Organization Financing: Toyota -- Evaluate Term Paper

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Organization

Financing: Toyota -- Evaluate how the organizational function FINANCE impacts the organizational structure of Toyota

Although the Toyota Motor Corporation "primarily conducts business in the automotive industry. Toyota also conducts business in the finance and other industries" ("Company Profile: Toyota," 2007, Reuters.com). From the customer's point-of-view, Toyota's financial services in business consist primarily of providing financing to Toyota dealers and customers for the purchase or lease of Toyota vehicles. It also provides retail leasing through the purchase of lease contracts originated by Toyota dealers ("Company Profile: Toyota," 2007, Reuters.com). Since few people have ready cash to purchase a new car, financing strategies and promotions are of thus great concern for Toyota's marketing department, and financial data such as the interest rate for borrowing funds to purchase a car is always of consideration in deploying overall organizational strategy.

Within the organizational structure, Tracey Doi, group vice president and chief financial officer for Toyota launched a pilot transformation project in 2003 for the accounting department called "Driving for Higher Performance," which involved full upgrade of the Oracle's PeopleSoft Enterprise Financial Management applications and the use of lean accounting techniques to reorganize all the company's financial data by profit center, so Toyota executives could look at company financials on a divisional basis. The company's stress upon continuous improvement and elimination of least efficient processes is thus… [END OF PREVIEW]

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