Karmarie Maldonado, Thomas Granvang, Thomasina Campbell, and Kanesha Madison
STR/GM 581: International Strategic Planning and Implementation
January 30, 2012
Jill M. Hagist
The situational analysis is one of the four elements in a strategic management process and is an important step in the success of a business. This paper will present a background history of Toyota and provide the company’s mission and vision statement and values. The paper will provide the environmental forces that affect the company and the potential for global expansion. An assessment of the automobile industry structure using Porters five forces. In addition, a SWOT analysis will be conducted to understand the strengths, weaknesses, opportunities, and threats of the company. Company background
Toyota Motor Corporation, commonly known as Toyota, is a Japanese multinational automobile manufacturer. Kiichiro Toyoda founded the company in 1937 as a spinoff from his fathers company Toyota Industries to create automobiles (Xtimeline, 2009). Before the company was founded, Kiichiros father, Sakichi Toyoda created a power-loom for spinning cloth and Toyoda Spinning and Weaving CO was founded in 1918. Toyoda later sold one of his patent rights and used the money to create an automobile department in Toyoda Automatic Loom works in 1933 (Brandsport, 2012). The Type A engine was the first product produced in 1934. In 1936, the company produced the first passenger car called Toyota AA. The Toyota Motor Company was later established in 1937 and Toyoda opened several automobile and parts plants in Japan and later globally. Today, Toyota has its main headquarters in Achi and Tokyo in Japan. The company also creates robots besides automobiles and today recognized as one the leading automobile companies in the world (Brandsport, 2012). The greatest legacies left by Kiichiro Toyoda is the Toyota production system known as the “just-in-time” production method. The system was intended to eliminate waste, inconsistencies resulting in improved productivity (Toyota, 2012).
Mission, Vision, and Values
The Mission of Toyota is to be the initial selected collaborator for clientele-seeking resources using solutions and to be broadly known for advanced services and goods, while possessing high regards for humanity. Toyota has a vision to assemble conviction and assurance with clientele by bringing exceptional worth services and goods, which includes genuine worth to the company. The company, values the stakeholders, suppliers, and especially the employees throughout a by no means ending exploration to advance. Toyota has five main values placed in relation with everyday work. They include challenge, Kaizan, Genchi Genbutsu, respect, and teamwork. The challenge is to continue an extended image and make every effort to get together all challenges with the nerve and originality needed to achieve that vision. Kaizen pushes Toyota to improve the work that they do. Genchi Genbufsu is all about making the best decisions for the company and peruses all the goals set. Toyota shows respect by building trust and understands relationships with its customers. Teamwork is all about growing individually and professionally within the company. Broad Environmental Forces and Port Five Forces Model
Environmental threats consist of a person, group or organization outside the company that seek to reduce the level of business performance. Threats increase costs reduce the willingness of customers to buy products or services of the company. That is why organizations need to develop a model of environmental threats to help managers to be more effective in developing strategies to neutralize the threats. This model is known as the Five Forces framework. Professor Michael Porter of Harvard Business School developed the model. This suggests the five attributes can be put up in some way to compromise the ability of the company to create or maintain...