Both General Motors Company (GM) and Toyota Motors Corporation are global automotive companies. GM develops, produces and markets cars, trucks and parts worldwide. Toyota is a Japan-based company specialized in the automobile business and financial business. Although both corporations operate on similar fronts their vision, mission and social responsibility have some distinctive characteristics but they are both aimed at claiming a share in the competitive automobile market. Comparison: General Motors and Toyota Motors Corporations.
General Motors Mission Statement:
“G.M. is a multinational corporation engaged in socially responsible operations, worldwide. It is dedicated to provide products and services of such quality that our customers will receive superior value while our employees and business partners will share in our success and our stock-holders will receive a sustained superior return on their investment.”
Toyota Mission statement:
“To sustain profitable growth by providing the best customer experience and dealer support”
The two missions respond to the competitive environment that the automobile industry is facing. The mission statements of the two corporations are strong since they focus more on customer satisfaction. Since the level of competition in the automobile industry is pegged on customer satisfaction, aiming to satisfy the customer is must mission in this competitive era. In addition the mission seeks to address the threats posed by competitors (Brian, 2011). Since both of the corporations are competitor in the same industry they must aim at producing quality products that are consumer friendly. Comparison: General Motors and Toyota Motors Corporations.
Their missions’ statement defines the organizations and can be used to draw a strategic plan. The mission statements are clear that the organization want to produce quality products that will satisfy the customers. Any strategic plan therefore will be aimed at fulfilling this mission. In addition the two missions recognize the role of the dealers who are important in completing the distribution chain. Comparison: General Motors and Toyota Motors Corporations.
However, the GM fails mission statement fails to focus on the main purpose of business existence which is profitability. The mission is only mentioned in the board of governor who categorically state that their mission is to represent the owner’s interest in perpetuating a successive business, which includes optimizing its long-term financial returns (gm.com). GM should ensure that profitability is also a rallying slogan even to junior employees. Comparison: General Motors and Toyota Motors Corporations.
The qualities of the mission statement can be tested by their core values, core purpose and the overall goal. For the GM, the core value is superior products and its purpose is producing products that meet customer satisfaction. All this production must be done in a responsible way. The goal is to achieve customer satisfaction that will in return increase sales. The core value of the Toyota is producing products that provide the best customer experience (gm.com, Toyota.com). In return, customer satisfaction will enable Toyota achieve its mission of maintain profitability by increased sales. The whole of the mission statement by Toyota indicates the goals that it want to achieve. Comparison: General Motors and Toyota Motors Corporations.
The vision of the two corporations also directs the competitive direction the two corporations are engaged in. GM states its Vision as to “design, build and sell the world’s best vehicles” (gm.com). On the other hand Toyotas vision is to “lead the way to the future of mobility, enriching lives around the world with the safest and the most responsible way 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” (Toyota .com). The two visions indicate the core values of the corporations, their core purpose and their visionary goals. No wonder both corporations are always neck-to-neck in car manufacturing. The vision by these companies shows the reason why the companies exist and their core ideologies. Comparison: General Motors and Toyota Motors Corporations.
In real world the vision of the general motors appears to be aimed at attacking it main competitor, Toyota, which has been accused of producing cheap cars that do not meet the quality that customers are yearning for. By stating that its vision is to design, build and sell the world’s best vehicles GM aims at positioning itself as the company that is premised on quality. The vision, which is new according to its website, as aimed at capturing the lost ground of being the number one car manufacturer. GM goes further to reinforce this vision by stating that it has adopted a new business model that is aimed at delivering results (GM.com). Comparison: General Motors and Toyota Motors Corporations.
Toyota’s Social responsibility
Toyota is committed to be in the forefront in maintaining a “sustainable development of the society and the earth” (Toyota.com). Toyota CSR policy is aimed at making it an admirable company in all regions it operates. Social responsibility at Toyota is guided by policy paper entitled “CSR POLICY: Contribution towards Sustainable Development”. One of the ways that Toyota seeks to ensure social responsibility is through its manufacture and innovation of quality products and services that will ensure sustainable development. Comparison: General Motors and Toyota Motors Corporations.
In 2005, Toyota announced a remarkable contribution towards social responsibility when it announced a business approach that would take into consideration all stakeholders interest. In its social responsibility, Toyota seeks to manufacture cars that are in harmony with the environment and also promote the entire societal interest in all regions it operates. Toyota is also a law observant company where it observes all local national and international laws. Comparison: General Motors and Toyota Motors Corporations.
Toyota is committed to manufacturing vehicles that are environmental friendly. It believes that all business operations should be in tandem with accepted enironemental measures. To the community Toyota maintains a general respect for the people by honoring their culture, customs history and laws of the country. It is also committed to social contribution. Through social contribution Toyota is aimed at strengthening communities and contributing to the enrichment of the society. In addition all Toyota employees are supposed to adhere to the corporation ethics whenever they are executing their duties. Comparison: General Motors and Toyota Motors Corporations.
By participating in social responsibility Toyota has managed to endear itself to its customers. Corporate social responsibility is a key marketing toll in this competitive environment. Beside, by contributing to social environment development, Toyota is line with fulfilling it vision of investing back to the community and satisfying all its stakeholders. Its corporate social responsibility can be counted among the factors that have made Toyota maintain a leading position in car manufacturing. Comparison: General Motors and Toyota Motors Corporations.
SWOT analysis of Toyota Motor Corporation.
- Huge global presence in more than 170 countries worldwide.
- Industry leader in manufacturing and production. In this way, Toyota can utilize its economy of scale to produce vehicles that are slightly cheap in the market.
- Have great recognition in some of the key markets like US, China, EMEA and have overtaken GM to become the world number one car manufacturer (New York Times).
- Strong brand equity that is recognized worldwide.
- Varieties of choices ranging from Lexus, Diahatsu, Hino and many others that raise the customer base. Comparison: General Motors and Toyota Motors Corporations.
- The high concentration production in US and Japan means that Toyota may lose out to toher manufacturers who are relocating closer to market (Toyota. Com).
- Failure to notice the mechanical flaw that resulted to the 2009 recall gives credibility to critcs.
- The 2007/2009 economic slump resulted to a loss amounting to $4.2 billion. This affected the income of the company that resulted to a cut in production.
- The earthquake crisis affected production. Comparison: General Motors and Toyota Motors Corporations.
- Producing cars that are fuel efficient, meets the task and have little impact to the environment.
- Global expansions in emerging market such as china, India and Russia have great potentials for growth (Just-auto, 2011).
- Growing demand for hybrid electric vehicles
- The urban youth market. The new Aygo model that incorporates youth components like nature of dance and DJ culture in very competitive segment. The Aygo is endearing to the urban youth.
- Innovation. To develop cars that meets the social and institutions needs and wants. Comparison: General Motors and Toyota Motors Corporations.
- The 2009 recall that was intended to fix a design flaw that could cause the gas pedal to be trapped under the flaw mat. The world worldwide recall puts some doubt into the quality of Toyota products. Since the recall, the company has been at pains to show that it is above quality crisis (Just-auto (2011). Comparison: General Motors and Toyota Motors Corporations.
- Disruption by the March 11 earthquake and tsunami. The earthquake destabilized nuclear plants that forced Toyota to stop operation in affected production plants (New York Times).
- Competition from car rivalries. Being at the top of car manufacturing attracts unprecedented rivalry. The competitors such as the GM and Ford are position to reclaim their lost glory.
- Car manufacturing in emerging market such as china and South Korea, previously reserves of Toyota cars means that Toyota may lose a portion of its market share. Comparison: General Motors and Toyota Motors Corporations.
Brian, B. (2011). Mission expert: Creating effective mission and vision statement. New York: Gloven.com.
General Motors Investors Website. Retrieved from: http://investor.gm.com/#.html?evar10=gmcom_investors.html
Just-auto (2011). Toyota Motor Corporation-SWOT analysis. Tokyo: MarketLine.
The New York Times, Business Day, (November 2, 2011). Toyota Motor Corporation. Retrieved from http://topics.nytimes.com/top/news/business/companies/toyota_motor_corporation/index.html
Toyota Investors Website. Retrieved from: http://www.toyota-global.com/investors/. Comparison: General Motors and Toyota Motors Corporations.