Toyota is one of the biggest automobile companies in the world. The company is based in Japan, but it has operations in numerous countries across the globe. The company is ranked 11th largest in the world in terms of revenue. Its headquarters is in Toyota, Aichi, Japan.
Toyota operates in the automotive industry. Its main products are cars. It also offers services related to vehicle maintenance. The company produces a wide range of vehicle models including SUVs, luxury cars, pickups, trucks, as well as sports cars, among others.
Apart from the automotive activities, the company is also involved in some non-automotive activities. For instance, Toyota has some shares in the Mitsubishi Aircraft Corporation.
It also supports some philanthropy programs like the Toyota Literacy Program and the National Centre for Family Literacy.
Toyota Motor Corporation started in 1937. Its founder was Kiichiro Toyoda. Toyoda had inherited a company that created automobiles from his father.
It is important to note that Toyota is a company that has formed partnerships with other companies, like Hino Motors, Daihatsu, and Lexus, to form the Toyota Motor Corporation. Before the formation of this corporation, the company’s operations in the Toyota Industries had started back in 1933.
The first product produced by the company was ‘Type A Engine’ in 1934 when the company was still operating in Toyota Industries. Later in the 1936, Toyota produced a passenger car for the first time. The car was called the Toyota AA (Liker & Meier, 2006).
Toyota operates in an industry that is highly competitive. Its major competitors are the German automobile companies, such as Audi, BMW, Mercedes Benz, Volkswagen, and Porsche. It also faces competition from Ford, Chrysler, and Fiat, among other companies.
Toyota has been able to survive the stiff competition due to its strategic business plan. It applies product differentiation and costing to muscle out its competitors.
Significant management personnel in Toyota
The management system that Toyota has adopted focuses on decision making in a prompt manner. The management focuses on developing a global strategy that helps the company get a competitive edge over its competitors, as well as improve its quality and quantity in production.
To achieve this, the company has committees and councils that discuss and monitor management activities. This is meant to increase the level of transparency in the company and enhance the effectiveness of the management team.
The management system in Toyota currently consists of Chief Officers as the highest personnel in the hierarchy. The Chief Officers are also the directors. In addition, the Chief Officers form a link between the senior managers and the operations managers.
This enables the topmost managers to make decisions in liaison with the operations managers. The operations managers ensure that all the operational activities are conducted smoothly.
There is an audit system that is adopted in line with the Japanese Corporations Act. It is meant to monitor the activities and performance of managers (Borowski, 2012).
Other significant personnel in the company include the President, the Board of Directors, as well as the Chairman and the Vice Chairman. There are also the Vice President and the Senior Advisor to the company. The Chairman is also the Chief Executive Officer (CEO).
Toyota’s Business Strategy
Toyota has been successful in its business, both in Japan and in the international market. One of the major reasons that have contributed to its success is its quality in production. Producing quality automobiles is the major strategy that the company has adopted to succeed.
There is a general belief in Japan that even the best things can be improved. This has driven the urge for Toyota to strive to improve its products. The company is guided by the term KAIZEN, which means continuous and consistence improvement (Hino, 2006).
Technological innovation is vital in the maintenance of quality production processes. Toyota has made innovation as part of its business strategy. This has helped the company succeed in the international market.
Toyota is able to continuously improve the quality of its products, as well as produce new products through innovation. Innovation is known to give organizations a competitive advantage. Other strategies that the company applies are product differentiation and cost leadership (Hino, 2006).
Toyota is able to produce differentiated goods that are meant for specific market segments. The company is also able to produce goods whose prices are favorable for many people.
Specific area of the business to be addressed
Toyota has a number of businesses that it conducts under its brand. Each area of business operates independently, or it may operate in conjunction with other areas (Borowski, 2012). The area of business in focus in this article is the sale of cars.
Toyota has a variety of cars that are sold across the globe and intended for different classes of customers.
There are SUVs, pickups, as well as luxury cars. Luxury cars are differentiated cars that are meant for the wealthy class of customers, while pickups are made for the middle income class of clients. This is the most profitable area of business for Toyota.
KSAs and Strategic Skills Analysis
Knowledge, skills, and abilities are very important attributes in any successful company. Employees should have the knowledge, skills, and ability to carry out the activities assigned to them. An employee who has these attributes is able to analyze the task that is assigned to him.
Such an employee is also able to solve problems effectively (Dreher & Dougherty, 2002). This ability helps in achieving the organization’s strategy given that an organization cannot achieve its strategy without competent employees.
The HR should ensure that it hires the right employees who have the above attributes. This is one of the strategies that Toyota has used. The company hires the right employees who can help it in innovation and improving its products continually.
Toyota needs people who are able to use technology for the purpose of innovation. It needs people who have the knowledge and skills to make right decisions.
Internal and External Pay Equity
The amount of salary that an employee is given is defined by a number of factors. Among these factors are the knowledge, skills, and abilities that the employee possesses (Aswathappa, 2005). The more knowledgeable, skillful, and able an employee is, the higher the salary will be.
It is important to manage pay equity internally to motivate employees and encourage internal competition among employees. This eventually facilitates innovation (Dreher & Dougherty, 2002). Failure to manage pay equity internally leads to low morale and poor performance in employees.
Externally, it is important to manage pay equity to maintain employees. Employees with high level KSAs are usually rare and highly sought after. Such employees are likely to move to competitor organizations if an organization does not manage their pay properly.
Aswathappa, K. (2005). Human resource and personnel management: Text and cases. New Delhi: Tata McGraw-Hill.
Borowski, A. (2012). Report on the Toyota Company. München: GRIN Verlag GmbH.
Dreher, G., & Dougherty, T. (2002). Human resource strategy: A behavioral perspective for the general manager. Boston, MA: McGraw-Hill/Irwin.
Hino, S. (2006). Inside the mind of Toyota: Management principles for enduring growth. New York, NY: Productivity Press.
Liker, J. K., & Meier, D. (2006).The Toyota way fieldbook: A practical guide for implementing Toyota’s 4Ps. New York, NY: McGraw-Hill.