Explain strategic decision-making modes 1-8. Use the strategic audit as a method
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. To overcome the crisis various actions were taken—the TMT first requested
and received two capital injections, totaling US$200 million, from Toyota Motor Corporation in Japan. However, since
the automotive market was down by about 75%, the TMT had to use a job-sharing approach to retain its skilled, but
redundant, workforce. Together with this measure, the company observed it’s “no lay-off” policy by sending about
200 idle associates to Japan for training, while others assisted their local dealers. To avoid further losses, TMT focused
on 100% localization of parts and took advantage of export opportunities. Undertaking new business reforms, such
as online management of vehicle supply and demand and the formation of project teams in finance and marketing,
helped boost new vehicle sales. For dealers and suppliers, TMT granted credit lines and short-term loans.
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