Toyota Strategy Analysis

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BUSI1271/Group case Analysis by Vikram(000745775),Armel(000753323),Le xuan(000751375),Rebecca(000718381),Many(000739533)

Coursework Header Sheet 199048-8

Course Coursework Tutor

BUSI1271: Global Strategy: Analysis & Pr Group Case Analysis VJ Torlo

Course School/Level Assessment Weight Submission Deadline

BU/PG 30.00% 14/11/2012

Coursework is receipted on the understanding that it is the student's own work and that it has not, in whole or part, been presented elsewhere for assessment. Where material has been used from other sources it has been properly acknowledged in accordance with the University's Regulations regarding Cheating and Plagiarism.

000739533 000745775 000751375 000753323 000718381 Tutor's comments

Many Bun Singla Vikram Le xuan quy Hoang Armel Tchakounte Rebecca Abraham

Grade For Office Use Only__________ Awarded___________ Moderation required: yes/no Tutor______________________

Final Grade_________ Date _______________

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BUSI1271/Group case Analysis by Vikram(000745775),Armel(000753323),Le xuan(000751375),Rebecca(000718381),Many(000739533)

1. STRATEGY OF TOYOTA
In this assignment group will be discussing about the strategy of Toyota. Toyota strategy is `Lean production system’ and `Just in time’ production system. Although nowadays it is been adopted by many other companies but still there is uniqueness in Toyota’s strategy. Nowadays Toyota has started working on Solar power systems as to produce electricity and save the natural resources and other it is working on to develop low clear emissions carburettors so as to be eco-friendly. Their strategy is to work in groups of different cultures efficiently and it sets the benchmark in it. Further the company is analysed internally and externally to understand more about its strategy in deep.

2. THE ANALYSIS OF THE EXTERNAL ENVIRONMENT OF TOYOTA
2.1 PESTEL ANALYSIS To analyse a strategy of Toyota, it is necessary to understand the outside environment factors that can influence operation of automotive industry since it might cause considerable effects on Toyota. Pestel framework is applied because it is one of the most comprehensive tools to analyse the outside environment. Political factors:  Adjustments in tax policy (such as change in import, road or environment tax) severely affect the products prices and customer demand.  A political stability is a primary factor that influences automotive manufacturers’ decision in investments.  The uprising in number of country participating in multilateral Free trade agreement (FTA) can alter the face of car manufacturing industry while it enhance the competitiveness and bring a more equal market to various firms.

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BUSI1271/Group case Analysis by Vikram(000745775),Armel(000753323),Le xuan(000751375),Rebecca(000718381),Many(000739533)

Economical factors:  Automobile industry is suffering from structural schisms and their difficulty in understanding the contradictions and economic discontinuities. In capital markets and financial sectors it has lost a lot of significance as a result there is declination in profits and sales.  Exchange rate can directly affect to car manufacturers since they heavily influence prices of raw materials and labours.  Changing in interest rate may alter the demand of automotive industry’s customers and the production plans of car manufacturing firms. Social factors:  Automotive industry employs millions of people directly and indirectly more than that (maybe). Its products have changed the life of people in aspects of way of living and work both. It has the role to play in helping develop the mobility of such countries and it can be made possible through necessary investment in that country.  Since almost automotive corporations are deploying manufacturing across nations, cultural clashes or differences must be considered as significant issues.  Changing in demographic and lifestyle is an important factor to automotive industry since...
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