1. Strategic managementtoyota case study PresentationTranscript
 AhmadU3072227 ArioArdiantoBarotoU3088020 FatimaAl Ghardaqa U3035594 Julie Wang
U3060588 TseringChodenU3105935
 PresentationOutline Introduction General EnvironmentAnalysis IndustryEnvironment
Analysis CompetitorsAnalysis Internal EnvironmentAnalysis SWOTAnalysis
Recommendation Conclusion
 Introduction Inceptionof Toyota – FoundedbyKiichiroToyoda,Japanesebusinessmanin1937
3rd positionedinautomotive companyinthe currentmarket Competitorsof Toyota- General
Motors and Fordin UnitedStatesandHonda inJapan. Sale of Vehicle byunit- 8.871 million
units NetIncome earnedin2013 - Yen 962.1 billion
 General EnvironmentAnalysis The general environmentanalysisprocesshasfoursteps:
Scanning,monitoring,forecastingandassessing(Hansonetel.2011). Has six segments:
Demographic:Toyotafacesa decreasingpopulationinJapan(-0.1%) Macroeconomic: -
Interestrates,exchange rates&inflation.Rise inYenmakesJapanahighcost production
location& requiresToyotatomove productionoverseas
 General EnvironmentAnalysis Political/Legal: - Lawsenactedinsome countriestoreduce Cos
create challengestoToyota. Socio-cultural:- Changesinvaluesandpreferencesof customers
and the societyatlarge providesboththreatsandopportunities. Technological: - There isa
technological shifttakingplace intheautomobile industry.while Toyotacontinuestostickwith
hybridtechnology,othercompanies(suchasGMwiththe ChevyVolt) are startingtointroduce
all electricvehicles. Global: - The move towardthe globalizationof marketsrequiresToyotato
become more of a global company.
 The Four Characteristicsof global economy1.The economicintegration2.The capital
movements3.Productionhasnocorrelationtothe employment4.The internet
 Porter’sFive Competitive Forces
 Competitive environmentanalysis9.60% 7.60% 7.00%5.90%5.30% 5.10% 4.80% 3.10% 2.40%
2.30% AutoIndustryMarketShare in2013 Toyota VolkswagenFordChevroletHyundai Nissan
Honda KiaRenaultFiat
 NetIncome Comparison20529 18950 18994 18584 1082 1550 3418 6380 2717 6557 20222
5664 0 5000 10000 15000 20000 25000 2009 2010 2011 2012 M i l l i o n s ToyotaVolkswagen
Ford
 Contrastof Sale 0 1000 2000 3000 4000 5000 6000 7000 8000 9000 10000 2009 2010 2011 2012
T h o u s a n d s Toyota VolkswagenFord

2.  Internal EnvironmentAnalysisToattract & attaincustomerswithhigh-valuedproducts&
services&the most satisfyingownershipexperience inAmericaTobe the mostsuccessful &
respectedcarcompanyin AmericaWorlddominationwithregardtocar supply.The company
seekstoachieve marketleadershipbydeliveringvalue tocustomers&providinghighquality
vehicles
 Internal EnvironmentAnalysisCORECOMPETENCIESProduce - What isneeded - Inthe amount
that isneededTotal qualitycontrol All workerstomeetcustomers’needsInvolve all workersin
the company(BEING INCLUSIVE) - To achieve total effectivenessof the productionsystem - To
ensure total productive maintenance Computerintegratedmanufacturingtoinclude: - Design-
Production - Distribution - Aftersalesservice - Supportinthe field - Use computers&IT
 Internal EnvironmentAnalysisVALUECHAIN OFTOYOTA1.Efficient&effective marketingand
salesservice a.Qualifiedstaff b.Marketingprogram(OhWhata Feeling)2.Supplyaftersales
service a.handle complaints&provide solutionsb.provide salestraining3.Efficientproduction
methoda.Toyota has qualityinstrumentstoassemble&tune new car enginesb.Hasan
effectivemethodof stoppingworkif there isaproblem – therefore there isnopoorquality4.
Uprightinboundlogisticsensures:a.The clients’demandsare metb.therefore there isno
storage costs or wastage doto lack of demand5. Good accessibility:a.Toyotamanagesitsown
showroomsinall countriesb.Toyotadoesnotoutsource itsservicesc.the products are easily
accessible &theirvaluesare notinflated.
 SWOT Analysis
 RecommendationBusinesslevelstrategy>> Focus on technologyandinnovationofHybrid
vehiclesasfuture differentiationstrategy Developfuel efficient,compactvehiclesfor
emergingmarketsFunctionallevel strategy>> Operationstrategy: Focuson productquality
control,continuouslearningandimprovementonmanufacturingsystemsforefficiency
Marketingstrategy: Reinforce Toyotabrandimage torestorereputationandbuildbrand
loyaltytoincrease value of Toyota
 RecommendationEnhance marketshare >> Developpresence inemergingmarkets;Chinaand
India Concentrate onUSA marketby Americanizethe design,productionandmarketing
InvestandexpandinEuropeanmarket Continuouslearningandimprovementof Toyota
productand processthroughtechnologyandinnovation Increase customerresponsiveness;
identifyandsatisfyneeds,improvesupportandaftersale services
 Conclusion Toyotahassourcesof strong competitiveadvantagesinglobalautomotive
industry,suchas TPM, value chain,strongbrand,wide productofferingandhybridvehicles
Major recalls,economiccrisis,natural disastersandintenseglobal competitionhave posed
seriouschallengeforToyota Growingemergingmarketsandshiftingcustomersdemandsoffer
opportunitiesforToyotato attainsuperiorprofitabilityandgrowth Toyotamustsustainits
competitiveadvantagestoretainitspositionandachieve futuresuccess