An analysis of Toyota’s mission, Vision and Guiding Principles
- Toyota Mission and Vision Analysis
The Toyota Motor Co. was established in the year 1937. The company celebrated its 75th anniversary in 2012. Its mission and vision statement which it calls its global vision shows its commitment to innovation. The motor vehicles brand has seen a lot of growth and expansion since its establishment around 80 years ago. Today it is a global company with a strong brand image and great financial performance. Not very long ago, it grabbed the position of number one motor vehicles producer. The company has diversified into a number of areas apart from motor vehicles. Its other businesses include financial services, industrial vehicles, IT businesses, Housing etc. Apart from it, Toyota has also shown strong commitment to sustainability and human resources. Today, its market is spread to several parts of the world and the brand is known for its technology and attractive models. Its vision statement talks of several important points including technology, passenger safety, innovation, design, environmental responsibility and other factors. Its global vision is not just a vision statement but includes both the vision and mission statement.
Toyota Global Vision
Toyota will lead the way to the future of mobility,
enriching lives around the world with the
safest and most responsible ways of moving people. Through our commitment to quality, constant innovation
and respect for the planet, we aim to exceed expectations
and be rewarded with a smile. We will meet our challenging goals by engaging the talent and passion of people, who believe there is always a better way.
The first line of the vision statement states that the company aims to become the future leader in the motor vehicles industry. A vision expresses the expected future position of a brand. After that the focus of the vision statement is on Toyota’s customers around the world and that their safety is an important concern for Toyota. The vision statement also explains Toyota’s commitment to innovation, quality standards and environmental responsibility. The last part is about the organization’s workforce. It shows that the company believes in hiring talented and passionate people who believe in innovation.
Thus, the main factors included in its vision statement are:
- Future leadership in motors vehicles industry.
- Passenger safety
- Innovation and quality standards
- Environmental protection
- Talented workforce
However, with regards to its vision for the brand’s future, Toyota has stated its vision in a somewhat generic statement. It is about being the future leader in mobility. Mobility has undergone a major change in recent years and is expected to change faster in near future. Apart from the growing demand of cars worldwide, people are looking for smarter, fuel efficient transport options that are also safer.
Toyota’s vision statement could be more specific and explain how the company is working to achieve the anticipated future. In the context of its market and market position also, the vision statement does not speak clearly except that Toyota is committed to the safety of its passengers and that it serves a global market. A good mission and vision statement must be more specific to guide everyday decision making and resource allocation inside the organization. In most areas that Toyota talks of in its global vision, its statements are simple and generic. It does not mention the brand’s financial position, competition or how it is concerned about creating value for stakeholders in the long term.
The vision shows a strategic direction but every company aims to become a leader in its industry. At some points it includes the environmental concerns such as “…. respect for the planet, we aim to exceed expectations and be rewarded with a smile”. Most big brands are committed to environmental protection and Toyota’s vision does not state how its actions are helping improve the environment. One can understand that by saying respect for the planet, Toyota means that it is going to reduce its emissions and carbon footprint. However, Toyota can make its statement about its environmental contributions more specific by showing how its actions and investments add value to the environment and the society.
Guiding principles at Toyota:
Toyota has also adopted some guiding principles that guide its style of business and commitment to the improvement of the world.
- First important principle of the Toyota is to respect the laws of every nation. It strives to be a good corporate citizen by complying with relevant laws in the markets where it operates.
- Respecting the language, culture and customs of all the nations it serves.
- Providing environmentally safe products that make life better and easier for people.
- Focus on advanced technologies and innovation that are outstanding at fulfilling the customers’ needs globally.
- Focus on creativity, trust, teamwork and better relationships in its corporate culture. Establishing trust and respect between the workers and the management.
- Achieving financial and operational growth through harmony and innovative management practices.
- Establishing mutually beneficial partnerships for the long term benefit of the brand and its partners.