Axevrod & Cohen (1998), agues that Total Quality Management (TQM) can be viewed as an important environmental management measurement useful in ensuring that the services and products a company produces are of high quality and are in line with the market. It is important to ensure that, in an effort to ensure good environmental management the value for goods and services is not compromised.
This standards are very useful both to the consumer by taking into consideration the consumer needs and safety and to the producer by increasing its market share. Toyota Company has adopted the TQM standards in its strategic plan. The standards have enabled it to get high financial turn over in recent times, have a strong brand image that is environmental friendly and wide customer range, leader in production and manufacturing thus maximizing profit and has excellent penetration in major markets like China.
Among its strategies is to take youth market share which is a new market segment, produce mass-produced hybrid gas-electric commercial vehicle as an alternative fuel sources away from gas guzzling vehicles, produce vehicles that are environmental friendly, fuel efficient and greater performance, produce vehicles that meets the institutions and social needs and wants and continue in global expansion especially in markets like China and India which are emerging.
The TQM standards used by Toyota Corporation have been very successfully in the global process though other challenges are encountered. Fluctuations in exchange rate affects the profits, while the decreasing of the number of large families brought a bout by changing demography undermining the demand of cars by large families, rising costs for fuel and maintenance, economic prediction especially in the downtown which hinders purchase of vehicles and changes in the use.