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TOYOTA

Organizational Structure and Controls - Toyota Corporation

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55 views30 pages

TOYOTA

Organizational Structure and Controls - Toyota Corporation

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lanoyjessicaellah
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© © All Rights Reserved
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GROUP 9

ORGANIZATIONAL
STRUCTURE AND CONTROLS
ORGANIZATIONAL STRUCTURE AND
CONTROLS
are essential components of strategic management,
influencing how an organization operates, achieves its
objectives, and adapts to changes in its environment

ORGANIZATIONAL STRUCTURE
Refers to the framework that outlines how tasks are
divided, managed, and coordinated within an
organization.
ORGANIZATIONAL STRUCTURE
These are mechanisms put in place to ensure that
activities within the organization align with its strategic
objectives and to monitor performance.
STRATEGIC CONTROLS FINANCIAL CONTROLS

CONCERNED WITH ASSESSING PRIMARILY CONCERNED WITH


THE OVERALL DIRECTION AND MONITORING AND MANAGING
PURPOSE EFFECTIVENESS OF THE THE FINANCIAL ASPECTS OF
ORGANIZATION ACHIEVING ITS THE ORGANIZATION
LONG-TERM STRATEGIC GOALS

HAVE A BROADER SCOPE AND NARROWER SCOPE, FOCUSING


CONSIDER FACTORE BOTH SPECIFICALLY ON FINANCIAL
SCOPE INTERNAL AND EXTERNAL TO THE METRICS AND PERFORMANCE
ORGANIZATION THAT CAN IMPACT INDICATORS.
ITS LONG-TERM SUCCESS.
Toyota's strategy is deeply rooted
LEAN PRODUCTION in the principles of lean
production, aiming to eliminate
Toyota's structure is designed to
facilitate quick decision-making,

STRATEGY waste, optimize efficiency, and


continuously improve processes.
empower employees at all levels
to contribute to problem-solving
and innovation and promote a

AND
culture of continuous
improvement.

FLEXIBLE
STRUCTURE
DECENTRALIZED Toyota follows a decentralized Toyota's divisional structure,

DECISION- decision-making approach, where


authority and responsibility are
which includes separate
divisions for different product
distributed across various
MAKING divisions and levels of the
organization.
lines or geographic regions,
allows for greater autonomy
and specialization within each
AND unit.

DIVISIONAL
STRUCTURE
FUNCTIONAL STRUCTURES FOR
IMPLEMENTING

BUSINESS
LEVEL
S T R AT E G I E
1. Functional Structure
2. Divisional Structure
3. Matrix Structure

S
4. Team-based Structure
FUNCTIONAL
STRUCTURE
-the organization is divided into
departments based on functions
such as finance, marketing,
operations, and human resources.
Each department focuses on its
specialized area of expertise.
DIVISIONAL
STRUCTURE
-the organization is divided into
autonomous divisions based on
products, geographic regions, or
customer groups. Each division
operates as a separate business
unit with its own functions.
MATRIX
STRUCTURE
-combines elements of both
functional and divisional
structures. Employees report to
both functional managers and
divisional managers, allowing
for more flexibility and
collaboration.
TEAM-BASED
STRUCTURE
-employees are organized into
cross-functional teams that work
together on specific projects or
tasks. This structure promotes
collaboration and innovation.
Toyota Corporation employs a combination of functional
and divisional structures
It has separate divisions for different geographic
regions and product lines, such as Toyota North
America and Toyota Europe. Each division has its own
functional departments responsible for areas like
marketing, finance, and operations. Additionally,
Toyota utilizes a team-based approach in
manufacturing and product development, where cross-
functional teams work together to improve processes
and innovate new products.
M AT C H E S
BETWEEN
B U S I N E S S - L E V E L S T R AT E G I E S A N D
FUNCTIONAL STRUCTURES
COST LEADERSHIP
STRATEGY
Functional Structure: A functional
structure is well-suited for
implementing a cost leadership
strategy. Each functional
department can focus on cost
reduction efforts within its area of
expertise.
Toyota utilizes a functional structure to implement its cost
leadership strategy.
DIFFERENTIATION
STRATEGY
Divisional Structure: A divisional
structure is effective for
implementing a differentiation
strategy.

Toyota's luxury division, Lexus, operates with its own


divisional structure
I N T E G R AT E
D COST LEADERSHIP/
D I F F E R E N T I AT I O N S T R AT E G Y
MATRIX STRUCTURE

-ideal for implementing an


integrated cost
leadership/differentiation strategy.
This structure allows for both
functional specialization and
divisional focus.

Toyota employs elements of a matrix structure by combining


functional departments with divisional units
M-FORM
THREE USES OF (M-FORM)
M U LT I D I V I S I O N A L S T R U C T U R E
multidivisional (m-
form) structure

Product-Based Market-Based Geographic


Divisional Structure Divisional Structure Divisional Structure
PRODUCT-BASED
DIVISIONAL STRUCTURE
Toyota employs a product-based
divisional structure, dividing its
operations into distinct teams for each
product line, ensuring independent
design, production, and marketing
management.
MARKET-BASED DIVISIONAL
STRUCTURE
Toyota uses a market-based divisional
structure to target various customer
segments, such as luxury car buyers,
budget-conscious consumers, and
environmentally conscious customers,
thereby optimizing market share.
GEOGRAPHIC DIVISIONAL
STRUCTURE
Toyota's geographic divisional
structure, overseeing operations in
Asia, Europe, and North America,
enables the company to adapt strategies
to regional consumer preferences,
regulatory demands, and market
dynamics.
ORGANIZA
TIONAL
STRUCTUR
USED TO IMPLEMENT THREE
I N T E R N AT I O N A L S T R AT E G I E S

E 1. Multidomestic Strategy
2. Global Strategy
3. Transnational Strategy
MULTIDOMESTIC
STRATEGY
ORGANIZATIONAL STRUCTURE:

A multidomestic strategy focuses on decentralization. Companies


operating with this strategy typically establish autonomous subsidiaries
in each country where they operate. These subsidiaries have a high
degree of independence in decision-making, allowing them to adapt
products, marketing, and operations to local preferences and conditions.

RELATION TO TOYOTA:

Toyota employs a multidomestic approach by establishing separate entities in


different countries, each with its own management team.
GLOBAL STRATEGY
ORGANIZATIONAL STRUCTURE:

A global strategy emphasizes standardization and centralization.


Companies following this strategy maintain tight control over their
operations from a central headquarters. There is a high degree of
standardization in products, processes, and marketing strategies across
all markets.

RELATION TO TOYOTA:

While Toyota predominantly adopts a multidomestic approach, it also


incorporates elements of a global strategy, especially in terms of
standardization of its core processes and product platforms.
TRANSNATIONAL
STRATEGY:
ORGANIZATIONAL STRUCTURE:

A transnational strategy balances local responsiveness with global


integration, utilizing a complex organizational structure with centralized
decision-making and decentralized operations, requiring significant
coordination and communication across countries.

RELATION TO TOYOTA:

Toyota's organizational structure combines transnational strategies with


regional subsidiaries, promoting knowledge sharing and collaboration. It uses
hybrid technology from Japan across its global product lineup, while local
marketing strategies reflect responsiveness.
WHAT IS A STRATEGIC
NETWORK?
Strategic networks refer to a
deliberate and purposeful
approach to building
relationships with individuals
and organizations that can help
achieve specific goals or
objectives.
BUSINESS LEVEL
-Toyota has an extensive network of
suppliers and partners to support its
manufacturing operations.

-Toyota focuses on long-term relationships


with its business partners to achieve mutual
growth.
CORPORATE
LEVEL
-Toyota has established the Connected
Company to develop connected platforms
and leverage big data from connected cars.

-Toyota is making strategic shifts toward


electrification, information, and intelligence
to stay competitive.
INTERNATIONAL
LEVEL
-Toyota has a global footprint with
production and distribution networks
spanning various regions.

-Toyota emphasizes cross-cultural


communication to facilitate effective
collaboration across diverse markets.
THANK YOU
A presentation by Group 9
• Lanoy, Jessica Ellah
• Labarejos, Anjielyn
• Gadian, Frexie Vae
• Villareal, Joanne Claire
• Paras, Keyfsie
• Tabelon, Mary Ann
• Tek-ing, Pearl Angelie

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