Toyota’s organizational adaptation is reflected in its reaction to ever dynamic external conditions.
Toyota Way especially the 2001 version reflects the company’s dedication towards continuous
improvement and respect for people. The 1992 and 1997 revisions of the Guiding Principles for
ethical international business showed adaptation by incorporating multicultural aspects. Particularly,
the firm’s capacity to uphold balance in the organization environment despite alterations symbolizes
its focus on adaptation.
Toyota’s response to the 1997 economic crisis in Thailand, proves that it possesses ability to handle
change. In an attempt to mitigate these losses, TMT undertook a number of initiatives that included
job sharing and the training of its personnel in Japan. This “no layoffs” approach in times of economy
crisis illustrates the company’s motivation to keep capable personnel as well as adapt to negative
situations. The 1997 crisis brought out Toyota’s capability of using Kaizen strategy for improving its
competence.
This shows how flexible the company was with regard to structural changes made after the 2009
crisis. With an eye on increased flexibility, companies adopt a decentralized global hierarchy,
geographical divisions or product units’ structure in place of a rigid centralized hierarchical structure.
This reorganizing allows Toyota to do so in a fast, efficient manner which responds to local market
challenges and needs. It does not only signify change among individual companies but also reflects
the importance of flexibility in responding to shifting industry environments.
Sustainability lies at the core of Toyota’s corporate strategy. The company’s Global Vision and the
Toyota Way 2001 are grounded on sustainability as a core principle. However, TOYOTA will go beyond
just complying with the requirements of government regulations, aiming at achieving a net positive
impact on ecosystems and other environmental indicators. Taking it beyond zero environmental
impact, signals future thinking that places Toyota at the frontline of the green movement for cars.