Free Toyota Strategic Implementation Challenges Essay Sample

Strategic implementation in Toyota Corporation is the manner in which the company develops, utilizes, and uses the organizational structure, the control system, and culture so as to be able to follow all the strategies which can enable the company to be able to achieve a competitive advantage and also achieve a better performance. These strategic implementation factors contribute very much to all the scandals that the Toyota Company is facing. This is because the organizational structure, the organizational control system, and the culture are very essential when it comes to the implementation of the company’s strategies.

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A strategy is a directional scope of an organization over its long-term abilities which usually aimed at achieving the set goals of a company. There are a total of nine forces which can serve as a basis for a business strategy which are; the products offered, the market needs, the technology, the production capability, the methods of sales, the methods of distribution, the natural resources, the size and growth, and the returns in the profit levels. The decisions to a proper and successful strategy are determined by the products and services, the customers, the market segments, and the geographic areas. For the Toyota company to be able to achieve all its set objectives and goals, it must be able to come up with a strategy which is suitable like the Toyota’s strategy is mainly aimed at increasing the company’s total revenue where for the strategy to be effectively implemented, the managers who are the main decision makers have to consider all the factors which can affect the strategy implementation.

The organizational structure in Toyota company allocates all the special values which are used in the development of all the employee tasks in the company and the employee roles and how the tasks and the roles are correlated in the maximizing the quality, efficiency, and consumer satisfaction which is considered to be one of the pillars in the Toyota company to be able to attain a sustainable competitive advantage. A sustainable competitive advantage is a prolonged benefit that a firm possesses and achieves by the creation of new products and services which are valued and targeted by the market and they cannot be replaced easily or even duplicated by the competition. It requires that a company or a business unit to be able to erect suitable barriers against competition by looking at the basis of competition and who the business is competing against by considering efficient market hypothesis and its consideration of its price volume relation in terms of stock prices in the stock markets.

The organizational control system in the strategy implementation is also very important because it equips all the managers of the company with employee motivational incentives and also the employee feedback and the general performance of the company. When implementing a strategy, the executives of Toyota have to consider the structure of the company. This has explained the reason as to why there is an increase in the recall for the faulty cars because of poor strategy implementation without considering the factors which affect strategy implementation.

The organizational culture is also another factor which affects strategy implementation since it refers to all values, attitudes, beliefs, and norms which are shared by the groups and the members of the organization. Culture is very important since the main goal of Toyota Company is consumer satisfaction and in order for Toyota to be able to implement its strategies, then it has to consider the culture which could determine the attitudes of the consumers, norms and values.

The Toyota company has been facing a lot of scandals which has damaged the public’s perception of the company which has cost the company a lot of money due to the increase in the number of customers who are lost because of the bad name that the company has been portraying to the public which is posing as a major threat in the company. This is because has been reported of several issues like the recalling of its faulty vehicles because of accelerator problems this shows that the company has been producing some faulty vehicles which may lead to customer dissatisfaction. This shows that the decision making at the company needs to be revised because if the company has to be making recalls for faulty vehicles, it shows that the company will still continue making more mistakes in the future like they have been doing and the number of consumer complaints have been on the rise which shows customers are not satisfied with the products which the company offers to them since they have to get inconvenienced all the time because of the mistakes of the company’s leadership.

The pros of Mr. Hurd’s implementation effectiveness were that he drove the company to a profitable level where he turned the HP Company around. For an organization to be successful in its strategic implementation, it has to have openness and transparency which must be applied to all the stakeholders of the company who could include the employees, the shareholders, customers, and other organizations. In the Toyota Company, the management was not open with the stakeholders of the company which led to the company’s securities falling from $91.78 to 73.49 in the year 2009 which was as a result of the decreasing total sales, and the increasing recalls rate of the faulty vehicles. This has greatly affected the shareholders since they have invested quite large amounts of cash into the buying of the Toyota Securities.

The cons on the other hand was that there was a massive confidence loss by the board which was as a result of the organization loosing quite a number of key executives which showed that it was the stakeholders of the company who were to pay the price. This showed how incompetence he was in the HP Company since the company was considered not to be in touch with the reality in a majority of the areas in the company where the members of the board seemed to put their egos as a first concern while neglecting the company. This led to his dismissal with the company which he led because of misappropriation of funds.

My learning outcome is that for a company to be able to be successful, it has to come up with strategies which are aimed at achieving the company’s main objectives. The success in Toyota Company which usually operates mainly for marketing and the acquisition of high profits is dependent on the management and the establishment of all the products and services that are being offered by the company. For a company to be able to compete and survive in the competitive market, it has to be able to achieve a sustainable advantage so that it can be able to survive in the competitive industry. The success of a company or organization can be defined by the constant innovation and development of the company’s product lines and the increasing clientele numbers.

Leadership is very important in the strategy creation and implementation since the executives of Toyota Company are considered as being the leaders of the company. This is because they are the key decision makers and they are responsible for all the successes and failures of the company since they determine the decisions which are supposed to be followed when implementing a strategy in the company. All the scandals which have been facing the Toyota Company are due to the poor leadership management in the company since the leaders failed to consider all the factors which affect strategy implementation, may lead to scandals which may affect the company’s reputation to the public. Very good and well formulated strategies are deemed to fail if they are poorly implemented since the culture, control and the organizations structure should be considered. This makes strategy implementation very difficult for a majority of the employees and managers of a company.


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