Toyota in 2004: Managing Innovation in the New Millennium

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Case Details:

Case Code : BSTA025
Case Length : 11 Pages
Period : 2000 - 2004
Organization : Toyota
Pub Date : 2005
Teaching Note :Not Available
Countries : Japan
Industry : Automobile

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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

Process Innovations

Improving Flexibility
Despite its pioneering efforts in Just-in-Time, one of the challenges which Toyota faced was in moving towards a build-to-order system, especially outside Japan. Build-to-order demanded flexible manufacturing systems that allowed switching from one model to another with ease...

The Global Body Shop
In the early 2000s, Toyota began to integrate its assembly plants around the world to save both time and money. Toyota realized it had to leverage its global manufacturing network to build a wide variety of models at a much lower cost...

Product Innovations

Although Toyota had long been recognized as the most efficient auto manufacturer, its engineering-dominated culture had put limits on the creativity of its car designs. Enthusiasts felt that despite their vaunted efficiency, Toyota's cars and trucks did not have a soul...

The Road Ahead

Despite its various attempts to innovate, many analysts believed that Toyota remained at heart a conservative, deliberative and centralized company. Although it was gradually pushing responsibility down to regional operations, it still controlled major functions--engineering, design, manufacturing, purchasing, and sales and marketing--from Japan...

Exhibits

Exhibit 3: Cost Reduction Efforts
Exhibit 4: Vehicle Production overseas Exhibit 5: Vehicle Sales and Market share in Japan
Exhibit 6: Consolidated Number of Employees
Exhibit 7: Use of Recyclable Materials (in the new Raum)
Exhibit 8: Consolidated Vehicle Production and Sales
Exhibit 9: Financial Highlights

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