Culture on Toyota Essay

4128 Words Jan 8th, 2013 17 Pages
Corporate Culture Analysis of Toyota Case study Analysis By Mithila Saranapala


This case study analyses the corporate culture of Toyota by using two theories and then analyze the national cultures of Japan and USA by using two theories and its impact on the corporate culture of Toyota. The models of “Edgar Schein” and “Charles Handy” will be used to analyze the corporate culture of Toyota while the models of “Greet Hofstede” and “Fons Trompenaars” will be used to analyze the national cultures. Afterwards the case study will discuss the climate of Toyota and the impact of the same to its success. Also the case study will analyze the reasons as to why the Toyota Company had to face failures and whether the
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Communitarianism is about the rights of the group or society. It seeks to put the family, group, company and country before the individual. It sees individualism as selfish and short-sighted. It is clearly proven that Japanese works as groups and all team members and senior managers altogether will decide together on many strategies.
Inner-directed vs. Outer-directed (“Do we control our environment or work with it?”) - An inner-directed culture assumes that thinking is the most powerful tool and that considered ideas and intuitive approaches are the best way. An Outer-directed culture assumes that we live in the 'real world' and that is where we should look for our information and decisions. The Japanese culture had strong beliefs on thinking power. Even at Toyota they created their own environment through introducing TPS and Toyota way.

3.4.2. National culture according to Greet Hofstede’s model
National cultures can be described according to the analysis of Geert Hofstede. It has five dimensions –• Power Distance, • Individualism, • Masculinity, • Uncertainty Avoidance, • Long-Term Orientation. Japanese national culture had a huge influence in corporate culture of Toyota even though they had their operations stretched towards the other parts of the world.
Power Distance - By means which you could understand “the extent to which the less powerful members of institutions and organizations within a country expect and accept that power is distributed

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