After the Second World War

After the Second World War, the distribution of World economic power was totally rearranged. Before the war, Europe and the USA ruled the world market. The management of Western companies was based on the "Scientific Management" by Frederick Winslow Taylor (1856-1915) and on "Modern Sociology" by Max Weber (18641920). This intellectual basis characterizes the begin of industrialization, led to mass production and to tremendous productivity increases. Yet after the war, new players appeared on the playground, whose work was based on a philosophy, on methods and rules unknown before. Whilst Western managers turned to short-term thinking to satisfy shareholders and to endless restructuring, the new actors concentrated on continual improvement in the quality of products, uniformity of processes and qualification of employees. Toyota is one of these new players, which despite the fierce competition due to excess production capacity in the automobile industry of around 25 % outperforms Western competition in every aspect, in technological innovation, in customer satisfaction, in continuous growth and in profit. In 2004 Toyota passed Ford to become the second largest automobile producer. Before long, Toyota will overtake General Motors becoming the biggest car company in the world probably having no less than 15% of the world market. Toyota will prevail. Most others will have the choice between shrinking or sinking. This paper tries to shed light on the root causes of the Toyota Phenomenon, which for some reason or another Western companies find so hard to understand and much less on how to apply, despite their struggle for survival. in technological innovation, in customer satisfaction, in continuous growth and in profit. In 2004 Toyota passed Ford to become the...

1. When talking about microenvironmental factors we must say that these factors ( company, suppliers, intermediaries, customer markets, competitors and publics ) are factors working closely to the company and they affect the ability to serve customers. The Toyota Prius in its firs generation was small, cramped and slow compact; the opossite of the popular and most wanted type car in America, the SUV. This is were the microenvironmental factors affected the Prius market. Sales are difficult when groups have an actual and potential interest in a specifically type of car. Publics in other words affected the most when talking about Prius sales. Another micro-factor that actually affected the Prius market was the competition ( internal and external ). Other brands began to developed hybrids cars in 2008 to be part of the new growing trend of having an hybrid car to save money and help the environment. Not only other companies and brands such as General Motors, GM and Ford were affecting the sales but also the Prius was facing internal competition from the Toyota Camry ( another hybrid model from Toyota ). Other micronvironmental factors did not affect at