Business Plan: Toyota Car

The future of Toyota Car Company 2020 and beyond

Companies are set up their plan for a long time to run their business smoothly and drive it to a desired goal. As a car company Toyota also set up their goals for 2020 and beyond. For future plan a company sets up what they should attain within a period of time. Toyota sets up their goals for 2020 and more than. They have to achieve some of their specific goals as a future plan. These goals are:

To be most respected in the field of car manufacture and sells industry is the Toyotas 1^st mission of their future plan by providing quality product to their customers. They are already in the one of the top car manufacturer and they trying to develop their position. The 2^nd future plan of Toyota is to be most successful. They are already captured maximum market of India now they are trying to be success in the international sector. Delighting customer by delivering better car than the competitor is the 3^rd goal of Toyota. They are always try to provide quality product to their customer and they also try to ensure better post purchase behavior to delight their customer that’s why their mission is to provide safe and sound journey. Capturing largest market share is the 4^th target of Toyota. The primary requirement of development of a company is to ensure larger market share. Because capital is one of the important thing to produce quality product. The next target of Toyota is to increase their product category. They are now car producer and in near future they wants to capture market by not only car but also another goods like car accessories like tire, fuel and so on. They trying to increase their product range. Toyota is trying to economical on their manufacturing cost so that they can tie the price in the range of most customer and get an advantage over their competitor. That’s why they are following cost leadership approach. Toyotas next target is to provide the product to the best people that means they wants to follow selective product approach to sell their product to a specific group of people to capture a target market like iPhone. Their next target is to produce best product using the best technology within these years. For this they training their employees to make their ability to produce quality product using higher technology. Toyotas next goal is to expand their market all over the world for this they are trying to increase their market share and analyzing various country’s market to justify potentiality of the customer and barriers they may face.

Task 2.2: Organizations innovation requirements 2020 and beyond

Generally innovation is to do new things or to make things which is not exist in. Innovation is needed for sustain today’s market. Innovation can defined as a tool for someone to redesign current one or discover a new thing which have no existence. If someone invent new one it will not innovation. To be a innovative thing it must be useful and relative to the subject.

Toyota Car Company sets up their goals for 2020 and beyond as their future plan to attain these goals they should be innovative and specific in some field. In which fields they should be innovative explain below:

Toyota Car Company should launch a car which is not exit in the market or they can add some extra feature to their existing car to attract their customer. This may be change in shape, use of fuel, and change in size and so on. Then they should set up an extra ordinary advertisement for an extraordinary product to deliver their innovation to their expected customer. They should cost leader to reduce their product price to get an advantage over their competitor because sometime price can attract more customer if the products target market is the country like Bangladesh, Nepal, and Maldips. The employees worked in the company should be innovative too. They should design an extra-ordinary item or make a product which is more attractive, to make the employees more innovative it is primarily requires to train them perfectly. When buying a car a customer’s 1^st looking point is the design of the car and they look for the speed and fuel consumption. So Toyota should focus on the design, color, speed, and fuel consumption of their car. Toyota should also focus on corporate social responsibility by providing a car which pollute the environment less and should focus on other social responsibilities.

Toyota wants to increase their product range so they should focus on what kind of product they like to introduce. At present they have car, tractor, van and some other automobile. They can add to their product list high quality AC bus, more capacitive truck and other vehicle. They also can increase their product variety through different accessories of automobile. Toyota wants to make delighted customer. It is more challenging one. A customer turn into delighted only when they believe that the product they are using is the best, and they are thing so when they get the product meeting their expectation and get company’s post purchase service. So Toyota should focus on their product quality and post purchase as by delivering the customer better service after purchasing the product should provide better warranty service.

Task 3: Closing the innovation gap

A significant gap exist between what leaders plan and what they done, a decade’s worth on executive surveys on innovation found that there have a significant gap between the planning of the leaders and their delivery to the organization. Over 80% leaders believe that innovation is helpful to their success and over 305 are satisfied with their current innovation. This called the innovation gap. Although many leaders have adequate research to do anything they sometime fail to maintain innovation gap. Most of the leaders cannot maintain innovation gap in the way they think about the problem. If they want to success they needs to be analytical thinking, critical decision maker and so on.

There are two major factors which causes Toyotas innovation gap. From them 1^st one is knowledge, many established organization does not create innovation effectively because their leaders does not have systematic knowledge about innovation. They are not formally learned how to create and handle innovation. The second cause is that the management system factor that is the management system that made up the organization successful are now facing obstacles as they try to become more innovative in the knowledge economy.

Toyotas leaders can close the innovation gap by working with four organizational enablers, otherwise innovation will be unmaintained. Here is a figure of four organizational enablers of innovation gap:

By using these four enablers Toyotas leaders can maintain their innovation gap. These are given below:

Leading Innovation

One of the most positive things with the leaders is to create innovation among their workers. Their responsibility is to create innovation among their workers by delivering them proper training, groups of direct reports, or cross functional project teams work for innovation project. Executive leaders of Toyota hold the key to the level and the success of innovation ton their organization by delivering and controlling strategic direction, influence the culture, and control all organizational practices directly or indirectly. Without the active commitment and involvement of every member innovation cannot be happened and if any how happened it will not sustain long. So leaders of Toyota should focus their concentration on their employee involvement in the innovation project in order get their expected innovation feedback.

Culture of innovation

A group of surveyor made a survey on 765 CEOs, senior executive, and public sector leaders from around the world about need of understanding an instantly prominent role in establish a culture of innovation. Culture defines an organization how to work, what kind of activities should done and what should avoid, what rules and regulation should be follow and so on. As Toyota an Indian company they should not do anything which goes beyond the Indian culture. Toyotas research have 7 major characteristics that their leaders needs to enable:

  Ø  Every employee needs to understand organizational direction.

  Ø  Priority of the innovation

  Ø  Innovative thinking and innovative practice needs to be appreciated

  Ø  Honest and rusting communication

  Ø  Effective cross functional teams

  Ø  Risk taking leaders should focus on delivering value.

  Ø  Balance innovative thinking.

Organizational practices for innovation

The organization which creates innovation systematically important to pay particular attention to the organization practices. Toyota needs to focus their attention on organizational practices on innovation including its structure, process and policies. It is not enough to Toyotas senior leaders to commit to innovation, focus on the needed skill and ability, required culture, and then wait for innovation which may be blown. Like most of the organization Toyota also cannot design their innovation perfectly that’s why they have an active innovation gap exist in the management system. On the contrary sometime Toyota works behind their innovation required such as maximizing repetition, standardization, predictability and minimizing risk. In almost all situation Toyotas organizational practices are the cumulative decision of all of their leaders which ensure a sound and effective decision.

The innovation plan

Organization of all over the world trying to close their innovation gap but a few of them are successful because of inadequate leadership, inexpert employee, lacking of research needed and so on. The major thing which cause them do not achieve their goal is that they have lack of a formal plan. Like all other organization Toyota is also unsuccessful in implementing a successful innovation plan. There are six guiding for Toyota to developing an innovation plan and it will ensure Toyota to make a solid, sustainable, and achieve the objective:

  Ø  Business objective should be clearly focused.

  Ø  Follow bottom-up input

  Ø  Connect with all executive team

  Ø  Relate clear boundaries

  Ø  Resource planning

  Ø  To track the progress include metrics.

Conclusion

Innovation is making newest idea but it is not similar with performance. Innovation can be grown up on the mind of the manager but performance dependence on several things like employees ability, customer’s acceptance and so on. Innovation is the road map and performance is how to cross the road so whenever Toyota set up their innovation plan they should also discuss about how to attain these plan. By the future plan of Toyota they wants to be success, get customer delight, produce best product by the use of best technology for the best people. These are their future plan but they have some problems to attain these plan and they should overcome these to successful. These barriers includes inexpert labor, product for a specific group or reason, not enough fund and so on. There have a biggest problem which recently raised is Toyotas damaged reputation caused by sudden acceleration recalls, millions in government fines and massive lawsuits and settlements.