Toyota: The Once-in-a-Century Challenge

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Case Details:

Case Code : BSTR362
Case Length : 16 Pages
Period : 2006-2009
Pub Date : 2010
Teaching Note :Not Available
Organization : Toyota Motor Corporation
Industry : Automotive
Countries : Global

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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Excerpts

The Number One Automaker

Over the years, Toyota had made a name for itself for its innovations, financial soundness, and global competitiveness (Refer to Exhibit III for world's most admired companies and Exhibit IV for Toyota's industry rank on key attributes)...

Problems

In the new millennium, automakers had to contend with many challenges including high gas prices. As the global financial crisis deepened in 2008, the consumer demand for cars and other goods plummeted, especially in the US and European markets...

What Went Wrong?

Analysts felt that Toyota's bad performance was due to the fact that it had expanded its global production facilities in the mid-2000s to meet brisk demand, particularly for its fuel-efficient cars, leaving it vulnerable to the current slump in worldwide sales...

Change in Leadership

Toyota expected that the global vehicle demand would eventually increase. However, for the fiscal year 2010, the company expected its global unit sales to fall about 14% to 6.5 million vehicles. The projected slip forced Toyota to make changes at every level right from its plants to its dealerships to the top management of the company...

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