Toyota's strategic implementation through structure, controls, and culture
In 2010, Toyota suffered a number of shortfalls that caused it to recall a huge number of its vehicles and tarnished its reputation. The Japanese giant, long the industry's mentor for automotive product quality and manufacturing efficiency, had surrendered to producing a spate of cars at minimal cost and focusing on speed, cheapness, and quantity as opposed to quality. These actions tarnished their reputation and negatively affected the safety of their cars.
To restore their name, therefore, Toyota set about implementing a series of control and strategies that would guide their culture and strategic management process. They adopted seven principles for global guiding culture and a further five principles for their internal culture. They also adopted the Japanese Corporation Act as their model for integrity and, in 2010, established both the "Toyota Special Committee for Global Quality" and the "Risk Management Committee".
Their efforts paid off. Consumer Reports surveys once again rate the quality of Toyota to be at the top of the heap whilst a recent study by Experian found that Toyota had regained the top spot in Corporate Loyalty for the first time since the third quarter of 2009. Sales globally, too, are booming and reports indicate that Toyota seems to stand by its promise of focusing on quality as opposed to quantity and on reversing its errors.
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