Toyota Strategy Analysis

Topics: Automotive industry, Toyota Production System, General Motors Pages: 12 (3676 words) Published: February 15, 2013
BUSI1271/Group case Analysis by Vikram(000745775),Armel(000753323),Le xuan(000751375),Rebecca(000718381),Many(000739533)

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

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BU/PG 30.00% 14/11/2012

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

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

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.

2.1 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.


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...

References:  Johnson, G.; Scholes, K.; Whittington, R. “Exploring corporate strategy”, seventh edition, Pearson education, U.K.  Liker, J.(2004) The Toyota way: 14 Management principles from the world’s greatest manufacturer.      The Toyota kata, Tata McGraw-Hill publishing company ltd, New delhi.  accessed on 8-11-2012.
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