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Toyota Strategic Management Assessment
Toyota's dominance in the global automotive industry is the result of their ability to orchestrate many potentially conflicting priorities into a common strategic direction. The Toyota Production System (TPS) is a case in point, which is one of the most advanced planning, scheduling and supply chain management (SCM) systems and architectures globally (Fane, Vaghefi, Cheryl, Woods, 2003). Despite these strengths however, Toyota struggled with the areas of enterprise quality management and governance of their fast-moving supply chains (Heller, Darling, 2011). This shortfall in quality contributed to the threats mentioned in this analysis. The rejuvenation of the company from these crises led to the opportunities also mentioned here.
Threats
The most significant threat to Toyota's ability to serve its stakeholders and make its mission a reality is the increasingly aggressive nature of competition in their business. This threat is multidimensional in scope, with their distribution and...
Toyota has faced significant competitive threats from domestic U.S. And other foreign auto manufacturers for decades, and has found their supply chain to be an effective deterrent to the low-price moves of competitors (Kurihara, 1990). Another threat to the stakeholders of Toyota is the declining sales of their most popular models in their most profitable areas of the world, including the United Sates, through 2011 (Heller, Darling, 2011). The slow-down from the recession continues affect Toyota's ability to compete to their fullest potential using their supply chain, logistics and production systems. This threat to stakeholder performance of reduced sales throughout geographic regions has also contributed to poor allocation of resources relative to peer auto manufacturers in Japan and globally (Boysen, Bock, 2011).
Opportunities
Toyota has found a strong alliances with…
References
Boysen, N., & Bock, S. (2011). Scheduling just-in-time part supply for mixed-model assembly lines. European Journal of Operational Research, 211(1), 15.
Fane, G.R., Vaghefi, M.R., Cheryl, V.D., & Woods, L.A. (2003). Competitive advantage the Toyota way. Business Strategy Review, 14(4), 51-60.
Hatani, F. (2009). Pre-clusterization in emerging markets: The Toyota group's entry process in china. Asia Pacific Business Review, 15(3), 369.
Heller, V.L., & Darling, J.R. (2011). Toyota in crisis: Denial and mismanagement. The Journal of Business Strategy, 32(5), 4-13.
Therefore, they use strict evaluation criteria to make choice among different alternatives. Keeping in view the strength of customers' bargaining power, Toyota and other automakers are expending huge amounts on advertisements and promotional campaigns to create awareness about their brands and convince these customers to prefer them over all other brands (Jenny & Scammon, 2010). 5. Internal Environmental Analysis for Toyota Motor Corporation 5.1. The Resources Types: Like other types of business
Analysis of Toyota Opportunities and Threats Toyota is the world's leading patent holder in hybrid vehicle technologies, having over 85% of all patents registered in the U.S. Patent Office, in addition to holding over forty different patents in other registries throughout Europe and Asia. This is a formidable platform for growth in this high-growth emerging line of business. Hybrid technologies can reduce carbon emissions by over 60% in the latest engine
3. What are the main developments that have enabled more flexible work arrangements to flourish? The pervasive adoption of the Internet as a means to collaborate, communicate and accomplished shared objectives has been the single greatest contributor to the development of virtual teams. The many software applications that are used across the Internet, from shared workspaces called groupware and secured portals to real-time chat and collaboration platforms designed to secure connect
Figure 2, Guiding Principles at Toyota, shows the conceptual model of this initiative in the context of Toyota's strategic human resources plan. Figure 2: The Toyota Way 2001 Source: (Toyota Code of Conduct, 2007) Training a Core Cultural Component What has become accentuated in the Toyota culture is the intense focus on training and certifications. For production staff members to be promoted they must go through three weeks of pre-promotion training and review
12. It has not been implemented in a wide enough spectrum to really gain the attention of parents on a national level. 13. Marketing towards one single brand image sometimes limits a company's capability to market its diversified product line. 14. Targeting previous customers through follow up ay waster valuable resources. T h r e a t s 1. Utilize the global Toyota presence to keep financial budgets and cash flows under control. 2. If
Use of single version of the truth and single information Balanced set of strategic metrics (Financial and non-financial). New methods of cost accounting (ABC, Target Costing). Internal vs. External Focus (Benchmarking and Self-Assessment). Process Management and Measures (value delivery). Stakeholder value measures Uniform set of measures Causal relationships between measures across all levels. Source: Lieberman; (1994; et.al.). Automotive Industry Analysis Entering 2007 it is clear that Japanese firms, lead by Toyota, will be at parity with and potentially surpass the