Business Strategies for Toyota in Australia

Business Strategies

EXECUTIVE SUMMARY
Business strategy is a course of action which is used to achieve the set of objectives of
business. This is adopted by the organizations to create a competitive position in the entire
market place. In this context, the current study is based on the application of business strategies
which are used by the Toyota, Australia. The company is using different strategies to develop a
competitive position in front of the competitors. However, on the basis of evaluation of current
strategies of Toyota, it has been recommended that company can stay on the business level
strategy in the form of differentiation. Moreover, networking is also suggested for the Toyota to
produce innovative products with collaboration and partnerships of the parties. Although, the
organization is already engaged with all these strategies but these are suggested to expand the
business and maximization of asset value with the help of the networking.

Table of Contents
1.0 INTRODUCTION.....................................................................................................................1
2.0 IDENTIFYING THE STRATEGIES........................................................................................1
2.1 Corporate level strategy.........................................................................................................1
2.2 Business level strategies........................................................................................................2
2.3 Network, partnerships and alliances strategy........................................................................4
2.4 Global strategies....................................................................................................................5
3.0 EVALUATING CURRENT SUITABLE STRATEGY OF TOYOTA....................................5
3.1 Different strategies used in Toyota........................................................................................6
3.2 Recommendation...................................................................................................................7
4.0 CONCLUSIONS.......................................................................................................................8
5.0 REFERENCES..........................................................................................................................9
List of figures
Figure 1: Business-level generic strategies......................................................................................2

1.0 INTRODUCTION
Strategic management is a process which involves the identification, description and
application of the relative strategies to achieve specific goals, better performance and attain
competitive advantages (Freeman, 2010; Wheelen & Hunger, 2011). Business strategies can be
successful in the situation of strong competitive level, better financial performance and leading
growth of business. The current report is based on the identification of business strategies of
Toyota, Australia. In this context, analysis has been carried out for different types of strategies
including business level, corporate, global and networking etc. Apart from this, suitable strategy
has been selected for an organization and accordingly recommendations have been provided for
continuous improvement.
2.0 IDENTIFYING THE STRATEGIES
Different strategies applied by business are explained into the four major categories-
2.1 Corporate level strategy
Corporate level strategies are long term planning which allows adjustments according to
uncertainty and changing market conditions. The major concern of the strategy is allocation and
optimum utilization of resources for the benefit of organization (Ramamurti, 2012). The three
main types of corporate strategies are Growth, stability and Retrenchment strategies.
 Growth Strategy- This strategy is based on the concept of generating more profit and
sales revenue from the existing goods and products. Growth Strategy mainly refers as
vertical and horizontal expansion strategy where vertical strategy contains growth by
taking over the various part of operational department, for example a restaurant decides
to farm its own ingredient which means it is taking over the supply chain operation which
results in better quality and supply needs (Prange & Verdier, 2011). In the same context
horizontal strategy refers as business expansion of existing products and service in new
geographical areas or to target new audience.
 Stability Strategy- According to stability strategy, to maintain the market share, company
leaders retain its present strategy at corporate level and continues focus on existing
products. This neither ensure profit nor loss of the business rather concentrate on
increasing the overall rate of return of the business. However, it proves to be effective in
1