Toyota Company: Strategic Implementation and Mission


A strategy is a cause of action the company intends to take. Strategic management refers to the identification and execution of the mission. The process is achieved by comparing the capabilities of the organization with the environmental needs for example the needs of the customers (Gadiesh & Gilbert, 2001). In strategic management process, the implementation of a strategy is a key step without which the whole strategy fails. This paper analyses the executive team of Toyota and evaluates how it utilizes its organizational structure, values/guiding principles, and culture to implement its strategy in achieving its mission.

Background information about Toyota

Toyota Motor Corporation is a company in the motor industry based in Toyota City, Tokyo in Japan. Akio Toyoda who is the President and Director heads the Toyota Group. The company was founded on August 28th 1937 and its global vision revolves around the future of mobility of people in the safest way and more responsibly. The managers focus on quality and constant technological innovations and inventions and recruiting the passionate and talented people to meet their goals (Toyota, 2012).

The organizational structure includes the members of the board comprising of the chairperson, the vice chairperson and the two members of the board who are the president and the executive vice president who head the executive team. Other members of the executive team include the directors, corporate auditors, senior managing officers and the managing officers (Toyota, 2012).

To fulfill the corporate mission and strategies, the company is guided by the principles that all the employees should be faithful in their responsibilities and duties for the benefit of the company. Secondly, the employees should constantly be creative and innovative in order to stay at par with the new ideas and technologies. Thirdly, the employees should use the skills they have practically acquired in the field. Fourthly, the employees are encouraged to embrace a homelike culture where everyone feels comfortable at the workplace. The last principle involves the respect for the spiritual matters and ability to be grateful at all times (Toyota, 2012).

Toyota Motor Group has a traditions in ensuring that the mission and strategies set are achieved. The tradition revolves around five elements of the Company, Philosophy, Challenges, Quality and Innovation. In relation to the Company, the group traces and follows their history from the beginning and shares the vision of the company for the future. In relation to the Challenges, the company’s culture is to always forge ahead and remain passionate when handling the complex problems facing the group in all the areas. Regarding quality, the managers’ focus is on the best ideas, skilled employees and production methods in order to be the leading company in the market. Lastly, on innovation, the company remains to be the initiator of the new ideas of marketing methods to solve the complex challenges it faces. The managers strive to ensure the company remains the leading company in the auto industry (Toyota, 2012).

Toyota’s strategies identified in 2011 annual report and how they help solve the recall issues

In 2011, Toyota Company unveiled a new management structure to achieve its newly set vision. The company’s president announced the introduction of the new management structure where prompt decisions would be made based on information on what is happening in the field and what the customers propose. The new management decisions structure would be based on the real happenings on the ground (Toyota, 2012).

This new management structure will help in resolving problems of public relations that arose from the recall issues in 2010. According to the media, Akio proposed to fire a member called Watanabe who was not a member of the family from the board of the executives. Akio decided that Watanabe be appointed to run a Toyota affiliate. Akio and his family members argued that when they took power in the company in 2009, the executive board members who were not from the Toyoda family had lowered the quality of the products at the expense of the profits, which weakened the company. The strategy above will solve such stalemates in the sense that decisions will only be arrived at after consulting on what is happening at the actual sites. Mr. Akio did not consider the happening at the actual site in making such a decision. Instead, the decision was driven by nepotism (Shirouzu, 2010).

Toyota developed regional strategies as reported in the 2011 annual report. In Japan for instance, the company aims at engaging in high technological advancement to improve their products quality and produce the customer-oriented products. They want to offer the highest value- added hybrid vehicles and new Models of Lexus, minivans with 3 rows and mini-vehicles. The diverse products will ensure improved quality and customer satisfaction at all costs (Toyota, 2012).

The second strategy identified above will help solve the public relations problems arising from the recall issues as reported by the media in 2010. The media reported that Toyoda’s allies attributed the drop in products sales in the last fifteen years to the low quality rankings and the increased recalls of the non-family managers. They argued that it took a very long time to develop new models of the cars. The needs of the customer change drastically with time and the three years they were taking in developing a new model led to the shift of the customers to Toyota’s competitors. The strategy will solve this stalemate in the sense that the products will be developed based on the customers’ wants and the latest technologies, hence improved quality rankings (Shirouzu, 2010).

Toyota’s current strategies

Toyota Company formulates and implements various strategies in an attempt to retain their loyal customers. This report identifies and analyses two strategies the company implements based on the Company’s values and culture. The first strategy is the constant innovation encouraged by the company. The second strategy employed by Toyota Company is constant engagement in the corporate social responsibilities.

Based on the structure of the company, values and controls, the two identified strategies will probably succeed in bringing back and retaining the loyal customers of the company. The company embraces innovation of new ideas as a culture so that it remains competitive and marketable at all times. As part of the Company’s Values, the company values creativity and innovation of new ideas by all employees at all times. The company values faithfulness and the practical skills of the employees. The managers therefore engage their employees in social responsibilities such as the play concerts and sports with the public. Basing on the company’s culture of Quality, Corporate social responsibility enables the marketing of quality products through sponsorships.


The process of strategy implementation involves the transformation of the strategies set into actions through the hiring or firing of employees, establishing new structures and buildings or improving the quality and quantity of products. Implementing Strategies requires good application of management responsibilities.


Gadiesh, A. & Gilbert, J. (2001). The strategic management process. Allston: Harvard Business School Publishing Corporation.

Shirouzu, N. (2010). Inside Toyota: Executives trade blame over debacle. New York: Dow Jones & Company Inc.

Toyota (2012). Annual report 2011. Web.

Toyota (2012). Vision and philosophy. Web.