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Choose an organisation with which you are familiar, write a strategic plan (for simplicity, you might choose to focus on an undiversified business or a business unit within a larger corporation). Where data are missing, make reasonable assumptions or propose ways of filling the gaps. You will provide the data and argument in support of a strategy for the selected organisation.

Mission and vision of the company

Toyota Motors is a Japanese multinational automotive manufacturing company that was founded in the year 1937 by Kiichiro Toyoda. Toyota is ranked at number two among the world’s largest automotive companies. The company has its presence in almost every part of the world that includes Japan, Australia, Africa, Canada, India, Malaysia, Thiland, Egypt, France, Brazil and many more. UMW Toyota motor is the distributor of Toyota in Malaysia that assembles and exports Toyota vehicles in Malaysia (Toyota Motor Corporation Global Website 2017).

Mission and vision of the company:

The company believes in values that it cherishes. The company wants to become a company that customers prefer and a company that the customers would happily prefer. Toyota’s vision is to lead the way to the future wherein the company can enrich the lives of the people by providing them the safest means of transport. Toyota is committed to provide superior quality and innovation in their cars. The company aims at meeting the challenges by engaging talented and passionate people who are capable of finding better ways (Toyota Motor Corporation Global Website 2017).

On critically analyzing the mission and vision of Toyota, it has been found that the company has contributed towards the mission and vision of enriching the lives of the people by offering them safest means of transport. The company has improved its safety features in the vehicles that has led to very less records of injuries in accidents. Toyota cars meet all the aspects of safety and it has made travelling safe for its users. The company has also hired exceptional employees that are always engaged in making the vehicles advanced and safe.

Goals and objectives of the company:

On critically analyzing the goals and objectives of Toyota, it has been found that since its establishment, Toyota has been utilizing its Guiding Principles to deliver dependable vehicles and reasonable improvement of society by utilizing inventive and excellent items and services. The essential outlook sought of individuals working at Toyota, concentrates on particular standards for representatives to shoulder as a primary concern (Toyota Motor Corporation Global Website 2017).  

  • Respect the dialect and soul of the law of each country and embrace open and reasonable business exercises to be a decent corporate resident of the world.
  • Regard the way of life and traditions of each country and add to monetary and social improvement through corporate exercises in their separate groups (Forsgren 2017).
  • Commit the business to giving spotless and safe items and to improving the personal satisfaction wherever through the greater part of our exercises.
  • Make and create propelled innovations and give exceptional items and administrations that satisfy the necessities of clients around the world (Rowland 2015).
  • Encourage a corporate culture that upgrades both individual innovativeness and the estimation of cooperation, while regarding shared trust and regard amongst work and administration.
  • Seek after-development through amicability with the worldwide group by means of inventive administration (Toma and Naruo 2017).
  • Work with business accomplices in research and fabricate to accomplish steady, long haul development and shared advantages, while keeping ourselves open to new associations (Toyota Motor Corporation Global Website 2017).

Toyota Environment is a piece of the key Corporate Social Responsibility (CSR) programs attempted by UMW Toyota Motor, Malaysia. Maintainability and the Earth have dependably been an essential piece of Toyota culture (Toyota Motor Corporation Global Website 2017). On worldwide scale, Toyota endeavors at each level to be ecological from building up the Hybrid innovation to streamline its procedures and frameworks at assembling plants. Their neighborhood exertion gladly has its spot adjacent to these other eco activities by Toyota Worldwide. On a local scale, UMW Toyota Motor's ecological exercises have likewise affected their partners in different nations, as proven by Toyota Eco Youth, spearheading accomplishment in Malaysia that was later received in Indonesia and Japan (Grünig and Kühn 2015).

Goals and objectives of the company

Political Factors 

Toyota is liable to the effects of political conditions (Rothaermel 2015). This part of the PESTLE examination demonstrates and distinguishes the impacts of political factors on firms. In case of Toyota, the following are the noteworthy political outside elements in the remote or large-scale condition:

  • Political steadiness in most significant markets (opportunity)
  • Organized commerce rise (opportunity)
  • Administrative help for eco-friendly items (open door)

Economic Factors  

Financial patterns affect Toyota's authoritative advancement (Chung Leng, Hamid and Bakar 2014). This measurement of the PESTLE examination demonstrates the impacts of monetary circumstances or changes on business. For Toyota's situation, the huge financial outside variables in the remote or large-scale condition are as per the following:

  • Weaker Yen versus Ringgit (opportunity)
  • Continuous development of Malaysian economy (opportunity)
  • Quick development of creating nations (opportunity)

Toyota has the opportunity to improve its fares from Japan in view of the shortcoming of the Japanese Yen. Likewise, Toyota has the chance to develop its business in the Malaysia, which is the company's potential market after Japan. On the other hand, the fast development of the economies introduces the open door for the firm to enhance incomes in view of these business sectors (Acharya 2014).

Social/Socio-cultural Factors:

Toyota encounters the impacts of social or socio-cultural elements. This measurement of the PESTLE examination display relates to the effect of socio-cultural patterns on business. For Toyota's situation, the accompanying are the fundamental social/ socio- cultural outside elements in the company's remote or large- scale condition:

  • Expanding enthusiasm for automotives (open door)
  • Expanding enthusiasm for electric cars (opportunity)
  • Broadening riches crevice (danger)

Technological Factors:

Innovative elements affect Toyota, particularly on the grounds that it is a mechanical business. This measurement of the PESTLE examination demonstrates the impact of advances or mechanical patterns. For Toyota's situation, the accompanying are the most striking innovative outer figures the organization's remote or large scale condition:

  • Rising utilization of internet business (opportunity)
  • Versatile innovation drift (opportunity)
  • Cybercrime (danger)

Toyota has the chance to enhance its web based business abilities or to abuse outsider internet business specialists for offers of some of its items, for example, save parts (Toyota Motor Corporation Global Website 2017). Additionally, Toyota has the chance to improve its versatile applications to build client engagement and reliability. Be that as it may, the organization must solve the issue of cybercrime, including corporate digital undercover work (Lucky and Takim 2015).

Environmental Factors:

Toyota needs to incorporate environmental worries in its vital basic leadership. This measurement of the PESTLE investigation distinguishes concerns with respect to the indigenous habitat in connection to business. For Toyota's situation, the major biological/ecological outer calculates the remote or full- scale condition are as per the following:

  • Environmental change (opportunity)
  • Declining worldwide oil saves (opportunity)
  • Expanding accentuation on business maintainability (opportunity)

Toyota has chances to give all the more naturally benevolent items, for example, electric cars or vehicles with higher fuel proficiency. The organization additionally has the chance to build its maintainability execution through changes in business productivity (Jiang et al. 2015).

Managing Principles at Toyota

Legal Factors:

Legitimate frameworks affect Toyota's business (Hill, Jones and Schilling 2014). This measurement of the PESTLE examination decides the laws and controls that influence business. For Toyota's situation, the accompanying are the most noteworthy lawful outer figures the remote or large scale condition:

  • Enhancing licensed innovation laws (opportunity)
  • Progressively perplexing ecological laws (opportunity)
  • Progressively perplexing buyer laws (opportunity)

Value: Yes, since it has been demonstrated to keep creation costs low.

Rarity: Yes, without a moment to spare generation is a prevalent system utilized by organizations in all enterprises; be that as it may, Toyota's philosophy is exceptionally uncommon (Nkomo 2013).

Inimitability: Yes, many organizations have attempted to reproduce the framework; however none have possessed the capacity to do it in as effective.

Organization: Yes, Toyota has been utilizing this framework since the 1960's and have been idealizing it en route (Adolph, Tisch and Metternich 2014).

 

Figure 1: VRIO framework (Source: Nkomo 2013)

On analyzing the core competencies of Toyota, it has been found that the center skill of Toyota Motor Corporation is its capacity to create vehicles of extraordinary quality, best-case scenario costs, along these lines giving an incentive to cash to the clients (Toyota Motor Corporation Global Website 2017). This center skill of value can be credited to its creative creation hones. The quality part of Toyota's items have reformed the vehicles in the past and all the vehicle organizations needed to attempt and better the nature of their items. It is a foundation of the cost authority procedure that the organization seeks (Vogel 2016).

Toyota's unmistakable capability is its generation framework known as the "Toyota Production System" or TPS (Toyota Motor Corporation Global Website 2017). TPS depends on the Lean Manufacturing idea. This idea likewise incorporates imaginative practices like Just in Time, Kaizen, and Six Sigma and many more. Toyota has worked energetically finished the years to set up this unmistakable capability. No other car producer can do it and in addition Toyota does. This unmistakable capability has prompted an upper hand that has given Toyota a maintainable brand name and a market pioneer position (Morgun and Vishnevskaya 2013).

Threats

  • Intense rivalry: The overall car industry is exceedingly aggressive. Toyota faces solid rivalry from car producers in its different markets. The opposition among different automotive players is probably going to strengthen in light of proceeding with globalization and solidification in the overall car industry. The variables affecting rivalry incorporate item quality and elements, the measure of time required for advancement and improvement, valuing, dependability, wellbeing, mileage, client administration and financing terms. Expanded rivalry may prompt lower vehicle unit deals and expansive stock, which may bring about descending valuing weight, accordingly affecting the money related condition and consequences of operations of the organization (Toyota Motor Corporation Global Website 2017).

Opportunities

  • Growing worldwide car industry: The worldwide car industry was extremely influenced by the monetary downturn, with a decrease in incomes being recorded in 2008 and 2009. Be that as it may, 2011 saw a solid bounce back which has proceeded into 2012 (Gao and Low 2014). The recuperation of worldwide car industry consequently gives Toyota a chance to acquire clients and increment incomes.
  • Strong standpoint for the worldwide new auto advertise: The worldwide new vehicles showcase had encountered direct development amid 2008-2012. Be that as it may, estimates propose this will quicken to solid twofold digit development amid the 2012-2020 periods (Toyota Motor Corporation Global Website 2017). In this way, the solid viewpoint for the worldwide new vehicle showcase combined with the organization's new item dispatches gives a development open door for the organization.  .

Weaknesses

  • Product reviews could influence mark picture: Toyota has directed various product recalls in the current past, which could influence the brand picture and general offers of the organization. For example, in the year 2011, Toyota reviewed 111,000 models of Toyota and Lexus brands' vehicles because of the harm to components of the substrate and potential shutdown of the framework (Choi and Chung 2013).
  • Poor portion of assets when contrasted with peers: Toyota has low profit for value and profit for resources contrasted with its associate organizations. The organization's rivals, for example, Honda Motor and Nissan Motor have more ROE at the point when contrasted with Toyota (Fan, Geddes and Flory 2013).

Strengths

  • Strong market position and brand acknowledgment: Toyota has a solid market position in various topographies over the world. The organization's piece of the overall industry for Toyota and Lexus brands, (barring small vehicles) in Japan was 45.6% in the year 2012 (Toyota Motor Corporation Global Website 2017). Likewise, Toyota has a piece of the overall industry of 12.3% in North America, 13.5% share of the overall industry in Asia (barring Japan also, China), and 4.2% share of the overall industry in Europe. Also, the organization holds a 7% offer of the Chinese market and a critical share of the overall industry in South and Central America, Oceania, Africa and the Middle East locales (Rowland 2015).
  • Strong concentration on R&D: Toyota has a solid concentrate on R&D to grow its item portfolio and enhance the usefulness, quality, security and ecological similarity of its items. The organization's R&D endeavors are coordinated at creating new items and forms and enhancing the abilities of existing items. The organization leads its R&D operations at 14 offices around the world. Solid concentrate on R&D has helped the organization in fusing fresher components to its existing scope of items and furthermore in getting out most recent advancements the differed zones (Toyota Motor Corporation Global Website 2017).
  • Extensive generation and dispersion range: Toyota has a broad creation and conveyances organize. Toyota what's more, its subsidiaries deliver vehicles and related parts and segments through more than 50 fabricating organizations in 27 nations and locales other than Japan. While the organization's geologically well spread creation base enhances business dangers, its broad dispersion range gives a more extensive achieve, in this way boosting incomes (Rothaermel 2015).

SO strategies:

  • Toyota can utilize its market position and brand recognition to improve its sales and position in Malaysia
  • With the help of research and development, the company comes up with new vehicles that offer latest technologies and enhanced comfort levels that can attract the population of Malaysia (Jiang et al. 2015)

WO strategies:

  • Toyota can offer innovative products in order to overcome the losses faced as a result of decline in sales
  • The company can decrease the overall costs incurred in the production and distribution process (Rowland 2015)

ST strategies:

  • Toyota can further enhance its operations in Malaysia by setting up its production unit therein
  • Toyota can stay ahead of its competitors by carefully watching the innovations initiated by the competitors (Toyota Motor Corporation Global Website 2017)

WT strategies:

  • It can shift its operations in other countries where it can manufacture its vehicles in the most economical manner
  • The company can change its target audience and focus more upon the richer section of the society to overcome the period of saturation (Toyota Motor Corporation Global Website 2017)

The following is the SMART principle of Toyota Malaysia:

Specific: Toyota has also used SMART principles to set up its goals.  The Toyota vehicles have adapted to diversification in terms of energy. The hybrid vehicles of the company emit less carbon dioxide without affecting its performance. The electrical vehicles of Toyota emit zero carbon dioxide and are environmental friendly (Toyota Motor Corporation Global Website 2017).    

Environmental analysis

Measurable: The company has been learning from the actual accidents and it keeps improving its vehicles accordingly. The company uses the model of Integrated Safety Management to develop safe vehicles. It integrates individual safety technologies in its cars. Toyota has been involved in the research and development of automated technology of driving in order to eliminate traffic casualties (Toyota Motor Corporation Global Website 2017).

Action: The electrical vehicles of Toyota emit zero carbon dioxide and are extremely environmental friendly. The company has also set its goal to increase its sales by 30% in Malaysia by the year 2018 (Toyota Motor Corporation Global Website 2017).

Realistic: The goals of the company are realistic enough as the company is investing huge amounts in research and development to come up with innovative products that attract the attention of the target audience (Jiang et al. 2015).

Time scale: By the end of 2018, the sales are expected to increase by 30% (Toyota Motor Corporation Global Website 2017).

The following are the Porter’s five forces:

  • Competitive rivalry (Strong force):The automotive industry is highly competitive in nature especially in terms of marketing and innovation. Toyota has competition with several large and small firms. Therefore, high aggressiveness and high variety serves as a strong force of competition whereas the presence of lesser large firms serves as a moderate force of competition (Toyota Motor Corporation Global Website 2017).
  • Bargaining power of customers (Strong force): Due to presence of several competitors, the customers can easily shift from one company to other. This increases the bargaining power of the customers. The availability of information helps the customers to easily shift to other brands (Rothaermel 2015).
  • Bargaining power of Toyota (Weak force):The restricted number of suppliers forms a moderate force and influences the company. Due to the presence of substitutes, the bargaining power has shifted from the company to the buyers. A supplier has greater bargaining power when there is monopoly or when there are a few competitors. But in case of Toyota, presence of several competitors reduces the bargaining power of the company (Toyota Motor Corporation Global Website 2017).
  • Threat from substitutes (Moderate force):The customers can easily shift from one company to other without incurring any extra costs. This acts as a strong force. However, absence of convenience offered by other companies when compared with Toyota acts as a weak force that reduces the threat from the substitutes (Toyota Motor Corporation Global Website 2017). There is moderate threat imposed by the substitution effect in the automobile industry.
  • Threat from new entrants (Moderate force): The automotive industry has well established-brands that already exist in the market. It is difficult for any new entrant to give competition to the existing well- established brand. Therefore, Toyota does not face any threat from the new entrants (Toyota Motor Corporation Global Website 2017). The company faces threats from new entrants only in the form of new models launched by the existing companies (Rowland 2015).

The management information system (MIS) plays an important role in preparing the strategic plans of the organization and controlling the several departments of the company including finance, marketing and corporate strategy (Toyota Motor Corporation Global Website 2017). Toyota has efficiently used robotics to increase the efficiency in its processes (Rothaermel 2015).  

Figure 2: Value chain model of Toyota (Source: Author’s work) 

SAF:

Suitability: The company has come up with hybrid strategy that reduces the carbon dioxide emissions. Toyota produces superior quality products that are environment friendly (Toyota Motor Corporation Global Website 2017). This has increased the suitability of the company. The suitability of the strategies of the company lays emphasis on efficiently utilizing the the existing resources for creating products and services that shall satisfy the needs of the customers in the near future and shall enable the company to remain ahead of its competitors (Rothaermel 2015).

Acceptability: The advanced technology used by the company satisfies the expectations of the customers and the good quality cars compel the customers to accept the products of Toyota. Toyota has been successful in satisfying the expectations of all the stakeholders such as customers, suppliers, distributors and shareholders (Toyota Motor Corporation Global Website 2017). The company also provides authorized services for a period of three years from the date of purchase. This is done because the Toyota vehicles need sophisticated services of Toyota in order to improve its longitivity (Jiang et al. 2015).

PESTLE Analysis

Feasibility: The company produces superior quality products that use hybrid strategy to reduce the turn-around time (Toyota Motor Corporation Global Website 2017). The suppliers have easy access to the ERP system of the company that provides them proper visibility in the supply chain management of the organization. This improves the feasibility of the strategies of the company.

The following Ansoff matrix shows the proposed strategy of the company:

Market penetration

The company shall try to increase its current share in Malaysia by increasing its brand awareness. This shall involve several sales promotion techniques (Rothaermel 2015).

The company shall improve coordination among the departments to increase the work efficiency

The operations within the organization shall be flexible and shall be reviewed more frequently.

The top management shall be responsible for implementing the strategic plan and shall communicate the plan to the sub- ordinates (Rowland 2015).

There shall be a proper performance management system in order to evaluate the performance of the employees along with their achievements and failures.

Product development

The company shall be continuously involved in research and development and shall survey the needs and wants of the potential customers according to which the products shall be developed.

The company shall strive to provide better quality vehicles according to the tastes and preferences of the customers.

Proper attention shall be given to after- sale services and in maintaining good relations with the customers (Rothaermel 2015).

Market development

 The company shall find and create new markets by targeting untapped markets of Malaysia and expanding into different markets.

The company shall capture the middle class of Malaysia that is growing at a fast pace (Toyota Motor Corporation Global Website 2017).

The company shall maintain its position in market.

Product diversification

After increasing the market share in Malaysia, the company shall adopt product diversification strategy.

Product diversification is highly subjected to risks and the company must research properly before undergoing product diversification (Acharya 2014).

Sales and support group of people of Toyota Malaysia is alluding to the 3S idea which concentrating on sales, services and spare parts. The idea shall be connected at all Toyota outlets around Malaysia. Its showroom shall be found deliberately at real urban communities all through country. The availability of Toyota outlet shall depend upon the necessities at the chose area. Toyota shall constantly consider clients as their extreme need; in this way, every business faculty must show brilliant execution constantly (Rowland 2015). Their business work force shall be congenial, educated and professionally prepared before they are permitted to meet clients. Sales operation additionally shall have close connection to the board organizations particularly with Toyota Capital Malaysia Sdn. Bhd. Money related answers for budgetary help shall additionally be accommodated to the clients keeping in mind the end goal to satisfy all level of Toyota clients. Toyota shall offer various ways of life items for the group. They shall generally keep track available needs in accordance with the patterns and advancements through their statistical surveying time by time. Real accessories shall be particularly produced for Malaysian's market and accessible for all Toyota vehicles. At the point when a client buys a Toyota vehicle, he can pick accomplices to be introduced to the vehicle. All frill and items shall be offered with guarantees (Toyota Motor Corporation Global Website 2017).

There are a few fundamental things to be incorporated under the client benefit operation, which are after-deals administration and parts. After sales benefit is working to guarantee a predictable and quality after the business benefit. By this possibility, the clients may encounter the high fulfillment with respect to Toyota items and administrations. Keeping in mind the end goal to serve a huge base of clients, they have to build up a presence benefit organize in Malaysia. Toyota in the nearness having of 61 Toyota Service Centers across the country and they are as yet attempting to grow their system (Toyota Motor Corporation Global Website 2017). This development arranges are in accordance with the necessities of Toyota's worldwide benchmarks, which is to guarantee Toyota Service Centers are generally accessible and effortlessly available to all clients. The strategies if implemented shall yield higher sales and shall improve the profitability of the organization.

Capability analysis: VRIO Framework Analysis

The major challenges faced by Toyota Malaysia:

  • Decline in the overall sales of cars up to 31% after a long period of growth
  • Continuation of flat growth rate of automotive companies in 2017
  • Slow growth rate of the economy of Malaysia (Rowland 2015)
  • Severe competition from the major rivals namely Perodua, Honda and Proton.  

Conclusion:

It can be concluded that even in the highly competitive environment, Toyota Malaysia has been able to remain profitable and has developed with every passing day. However, due to the saturation of the automotive industry, the company has witnessed a flat growth over the past years. However, the company can regain its growth rate by coming up with innovative products and providing superior services to its customers.  

References:

Acharya, C., 2014. Study on Macro Analysis of Automobile Industry with special focus on Four Wheeler Segment.

Adolph, S., Tisch, M. and Metternich, J., 2014. Challenges and approaches to competency development for future production. Journal of International Scientific Publications–Educational Alternatives, pp.1001-10.

Choi, J. and Chung, W., 2013. Analysis of the interactive relationship between apology and product involvement in crisis communication: An experimental study on the Toyota recall crisis. Journal of Business and Technical Communication, 27(1), pp.3-31.

Chung Leng, K., Hamid, A. and Bakar, A., 2014. A Study on the Factors Affecting Consumers Adoption Toward Environmentally Friendly Car-Hybrid Car. In Advanced Materials Research (Vol. 860, pp. 1129-1133). Trans Tech Publications.

Fan, D., Geddes, D. and Flory, F., 2013. The Toyota recall crisis: Media impact on Toyota's corporate brand reputation. Corporate Reputation Review, 16(2), pp.99-117.

Forsgren, M., 2017. Theories of the multinational firm: A multidimensional creature in the global economy. Edward Elgar Publishing.

Gao, S. and Low, S.P., 2014. Lean construction management: the Toyota Way. Springer.

Grünig, R. and Kühn, R., 2015. Global Environmental Analysis. In The Strategy Planning Process (pp. 89-96). Springer Berlin Heidelberg.

Hill, C.W., Jones, G.R. and Schilling, M.A., 2014. Strategic management: theory: an integrated approach. Cengage Learning.

Jiang, J., Blank, A., Maier, F., Bharthepudi, A. and Kumar, P., 2015, August. Financial analysis and comparison of compact electric and gasoline cars. In Management of Engineering and Technology (PICMET), 2015 Portland International Conference on (pp. 511-518). IEEE.

Lucky, B. and Takim, S., 2015. Manufacturing Defects in the Automobile Industry, a Case Study of the Remote Causes and Effects of Toyota’s Transmission Malfunctions in Cars. IJEAS, 2, pp.15-28.

Morgun, M. and Vishnevskaya, K., 2013. STRATEGIST'S TOOLKIT: STRATEGY MAPS.

Nkomo, T., 2013. Analysis of Toyota Motor Corporation.

Rothaermel, F.T., 2015. Strategic management. McGraw-Hill Education.

Rothaermel, F.T., 2015. Strategic management. McGraw-Hill Education.

Rowland, C., 2015. Toyota’s Stakeholders: A CSR Analysis. Business Management, Sept, 24.

Toma, S.G. and Naruo, S., 2017. Total Quality Management and Business Excellence: The Best Practices at Toyota Motor Corporation. Amfiteatru Economic, 19(45), p.566.

Toyota Motor Corporation Global Website. (2017). TOYOTA MOTOR CORPORATION GLOBAL WEBSITE. [online] Available at: https://www.toyota-global.com/ [Accessed 30 Jun. 2017].

Vogel, E.F., 2016. 11 A framework of global strategic planning. The Strategic Planning Process: Understanding Strategy in Global Markets, p.361.

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