Japan Industry News

Toyota: From Maru-nage to Micro-management?

New Toyota Century

Harold ArcherThe Japanese word “maru-nage” (丸投げ) means to throw everything at someone, or for example throw the ball, and totally leave it in someone else’s hands. For Japanese business, this is usually not a good meaning. But in an era of doing more work with less people, this type of management or outsourcing is fact for many projects, events and operations.

Sometimes, things get out of hand, such as perhaps in the Takata airbag scandal or the recent Dentsu-Toyota China motorshow issue that made news.

Probably, Dentsu had only good intentions in mind. No doubt the intention was to make good impression for Toyota or Lexus at the motorshow, and the team decided to err on the side of overspending, make sure events or operations were not shabby, and under expectations.

But accordingly the result, termed “lavish” was not good especially when the overall big bosses noticed. And certainly this is not “The Toyota Way” of humble, cost-concious and self-respoonsible, disciplined and responsible work.

Now, will the pendulum will swing back, from “maru-nage” to “micro-management”? And with it slow decision-making, making it tough to act quickly in this digital age where we need quick action?

In fact, Toyota-side marketing managers are certainly tasked to monitor and approve at the detailed level, and to know operations in detail. But sometimes, overall bigger budgets are approved, and therefore final details of expenses and operations are left up to the vendor. From now on, everyone will certainly be nervous and touchy, and is it good to be required to check in each case? For example if event cost conscious “pipe chairs” are sufficient and must be approved for some operation?

This is part of the difference between sales, and manufacturing side. Manufacturing must watch every yen, every 5 yen is huge. And on the sales and marketing side, sometimes to move the product easily 5,000 or 50,000 yen is a campaign or discount aspect for the campaign or actual discount. And, impressions count. Too shabby or poor image versus competitors, Lexus and Toyota the same, is not good.

Let’s watch this case and see how one area with one key partner and vendor could affect global marketing style and efforts.

One thing is certain. The stated Toyota 9 percent profit levels versus other IT companies can definitely be improved. And certainly the trend to digital and innovative non-traditional marketing via influencers and social media target to certain segments, profiles, will continue.

 

Top visual: Bonuterra.

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