Understanding Strategic Management A Strategic Analysis of Toyota Motor Corporation Industry: Automotive Industry CONTENTS ABOUT TOYOTA MOTOR CORPORATION PAGE 3 EXTERNAL STRATEGIC ANALYSIS:- PESTEL PORTER’S FIVE FORCE ANALYSIS COMPETITIVE ANALYSIS PAGE 3, 4, 5 AND 6 INTERNAL STRATEGIC ANALYSIS:- SWOT ANALYSIS PORTER’S VALUE CHAIN ANALYSIS PAGE 6, 7 AND 8 STRATEGY FORMULATION:- PORTER’S GENERIC OPTION ANALYSIS ANSOFF MATRIX ANALYSIS PAGE 8,9 AND 10 RECOMMENDATIONS PAGE 10 CONCLUSION PAGE 10 REFERENCES PAGE 11 LIST OF TABLES AND FIGURES TABLE OF FINANCIAL REPORT OF TOYOTA PAGE 3 TABLE OF COMPARISON OF TOYOTA AND HONDA PAGE 6 DIAGRAM OF PORTER’S GENERIC OPTION ANALYSIS PAGE 8 DIAGRAM OF ANSOFF MATRIX PAGE 9 About Toyota Motor Corporation Toyota Motor Corporation is a Japan based company, whose headquarters are located in Aichi Prefecture. The company was founded by Kiichiri Toyoda in 1937. Currently the company’s CEO is Akio Toyoda. Toyota is basically into cars and it is one of the top players in the world in this industry. Toyota also owns two other brands namely Lexus and Scion, which gives the company a lot of advantage over it’s other competitors. Toyota manufactures sedans, saloons, suvs, muvs, pick-up trucks and buses. During the year 2013 Toyota had approximately 333,498 employees, who were working globally. In March 2013, Toyota was ranked as the thirteenth biggest organization globally in terms of its revenue. In the following table we can see the financial report of Toyota Motor Corporation in the year 2013- REVENUE 22.064 TRILLION YENS OPERATING INCOME 1.320 TRILLION YENS NET ... ... middle of paper ... ...bile.asp. [Accessed 15 December 2013]. Toyota . 2013. Toyota . [ONLINE] Available at: http://www.slideshare.net/FenellaAndrade/toyota-9167108. [Accessed 15 December 2013]. Pestle for Toyota. 2013. Pestle for Toyota. [ONLINE] Available at: http://www.scribd.com/doc/133979217/Pestle-for-Toyota. [Accessed 15 December 2013]. Strategic management Toyota case study. 2013. Strategic management Toyota case study. [ONLINE] Available at: http://www.slideshare.net/ArioArdianto/strategic-management-toyota-case-study-27410014. [Accessed 15 December 2013]. Competitive Analysis. 2013. Competitive Analysis. [ONLINE] Available at: http://dana.ucc.nau.edu/~toyota-p/competitive_analysis.htm. [Accessed 15 December 2013]. 2013. [ONLINE] Available at: http://2.bp.blogspot.com/-XlYiqBsXMTc/ToKUCcTvkdI/AAAAAAAAASI/8klxx2iz5xQ/s1600/Ansoff+Matrix.jpg. [Accessed 15 December 2013].
Toyota Motor Manufacturing, U.S.A. (TMM) is deviating from the standard assembly line principle of jidoka in an attempt to avoid expenses incurred from stopping the production line for seat quality defects. This deviation has contributed to the inability to identify the root cause of the problem, which has led to decreased run ratios on the line and an excess of defective automobiles in the overflow lot for multiple days. If this problem isn’t fixed quickly, an increased amount of waste will continue to be incurred and customer value will be threatened.
Toyota Motor Corporation has its headquarters in Aichi, Japan with over three hundred thousand employees worldwide. This company majors in manufacturing and selling automobiles ever since its spinoff in 1937 from Toyota Industries (Hino 130). This company is part of the Toyota Group; one of the biggest conglomerates in the globe, and includes company like the Hino motors, Lexus, and Daihatsu. Apart from manufacturing vehicles, this company also makes hybrid cars, electric vehicles, and robots among other auto items. Toyota is known for its unique management accounting concepts that utilize lean accounting philosophy, the just in time strategy, the kaizen and the kaiben approaches to manufacturing. To be in tune with this practice, Toyota has a unique management system known as the Toyota Production System, which is an integrated socio-technical system that is inclusive of its manageme...
BMW is a well-established company that has operated in the automobile industry for almost 100 years. Over this time period the company had to face many challenges, however it managed to become one of the most successful and well-known companies in the world. (BMW) This analysis will examine BMW’s strategic resource base, how they are and should be managed and whether the competitive advantage of the company is sustainable. Further the paper will elaborate on if and how BMW is satisfying customer needs. Also threats regarding the competitive advantage of the company will be identified and examined.
Consumers are more likely to buy Hybrid and electric cars that do not have carbon emissions in the air. Increase in fuel prices has opened up new markets for Toyota due to their manufactured Hybrid cars and consumers are shifting towards Hybrid cars from conventional cars (Richardson et al., 2010). Customer needs are changing and they are demanding new car models. Toyota has achieved continuous growth by acquiring other car companies in the UK and around the world and they are continuously growing their network around the globe.
The Toyota Production System (TPS) is a unique system of producing vehicles developed by Toyota. The goal is to make and deliver vehicles and most efficient way possible. Also known as “The Toyota Way”
Toyota is a successful automaker with a reputation for quality, and it has a strong organizational culture. However, it got into crisis that not recall the faulty acceleration pedals immediately when it found out and allowed tragedy happened.
Toyota began to be recognized in the 1080s for the quality of its vehicles and its responsiveness to customers
The HRM strategy in Japanese companies is supported by the six pillars of Japanese employment practice lifetime employment, company welfare, quality consciousness, enterprise unions, consensus management and seniority-based reward systems. Toyota is at the heart of global manufacturing, a company that has grown over 70 years to become the world's third largest vehicle manufacturer. (Toyota worldwide 2006) Toyota is the seventh largest company in the world and the third largest manufacturer of automobiles, with production facilities in 26 nations around the world employing more than a quarter of a million people. The decision to manufacture in Europe was based on a corporate policy of building vehicles where the customers are and The United Kingdom was chosen for many reasons including its history of vehicle manufacture, the large domestic automobile market, its components supply base and its excellent links with the rest of Europe.
Toyota Motors Corporation is one of the largest manufacturing motor companies in the world. Their manufacturing company is based in Japan and this company runs both domestic as well as internationally. The company has both national and international customers all over the world, but they are dealing with some of the environmental factors that are affecting their business. Toyota Motors has many different factors that play an important role in the marketing strategies of the company.
Toyota’s uses both differentiation and low cost as generic strategies to try and gain a competitive advantage over their competitors in the automotive industry. The market scope that Toyota uses is a broad one that encompasses nearly every type of customer that is in the market to purchase an automobile. Toyota is able to target such a large market because they have something for everyone. Toyota has four wheel drive trucks and SUVs for the outdoor types or those who live in areas that face severe weather conditions, hybrid models like the Prius for the eco-friendly customers that are interested in saving the environment, along with the standard cars for general, everyday use. Additionally, Toyota provides vehicles for all price ranges.
All employees of Toyota are satisfied with lower level needs, they make great wages, they have job stability, and the job sites are full of safety initiatives and well planned (Liker, 2004, p.210). Toyota also provides family benefits to help with raising children and the wellbeing and health while at work, with all these benefits employees are content and can focus on big picture ideas. Toyota promotes a strong team mood and a sense
Toyota Motor Corporation is one of the largest automakers in the world. At its annual conference in Tokyo on May 8, 2008, the company announced that activities through March 2008 generated a sales figure of $252.7 billion, a new record for the company. However, the company is lowering expectations for the coming year due to a stronger yen, a slowing American economy, and the rising cost of raw materials (Rowley, 2008). If Toyota is to continue increasing its revenue, it must examine its business practice and determine on a course of action to maximize its profit.
Toyota- focused differentiation, medium pricing, breadth of product line is low. Company is known for quality products, and nice styling.
Toyota’s early entry into the market was relatively struggling. In 1957, Toyota attempted to come into the United States market, by creating a subsidiary in California. Later, it was confirmed to be a nightmare; the Toyota automobiles performed badly in road tests on U.S. highways. Evidently, Toyota had not done enough homework on the basic local circumstances in the U.S. marketplace, basically how Americans used vehicles. Due to being short of local responsiveness, Toyota closed down its US subsidiary and left the market.
Toyota has adopted an expansion strategy aimed at increasing the company’s market share through sustainable growth. This will be done based on the delivery of high quality, and safe cars, at an affordable price. As the company seeks to expand to new markets, focus will be on maintaining an organizational culture that allows optimum efficiency in the ever dynamic global market.