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Organization Presentation

Running Head: ALIGNING OPERATIONAL NEEDS WITH BUSINESS STRATEGIES 1

ALIGNING OPERATIONAL NEEDS WITH BUSINESS STRATEGIES 4

ALIGNING OPERATIONAL NEEDS WITH BUSINESS STRATEGIES

David Leonard

University of Phoenix



28 August 2021

An analysis of the company based on Porter’s Five Forces:

Toyota has to face strong competition because the number of competitors in the automobile industry has increased. Automobile industries are aggressive and are in a race with each other to innovate and market the products. The bargaining power of buyers has a significant impact on the company’s revenues. The low switch costs, high-quality material, and high information directly impact the bargaining power of customers. The bargaining power of suppliers is a weak power to influence the performance of the company. The threat of substitutes is one of the moderate forces to affect the company’s performance. The threat of new entrants is a weak force because there are fewer chances of new entry (Toyota, 2019).

An analysis on the effectiveness of the leadership model the company is currently using:

The leadership model is based on the teamwork, collaboration, and opinions of all the employees working in the company. The customers and employees are the company’s priority, and the leaders know that they have to be within limits and cooperate with the employees. It is seen that the company only appoints leaders who know how to lead the employees and how to engage them in work. The model is quite good, and it is seen that the model enables the company to succeed.

Current leadership style or styles in place at the company:

Toyota is based on a transactional leadership style, and all the leaders and employees have to follow accordingly. The transactional model has been implemented since the start. It has been seen that the leadership model has been the effective one. It has enabled the company to make the best decisions for both employees and customers. It has always shown assistance and cooperation with the suppliers and operational managers. It has been seen that the model has created cooperation and coordination among the employees, and they work like a team. It has been the reason for success for years.

Effectiveness of the leadership style/s and alternative style of leadership:

There are different styles of leadership, and all of them have different advantages and disadvantages. Transactional leadership is one of the effective leadership styles, and it has created a strong bond between the employees and leaders. The customers are the company’s great strength, and it has always tried to use a transactional leadership style to generate great revenues and meet customers’ expectations. It has been seen that there is short-term planning in transactional leadership, so transformational leadership is the most effective one, so it should be used in the company.

Effective leadership and leader:

Effective leadership is one where there is cooperation and coordination between the employees and leaders. The leadership should focus on the mission and shared vision of the company and should consider everyone as an important part of the company. Different traits make a leader effective. The leader should know their responsibilities pretty well, and he should assign the responsibilities and capabilities accordingly. It has been seen that the leaders should not look at the employees but try to engage them in the decision-making process. There should be effective communication between the employees and leaders so things may be smooth.

Sources of managerial power when leaders are effective:

If the leaders are effective and there is a good coordination bond between the leaders and employees, then the reward and legitimate powers are at the top. The reward power allows the leaders to introduce the bonus, extra salaries, promotions and the appreciation compensations for the employees. It has been seen that legitimate power enables the employees and leaders to have good coordination. They have friendly relationships and a cordial working bond that leads the company to success. It has been observed that both sources are effective and make the leadership influential for the employees (Toyota, 2020).

Recommendation for the following actions

Leadership model changes:

The leadership model that is in current use should be transformational instead of transactional because it has long-term planning. It is recommended that the weak point of the current model should be analyzed. If there is a need to introduce the changes, it should be done accordingly. Otherwise, the whole model should be changed. It has been seen that the leaders should communicate with the employees and discuss how the changes can be effective and what can be the effective outcomes of changing the model. All these recommendations should be considered before changing the leadership model (Aichi, 2019).

Actions needed to align operational needs with business strategies:

There are different actions needed to align with business strategies identified in week 1, and these are as follows. First, the trends and models should be updated, and the customer’s needs should be fulfilled. It should be noted that the operational needs can be aligned if there is long-term planning. Moreover, it is seen that effective communication between the employees and leadership can enhance the business strategies identified in week 1. The employees are the company’s strength, and there are fewer chances of success for the company. These actions should be taken seriously by company management.

References

Aichi. (2019). Toyota Motor Corporation – Company Profile, Information, Business Description, History, Background Information on Toyota Motor Corporation. Retrieved from https://www.referenceforbusiness.com/history2/63/Toyota-Motor-Corporation.html

Toyota. (2019). Toyota Industry Cooperation. Retrieved from https://www.toyota-industries.com/

Toyota. (2020). Toyota Global Company. Retrieved from https://global.toyota/en/