Managed Change at Toyota Australia Case Study Example | Topics and Well Written Essays - 2000 words

Managed Change at Toyota Australia - Case Study Example What we assumed was a temporary circumstance has  turned into a permanent situation. This drop of 36% in just four years shows the scale of our  challenges.† (Toyota Motor Corporation Australia 2012) As Mr. Yasuda notes, business is down and the trend is not temporary, but has been in process for the past four years. Export volumes are down, and not only that, the competitiveness of Australian-made Toyota vehicles is also noted to be down. The Australian currency's strength has likewise negatively impacted the volumes, because of the higher prices owing to the improved currency valuation versus other currencies. This makes Toyota in Australia less competitive in terms of cost too, in comparison to other markets and other production locations in the world (Toyota Motor Corporation Australia 2012). As of the time of the announcement, Mr. Yasuda also noted that the changes that were being made in the Toyota operations in Australia were geared for the long term, and towards mak ing Toyota Australia competitive under the changed operating condition and market conditions in the world. Those market changes are long-term, and so must the changes. The workforce is to undergo adjustment to align it with the company's long-term plans, and that adjustment may mean re-training and reorganizing the workforce. That can also include renegotiating wages and working arrangements as well. Sourcing for parts is to be optimized for cost and efficiency. Efficiency gains are to be a primary goal. As well the overall cost structure of the manufacturing facilities and the entire operations is to be optimized (Toyota Motor Corporation Australia 2012; Beissman 2012; Beissman 2012 (b)). That said, it is to be noted that Toyota in... The company basically made use of fundamental change management tools centering on communication and in the explanation of the fundamental reasons for the change. There is, first of all, the use of systematic modes of managing the personnel side of the change, via planned layoffs that reflect the changed fundamentals of the company's financial viability. As well the company communicated and validated how the external market conditions necessitated such personnel change. The literature calls this making a formal case out of the planned changes. No doubt with the fact that Toyota Australia is not alone in facing difficulties in the domestic and international markets, and the fact that government itself had acknowledged the changed and difficult market conditions, made it easy for Toyota Australia to make the formal case for change. The formal case made by the CEO is one that is also a solid business case. There are good business reasons for the changes, in other words, and that was the message and the formal case that made it easier for Toyota Australia to sell the idea of the planned changes not only to employees but to the market in general.