SUBMITTED BY:-

SANDEEP SHARMA
ENROLLMENT NO.-6010311804390
HBR CODE -5160407
 Introduction

Normally every company have two main innovations which are very useful and represent necessity to
keep track with any change or new situations. These innovations are namely called 'hard' innovation
which allows the company to keep improving the way it manufactures vehicles and a 'soft' innovation
which relates to corporate culture.

There are some major contradictions?

•Toyota moves slowly, yet it takes big leaps.

•Toyota grows steadily, yet it is a paranoid company.

•Toyota's operations are efficient, yet it uses employee's time in seemingly wasteful ways.

•Toyota insists internal communications be simple, yet it builds complex social networks. Example:
simple A3 reports for displaying data and projects, yet company-sponsored clubs for every
conceivable social niche.

•Toyota has a strict hierarchy, but it gives employees the power to push back. Example: employees
believe they add value by giving bosses constructive criticism. More on this later.
 Forces of Expansion

 Setting impossible goals. E.g In 1937, the founder, Kiichiro Toyoda,

wanted to produce automobiles in Japan without using technology from other
countries

 Experimentation. Toyota organizes experiments using strict routines, as is

widely known. It has refined Plan-Do-Check-Act (PDCA), the continuous
improvement process used throughout the business world, into the Toyota
Business Practices (TBP) process.
 Forces of
integration

 Preserving the values of the founders

The next day will be a better day
Everybody should win
Customers first, dealers second, manufacturing third

Open and free communication

Disseminate knowledge laterally

Give people the freedom to voice contrary opinions
Frequent face-to-face interactions
Create support mechanisms
Create healthier environment
 Strength of Toyota
Executives.

■ Willingness to listen and learn from others

■ Enthusiasm for constantly making improvements

■ Comfort with working in teams

■ Ability to take action quickly to solve a problem

■ Interest in coaching other Employees

■ Modesty
 Conclusion

Finally Toyota isn’t about copying any one practice; it’s about creating a
culture. That takes time.
• First, companies have no choice but to embrace contradictions as a way of
life. Most enterprises stop growing because they stick to processes and
practices their past successes have generated. Companies can overcome
them by trying to reach new markets or by tackling fresh challenges.

• Second, companies must develop routines to resolve contradictions. Toyota

uses numerous tools such as the Plan-Do-Check-Act model, the eight-step
Toyota Business Practices process.

• Third, companies must encourage employees to voice contrary opinions.