The Wise Strategy of Toyota Organization - Essay Example

The Wise Strategy of Toyota Organization The recent financial crisis has left dreadful memories on the mind of some well known industrialists and businesses. Most of the banking institutions have closed or merged their operations with the existing other institution in order to facilitate uninterrupted services to their customers. The financial institutions were not the only one affected by the crisis, the other manufacturing and service sector companies were also affected like General Motors, Satyam Computers, etc.

Future Strategies Never imagined that Toyota would face similar fate as many other companies because it has been over half a century of slow progress with each decade and showing an incremental increase in the market share and it is reported that one in every six cars bought in United States is Toyota which makes it to believe the hard work that the company had put in to reach the top position and to be called as leader in the market and giving tough competition to its rivals in domestic and international markets.

Toyota's vehicle sales for the year ending March 31 fell 15.1% to 7.57 million vehicles from 8.91 million vehicles in previous year. Apart from this core strategy of Toyota is quality and with recession in place, consumers may want cheaper cars of best quality and based on this phenomenon, Toyota aims to develop its technologies and processes in order to manufacture vehicles for all markets at lower cost as part of its grand plan to produce cars better, faster and cheaper than its rivals. The organization has adopted wait and see philosophy in order to determine the type of manufacturing facilities needed and which products are in demand which is considered to be wise strategy instead of stocking products and reducing the prices to create demand.