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Proposal of a New Division
Joanna Dennerlein
Bus/475
4/30/18
Victor De Jesus
Toyota New Product Division
Dennerlein
Introduction
Toyota Motors is global manufacturing company that deals with manufacture, sale and
assembling of motor vehicles and their spare parts. Its headquarters are in Toyota city in Japan
where it was founded by Kiichiro Toyoda in 1937.It manufactures different brands of motor
vehicles and motorbikes which are widely accepted. The company sells its products to many
countries. It also has various manufacturing companies in different cities of the world. Due to
its well-planned management strategy, it is able to have large sales volume from exports. This
ensures high profitability. Having different manufacturing companies in the world, this helps
bring products and services closer to the customers. This shows that it has a very strong
distribution network. Many companies have been set up to compete with Toyota but it has
remained one of the most reliable companies. It produces quality products while focusing on
innovations in vehicle brands. Unfortunately, it hasn’t advanced in terms lubricants.
The New Toyota Division Product
The production of different motor vehicle lubricants will enhance the core values and
vision of the company. Lubricants ensure that the motor vehicles are serviced and their parts
do have a long lifespan. The product in the new division will help meet the expected standards
of the company and will go in line with the vision of the company to offer quality and durable
products The mission will be, to have many customers with high-quality products (Hubbard and
Galvin 33).
The vision will be, to become the most reliable and respected company in the world.
Lubricants will have different types to fit the vehicle brand needs and ensure customer
needs are met. All these lubricants will be packaged in cans and will have different ratings and
quantity in terms oil thickness and thinness. Prices will also vary with quantity to accommodate
different customers. Motor oil is used to control breakdown, reduce parts wearing out. Grease
ensures that the steering parts remain intact. Gear oil is used to control temperatures especially
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when it is high. Electronic grease which doesn’t conduct electricity helps reduce the heat that
builds up in a vehicle. Graphite lubricant is used in door locks to ensure they are free from oil.
The purpose of having different kinds of lubricants is because of different vehicle parts which
require different servicing. This product ensures vehicle parts last longer and many customers
will save their money from frequent breakdowns.
Customer Needs and Competitive Advantage
Toyota new product division will look into customers’ needs in various unique ways.
These lubricant containers will be labeled smartly and clearly to ensure a customer takes what
is required thus ensuring customer satisfaction. Frequent and loyal customers will get discounts
on our products. This improves the customers’ confidence in the company. Packaging the
product differently in terms quantity ensures portability as the customer can easily carry during
travel. It gives the company confidence, respect and helps it remain more competent in the
market.
The division will also work on a strong distribution strategy. This is to make sure that
the product has a direct link with the customer who needs it. Timely and instant product
manufacture will also make sure a customer doesn’t go unattended. A quality product is what
keeps a customer and this will improve competitiveness in this division. In case of customer
complaints, the division will make a thorough follow up and make sure the issues are resolved
to a customer’s satisfaction (Motohashi 239). Through the consistent provision of reliable, quality
and presentable products, a customer will always choose the division for its products.
Business Vision and Model
Referring to the vision is the most reliable and respected company in the world, the
division will consistently deliver and sell products to the customers. The division will
manufacture enough products to meet the demand and supply to our customers. This also
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ensures affordability in the market. Through packaging in different quantities, types, and cans,
the customer will have an easy time choosing what he or she needs. In the division, we will put
up a nice display of the products on our shelves to enhance proper identification by our clients.
The model used has to be unique and will ensure more productivity. In this division,
we will adopt a cost-effective model. This means that we will operate at low cost and thus
having fewer expenses. This also means buying products for use in our division at a lower cost
in the shortest time possible to meet our customers demand. Another model is proper
coordination with our suppliers of raw materials. This will help us acquire high-quality
materials for a lower price. Another model is production quality where our division will be
keen in the production process to ensure quality output. This will ensure we are in line with
our mission and vision of being a respectable company globally.
Aligning Division with the Company
The mission and vision of the company go hand in hand with that of the division. Focus
goes to the customers and the quality of products sold to them. Just like the company, the
division targets many customers by offering high-quality products. The vision is to ensure the
company is respected and the division ensures that by offering quality products and selling as
many products as much through our various distribution channels. The mission on the other is
about creating a big customer base through quality and the division does that through
competitive business models which help reach out to many customers as possible.
Proper management ensures that the mission and vision are adhered to. Without this,
the division and even the company will count losses. Management also plays a big role in
shaping the future of the company and division. High levels of integrity are valued in the
division to ensure no one goes outside the rules that will not go in line with the missions and
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vision of the company. Quality is another issue that makes the division well aligned with the
mission and vision of the company, it ensures quality product sale.
Strategic Direction
When a division adheres to the rules, values, vision, and mission that guide the
company, it becomes easy to have a strategic direction towards more growth and meeting all
the goals a company sets. The vision defines why the division was created and why it stands.
The mission shows the objectives of a company which the division must undertake as well.
With these clear definitions, the division is able to stick to the main agenda it is mandated with
(Maddocks 3-4).
Leaders and staff in the division are required to play their roles effectively and
in return, this will help guide the division into a good strategic direction. Integrity in the
division will ensure that the company retains its reputation. Quality of products also determines
the strategic direction in that it promotes continued production and profits. Therefore,
following the vision and mission statement well ensure a good strategic direction for the
company.
Guiding Principles
Quality products and customer satisfaction is the main driver (Nkomo 4). For proper
and legal operations, the division will ensure it follows government regulations in offering its
products. Ethically, fraud and poor quality production won’t be tolerated since that goes against
the company’s mission. In case of integrity issues, one will be subject to scrutiny and also could
get fired (Blankenship 185). The division will uphold environmental cleanliness by disposing of
waste as required. When it comes to employment, the locals will not be left behind and will
earn a livelihood in the division.
It is also good to follow the cultural practices where the division is set, this will
promote social cohesion and also improve the division’s mission of a high customer base. In
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dealing with the locals, the division will ensure there is no discrimination of any kind towards
employees or the customers. In ensuring a peaceful work environment, the division will
promote good working relationship to ensure good cohesion. .It would be vital to indicate that
workers need good incentives. They deal with customers mostly and this will help motivate
them to ensure their output is good. This will guide in meeting what the mission states.
Punctuality cannot be overlooked as a guiding principle, it is so important to ensure timely
product service to the customer. This ensures good workflow
All the above are in line with mission and vision statement of the company. Having
them work jointly will ensure large volume sales, more customers and increased profit margins.
The growth will be enhanced and will further motivate the company in enlarging its territories.
Increase in employment opportunities will see many get to earn through our division and the
company at large. It will be hard to look elsewhere for products since our quality is irresistible.
Works Cited
Blankenship, James C. "SCAI's Future: The 2016 Strategic Plan." Catheterization and Cardiovascular
Interventions 87.2 (2016): 183-187. Web.
Hubbard, , Graham E. Al, and Peter Galvin. Strategic Management. Sydney: P. Ed Australia, 2014. Internet resource.
Maddocks, Tom. "Coping With The Media In A Crisis: Succeeding Where BP And Toyota Have
Failed." Strategic Direction 29.6 (2013): 3-4. Web.
Running head: SWOTT ANALYSIS
SWOTT Analysis
Joanna Dennerlein
Bus/475
May 7, 2018
Victor De Jesus
SWOTT ANALYSIS
2
SWOTT Analysis of the new Toyota division Product
SWOTT analysis is crucial while examining the internal and external factors influencing
a market or product. It is the most renowned tool for audit and analysis of overall strategic
position of the business and environment in which it operates. It views all the positive and
negative factors that arise inside and outside the firm. This factors usually have great impact on
the growth of a company. In existing businesses firms adopt SWOTT to determine their position
in the market places. SWOTT offers a company choices to determine the possible strengths,
weaknesses, opportunities, threats available and future trends of the market. SWOTT is split into
two categories which include external and internal factors. A consistent study of the environment
where a firm operates, changing trends also help in the process of decision making.
This paper will depict an in-depth understanding the internal and external factors
affecting the Toyota new division product. The analysis will present an in depth understanding
Toyota division ought to offer the best quality services to its customers but the SWOTT
considerations must be put in place. Once they are analyzed the company can generate revenues
with ease.
SWOTT ANALYSIS
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SWOTT Table for Toyota new product division
Strengths
Weaknesses
Opportunities
Threats
Trends
1. The company
enjoys a solid
financial position
2. It employs and
advanced Toyota
Production
System (TPS)
3. use of
advanced
technology and
capabilities
4. The company
has strong
leadership
structure and
positions
1. The company
relies heavily if
Japanese and
American
markets
2. There is a
concern about the
passenger’s
safety.
3. Increasing
product recall
4. The company
is appearing
weak in
emerging
markets
5. Limited
flexibility due to
company’s size
large size
1. The company
has invested on
automated
driving
technology
2. Possibility of
product and
business
diversification
3. The product is
focused more on
developing and
emerging
markets
4. It has
concentrated in
development of
more improved
electric cars
1. Intensified
innovative
competition from
other producers
2. Oil prices
fluctuations
3. Increased
concerns about
safety and health
4. High costs of
raw materials
1. The company
has been
complying with
necessary legal
requirements
2. The company
has an evergrowing GDP
3. Has continued
to support new
businesses
5. Toyota
concentrates on
customer’s needs
External forces and trends considerations
Assessing external environment helps strategy planners identify key opportunities and
threats in the environment and compare them with internal strength, weakness and trends of the
firm.
Legal and regulatory forces
SWOTT ANALYSIS
4
Being a key aspect in the current growth of businesses Toyota new division should ensure
that their product legal requirements have been met. Registration of this lubricant product should
be put in place. The business should also acquire a legal permit to enable it carry on its
operations. At Toyota new division technology has also been adopted to ease the accessibility of
the product. Though this is a crucial are New Toyota has ensured that only reliable transactions
are made through this websites. Regulatory bodies pertaining technology privacy have been put
in place. Through this the company result the long run have been boosted.
Economic Factors
As the introduction of this new product in the market is significance the economy of the
country too will push toward generation of revenues. The profitability of company is determined
by growth per earning share. New Toyota division will take into account the present economic
trends. Due to the use of cars all over the world the motor lubricant product is a strength in the
market. Through understanding of this economic condition new Toyota will develop a
competitive market.
Technology
The new Toyota has adopted technological approaches Because of the current drift in
advancement of technology, New Toyota division has adopted this. Technology positively or
negatively affects the growth of a company. If used appropriately with all security measures the
well-being of New Toyota division will be seen. On the other hand technology is a threat since it
can tarnish the image of the company if used inappropriately.
Competitive analysis
SWOTT ANALYSIS
Toyota motors being a global company is at a safer side introducing the new division
product. First the company image is good and also individuals are conversant with this industry.
The company brands are also well known. Introduction of this lubricant will ease its penetration
in the market since it can be sold together with other Toyota brands.
Internal factors
Strategy
Toyota new division have strategized in a product that is new in the market. Toyota
motors in the past have not produced motor lubricants. As a result this entry of this new product
will be adopted in the company positively. Toyota new division have ensured that its motor
lubricant products are widely available to all.
Goals
In the mission and vision definition the main goal of Toyota new division is to provide
customer satisfaction. This will be seen through provision of quality motor lubricant products at
the most affordable cost. New Toyota division will also ensure that its customers are always
given the first priority. In turn this will 5result to generation of higher profits while building the
goodwill of Toyota Company.
Culture
This is a basic key on whether the need of the customers is supplied in relation to their
cultural beliefs. Toyota new division has ensured that all people’s different cultures are
preserved. Through production of lubricants which meet the demands of the customers without
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SWOTT ANALYSIS
6
necessarily affecting their personal beliefs. This will promote social cohesion and improve
division’s mission of customer’s base.
Strategies and capabilities
Toyota new division have put into consideration the capabilities of possible threats in the
market. This can be as a result of price wars, increased completion leading to excess capacity,
unrest among employees thus reducing the company’s profits. The following can internally
affect the organizations thus stability and survival can be at stake. Toyota new should ensure that
its prices for the lubricant commodities are favorable.
The supply chain of new Toyota division aims at introducing this lubricant product in line
with its initial Toyota motors product. In order to make a positive impact on the model the new
division has enabled that the supply of the lubricant is accessible. This will meet the demands of
the customers who are royal to Toyota brand products. Other stakeholder in the firm are also
given an opportunity to incorporate their ideas in the business.
Strategic planning will help the new division to scam the environment thoroughly. This
helps adopt to changes in business environment such as financial crisis. As a result the primary
objective is to produce lubricants in Toyota new division. The plan in new division have been
communicated to all employees in the organization to make them aware of the objectives,
mission and purpose.
Major opportunity that New Toyota division encounters is the ability to produce a
commodity that is in much need as per its existing products. Being a leading company in the
motor vehicle manufacturing industry introduction of this product will boost the total sales. Also
a centered business operation will be developed because all these products are enclosed in on
SWOTT ANALYSIS
line of business. Toyota new division will also have to market its products intensively in the
market to ease penetration.
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SWOTT ANALYSIS
8
References
Bradford & Duncan (2000). Simplified Strategic Planning (3rd Edition). New York: Chandler
House.
Groonroos, C. (2004). The relationship marketing process. Journal of Business & Industrial
Marketing, 19 (2), 99-113, Retrieved August 7, 2009 from
http://www.emeraldinsight.com/Insight/ViewContentServlet?Filename=Published/Emera
ldFullTextArticle/Articles/0800190202.html
Kotler, P. (2002). Marketing Management (11th Edition). New York, USA: Prentice Hall Pvt.
Ltd.
Payne, A. & Frow, P. (2005, October). A Strategic Framework for Customer Relationship
Management. Journal of Marketing, 69, 167-176. Retrieved August 7, 2009 from
http://www.sirim.my/techinfo/P1/Management/Sept-Oct05/sept-oct05_article10.pdf
Pierce, J. & Robinson, R. (2004). Strategic Management (eds.). New York: McGraw Hill
Companies.
Rapacz, D. & Reilly, M. (2008). The New View of Relationship Marketing: Better integration to
deepen brand commitment. Journal of Integrated Marketing Communications, 19-25.
Retrieved August 7, 2009 from
http://jimc.medill.northwestern.edu/JIMCWebsite/2008/RelationshipMarketing.pdf
Running head: BALANCED SCORECARD AND COMMUNICATION PLAN
Balanced Scorecard and Communication Plan
Joanna Dennerlein
Bus/475
5/14/18
Victor De Jesus
1
BALANCED SCORECARD AND COMMUNICATION PLAN
2
Balanced Score Card and Communication Plan
Strategic Objective Summary
Strategic management is a critical activity in monitoring the performance of businesses.
The balanced scorecard is one of the most potent tools for strategic planning. It enables
organizations to set strategies that allow them to align tasks, communicate with stakeholders as
well as measure and monitor progress. In the process of strategic management, the firm can
identify and improve the internal functions such that the results are viewed externally. The
balanced scorecard enables managers to develop new organizational goals, mitigate risks or even
recognize critical trends in business. The article provides an analysis of Toyota Motors
Company’s balanced scorecard together with the communication plan that it influences. The
strategies outlined in the two items, however, align the company’s vision, mission statement and
values with the SWOT analysis as well as the supply chain.
Strategic Objectives
Toyota Motors Company intends to develop a new product which is the motor vehicle
lubricant. The product will be of different types to meet the various customer needs. Vehicles
cannot function efficiently without oil that services multiple parts to enhance the durability of the
car. The various types of lubricants that the firm will develop will improve value by offering
durable products at an affordable cost. The thickness and thinness of the products will also vary
according to the requirements of the customers. The oil will be packaged in cans that are easy to
carry.
Financial perspective
BALANCED SCORECARD AND COMMUNICATION PLAN
•
3
The new product in the market will increase the firm’s market share. The high quality of the
lubricants will attract customers from various parts because it will meet their needs (Goetsch, &
Davis, 2014). In addition to this, the new product will save the clients’ money because of its
durability.
•
The high demand for the new product will enable the organization to develop a revenue base
of $20Million within five years of the product release.
•
Toyota Motors remains one of the highly competitive organizations in the motor vehicle
industry. The new product will further enhance the competitiveness. The high quality of the new
products will further provide the firm with a competitive advantage.
•
The sales from the new product will increase the company’s profits by 10% within five years.
Customer value perspective
•
The new product will increase customer satisfaction significantly. Toyota Motors is already
an established organization in the market. The development of a lubricant that will vary in design
to suit the needs of the customers will further improve their perspective.
•
The new product will open up job opportunities for the public which will enhance the living
standards of individuals. New employees will engage in the marketing of the new product to
present to the public, a product that is more superior to those of the competitors (Goetsch, &
Davis, 2014). As a result, service delivery will improve together with an increased ability for
bulk delivery.
BALANCED SCORECARD AND COMMUNICATION PLAN
•
4
The development of a high-quality lubricant will increase the demand which will further
enhance customer retention. In return, the consumer spending in the motor vehicle industry will
rise, and as a result, the overall US economy will develop.
Internal operations perspective
•
The new product will lead to the development of stronger alliances among both local and
international partners. The organization will form strong bonds with its partners to improve
marketing strategies that will curb the ever-rising competition.
•
Toyota Motors will adopt quality management technologies that will monitor the process of
product development to enhance quality.
•
The development of the new product follows research on the market niche. This way the firm
can develop a new product that will drive change into the motor vehicle industry.
Learning and growth perspective
•
The employee involvement in the new product development will lead to increased employee
satisfaction. Further, the improved revenue from the sale of the new product will lead to
increased employee compensation (Cassidy, 2016). It will further boost their morale so that the
overall productivity of the firm increases.
•
Higher employee satisfaction will also increase employee retention so that the rate of
turnover decreases significantly.
•
The new product requires the development of new technology. The technology will improve
the production process regarding speed and accuracy while the employees learn new skills.
BALANCED SCORECARD AND COMMUNICATION PLAN
5
Balanced Score Card
Perspectives
Questions
Goals
Measurements
Customers
How do customers see Improving customer
Using a customer
us?
satisfaction by 9% in
satisfaction score that
two years’ time
will allow customers
to rate their
satisfaction on a scale.
Increasing customer
Determining the
retention by 4% within abandonment rate to
two years
identify which
products that
customers did not
purchase.
Increased customer
Measuring the
value by 20% within
customer’s lifetime
the next five years
value
Conducting a scan on
the customer service
call log to identify
customer experience
BALANCED SCORECARD AND COMMUNICATION PLAN
Financial perspective
6
What are the
Increasing market
The increased market
shareholders’
share by 10% in the
share will be measured
interests?
next three years
by comparing the
organizational revenue
with the sales value
Calculating the
Increasing revenues by number of units of the
15% in the next five
item sold
years
Improving competitive Determining the rate at
position by 8% in the
which the
next two years
commodities move
Calculating the
profitability of the firm
compared to the
competitors
Process perspective
What is the firm
Improving product
The adoption of
doing?
quality
quality assurance
strategies like ISO
certification
BALANCED SCORECARD AND COMMUNICATION PLAN
Productivity
7
Using Multifactor
improvement by 4% in productivity to
the next five years
measure growth in
value-added output
Impacting societal
Defining the customer
change
transition to the new
product
Collecting customer
views on the new
product
Learning and growth
How are the
Increasing employee
Calculating the rate of
employees benefiting
satisfaction by 2% in
employee absenteeism
from the firm?
the next two years
Participating in
employee engagement
surveys
BALANCED SCORECARD AND COMMUNICATION PLAN
8
Reducing employee
Determining the
turnover by 5% in the
retention rate across
next three years
departments
Calculating voluntary
turnover where
employees leave the
firm for better
opportunities
Adopting
Determining data
technological
quality
innovation
Communication Plan
A communication plan refers to the approach that firms adopt in communicating their
strategies to the relevant stakeholders. Toyota Motors will develop a communication plan that
they will use to describe their new objectives to the stakeholders to improve performance (Slack,
2015). The project will as well outline the communication channels that the firm will use to get
the information to the audience. The audience for the communication plan includes the
employees to inform their role in the implementation of the strategies. The firm's administration
BALANCED SCORECARD AND COMMUNICATION PLAN
9
and the Board of directors also need to get a copy of the company's plans. The firm will use
internal memos to get to the employees and the administration. It will also send emails to each of
the board members so that everyone gets the information. In addition to this, it will also post the
info on the official website to inform the external stakeholders.
References
BALANCED SCORECARD AND COMMUNICATION PLAN
10
Cassidy, A. (2016). A practical guide to information systems strategic planning. CRC press.
Goetsch, D. L., & Davis, S. B. (2014). Quality management for organizational excellence. Upper
Saddle River, NJ: pearson.
Slack, N. (2015). Operations strategy. John Wiley & Sons, Ltd.
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