Toyota is one of the most successful companies operating in car manufacturing industry worldwide. Today, the company holds one of the leading positions in the industry. The tremendous success the company has reached is the result of the effective management and strategic marketing development of the company. At the same time, the steady and effective development of the company depends on the extent, to which it manages to meet needs and wants of its stakeholders, whereas ignoring interests of stakeholders the company can face a risk of the consistent deterioration of its performance and position in the market.
In actuality, Toyota focuses on the customer satisfaction and provision customers with products and services of the high quality. In this respect, the company attempts to implement its mission and vision, which stresses the importance of customers and their satisfaction for the company. In fact, Toyota’s mission is to make better cars and contribute to community. This mission of the company implies that the company should work on the constant improvement of the quality of its products and services and, at the same time, contribute to the community. In actuality, this mission of the company is supposed to meet interests of customers, as major stakeholders of the company. On the other hand, this mission affects consistently other stakeholders – shareholders of the company, who are naturally interested in the maximization of profits of the company. In this regard, it is important to place emphasis on the fact that the fulfillment of mission and vision of the company raises the problem of the conflict of interests of stakeholders, namely shareholders and customers but the company still attempts to meet needs and wants of all stakeholders, especially customers and shareholders.
First of all, it is important to place emphasis on the fact that current policies of Toyota focus on meeting needs and wants of customers and, in this regard, the company attempts to meet its mission and vision. The company was always concerned with the quality of its products and services. However, the company fails to meet interests of customers and reach the customer satisfaction to the full extent. For instance, the recent car recall made by Toyota because of technical problems with some of its cars is the manifestation of the failure of the company to make better cars and, thus, to meet interests of customers as the company’s major stakeholders. In fact, the car recall means that the quality of cars manufactured by Toyota is not good enough to meet customers’ needs.
On the other hand, the company attempted to minimize the negative impact of the car recall because, if the company did not recalled its cars, customers could suffer from car accidents that would put their health and life at risk. In such a way, the company has proved that customers still are the primary concern of the company (Farell, 2004). In addition, the quality of cars manufactured by cars is still high and the company attempts to introduce innovations constantly that is another evidence of the attempt of the company to meet its mission and to improve its products.
At this point, it is important to understand reasons for recent problems the company has faced. In this regard, it is possible to presuppose that technical problems in Toyota’s cars were caused by the intention of the company to save costs on the development and construction of new cars. Saving costs was probably essential for the company in the time of economic recession to meet interests of another group of stakeholders – shareholders of the company (Gomory, 2002). In fact, Toyota could increase benefits through reducing costs and shareholders could obtain high revenues. However, in this intention to meet needs of shareholders, the company derived from one of its strategic goals defined in its mission – to make good cars. The recent car recall proves that Toyota can save costs on development and construction of cars because it may affect the quality of its cars. Therefore, the company may fail to reach its mission’s goals and objectives.
To minimize the risk of the failure to reach its strategic goals, Toyota attempts to introduce innovations, which could make its cars better and safer (Gitlow, 1997). In this regard, it is worth mentioning efforts of the company to introduce hybrid vehicles, which help the company to reach another strategic goal defined in its mission – to contribute to community (Farell, 2006). The introduction of hybrid cars makes them safer for the environment and minimizes greenhouse gas emissions. In such a way, Toyota cars become environment-friendly that meets needs and wants of customers. Therefore, the company develops technologies, which allow its cars to be better and safer. In addition, the introduction of hybrid cars contributes to the growth of sale rates because they are more fuel-efficient. In such a way, the company increases its revenues and meets interests of its shareholders.
Obviously, Toyota has proved to be successful in its business development and meeting interests of its stakeholders, regardless some difficulties.
Farell, A. E., et al. (2006, Jan. 27). “Ethanol Can Contribute to Energy and Environmental Goals”. Science, 311, p.506-508.
Gomory, R.E. (2002) Globalization: Causes and Effects. New York: Touchstone.
Gitlow, H. S. (1997). The Deming guide to quality and competitive position. Englewood Cliffs, N.J.: Prentice-Hall.