UNIVERSITY OF SAN JOSE-RECOLETOS
Magallanes St., Cebu City, 6000, Philippines
TOYOTA MOTOR CORPORATION
ACTIVITY 3: Corporate Governance and CSR/ESG
Name: Kyla Me S. Navaja
Year & Course: BsEntrep_1st Year
Subject: OM13 – 9:20 AM – 11:10 AM
Professor: Sir. Richard Tan
OM13 – 9:20 AM – 11:10AM
INTRODUCTION.
Toyota Motor Corporation, established in 1937 by Kiichiro Toyoda in Japan, is one of the
world’s leading automobile manufacturers. Renowned for its emphasis on quality,
innovation, and efficiency, Toyota has played a significant role in shaping the global
automotive industry. The company is widely recognized for pioneering the Toyota
Production System (TPS), a revolutionary approach to manufacturing that emphasizes
lean processes, continuous improvement, and waste reduction.
Over the decades, Toyota has expanded its global operations, offering a wide range of
vehicles that cater to the diverse needs of customers, from fuel-efficient sedans and
durable pickup trucks to hybrid and hydrogen-powered vehicles. With brands such as
Lexus, Daihatsu, and Hino Motors under its umbrella, Toyota demonstrates a strong
commitment to technological advancement, environmental sustainability, and customer-
centric innovation.
This research aims to explore Toyota’s corporate strategies, global operations, and
ongoing efforts in sustainable mobility, highlighting how the company maintains its
competitive edge in a rapidly evolving automotive landscape.
OBJECTIVES:
1. To analyze the historical development of Toyota Motor Corporation and
understand the key factors that contributed to its global success.
2. To examine Toyota’s core business strategies, including the Toyota Production
System (TPS), customer-centric approach, and innovation in product
development.
3. To explore Toyota’s global expansion and how it adapts to different markets
while maintaining its brand identity and operational efficiency.
4. To evaluate the factors contributing to its longevity.
5. To identify the reason why it is an ideal workplace and its competitive
advantage.
COMPANY HISTORY
Toyota Motor Corporation's history began in 1933 as a division of Toyoda
Automatic Loom Works, focusing on automobile production. In 1937, it was incorporated
as Toyota Motor Co., Ltd. The company experienced significant growth, particularly in
the 1960s and 1970s, expanding its global presence through exports. In 1982, it
adopted the name Toyota Motor Corporation following the consolidation of various
business units.
1933: Kiichiro Toyoda, son of the founder of Toyoda Automatic Loom Works,
established the Automotive Production Division
1934: The division produced its first Type A engine
1935: The first Model A1 passenger car and G1 truck were produced
1936: Production of the Model AA passenger car began.
1937: Toyota Motor Co., Ltd. was officially established
1947: 10,000 Toyota vehicles had been produced in Japan
1950s-1970s: Significant growth and expansion into foreign markets.
1982: Toyota Motor Corp. was formally established after the consolidation of various
business units
Later Years: Innovations like the Lexus brand (1989) and the Prius (1997), the first
mass-produced hybrid vehicle, further solidified Toyota's position in the automotive
industry.
COMPANY FOUNDER.
Kiichiro Toyoda was born on June 11, 1894, in Shizuoka, Japan. He was the son of
Sakichi Toyoda, a famous Japanese inventor who founded Toyoda Automatic Loom
Works, a company that made weaving machines. Kiichiro grew up surrounded by
machines and inventions, which influenced his interest in engineering and innovation.
After studying mechanical engineering at the University of Tokyo, Kiichiro joined his
father’s loom business. However, he became deeply interested in automobiles,
especially after visiting Europe and the United States, where he saw the rise of the car
industry. He believed that Japan should also produce its own cars instead of relying on
imports.
In 1933, Kiichiro started an automobile division within his father’s company. Just a few
years later, in 1937, he founded Toyota Motor Corporation, focusing on building cars
that were durable, affordable, and made in Japan. His vision led to the creation of
Japan’s first mass-produced car, the Toyota AA, in 1936.
Kiichiro also introduced the early ideas of what would later become the Toyota
Production System, known for its focus on efficiency and quality.
Sadly, Kiichiro resigned from the company in 1950 during a difficult financial period and
passed away in 1952 at the age of 57. Despite his short life, his legacy continues today
in the success of Toyota, one of the largest and most respected car companies in the
world.
WHY IS IT AN IDEAL WORKPLACE?
Here are the key reasons why:
1. Employee Well-being and Health:
-Health-First Company:
Toyota's management has declared a commitment to becoming a health-first company,
prioritizing the physical and mental well-being of its employees.
- Safety Focus:
The company has a strong philosophy centered on "Safe work is the gate to all work,"
emphasizing the importance of preventing occupational accidents.
- Workplace Return Support:
Toyota provides guidelines and support systems to facilitate the smooth return to work
for employees after leave, including communication between employees, doctors, and
HR personnel.
- Childcare Support:
Toyota offers various childcare facilities, including those with extended hours and bus
transportation, to support employees with childcare needs.
2. Positive Work Environment:
- Homelike Atmosphere:
The company strives to create a warm and friendly, homelike atmosphere at work.
- Diversity and Inclusion:
Toyota positions the promotion of diversity as a critical management strategy, enabling a
diverse workforce to work with enthusiasm.
- Work-Life Balance:
Measures are in place to support work-life balance, including flexible work
arrangements and support for childcare and nursing care.
- Respect for Spiritual Matters:
The company emphasizes respect for spiritual matters and gratitude, fostering a sense
of appreciation.
3.Continuous Improvement and Innovation:
- Toyota Production System (TPS):
The core of Toyota's production philosophy is based on the principles of jidoka
(automation with a human touch) and Just-in-Time (producing only what is needed,
when it is needed).
- Kaizen:
Toyota encourages small, incremental improvements (Kaizen) to enhance efficiency and
productivity.
- Global Vision:
Toyota aims to lead the future mobility society, enriching lives around the world with the
safest and most responsible ways of moving people.
- Constant Learning:
Employees are encouraged to be studious and creative, striving to stay ahead of the
times.
4. Competitive Compensation and Benefits
- Mutual Trust and Respect:
Toyota emphasizes the importance of mutual trust and respect between labor and
management, fostering healthy labor-management relations.
5. Global Presence and Impact:
-Global Manufacturing:
Toyota has a global manufacturing footprint, allowing it to respond to regional demands
effectively and minimize transportation costs.
- Local Sourcing:
The company often sources materials locally in regions where they have manufacturing
plants, supporting local economies.
COMPETITIVE ADVANTAGES.
1. Quality and Reliability
Toyota is renowned for producing vehicles known for their durability and long-lasting
performance, requiring minimal maintenance. This reputation for quality is a significant
factor in customer satisfaction and brand loyalty.
2. Efficient Production
Systems (TPS): The Toyota Production System (TPS), including Lean Manufacturing
principles like Just-in-Time production and Kaizen (continuous improvement), enables
Toyota to minimize waste, reduce costs, and enhance production efficiency. This system
allows for flexibility and quick adaptation to changing market demands.
3. Strong Global Strategy:
Toyota has a well-defined global strategy that includes establishing production and
marketing facilities worldwide, efficient supply chain management, and a focus on long-
term growth opportunities.
4. Innovation:
Toyota has been a leader in hybrid technology and continues to invest in research and
development to stay at the forefront of automotive innovation.
5. Sustainable Practices:
Toyota is dedicated to sustainable practices, including the development of fuel-efficient
vehicles and environmentally friendly manufacturing processes.
6. Strong Corporate Culture:
Toyota's corporate culture emphasizes market support, consistency, customer
satisfaction, and a global perspective.
7. Economies of Scale:
Toyota's ability to produce a wide range of models, share common components, and
maximize the use of advanced technologies contributes to its cost advantages
FACTORS CONTRIBUTING TO LONGEVITY.
1. Quality, Reliability, and Durability (QDR):
Toyota has a longstanding reputation for producing vehicles that are known for their
quality, reliability, and durability.
2. Toyota Production System (TPS):
TPS is a philosophy and set of practices that focus on eliminating waste, improving
efficiency, and ensuring high quality in all aspects of production.
3. Continuous Improvement (Kaizen):
Kaizen is a core principle of the Toyota Way, emphasizing ongoing efforts to improve all
aspects of the business, from manufacturing processes to product development.
4. Strong Supplier Relationships:
Toyota has a history of building strong and collaborative relationships with its suppliers.
5. Meeting Customer Needs:
Toyota is known for its focus on understanding and meeting customer needs.
COMPETITOR.
One significant competitor to Toyota Motor Corporation in Japan is Honda Motor Co.,
Ltd.. Both companies are major Japanese automotive manufacturers and have been
rivals in the global market for decades. Other notable competitors include Nissan and
Ford, but Honda is often cited as a particularly close competitor to Toyota
REFERENCES:
https://www.britannica.com/money/Toyota-Motor-Corporation
https://www.britannica.com/summary/Toyota-Motor-Corporation
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https://en.wikipedia.org/wiki/History_of_Toyota
https://www.toyota-industries.com/company/history/toyoda_sakichi/#:~:text=From
%20the%20age%20of%2014,He%20was%20not%20successful.
https://www.toyota-global.com/company/history_of_toyota/75years/data/conditions/
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%20Corporation%20)%20will,pillars:%20'Continuous%20Improvement'%20and
%20'Respect%20for%20People'.
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