Question

What are the pros and cons of Toyota’s structure and what are the most important elements of Toyota’s organizational structure??

Answer 1

In 2013, Toyota changed its organizational structure from the centralized structure to:
- the Global hierarchy,
- the Geographic divisions, and
- the Product-based divisions.

This change was made to adapt the consumer's demand in each of the regional markets all over the world. The most important element of this structure is the speed of handling issues and problems of all Toyota's branches. However, this structure also has a weakness which is the decreasing of headquarter's control over the global organization.