APPLICATION OF PLANNING AND LEADING IN

THE IMPLEMENTATION BY TOYOTA MOTOR

CORPORATION TO BRING IN PLUG-IN HYBRID
TO MALAYSIA
Unit Code and Name of Unit : MGW1010 Introduction to Management
Group members (Name and ID) : Tan Wen Lee (24734853)
: Wong Mei Hwa (24805971)
Lecturer : Ms Aziana Zaidy
Tutor : Ms Sharon Cheah
Word Count : 2748 words

Table of Contents
Executive Summary .iii
1.0 Introduction....iv-vi
1.1 Purpose......iv
1.2 Company Information...iv
1.3 Background of Issue/Initiative..iv
1.4 Management functions.......v
1.5 Assumptions...v
1.6 Limitations..........v
1.7 Methodology...v
1.8 Plan of report......v-vi
2.0 Discussion............vii-xii
2.1 Planning...........................vii-ix
2.1.1 To develop production and human resources strategiesvii-viii
2.1.2 To develop marketing strategies promotional plans....viii-ix
2.2 Leading..x-xii
2.2.1

Transformational leaders...x-xi

2.2.2

Goal-setting theory...x-xii

3.0 Conclusionxiii
4.0 Recommendations.xiv
Reference List....xv-xvi

Executive Summary
This report aims to discuss the two managerial functions planning and leading that can be
employed by managers of Toyota Motor Corporation to achieve the companys goal of introducing plugin hybrid cars to Malaysia by 2017. In the year 2009, Toyota has launched the Toyota Prius Hybrid to help
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environmental conscious car users to take part in the efforts of reducing air pollution. However, the
current Prius hybrid car only has a single battery. Once the capacity of the battery reaches its limit, the
engine will revert back to using fuel to maneuver the vehicle. This fuel-burning process will emit gases
that will harm the environment. In addition, the battery is only charged when the car is moving forward
using fuel. This makes it less convenient for users that constantly experiences traffic jams. It has been
suggested that the charging process would be handier if users can charge their batteries at home at their
own convenience. This report includes investigation of relevant theories and concepts selected from the
functions planning and leading to bring in plug-in hybrid cars to in a time frame of 5 years. The sources
for the report are based on secondary data which are information from the companys website and
justified with relevant journal articles and online sources.
The main finding of the planning function is the utilization of the strategic management process
in developing strategies involving production of plug-in hybrid vehicles, human resources and marketing.
To implement these plans, partnership or cooperation with external organizations and financial support
from the government are taken into consideration.
Next, selected theories and concepts from leading include the type of leaderships who control the
departments for instant transformational leaders who can spark motivation in the employees to make a
change and inspire the others to follow. Aside from that, goal-setting theory acts as a motivator to induce
employees to put in higher effort to achieve organizations goal. Managers also provide feedback to
employees to work harder in the future and as a reward for their previous well delivered performance.
Based on this, a summary of the discussion is provided. In a nutshell, planning and leading are
essential in ensuring that Toyota is able to successfully introduce plug-in hybrid vehicles to Malaysia by
2017. Recommendations suggested are 1) optimizing production comprises of research and development
(R&D) and institutional infrastructure development. 2) Recruiting engineers that are specialized expertise
in plug-in hybrid technology to train local engineers. 3) Plan promotional programs and events such as
road shows and advertisements. 4) Managers should inspire and instill confidence in employees that this
goal is achievable. 5) Top management must encourage individuals to be committed to the goal and
induce self-efficacy. 6) Managers motivate employees by giving feedbacks. These recommendations will
ensure that Toyota Motor Corporation is able to achieve its goal.
1.0 Introduction
1.1 Purpose

The purpose of this report is to discuss and evaluate the incorporations of the two management
functions which are planning and leading that can be used by managers of Toyota Motor Corporation to
achieve the companys goal of bringing plug-in hybrid cars into Malaysia by 2017.
1.2 Company Information
Toyota Motor Corporation is a motor vehicle company where their main business activities are
motor vehicle production and sales. It was formed when Toyota Motor Co., Ltd and Toyota Motor Sales
Co., Ltd merged in 1982. Before this, Toyota Motor Co., Ltd was established in the year 1937 in Japan.
Now, the company has sold motor vehicles in more than 160 countries and regions. The company
conducts business worldwide with about 50 overseas manufacturing companies in 27 countries and
regions. Toyota Motor Corporation is at the forefront in the innovation of environmental technology,
safety technology and others. The global vision of Toyota Motor Corporation is to lead the way to future
of mobility by developing new forms of transportation and pursue new ways to connect technology with
people (Toyota Motor Corporation, 2013).
1.3 Background of Issue
Since the millennium years, Malaysia has experienced rapid development. Pollution problems
have never stop since then. One of the air pollution in Malaysia was caused by exhaust gas from mobile
emission sources of motor vehicles especially in urban areas. The air pollution caused by motor vehicles
is the biggest concern. Toyotas Prius Hybrid car has been launched in Malaysia in 2009 which helps car
users to be environmental friendly. With the increase in environmental concerns, car users are demanding
for a better way to be environmental friendly. This is so because the current Prius hybrid car only has 1
battery. Once the battery is used up, the engine will convert to start using fuel to operate the car.
Therefore, this in the end goes back to using fuel to drive and will emit gas that will harm the
environment. Besides, drivers always experience traffic jam everyday during peak hours and traffic jam
takes up high fuel consumption. The battery is only charged when the car is moving using fuel. This
makes it less convenient for users and it would be easier if users can charge battery anytime at home.
Therefore, it is important for Toyota Motor Corporation to bring in its environmental technology
innovation to satisfied these environmentalist segments. According to Robbins, Bergman, Stagg &
Coulter (2009), innovation is the process of selecting a creative idea and converting it into a useful
product, service or work method.
1.4 Management Functions

Toyota Motor Corporations to have the discussions from this report to be implemented within 5
years whereby the strategies mostly concern planning and leading functions and will bring plug-in hybrid
into Malaysia. Planning is the process of defining goals, establishing strategies to accomplish those goals
(Robbins et al., 2012). According to Henri Fayol, Leading is also motivating which involve actions in
dealing with people (Robbins et al., 2012).
1.5 Assumptions
For the understanding of this report, it is assumed that research has been done by the research
team in Toyota Motor Corporations about Malaysian drivers interest about bringing plug-in hybrid to
Malaysia. The information collected is both valid and accurate. The company did not face any financial
constraints to adopt the suggested solutions for planning and leading.
1.6 Limitations
This report is only limited to two management functions which are planning and leading. These
two functions play an important role in achieving the organizational goals. However, the other two
management functions, organizing and controlling also serve as another two crucial roles to ensure the
success of Toyota Motor Corporation to solve the issue. There is also lack of direct communication with
Toyota Motor Corporation to obtain information or declaration regarding this issue.
1.7 Methodology
Secondary sources are mostly used in the process of preparing this report. Among the sources
used are journals, reference books, credible websites and online articles. Journal articles are found from
various databases were also used to support recommended solutions.
1.8 Plan of Report
This report will discuss and provide insight about the increasing concern about the environment in
Malaysian drivers and how they want the hybrid car to be more environmental friendly compared to the
current hybrid car. It will discuss about the plans that will be implemented to bring in plug-in hybrid to
Malaysia by identifying and defining the two management functions which are planning and leading.
Some concepts within these functions will be further analyzed with reference to academic journal articles.
This report will conclude with a summary of recommendations and the accompanying justifications as to
how the organization can implement some of these concepts in attempt to introduce plug-in hybrid car to
Malaysia.

2.0 Discussion

2.1 Planning
According to Lamond (2003), Fayols first function of planning is best defined as the goals and
approaches that are planned ahead in order to achieve the organizations objectives. Its importance is
prominent as planning sets the direction, reduces vagueness, minimizes waste and redundancy as well
as lays down the standards used in controlling (Robbins et al., 2009).
2.1.1 To develop production and human resources strategies
Strategic management process starts with identifying the organizations current
goal, which is to bring in plug-in hybrid vehicle to Malaysia. The next step consists of
SWOT (strengths, weaknesses, opportunities, threats) analysis, where visions and goals
are developed based on past performances, existing strengths and weaknesses, and
forecasted environmental situations such as opportunities and threats (Morita, Flynn &
Ochiai, 2011). To facilitate the introduction of plug-in hybrid vehicles in Malaysia,
Toyota would have to conduct extensive researches on both its internal and external
environments. In terms of external analysis, Toyota would need to closely monitor their
competitors progress in this common area of interest. For example, other automobile
manufacturers such as Mitsubishi Motor and Nissan have grand intentions of developing
and commercializing plug-in hybrid vehicles towards practical use as well (Ishitani, H.,
2007). As for internal analysis, Toyota would need to identify its core technical
competencies. In this context, core technical competencies can be defined as Toyotas
unique, inimitable technical capabilities to develop a superior and more reliable plug-in
hybrid engine that provides engine that provides them a competitive advantage over its
competitors while attaining good reputation and brand recognition (Gallon, Stillman,
Coates, 1995).
The subsequent two steps involve formulating and implementing strategies
concerning production and human resources. Song, Im, Van der Bij & Song (2011)
emphasized that strategic planning requires stringent implementation and a system to
monitor the results. One of the strategies is to optimize production comprise of research
and development (R&D) and institutional infrastructure development. Toyota should
promote R&D through the industry-government-academia initiatives to discover
techniques to enhance battery performance and reduce manufacturing costs of batteries.
For example, high performance motors utilizes permanent magnets containing rare earth
elements such as neodymium and dysprosium (Ishitani, H., 2007). R&D projects to look
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for cheaper alternatives such as implementation of permanent magnet motors using

alternative or reduced rare earth, or non-permanent magnet motors should be executed. In
addition, Toyota should also establish standard international test methods to evaluate
battery performance, durability and safety (Ishitani, H., 2007). Valuable information
obtained from these tests can be used as a benchmark to assist the R&D department in
developing improved next generation batteries as well.
As for human resources strategies, Toyota can recruit foreign engineers such as
those from main branch in Japan with specialized expertise in various areas of plug-in
hybrid technology to train and equip local engineers with knowledge and practical skills
so they will be qualified to manufacture and service this new innovation for the benefit of
customers. The final step of the strategic management process is to evaluate the results
and take steps to adjust the plan as required.

2.1.2

To develop marketing strategies promotional plans

Marketing plans are developed to accelerate the diffusion of plug-in hybrid car to
Malaysia. Toyota could then plan promotional programs and events such as road shows
and advertisements to promote this new technology. The marketing team can also employ
specific angles that appeals to certain demographics. For instance, enthusiastic
environmentalist or environment-conscious individuals would be pleased to know that
research done by Stephen & Sullivan, 2008 shows that plug-in hybrid vehicles reduces
carbon dioxide (CO2) emission by 25% in the short term and as high as 50% in the long
run in comparison to conventional hybrid counterparts (as cited in Stephan and Sullivan,
2008).
According to Gans et al. (2012), incentives alter the marginal benefit or cost of
an action which will influence consumers decision making process. Plug-in hybrid cars
roughly cost $1,000 to $7,000 more than comparable non-plug-in hybrids counterparts in
the United States (Toyota Motor Corporation, 2013). Thus, Toyota have to provide
various type of incentives to reduce customers initial cost, and to increase advantages in
use, causing users to realize the merits of total cost in comparison with gasoline vehicles.
In the United States (US), federal tax incentives up to $7,500 are provided to
plug-in hybrid cars user purchased in or after 2010 (Toyota USA Newsroom, 2012). The
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credit amount will vary based on the capacity of the battery used to fuel the vehicle (U.S.
Department of Energy, 2013). Hence, Toyota could present this environmental
technology innovation to the local government in order to seek for financial support such
as subsidization and tax incentives. Toyota can also collaborate with building firms and
energy power industries to install charging facility at home and develop regional
arrangement for charging facilities such as quick charging station. Availability and
convenience of these infrastructures can be appealing to customers and boost sales.
Another beneficial partnership would be with private commercial sectors such as
department stores and shopping malls for the provision of priority parking with charging
facility. Toyota could also cooperate with financial sectors such as banks and insurance
companies to obtain special insurance and low-interest loan for Plug-in Hybrid car
purchaser.

2.2 Leading

One of Henri Fayols management function, leading is the function that involves working
with and through people to accomplish organizational goals (Robbins et al., 2012). Leading an
organization to constructive change beings by setting a direction is to develop a vision of the
future to the organizations employees (Kotter, 1990). The management in Toyota Motor
Corporation will lead in terms of leadership and motivation to achieve the goal which is to bring
in plug-in hybrid to Malaysia by 2017. Leadership is about coping with change and setting
direction of that change (Kotter, 1990). Robbins et al. (2012) define motivation as the process by
which a persons effort are energized, directed and sustained to achieve a goal.
2.2.1

Transformational Leadership
A transformational leader is one who stimulates and inspires followers to achieve

extraordinary outcomes (Robbins et al., 2012). Toyotas top level managers have to make
use of this characteristic to achieve organizations goal which is to bring plug-in hybrid to
Malaysia by 2017. It is important for top management to convince employees that this
goal is achievable (Robbins et al., 2012). By voicing that this expectation can be met will
build a sense of confidence among employees to achieve this goal (Kovjanic, Schuh,
Jonas, Quaquebeke & Van Dick, 2012). By instilling confidence in employees, they will
have confident in their work and can produce an overwhelming performance. Workforce
is departmentalized into marketing team, production team and others. Leaders in each
team should inspire their followers to achieve extraordinary outcomes. They should
enthuse their followers to the mission and goals of the group (Hoffman, Bynum, Piccolo
& Sutton, 2011). For example, in order to achieve organizations main goal, the goal for
Toyotas marketing department is promoting plug-in hybrid mainly to environmentalist
segment. Therefore, manager in this department must encourage them that it is
achievable.
Toyotas manager must be able to articulate the organizations goal that follows
followers values so that they will regard this goal as their own goal and submit more
effort into it (Bono & Judge 2003; Shamir et al., 1993 as cited in Hoffman et al., 2011).
As a result, employees will be loyal to the company and do their best to achieve the
organizations goal because achieving it means achieving their goals. Hence Toyota
leaders must provide a clear vision that will tap into employees emotions and inspires
enthusiasm and energy in them to pursue its goal (Robbins et al., 2012). Besides,
Toyotas managers should discuss relevant business issues with workers, soliciting their

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views and suggestions during the process implementing the plans (Karlsberg & Adler,
2012). This will inspire employees to participate more in achieving the goal because they
see the goal as their own goal and achievable since their suggestions are taken into
consideration to deliver a good performance.

2.2.2

Goal-setting theory
According to Robbins et al. (2012), goal-setting theory is the proposition that

specific goals increase performance and that difficult goals when accepted can result in
higher performance than easy goals. It is a motivation aspect in leading. To bring plug-in
hybrid to Malaysia is a challenging goal for Toyotas team of workers in Malaysia. This
is so because the plug-in hybrid has a higher technology and it is more complicated. The
plug-in hybrid is only available in the US and the technology in US is more advanced.
Such challenging goal will help employees to improve themselves and also learn.
Managers can set this goal as a learning goal where employees need to acquire requisite
knowledge (Locke & Latham, 2006). This is important for the production department
because they require special knowledge about how the system in the plug-in hybrid
works. Therefore, they can improve themselves to be better and also to achieve Toyotas
goal. This supports Seijts & Latham (2001) whom stated that difficult goals do not lead to
better performance by simply just urging people to do their best (Locke & Latham, 2006).
Top management must encourage individuals to be committed to the goal. High
performance can only be achieved if employees have commitment towards achieving the
goal because assumptions should not be made that having employees participating in the
project means achievement can be met (Robbins et al., 2012). If employees are not
committed to what they are doing, performance will not be desirable. Hence, managers
should induce individuals self-efficacy so that they have the confidence that they have
the ability to help Toyota to achieve such goal.
Along the way while achieving Toyotas main goal, each department will have to
achieve a number goals such as marketing department, needs to meet the target of
distributing information about the plug-in hybrid, R&D department need to discover
technique to enhance battery performance and reduce manufacturing cost of batteries.
Once these goals are met, then managers should motivate employees by providing them
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with feedbacks. If employees have done a good job, then rewards such as bonus.
Feedbacks help people to identify discrepancies between what they have done and what
they want to do (Robbins et al., 2012).

3.0 Conclusion

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As plug-in hybrid cars have better environmental technology compare to the current hybrid car,
Toyota should implement the plan of optimizing the production comprise of research and development
(R&D) and institutional infrastructure development. On top of that, Toyota should recruit engineers that
are specialized expertise in various areas of plug-in hybrid technology to train and equip local engineers
with knowledge and practical skills. Besides that, it is essential for Toyota to plan promotional programs
and events such as road shows and advertisements. Therefore managers in Toyota should inspire and
encourage their employees that this goal is achievable. Besides, they should encourage their employees to
be committed to the goal and regard the goal as their own goal in order to deliver high performance.
Employees should also be given feedbacks after meeting the goals in order to motivate them. In
conclusion, the goal of bringing in plug-in hybrid car by 2017 be achieved through proper planning and
controlling.

4.0 Recommendations
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The recommendations for Toyota to bring in plug-in hybrid car to Malaysia by 2017 are as
follows:
-

Toyota should to optimize production comprise of research and development (R&D) and
institutional infrastructure development.

Toyota should recruit engineers that are specialized expertise in plug-in hybrid
technology to train local engineers.

Toyota should plan promotional programs and events such as road shows and
advertisements.

Managers should inspire and instill confidence in employees that this goal is achievable.

Top management must encourage individuals to be committed to the goal and induce
self-efficacy.

Managers motivate employees by giving feedbacks.

Reference

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