Discuss the benefits of strategic management
1-2. Explain how globalization, innovation, and environmental sustainability influence strategic management
1-3. Discuss the differences between the theo- ries of organizations
1-4. Discuss the Activities where learning orga- nizations excel
Learning Objectives After reading this chapter, you should be able to:
Toyota Motors Co. In 1937, Kiichiro Toyoda founded the Toyota Motor Corporation, head-
quartered in Aichi Prefecture, Japan. The company, now headed by Akio
Toyoda, the President and Representative Director, has a capital of around
$179,399 million. Its primary business activities involve automotive manu-
facturing. As of March 2016, the company employs around 348,977 people.
Sakichi Toyoda, the founder of Toyota Industries, set certain Guiding
Principles that reflect Toyota’s organizational culture and values, and are the
basis for the corporate management philosophy. These were first revised in
1992, and again in 1997, to support its operations in a multicultural environment.
They were modified in response to the societal changes and the company’s business
structure, which support its global vision, strategies, and operations worldwide. An example of its strategy to
keep with the changing times is the Toyota Way 2001, which focuses on CSR and customer orientation, innovative
management, and the nurturing of its employees’ creativity and teamwork, mutual trust, and respect between
labor and management. At the heart of the Toyota Way are two pillars—continuous improvement and respect
for people. These are supported by five values: challenge, continuous improvement (kaizen), seeing for yourself
(genchi genbutsu), respect, and teamwork.
In 1997, Thailand, a regional hub of Toyota’s auto manufacturing industry in ASEAN, faced an economic crisis
resulting from over-investment in real estate and a liberal financing policy. Toyota Motor Thailand Co., Ltd. (TMT)
subsequently encountered huge losses.