The History Of Toyota New Zealand Business Essay Example

impact on the country's economic growth. As the second largest car manufacturer, Toyota has played a vital role in boosting the economy. Furthermore, Toyota New Zealand has introduced advanced technology such as hybrid cars that offer environmental advantages and help individuals save money. This provision of cutting-edge technology allows them to generate substantial profits. Additionally, Toyota New Zealand's commitment to delivering eco-friendly technology has led to increased sales compared to previous years.

ROLE OF MANAGEMENT

The role of management refers to various professional actions and includes analyzing 10 different and consistent functions. These functions are grouped into interpersonal associations, displacement of information, and consequence creation.

• Toyota New Zealand has 290 staff members and operates from three different locations:
• The National Customer Centre in Palmerston North.
• Thames Vehicle Operations in Auckland.
• Toyota Financial Services.

Employees

Toyota New Zealand's employees consider the company as one of the best workplaces in New Zealand. The company focuses on maximizing employee confidence within a caring environment. It adheres to employment laws in every country it operates.

Number of Staff Trained During Each Year

• There are three different types of staff: Individual contract, Collective, and Dealer Staff.
• In the year 2009/10, training was provided to 161 members of Individual contract staff, which increased to 169 in the year 2010/11.
• In the year 2009/10, training was provided to 48 members of Collective Staff, which slightly increased to 52 in the year 2010/11.

Importance of Management in Toyota

Management plays a crucial role in achieving organizational goals by overseeing key management functions. It involves effectively accomplishing tasks through the work of others.

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Management Functions of Toyota

• The management functions of Toyota involve organizing, decision-making, and directing a project. The number of directors can vary depending on the size of the organization, with small organizations having one director and international companies having hundreds or thousands. In large organizations, a panel of directors determines actions that are implemented by the CEO. Knowledge and value of directors are important factors in evaluating an organization's worth.
• Planning: Setting goals and determining the best approach to achieve them.
• Organizing: Efficiently allocating resources to carry out tasks.
• Leading: Influencing others to perform job duties for organizational goals.
• Controlling: Regulating performance to align with principles and goals.

Skills and Competencies

To fulfill managerial responsibilities, directors require a broad knowledge base suitable for their specific roles.

• Trade information.
• Information about consequences or services.
• Market place information.
• Machinery information.
• Concern information.

Leadership patterns, such as apparent end preparation, ability enlargement, and a realistic pay-for-performance civilisation, are employed by successful companies to ensure their workers are respected. Effective modus operandi and module direction have been proven to increase employee assurance and overall efficiency. A business surpasses its competition with the help of engaged, creative employees. There are conceptual accomplishments that a CEO needs, including the ability to interact properly with people.

Staff members should be able to speak fluently and courteously and be cooperative with customers.

As the CEO, Alistair performs various functions. These include decision-making, where he has the authority to make important choices for the company such as increasing staff wages, changing the company's location, promoting deserving members, and hiring new staff.

The purpose of providing relevant information to subsidiaries is to enhance efficiency within the company. Alistair has multiple responsibilities as a figurehead and must complete them within a given timeframe. Moreover, he serves as a team leader and motivates his subordinates by introducing new equipment and informing the staff about it. As the owner and liaison, he is responsible for maintaining regular contracts with foreign entities.

MANAGEMENT PHILOSOPHIES AND MANAGEMENT PRACTICES

• Being approachable creates an environment for staff to express concerns and share information, addressing problems early.
• Earning trust leads to transparency and open communication, breaking down barriers to collaboration.
• Gaining business knowledge through daily engagement provides a deeper understanding of organizational functions and processes.
• Maintaining regular interaction with the team promotes accountability and motivates everyone involved.
• Offering opportunities for employees to be heard enhances morale and perception of their jobs and the organization.
• Casual conversations spark creative ideas, increasing workplace productivity.

Management encourages open communication, creating a comfortable space for individuals to share ideas. Efficiency and effectiveness can be measured by task completion speed, determined by the number of inspection bags conducted per hour or per person in a day.

This addresses the level of organization in humans' ability to search. Efficiency is a key measure of how competent a person is at validation. Testing efficiency can be measured by the number of bugs identified by an examiner in

a specific feature, or the total number of bugs known in that feature.

IMPACT OF INTERNAL AND

External ENVIRONMENTS OF TOYOTA

Impact of Internal Environment

Poor Communication ( Technical factors )

The lack of proper communication between staff members and the designer about problems arising in certain branches of the company or organization sometimes leads to staff turnover in Toyota New Zealand, resulting in a decrease in the number of employees working for the company. To solve this problem, intercommunication must be utilized during emergency situations.

No Quality Manager

In some company divisions, there is an absence of a quality manager, resulting in the use of materials that do not meet legal standards for the production of new vehicles. This leads to poor performance of the vehicles after a short period of time.

Improper Control

In some cases, many subdivisions of Toyota and its directors fail to control situations and the outcomes of their plans effectively, resulting in wasted time.

Poor Time Management

The company's ineffective time management has caused lower production and increased vehicle demand. Workers rely on each other instead of focusing on their own tasks, resulting in assignment delays.

Technological Factors (People)

Some staff members lack the necessary skills and knowledge of the latest technology needed for a multinational company. Proper training is important to equip employees with essential techniques.

Impact of External Environments

Political Factors (Political Laws)

Political laws, such as duties imposition and implementation changes, can affect the company's operations. For example, strict government regulations may lead to difficult relocations that staff members struggle to understand.

Inflation

and Economic Factors

The impact of economic factors, specifically inflation, on Toyota's vehicle sales was significant. Competitors like Nissan and Audi raised their car prices, prompting Toyota to follow suit. Consequently, there was a slight decline in sales as some potential buyers could no longer afford the increased prices.

Globalization and Sociological Factors

Toyota's efforts towards globalization have resulted in expanding their operations to more than 170 countries, including Germany, Japan, China, the UK, and the United States. This globalization has had an effect on all four main management functions.

Managing Toyota's globalization efforts would have demanded considerable time and management effort, leading to time wastage. The process of guiding the company towards globalization can be both simple and challenging, as countries may engage in lengthy discussions regarding the utilization of the company for product sales.

Political Environment (Political Factors)

At times, a country's political environment does not support efficient business operations. This could be due to the absence of trade agreements with other nations, which obstruct import and export activities.

Porter's Five Forces: Measuring the Balance of Power in a Business Situation

The Porter's Five Forces tool is a straightforward but significant tool for evaluating the distribution of power in a business situation. It aids in comprehending the potency of your existing competitive position and appraising the potential strength of a position you are contemplating entering. By understanding power dynamics, you can successfully exploit advantageous situations, enhance weaker ones, and steer clear of errors. This tool is indispensable for effective planning.

Conventionally, the tool is utilized to assess the profit potential of new products, services, or businesses. However, it also offers valuable insights into understanding

power dynamics in other scenarios.

Understanding the Tool:

Five Forces Analysis assumes that there are five key forces that determine competitive power in a business environment. These forces include: Supplier Power, where you evaluate the ease with which suppliers can raise prices.

The text highlights the factors that drive the power dynamics between providers and buyers, as well as the importance of competition. The number of providers and their control over merchandise quality, scrutiny, and costs affect their influence. Similarly, the number and significance of individual buyers, as well as the cost of switching from one provider to another, impact their ability to negotiate lower prices. Powerful buyers have more leverage to determine terms. Moreover, the quantity and competence of competitors play a crucial role in determining market dynamics.

If you have many competitors who offer similar products and services, you may have little influence in the situation because customers and suppliers will go elsewhere if they don't get a good deal from you. However, if no one else can offer what you do, then you often have significant strength. The threat of substitution is influenced by the ability of your customers to find a different way of achieving what you offer. For example, if you provide unique software that automates an important process, people may substitute by doing the process manually or outsourcing it. If substitution is easy and feasible, then this weakens your power.

The threat of new competitors entering the market can jeopardize your position if there are low barriers to entry and little defense for your key technologies. However, strong barriers to entry can help maintain a favorable position.

Dumping of waste has become a common practice

for companies in New Zealand. I believe this leads to pollution and instead of dumping the waste, companies should recycle it for other purposes. The improper management at certain branches of Toyota in New Zealand is a major issue. To address this, the company should allow the new generation to implement their ideas and showcase their skills. Toyota New Zealand lacks a proper system to measure its wastewater. They should make some assumptions and come up with estimations. The company can find solutions to these problems by following the Lewis Change Management Model.

Kurt Lewin developed a theory in the 1950s on how people react to change. This theory involves three phases: Dissolving, Change, and Refreezing. Dissolving is the first phase, where the organization recognizes the need for change and breaks down the current status quo. This phase can be difficult, especially when change is imposed externally. Effective communication is essential during this phase to clearly convey the details and purpose of the change.

This necessitates preparation and adjusting people's attitudes. The time taken to navigate through the process will depend on the specific situation of the change. If the change is handled quickly, a more respected approach may be necessary.

Changing

The transition from unfreeze to change does not happen overnight: It takes time for people to adapt to the new direction and actively participate in the change. A model known as the Change Curve can be used to address the specific challenges of transitioning in a changing environment, providing more detailed insights. To fully understand and contribute to a successful change, individuals must recognize how the changes will benefit them.

Not every individual will comply simply because the

change is mandatory and will benefit the company. This is a common assumption and drawback that should be avoided.

Refreezing

The changes are taking shape and individuals have embraced the new ways of working, and the organization is ready to refreeze. The outward indications of the refreeze include a stable organization chart, reliable job descriptions, and so on. Additionally, the refreeze phase also needs to help individuals and the organization internalize or commit to the changes. This means ensuring that the changes are used consistently and integrated into everyday business operations.

With a new sense of strength, employees feel secure and restful with the new ways of being effective. The motivation for creating a new sense of strength in our ever-changing universe is often questioned. Even though change is constant in many organizations, this refreezing phase is still crucial. Without it, employees become trapped in a change cycle where they aren't sure how things should be done, meaning that nothing ever gets done to its full capacity. In the absence of a new frozen state, it is very difficult to successfully undertake the next change idea.

Whether you are in possession of a minor adjustment to one or two procedures, or a system-wide alteration to an organization, it is normal to feel anxious and scared by the scale of the challenge. There are various theories on how to "make" change. Many begin with management and change management expert, John Kotter. A professor at Harvard Business School and renowned change expert, Kotter introduced his eight-step change process in his 1995 book, "Leading Change." We examine his eight steps for leading change below.

Step 1: Create Urgency

For change

to occur, it is beneficial for the entire company to genuinely want it.

Develop a sense of importance regarding the need for change. This can help motivate you to get things moving. It's not just about showing people declining sales figures or discussing increased competition. Engage in an honest and trustworthy dialogue about what is happening in the marketplace and with your competitors.

If a large number of individuals begin treatment regarding the alteration you are proposing, the pressure can build and sustain itself.

Step 2: Establish a Strong Partnership

Convince people that change is necessary. This often requires strong leadership and visible support from key individuals within your organization. Managing change is not enough - you must get ahead of it. Valuable ideas for change can come from anywhere in your organization - they do not necessarily adhere to the traditional company hierarchy. To initiate change, you must bring together a coalition, or team, of influential individuals whose power stems from various sources, including job title, status, expertise, and political significance.

Once formed, your "change alliance" aims to function as a team, coming together to create significance and direction around the need for change.

Step 3: Create a Vision for Change

When you initially begin pondering about change, there will likely be numerous excellent ideas and solutions floating around. Connect these concepts to a cohesive vision that individuals can easily grasp and remember. A clear concept can help everyone understand why you are asking them to take action.

When people personally witness the purpose you are striving to achieve, the directions they are given become more meaningful.

Measure 4: Communicate the Vision

The actions you take with your vision after creating it will determine

your success. Your communication will likely face competition from other everyday communications within the company, so you must consistently and passionately communicate it, integrating it into everything you do. Don't simply schedule special meetings to communicate your vision. Instead, talk about it whenever possible. Use the vision daily to make decisions and resolve conflicts.

When you consistently remind people, they will remember and respond. It is also important to practice what you preach. Your actions are more significant and believable than your words. Clearly demonstrate the behavior that you expect from others.

Measure 5: Eliminate Barriers

If you have followed the steps so far and reached this point in the transformation process, you have been discussing your vision and obtaining buy-in from all levels of the organization. Hopefully, your staff members are eager to get involved and achieve the benefits that you have been promoting. However, are there any individuals resisting the change? Are there processes or structures that are hindering its progress? It is important to establish a framework for change and frequently assess for obstacles. Removing these barriers can empower the people necessary to achieve your vision and facilitate the forward movement of the transformation.

Measure 6: Establish Early Wins

Nothing inspires more than success. Give your company a taste of success early on in the transformation process.

Within a short timeframe (such as a month or a year, depending on the type of change), it is important to set goals that your staff can see. The absence of these goals can leave room for criticism and negative thoughts that can hinder your progress. It is advisable to set

short-term goals rather than one long-term goal, as each smaller goal should be achievable and leave little room for confusion. Your change team may have to work hard to come up with these goals, but each success that they achieve can motivate the entire staff.

Measure 7: Building on the Change

Kotter suggests that many transformation projects fail because success is acknowledged too early.

Real change goes beyond surface-level changes. Quick victories are just the initial steps towards achieving long-term change. Creating a new product using a new approach is a positive development. However, establishing ten products indicates that the new strategy is effective. To achieve that tenth success, continuous improvement is essential.

Each success presents an opportunity to build upon what went well and recognize areas for improvement.

Step 8: Embed the Changes in Corporate Culture

Lastly, in order for any modification to be effective, it must become integrated into the heart of your organization. Your company culture often dictates what gets accomplished, so the principles behind your vision must be evident in everyday work. Continuously strive to ensure that the change is evident in every aspect of your organization. This will help establish the change as a integral part of your organization's ethos.

Furthermore, it is crucial for your company to ensure that the individuals who have considerable influence continue to embrace and promote change. This not only applies to the existing staff but also to the newly appointed leaders. Neglecting the support of these personnel may result in a regression to previous circumstances.

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