MGT499 Strategic Management
Is Toyota’s mission aligned with the needs of their stakeholders?
Step One. Throughout the course we will be exploring Toyota’s website and contrasting what they say there with what is reported in the business press. For module 1, visit the Toyota Website and go to the Investor relations section. Read the section of their annual report titled “The Right Way Forward”. In a word, or a phrase, conceptualize the company Toyota wants to be.
Step Two. Read the required articles about Toyota and conduct additional research as needed.
Step Three. Identify the main stakeholders; pick one or two, e.g., the customers, the employees, the stockholders and determine what their needs and goals are in regard to Toyota.
Step Four. In a three to four page paper, critically analyze whether Toyota’s mission and vision take the needs, goals, and objectives of its stakeholders into account.
In my opinion Toyota’s mission is not aligned with the needs of their stake holders. In the following paragraphs I will outline how Toyota has systematically taken steps to become the world’s top automobile manufacture. Toyota’s mission statement is “To sustain profitable growth by providing the best customer experience and dealer support”, I will also go on to prove that throughout this decade Toyota hid information from stockholders in efforts to increase their bottom line.
... in automobiles, which are manufactured around the world. Toyota’s mission “has been to contribute to society by producing high ... American region began manufacturing vehicles in 1986. Toyota developed this region because “Toyota is committed to building vehicles where they ... these policies, while also protecting its employees. The Toyota Motor Corporation while being a Japanese organization has many ...
The company that Toyota says they are or who they want to be is not indicative of how they treat their employees in some plants or how they treated their customers by not implementing the recall as soon as they were aware that there was a major mechanical problem. In the 70’s and early 80’s Toyota had two unforgettable slogans, “You asked for it, you got it Toyota” the other slogan was “Oh what a feeling, Toyota”. They were catch jingles that stayed in our heads and soon came to fruition on the highways and in our drive ways.
The 21st century Toyota conglomerate is not the Toyota of just a few decades ago. Toyota was greatly known for its team building strategies. In the mid 1980’s the United States military adopted the ideas of continuous quality improvement from the commercial sector, which in the mid-1980s suffered by comparison with overseas competitors. To many observers and consumers, the most galling example of the industrial-quality shift was the increasing share of the automobile market held by Japanese manufacturers. Just less than two generations after the United States nearly obliterated Japanese industry in World War II, Japan was somehow building better vehicles at competitive price. Toyota was at the helm of this shift in paradigm.
In the Toyota conglomerate there are two different types of stakeholders, internal and external. The lists of internal stakeholders are employees, executives and board of directors. The external stakeholders are customers, suppliers, communities and government. The main stakeholders in my opinion are the customers and the communities. It is obvious to see why the customer is at the top of the list. I chose community over employees and board of directors, because I have seen firsthand how a Toyota manufacturing company affects a community.
First I will address the customers’ needs and goals and then the community’s needs and goals in regards to Toyota. I drive a Lexus and great expectations came with that price tag. Like all customers whether they drive a midrange or high end luxury vehicle the expectation is that the vehicle is safe, has good gas mileage, they retain their value and have the potential to get top dollar during trade ins. Customers have these expectations because over the years Toyota has been marked by a strong commitment to putting the customer first known as “genochi genbutsu”.
... for a new and fresh look. Not too many car companies besides Toyota have been able to successfully sell unexcitingly looking ... awareness – ‘selling the company with the car’, identifying closely with the customer and treating him/her on a ... with its dealers, which were carefully selected based on excellent customer service. Its relationship with suppliers was also unusual; most ...
The second stakeholder that I chose was community. I have seen the negative side of how Toyota affects the community. When the Toyota manufacturing company moved to San Antonio it brought with the promise of many jobs and high paying salaries. By the time the doors opened at the plant opened, homes, shopping centers and communities had been built. Less than two years after opening the doors employees found out on the morning news that production would stop indefinitely. Toyota’s mission is to make better cars and contribute to society; it is safe to say Toyota failed to meet their objective.
The vision of Toyota is to become the most successful and respected car company in each market around the world by offering customers the best purchasing and ownership experience. I feel that in Toyota’s efforts of becoming the most successful and respected car company, they failed to keep the most important stakeholder in mind, the customer. Toyota had a slogan in the mid 80’s “the car in front of you is a Toyota”. The focus moved from providing the customer with a quality product to getting more vehicles on the road.
Although Toyota got a major black eye for having knowledge of cars malfunctioning and not responding quicker to the customer complainants, the simple fact is for the most part Toyota has a history of providing a quality product. In spite of increasing production, which surely made the internal stakeholders happy; to sum up this last decade Toyota failed its mission to provide better cars and contributing to society. I feel that their motives were drive by greed. Therefore one would conclude that Toyota’s mission is not aligned with the needs of their stake holders.