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I.

INTRODUCTION AND BACKGROUND OF THE STUDY

Introduction
Toyota Motor Corporation has been a dominant name in vehicle manufacturing for several
decades. Despite the patriotic drive in the United States to "buy American", the company has held its own,
remaining a dominant and continually growing company in the corporate world of transportation. Though
this is quite an accomplishment, in and of itself, the many layers of the company reveal it to actually be a
far more complex entity than the average consumer tends to realize. Quite an international entity, TMC
has tackled the automotive market not only in its home-base of Japan and in America, but in numerous
additional countries, including The Czech Republic and China. In addition to this, TMC has taken the
initiative to remain current with contemporary issues of concern, addressing the additional corporate
responsibilities of earth and environmental issues.

In light of this, they have not only launched the production of new vehicles, but the production of
the IMV Project in India, South Africa and Argentina, for the purpose of creating and identifying "more
efficient and productive supply systems on a global scale"(TMC). Much more than just a car company, the
Toyota Motor Corporation resides in numerous geographical sites, functioning to not only promote vehicle
production, but to promote continuing improvement in the experience of mobility, striving to advance a
society "where there is harmony between people, the earth and the environment"(TMC). The following
report provides a comprehensive analysis of this successful motor vehicle corporation, elaborating on its
seemingly infinite facets and its many ambitious endeavors.

A company could not pick a more appropriate slogan than the slogan of the Toyota Motor
Corporation: Moving Forward -- because that is exactly what they appear to be doing. Reporting sales last
year in excess of $179,083 million, TMC earned the title of the 8th largest company in the world by the
Fortune Global 500 and 12th in terms of growth and revenue by Forbes Global 2000 (Wikipedia). With a
one -year sales growth of 3.7% and a net income growth of 7.1%, their reported net income for 2006 was

an impressive $11,681 million (Hoover, 2006). Headquartered in Aichi, Japan, this company established in
the 1930's by Kiichiro Toyota is predicted to become the largest automaker within the next 2 years.
Producers of the Scion and Lexus, TMC has been named as highest in quality for both these product lines
by J.D. Power's, as well as Consumer Reports. The number of vehicles Toyota Motor Corporation sells has
recently exceeded 8.54 million in a fiscal year, putting them right behind GM and actually outselling Ford
in some fiscal months.

According to the Toyota Motor Corporation website, the company presented with the following
return data for the 2006 fiscal year: Return on Revenues-8.9%, Return on Assets-5.2%, and Return on
Equity-14.0%, with a shareholders' equity ratio of 36.8%. All return statistics are reflective of results after
taxes (TMC, 2006). Enjoying huge market shares in several countries, TMC is the leader in market shares
in Australia and commands an impressive portion of the U.S. market, reporting 1.61B shares out, in
regards to a market cap of 207.44 Billion.(TMC, Yahoo, 2006). This is in addition to significant market
shares in Europe and Africa, as well as a fast-growing market presence in Southeast Asia (Wikipedia,
2006). Well on its way to becoming the largest and most successful auto manufacturer in the world, the
Toyota Motor Corporation is not only outdoing itself each fiscal year, but quickly proceeding to outdo its
most challenging competitors. While General Motors continues to remain the most dominant auto
manufacturer, presently, Toyota's growth rate significantly surpasses that of GM, implying that it will only
be a matter of time before the company catches up to the performance of its stiffest competition and
exceeds it.

A. Company History
In 1924 Sakichi Toyoda invented the Toyoda Model G Automatic Loom. The principle of Jidoka,
which means that the machine stops itself when a problem occurs, became later a part of the Toyota
Production System. Looms were built on a small production line. In 1929, the patent for the automatic
loom was sold to a British company, generating the starting capital for the automobile development.

Vehicles were originally sold under the name "Toyoda" (), from the family name of the
company's founder, Kiichir Toyoda. In April 1936, Toyoda's first passenger car, the Model AA was
completed. The sales price was 3,350 yen, 400 yen cheaper than Ford or GM cars.

In September 1936, the company ran a public competition to design a new logo. Out of 27,000
entries the winning entry was the three Japanese katakana letters for "Toyoda" in a circle. But Risabur
Toyoda, who had married into the family and was not born with that name, preferred "Toyota" ()
because it took eight brush strokes (a fortuitous number) to write in Japanese, was visually simpler
(leaving off the diacritic at the end) and with a voiceless consonant instead of a voiced one (voiced
consonants are considered to have a "murky" or "muddy" sound compared to voiceless consonants, which
are "clear").

Since "Toyoda" literally means "fertile rice paddies", changing the name also prevented the
company being associated with old-fashioned farming. The newly formed word was trademarked and the
company was registered in August 1937 as the "Toyota Motor Company".

From September 1947, Toyota's small-sized vehicles were sold under the name "Toyopet"
(). The first vehicle sold under this name was the Toyopet SA but it also included vehicles such
as the Toyopet SB light truck, Toyopet Stout light truck, Toyopet Crown and the Toyopet Corona. However,
when Toyota eventually entered the American market in 1957 with the Crown, the name was not well
received due to connotations of toys and pets. The name was soon dropped for the American market but
continued in other markets until the mid 1960s.

The Toyota Motor Company received its first Japanese Quality Control Award at the start of the
1980s and began participating in a wide variety of motorsports. Due to the 1973 oil crisis, consumers in
the lucrative US market began turning to small cars with better fuel economy. American car manufacturers
had considered small economy cars to be an "entry level" product, and their small vehicles employed a low
level of quality in order to keep the price low.

By the early sixties, the US had begun placing stiff import tariffs on certain vehicles. The Chicken
tax of 1964 placed a 25% tax on imported light trucks. In response to the tariff, Toyota, Nissan Motor Co.
and Honda Motor Co. began building plants in the US by the early eighties.

In 1982, the Toyota Motor Company and Toyota Motor Sales merged into one company, the
Toyota Motor Corporation. Two years later, Toyota entered into a joint venture with General Motors called
NUMMI, the New United Motor Manufacturing, Inc, operating an automobile-manufacturing plant in
Fremont, California. The factory was an old General Motors plant that had been closed for two years.
Toyota then started to establish new brands at the end of the 1980s, with the launch of their luxury
division Lexus in 1989.

In the 1990s, Toyota began to branch out from producing mostly compact cars by adding many
larger and more luxurious vehicles to its lineup, including a full-sized pickup, the T100 (and later the
Tundra); several lines of SUVs; a sport version of the Camry, known as the Camry Solara; and the Scion
brand, a group of several affordable, yet sporty, automobiles targeted specifically to young adults. Toyota
also began production of the world's best-selling hybrid car, the Prius, in 1997.

With a major presence in Europe, due to the success of Toyota Team Europe, the corporation
decided to set up TMME, Toyota Motor Europe Marketing & Engineering, to help market vehicles in the
continent. Two years later, Toyota set up a base in the United Kingdom, TMUK, as the company's cars had
become very popular among British drivers. Bases in Indiana, Virginia and Tianjin were also set up. In
1999, the company decided to list itself on the New York and London Stock Exchanges.

In 2001, Toyota's Toyo Trust and Banking merged with two other banks to form UFJ Bank, which
was accused of corruption by the Japan's government for making bad loans to alleged Yakuza crime
syndicates with executives accused of blocking Financial Service Agency inspections. The UFJ was listed
among Fortune Magazine's largest money-losing corporations in the world, with Toyota's chairman
serving as a director. At the time, the UFJ was one of the largest shareholders of Toyota. As a result of
Japan's banking crisis, UFJ merged with the Bank of Tokyo-Mitsubishi to become the Mitsubishi UFJ
Financial Group.

In 2002, Toyota managed to enter a Formula One works team and establish joint ventures with
French motoring companies Citron and Peugeot a year after Toyota started producing cars in France.

Toyota ranked eighth on Forbes 2000 list of the world's leading companies for the year 2005 but
slid to 55 for 2011. The company was number one in global automobile sales for the first quarter of 2008.

On December 7, 2004, a US press release was issued stating that Toyota would be offering Sirius
Satellite Radios. However, as late as January 27, 2007, Sirius Satellite Radio and XM Satellite radio kits were
not available for Toyota factory radios. While the press release enumerated nine models, only limited
availability existed at the dealer level in the US. As of 2008, all Toyota and Scion models have either
standard or available XM radio kits. Major Lexus dealerships have been offering satellite radio kits for
Lexus vehicles since 2005, in addition to factory-equipped satellite radio models.

In 2007, Toyota released an update of its full size truck, the Tundra, produced in two American
factories, one in Texas and one in Indiana. "Motor Trend" named the Tundra "Truck of the Year," and the
2007 Toyota Camry "Car of the Year" for 2007. It also began the construction of two new factories, one to
build the RAV4 in Woodstock, Ontario, Canada and the other to build the Toyota Prius in Blue Springs,
Mississippi, USA. This plant was originally intended to build the Toyota Highlander, but Toyota decided to
use the plant in Princeton, Indiana, USA, instead. The company has also found recent success with its
smaller modelsthe Corolla and Yarisas gasoline prices have risen rapidly in the last few years.

B. COMPANY PROFILE
Company Name
Toyota Motor Corporation
President and Representative/Director
Akio Toyoda
Head Office
1 Toyota-Cho, Toyota City, Aichi Prefecture 471-8571, Japan
Phone: (0565) 28-2121
Tokyo Head Office
1-4-18 Koraku, Bunkyo-ku, Tokyo 112-8701, Japan
Phone: (03) 3817-7111
Nagoya Office
4-7-1 Meieki, Nakamura-ku, Nagoya City, Aichi Prefecture 450-8711, Japan
Phone: (052) 552-2111
Date founded
August 28, 1937
Capital
397.05 billion yen (as of March 31, 2011)
Main Business Activities
Motor Vehicle Production and Sales
Fiscal Year
From April 1 to March 31 of the following year
Total number of employees
Consolidated: 317,716 (as of March 31, 2011)
Non-consolidated: 69,125 (as of March 31, 2011)

Note: Information current as of June 2011.

Business results / Production & Sales results <Consolidated basis (U.S. GAAP)>
Business results
FY 2009

FY 2010

FY 2011

(April 2008 to March

(April 2009 to

(April 2010 to

2009)

March 2010)

March 2011)

Sales*1

20,529.5

18,950.9

18,993.6

Operating income*1

-461

147.5

468.2

Net

income*1

-436.9

209.4

408.1

Capital Expenditures*1*2

1302.5

579.0

642.3

R&D*1

904.0

725.3

730.3

Number of consolidated

529

522

511

56

56

56

subsidiaries
No. of Affil. Accounted for Under
the Equity Method
(unit = 1 billion yen or 1 company)
*1 Monetary figures rounded down to the nearest 100 million yen
*2 Figures for depreciation expenses and capital expenditures do not include vehicles in operating lease

Production results

Vehicles

FY 2009

FY 2010

FY 2011

(April 2008 to March

(April 2009 to March

(April 2010 to March

2009)

2010)

2011)

Japan

4,255,000

3,956,000

3,721,000

Overseas

2,796,000

2,853,000

3,448,000

Total

7,051,000

6,809,000

7,169,000

FY 2009

FY 2010

FY 2011

(April 2008 to March

(April 2009 to March

(April 2010 to March

(unit = 1)

Sales results

Vehicles

Homes
(unit = 1)

2009)

2010)

2011)

Japan

1,945,000

2,163,000

1,913,000

Overseas

5,622,000

5,074,000

5,395,000

Total

7,567,000

7,237,000

7,308,000

5,442

5,281

5,157

II.

STRATEGIC PLATFORM
A. Global Vision
"Rewarded with a smile by exceeding your expectations"

Toyota will lead the way to the future of mobility, enriching lives around the world with the
safest and most responsible ways of moving people.

Through our commitment to quality, constant innovation and respect for the planet, we aim to
exceed expectations and be rewarded with a smile.

We will meet challenging goals by engaging the talent and passion of people, who believe
there is always a better way. (TMC 2011)

B. Mission
The overlying mission of The Toyota Motor Corporation is:
To develop and provide innovative, safe and outstanding high quality products and services that
meet a wide variety of customers' demands to enrich the lives of people around the world.

C. Goals
Our goal is to achieve future growth based on the lessons we have learned and our reflection
on our experiences associated with the deterioration of the management environment caused by the
Lehman shock and a series of quality issues.

D. Objectives

In order to uphold the TMC mission, specific goals and objectives have been identified as the
aim of the company in keeping with its beliefs and building on its prior sales and financial success.
The three main corporate objectives are the following:
1) to steadily increase corporate value as a top management priority,
2) continue to introduce and produce products that fully cater to customer needs, and
3) to become an even more competitive global company.
Overall, these intentions translate into increasing sales and profit, maintaining superior
quality, and continuing expansion.

INTERNAL AND EXTERNAL ANALYSIS OF THE FIRM

III.

TOYOTA MOTORS GLOBAL SWOT Analysis


Strengths:
1.

Toyota Motor Corporation (TMC) is the world's largest vehicle manufacturer by productions and
sale.

2.

Toyota Motor Corporation is the part of "Toyota group", one of the biggest conglomerate in the
government.

3.

Toyota is best known for enrollment sales, quality, durability, reliability, and value for money and
convenient.

4.

In 1997, Toyota began manufacturing of the globe's best-selling hybrid car, the Prius.

5.

The principles and beliefs based on Continuous Improvement and Respect for People.

6.

Toyota has very strong presence in Europe due to the accomplishment of Toyota Team Europe.

7.

Strong distribution and marketing efforts focused on the meeting diverse needs, high quality sales
and services, and close involvement with customers.

8.

It presently maintains more than 16 percent of the US market share and is only behind to GM in
terms of volume.

9.

For the year 2005, Toyota ranked 8 on Forbes 2000 directory of the world's leading companies.

10. Toyota's sales had risen 9.2 percent mostly on demand for Camry Sedans and Corolla.
11. It has initiated new technologies including first bulk-produced hybrid gasoline-electric
automobile which had two million sales worldwide in 2010.
12. It started the "Innovative International Multi-purpose vehicle" plan (IMV) to optimize global
manufacturing and supply system.
13. For the first quarter of 2008, Toyota was number one in worldwide vehicles sales.

Weaknessses:
1.

From last quarter of the 2009 through the 1st quarter of 2010, it recalled more than eight (8)
million trucks and cars globally in numerous recall campaigns, and temporarily stopped
production and sales.

2.

Toyota Motor criticized as a foreign imported by Japanese car producers

3.

Toyota was badly hit by the 2008 financial crisis and declared its first annual loss in 70 years
history.

4.

In May 2009, Toyota Motor Corporation reported a record yearly netloss of US$ 4.2 billion.

5.

In 2005, Toyota faced criticism because of large-scale re-call and quality issues.

6.

Toyota offers more of its brands in the Japan and United States, where as competitors' get global
efficiency.

Opportunities:
1.

Joint Ventures with French monitoring companies Peugeot amd Citreon has provided various
opportunities for the company to produce cars in France.

2.

In 2009, quoting declining production numbers, the State Bank of India (SBI) decreased interest
rates on automotive loans.

3.

North American consumers shifted to more fuel-efficient and higher-quality product of European
and Japanese Automakers.

4.

Engineering is a diverse industry with a number of segments. A firm from this sector can diversify
into power equipment, a niche competitor. It can be non-electrical and electrical machinery and
still tools producer to.

5.

India GDP is about 6% which indicate a better economy and infrastructure in Indian ruler sides
which can sustain growth and improvement of poverty in economy.

6.

Produce fuel-efficient, higher quality and smaller automobiles that can attract the customers.

7.

Government of China reduced automobile taxes in order to support declining sales.

Threats:
1.

The final meltdown resulted in liquidity deficit in the US banking with ultimately decreased
consumer health.

2.

Environmental regulations and associated apprehension concerning carbon emissions have sharp
sensitivity to environmental protection globally and gas mileage standards.

3.

Industry is facing adverse impact of fluctuations in foreign currency conversion rates.

4.

Increased competition, market saturation, forceful marketing campaigns and rising competitive
pressures.

5.

Increasing maintenance cost of vehicles, rising fuel price and changing customer preference are
challenging threats

6.

Major producers, including the Big Three offered significant discounts across their lineups.

Marketing and Sales


In true customer orientated fashion, at this stage the Toyota motors prepares the offering to meet
the needs of targeted customers. This area focuses strongly upon marketing communications and the
promotions mix.
Toyota's marketing efforts have focused on emphasizing the positive experiences of ownership
and vehicle quality. The ownership experience has been targeted in slogans such as "You asked for it! You
got it!" (19751979), "Oh, what a feeling!" (1979 September 1985, in the US),[28] "Who could ask for
anything more" (September 19851989), "I love what you do for me, Toyota!" (19891997), "Everyday"
(19972001)", "Get the feeling!" (20012004), and "Moving Forward" (2004present).
In Japan, Toyota currently maintains separate dealership sales channels, called "Toyota Store",
"Toyopet Store", "Toyota Corolla Store", "Toyota Netz Store", and "Lexus". The Toyota Netz Store replaced
the "Toyota Vista Store" in 2004.

Service
This includes all areas of service such as final checking, after-sales service, complaints handling,
training and so on. Toyota value their customers that they accept recalls from them when needed even if
there is a high expensed that Toyata will be incurring.

Support Activities

Procurement
This function is responsible for all purchasing of goods, services and materials. The aim is to
secure the lowest possible price for purchases of the highest possible quality. Toyota motors will be
responsible for outsourcing (components or operations that would normally be done in-house are done by
other organizations), and e-Purchasing (using IT and web-based technologies to achieve procurement
aims).
The company procures the necessary parts, materials, and equipment for the many different
business fields from suppliers all over the world. Along with requiring the suppliers to provide quality
items at a low price and in a timely manner, TMC cooperate with them to promote environmental
preservation and meet the other demands of society. In addition, TMC take a long term view toward their
relationships with suppliers with an aim to realize an amicable relationship of mutual prosperity based on
fair business practices.
TMC have an open and fair entry process that allows all potential suppliers, regardless of
nationality, size, and experience, the same chance to offer the company their products or services. TMC
selects their business partners based on economic reasons such as the quality, price, and volume of their
products, as well as on their adherence to delivery times. In addition, they also consider comprehensively
things like environmental awareness, company stability, and technological development ability.
In order to create environmentally-friendly products, TMC aim to procure parts, materials, and
equipment that have low environmental impact from suppliers that always give sufficient consideration to
the environment.

Human Resource Management


Employees are an expensive and vital resource. Human Resources at Toyota Motor Corporation
serves to meet the needs of all employees, as well as create an environment that is both productive and
conducive to employee satisfaction. Toyota's HR department is fully aware that happy employees translate
into better job performance. This equates to the kind of increased production and quality that renders
satisfied customers. Ultimately, how well Human Resources addresses the needs of the employee
population and how well they maintain an emotionally intelligent workplace environment directly
correlates to Toyota's "bottom line" and overall financial success. This involves several areas of the
employee experience that Human Resource Managers must attend to. These include: hiring quality
individuals that possess characteristics consistent with company standards, continued training of existing
employees, promotion of diversity, resolution of disputes, maintenance of an overall system of positive
reinforcement, executing standards of evaluating job performance, and all other issues pertaining to
maintaining satisfied employees and an environment conducive to this goal.
Firm Infrastructure
This activity includes and is driven by corporate or strategic planning. Toyota motors implemented
Management Information System (MIS), and other mechanisms for planning and control in different
departments.

Technology Development
Technology is an important source of competitive advantage. Companies need to innovate to
reduce costs and to protect and sustain competitive advantage. Toyota motors implemented production
technology, Internet marketing activities, lean manufacturing, Customer Relationship Management (CRM),
and many other technological developments.

IV.

CORPORATE / GRAND STRATEGIES

PRODUCT DEVELOPMENT
The Toyota Smart Center optimizes environment-friendly car battery charging and home energy
management
The daily power use of environment-friendly cars such as plug-in hybrid vehicles (PHVs) and
electric vehicles (EVs) is thought to be equal to 30% of the power consumption of the average home.
Achievement of a low-carbon society will require the widespread use of environment-friendly cars, so
optimal management of battery charging and home energy is essential. To meet this aim they have
developed the Toyota Smart Center, a system that uses smart-grid technology to link homes, vehicles, and
users. The smart grid envisioned by Toyota is centered on the Smart Center, and manages the power
supply to smart houses developed by Toyota Housing while monitoring the power use status of each
home through a data center. This enables it to reduce the CO2 emissions of the entire region while
minimizing costs. It does so by monitoring both the remaining battery power data transmitted by the car
and the power consumption data from the home, and then proceeds to make a comprehensive
determination about how to optimize power use by also taking into account factors such as weather
conditions and power company fee schedules. Car batteries can then be charged during times of day when
the grid power load is low, and the homes own power supply from solar panels and storage batteries can
be used efficiently. The goal is to create smart communities that optimize the power usage of the entire
residential area.
Upgraded on current models
For the 2010 Prius, Toyota took a systems approach to innovation. That is, rather than simply
changing one subsystem, the company redesigned many aspects of the car to achieve the end goal of fuel
economy. The Prius isnt just a regular Toyota car with the combustion engine swapped-out for a hybrid
drive system
To achieve the best possible fuel economy, the 2010 Prius has extensive aerodynamic features.
The front, sides, top, back, and bottom are all designed to minimize drag-inducing air turbulence. The
changes are much more than cosmetic. Reinerts team replaced the rarely-seen rough underside of a
normal car with smooth aerodynamic panels and two little winglets that reduce drag in the air that passes
between the road and the car. Even the wheelhouse liner and shape of the wheels help reduce the drag.

The result is that the Prius shape gives it a lower coefficient of drag than the sleek-looking sports cars
on the road.
To reduce fuel-guzzling weight, the team made the battery an integral structural part of the car,
not just a bolt-on box. Nothing escaped the teams scrutiny. The team even improved the interface
between the car and driver. The car now provides real-time feedback on fuel consumption and power
system activity something that hypermilers love. Specifically, the new 2010 Prius offers three
performance modes in which it can be driven, each at the touch of a button. The car can be driven in EVMode (running off the battery alone for about 10 miles), Power Mode for snappy acceleration, and Eco
Mode for fuel-sipping energy conservation. The different modes actually change how the car responds to
the gas pedal: Eco Mode means that even a lead-footed driver gets better gas mileage. Finally, the new
Prius has a solar-powered fan on its roof that cools the cabin temperature so that drivers dont have to
blast the air conditioning when first entering the car.
Analysis: The modification of the current model, Prius, was adopted by TMC to offer the same

product but with new and improved features to satisfy customers and prolong the life cycle of it.
Moreover, the use of product development as a corporate strategy takes an advantage of the favorable
reputation and brand name of Toyota Motor Corporation. With the development of the prius, Toyota
created more than 100 patents resulting in Environmental Protection Agency estimated city/highway miles
per gallons rating of 50 in the city, 49 on the highway and a combined 50 mpg.
The development of their current models isnt only exclusive for Prius. Toyota is continuously
modifying and improving their products having their own Research and Development Laboratories.

Innovation
Toyota firm operate:

Closed system of innovation

Decentralized

Highly collaborative

All employees are encourage to offer ideas to improve the efficiency.

Every year, approximately 1 million ideas was collected annually.

Toyota established 11 region center around the world:


o

4 in Japan

2 in Asia-Pacific

2 in the US

3 in Europe

With the half is R&D center, the company create 64 models sale around the world.

Toyota generate radical in incremental and innovation in its products.

Toyota heavily invest in R&D activities in the technical center worldwide and spend approximately
4.4% from its revenue for R&D

Toyota R&D center have 3 level of strategy:


a.

b.

Basic Research
o

Vehicle related technologies

Enhance efficiency

Technologies Breakthrough

a. Hybrid Technology
b. Fuel Cells
c.

Product Development

a.

Upgrade on current models

b.

Horizontal Integration

Marketing Strategies

Toyota Motor Corporation is presently pursuing several new marketing goals. While two of these
target markets are geographically oriented, the third uniquely focuses on the environmentally aware
demographic. Pertaining to these segments, the first objective is to continue their expansion into foreign
territories, broadening their overall global capacity. On a more domestic level, TMC is taking advantage of
the challenges presently faced by their fiercest competitors, in order to close the market gap and become
the dominant auto manufacturer in America. Lastly, they are striving to corner the new and upcoming
market segment of environmentally aware individuals with the production of their latest innovations in
hybrid designs.

The Toyota Institute


In 2002, the Toyota Institute was established as one of TMC's training tools. Its purpose is to
"reinforce the organic integration of global Toyota companies by way of sharing the Toyota Way as well as
to promote self-sufficiency" (TMC, 2006). More specifically, it serves to promote true globalization and the
core values that are inherent throughout the corporation, outlined in the Guiding Principles and set forth
in the Toyoda Precepts. A business within the business, its president since inception has been Fujio Cho,
with the assistance of 16 full-time associates managing the operation, as well.
Within the Toyota Institute, two major programs of study exist: The Global Leadership Program and the
Management Development School. An integral portion of the training is specifically aimed towards
middle-management employees, who are the "go betweens" of the operation, aiding the communication
flow between higher executives and hands-on/divisional employees. The purpose for instituted a
company-wide, all encompassing educational program for overseas, as well as domestic operations, is to
ensure consistency and that all middle-management personnel understand the full concepts of The Toyota
Way, best practice sharing and drafting of action plans that are consistent among all TMC affiliates. In
addition, the company stresses the importance of all divisions being empowered to function in a capacity
and manner that is contributive to the "creation of a global human network" (TMC, 2006). The charts
below illustrate the variables that comprise both the Global Leadership School and the Management
Development School.

Positive Reinforcement and Promotion


Rather than focus on the negative or deficient work performance, Toyota places great emphasis on
positive reinforcement, offering incentives for a job well done. These are applicable to individuals, as well
as to teams or divisions. Promotion from within is always a priority and employees are rewarded with
promotions in responsibility, position and salary for excellence in job execution. Those who don't perform
to standard are encouraged to strive for such recognition and aided by further trainings and the
mentoring of team members.
Dispute Resolution
Should such an occasion arise where an employee has a grievance or a conflict appears to be irreconcilable
between fellow workers, human resource managers are fully trained to engage in mediation and create a
resolution that once again will instill harmony, mutual respect and appreciation between the parties
involved.
Diversity
For a corporation that strives to become a dominant international presence, it goes without saying that
diversity is of the utmost importance. Toyota Motor Corporation is just one of these companies, spreading
its wings from continent to continent, necessitating an employee population that has the cultural
knowledge and ability to successfully and respectfully communicate with each and every community,
worldwide, that TMC engages in business with. Toyota's emphasis on cultural diversity and the respect it
places for each and every country, its laws, its cultural beliefs and business practices, people, and
communities is apparent within the statements put forth in the precepts and guiding principles. However,
even beyond this, there are two sub-groups of individuals that Toyota has felt a responsibility to recruit
and encourage their participation within the TMC environment. These two populations are women and
people with disabilities.
Women
As part of TMC's 2002 Diversity Project, several initiatives have been geared towards the advancement of
women within the corporation. Toyota expresses that this movement is based on the concepts put forth in
their Global Vision 2010, aiming towards the "creation of environments featuring people from around the
world with various abilities and values who are given the opportunity to experience self-reliance as
individuals". In order to promote a workplace atmosphere that is more attractive to female personnel,
Toyota has implemented a three-pronged approach to accomplish such a task. Their goals are the
following:
-

To help enable females to work and raise children at the same time

To assist in women's career building

To diversify the working environment and increase employees' awareness

As a component of this initiative, Toyota had introduced a system for mothers which includes the
following components:
-

A child rearing leave up to the child's 2nd birthday

Work hour reduction up to the child's 2nd birthday

The ability to work partially at home until the child's 8th birthday

Special breaks for child nursing care

Exclusion from late night duty and limitation of after-hours work until the child's 8th birthday

Use of childcare facilities within the workplace


One of the most attractive aspects of this Toyota initiative is the child care facility, itself. Maintained as a
learning conducive and nurturing environment, it is open until 10:30 every night. This allows both working
mothers and fathers the opportunity to address their work responsibilities, as well as be able to put in
later hours should an increased workload come into play. Based on the original child-care facility in
Toyota City, Japan, appropriately named "Toyota Child Care Bubu Land", the centers are all located on-site,
allowing parents to check in on their children anytime throughout the workday or to be able to be present
immediately should a problem arise. In addition, there is always a resident nurse on duty, complementing
the many caring and nurturing child caregivers already present.
As a result of the Toyota Motor Corporation's Diversity Project and the steps they have taken to make the
workplace conducive to the lives of women, the number of female employees has now grown steadily each
and every year since inception of the program. Statistics show that as of March, 2003, TMC employed only
5,800 females, accounting for a mere 9% of their total workplace population. Today, many new female
students graduating with varying degrees are choosing TMC as their career choice. This is in part due to
the awareness Toyota tries to promote at many colleges and universities, through recruiting seminars and
literature, highlighting the many benefits available for the female employee. Consistent with this tradition,
Toyota held its first women's seminar, Career Design Forum, in November of 2002, targeted at
approximately 400 female employees. The purpose was to "help the women build a network within the
company and to give them the motivation to create their own career visions independently and actively".

Individuals with Disabilities


Within the employee population at Toyota Motor Corporation, there previously presided only 800 disabled
individuals in workplace positions. This statistic was current as of March, 2003. While the current
employment laws, and the EOE act, requires certain workplace environments to employ a consistent ratio
of 1.8% of their employee population as individuals with disabilities, Toyota sought to improve this quota,
becoming a leader in presenting these often talented potential employees with increasing opportunities.
Overall, Toyota purports its aim is focused on "helping the disabled achieve autonomy within society,
making it a basic rule to have them work together with other employees. Human consideration is given to
the conditions of their disability at the business sites and ways are devised to accommodate them in the
workplace...". Toyota recognizes that despite certain limitations, these are individuals who can contribute
in an equal, if not even more outstanding, capacity as their able counterparts. It is actually behooves TMC
to take advantage of a population that has so much to give, when others do not and lack the insight to
recognize their potential worth.
In general the "Law for Employment Promotion of the Disabled" provides that private companies which
employ 56 or more employees must maintain a quota of at least 1.8% disabled individuals within that
population. This includes both the intellectually, as well as physically, disabled. However, by the end of
March, 2003, Toyota Motor Corporation had increased their percentage to an impressive 1.95%. This is a
percentage of their employee population that has increased on a consistent basis every year since.
Integral Role of Mid-level Managers
Mid-level production and operation managers are probably some of the most integral members of the
organization. It is their responsibility to oversee all operations occurring in the base that they preside
over. This entails an enhanced ability to multi-task, see to meticulous details, engage in effective
problem-solving should challenges arise, and the financial sense and insight to ensure that the rate of
production will render the results necessary to meet the financial goals set for the overall corporation. In
addition to these characteristics, managers in the area of operations must possess the unique amount of
emotional intelligence that dealing with a large population of employees requires. For without the proper
guidance, operational employees will lack the motivation needed to ensure timely quota completion. And,
yet, these managers must also possess the necessary technological knowledge to oversee the operations
that function in their department or facility.
Because the functions of these managers are so extensive, as well as so significant to the success of the
entire corporation, special training facilities have been established to ensure their preparedness for such a
position. The North American Production Support Center is one of these teaching facilities. Modeled after
the original in Japan, it is meant to ensure that American managers receive the same level of expertise as
their Japanese counterparts. Its purpose is also to ensure a consistent level of quality. Located in
Georgetown, Kentucky, this newest training facility will serve plants that are located in the United States,
as well as Mexico and Canada.