Business And Marketing Case Study About Toyota Automobiles (Essay Sample)

Toyota Automobiles
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Identify the firm’s existing vision, mission, objectives, and strategies.
Toyota Automobiles is one the world’s largest and most popular automobile company. The firm has created a vision, mission, objectives and strategies so that long term sustainability and growth of the business could be attained. These are stated as follows.
* Mission:
The mission of the company is to develop and create safe working environment so that the employees in different countries could retain the various benefits out of business operation. Moreover efforts are made to develop such products and services that offer value to the business. Another mission of the company includes honoring the language and spirit of the law in different countries. This way the company attempts to apply corporate social responsibility in different countries so that the local culture and customers can be supported. Hence growth of business along with the welfare of the global community is actually considered as the mission of the company.
* Vision:
The vision of the company is to develop automobiles which leave lesser harm to the nature. Also the working process follows Kaizen technique under which continuous improvement is achieved in the business process so that errors could be avoided and cost effective production system could be applied. In addition the company is trying to develop engines for its automobiles that are hybrid and offers better mileage, lower maintainence cost and lesser emission of carbon in atmosphere.
* Strategy:
The strategy of Toyota Automobiles is towards following government regulations in Australia and other countries that directs towards improvement in present products and output function. This way a transformation strategy is aimed by the company through development of new business model that will not only generate good revenue but will also fulfills all the requirements of the business in terms of improved quality, increased productivity and reduction in cost of operation.
* Objectives:
The main objectives of the Toyota Automobiles are to spread the business in various countries and become global leader. Also efforts are made by the company to attain top position in the automobile market so that the competition in the global market could be taken care of.
Develop vision and mission statements for the organization.
The vision and mission statement of Toyota Automobiles is developing products and services that leave lesser or no harm to the eco system. Attempts are made in developing products and services following lean production system under which lesser wastage and high output is achieved. In addition the company has vision to develop new hybrid engines for its automobiles that will depend on renewable sources of energy as fuel. Concentration is therefore made towards removing dependence of automobiles from nonrenewable energy source so that clean and green environment can be ascertained CITATION Toy17 \l 1033 (Toyota.com.au, 2017).
(A) Identify the organization’s external opportunities and threats. (b) Develop PESTEL
The external opportunities and threats of Toyota Automobiles include the followings.
* Opportunities:
1 The future of automotive industry is bright as the number of buyers has increased by manifolds in the last decade.
2 People are increasingly concerned about the environment and therefore the new engines developed by the company could attract more customers.
3 The rising prices of traditional fuels have supported the demand for hybrid engines which are the next stop of the company.
4 Government subsidies on developing hybrid engines have supported this mission with financial support from different government agencies around the world.
* Threats:
1 The number of sellers is increasing at high rate. There are many global level sellers which posing huge challenge to the company business.
2 The existing development in the hybrid system is not enough to attract and impress the customers through credible outcome.
3 The development of technology has increased at so high pace, that the existing technology is becoming obsolete.
4 The continuous maintenance required for automobiles are actually adding to the disinterest of the customers towards company products.
PESTLE for Toyota Automobiles can be stated as follows.
P-Political

Toyota Automobiles is following all government regulations in different countries.

E-Economic

Economic growth back from global slowdown is supporting the company’s business.

S-Social

The income distribution and lifestyle changes are supporting the expansion and growth of the automobile industry.

T-Technological

New inventions and innovations are developed to meet the future demands of the customers.

L-Legal

Tax policies and employment laws are followed in different locations of the business around the globe.

E-Environmental

Environment related regulations are followed effectively.

Construct a Competitive Profile Matrix (CPM).
The competitive profile matrix for Toyota Automobiles can be done as follows in which the comparison is made with General Motors, Ford and Daimler Chrysler.
Industry Information

General Motors

Ford

Daimler Chrysler

Toyota

Critical Success Factor

Weights

Ratings

Weighted Score

Rating

Weighted Score

Rating

Weighted Score

Rating

Weighted Score

Global Expansion

0.11

3

0.33

2

0.22

2

0.22

3

0.33

Financial Position

0.09

4

0.36

3

0.27

3

0.27

3

0.27

Growth

0.13

3

0.39

2

0.26

1

0.13

4

0.52

US Market Share

0.15

4

0.6

3

0.45

2

0.3

2

0.30

Product Quality

0.11

3

0.33

4

0.44

3

0.33

3

0.33

Customer Loyalty

0.12

3

0.36

4

0.48

4

0.48

3

0.36

Model/ Styles

0.09

4

0.36

3

0.27

3

0.27

3

0.27

Hybrid/ fuel efficient vehicles

0.14

2

0.28

3

0.42

2

0.28

2

0.28

Management experience

0.06

4

0.24

3

0.18

3

0.18

3

0.18

Total

1


3.25


2.99


2.46


2.84

From the above analysis of the CPM it is clear that their exists high competition between the global leaders General Motors, Ford, Daimler Chrysler and Toyota. However Toyota Automobiles has been able to secure third position in this evaluation stating that the company has a very close competition with other automobiles company.
Construct an External Factor Evaluation (EFE) Matrix
The External Factor Evaluation or EFE matrix for Toyota Automobiles can be stated as follows.

Weight

Rating

Score

Opportunities




Growing market

0.13

4

0.52

Changing customers preferences

0.10

3

0.30

Wage scales in smaller firms

0.12

2

0.24

Government support

0.08

2

016

Innovative work practices

0.09

4

0.36

Threats




Increasing maintenance and oil cost

0.07

3

0.21

New Labor laws

0.05

3

0.15

Competitors and market saturation

0.12

4

0.48

Japanese economy

0.12

2

0.24

Unknown new markets

0.12

3

0.36

Total

100


3.02

Identify the organization’s internal strengths and weaknesses.
The internal strength and weaknesses of Toyota Automobiles include the followings.
* Strength:
1 The company has become the most trusted brand in the global economy offering innovative culture to the employees.
2 The brand reputation of the company is valued at $30 billion.
3 The company has become industry leader in production and sales.
4 The company has created an effective and impressive brand portfolio.
5 The company has become world leader in producing green cars.
6 The company has displayed strong financial performance in the past decade.
7 The company has applied effective production system that gives out error free and low cost outcomes.
* Weakness:
1 The company had to make large recalls of its products that are automobiles in the early 21st century.
2 The company has weak presence in the emerging market.
3 The company has observed falling profitability due to rising competition.
4 The expenditures of the company are rising towards offering retirement benefits to the employees.
Construct an Internal Factor Evaluation (IFE) Matrix.
The internal Factor Evaluation or IFE matrix for Toyota Automobiles can be displayed as follows.

Weight

Rating

Score

Strength




Flexible production

0.12

4

0.48

Quality, durability and reliability

0.12

4

0.48

Management philosophy

0.05

4

0.20

Worker productivity

0.14

3

0.42

Product strategy

0.10

4

0.40

Weakness...