Why The Profitability Of Toyota Australia Can Not Increase Even After Ford And Holden 's Leave?

Why The Profitability Of Toyota Australia Can Not Increase Even After Ford And Holden 's Leave?

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Criteria 1
Why the profitability of Toyota Australia can not increase even after Ford and Holden’s leave?
This criteria is to help analyze the impact that external environment changes bring to Toyota’s profitability. By using the PESTLE and SWOT analysis, executives and observers could classify the factors into several aspects, more beneficial to recognize the influence. Also, the strengths, weaknesses, opportunities and threats could be listed which show the positive and negative factors to Toyota.
Criteria 2
Why Toyota and other stakeholders in automotive industry fear that Holden’s quit can affect local supplier network heavily?
This criteria is to find the inner relationship between buyers and suppliers in the manufacturing industry. According to Porter (2008), industry structure has five forces. All of them constitute the supply chain. Each force has mutual effect on others. When one force changes, others would also be influenced. Therefore, finding underlying causes and investigating the relations between each force become more meaningful in understanding how the whole industry structure operates.There is a necessary need in identifying the corporation from systematic view and revisiting whether the change of strategy is conformed to be a fundamental solution. According to Jones (2015), the solution can divided into two types: ‘symptomatic’ and ‘fundamental’. Symptomatic solution focus on short term and ‘surface level’, while the fundamental solution is long term and concerning on a deeper level.

Criteria 3
Is Toyota Australia’s new strategy of cutting down the allowance correct or not?
This question contains the purpose to identify the business ethical problems. Audi (2009) states that before making ethical decisions...

... middle of paper ...

...ts workers to gain another job.
These measures could maximum Toyota’s profit and minimize the impact of closure. By avoiding the risk, increasing efficiency and declining the cost, the company can cover the expense, prevent from suffering a larger loss. Besides, making ethical decision contributes to the reputation establishment and employee personal development in the long term.
Surrounded with the topic whether Toyota should leave or not, the narration is divided into three perspectives, the perspective of profitability, along with the perspective of industry, as well as the perspective of ethics, interpreting advantages of each option, recommending staying for a short term to waiting and revisiting the market condition, taking responsibility to assistant employees, seeking chance to comeback, as one of the feasible future strategy of Toyota Australia.

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