Mngt2001 Final Essay - Toyota Business Strategy

Topics: General Motors, Automotive industry, Toyota Pages: 7 (1977 words) Published: March 23, 2011
1.0Strategic Analysis
1.3Porters 5 Forces
2.0 About Toyota
1.6Core Values

3.0Toyotas Current Strategies Choices
3.1Ansofs Product/Market Business level Strategies
3.2Miles and Snow’s Adaptive Strategies
3.3Porters Competitive Business level Strategies

4.0Meeting the current strategies?

5.0Strategic Implementation Issues.

6.0Stay with the “Toyota Way” or seek alternative strategies?




Toyota Motor Corporation is a multinational company which manufactures automobiles in 27 countries all over the world and Toyota’s vehicles are sold over 170 countries, not only under the Toyota logo, but are also sold as Lexus, Daihatsu and Hino. Toyota’s vision, as found on their website is “To be the most respected and admired company”, while their mission is “To deliver outstanding automotive products, and enrich our community, partners and environment.” Toyota’s core values comprise of putting the customer first, having respect for people, being focused internationally and to focus on continuous improvement and innovation. This report contains a strategic profile of Toyota, containing a strategic analysis of the company.

As Toyota is a multinational company, they become subject to various degrees of political pressures and instabilities. Currently Toyota is subject to increased government hostility in Venezuela and Nigeria, and as a direct result there has become a greater dependence on OPEC oil, thus causing a great deal influence on the motor industry. Instability in the Middle East has also affected Toyota a great deal. As an unavoidable result fuel efficiency has become a very significant factor for car manufacturers as with the current uncertainty consumers seek stability and cheaper alternatives. In turn prospective buyers may consider the purchase of a vehicle that is less dependent on oil and fossil fuels. ECONOMIC

Economic factors affecting Toyota include the Queensland government no longer supporting the fuel assistance scheme, in turn making petroleum prices for Queensland residents increase.

Global demand for oil has exceeded global production`

PESTLE ModelImportant FactorsImpact

EconomicQueensland not supporting the fuel assistance scheme anymore

Global demand for oil has exceeded global production`- Increase in fuel costs may sway potential buyers to a cheaper technology - Government tax may increase in the future, once again persuading purchase of fuel efficient car. Socio-culturalAging population has lead to greater density in metropolitan areas •Greater Awareness of the environment and the damage of car emissions- Buyers are looking for smaller more economic cars - clean fuel cell development is in favour of older fuels

TechnologicalIncrease in efficiency of production.
Decrease in employee numbers due to robotic technology.- Cheaper production methods reduce cost for purchaser - Competitive advantage
- Disgruntled community members due to loss of jobs.
LegalCO2 emissions- 222g/km for passenger cars, SUVs and light commercial vehicles by 2010. EnvironmentGlobal warming
Reduce substances of concern
Atmospheric quality- Reduce emissions in production, consumers may favour environmentally friendly company - Effective use of resources
- increased public image
- improved air quality for all

-Toyota is the World's second largest carmaker. Its strong industry position is based upon a number of factors including a diversified product range and highly targeted marketing. -Toyota makes a large range of vehicles for both private customers and commercial organizations. Weaknesses

-The World market for cars is in a condition of oversupply and so car manufacturers need to make sure that it is their models that consumers want. -Toyota markets most of its...

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