BACKGROUND 3 History 3 Ownership 3 Brand Portfolio 4 BRAND INVENTORY 5 Brand Elements 5 Product 6 Pricing 6 Distribution 6 Advertising and Communication 7 Supportive Products (Leasing and Hiring) 7 Environmental Sustainability / Corporate Social Responsibility 7 BRAND EXPLORATORY 8 Consumer Knowledge 8 Brand Resonance Pyramid 8 Competitive Analysis 10 RECOMMENDATIONS 11 Business Level Strategy 11 Functional Level Strategy 12 Enhancement of Market Share 12 REFERENCES 13 BACKGROUND History In the 1920s, The Toyoda Model G Automatic Loom was invented by Sakichi Toyoda. The technique is allowing the machine operation when a problem is detected/occurs and later on, the technique was introduced into Toyota Production System (Toyota Company, 2015). In 1933, Toyoda Automatic Loom Works was established, and it started producing automobiles. In 1937, Toyota Motor Company was established, and the name of the automobiles was “Toyoda”. The name was later changed to “Toyota” because of the eight brush strokes and the lucky number associated with the process (Tomino, Hong & Park, 2011). In addition, the change of the name ensured the business operated in the modern business environment because the original name meant “fertile rice paddies” (Takeuchi, 2008). Since its inception, Toyota has continued to develop automobiles and improved the technology based on competition (Toyota Company, 2015). The headquarters of Toyota is Toyota, Aichi Japan and serves worldwide customers. Some of the products include engines, commercial vehicles, luxury vehicles and automobiles. Toyota also expanded its activities to leasing, financing and banking to address the requirements of the customers. Moreover as of 2014, the company employed more than 338,875 across the world (Toyota Company, 2015). Ownership Toyota is a listed company, and people have the right to trade its shares (Toyota Company, 2015). However, some of the major shareholders include Nippon Life Insurance Company, State Street Bank and Trust Company, The Master Trust Bank of Japan, Toyota Industries Corporation and Japan Trustee Service Bank. Brand Portfolio Toyota Company has numerous products within its Toyota Brand. The following chart summarizes some of the products: Apart the automobiles indicated, others products include: Varieties of cars – the products are associated with sedans and other forms. For example, Toyota Premio and Toyota Wish are examples of products that share technical components but the design of the bodies are different. Special Purpose Vehicles – these vehicles have add-on, which include Hiace van with power lifter, load labor saving vehicle, refrigerator/freezer vehicle and container van. These products are aimed at the business environment in which effectiveness is required (McQuade, 2008). Equipment and vehicles for the physically impaired – the products under this categorically include Friendmatic Vehicle “Wel Carry”, Side access vehicle, wheelchair accessible vehicle (rear lift and rear slope type), and passenger lift up seat vehicle. These products are targeted to customers that face challenges in using the vehicles. Commercial and specialty vehicles – the products are aimed to fulfill the different requirements of the users. For example, pickups and double cabins are aimed at business-oriented individuals. In addition, it allows the users to use the vehicles to accomplish numerous functions (Sahoo et al., 2008). In short, Toyota has numerous products in which it becomes difficult to enumerate. The development of the products is based on the innovative and creativity of the research within the Toyota Company (Toyota Company, 2015). Toyota Company aims to become a one shop for automobiles and hence, the extensive research and developments. BRAND INVENTORY Numerous factors can be used to credit the success of Toyota in the automobile industry (Toyota Company, 2015). The section describes some of the factors that have allowed Toyota to become among the leaders in the Automobile industry Brand Elements The Toyota brand is based on the logo of the company (Huang & Hsu, 2008). The logo was developed in the early 1930s, and it is an aspect that is necessary for all the automobiles. Seeing the logo, an individual will associate the logo with the company. Therefore, it has a strong brand recognition based on the unique logo. Product Toyota has developed different products with the aim of addressing the requirements of different market targets. The products are developed in a manner that the requirements of the consumers are included in the production (Tomino, Hong & Park, 2011). For example, products for basic shopping are available while products for commercial purposes such as pickups exist (Huang & Hsu, 2008). The array of the products is to create loyalty in that when a customer is satisfied with a single product; the customer will look for more products from the same company. Therefore, Toyota’s array of products fulfills different requirements of the customers. Pricing The pricing strategy is based on the product, the targeted audiences and capability of the product. The technicality of the car also determines the cost. For example, the Corolla products are cheaper compared to the luxury product, such as the Toyota Land Cruiser 200 (Toyota Company, 2015). In addition, the Toyota Company customizes the products based on the requirements of the customers, which increases the price of the automobile. Hence, the use of the car and the extent of luxury determine the price of the automobile (Tomino, Hong & Park, 2011). Distribution Toyota Company opens outlets in different markets around the world. In addition, the company collaborates, and partners with different automobile dealers in ensuring the customers access the products and receive the appropriate service (Toyota Company, 2015). The dealers also provide assistance based on the warrants and guarantees. Advertising and Communication Toyota Company uses different avenues in engaging with the customers (Toyota Company, 2015). It ranges from traditional approaches/channels e.g. television to modern techniques, such as social media. In addition, the company organizes different events and engages the customers on the importance and capability of their products. The company uses the contacts of the customers to engage and sell new products to previous customers. Hence, Toyota Company employs different approaches and strategies to ensuring the customers are engaged. Supportive Products (Leasing and Hiring) Toyota understands the different requirements of the consumers and continues to develop products and services that address these requirements. Toyota has developed services in which it gives consumers cars on credit and the consumers pay for these cars over time. In addition, it is offering leasing and hiring services to the customers. Environmental Sustainability / Corporate Social Responsibility Toyota Company has contributed to the development of the society and communities. The strategies are premised on the vision and mission statements (Huang & Hsu, 2008). For example, Toyota created special stories, such as the “Stable Base of Business”, “Enriching Lives of Communities”, and “Always Better Cars” (Toyota Company, 2015). In addition, Toyota Company develops and implements numerous initiatives, which include respect for human rights, creating the future society, quality first and traffic safety. Furthermore, Toyota Company has continued to research and develop products, which are friendly to the environment. BRAND EXPLORATORY Numerous factors play an important role in understanding the content of the brand (Toyota Company, 2015). The customers are the most important stakeholders who can advice when it comes to quality and knowledge of a product (Huang & Hsu, 2008). A brand should resonate with the customers and creating a lasting image regarding the product. The section addresses some of the components that informs in brand exploration. Consumer Knowledge Toyota brand is well to most people who own or love cars (Marksberry et al., 2010). The consumers’ knowledge of the customers is attributed to numerous factors. The attributes include durability, reliability, affordability, style, and fuel efficiency (Huang & Hsu, 2008). Toyota automobiles can be used for long of periods and can be used in any environmental conditions (Toyota Company, 2015). Apart from durability, the car is reliable, can be used for numerous activities since it can withstand the environmental conditions. The cars are affordable because of the extensive portfolio, and a consumer can choose easily (Tomino, Hong & Park, 2011). The diversification of product portfolio means the styles are different and consumers easily choose the right product. For example, a consumer can choose a double cabin or a single cabin depending on consumer’s requirements. Furthermore, the Toyota automobiles are efficient in fuel consumption and due to economic challenges; low-income earners may prefer the model. Brand Resonance Pyramid Toyota brand resonance model pyramid is equally strong both on its sides. It operates well in terms of emotional and functional benefits and contributes towards the creation of consumers’ feelings and imagery on the brand. The brand shows strength because of brand awareness and customer loyalty. Toyota continues to focus both on the imagery and superior attributes of using the car. The following brand resonance pyramid summarizes Toyota capability (Tomino, Hong & Park, 2011). Competitive Analysis Competition is inherent in any industry, and the competitors dictate the speed of innovation and addressing the requirements and expectations of the consumers. The automobile industry is becoming competitive because of mergers and acquisition in which a company may access additional resources to develop further their product portfolio and improve the current processes. The following are the major competitors of Toyota Company: General Motors Company – The American Company is among the oldest companies in the motor industry. Its products provision is similar to Toyota because of the huge portfolio. In addition, the products have a strong heritage (Huang & Hsu, 2008). The company also has bought numerous companies such as Chevrolet, and its offering is better compared to Toyota. It has a strong market presence in China, and the company has a better understanding and knowledge of the American market. Ford Motors Company – It has a strong market presence in the US market. It has the ECOnetic initiative that encourages the customers to purchase the cars. In addition, ‘One Ford’ approaches as changed the perspective of the customers and driving sales. Furthermore, Ford Company has a sound financial performance and growth in China market (Toyota Company, 2015). Hence, the market position and strategic approaches have improved the functions of Ford Motors. Honda Motors Company – it is among the leading automobile company in the world. It has its headquarters in Japan meaning it is a direct competitor to Toyota (Toyota Company, 2015). Honda Motors has invested heavily in research and development (Huang & Hsu, 2008). It has a strong workforce that understands the requirements of the customers and can develop products to address the different customer segments (Liker & Hoseus, 2009). Therefore, it has a diversified product portfolio, and it has a strong brand image. Furthermore, Honda Motor has a presence in motorcycle industries and other industries such as generators. RECOMMENDATIONS Business Level Strategy The company should continue focusing on innovation and technology. It will result in the development of newer car models such as hybrid vehicles, which ensure a basis for future differentiation strategy (Tomino, Hong & Park, 2011). Moreover, initiative and creativity ensures different models are introduced into the market, such as the driverless cars. The strategy will ensure newer customers are targeted, and the company’s strategy reflects the changing requirements of the automobile industry and global forces such as global warming (Toyota Company, 2015). Toyota Company should develop newer models or improve the current models in terms of fuel efficiency (Toyota Company, 2015). The cost of fuel is high and environmental requirements means that efficient models should be produced that reduces the production of emissions, which affects the ozone layer. Such approach will reflect and engage the customers who are aware of global warming and the requirements of the governments, such as reducing the amounts of emissions (Tomino, Hong & Park, 2011). Compact vehicles should be developed to address the changing requirements of consumers (Cole, 2011). Emerging markets such as India and Brazil requires compact models because of congestion in their respective cities and expectations from the customers (Toyota Company, 2015). Hence, fuel-efficient should be balanced with the compactness of the vehicles. Functional Level Strategy The operation strategy should focus on improvement of manufacturing systems so that efficiency is guaranteed (Tomino, Hong & Park, 2011). Toyota Company should create a culture of continuous learning to ensure innovativeness and creativeness are integrated into the company’s process (Toyota Company, 2015). Therefore, continuous research and development is important to the success of the company. The image of Toyota has been tainted by recalls (Monden, 2011). Therefore, the marketing strategy should concentrate on the brand image to build brand loyalty and restore reputation so that the company can increase the value (Toyota Company, 2015). It also means the weaknesses should be acknowledged within the shortest time because, initially, Toyota delayed in responding to the concerns and complaints from the customers (Tomino, Hong & Park, 2011). Therefore, the operating strategy should complement and factor into consideration the requirements of the marketing department. Enhancement of Market Share The marketing strategy and operational strategy should concentrate ion emerging markets such as India and China (Tomino, Hong & Park, 2011) Toyota should develop the products and marketing strategies based on the region and markets. For example in the USA, Toyota should Americanize the marketing, production, and design. It will ensure Toyota competes effectively with Ford, General Motors and other competitors in this market (Tomino, Hong & Park, 2011). The requirements of the customers should be considered while developing and engaging the customers. It includes improvement of after sales and support services (Tomino, Hong & Park, 2011). It allows identification and allowing satisfaction of the different needs. Moreover, it is important to increase customer responsiveness. Hence, the entire strategy is to address the requirements and meet the expectations of the customers. REFERENCES Cole, R. E. (2011). What really happened to Toyota. MIT Sloan Management Review, 52(4), 29-35. Huang, Y. F., & Hsu, K. H. (2008). An EOQ model under retailer partial trade credit policy in supply chain. International Journal of Production Economics, 112(2), 655-664. Liker, J. K., & Hoseus, M. (2009). Human resource development in Toyota culture. International Journal of Human Resources Development and Management, 10(1), 34-50. Marksberry, P., Badurdeen, F., Gregory, B., & Kreafle, K. (2010). Management directed kaizen: Toyota's Jishuken process for management development. Journal of Manufacturing Technology Management, 21(6), 670-686. McQuade, D. (2008). New development: Leading Lean action to transform housing services. Public Money and Management, 28(1), 57-60. Monden, Y. (2011). Toyota production system: an integrated approach to just-in-time. CRC Press. Sahoo, A. K., Singh, N. K., Shankar, R., & Tiwari, M. K. (2008). Lean philosophy: implementation in a forging company. The International Journal of Advanced Manufacturing Technology, 36(5-6), 451-462. Takeuchi, H. (2008). The contradictions that drive Toyota’s success. Strategic Direction, 25(1). Tomino, T., Hong, P., & Park, Y. (2011). An effective integration of manufacturing and marketing system for long production cycle: a case study of Toyota Motor Company. International Journal of Logistics Systems and Management, 9(2), 204-217. Toyota Company. (2015). Home. Retrieved from http://www.toyota-body.co.jp/english/products/ Read More