Strategic Management of Toyota: Theory, Practices, and Recovery Plan

strategic management

Table of Content
INTRODUCTION ..........................................................................................................................3
MAIN BODY ..................................................................................................................................3
Compare theory and practices.....................................................................................................3
A Case study of the approaches..................................................................................................5
A recovery Plan ..........................................................................................................................7
RISK Management Strategies ....................................................................................................8
CONCLUSION .............................................................................................................................10
REFERNCESS...............................................................................................................................11

INTRODUCTION
Strategic management is the ongoing planning, monitoring, analysis and assessment of all
necessities an organization needs to meet its goals and objectives. Changes in business
environments will require organizations to constantly assess their strategies for success.
This report will cover case study and explain the strategic management of the Toyota
company which is Japanese multinational company and their products are Automobile,
Luxury victuals, engines and commercial victuals. This report will cover the strategic
management of this company and it will compare the theory and practices which will include
Porter's five forces so company can understand the threats in the industry and how this
company use this strategy for their business expansion. This report will also analyze the
approaches used by the Toyota company in their manufacturing process and how they are
using it to take competitive advantages. This report will also provide recovery plan of the
company where company take the recovery from the weakness and threats. In the end of this
report will provide the risk management strategies so company can overcome fro the risk
and problems they are facing in the market where they are operating their business.
MAIN BODY
Compare theory and practices
Porter's five Forces of the competitive analysis theory was developed by the Michael
Porter in 1979 and explain the forces within the industries which can become the threat for
them or they can have the positive influence on the company, and they can take the competitive
advantages in the marketn (Asravor., 2019). This framework is for assessing and evaluating the
competitive strength and the position of the business organization. This theory is totally based
on the concept for 5 forces in the industries which helps to determine the Intensity and the
attractiveness of the market this analysis helps to identify where the power lies in the situation
of the business. This is also useful for the companies to understand the strength of the
organization ad their current standing in the market where they are operating their business.
Strategic analysts often use Porter’s five forces understanding whether new products or services
are potentially profitable. By understanding where power lies, the theory can also be used to
identify areas of strength, to improve weaknesses and to avoid mistakes.

Toyota company has use this strategy successful to know the competitive advantages
and threat which has negative impact on the companies business. Here is the Porter's five
model analysis of the Toyota company -
Porter's five forces
Threat of the New entreat
The threat of the new entrants is very week force in the Automobile industry, if any new
company wants to enter the automobile industry then they will need high investment which can
involve the foundation and management of the company. T they also have to include huge
amount on the supply chain management , marketing of their brand and other resources like
employees and their training (Chiarini, Baccarani and Mascherpa., 2018). This will take times
and huge investment. Without having the innovation and the product specification company
is not able to take competitive advantages.
Moreover for any new entrant top grow there business shares in this industry , they would have
to spend a lot on the promotion and their marketing to are people
Bargaining power of buyers
The bargaining power of the customers is string in this industry because the customers
have some of the options to go with the other brand. Every customer is highly informed, and
they are free to make their own choice. Customers can get the other similar product in the less
prices s they can go with the other so the companies in the automobile have to bargain with the
customers and Provide them the product with the discount. But the Toyota company has been
hold the strength because they are using the approaches which reduce the cost, and they can
offer the customers their product with the huge discount . Their technology and their design
make this threat low for them because they are providing better features for the customers
which helps to satisfy their needs.
Barging Power of suppliers
The bargaining power of the suppliers force is very weak within the industry where
Toyota company is operating their business Apart from the large number of suppliers, their
moderate size is also a reason that they cannot influence Toyota (Dieperink and et.al., 2016).
Generally these suppliers are small or moderate in size and that reduces their ability to integrate
forwards. Thus, the chances of any competition from the suppliers for Toyota are nil. Moreover,
due to the high number of suppliers, there are a large number of options before Toyota. It can