Toyota faced difficulties in the late 1940s after World War 2, including higher material costs, labor disputes, and declining financial results. In response, Kiichiro Toyota resigned as CEO and implemented a three-point strategy: offering retirement to workers, reducing wages, and restructuring the personnel system. Toyota also partnered with Ford Motors and learned from their manufacturing techniques. During the Korean War in 1950, demand for Toyota's trucks from the military helped boost sales and recovery for the company. Toyota overhauled its facilities by examining efficiency, demolishing outdated buildings, and adopting new technologies to enhance productivity.

1. Marketing Case #40

2. Overview of Industry
Even it were, highly global brand, required to sustain
their position on rapidly changing the trend.
Sometimes to invent originally managements system,
others, innovation, like Apple or Google.
Manufacturing core value obsessing to their inherit
status, back to Japanese step, it accelerated after
the World War Ⅱ, once ceased, and it simulate ours
to bring prosperity.
Toyota Story11
As soon as modernization surging to our citizens, automobile is not only
for designated people, but to the publicities. People would hope to
possess, high class model, showing off their own status, other times, it
working for business alternate to another options for riding. We can see
tremendously Japanese growth, as well as automobile industries went
through.

3. Labor dispute
Even regulated on the sales process, it worse of their business
outcome. Because of higher price on their material, in spite of striving,
Toyota made a big loss on the accounts for 4 and half months. Labor
Union was opposite of this status, moreover dispute was occurred on
this turmoil for arrangement.
Company
We hope…

4. Burn Toyota’s bridge
On this turmoil, more and more deteriorating of result, Kiichiro Toyota
resigned the role of CEO, and determined to carry out 3 strategy. First,
admit the retirement, if they hope, Second, reducing the wages, Third,
renovating personal assignment system.
Admit
Retirement
Reduce WageNew Assignment

5. New alliance
As soon as settled on the dispute, Toyota tried to cooperate with Ford
Motors beyond the seas. It seemingly to be hard to whole agreed on
the Korean War, but partially Ford allowed to welcome trainee from
Toyota. They learned of the distinctive material goodness, the same
time, disadvantageous of national makers.
US
Good material
Learn it

6. Special Procurement of War
The Korean War had started on 1950, to provide the sufficient military
reinforcement, Toyota produced the truck for this momentum. Growing
demands pushed up of their sales, and broadened contributed to their
recovery. Special demand added their fundamental for regain.
Korean War

7. Renovation of Facilities
Scrutinized into whole facilities, examined their effectiveness,
determined it to be continuously operating or demolish. To reinforce,
and paving the circumstances for improving productivity, on that time,
adapted up-to-date technologies into their line.
AC
B
New System