Corporate Purpose: Why it Matters More Than Strategy
Toyota's spectacular performance in the competitive and mature auto industry has been attributed to many factors. They are: Toyota's corporate culture, Kaizen philosophy of continuous improvement, Kanban and Just-In-Time (JIT) production systems, zero defect goal, a lean production system, fast product cycle, ringi or consensus bottom-up decision making, pursuit of highest customer satisfaction, and high quality products. This research suggests that although all these measures contributed to the outstanding performances of Toyota over the decades, the real driver of Toyota's decisions and actions is Toyota's purpose.
The study concludes that Toyota is driven by corporate purpose. At Toyota, purpose is clearly understood and internalized by its senior management. The ideologies embodied in purpose provide a strong and unifying mechanism that stimulates the energies and efforts of its employees, and provides a moral compass to attain that meaningful, value-laden purpose of the organization.
Toyota's purpose is crafted in its stakeholders power structure, its environment, and its cultural values and assumptions. Toyota's purpose is to be a well-balanced global corporation that is a contributing member of the local communities. It strives to attain this by taking care of its employees, suppliers, and local communities, and by improving the quality of life of people in these communities. The main drivers behind Toyota's strategic key decisions are pursuit of harmonious growth and enhancement of profitability. Toyota's strategic decisions are linked through its key objectives to its operative purpose, which also is its stated purpose.
What people are saying - Write a review
We haven't found any reviews in the usual places.
CHAPTER ONE Introduction
CHAPTER TWO Corporate Purpose
CHAPTER THREE The Industry Toyoia and the Environment
CHAPTER FOUR Toyotas Purpose
CHAPTER FIVE Toyotas Key Objectives
CHAPTER SIX Toyotas Key Decisions
CHAPTER SEVEN Conclusions
attain automobile automotive balanced basic behavior believe bubble economy Camry changes contextual environment continuous growth contributing member corporate citizen corporate culture corporate purpose cost reduction customer satisfaction decisions and actions dominant objectives Drucker Eiji Toyoda end objective Enhance profitability global communities goals growth and profitability guiding principles highest objective Hiroshi Okuda important objectives improve profitability industry interviews investments Japan Japanese community Japanese companies Japanese corporations Japanese economy Japanese employees Japanese society Keiretsu key decisions Kiichiro Toyoda leadership lifetime employment loss of face market share million units needs Neishi objectives of Toyota operational objectives organization organizational overseas percent philosophy plant policy statements priority of objectives protectionism protectionist reduce Sakichi Toyoda shareholders strategic stakeholders strategy suppliers sustain growth Table Terada TMMU Togo Toyoda Automatic Loom Toyota executives Toyota Motor Corporation Toyota Motor Sales Toyota's obligation Toyota's purpose Uranishi values well-balanced corporation Yokoi