Business Portfolio and Dynamic Capability Report Presentation

This presentation discusses the business portfolio analysis of Toyota Motor Corporation using BCG Matrix and GE Matrix. It also covers the dynamic capability analysis of the company. The presentation recommends that the company should focus on expanding its business into emerging countries, prioritize safety of its customers, and produce energy-saving and environmentally conscious products. The subject of the presentation is not mentioned.

Business Portfolio and
Dynamic Capability
Report Presentation

BUSINESS PORTFOLIO ANALYSIS OF TOYOTA MOTOR
CORPORATION
Toyota motor corporation would be the best choice for our case study
since it has such as a long history in the motor industry.
The company also has over time recorded good performance therefore
serving as a good model to learn from.
The corporation has different business units which are managed
differently.

The BCG Matrix
• Toyota is a multinational corporation and by the use BCG Matrix we
can be able to know where each product from the different business
units falls.
• As discussed earlier, BCG matrix classifies products into stars, cash
cows, question marks or even dog.
• In each stage, the company takes a specific action to ensure it remains
relevant.
• This model facilitate the corporation in treating each brand of a
product in the best deserving way.

BCG Matrix Cont.…
HIGH MARKET SHARE LOW MARKET SHARE
RAPID MARKET GROWTH RATE STARS
• Lexus
• SUV land cruiser
• Hybrid model of Prius.
QUESTIONN MARKS
• Hybrid model of Toyota Camry
and Toyota corolla.
• Diesel cars for the market in India
and the southeast part of Asia
• The scion brand used by the
youths in the USA
• Small cars in the Chinese and
Indian market
SLOW MARKET GROWTH RATE CASH COWS
• Toyota Camry
• Toyota sedan
• Daihatsu (small cars)
DOGS
.Toyota Celica for youths
Toyota MR2 for youths.
The markets in UK and Europe which
are declining
Toyota Tundra (pick-up)

BCG Matrix Cont.….
STARS
• As observed in. stars happens to be the greatest support f a business. They occupy
the largest market share and also have the highest growth rate.
• In our case, we have the Lexus, land cruiser SUV and the Prius hybrid.
• as discussed earlier this model helps the cooperation know the right action to take
in each category.
• In this case the corporation wise step is to hold the brands in the market and also
protect the market share.
• This steps ensures the company stays at the top f its key competitors.

BCG Matrix Cont.….
Question marks
• This are some of the potential brand that a company may have.
• there is great hope in this brands/ product as they have a high growth
rate despite them occupying a small market share.
• In our case, the corporation has great hopes in brands such as scion.
Camry among others.
• The company now aims to see that this brands occupies a bigger
market share
• All it is doing here is trying to build these brands so that they can
penetrate into the market.

BCG Matrix cont.…
Cash Cows
• This are products that are already at their maturity stage.
• The products already occupies a big market share but on the same
note do not have an appealing growth rate.
• In our case study, the corporation has several brands such as corolla
Camry and the Innova.
• in this category, the company seem to be harvesting so as to get a lot
of profits before it starts declining.

BCG Matrix Cont.…
Dogs
• This are product that are at their worst stage. They experience the
lowest market growth and also occupies a small market share.
• in the Toyota corporation, such brands includes Celica and the tundra
pick-ups.
• the company here is working in diversification where the look for
alternative brands.
• it could also decide to completely drop the product.

GE Matrix
BUSINESS
STRENGTH/
POSITION
HIGH Invest
selectively
Grow or
invest
Grow or
invest
MEDIUM Either harvest
or divest
Invest
selectively
Grow or
invest
LOW Either harvest
or divest
Either
harvest or
divest
Invest
selectively
LOW MEDIUM HIGH
ATTRACTIVENESS OF THE INDUSTRY

GE Matrix cont.….
• As observed, the nine cells can be grouped into three categories as
the colors explicitly show.
• This simplifies the decision making process in the strategic
management.
• Below are the faces:
1. Go on
This phase passes a signal that one can go ahead to making decision.
For example, since Toyota has been globally accepted, it should now go
ahead to perusing larger markets for its corolla brand.

GE Matrix cont.….
2. Take time and watch
This phase on the other hand directs a company to hold on the current
strategies.
In our case, the brands that falls on these category are Cuore and
Quaris. The company is giving this product some good promotion
techniques.
In some cases brands in this category turns out to be the best giving the
company some huge amounts of profits.

GE Matrix cont.….
3. Halt
This is a stage that gives a directive to a company to stop or rather drop
the product.
This makes the company avoid dangers that would arise from arise
from uninformed decisions.
The company is able to stay in an updated position at all times.

Business portfolio recommendation.
• This corporation should work hard in the expansion of its business into the
emerging countries. This can only be possible by a thorough monitoring of
the markets so as to know any changes. A big market share is an added
advantage over its competitors as observed in the analysis.
• The company should also strive to establish strong production and supply
structures so as to attain a good and favorable pricing as well as deliver its
products in all its market in the right time. This enhances the customer
service the company gives to its customers. this is a source of competitive
advantage.

Business portfolio recommendation cont.…
• the company can work in making the Lexus brand a priority in the
Chinese region. This is one way of making the company competitive
enough especially in the case of luxurious category.
• Another recommendation will be for the corporation to increase the
number of production facilities in the region of Asia. This will aid in
the creation of delivery channels that are cheap and close to the
customers.
• The company should also do away with the position of middle
management to enable engineers have a bigger authority on the
customers needs in a car and specification and also i8n the
development of new cars.

Business portfolio recommendation cont.…
• Toyota had really done a lot in securing its market share where it has
outperformed the industry in a great way. the company should now
work toward producing smaller vehicles that re fuel economical for
the growth of economies.
• The company should also seek to know the neglected category of
people in the economy so as to satisfy them accordingly. This will
ensure that they have covered the market conclusively.

DYNAMIC CAPABILITY ANALYSIS.
• For a company to continue thriving in search an environment, it must
have great dynamic capabilities.
• The environment surrounding every business is not static and
therefore keeps on changing with time.
• Toyota Motor corporation has however continued build and integrate
both its internal and external competencies in response to the
changing environment

DYNAMIC CAPABILITY ANALYSIS cont.….
IDENTIFYING AND ASSESING OPPORTUNITIES
• This company has set its bar very high when it comes to assessing and
identification of opportunities.
• The company heavily relies on the SWOT analysis as a model assessing
its environment and this has been one of its main success contributor.
• The company has also invested heavily on research and development
and this helps a lot in identifying trends in the industries and also new
tastes of the customers.

DYNAMIC CAPABILITY ANALYSIS cont.….
MOBILISATION OF RESOURCES
The company has put into place GREAT STRATEGIES TO ENSURE that it
effectively mobilize resources.
One of the ways this has happened is by ensuring that its methods of
product6ion are cost effective . The value chain process is also cost
effective to ensure the end product is at a friendly price to the
customer.
The company has also continually invested in the promotion of its
products in the region it is already in and also in the region it is aspiring
to venture in.

DYNAMIC CAPABILITY ANALYSIS cont.….
TRASFORMATION AND RECONFIGURATION OF STRATEGIC ASSETS
• Toyota motor corporation has been widely known by how they
coordinate and integrate their internal assets.
• This has remained to be one of the major reasons the company has
maintained such a high level of performance.
• This has been possible by their efforts to link the experience of the
customers with the design choices available in the engineering
docket.

DYNAMIC CAPABILITIES RECOMMENDATIONS
• Despite the great success made by the company, it still has some
responsibilities to improve their current state of dynamic capabilities.
• The company has been innovative but it need to now focus on
production of products that are energy saving and at the same time
environmentally conscious as well as incorporating the features that
are demanded by the customers. this will make their products more
appealing even to low income earners.

DYNAMIC CAPABILITIES
RECOMMENDATIONS Cont.….
• Toyota also has a great responsibility in prioritizing safety of its
customers by creating products that are safe for usage. This will
indirectly enhance their dynamic capabilities as customers will prefer
their products.
• The company should also stress on the compliance of the laws set by
the relevant government as well as actively participating in social
activities. This will enhance their image to the general public.
END

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