Organisational Strategy in Toyota: Analysis and Perspectives

This presentation provides an analysis of the organisational strategy of Toyota in the automobile sector. It covers macro environmental factors, industry position analysis, core competence, internal resources and capabilities, and stakeholder perspectives. The presentation concludes with a summary of Toyota's achievements and strategies.

ORGANISATIONAL
STRATEGY

 Organisational strategy in a business plays a vital role
for achieving its success. However, it is true that
without have effective strategy, it is impossible for
businesses to set up a milestones and to meet future
needs. Thus, in order to gain the organisational
objective, it is necessary that business must have
effective actions of plan. Hence, this assignment will
articulate strategic position of Toyota entity which is
conducting its business operations in the Automobile
sector.
INTRODUCTION

 In order to analyse Macro environmental factor of
Toyota, Pestle analysis will get develop trough which
all external surrounding factors will get analysed. Its
Macro external environmental factors are as follows-
• Political
• Economical
• Social
• Legal
• Environmental
MACRO ENVIRONMENTAL FACTOR

 Political: It has been analysed that Toyota has mainly
expanded its business operations in several countries so
that its demand of vehicle will get met. It has begun its
manufacturing in United Kingdom and at that time entity
is getting bigger market from the Europe for offering,
making and selling its products.
 Economical: This is the factor which mainly influences
organisational development of Toyota. However,
currency exchange rate fluctuation is the major factor
which directly impacting it’s reported revenue.
CONT..

 Technological: in terms of this factor, it had been
evaluated that Toyota is the first company which has
launch hydrogen car.
 Social: entity has mainly effects with social factors.
However, in accordance with this analysis it had been
evaluated that increasing interest of hybrid car is the
opportunity for entity to expand its business.
CONT..

 Legal: This is the main factors which greatly influence
the business of Toyota in global world. However, in
today’s world improvement of intellectual property law is
the type of opportunity for entity to expand its business
operations.
 Environmental: In the organisational strategy, entity
needs to consider environmental factors which are
different in each nation of the world and in order to get
the government as well as customer support entity needs
consider on external factors like climate change,
contribution in the business sustainability etc.
CONT..

 Current business opportunities:
 Toyota and its competitors of automotive sector have
similar opportunities. This is the era under which there
are tremendous market opportunities exists for this
sector and situation of the industry is a race among
firms in order to exploit such opportunities as soon as
possible. In today’s world there exists a competition in
terms of technological advancement in order to make
the products more attractive and profitable.
INDUSTRY POSITION ANALYSIS

 Toyota has effective core competence skills in management,
high technology and knowledge as well as with good
relationship with competitive. Entity mainly has high capability
through which it is able to give high performance and
production which made it different from competitors.
 Current threats facing Toyota:
 Major current threat for Toyota is globalisation because of
which it becomes easier for other auto manufacturer entities for
competing in bigger market. It is true that automotive firms are
generally considered as aggressive against each other in order to
provide products and services which have unique innovations
and marketing
CORE COMPETENCE

INTERNAL RESOURCES AND CAPABILITIES

 In term so financial resources, net income of the entity is 22,446
million in the year 2018 which is a good profit but by analysing
its past operation entity as bigger profits and in turn entity as
mainly invested its lot of money in physical, technological and
human resources with many types of assets over the globe.
 HUMAN RESOURCE ANALYSIS:
 This is the term which mainly accounts for the number of
employees hired by entity across the globe and in context with
the Toyota organisation it is analysed that entity has huge
corporate structure which mainly consist of 364,445 employees
worldwide and because of which it becomes the sixth largest
company in terms of revenue across the world.
FINANCIAL RESOURCE ANALYSIS

 In terms of this type of resources, Toyota is famed for having
advanced material with effective inventory management system. It
also has automated parts which are built with effective quality
control systems. Recently, entity has introduced automated cars and
eco-friendly cars which differentiate with other manufacturers of the
market in this sector.
 CAPABILITIES: Toyota is the entity which mainly solves its
problems through better utilising their resources and with core
organisational strategies. Through this its strategic capabilities get
formed. However, other than this entity is possessing number of its
core capabilities which can be used to leverage its energy
consumption technologies, diversifying sources of fuel and increase
in manufacturing and efficiency in green vehicles.
TECHNOLOGICAL RESOURCE
ANALYSIS

 Employees: For Toyota employees are its most significant stakeholders.
These groups mainly aim for job security, career development and fair
employment practises. In regards with their own perspective entity
mainly address interest of these stakeholders through effective
corporate social responsibility where entity provides satisfactorily
salaries and wages with career development program as well.
 Customers: These are the second-priority stakeholder for Toyota
Corporation. The interest of this group of stakeholder is regarding high
quality automobile services along with affordable prices.
 Communities: The perspective of this group of stakeholders is
regarding socio-economic development by entity and Toyota mainly
addresses issues of this group of stakeholder through various
community development and support programs
STAKEHOLDER’S PERSPECTIVE

 Investors: For Toyota, investors are the major another
stakeholders group which mainly covers their interest
with entity’s profitability.
 Environment: Toyota mainly has the effective
corporate social responsibility strategies through which
it targets its environmental goals.
CONT..

 From the above report, it can be concluded that Toyota has effective
organisational strategies though which its business operations will
smoothly gets conducted in globalised world. In this report,
articulation has been provided on the type of strategies in context
with Macro environmental factor, industry performance, internal
resources and capabilities and with stakeholder’s perspective
through which understanding will get developed on Toyota strategy
to meet with such factors. Thus, it can be summarised from the
report that Toyota has achieved sixth largest manufacturing company
through capturing technological advancement opportunities and with
innovative features of product and services which mainly helps them
to satisfy the changing consumer’s needs of globalised world.
CONCLUSION

 Fozer, D and et.al., 2017. Life cycle, PESTLE and multi-criteria decision
analysis of CCS process alternatives. Journal of cleaner production. 147.
pp.75-85.
 Leng, K.C. and Chin, T.A., 2017. The Influence of Marketing Mix Factors
on Consumer’s Purchase Intention Toward Hybrid Car in Johor
Bahru. Advanced Science Letters. 23(9). pp.9115-9116.
 Barron, A., Pereda, A. and Stacey, S., 2017. Exploring the performance of
government affairs subsidiaries: A study of organisation design and the
social capital of European government affairs managers at Toyota Motor
Europe and Hyundai Motor Company in Brussels. Journal of World
Business. 52(2). pp.184-196.
 Kushwaha, G.S. and Sharma, N.K., 2016. Green initiatives: a step towards
sustainable development and firm's performance in the automobile
industry. Journal of cleaner production. 121. pp.116-129.
REFERENCES