1 STRATEGIC GROUPING FOR TOYOTA CORPORATION 1 Milestone 3: Strategic Divisional Operations for Toyota Corporation Richard K. Hairston GM543.01 Organizational Diagnosis and Design 12/18/17 Professor Dr. Rebecca Herman Introduction The Toyota Strategic grouping provides an analysis to understand better the strategy employed within the company. This makes it easy for strategists to understand the industry better in which they operate in. in addition to that, it helps in the identification of any gaps or areas where a shift in the strategy could help in building rewards (Drejer, 2002). The rewards can be built through capitalizing on an opportunity in a less crowded market. Toyota Corporation can have different business segments catering to different markets. Strategic groups can be varying in an industry such that big businesses may have a much higher bargaining power than the small businesses. Operating model Team Divisional model Toyota should use a team divisional design. This structure uses teams as the main element of coordinating work operations (Pearson, 2003). The Company depends entirely on the abilities, skills, employee relations, consistent services, and decisions that are made by key staff members and the management team. Besides, for the organization to attain its objectives will heavily rely on its capability to recognize, recruit, prepare, and maintain the highly qualified workforce. This process includes competing with other firms in the industry for the skillfully talented individuals, and the corporation may be at a risk of losing key employees or be unsuccessful in attracting, recruiting, training and maintaining a gifted workforce that meets the organization’s needs. Hence, it may bring adverse impacts on the operations, sales, and financial condition of the company. Analysis Virtual team members and virtual workplaces have substantially changed the way tasks are carried out in various organizations around the globe. Bigger, as well as small organizations are developing virtual teams, which operate slightly in most cases distance away from one another (Pearson, 2003). Virtual employees and workplaces have affected the global job performance in the following ways. Virtual workplaces that are operated by organizations do not have to budget for office expenses for their employees. Overhead costs such as leasing of office space, utility expenses, and furniture purchases are not considered for organizations that have developed virtual workplaces and staff. Similarly, if the organization has an operational office, it can operate with fewer employees who will require a small office space for the activities of the organization. Decisional analysis The structure of an organization defines the way job tasks are initially grouped, divided and coordinated. There are six major elements that determine how managers design and establish their management structures. The elements include work specialization, depart ...

1. 1
STRATEGIC GROUPING FOR TOYOTA CORPORATION
1
Milestone 3: Strategic Divisional Operations for Toyota
Corporation
Richard K. Hairston
GM543.01
Organizational Diagnosis and Design
12/18/17
Professor
Dr. Rebecca Herman
Introduction
The Toyota Strategic grouping provides an analysis to
understand better the strategy employed within the company.
This makes it easy for strategists to understand the industry
better in which they operate in. in addition to that, it helps in
the identification of any gaps or areas where a shift in the
strategy could help in building rewards (Drejer, 2002). The
rewards can be built through capitalizing on an opportunity in a
less crowded market. Toyota Corporation can have different
business segments catering to different markets. Strategic
groups can be varying in an industry such that big businesses
may have a much higher bargaining power than the small
businesses.

2. Operating model
Team Divisional model
Toyota should use a team divisional design. This structure uses
teams as the main element of coordinating work operations
(Pearson, 2003). The Company depends entirely on the abilities,
skills, employee relations, consistent services, and decisions
that are made by key staff members and the management team.
Besides, for the organization to attain its objectives will heavily
rely on its capability to recognize, recruit, prepare, and
maintain the highly qualified workforce. This process includes
competing with other firms in the industry for the skillfully
talented individuals, and the corporation may be at a risk of
losing key employees or be unsuccessful in attracting,
recruiting, training and maintaining a gifted workforce that
meets the organization’s needs. Hence, it may bring adverse
impacts on the operations, sales, and financial condition of the
company.
Analysis
Virtual team members and virtual workplaces have substantially
changed the way tasks are carried out in various organizations
around the globe. Bigger, as well as small organizations are
developing virtual teams, which operate slightly in most cases
distance away from one another (Pearson, 2003). Virtual
employees and workplaces have affected the global job
performance in the following ways. Virtual workplaces that are
operated by organizations do not have to budget for office
expenses for their employees. Overhead costs such as leasing of
office space, utility expenses, and furniture purchases are not
considered for organizations that have developed virtual
workplaces and staff. Similarly, if the organization has an
operational office, it can operate with fewer employees who
will require a small office space for the activities of the

3. organization.
Decisional analysis
The structure of an organization defines the way job tasks are
initially grouped, divided and coordinated. There are six major
elements that determine how managers design and establish
their management structures. The elements include work
specialization, departmentalization, the chain of command,
decentralization and decentralization as well as the span of
control.
Work specialization
This is the degree or level to which organizational tasks are
divided into different tasks. The early assembly plants and
division of labor are the main examples. The conveyor belt that
enhanced the coordination of diverse labor products into one
major final good complemented these. Hence, this resulted to
large group of unskilled workers who were different from the
initial group that was easily replaceable.
Departmentalization
This is the basis of collectively grouping jobs. Some of the
most common methods of conducting these are by the function
and it includes marketing, manufacturing as well as the
geography, types of product and territories. This function is
important in controlling the entire company structure (Kesler &
Kates, 2010).
Chain of command
This is the unbroken authority line that extends from the top
management level of the organization to the lowest echelon that
identifies who reports to who. This is basically bureaucracy.

4. Span of Control
This includes the number of subordinates that a manager can
effectively and efficiently direct. It includes the combined
characters of people, groups, as well as the process of
organizational management.While managers are responsible for
ensuring that the needs of the organization are met, organization
ensures that the leaders are responsible for activating a positive
atmosphere as well as the welfare of employees within the
organization.
Centralization and Decentralization
This refers to the degree to which the process of decision
making is concentrated at a single point in the firm.
Decentralization on the other hand is when the decision
discretion is pushed down to the lower level (Drejer, 2002).
There is a vital board of administration that manages the
decentralization, market oriented and differentiated multi-
divisional system and involves long term planning of the
organization’s activities.
Recommendation
Processes in the company should be formalized. This includes
the degree upon which jobs within the firm are standardized.
Organizational human resource management is viewed to be a
vital asset that requires being effectively and appropriately
handled to be able to optimize returns from these assets (Drejer,
2002).
Conclusion
The best choice that is more important is the customer.
Due to competition in the market, customers will help the

5. company to do away with its competitors and gain a competitive
advantage. It is important to note that prospective customers do
not look for products or services. Therefore, the company
should ensure that it acquires loyal customers. A company
cannot operate with customers and therefore, I think that it is
important for Toyota Corporation to value its customers so as to
make more profit and have a competitive advantage in the
market.
References
Drejer, A. (2002). Strategic management and core competencies
: theory and application. Westport, Conn: Quorum Books.
Kesler, G., & Kates, A. (2010). Leading organization design:
How to make organization design decisions to drive the results
you want. John Wiley & Sons.
Pearson, C. (2003). Archetypes in organizational settings: a
client's guide to OTCI professional report. Center for
Applications of.
Milestone 4: Company Name
Name
GM543.01
Organizational Diagnosis and Design
DATE

6. Professor
Dr. Rebecca Herman
Introduction
Criteria: Transition from the Unit 3 Focus Paper by using a 1–2
paragraph summary of your recommendations for integration as
the Introduction for this paper. [5 points]
Talent and Leadership
Top Level Reporting Structure
Criteria: Selection of the top-level reporting structure for your
selected organization based on the organization’s design
criteria. Provide rationale for your choice. Include a high-level
organization chart. [10 points]
Note: Be sure you “select and provide rationale” for what you
would determine to be the best option for top-level reporting
structure. You should be “designing” more than reporting. [see
pp. 172-174, Figures 11.1-11.3] Don’t forget the high-level
organization chart.
Executive Team
Criteria 1: Application of the four governance levers (beliefs,

7. networks, boundaries, and diagnostics) to analyze potential
roles for the executive team. [8 points]
Criteria 2: Based on this analysis, provide a recommendation
along the continuum of highly operational to visionary,
relationship oriented for your organization. [8 points]
Note: See p. 186-187 for ideas on applying the governance
levers and the continuum of roles (Fig 11.6).
‘]
Talent Pivot Points
Criteria: Identification of the talent pivot points in your
selected organization. [10 points]
Note: Ensure you truly nail the talent pivot points and provide
rationale [see p. 192, Figure 12.1 for examples]
Recommendations for Leadership Development
Criteria: Recommendations for experience exposure that is
high-value and creates opportunities for people who have
potential to make substantial upward moves. [8 points]
Note: What is the plan to grow leaders? (see Ch 12, p. 196-198).
Conclusion
Criteria: Conclusion should briefly summarize the primary
points of the paper and recommend a call to action. [5 points]

8. References
Criteria: Integration of appropriate outside resources –
including in-text citations throughout with a corresponding item
on reference list. A minimum of three resources required. At
least one resource must be from a peer reviewed (scholarly)
journal. [10 points]
Unit 4 = Milestone 4 Focus Paper
Official Rubric with Additional Guidelines for Success
Recommended ORDER for paper:
· Introduction
· Top Level Reporting Structure
· Executive Team
· Talent Pivot Points
· Recommendations for Leadership Development
· Conclusion
Grading Criteria
Points Possible
Notes
Content, focus, use of research, organization
· Response successfully answers the Assignment question(s);
thoroughly uses the text and other literature. Includes a strong
thesis statement, introduction, and conclusion. The main points
of the paper are developed clearly. All arguments are supported
well (no errors in logic) using outside sources as assigned.
· Sources are primarily academic journals, with thoughtful use

9. web sources. References are applied substantively to the paper
topic. Skillfully addresses counter-arguments and does not
ignore data contradicting its claim. Refers to sources both in-
text and in the reference page.
40points (50%)
Transition from the Unit 3 Focus Paper by using a 1–2
paragraph summary of your recommendations for integration as
the Introduction for this paper.
5
Selection of the top-level reporting structure for your selected
organization based on the organization’s design criteria.
Provide rationale for your choice. Include a high-level
organization chart.
10
<< Note: Be sure you “select and provide rationale” for what
you would determine to be the best option for top-level
reporting structure. You should be “designing” more than
reporting. [see pp. 172-174, Figures 11.1-11.3] Don’t forget the
high-level organization chart.
Identification of the talent pivot points in your selected
organization
10
<< Note: Ensure you truly nail the talent pivot points and
provide rationale [see p. 192, Figure 12.1 for examples]
Conclusion should briefly summarize the primary points of the
paper and recommend a call to action.
5

10. Integration of appropriate outside resources – including in-text
citations throughout with a corresponding item on reference list.
A minimum of three resources required. At least one resource
must be from a peer reviewed (scholarly) journal.
10
Analysis and critical thinking
· Response exhibits strong higher-order critical thinking and
analysis (e.g., evaluation). Paper shows original thought.
· Analysis includes proper classifications, explanations,
comparisons, and inferences.
· Critical thinking includes appropriate judgments, conclusions,
and assessment based on evaluation and synthesis of
information.
24 points (30%)
Application of the four governance levers (beliefs, networks,
boundaries, and diagnostics) to analyze potential roles for the
executive team.
8
<< Note: See p. 186-187 for ideas on applying the governance
levers and the continuum of roles (Fig 11.6).
Based on this analysis, provide a recommendation along the
continuum of highly operational to visionary, relationship
oriented for your organization.
8
<< Note: See p. 186-187 for ideas on applying the governance
levers and the continuum of roles (Fig 11.6).
Recommendations for experience exposure that is high-value
and creates opportunities for people who have potential to make
substantial upward moves.

11. 8
<< Note: What is the plan to grow leaders? (see Ch 12, p. 196-
198).
Writing style, grammar, APA format
· Appropriate to the Assignment, fresh (interesting to read),
accurate, (no far-fetched, unsupported comments), precise (say
what you mean), and concise (not wordy).
· Grammatical skills are strong with typically less than one
error per page. Project is free of serious errors; grammar,
punctuation, and spelling help to clarify the meaning by
following accepted conventions.
· Project is in 12-point font. Narrative sections are double-
spaced. Correct use of APA for citations and references. Title
page present and accurate.
16 points (20%)
Writing style
5
<< Remain professional – put on your consultant “hat” more
than your academic or employee hat … if you were hired to do
this project – what tone would you use to communicate your
findings?
Grammar and mechanics – including section headings:
Introduction
Top Level Reporting
Executive Team
Talent Pivot Points
Recommendations for Leadership Development
Conclusion
6
<< Don’t make your reader wonder what you are writing about –
clarity is important.
Formatting and use of APA
5
<< Write in complete paragraphs (no bullet lists) unless you are

12. using the tables that are recommended.
Total
80 points
GM543 Unit 4 = Milestone 4 Focus Paper
Grading Criteria Points
Possible
Content, focus, use of research, organization
thoroughly uses the text and other literature. Includes a strong
thesis
statement, introduction, and conclusion. The main points of the
paper are developed clearly. All arguments are supported well
(no
errors in logic) using outside sources as assigned.
, with thoughtful use
web
sources. References are applied substantively to the paper topic.
Skillfully addresses counter-arguments and does not ignore data
contradicting its claim. Refers to sources both in-text and in the
reference page.

13. 40 points
(50%)
Transition from the Unit 3 Focus Paper by using a 1–2
paragraph summary
of your recommendations for integration as the Introduction for
this paper.
5
Selection of the top-level reporting structure for your selected
organization
based on the organization’s design criteria. Provide rationale for
your
choice. Include a high-level organization chart.
10
Identification of the talent pivot points in your selected
organization. 10
Conclusion should briefly summarize the primary points of the
paper and
recommend a call to action.
5
Integration of appropriate outside resources – including in-text
citations
throughout with a corresponding item on reference list. A
minimum of three
resources required. At least one resource must be from a peer-

14. reviewed
(scholarly) journal.
10
Analysis and critical thinking
-order critical thinking and
analysis
(e.g., evaluation). Paper shows original thought.
lanations,
comparisons,
and inferences.
conclusions, and
assessment based on evaluation and synthesis of information.
24 points
(30%)
Application of the four governance levers (beliefs, networks,
boundaries,
and diagnostics) to analyze potential roles for the executive
team.
8

15. Based on this analysis, provide a recommendation along the
continuum of
highly operational to visionary, relationship oriented for your
organization.
8
Recommendations for experience exposure that is high-value
and creates
opportunities for people who have potential to make substantial
upward
moves.
8
Writing style, grammar, APA format
accurate,
(no far-fetched, unsupported comments), precise (say what you
mean), and concise (not wordy).
error per
page. Project is free of serious errors; grammar, punctuation,
and
spelling help to clarify the meaning by following accepted
conventions.
-point font. Narrative sections are double-
spaced.
Correct use of APA for citations and references. Title page

16. present
and accurate.
16 points
(20%)
Writing style 5
Grammar and mechanics – including section headings:
Introduction
Top Level Reporting
Executive Team
Talent Pivot Points
Recommendations for Leadership Development
Conclusion
6
Formatting and use of APA 5
Total 80 points