Mitigation and Adaptation Strategies

Running head: BUSINESS STRATEGY
Business Strategy
Name of the Student
Name of the University
Author Note

BUSINESS STRATEGY1
Table of Content
Introduction................................................................................................................................2
Part A:........................................................................................................................................2
Critically evaluating both the internal and external threats and weaknesses of Toyota Motor
highlighting weaknesses and threats and the areas which need to be improved....................2
Part B: Evaluation of the business strategy................................................................................4
Part C:.........................................................................................................................................8
Reflecting on the strategy processed model...............................................................................8
References..................................................................................................................................9

BUSINESS STRATEGY2
Introduction
This research report provides a detailed analysis of the weaknesses and threats of the
organization Toyota Motor. As the global Automobile sector has been dynamic, there have
been several changes in the market requirements which are creating enormous pressure on the
organization. Thus, the organisation in the automobile sector is in the rush of developing or
incorporating a new strategic initiative to beat the industry competition. However, it can be
mentioned that as the global economy is trembling, the longstanding automobile giant like
Toyota may face a great level of business risk. On the other side, it is noted that a constant
shift in consumer taste and preferences is another challenge the large motor vehicle
manufacturer might have to deal with to remain the incumbent player in the market.
Part A:
Critically evaluation of both the internal and external threats and weaknesses of
Toyota Motor
Like every large sector making its presence globally has never free from the influence
of market drivers. According to Simão and Lisboa (2017) businesses in the automobile sector
has shifted the focus from the traditional fossil fuels vehicles to sustainable vehicles. It has
been identified that due to the global concern of environmental sustainability, the vehicle
manufacturers are looking for a solution that can be a pollution-free solution to a greater
level. Thus, the organisations with high Research & Development capabilities can
significantly join the race of technology-based solutions, while traditional mass-market
players like Toyota must have to face the challenge as it is not yet joined the race.
The TOWS matrix can be mentioned to be as follows:

BUSINESS STRATEGY3
Hence, from the given Tows matrix it can be reflected that the firm needs to align the
internal weaknesses and external threats with each other accordingly.
Weaknesses:
 Toyota has undergone numerous vehicle recalls in the last five years, which
significantly damages the financial performance and tarnished its brand image. For
example, Toyota and its Luxury brand have issued a recall for 1.7 million cars across
the globe and almost 1.3 million of which were sold in the United State. As put
forward by Paul (2018), the recall is because of faulty Takata-made airbag inflators
which have led to 23 deaths as well as 290 injuries across the globe. Consequently,
there have been a series of lawsuits tied to car failure and this has significantly caused
the damage both in financial and brand’s name.
 The organization Toyota Motor does not have a strong presence in emerging presence
in spite of the opportunities for the future development inclusion China or India the