1 STRATEGIC GROUPING FOR TOYOTA CORPORATION Milestone 2: Strategic Grouping for Toyota Corporation Richard K. Hairston GM543.01 Organizational Diagnosis and Design 12/15/17 Professor Dr. Rebecca Herman Introduction Strategic grouping provides an analysis to understand the strategy employed within an industry better. 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. Organizational Archetype Organizational archetype is distinguished by one feature that defines it. There are four types of the organizational archetype. The first type is the simple archetype. Where an organization is more structured like the traditional pyramid. Employees in an organization report to the manager who then reports to the CEO all the way to the top. The second type is the professional bureaucracy archetype. The professionals in the organization who have undergone some type of training are the given the responsibility of making decisions. Companies like financial agencies and regulatory bodies use this type of archetype. The third type is the divisional archetype. As stated above, many small organizations use simple organizational archetype while large organizations use divisional archetype (Kesler, & Kates, 2010). A Simple organizational archetype cannot be applied to larger organizations since each manager is only mandated to manage a small or a limited number of employees. In divisional archetype, the employees in an organization are grouped into divisions. Even though large organizations use this type of archetype, they may end up implementing the same differences as that of smaller organizations. The last type is the flexible archetype. This type of archetype is characterized by lack of formal structure. Such organizations also tend to indulge external influence. Since Toyota Corporation is a large organization, it requires an archetype that will support its size. There are different divisions in Toyota such as the geographic divisions and product-based divisions. It has got 8 geographic divisions and four product-based divisions. Therefore, the archetype that fits Toyota is the divisional archetype. This is because each manager can only manage a limited number of employees due to its size. Therefore, employees are group into divisions that can be easily managed. The managers of the divisions make choices for how the employees in a certain division will undertake activities. Analysis Four Classic Design Options Advantages and Disadvantages ...

1. 1
STRATEGIC GROUPING FOR TOYOTA CORPORATION
Milestone 2: Strategic Grouping for Toyota Corporation
Richard K. Hairston
GM543.01
Organizational Diagnosis and Design
12/15/17
Professor
Dr. Rebecca Herman
Introduction
Strategic grouping provides an analysis to understand the
strategy employed within an industry better. 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.
Organizational Archetype
Organizational archetype is distinguished by one feature that
defines it. There are four types of the organizational archetype.
The first type is the simple archetype. Where an organization is
more structured like the traditional pyramid. Employees in an
organization report to the manager who then reports to the CEO

2. all the way to the top. The second type is the professional
bureaucracy archetype. The professionals in the organization
who have undergone some type of training are the given the
responsibility of making decisions. Companies like financial
agencies and regulatory bodies use this type of archetype. The
third type is the divisional archetype. As stated above, many
small organizations use simple organizational archetype while
large organizations use divisional archetype (Kesler, & Kates,
2010). A Simple organizational archetype cannot be applied to
larger organizations since each manager is only mandated to
manage a small or a limited number of employees. In divisional
archetype, the employees in an organization are grouped into
divisions. Even though large organizations use this type of
archetype, they may end up implementing the same differences
as that of smaller organizations. The last type is the flexible
archetype. This type of archetype is characterized by lack of
formal structure. Such organizations also tend to indulge
external influence.
Since Toyota Corporation is a large organization, it
requires an archetype that will support its size. There are
different divisions in Toyota such as the geographic divisions
and product-based divisions. It has got 8 geographic divisions
and four product-based divisions. Therefore, the archetype that
fits Toyota is the divisional archetype. This is because each
manager can only manage a limited number of employees due to
its size. Therefore, employees are group into divisions that can
be easily managed. The managers of the divisions make choices
for how the employees in a certain division will undertake
activities.
Analysis
Four Classic Design Options
Advantages and Disadvantages of the Classic Design Options
Option
Advantages
Disadvantages

3. Function
Helps in increasing the knowledge sharing of functions and
capacity to create depth and specialization. This will help
Toyota corporation to develop leverage with its suppliers. The
company will also be able to attract and develop experts.
It is difficult to manage a diverse range of products. In addition
to that, it may result to conflicts.
Geography
It helps a company in focusing locally, customization and
relationships with the local government.
It can be challenging to mobilize and share resources on the
regional boundaries.
Product
This will help the company shorten the product development
cycle. In addition to that, it helps in locating the profit and loss
for each product at the division level with the general manager.
It may be hard to recognize when a product should be changed
or dropped.
Customer
Enables the production of value-added products. Promotes
relationship and customer loyalty.
Required an ability to track customer profitability.
Selection of High-Level Design Options
Top Choices for Design Options
Option
Benefits
Risks
1. Product
It promotes and enables “state-of-the-art” research. Therefore,
Toyota company will be able to research on the cars that is
more needed in the market. Such as new design among others.
Despite the fact that it encourages loyalty to product division, it
may make it hard to recognize whether a product should be
changed or if it should be dropped. In addition to that, it can
cause duplication of products.
2. Customer

4. This option makes it easy to add value to the product and
services. In addition to that, makes to customize for customers
through good relationships with them and customer loyalty.
It may cause and poses a danger of duplication of products and
functions. It also requires regular track of the customer
profitability.
Recommendation for Best Grouping Option
The best choice that is more important is the customer.
Due to competition in the market, customers will help the
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.
Conclusion
In conclusion, Toyota Corporation should ensure that it
creates the value of its product and at the same time ensuring
that it promotes customer value. This will help in ensuring that
it promotes customer satisfaction and loyalty.
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.

5. Milestone 3 Case Analysis: Integration for Company Name
Name
GM543.01
Organizational Diagnosis and Design
DATE
Professor
Dr. Rebecca Herman
Introduction
Operating Model

6. [Note: See p. 126, Table 8.1 … this should help you walk
through the process of identifying.]
Analysis
Application of the Governance Levers
See pp. 128-131; Figure 8.2 very useful … remember, yin/yang,
push/pull … what you focus on must relate to your strategy; If
you are DRIVING INNOVATION – your focus (push harder)
will be on Beliefs and Networks; if you are seeking to
NARROW THE FOCUS – your focus will be on Diagnostic
Measures and Boundaries; be sure you discuss HOW you will
emphasize the two that will help with your strategy and possibly
reductions in attention to the others.
Analysis of Decision Rights
Refer to info in Ch 8; Table 8.1 is useful; pp. 131-141 helpful;
the case study in Ch 9 has a useful walk-through of this process
and a summary table (9.1) on p. 152 that may help you organize
your thoughts on this.

7. Recommendations
Ch 10; Figure 10.1 on p. 159 is good example of the Value
Delivery Framework; remember this is about integration more
than control; center-led is a different mindset than centralized.
Conclusion
[Note: Be sure to summarize the main points and be persuasive
as to why your recommendations should be implemented.]
References
[Note: Please remember to have a minimum of THREE and at
least one scholarly article.]
Unit 3 = Milestone 3 Focus Paper

8. Official Rubric with Additional Guidelines for Success
Recommended ORDER for paper:
· Introduction/Transition
· Identify Operating Model
· Apply the Governance Levers
· Analysis of Decision Rights (allocation of power)
· Recommendations for Center-Led
· 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
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 2 Focus Paper by using a 1–2
paragraph summary of your recommendations for the best
grouping option as your Introduction for this paper.
5
<< Again - Don’t get too hung up on this … just set the stage.
Identification of the operating model (integrated, divisional,
hybrid, or holding company) for your selected organization.
10
<< See p. 126, Table 8.1 … this should help you walk through
the process of identifying.

9. Application of the four governance levers (beliefs, diagnostics,
networks, and boundaries) to channel resources to achieve the
business strategy.
10
<< See pp. 128-131; Figure 8.2 very useful … remember,
yin/yang, push/pull … what you focus on must relate to your
strategy.
Conclusion should briefly summarize the primary points of the
paper and recommend a call to action.
5
<< Ensure a nicely written paragraph; don’t summarize what
you were supposed to do in the assignment; instead;
summarized the main points you made --- be persuasive in
winning others to your conclusion and recommendations. Again
– if you were a consultant, this is your chance to “close” the
deal.
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
<< Most people lose points here by (1) not using peer reviewed
(scholarly) source or (2) by using a lot of company documents
… ok to use but you must have THREE not including articles
about the company.
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%)

10. Analysis of the decision rights among key roles.
12
<< Refer to info in Ch 8; Table 8.1 is useful; pp. 131-141
helpful; the case study in Ch 9 has a useful walk-through of this
process and a summary table (9.1) on p. 152 that may help you
organize your thoughts on this.
Recommendations for function support work around value-
adding roles and how these recommendations will help the
organization to be center-led versus centralized.
12
<< Ch 10; Figure 10.1 on p. 159 is good example of the Value
Delivery Framework; remember this is about integration more
than control; center-led is a different mindset than centralized.
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:

11. Introduction
Operating Model
Governance Levers
Decision Rights
Recommendations for Center-Led
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
using the tables that are recommended.
Total
80 points
GM543 Unit 3 = Milestone 3 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.

12. All arguments are
supported well (no errors in logic) using outside sources as
assigned.
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.
40 points (50%)
Transition from the Unit 2 Focus Paper by using a 1–2
paragraph summary of your
recommendations for the best grouping option as your
Introduction for this paper.
5
Identification of the operating model (integrated, divisional,
hybrid, or holding company) for
your selected organization.
10
Application of the four governance levers (beliefs, diagnostics,
networks, and boundaries) to
channel resources to achieve the business strategy.
10
Conclusion should briefly summarize the primary points of the
paper and recommend a call

13. 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 reviewed (scholarly) journal.
10
Analysis and critical thinking
r-order critical thinking and
analysis (e.g.,
evaluation). Paper shows original thought.
comparisons, and inferences.
conclusions, and assessment
based on evaluation and synthesis of information.
24 points (30%)
Analysis of the decision rights among key roles. 12
Recommendations for function support work around value-
adding roles and how these
recommendations will help the organization to be center-led
versus centralized.
12

14. Writing style, grammar, APA format
accurate, (no far-fetched,
unsupported comments), precise (say what you mean), and
concise (not wordy).
mmatical 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.
-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
Grammar and mechanics – including section headings: 6
Introduction
Operating Model
Governance Levers
Decision Rights
Recommendations for Center-Led

15. Conclusion
Formatting and use of APA 5
Total 80 points