Toyota Motor Corporation – Losing 'The Toyota Way'?

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Case Details:

Case Code : BSTR385
Case Length : 20 Pages
Period : 2005-2010
Pub Date : 2011
Teaching Note :Available
Organization : Toyota Motor Company
Industry : Automotive
Countries : Japan; Global

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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Background note

Toyota was established as a commercial vehicle manufacturer in 1937 with a capital of 12 million ...

Organizational structure and culture at Toyota

Toyota had grown over the years through constant pursuit to cut down on costs and waste. At the same time, the company also maintained traditional structures and hierarchy. The engineers reported to functional managers in their technical area...

The problems

Though Toyota was lauded for its unique production systems, culture, and values, industry analysts pointed out several problems. These problems included an inflexible organization structure and dwindling focus on quality...

Toyota loses its way

When Toyota embarked on a massive cost-cutting journey in 2005, pressure was stepped up on its chief engineers to reduce costs. The cost reduction showed on the quality of the vehicles across the world...

Excerpts cont...>>


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