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Understanding Change Management | Toyota

University: Imperial College London

  • Unit No: 17
  • Level: Undergraduate/College
  • Pages: 15 / Words 3633
  • Paper Type: Assignment
  • Course Code: CNMT220
  • Downloads: 654
Organization Selected : TOYOTA


Change management is an approach which helps in dealing with the changes or transitions or any kind of transformations with respect to the organisations goals, technologies and the processes. It guides an organisation how to prepare, support, and train an individual so that they can successfully adopt the change in order achieve the organisational success and for the better outcomes. It incorporates the tools of an organisation so that it can be utilized to make a successful change or transformations within the organisation. In this report we take TOYOTA as an organisation, Toyota motors is the Japanese multinational manufacturer of automotbile. It is ranked as the second largest automotive company in the world. In this report various field of change management are discussed and what are the drivers of change that impacts decision making of the organisation. It will also highlight the barriers to the change and also how various approaches of leadership can help in initiating the change(Salman and Broten, 2017).

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1. Comparing the various organisational examples that has a impact of change in their organisational strategies and operations

Drivers of change can be described as the factors that brings the change in the overall organisation. There are various forces of change which compel an organisation to bring the changes within the organisation. Changes can occur by macro environment or by micro environment. There are the various drivers for the change in the company it may include the technological, operational process, internal crisis customers preferences and their habits , new entrains or even by the organisational structure(Salman and Broten, 2017). Toyota has was facing the bad public image because it could not take the quick decisions because of its management structure. The company had been criticized for simple designs in recent years.

Some drivers of change which took place in Toyota can be explained as:

Internal crisis: Growth of the company has drastically effected the company's internal management. Japanese culture could not work in other countries like USA due expansion that slowed the response time and it strained the resources in the organisation that resulted in the Crisis in the organisation. At this stage the management has realized that there is the need for the change in the organisation . This has impacted in the strategies of Toyota like in order to Overcome the crisis and to prevent this crisis in future the company has considered and analysed its strengths and opportunities that exists in the automotive world.

Competition: Toyota had to face the competition from its rivalries like Volkswagen, Audi etc. These two companies provided the stiff competition to Toyota as they were leading in the business this led to the change in Stratifies of Toyota(Salman and Broten, 2017). As per the chairman of the Toyota the competition faced by the Toyota from the Volkswagen was the eye opener for him which led the Toyota to path and became worlds leading car maker.

Design and Innovations: Toyota were designing their auto mobiles with simple designs and safe styling for which they were criticized for it. It has greatly impacted the organisational strategies of Toyota. This has led them to make the innovations and design specifications and go through the series of promotions and also led to the appointing the outside members in order to make design innovations for addressing the issues faced by Toyota.

Customers: Customers of Toyota has shifted their preferences towards other companies like Volkswagen, Audi, Ford etc. change in the market, lots options available and competitions forces the customers to shift their preferences towards other companies. This impacted in formulating the strategies to attract the customers and also to retain them by making the change in the designs and offering the better services.

Technology: As the technologies are changing and expanding rapidly, all the companies of automotive are adopting new technologies in order to improve their processes and to remain competitive in the market which is the main driver for the change in the organisation. Toyota has to make the strategies the kind of technologies up-gradations it has to make in order to remain competitive in the business and win over its competitors.

Market Trends: The ways of marketing and presenting their products have the impact on the sales of the products. Companies are adopting different ways of marketing their products and services that they offer to the customers. Toyota has to formulate strategies to market their products and services and introduce new ways of marketing process like whether to go online through social media, its websites, t.v adds, billboards etc. Which help Toyota reach to the wide range of customers.

2. The ways by which external and internal drivers of change have the effect on the leadership, team and on the individual behaviour.

Various external and internal drivers of changes that have effected various organisations. All these forces have effected the strategies, policies, management and even the ways of carrying the business processes. We can give overview of case studies of different organisations to understand the change drivers and their impact on strategies and the decisions of the organisations(Amin and Servey, 2018).

For instance Toyota were facing the internal problems of internal crisis in the management and productions. This resulted as the driver of change in their management and at productions level in order to improve their overall performance. Toyota in order to manage this crisis they reframed the organisational structure in order to address the issues they were facing. Toyota also formulated the strategies to reduce their industrial wastage and they focused on the Just In Time concept in order to reduce the waste. This technique allowed the Toyota to improve their process of production and help in improving their working environment. Toyota were facing stiff competition in terms of design, technologies, style etc, due which resulted in the loss of market value and losing of their customers. These drivers change influenced Toyota to make the strategies to gain the competitive advantage by making the changes in their technological levels, making innovations in their designs and qualities of their products.

Volkswagen has made major changes' ion the management and the structure of their organisation. The main driver for the change for the Volkswagen was they had to face the problems of emissions standards in various countries for example in India. As there are the various emission standards set by various countries and they have to formulate the strategies according to these emission standards. A company have to face random inspections in order to check their emission standards from the factories to the on roads. Volkswagen has to make the strategies to make their cars and factories emission levels to the permissible level. If they fail to do it they may be charged with the penalties for violating the rules. They are facing this challenges mainly with Diesel vehicles. It impacts led to the change in the management and organisational structure of Volkswagen. This has led to the change of Chief Executive

and led to the changes in the corporate structure of the organisation.

Audi has focused on the customers' satisfaction by providing new concepts of road assistance, safety measures etc. which has proved the change in the organisation strategies. It has formulated the plans to increase the customers' satisfaction by providing the night vision assistance, adopted the cruise control, parking assistance, speed limit display, safety systems etc. All these measure has led to the increase in the satisfaction level to the customers. For this purpose Audi had to make changes in their technology, innovations, servicing level etc. Audi too has to face the emissions challenges which they have to maintain at the permissible level. Audi is also facing these problems with Diesel cars which are emitting more than permissible level in USA. Audi's internal environmental factor is driving the change in the organisational culture of Audi, the labour leaders of Audi are calling for the changes in the leadership style followed by Audi. They want it to be more transparent, and more simple and lower in its hierarchical level. Now the management has to adopt or to follow new leadership culture within the organisation in order to face this issue and also to gain the trust of its workers within the organisation. So that they is good relationship between the management and labours(Amin and Servey, 2018).

3. Drivers of change and swot analysis

Toyota is most popular auto mobile company in the world and it is also the largest car manufacturing company. There is involvement of Japanese company in manufacturing quality and efficiency. Toyota designed vehicles on best price which is affordable. It is more profitable company in auto mobile sector. It makes changes day by day and it will be the best vehicle maker company in the future.

The main reason in success of Toyota is that they change their product with speed in the market with new technologies and also in the best price so this thing likes by the customer because every customer want the best product ion a cheap price. They use the best quality product with inspiration of other companies. They find ever good efficiency product and use in this car making. They provide the best quality in cheap rate in comparison to other auto mobile company.

Internal and external drivers- Drivers which make changes in auto mobile sector are -

External drivers-

Tough competition - In the market every day comes with anew change and an innovative technology. So for survive in the competitive market develop new strategies and new technologies with an idea and run with competition. Toyota motors always believes in change and they run with new changes so that it is the largest auto mobile manufacturing company. Competition always increasing with time so being innovative is the best idea to survive(Amin and Servey, 2018).

Consumer demand- Every consumer has different perception about the product. They want something new with changes in time. The most affective factor which influence the buying behaviour of consumer is cost and price of the product. Major concern is customer satisfaction in these days. Toyota motors always focused on the quality product with affordable price.

Shortage of resources- Toyota focuses on the resources which is available to them they don't move to another side till they have need to switch toward new resources because in market resources are limited and users increase day by day so it also effects on the decision making in Toyota.

Internal drivers- There are some internal drivers which make change in the organisation. They are following-

Growth of company- It is the main purpose of any company to being profitable in the market. Changes are important for growth of any company because it is world of competition. Positive change will grow the company and negative change will decrease the immunity of company.

Technology- Technology plays a main role in the profitability of any company and if an organisation make changes with anew day then it will be grown in the future. Toyota used this strategy to make them comfortable with the world and for satisfaction of the customers. It is the only company who provide the best quality products in budget price.

SWOT analysis of Toyota

Strength- It makes product with green vehicle technology and provide the best quality product in the world in low price in comparison to any other company. In term of output, Toyota is market leader.

Weakness- In few years Toyota launched many of the vehicles in which some vehicles were not liked by the peoples and it made dangerous to financial condition of Toyota. Presence in emerging market is not good of Toyota.

Opportunities- Toyota is able to continue green vehicle because there are many customers who is ready for purchase electric vehicles due to green vehicle model. Meet with the need of customers and have to satisfy their need and wants.

Threats- Threat of cost increase because of increasing in price of row material(Amin and Servey, 2018). Threat of competitive market because new companies crossed then with making good strategy a to implement them.

4.Changes and their impact on the strategy and decision making

Two companies Toyota and Volkswagen and their changes.

Changes by Toyota-

Take customer satisfaction on priority - They started giving quality services to the customers for their satisfaction because customer satisfaction play main role in productivity of the company. To achieve the goals Toyota needed this change. Effect of these changes on Toyota is that they are capable to plan something new on the bases of customer satisfaction and reviews. The impact of this on decision making process positive because they directly in touch with the customers and customer preferences always make positive impact on the company. Toyota gains the opportunities and take advantage of this.

Change in performance management tool- They start to use performance dashboard to measure growth of company. Strategy of the organisation, guidance level and how management works in the organisation or quality of the product, that all things are measured by performance dashboard for significant changes in Toyota. Performance management is the best key to change the environment of any organisation and Toyota did this and change the environment and focused on employees' relation because if an organisation is internally safe then it will give better outcome.

Setting up goals for excellence- A company need to be capable in highly competitive world to gain their lead gaols and stretch goals. They planned their goals on annul bases and compare them in the end of the year.

Operational changing strategy- Customers chose to Toyota because of good quality and low price(Gordon, 2015). Operation management defined as manufacturing level maintenance, product quality, raw material price and quality and all. management team is responsible for quality and safe system. Toyota prefers to use waste in manufacturing system and that not means its of bad quality.

They made some more changes and they are following-

Changes in business development group for increasing efficiency and use of available resources. The business development unit and the marine division changed into marine and business unit division. Purchasing planning department change into purchasing administrative department and global purchasing planning division changed into purchasing planning unit.

Changes and their impact on Volkswagen and their strategy-

Diesel strategy- Volkswagen always focused on making diesel engines but after the scandal they move on with it. Diesel makes pollution in environment. They faced extra publicity of the diesel engines so they decide to move towards petrol engines and this changes help them to live in the environment and no need to face rejection toward government policies.

More local decision making- It is famous for the decision making strategy for top to down. Now the employees take their own decision making and this thing impact very well on the company because through this employee satisfaction level increased and it makes productivity. Now the local executives have authority to take their own decision on their level.

5. Change will have affected leadership, individuals and team be6 Minimizing the impacts of changes and applying appropriate models to assess the change efficiency.

Organisational change make effect on the whole organisation and their employee's. It also affects the decision making process of the organisation(Gordon, 2015).

Leadership model or approaches

Authentic model- An authentic model refers to the leader who is aware about of all the situations and know about the values. With the changes in Toyota and Volkswagen their leaders not more affected by the changes because they are the leader who are already know about the situation that it will be happen someday and they already prepared about that change. The leader motivates other employees in this kind of situations and highly aware of their strength and weakness. It is not an easy task to live with anew change but they set their mind according to that situation and will perform well. They have ability of transparency and self confident or making relationships.

Situational model- This model refers to that a leader has to change themselves and also to the employees regarding the changes and decisions of the organisation. These leaders are not aware about the changes but after aware about the changes they have to do the task and motivate the employees to done that task and its depends on the willingness of the employee. It depends on the relationship between leader and employee. After changes in Toyota its made impact on the employees and leaders too but it is only in case of this type of leader and they easily adopted the work with employees. Leaders low direct on the employees and gave high support to them for the task management.

Servant model- It refers to that type of leaders who come over with their ego and to help the employees. The need of their followers are more important in compare to need of themselves. This model involves leader, individuals and team behaviour as well as. From the change they all affected too much because of new plan in the organisation came and old was went. Some employees thought in positive way and some thought in negative way so its totally depends on the employees and team that how they take it(Gordon, 2015). In this model the leader is dedicated to the employees, leader work for the other employees and followers because it is the priority so they can Handel everything with the team work and with effective leadership.

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6. Minimizing the impacts of changes and applying appropriate models to assess the change efficiency.

Its leaders are maintained the accountability and trust. Toyota clearly change think external create the experience both very costly fun and valuable. Toyota always change start the content of the function have practical on the job informations I.e.(the Toyota is experiencing spears change create sure change management is part of the function!) and leading teams given various change equal to the larger transition. Bring employees together plan change to very difficult. Successful change projects were functioned by mangers removing barriers to staff's success. Creative managers can effectively manage work of change and also time of change because leaders are open to inputs from inside and outside sources. Toyota company experiences change, regardless it's of change size geographic or company. Toyota using that data they could make actionable functions designed to unique needs. Toyota staff's plays part of the process change end of the day of company culture. Leaders set idea's, plans, objectives and values. Toyota company can focus on what polices and behaviour are at play qualify strategic ways to change trends. Leaders need to be observant leaders have power to motivate and support changes to create it betters. Change mangers begin by creating the change they have sought. It can include explaining the purpose, and evaluating Toyota company context, managing the clear mission to identifying the main goals and objectives. Successful mangers managed a strategy and action plan, including timeline, plans, behaviour and structures. Toyota company have change the management and team. Employees in making decision growth and strength to promise their change. The most important change to translating strategies, leaders can also change employees positions. Many mangers are avoided the all important change of human side. Toyota company goal to characterise change able leaders. Successful mangers make sure that their own trust and behaviours motivate the change. Employees have to change their personalities according to leadership. A company needs to set the timelines which are base on the true capacity of the employees within the organisation. For minimizing the impact the leaders have to understand the dynamics and human culture within the organisation. The best way to minimize the change is to communicate with the employees at the regular basis which will improve the working conditions within the organisation.

Read Also: IKEA Marketing Strategy and Planning


It can be concluded from the report that there are various drivers of change that forces the organisations in changing their management decisions and formulating the strategies in order to overcome these changes. An organisation has to face the different drivers of changes like internal factors which includes strengths and weaknesses of an organisation which drive the organisation to change its strategies and plans to address these issues. There may be problems between internal management and the employees which they have to address for the smooth functioning of the organisation. The external factors like government policies and regulations which has to be followed by the organisations to set or to run the business within a particular country. Its is also discussed how these changes have the impact on the leadership, individuals as well as a team of an organisation and how it can achieve the change efficiency.

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