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Toyota Motors: Strategy Analysis


Toyota has been known as one of the major global corporations producing cars. Originally founded in Japan, the company quickly grew into a global enterprise represented on multiple levels and targeting a wide variety of buyers. However, despite the attempts at incorporating the latest advances in HRM the company has still been succumbing to the traditional styles of managing its internal issues (Toma & Naruo, 2017). By combining an effective quality assurance technique with the focus on the improvement in the management of its resources and especially the introduction of talent management approaches, Toyota has made significant progress in cementing its position in the global market.

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Toyota’s overall strategy presently seems to appear to focus on the issues that are elated to the improvement of the company’s supply chain, as well as the management of Toyota’s production cycle, in general. Namely, the fact that the company has been using the JIT framework indicates that Toyota has been aiming at reducing the time taken for the production cycle to be completed. Indeed, the improvement of production speed along with the quality thereof allows increasing the competitive advantage of an organization significantly.

In addition to the overall competitive strategy of the organization, Toyota has updated its human resource management (HRM) framework, the described change appears to be in line with the overall trend within the company. Specifically, the organization has shown the tendency to reconsider the traditional approaches toward managing key processes within Toyota and introducing the strategies expected to reduce the amount of resources spent on its completion (Liker & Hoseus, 2010). Presently, Toyota strives to address a critical organizational concern. Therefore, the firm has been adopting a compound strategy based on a combination of several approaches, including the search for strategic partners, the inclusion of administrative experts, the focus on championing employees’ needs, and the introduction of change agents into the organizational setting.

Toyota’s HRM strategies have been working quite well recently, allowing the organization to engage in effective talent management and contributing to the successful management of roles and responsibilities within the current team. Moreover, the focus on the professional development of the employees has allowed to enhance the current talent management practices and create the platform for building Toyota’s future competitive advantage (Liker & Hoseus, 2010). Overall, the focus on the organizational development and the promotion of the internal TPS development within Toyota appears to have contributed to its progress to the greatest extent (Toma & Naruo, 2017). Indeed, looking at the performance delivered by the organization, one will notice a sharp rise in it with the adoption of the lean management techniques and the implementation of the said framework for TPS improvement, especially as far as the safety and quality assurance are concerned.


Overall, Toyota’s readiness to combine the lean management practices with the TQM framework and the TPS strategies allows the organization to retain its competitive advantage and control the extent of the production quality to a considerable extent. As a result, the firm has been gaining increasingly more influence in the market of its choice, as well as in the global car manufacturing environment, in general. Although the company needs to continue working on the development of innovative methods and tools for keeping its products relevant and popular, it has provided the basis for improving its position in the global market. With the integration of the JIT principles, employee-centered talent management techniques, and reciprocity in the workplace, the company has gained essential footing in its target business setting.


Liker, J. K., & Hoseus, M. (2010). Human resource development in Toyota culture. International Journal of Human Resources Development and Management, 10(1), 34-50. Web.

Toma, S. G., & Naruo, S. (2017). Total quality management and business excellence: the best practices at Toyota Motor Corporation. Amfiteatru Economic Journal, 19(45), 566-580.

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