GROUP 7
ORGANIZATIONAL BEHAVIOUR
Member :
Annisa ( 1810523020 )
Hijjul Husna ( 1810523001 )
Jovanka Tiara Anindytha Eylba ( 1810523021 )
Muhammad Al-Amien Fadilli Rasyif ( 1810523015 )
Noer Rachmadhani Hernirat( 1810523011 )
Department of International Management
Faculty of economics
Andalas University
2019/2020
A. INTRODUCTION
1. Company Profile
Let's Go Beyond
Type : Public (TYO: 7203) & (NYSE: TM)
Industry : Automotive
Financial Robotic
Biotechnology
Founded : 1937
Founder : Kiichiro Toyoda
Office : Toyota City, Japan
Figure Key : Kiichiro Toyoda (Founder),
Fujio Cho (Director and Representative),
Katsuaki Watanabe (Deputy Director and Representative),
Akio Toyoda (President and Representative),
Shoichiro Toyoda (Honorary Director)
Products : Car / automotive
Production : ▼ 7,308,039 units (FY2011)
Revenue : ▼ ¥ 18,583 trillion (2012)
Operating profit : ▼ ¥ 355.62 billion (2012)
Net profit : ▼ ¥ 283.55 billion (2012)
Total assets : ¥ ¥ 30,650 billion (2012)
Total equity : ▲ ¥ 10,550 trillion (2012)
Employee : 324,747 (2012) [3]
Son business : 522
Website : Toyota Worldwide
2. Company Background
Japan as a developed country in the world, has experienced rapid development in
the industrial field. This includes the car industry. Many Japanese car manufacturing
companies are already very well known at the international level. One of them is Toyota
Motor Corporation. Toyota Motor Corporation was founded in September 1933 as a division
of the Toyota Automatic Weaving Factory. The company's car division was then separated
on August 27, 1937 to create the Toyota Motor Corporation as it is today. The Toyota began
as a weaving equipment company that was initiated by Sakichi Toyoda. Toyoda has been
known as an inventor since twelve years, also devoted his life to studying and developing
textile assembly. The naming of Toyota is more because the mention is more convenient
than using the family name, Toyoda. The company that produces 1 car every 50 minutes is
the world's largest car manufacturer in unit sales and net sales. The largest manufacturer in
Japan produces 8-8.5 million units of cars worldwide every year. At the age of 30 Toyoda
completed a weaving machine. This then led him to establish the forerunner to the Toyota
assembly, namely the Toyota Automatic Work Works, Ltd. in November 1926
Now aside from producing cars, Toyota also provides financial services, and also
makes robots. TMC is a member of the Toyota Group and manufactures cars under the
Toyota, Lexus and Scion, Daihatsu and Hino brands, and has a small share of Subaru and
Isuzu.
3. Company History
Toyota Motor Corporation was founded in September 1933 as the auto division of
the Toyoda Automatic Weaving Factory. The company's car division was then
separated on August 27, 1937 to create the Toyota Motor Corporation as it is
today.
Sakichi Toyoda was born in February 1867 in Shizuoka, Japan. This man is
known as an inventor since his teens. Toyoda devoted his life to studying and
developing textile assembly. At the age of 30 Toyoda completed a weaving
machine. This then led him to establish the forerunner to the Toyota assembly,
namely Toyoda Automatic Loom Works, Ltd. in November 1926.
Starting in 1933, when Toyoda built the automotive division, the team which was
then largely controlled by his son Kiichiro Toyoda, ceaselessly produced leading-
edge innovations in his day. The Type A engine was successfully completed in
1934. A year later this machine was grafted on the first prototype of their
passenger car, A1. The Toyoda automotive division also produces G1 model
trucks.
In 1936 they launched their first passenger car, Toyoda AA (at that time still using
the name Toyoda). This model was developed from a prototype model A1 and
equipped with body and engine A
Then in 1937 they inaugurated the automotive division and used the name
Toyota, not Toyoda like the name of the textile industry. Then, the year 1937 was
an important era the birth of Toyota Motor Co., Ltd. The embryo of the giant
Toyota Motor Corp (TMC) now.
In 1938, the Koromo Plant in Japan (now called the Honsha plant) was
established which is the Toyota's Establishment Exhibit Room.
In the 1940s, Toyota was busy developing capital including including companies
on the trading floor in Tokyo, Osaka and Nagoya. In 1947, Toyota's domestic car
sales had reached 100,000 vehicles.
The 1950s were proof of Toyota as a producer of powerful multi-purpose
vehicles. At that time Jeep vehicles were familiar in Japan. Inspired by this car,
Toyota later developed the Land Cruiser prototype which came out in 1950. That
same year Toyota established Toyota Motor Sales co., Ltd, a subsidiary of
Toyota Motor Co., Ltd which handles Toyota's sales, marketing and distribution.
A year later officially launched the initial Land Cruiser model, the BJ model.
In 1961, Toyota released the Publica model and five years later launched the
Corolla model. Through the Toyota Coroll which made its debut in 1966, this
early generation tiny sedan used a rear drive to change the order of the bongsor
sedan that was popular at that time towards the direction of a small sedan that
was compact, economical and concise
Entering 1975, Corolla entered in the third generation and sold more than 5
million units. This amazing thing is still sturdy today. The Corolla engine was then
used in Indonesia as an engine for a multipurpose family commercial vehicle, the
early generation Toyota Kijang known as the Crocodile Kijang.
In 1989 Toyota finally decided to make two oval circles (ellipses) that produced
the letter T and the third ellipse would signal the spirit of understanding in design
In the 1990s, Toyota increasingly proved that Japanese cars could compete with
European and American cars. The Toyota Celica won the world rally, and the
Toyota Camry became the best-selling car in America.
In 1999 Toyota acquired a 51.19% stake in Daihatsu and in 2001 Toyota bought
a 50.11% stake in Hino.
4. Company Policy
a. Integrated Management System Policy
We, as a team at Industry Motor Company, are committed to comply with the
requirements of our Integrated Management System and to enjoy continuous improvement
upon it in order to:
Manufacture high-Quality Products.
Generate Customer Satisfaction.
Provide Service to the Society.
Maintain Market Leadership.
Identify and avoid/mitigate those environmental aspects which have negative
environmental impacts. Comply with all applicable legal, regulatory and other requirements
related to Environment, Health, and Safety,
Assist society by making the environment more friendly.
Design and maintain facilities, establish systems, provide training and conduct
operations in a manner that safeguards people and property.
Identify, evaluate & mitigate health risks related to our operations that potentially
affect our employees, contractors, and the public.
b. Safety Policy
Industry Motor Company Ltd is committed to provide a safe workplace to all of its
employees and to ensure, so far as is reasonably practicable, the safety of its contractors,
suppliers, vendors and all members of the public that may be affected by its business
operations.
The company will strive to prevent all accidents and injuries through the active
participation of every employee as well as the commitment to put in continuous efforts to
identify, eliminate or manage safety risks associated with its actions.
Our Philosophy :
Safety is everyone’s responsibility,
All accidents are preventable,
All employees are empowered to stop any unsafe job or act, and
No task is so important that the risk of injury to people is justified.
At Industry Motor Company Ltd.,
B. CASE PROBLEMS
1. Why did Toyota wait so long to publically acknowledge and replace the faulty
accelerator pedals?
2. Changing a culture from one that rewards secrecy to one that is more
transparent (especially in a crisis) appears to be difficult. Why?
3. If you were the president of the Toyota Motor Corporation, how would you have
handled the unintended acceleration problems? Explain
C. LITERATURE REVIEW
Submission of clear and precise communication is needed and needed so that there is
no misunderstanding of meaning between a business organization to its customers. The
error in delivering this information will greatly affect the company. For example, we can see
Toyota companies, they are very successful car manufacturers building a reputation for
quality by fostering a culture of sustainable improvement and long-term relationships, until
finally brands are criticized for not sharing enough information about accidental acceleration
issues documented, Until finally Toyota paid a high price by making a massive withdrawal of
8 million vehicles to repair the damaged gas pedal, not only their reputation was destroyed,
many people were also upset with Toyota's handling of the crisis and the lack of clear
communication about the level and causes problem, Toyota has a formal hierarchical
organizational structure that prevents negative information from reaching the top, so that the
week is not aware of any problems in their company, so that the problems that exist cannot
be resolved quickly.
So the company should be able to handle the future of the crisis in a more open and
timely event, so that the problem can be solved appropriately and responsively, so that it will
not cause a crisis and a large negative impact on the company
D. PROBLEM SOLVING
1. Why did Toyota wait so long to publically acknowledge and replace the faulty
accelerator pedals?
The major reason behind Toyatas long wait to publically acknowledge and replace
the faulty accelerator pedals was money. The company didn’t wanted a massive recall
and to pay all the fines resulting in loss of goodwilll of the company. Another reason why
Toyata waited so long because it is considered as a tight lip hierarchical organizational
structure on negative information.
2. Changing a culture from one that rewards secrecy to one that is more
transparent (especially in a crisis) appears to be difficult. Why?
Toyota's crisis would make the company much more transparent both within and
outside; In a buyer's market, customer feedback must be given proper credence.
Customers must be heard out. It is all about transparency - listening to customers
internal and external and responding according. If we can cut through the superficial talk
of transparency and actually be transparent as online businesses, I think it would go a
long way in making our companies more successful. Transparency doesn’t just make
good ethical sense; it makes good business sense, too.
The reason why transparency is so appealing is largely due to cultural trends and
human behavior. We like people who are transparent, so it makes sense that we like
companies who are transparent, too. It’s not about some new “hack” or “technique.” It’s
about being a real person, a real leader, and a real company.
3. If you were the president of the Toyota Motor Corporation, how would you have
handled the unintended acceleration problems? Explain
If I were president of the Toyota Motor Corporation, I would have handled the
unintended acceleration problem right at the time of the first claim. I will give a good
emphasis on the first claim dated March 4, 2004. Personally I believe in dealing at the
root of the problem in a quick manner. If you deal with the problem properly, you are
cutting off the root which eventually the whole problem will die out. Instead, if you try to
sweep the dirt under the rug.
E. CONCLUSION
The talk of transparency and actually be transparent as online businesses, I think it
would go a long way in making our companies more successful. Transparency doesn’t
just make good ethical sense; it makes good business sense, too. Transparency is so
appealing is largely due to cultural trends and human behavior. We like people who are
transparent, so it makes sense that we like companies who are transparent, too. It’s not
about some new “hack” or “technique.” It’s about being a real person, a real leader, and
a real company. An also, dealing at the root of the problem in a quick manner. If you deal
with the problem properly, you are cutting off the root which eventually the whole
problem will die out.
F. LESSON LEARNED FROM CASE
It can be concluded that in any company, even a large company in the same class as
Toyota, there are still mistakes. However, it depends on how the company handles it to
get better and not make the same mistakes. Toyota President Director who is willing to
bend his body and apologize to the world about the production mistakes that have been
made by his company. This is an example of the good attitude of the leader that we
should emulate. In dealing with a problem we can see from the root of the problem so
that it can solve the problem quickly. If we can handle the problem correctly, then we can
cut the roots which eventually the whole problem will die.
G. LIST OF REFERENCE
https://www.fastcompany.com/3036794/why-a-transparent-culture-is-good-for-business
https://thefreeanswer.com/question/toyota-wait-long-publically-acknowledge-replace-
faulty-accelerator-pedals/
http://goresantintaini.blogspot.com/2014/03/makalah-toyota.html
https://id.wikipedia.org/wiki/Toyota
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