Controlling represents a very important function of management. Necessary at all levels and all aspects of the organization, controls should be applied to organizational design, planning, employee performance, etc., among many other functions. Level-wise, controls should be part of headquarters, of division, or departments.
Lack of control can lead to costly delays or financial losses, among others.
Toyota is a well known Japanese car manufacturer, well known for its quality, until relatively recently. Toyota has been in the news recently for quality problems
It has recalled millions of 2009-2010 Corollas, Camrys, Avalons, and more recently, even Priuses.
For this case study, we will read two articles about Toyota and analyze how its growth, with no apparent controls (such as structures, and implicitly strong quality controls0) may have lead to quality problems (among others).
But this case illustrates the importance of the controlling function.
Please read the following articles about Toyota cost-cutting and the interview with the CEO (few years back).
Case Assignment Expectations
Write a 3 page paper, answering the following question:
Has controlling and cost-cutting contributed to Toyota recent massive recalls?
Anonymous (2005). The Man Driving Toyota. Business Week (Online). New York: July 22, 2005. pg., retrieved onNovember 10, 2010 at:
Rowley, I. (2009). Toyota’s Cost-Cutting Drive: Making the Tough Choices. Business Week (online). New York: January 29, 2009. Retrieved on November 10, 2010 at:
• Please first read in-depth the Background Materials.
• Identify key concepts (main aspects of controlling, make a list of them, and study them.
• Read Business Week articles in-depth and conduct additional research, if necessary.
• Identify facts in the case that match concepts of controlling (organizational structure (or lack of them), decision-making, financial controls (cost-cutting) operating standards, culture).
• Apply these concepts to facts in the case in order to develop your arguments.
• Please also visit the company website and conduct further research.
Toyota has grown dramatically and (as per article) it does not seem to have developed structures. It has also followed cost-cutting strategies, which are financial controls.
In order to develop good business communication skills, it is recommended you write papers using the following structure, using headlines and titles.
Introduction (road map, explain main issue and list and main points)
Main Body: Develop each point in the Introduction, applying theory to facts, in subsections (one subsection per main point).
In this case, subsections of causes of recalls and a subsection of general discussion and analysis.
Conclusions: Summarize main paper points
List of references.
Citing your Sources:
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