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Assignment 4
Insert Student’s Name Here
Firm’s Name
Impacts on
Impact of Company’s Mission on Success
insert a bullet or two describing the mission’s impact to overall competitive success
Impact of Company’s Vision on Success
insert a bullet or two describing the vision’s impact to overall competitive success
Impact of Stakeholders on Success
insert a bullet or two describing the impact of stakeholders to overall competitive
success
SWOT Analysis Strategy
Strengths and Opportunities
Insert a bullet describing the strategy to capitalize on strengths and
opportunities
Insert another bullet describing the strategy to capitalize on strengths and
opportunities
SWOT Analysis Strategy
Weaknesses and Threats
Insert a bullet describing the strategy to minimize weaknesses and threats
Insert another bullet describing the strategy to minimize weaknesses and
threats
Competitiveness Strategy
Competitiveness
1st bullet point of levels and types of strategies to maximize
competitiveness
2nd bullet point of levels and types of strategies to maximize
competitiveness
Profitability Strategy
Profitability
1st bullet point of levels and types of strategies to maximize profitability
2nd bullet point of levels and types of strategies to maximize profitability
Communications Plan
Competitiveness Strategies
1st bullet point on the plan to communicate the competitiveness strategies
to stakeholders
2nd bullet point on the plan to communicate the competitiveness strategies
to stakeholders
Communications Plan
Profitability Strategies
1st bullet point on the plan to communicate the profitability strategies to
stakeholders
2nd bullet point on the plan to communicate the profitability strategies to
stakeholders
Corporate Social Responsibility
Responsible (ethical) corporate citizen
1st bullet point on the assessment of efforts by the corporation to be a
responsible (ethical) corporate citizen – specific example
2nd bullet point on the assessment of efforts by the corporation to be a
responsible (ethical) corporate citizen – specific example
Impact of efforts on company’s bottom line
1st bullet point on the impact the efforts have on the company’s bottom line
– specific example
2nd bullet point on the impact the efforts have on the company’s bottom
line – specific example
References
Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2013). Strategic
management: Concepts and cases: Competiveness and globalization
(10th ed.). Mason, OH: South-Western Cengage Learning.
Insert second source
Insert third source
Insert any additional sources
Running Head: BUSINESS AND COOPERATE LEVEL STRATEGIES
Week 8 Assignment 3
Eric T Smith
Strayer University
BUS499: Business Administration Capstone
Dr. Grizzell
February 24, 2019
1
BUSINESS AND COOPERATE LEVEL STRATEGIES
Week 8 Assignment 3
Introduction
Every business organization has to set the business and cooperate strategies that it will use
(Tajistu, 2018). This is an important decision since it will set the business tone for either
succeeding or failing in the market. These strategies are so important that some of the companies
hire experts to analyze the business and cooperate level strategies on their behalf (Tajistu, 2018).
Before the decision to decide on the type of strategies that a business organization has to adopt
is made, it has to first understand the competition in the market and the type of strategies used
by the other organizations. Once the organization has been able to set the right strategies, it will
be guaranteed to establish a successful firm.
Analyze the business-level strategies for the corporation
Every business organization has ways that it differentiates itself from the competitors in the
market. This helps the cooperation to earn its margins as well as defining its revenues. Business
strategies are also used as the high plan for many businesses to achieve their goals and objectives
(Yamazaki, 2018). An organization has to set well formulated business strategies if it has to
achieve a strong performance financially, a strong position that is competitive which will lead to
the corporate’s business growth, otherwise the cooperation will fail. Every company has to
regularly change its business strategies if it has to competitively stay in the market (Yamazaki,
2018).
The Toyota Company, just like any other cooperate in the world depends on its own business
strategies that keep it competing healthy in the market. The cooperation since its formation, has
BUSINESS AND COOPERATE LEVEL STRATEGIES
adopted many strategies which often change over time. According to Porter’s five forces, the
business is faced with numerous opportunities in the market as well as the challenges (Coup,
1999). The power of new competitors in the market, introduction of new substitutes, both the
consumer's and the supplier's power and new entrants in the market has created tension to the
company which has made the Toyota Company to adopt new and more promising business
strategies. Some of the top business strategies that Toyota has adopted include the following;
Toyota is one of the most leading dealers of automobiles and spares in Japan. One of the reasons
why this cooperate has managed to stay in the market is creation of very innovative cars and
investing in advertisement (Jurevicious, 2019). Research has shown that the company spends a
lot of billion dollars just for advertisement every single year. The company had also built its
reputation by being able to build classic cars at customer affordable prices (Yamazaki, 2018). The
company has reduced its prices when compared to other competitors in automobiles and spares.
Many of the competitors in this industry belief in profit that is based on the following formula,
cost + profit = selling price while Toyota company uses a slight different approach which is based on the
following formula, price-cost=profit (Tajistu, 2018). This strategy has really made Toyota to attract more
customers than its competitors.
The second business strategy for the TOYOTA Company is the solid foundation that the company has laid
over the years it has been in operation. The company has build a strong foundation by reinforcing
their systems with the customers' point of view. The company has been able to achieve this by
doing a thorough analysis of the major causes of inconveniences especially on the design stage.
This is usually the mark of quality for any organization. By doing such analysis, the company is
painstakingly getting a more advanced design quality. The Company’s introduction of the inline
BUSINESS AND COOPERATE LEVEL STRATEGIES
dimensions has enabled it to do a much better analysis for their manufacturing lines (Tajistu,
2018). The Company has been able to achieve this through the introduction of team-leader
structure which deals with the training of human resource production which enhances process
assembly fabrication. The Company has also been able to set a solid foundation by developing
suppliers' collaboration. Such collaboration will help the Company avoid gratification by using the
initiatives from the suppliers as the starting point for enhancement of quality efforts.
The second business strategy for the Toyota Company is the growth philosophy. Toyota has been
dealing with different lines of production such as product and supply, advanced technology
strategies, sales and marketing as well as improvement of a high variety of products. The
incorporation of technology, as the company believes, lies in the heart of the Company’s
competitiveness. To achieve this, the company is spending a lot in human training since it’s a key
part in manufacturing (Yamazaki, 2018). When the training is done, the employees acquire the
required knowledge and skills that helps them in the production, development and sales. Lastly,
the Company is also facilitating its employees in a bid to ensure that they embrace the “Toyota
culture” (Tajistu, 2018).
The next business level strategy for this company is the introduction of technology in their
operations. Toyota has been able to design hybrid conservative vehicles, plug in hybrid vehicles,
battery electric vehicles and fuel cell hybrid vehicles from its extensive use and development of
technology. The use of technology has enabled the strategy of sustainable mobility as the
company has been able to integrate some aspects such as integration of any partnerships that
can bring the advanced Company’s technologies to the market, the energy that is essential in
BUSINESS AND COOPERATE LEVEL STRATEGIES
powering the technology, the atmosphere at which the technology based products will operate
and the whole life cycle of the products and technologies used from the time of production,
operation to the time that the products get recycled back to the market.
Training is another business level strategy that the Toyota Company has been applying for several
years. Any planning stage that is well strategist guarantees a production of a defect free products.
With this strategy, Toyota has been able to design excellence especially in the automobile
industry (Coup, 1999). The use of technical advances such as Computer Aided Designs has
enabled Toyota designers to design and transform their products easily.
Justify your opinion
The Toyota Company has been able to make a good choice in adopting the business level
strategies that have been discussed in this paper. This is because every challenge that the
company has faced has successfully been dealt with. It has also been able to identify any
problems that may befall the company and immediate solutions provided hence making the
company to favorably compete in the automobile industry.
Analyze the corporate-level strategies for the corporation
Corporate level strategies for the Toyota Company will involve analysis of the scope and aim of
the organization, the environment that the company is operating at, the nature of the Companies
business, the competition that the company faces and its position in the market place
(Jurevicious, 2019). Business plans and corporate planning are the two major building blocks for
implementation of a cooperate strategy. The management culture of Toyota has transformed its
internal business swiftly into a world leadership. The introduction of 'Just in time production' and
BUSINESS AND COOPERATE LEVEL STRATEGIES
'Jikonda' really boosted the success. Toyota has been able to use 'Jikonda' to prevent defects
from spreading from one machine to the other. The Company is able to detect any unexpected
quality during production rather than detecting it at the end of the production (Tajistu, 2018).
The principle of ' Just in time production' ensures that the Company’s production parts are ready
just incase they are needed. This ensures that the production process is continuous. Another
cooperate strategy that Toyota has been able to employ is the use of the A3 strategy by the
managers. These strategy uses a mechanism in which the managers are able to mentor others in
aspects such as scientific thinking and root- cause analysis. This strategy helps the company to
achieve productive dialogue since people can learn from others. The strategy also builds
opportunities that are structured and enables people to learn through experience, mistakes and
trial and error based plan. Every culture and custom of different communities are regarded by
this company. Through this strategy, Toyota respects the rule of law for every community and
nation. This strategy has made its vehicles to be perceived as a sign of luxury, comfort and
reliability thus a large number of customers. The last cooperate strategy that this company uses
is based on its culture and the impacts it has on the current situation. Research from the
company’s website shows that the Toyota culture is based on the following five principles. The
first principle is that the company’s managers are not bosses in the organization but offer any
assistance that may be required by the employees. The second principle is that the company does
not only focus on making its products but also on the process of producing the products. The
company’s management believes in production of better cars rather than just producing cars.
The next principle that drives the Toyota culture is that competition does not only involve
competing with others, but also improving Toyota products in a self critical manner. The next
BUSINESS AND COOPERATE LEVEL STRATEGIES
principle that the organization believes in is training the best people since they understand that
quality people make quality products. Finally, the company believes in striving for continuous
success always. It believes that every process can be improved since no process can be declared
perfect.
Justify your opinion
The cooperate strategies that have been used by the Toyota Company is a good choice. The
company has been able to apply this strategies to command a large portion in the automobile
industry. It has also ensured a continuous success for the Company.
Analyze the competitive environment to determine the corporation's most significant competitor.
An organization should have the ability to use its available resources and innovative strategies to
ensure that it stands out in the market. Toyota has been in the market for quite a long time and
it’s among the most competitive companies in the world. Just like any other industry, the
automobile industry has also competitors who really challenge the Toyota Company. Some of the
competing firms include Ford, VW, Hyundai, General Motors, Maruti Suzuki and FCA. The
strategies that the competitors use include the following;
Ford Company.
This company deals with global marketing, manufacturing, servicing of new vehicles as well as
designing of automobile parts. The company has been able to survive in the market by offering
high quality products which gives a big challenge to the Toyota Company. Its long dominance in
the industry has given it power to establish itself in the market.
BUSINESS AND COOPERATE LEVEL STRATEGIES
VW
The company has made a successful return since 2015 diesel scandal and has been able to
compete favorably in the market. Some of the strategies that has helped this company to succeed
include a strong financial position, a large product portfolio and a brand image.
Hyundai
This is yet another Toyota competitor. The company deals with production of automobiles on the
Asian market. It produces passenger cars, SUVs and other luxury cars such as the Kia brand
(Jurevicious, 2019). The extensive use of technology, its brand image and the large manufacturing
plant that the company owns are among the many key strategies for its success.
General Motors.
This company was incorporated by the Delaware Cooperation in 2009. Some of the factors that
has enabled it to offer such a competitive challenge include a strong sales of the Cadillac, Baojun
and SUV vehicles as well as a positive growth of the Chevrolet Vehicles.
Which company you think is most likely to be successful in the long term. Justify your choice.
The company that is likely to succeed in automobile industry in the long term is the Hyundai
Company. This is due to the increased use of technology that the company has been able to
integrate in its production. Its brand image will also be likely to attract a large number of
customers in the future.
Determine whether your choice from Question 3 would differ in slow-cycle and fast-cycle
markets
BUSINESS AND COOPERATE LEVEL STRATEGIES
Most companies in the automobile industry have been trying to use technology in their
operations and also trying to maximize their sales. Use of technology is important in both slow
and high cycle markets hence there will be no any significant changes if the strategies are applied
in both market cycles.
References
Tajitsu N. & Shiraki M., “Toyota plan to expand production, shrink cost of hydrogen fuel cell
vehicles.” Reuters. (2018, July 26th.) retrieved from:
https://www.reuters.com/article/us-toyota-hydrogen/toyota-plans-to-expandproduction-shrink-cost-of-hydrogen-fuel-cell-vehiclesidUSKBN1KG0Y0?feedType=RSS&feedName=businessNews&utm_source=dlvr.it&utm_
medium=twitter
Yamazaki, D., Mori, A., & Murase, E. (2018). The development of a new V6 3.5 L turbocharged
gasoline engine (No. 2018-01-0366). SAE Technical Paper.
Nkomo, T. (2013). Analysis of Toyota Motor Corporation.
Diamond, D. (2009). The impact of government incentives for hybrid-electric vehicles: Evidence
from US states. Energy Policy, 37(3), 972-983.
Toyota Motors Corporation. Advanced Technology Media Briefing, (2019). Retrieved from:
https://www.toyota-global.com/innovation/safety_technology/media_tour2013/
Coup, D. (1999). Toyota's approach to alternative technology vehicles: The power of
diversification strategies. Corporate Environmental Strategy, 6(3), 258-269.
BUSINESS AND COOPERATE LEVEL STRATEGIES
Motor Plus Engine. Double power for smart operation. (2019). Retrieved from:
https://www.toyota-global.com/innovation/environmental_technology/hybrid/
Essays, UK. (November 2018). Factors influencing the business environment of Toyota.
Retrieved from https://www.ukessays.com/essays/marketing/factors-influencing-thebusiness-environment-of-toyota-marketing-essay.php?vref=1
Jurevicius O. (2019, January 10th). A SWOT analysis of Toyota (6 Key Strengths in 2019).
Retrieved from: https://www.strategicmanagementinsight.com/swot-analyses/toyotaswot-analysis.html
Interbrand. (2018) Retrieved from: https://www.interbrand.com/best-brands/best-globalbrands/2014/ranking/
Lincoln, J. R., Ahmadjian, C. L., & Mason, E. (1998). Organizational learning and purchase-supply
relations in Japan: Hitachi, Matsushita, and Toyota compared. California Management
Review, 40(3), 241-264.
Ghemawat, P. (2005). Regional strategies for global leadership. Harvard business
review, 83(12), 98.
Abhijeet, P. (2018). Toyota Competitors. Cheshnotes. Retrieved from:
https://www.cheshnotes.com/2018/07/competitors-of-toyota.com
Running Head: EXTERNAL AND INTERNAL ENVIRONMENTS
Week 6 Assignment 2
Eric T Smith
Strayer University
BUS499: Business Administration Capstone
Dr. Grizzell
February 10, 2019
1
EXTERNAL AND INTERNAL ENVIRONMENTS
2
Week 6 Assignment 2
It comes as an inordinate concern that corporations in contemporary environments have
high chances of success following a close coverage of the external and internal factors of the
environment that govern corporations worldwide. It proves an imperative step for corporations to
understand factors such as forces of competition, their own strengths and weaknesses and from
them, they can understand how best they can work to address such forces while bettering their
culture and values for the good of the corporation. This essay analyzes the business environment
of Toyota Motors considering its strengths and weaknesses, as well as the strategies, fit for the
corporation for a stable growth while superintending the forces of competition that has a direct or
indirect influence on Toyota Motors.
General Environment
Toyota Motors Corporation is an international Japanese automotive producer listed
largest in Japan by revenue as well as market capitalization. It has been defined as the world
leader in the production and auction of Hybrid electric vehicles. This automotive giant like all
other corporations is affected by diverse business environments that determine the operationally
of the company as well as the profitability and expansion of the corporation.
Economic environment
The economic environment of any organization involves factors such as global inflation
rates, labor wage rates, government intrusions, economic progress rates et cetera. For Toyota
Motors, it is crucial to note that they received a levy incentive to construct hybrid vehicles which
operate on clean fuel. As such, the corporation attained a heightened parity for its hybrid
EXTERNAL AND INTERNAL ENVIRONMENTS
procurements for its customers. As such, this has become advantageous from all entities in a
business society. The corporation heightened their sales rates while reducing their product’s
contribution to environmental pollution. Also, affordance of the Toyota models is enhanced as
the hybrid models are available at affordable rates worldwide (Diamond 2009).
Technological environment
Apart from environmental technology much dealt on this paper, Toyota Motors have
indulged in the technology that upholds the safety of the people driving Toyota cars. It has
remained its mission to produce cars that have zero casualties in cases of accidents. These
include innovative driving sustenance systems where the workloads of drivers get reduced and
the Cooperative-adaptive Cruise Control which allows drivers to wirelessly communicate with
other drivers on the road thus maintaining safe lane regulations (Advanced Technology Media
Briefing,” 2019).
Five Forces of Competition
Competition from established rivals
With much focus on unique models such as the hybrids, SUVs, 4WDs, and others,
Toyota Motors have managed to remain a top-notch corporation amid the set competition from
other organizations such as the BMW. Much of Toyota’s success can be attributed to their
marketing strategies as well as their technological innovations. They have also maintained their
number one position among their competitors by maintaining a positive brand image as well as
recommendable human resources (Fane et al, 2003).
Buyer bargaining power
3
EXTERNAL AND INTERNAL ENVIRONMENTS
4
It is clear that the buyers of Toyota cars are the main driving force for this corporation
through the amount of revenue generated. For example, buyers can select other cars from other
corporations thus lowering the revenues that Toyota makes. Such reactions may arise due to a
lack of proper information from Toyota. Also, Toyota rivals might exaggerate their product’s
information thus affecting buyer preferences. In the real sense, Toyota products are way much
appreciated by buyers all over the world and thus making their bargaining power undisputed.
Future Improvements
As reported to Reuters, Toyota is focused on manufacturing vehicles operated on
hydrogen fuel cells that will enhance the mass passenger vehicles, run on lowered power
consumption as well as being sold at affordable prices. This future prospect is expected to kick in
in 2020 (Naomi & Shiraki).
It is also the goal projection of Toyota motors to advance a 2-liter TNGA-constructed
powertrain transmission which is designated to better driving as well as reducing carbon
emission. It is projected that Toyota’s intentions to install TNGA on 80% of their productions by
the culmination of 2023 (Yamazaki, Mori & Murase 2018).
External Threats and Opportunities
External threats
Economy stability is the main threat to this corporation. Economic recessions have
affected the sales of Toyota products all over the globe especially in the Americas. Private cars
are in many parts of the world considered as luxuries that when in some economic depressions,
people choose to use their money on other important aspects of life such as shelter, food, and
EXTERNAL AND INTERNAL ENVIRONMENTS
5
clothing instead of purchasing personal vehicles. As such, Toyota Corporation feels this effect as
their sales become limited to those who can afford this luxury (Nkomo 2013).
Opportunities
As Toyota Motors have indulged in depth on the production of hybrid eco-friendly cars
that are sociable to the environment, they have invested in affordable energy sources following
the rising rates for petroleum products. This step comes as an opportunity for the corporation as
they are winning buyers over as their hybrid vehicles are not expensive and can be afforded
globally. Another advantage to these hybrid products is the fact that they are efficient in
operations as well as better and luxurious driving mechanisms that are characterized by rapid
acceleration, simplified braking and easy recharging (“Motor Plus Engine. Double power for
smart operation,” 2019).
Another opportunity the corporation holds is the power to seize the urban influential
markets. The corporation has at recent times manufactured models that are specifically designed
to suit the youth markets. Models such as the Toyota Aygo is one of these brands. On the same
point, Toyota Motors have enabled credit assistance among other marketing strategies that
enable the youth in the purchase of their vehicles. This credit plan is an opportunity as other
competitors have failed in initiating it.
Threats and Opportunities strategies
Providing youth with flexible credit plans has been a great strategy for Toyota. This
strategy has been beneficial in increasing the sales of its productions at a high frequency. There
is also a heartening stratagem to this corporation to continue in producing eco-friendly hybrids
EXTERNAL AND INTERNAL ENVIRONMENTS
for the sake of humanity’s future. To progress its sales capacity, Toyota should strategize on
lowering its rates on these hybrids and gradually eliminating its production of petroleum engine
vehicles. As such, the ongoing effects will preserve Toyota’s position as the world’s top car
manufacturers.
Looking on the threat from economic unpredictability, Toyota Motors must bid its
clienteles with better credit plans with a longer imbursement period, expressly in such dreadful
times. As such, they would assure that their clienteles are able to afford these products even
when their economic conditions do not allow for such expenditures.
Strengths and Weaknesses
Strengths
Ovidijus Jurevicius provides insights about the strengths and weaknesses of Toyota
Motors in the format of a SWOT analysis. In his exertion, it is declared that Toyota Motors is
marked the foremost car company in fabricating more than ten million automobiles in a single
year. This achievement among many strengths has turned Toyota Motors the most appreciated
company in the world esteemed at 50.291 billion USD.
The key strength associated with Toyota Motors is its innovative culture. Toyota Motors
have maneuvered their goals in being the leading producer of great vehicles thus leading in the
automotive industry. This achievement is made possible by having a high-tech research facility
system totaling to 15 research stations that work envisioned at producing environmentally
friendly and operational efficiency vehicles for their customers (Jurevicius 2019).
6
EXTERNAL AND INTERNAL ENVIRONMENTS
7
Another strength associated with Toyota Motors is its popularity in the world. Constantly
since 1937, after Toyota’s incorporation, Toyota Motors has preserved a popular position among
its contestants. Toyota brand is classified 7th in the world with no other adjacent competitor in
the industry. Conferring from Interbrand, Mercedes Benz follows at position 7 while BMW
appears in position 13 (Interbrand).
Weaknesses
One of the main weakness inherent to Toyota Motors is the fact that they have depended
on external suppliers for their machinery. This reliance arrays from simple chunks to the engine.
As such, this reliance has decelerated the production of Toyota Motors as compared to the rate of
production was the corporation producing all the spare parts itself (Lincoln, Ahmadjian & Mason
1998).
Another weakness of Toyota Motors is not having total recognition in all it’s makes. At
the instant, only Toyota and Lexus brands have attained a successful worldwide
acknowledgment. This datum alienates Daihatsu C-HR, Camry, and Toyota-Hino among other
fail to reach the popularity required to succeed in their sales.
Strategy
According to Jurevicius, the main strategy Toyota Motors have maintained is being and
remaining the world’s innovator and producer of high-tech vehicles that are environmentally
friendly. They are fixated on three chief R&D areas which are advancing on their existing
models as well as producing better models compared to their contestants such as BMW,
Mercedes Benz amid others (Jurevicius 2019).
EXTERNAL AND INTERNAL ENVIRONMENTS
Ghemawat provides a precise strategy Toyota Motors can use to promote their sales and
production of their models would be to focus on promoting its unpopular brands such as the
Toyota-Hino, Camry and the rest. This strategy would aid in enhancing customer preference to
Toyota as well as heightening the sales of their cars (Ghemawat 2005).
8
EXTERNAL AND INTERNAL ENVIRONMENTS
9
References
Tajitsu N. & Shiraki M., “Toyota plan to expand production, shrink cost of hydrogen fuel cell
vehicles.” Reuters. (2018, July 26th.) retrieved from: https://www.reuters.com/article/ustoyota-hydrogen/toyota-plans-to-expand-production-shrink-cost-of-hydrogen-fuel-cellvehiclesidUSKBN1KG0Y0?feedType=RSS&feedName=businessNews&utm_source=dlvr.it&ut
m_medium=twitter
Yamazaki, D., Mori, A., & Murase, E. (2018). The development of a new V6 3.5 L turbocharged
gasoline engine (No. 2018-01-0366). SAE Technical Paper.
Nkomo, T. (2013). Analysis of Toyota Motor Corporation.
Diamond, D. (2009). The impact of government incentives for hybrid-electric vehicles: Evidence
from US states. Energy Policy, 37(3), 972-983.
Toyota Motors Corporation. Advanced Technology Media Briefing, (2019). Retrieved from:
https://www.toyota-global.com/innovation/safety_technology/media_tour2013/
Coup, D. (1999). Toyota's approach to alternative technology vehicles: The power of
diversification strategies. Corporate Environmental Strategy, 6(3), 258-269.
Motor Plus Engine. Double power for smart operation. (2019). Retrieved from:
https://www.toyota-global.com/innovation/environmental_technology/hybrid/
EXTERNAL AND INTERNAL ENVIRONMENTS
Essays, UK. (November 2018). Factors influencing the business environment of Toyota.
Retrieved from https://www.ukessays.com/essays/marketing/factors-influencing-thebusiness-environment-of-toyota-marketing-essay.php?vref=1
Jurevicius O. (2019, January 10th). A SWOT analysis of Toyota (6 Key Strengths in 2019).
Retrieved from: https://www.strategicmanagementinsight.com/swot-analyses/toyotaswot-analysis.html
Interbrand. (2018) Retrieved from: https://www.interbrand.com/best-brands/best-globalbrands/2014/ranking/
Lincoln, J. R., Ahmadjian, C. L., & Mason, E. (1998). Organizational learning and purchasesupply relations in Japan: Hitachi, Matsushita, and Toyota compared. California
Management Review, 40(3), 241-264.
Ghemawat, P. (2005). Regional strategies for global leadership. Harvard business
review, 83(12), 98.
10
Running head: WEEK 3 ASSIGNMENT 1
Week 3 Assignment 1
Eric T Smith
Strayer University
BUS499 Business Administration Capstone
Dr. Brian Grizzell
January 20, 2019
1
WEEK 3 ASSIGMENT 1
2
Week 3 Assignment 1
The events of globalization and the technological revolution undermined the traditional
brick and mortar way of conducting business operations in corporate organizations. In addition,
these developments increased competition between organizations and consequently a decline in
profit margins due to increased consumer awareness. Accordingly, today firms are obliged to
pursue strategic business management activities to ensure that they remain competitive in the
consumer market (Hanson, Hitt, Ireland, & Hoskisson, 2016). Such models of management include
the Industrial-Based Model and the Resource-Based Model. Furthermore, today organizations
often review their visions and mission to align with the dynamic trends in the contemporary
business world. Stakeholders in an organization also play a vital role in ensuring that the values
and culture of an organization are maintained. This report will discuss the aforementioned issues
in business management by reviewing the market position and performance of Toyota Motor
Corporation which is leading global automotive company.
Globalization
Arguably, today the world is a global village due to the ease of commuting from one region
to another, a phenomenon that is known as globalization (Hanson et al., 2016). Globalization may
also be defined as the process through which organizations spread their business operations into
other countries. Globalization is today pursued by firms since it allows for rapid vertical integration
and the increase of brand equity and consumer base (Hanson et al., 2016). In addition, technology
today allows an organization to run its business activities in onother countries virtually without
having to physically have offices in the country. Toyota Motor Corporation has been at the
forefront of globalization and internationalization through the introduction of branches in most
parts of the world and this has allowed the company to achieve unprecedented growth. Today,
WEEK 3 ASSIGMENT 1
3
Toyota Motor Corporation has branches in over 170 countries despite the fact that it originally
founded in a small town in Japan (TOYOTA, 2019). Notably, the need to internationalize was
driven by intense competition from other automotive companies such as Ford that had already
internationalized and this prompted Toyota to spread its business operations to other counties of
the world especially in Europe and America to retain a competitive edge in the automotive sector
(Nkomo, 2013). The strategy was overly effective since it allowed the company to be among the
leading car manufacturers globally rather than in Asia only.
Technology
Technology is today the driver of innovation and invention in production methods in what
is known as the fourth industrial revolution (Schwab, 2017). The main drivers of the technological
revolution have been the internet, automation, big data analytics, and the internet of things (IOT)
which have continued to redefine how business operations conducted in organizations (Morden,
2017). Diffusive and Disruptive technologies have profoundly impacted production methods of
automobiles in Toyota factories and continue to define the nature of business activities in Toyota
Motors Corporation. For instance, the recent innovations and growth in popularity in Electronic
cars has prompted Toyota motors to start the manufacture of electronic cars to compete with the
other electronic automotive car makers such as Tesla and Ford (TOYOTA, 2019). In addition, the
company leverages in innovations in technology on its manufacturing processes mainly through
the use of robots and automation in production lines, and the use of composite materials in
production. Technology is also extensively used in research and development activities in the
company. For instance, testing for the safety of cars and new designs is mainly conducted through
virtual simulations rather than physical crash tests which are expensive to conduct. Toyota makers
also rely on internet technology to market and sell their products to consumers. Through its
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websites, customers have the ability to select the type of car they would want to be built and the
even make an online payment (TOYOTA, 2019). This diffusive technology of e-commerce has
allowed Toyota to increase its online brand presence.
Industrial-Based Model
An Industrial organization (IO) model may be defined as a field in economics that is
concerned with the strategic management of firms, regulatory policy and competition in the
consumer market (Albany.edu, 2019). The two main models of business organization are the
industrial-Based model and the resource-based model (Albany.edu, 2019). The industrial
organization theory argues that factors outside the organization define the strategic management
operations of a business. The automotive industry is characterized by stiff competition due to a
large number of car manufacturers and the small market size of car consumers. In addition, the
level of consumer awareness in the industry is high and therefore car buyers have high bargaining
power and this undermines the profitability of the business (Nkomo, 2013). These unfavorable
external environment factors have continued to define the nature of business operations in Toyota.
Similarly, car manufacturing companies competing with Toyota also have access to the resources
that Toyota has and this further undermines the competitiveness of Toyota in the external market.
To remain competitive in the consumer market amidst the unfavorable external market condition,
Toyota motors rely on strategic and innovative management of its business operations.
Resource-Based Model
Unlike the Industrial-based model, the resource-based model of management which adopts
an external perspective, the resource-based model adopts an internal approach and contends that
the unique internal characteristics of a company define its nature of business operations and
organization (Albany.edu, 2019). The internal business organization of Toyota Motors is robust
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due to the well-trained human personnel and experience car production. In addition, Toyota has
adequate business structures and infrastructure mainly due to its large size given that it is among
the leading automotive company globally (Nkomo, 2013). Toyota also has huge brand equity with
Toyota cars known for their durability and relatively low costs of ownership (Nkomo, 2013).
Overall, it can be argued that Toyota has a favorable internal environment owing to its sheer size
and a long history of producing cars. However, like most large companies Toyota faces the risk of
failing to manage its internal affairs. Nonetheless, Toyota has continued to achieve a steady growth
its financial statements an indication that its internal environment continues to make it competitive.
Vision
A vision statement is used by companies to describe their future ambitions and objectives.
As such, vision statement allows a company to align its business operation with its future goals
and accordingly guarantee the success of the company in the future (Morden, 2017). The vision
statement of Toyota motors corporation is ‘Toyota will lead the way to the future of mobility,
enriching lives around the world with the safest and most responsible ways of moving people’
(TOYOTA, 2019; n.p). In summary, the mission statement posits that the long-term aim of Toyota
is to provide people with efficient mobility services. This vision has continued to influence the
nature of business activities in Toyota.
Mission
On the other hand, a mission statement describes an organization's current state of business
organization as well as its goals and objectives (Morden, 2017). Unlike a vision statement, a
mission statement gives an overview of the immediate goals of an organization. The mission
statement of Toyota is "To attract and attain customers with high-value products and services and
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the most satisfying ownership experience in America" (TOYOTA . 2019;n.p). The mission
statement shows that the immediate goal of Toyota is to offer quality services to consumers.
Stakeholders
Stakeholders in an organization play a vital role in ensuring the overall sues of the
organization. The most critical stakeholders in any business are the customers since they are the
main source of revenue for a business (Morden, 2017). To customers, their main requirement
from the company is the production of high-quality vehicles. Employees and stockholders are
also vital in ensuring the sues of Toyota since they directly provide the resources required for the
production of cars in Toyota. Employees and stockholders require that their dividend and salaries
are paid on time to ensure that they perform optimally. Other minor stakeholders in Toyota are
suppliers and community who also contribute to the success of Toyota.
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References
Albany.edu. (2019). I/O Model. [online] Available at:
https://www.albany.edu/faculty/es8949/bmgt481/lecture2.html/ [Accessed 21 Jan. 2019].
Hanson, D., Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2016). Strategic management:
Competitiveness and globalisation. Cengage AU.
Morden, T. (2017). Principles of management. London: Routledge.
Nkomo, T. (2013). Analysis of Toyota Motor Corporation.
Schwab, K. (2017). The fourth industrial revolution. Crown Business.
TOYOTA . (2019). Toyota Motor Corporation Global Website. [online] Available at:
https://www.toyota-global.com [Accessed 21 Jan. 2019].
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