Toyota motor corporation processes and strategies essay

The SWOT framework pinpoints the most significant opportunities, threats, and organizational weaknesses that Toyota must address using its strengths. As a global leader in the automotive industry, Toyota effectively addresses such factors. This element of the SWOT analysis model identifies the internal strategic factors that serve as capabilities of the firm. Strong brand image Global supply chain Rapid innovation capabilities Toyota has one of the strongest brands in the global automotive industry.

Toyota motor corporation processes and strategies essay

Strategic Management Center Name: DEC 12, 1 Contents Introduction Toyota is a multinational company with factories all around the world, assembles and produces vehicles in local markets, Toyota Motor Europe TME assembles and manufactures in many countries in Europe such as United Kingdom, Czech Republic, France, Poland and others helping the company sales increase year by year.

Environmental analysis comes in internal analysis that concerns stuff like employees, finance, office technologies and so on. The external analysis comes in micro and macro environment, micro such as costumers, supplies, distributers and competitors and macro such as political, economic, social and technological forces.

And that is known as PEST analysis. NCC lecture PEST analysis is a very helpful and useful analysis tool to help understand losses or growths of a specific market concentrating on the Political, Economical, Social and Technological factors of the business.

PEST is very useful to show the benefits and available opportunities for the business itself. Political The Political factor is so important for the multinational companies, such as Toyota, because it will guide the company to understand the country specific requirements, regulations, security measures, restrictions and policies.

It has huge influence on the businesses regulations and how much will the consumers spend.

Features of Short term

Surely, with the mentioned above, the political environment is stable for Toyota, because it makes cars with low CO2 emissions and longer mileage which would reduce petrol usage also because this industry is enormous, therefore Toyota has a positive political impact because it makes cars that use less fuel and reduce dependency on fuel.

The consumers now choose cars with smaller efficient engines based on the benefits of fuel consumption and the savings over time which means they have paid back. Recently the prices of automobiles has increased due to inflation, the main factor that affect on price elasticity is from the oil dependency, customers came aware of new cars with efficient engines which causes saving money in terms of giving bigger mileage for the same amount of oil they could spent on older cars.

Previously, the Europe Union had an agreement for quota system, which provides protectionism for European countries, later on they dropped the quota system and eased the tariffs for the external company which made it easier for many international companies including Toyota to trade in Europe and establish opening factories, which has lead to positively affect on decreasing the unemployment rate and the economic growth.

Choon Keet Sin, PESTLE Analysis on Toyota Prius Social The society environment plays a good part on the type of cars people buy and fuel efficiency in the car in terms of being green and mileage, the social factor is a change in consumer needs in the society, it affects on business is different from country to another, they should be considered.

The challenge for Toyota is the difference between the Japanese customers and European customers, where in Japan there is all about working, where in European culture life is all about both work and social private life. Toyota employs a lot of people in a direct manner and a lot more indirectly which shows how it affects on the society in a major way.

TME has made its products for green and small cars segment in Europe, which aims to keep the world in a clean environment and save the natural resources of the world focusing on providing acceptable social costs for European countries www.

The TME concentrates on this factor for all its processes, products, operations and others. One of the major technology strategies for TME is reducing CO2 emissions and innovate new alternative fuel such as electric motors and hybrid engines also reduce the air pollution, therefore TME is a great example for providing an environment-friendly cars.

Toyota produced Prius with a great Engine technology especially for Europe, which focuses on small engines with the ability to generate higher outputs and using aerodynamic technology for a smother air friction which will decrease the engine efforts and fuel consumption so it achieves low emissions throughout all area.

Threats Global competition in the automotive industry has become highly competitive because of the globalization, the competition which may reduce sales which could influence financial condition of a company. Slide share,Toyota Analysis The competition is the main threat for the TME especially in the crowded market for Europe and the Korean motor opened a factory in Europe which makes it a foreigner competitor that leads TME to make joint venture with Citroen and Peugeot in manufacturing the Aygo.

Slide share,Toyota Analysis Another factor that threats TME are the Emission Restriction the probability of tightening or imposing new European emission standard that may increase the cost for product testing and manufacturing operation and it will be affected on the Toyota production reducing, however TME meets with the regulatory requirements of CO2 emissions.

The cost of production may affect on many reasons such as pricing of the raw material and steel.

Toyota motor corporation processes and strategies essay

The financial crisis which also affects negatively on the fuel price elasticity which threatens the production. Opportunity Nowadays one the main environmental problems is climate change and air pollution, customers looking for products which aim to save the environment which is the best opportunity for TME to implement green cars using alternative resources such as, electricity and hybrid engines to reduce CO2 emission to meet the costumers needs and show the society responsibility.

Slide share,Toyota Analysis. Europe has many manufacturers seeking the same vision and responsibility as TME, with the existence of the products and market in Europe as per Ansoffs matrix which is to implement market penetration by making joint venture and strategic alliance giving a good opportunity to produce cars in Europe and develop supplied network to locate any future plants.

As mentioned previously in PEST analyses, one of the best opportunities is to match mini cars segment which meets costumer needs in saving the environment and the economy.

TME must innovate products specifically for this segmentation because of high unemployment rate, rising fuel price and economy uncertainty in Europe. Strengths Toyota is a world leading company with a strong brand position in the automotive industry globally, with a large number worldwide in the car sales, it has strong financial backbone, strong distribution networks which helps Toyota to improve their sales and market positions around the world.

Toyota has different products with different segments for costumers which meet the needs of customers from all levels with the high production lines which gives Toyota its good reputation and brand image that reflects positively on the competitive advantage.Introduction History and background Toyota Motor Corporation or Toyota in short, is a Japanese automaker.

It is the world's second largest automaker behind General Motors. Toyota Motor Corporation’s generic strategy (Porter’s model) and intensive growth strategies are discussed in this case study and analysis on the business.

The company is known for its innovation processes. For example, through the Toyota Prius, this intensive growth strategy empowers the firm to attract customers concerned about the. Toyota Motor Corporation's vehicle production system is a way of "making things" that is sometimes referred to as a "lean manufacturing system" or a "Just-in-Time (JIT) system," and has come to be well known and studied worldwide.

Chapter 7. Organizational Structure and Change Figure Understand reasons why people resist change, and strategies for planning and executing Toyota Motor Corporation (TYO: ) has often been referred to as the gold standard of the automotive industry.

Toyota Motor Corporation is an automotive manufacture stationed in Toyota, Aichi, Japan. It was established in by Kiichiro Toyoda as a spin-off from Toyota Industries, his father’s company, to create automobiles.

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