Strategic Management: Toyota Case Study

This report discusses the strategies formed by organizations, with a focus on Toyota. It explores various analysis frameworks, such as SWOT and PESTEL, and examines the company's vision, mission, and market share.

Strategic Management

EXECUTIVE SUMMARY
This report majorly has put focus upon the strategies formed by the organizations. There
are various analyses framework which the organization uses before forming its strategic plans,
some of these analyses framework includes the SWOT analyses, PESTEL analyses, Boston
Matrix, competitive profile matrix, grand strategy matrix and the so on. All these framework
helps an organisation in making the correct decision about their actual position and the standard
position they have in market. Strategic management is a concept in which the tactics and the
strategies formed by the organisation are manage in such a way that it helps the it in attaining the
specified task or objective. This report has taken an example of Toyota. Toyota is a Japanese
multinational company which specializes in manufacturing the automobiles. According to the
reports, in 2019 the company has around 364445 employees around the world. This company has
ranked at 10th position in the world on the bases of revenue.
Toyota company started its business in the year 1933. The owner, Kicchiro Toyoda
travelled to Europe and US in the year 1929 for investigating more about the automobiles.
Initially the company has its manufacturing unit into Japan only, after 1960s the company
performed many researches and decided to expand its business by opening their ne
manufacturing unit at the international markets also. The ever first manufacturing unit of the
company which set up outside of their home country was in Melbourne, Australia. Until 1965,
Australia was the highest exporter of the company’s automobile. It is also been observed that
after the end of the decade the company had a global presence. The company had started
exporting its 1 million unit at that time. Toyota is indulge into the manufacturing of all sorts of
cars ranging it from high class SUV’s to buses, mini vans, trucks and cars which can be afford by
middle class people. Apart from their automobile business the company has also engaged into
the other industry like banking, financing and leasing.
The company vision is to meet the needs of the customers with a smile at their faces. Also to
incorporate the business activities in the most admiring and sustainable manner. The mission is
to attract and attain the customers through the offering the valuable and satisfactory products to
them”. The market share of the company according to the reports of 2019 was the highest among
all the other competitors with a percentage of 10 percent. The report of Satista for Global
automotive market in the year 2019 is presented below in the table:

Contents
EXECUTIVE SUMMARY.........................................................................................................................2
INTRODUCTION.......................................................................................................................................4
Introduction of the company........................................................................................................................4
PESTEL and SWOT analyses.....................................................................................................................6
Competitive profile matrix........................................................................................................................10
Internal factor evaluation...........................................................................................................................12
Long term objectives for the company – Toyota...................................................................................13
Strategies for achieving the above stated long term plans......................................................................14
Recommendations about the marketing, finance, R&D, CIS issues which the company should follow:
...............................................................................................................................................................17
Recommend procedures you’ll have in place for strategy review, evaluation and control specific to
your business entity...............................................................................................................................18
CONCLUSION.........................................................................................................................................20
REFERENCES..........................................................................................................................................21

INTRODUCTION
Strategic management refers to making the necessary changes into the tactics used by the
organisation after proper monitoring, analyzing, evaluating, assessing all the needs and goals of
the organisation. Proper management of the strategies used by the organisation helps them in the
achievement of their goals and objective. There are many frameworks which can be used in
accessing the true positions and tactics use by the organisation. For reference this report has
taken an organsiation, Toyota. Toyata is a Japanese company. It is specializes in manufacturing
the automobile around the globe. The company has a huge manufacturing units spreading over
the world. It is a multinational company which has its global presence of around 10 percent into
the market. The company was established into the year 1933 by Kicchori toyoda.
This report discuss about the various strategic analyses framework like SWOT, PESTEL, Boston
Matrix, competitive matrix and the etc.
Introduction of the company
The company Toyota was establish into the year 1933 by Kicchori Toyoda. The company
manufactures the automobiles and sells around the globe. Apart from this the company is also
into banking, financing and leasing business. The company has the following mission and
visions:
Mission:
The mission is to attract and attain the customers by providing them the high valued products and
services which brings satisfaction into the lives of their customers along with a smile (Barca,
2017). The company plans to attain its mission with the help of all these core values and these
values are:
 By providing the professional excellence into their products and services offered to
customers.
 Bringing their system towards the customer orientated concept.
 Through effective and efficient team work
 By welcoming the new challenges the company has face
 And lastly through have a global perspective before forming any structure or system.
Vision:
The company’s vision is to be the most successful business into the world by gaining the respect
from their customers. And to provide the products which satisfies the needs to the customers and
bring up the smiles at their faces.

The company plans to achieve this vision through the sustainable growth. They develop the
vehicles which match with the expectations of the customers, making them satisfied. They also
give their contribution in the easy access and mobility of communities. And promotes the eco
friendly environment and systems.
PESTEL and SWOT analyses
The pestel analyses is a framework which is used evaluate the factors which are
independent to the control of any organisation. These are the factors which are do put an impact
upon the working of any organisation (Baumgartner and Rauter, 2017). The pestel analyses are
used to form the strategies after analyzing all the external factors. The pestel analyses helps in
taking out the opportunities from these external factors and evaluating the kind of risks the
organisation can face. The pestel analyses of Toyoto are as follows:

Political factor: The political factor refers to the rules and regulations which the government
from. It is also refers to the degree towards which the government can exercise the control upon
the industries. Some of the examples of political factor may include foreign trade policies, taxes,
corruption and the etc. The company, Toyota, in 1992 set up its industrial unit in UK, which
earlier they has decided to establish in US. As the market and the government of UK is very
much stable which looks very much more promising to the company they decided to shift their
manufacturing unit from US to UK. The UK government also provides some relaxation of the
company in terms of expensive tariffs as the company employees hundreds of local people of the
country contributing to the growth and employment rate of UK. Similarly the company also
planned to establish its manufacturing unit in Thailand but due to very instable government and
political situations of the country the company decided to take off its idea (Deephouse, Gardberg,
and Newburry, 2019). Toyota believed that the demand into the Thailand would not be so high
compared with the invested price. The political stability did played an important role into the
company decision as it has impacted the company’s operations to a great extent.
Economic factor: The economic factor refers to the economic stability of a particular region or
country. Some of the examples may include employment rates, GDP, growth rate and the etc.
Evaluating all these factors are very much necessary as they tell the company about the
disposable income of the people and the prices which they can afford for the product or service.
Toyota not only competes with the companies its home market but also with the international
companies such as Ford and BMW. To fight with such competitors the company has to evaluate
about the customers income and their needs so that the company can manufactures the product
within their afford limit. The company also produces the automobile according to the prices of
petrol and diesel. In some countries the prices of diesel are very less there the people prefer to
purchase the diesel based vehicle. Whereas in some countries the prices of petrol are very much
less that’s why they prefer the petrol based vehicles. Toyota also gets very much affected by the
decrease in disposable income of the people. As due to recession many companies’ production
and revenue gets impacted, Toyota was one of them.
Social factor: Social factor includes the taste and preferences of the targeted market. It also
includes the attitude and perception the targeted market has on a topic. This helps the company
in knowing about the taste and wants their customers. There were many a times the company
Toyota has to call back its vehicle due to some problem or issue like any malfunctioning into
their vehicle’s system, does not get liked by the people, and etc. for which the company has also
to pay various penalties. The company does take its customers very seriously and perform a
thorough investigation into their product if their customer finds any issue or malfunctioning. The
company also investigates about the needs and desires of their targeted market so that they can
come up with such a vehicle which can satisfy their needs and wants. The social factor helps the
company in producing the product which is liked by the customer and also gives them the high
value through their satisfaction level.

Technological factor: The technological factor includes the factor like technological
advancements and up gradations. It has been said that the first hydrogen car was manufactured
by the company Toyota. The company invests massive amount of money into their research and
development program so that they can offer the alternatives for the fuels. This would help not
only in saving these scare resources but also these can save the energy used. Toyota is also very
much into the manufacturing of Hybrid cars which is the mixture of fuel and electric cars. The
company always tries its level best in bringing the new innovation and creation into the vehicles
and relative services it provides to their customers. It never stands back when it comes to
technological advancements and innovation and keeps on surprising its customers with new and
advance technological vehicles.
Environmental factor: This factor includes the rules and regulations which are related with the
environment and the related issues. The Toyota Company is contributing to the environment by
producing and coming up with the technology which helps the environment in the sustainable
growth. The vehicles like hydrogen and the Hybrid vehicles are helping in less consumption of
the fuels and save these scare resources (Ergunova and et al., 2017). The process and the
technology used by the company are also eco friendly. Apart from this the company has adopts
the sustainable and smart policies regarding their waste handling and recycling products.
Legal factor: The legal factor includes the factors such as rules and regulations which have been
formed by the legislation. Some of them includes the employment Acts, discrimination Act,
wages Act and the like. The organizations have to follow all these rules and regulations if they
want to operate into the region or country. The company Toyota is established globally, the
company has follows and has obeys all such regulations according to the region in which they
are. This has also helped the company in gaining the trust of the government as well as of
customers. The legal factor is very much important to consider by any organisation, if not
followed the company has to pay a huge penalties for that.
The SWOT is an abbreviation of strength, weakness, opportunities and threat. This is an
internal analyses or micro analyses which helps the organisation in evaluating its internal
strength and weaknesses. And also this helps the organisation in analyzing its opportunities and
threats. Here,
Strength refers to the unique qualities which help the organisation in differentiating ifself from
the other competitors.
Weakness refers to the weak points which the organisation has and in which they needs some
improvements.
Opportunities refers to the areas which the company can explore more that would help in
bringing the growth and success.
Threats are the risks or the dangers which the organization is prone to.

Strengths: The Company Toyota has a major strength that it invests much in its research and
development department. Through working more in R & D department, it is able to bring such
new and innovative vehicles into the market place. The company keeps satisfying its market by
bringing innovation in their vehicles which offered the high value to its customers along with the
greater satisfaction. The company has a global presence which does helps it in not advertising
and promoting about it. Also it has a huge and strong customer base which is much a huge
benefit for any company (Favoreu, Carassus and Maurel, 2016). The Toyota Company cares
about the sustainable growth and they also have made their processes and procedures
accordingly. The technology used by the company is also very innovative and new which helps it
in attaining the competitive advantages over other competitors. Apart from all these the vehicles
which are provided by the company are of high valued which satisfies the customer’s needs and
wants at that price. The vehicles which the company manufactures targets all sorts of market as it
produces variety of it like trucks, mini trucks, SUV’s, petrol cars, diesels cars and so on.
Weakness:
Dependence on suppliers: As the company does not manufactures all the parts of a
vehicle, they do import that from other companies or suppliers, any delay in that process can also
delay in further activities for the company. This is considering a major weakness as the company
might be able to face problem in achieving their production target at time.
Not grabbing markets: The Company had produced the green vehicle technology, but
these vehicles were get failed to get the required attention from the people. This did create a loss
for the company has they fail to attain the required or targeted market for their green vehicles.
Negative publicity: Sometime it happens that the company has to call back some of its
vehicles due to malfunctions or any sort of problem into them. This has create the wrong and
negative image for the company.
Poor brand recognition: Toyoto has in total 4 flagships namely Hino, Daihatsu, Lexus
and Toyota. Among all these lexus has the good brand recognitions other are not so very popular.
Opportunities:
The developing nation’s growth: The nations or the economies are getting developed with
the time. The under developed economies are coming into the category of developing nations
and with that the disposable income of the people is also increasing making them financially able
to afford the automobiles. This is a good sign for the company as this can help in increasing their
sales. This also creates the demand for the company.
Green vehicle technology: there is a running trend of green vehicles in which there is a
less use of scare resources such as petrol and diesel (Ferreira, Mueller and Papa, 2018). The
green vehicle are made with a purpose that they consume the less energy which would not only

reduce the consumption of scare resources but also would produce less pollution into the
environment. The field for green vehicle is very much new and has the capacity to grow more.
Concern for environment pollution: The companies belonging to any industry are trying
their best in producing the products which encourage sustainable development and growth.
Likewise the automobile industries are investing huge into their R & D department so that they
can produce the automobiles which can produce the less pollution into the environment. As in
the case with Toyota, the company has produced the vehicles like Hydrogen cars and hybrid cars
which help the environment in not producing any kind of carbon element into the air. This is a
field which is very much promising to any industry and a lot of research and exploring can be
take place.
Threat
Competitors: The Company Toyota faces a huge competition not only from its domestic
competitors but also from the international competitors like BMW and Ford. It is very hard for
the company to keep up with the market and market needs by creating the new products and
vehicles which can help them in gaining competitive advantage and also differentiate themselves
with the other companies also.
Huge price for raw materials: The raw materials or the parts of an automobile company
are very much expensive. Any rise into the prices of these raw materials would put a direct
impact upon the prices of vehicles (Heath, 2018). This creates a threat for the company as if the
prices of raw materials get increased they might have to increase their prices for vehicles which
might can lose their customers.
Lower profits: Due to the continuous changes into the exchange rates the profits margins
for the company gets decreased. When the company gets back to the Japan, it becomes quite less
profit margins for the company as compared with other countries currencies.
Competitive profile matrix
The competitive profile matrix is a matrix which helps the company in the identification
of the organization competitors and compares them with their strength and weaknesses. In order
to understand the actual competition which company face and the various external forces this
matrix get in use. In this the competitors are get compared with the factors which makes them
successful. This also helps the company in analyzing the company’s strength and weakness and
from this the company can make the required strategies to bridge the gaps. Critical success
factors are yet another important term. These are the factors which are taken as a highest possible
value and if a company has to attain success then it is necessary for them to have the command
in these factors. These include both the internal and external factors in their evaluation. In this
matrix the comparative are weight according to the rank of 1 to 4 where,

4 = major strength
3 = minor strength
2 = minor weakness
1 = major strength
In the above competitive matrix it is clearly seen that for the automobile industry the advertising
and the Global expansion is of great priority and importance as they weigh the highest among the
lot with a weight of 0.20. Following to this financial position is yet another important factor with
a weight of 0.15. The lowest importance among the available factors is the Market share with a
total weight age of 0.05 only. These weight ages are provided according to the factors which are
need to be consider as a priority and if the company wants to be very much successful they need
to have a command at the above stated factors.
According to the table which has been provided above, the company 2 has the major
strength holding in this factor. It is clear that this company puts a lot of investments in its
advertising. They have the goals that their brand should be easily recognizable among the
targeted market which also helps in making their company to have a global presence. It is also
observed that the company which invests much into their advertising activities, which helps the
company in educating about the company’s products and services that they got to offer, also help
the company in spreading and increasing a global presence. Along with the advertising the global

presence is yet another factor which has been put up as a priority by the company. In this factor
Company 1 has scored the first position as their global presence among the other two companies
is more and the company 2 is the least in this factor which was at first position in advertising.
Also the company 1 has the highest position in the financial position factor. This means that
along with the good global presence the company also has the great financial position in its
operations. Having a strong financial position into the market is a good thing for any company as
it helps the company in building trust among the investors or the shareholders. After doing all the
calculations and adding up the total weight, it has been observed that the company 1 is a lot
better among the available other two companies (Honggowati and et al., 2017). The company 1
has the total score of 3.15 and the company 2 and company 3 have the total score of 2.50 and
2.70 respectively.
Internal factor evaluation
Internal factor evaluation is a matrix which is being used by the organisation in analyzing
the internal resources like its strength and weaknesses and its internal environment. Through this
the organisation can make the relevant changes in its internal environment if they feel that there
are lacking behind at some factors. The rule is to take out 10 to 20 key points related to the
internal environment. Then after analyzing these factors the company then gives them the
required weight age. After providing them the weight age the company compares all these
factors with their internal factors. Through this the company gets to know about the factors in
which they are lacking behind and then they can make the necessary strategies and the policies to
bridge the gap between the actual internal environment and the standard environment of the
company. This matrix when used by the Toyota Company would help them in ascertaining the
actual position of their internal factors and environment.

The internal factor evaluation of the Toyota Company has been presented in the above table.
According to the table, the company has various internal strength. These strengths include
inventory turnover which seems to get an increase, customer purchase for the product is also has
increase for the company, the employees who are working into the company has the high morale
which means that the company does put efforts in motivating their workforce into the desired
direction. From the table it also has been noticed that Toyota pays the good salary to their
employees, which is quite an attractive and excellent factor for any employee. Apart from this,
the internal factor evaluation also has evaluated the weakness which company have. These
weaknesses may include the location of store which did impacted the sales for the Toyota
Company, there are no website for the company’ store in particular which does act as a weakness
for the company. The speed for proving the services to the customers is low which do impact
upon the time taken by the company to handle a particular customer. The suppliers of the
company started to take time in their delivery process which impacted the company’s production
schedule along with the other time table also. As a weakness it also has been noticed that the
washrooms of the company’s store needs refurbishing as it throw a bad impression upon the
others.
Therefore apart from much strength the company Toyota has also various weaknesses in which
they need to work upon. The company needs to make appropriate plans so that they can cover
their weaknesses or can change their weaknesses towards their strengths.
Long term objectives for the company – Toyota
Every company forms the long term plan and according to that long term plan it forms
the short term plans which very much supports these long term planning. These long term plans
helps the company in providing the required direction to their actions and planning process. It
also puts a great impact upon the decisions which the company takes. The long term objectives
of Toyota are as follows:
Cultural expectations: The Company has planned to bridge the gap between the different
cultures which exists. Here culture does not fully imply upon the various kinds of culture or
norms according to their family roots but perhaps the cultural difference between a young and an
old man. The preference of these two categories is way very different and the motive of the
company is to provide and stand upon their expectations (Kliuchnikova and Pobegaylov, 2016).
The company has planned to bring a lot of innovation and improvement in terms of their digital
platform. The company wants to make their digital platform so advanced that any customer can
not only see the product online but also able to make the payments through the digitalised mode.
They have planned to make all the purchasing process more easy and accessible. They want to
make all the activities digitalised so that everybody can get easy access to that.
Effective insurance policy services: The Company has planned to make their insurance policies
more effective and easy for all its customers. Through effective insurance policies the company

can gain the more trust of the people as the people would free mind and without any worry will
purchase the vehicles of the company. It has been noticed that the customers choose that
company for vehicle which provides better insurance against their vehicles, so from this
observation the company has planned to make its insurance policies more effective and efficient.
In fact the Toyota has already been started to proceed for such objective. They are trying to bring
the insurance policies of all the regions and countries according to their planned objectives
through negotiations or through moulding their insurance policies in such a way that company
fulfil its motive and also follows the rules and regulation of the government which they have
formed regarding their insurance policies.
Eco car strategy: The eco car strategy is one of the major long term goals of the company. The
company has planned to put major focus upon manufacturing the eco friend car, they have
planned to manufactured the electrified car which does not produce any kind of pollution into the
environment and also which does not use the scare resources like petrol and diesel for their
running. For achieving these goals the company has already invested a lot into their research and
development department in which they are making the full efforts in manufacturing a durable
electrified car which is eco friendly and also has all the facilities which a normal petrol or diesel
car has (Konovalova, and et al., 2018). This is the company’s way in contributing into the
environment and environmental related issues.
Automated driving: The company’s also has a focus upon the automated driving in which the
car gets itself driving automatically without the use of any driver person. For achieving this goal
the company has to be very much advances in its technology and needs to connect itself to the
Artificial Intelligence so that the car has the brains to drive automatically without get the car
injured and without the help of a person. This technology would be very new in the automobile
industry and it should be human safe oriented that human being can trust upon their technology.
Because a automated car who drives automatically has a greater risk for getting injured, so to
gain the trust of the customers or the people the company has to also gain the trust of people and
needs to prove that this technology is totally safe in use.
Mobility: The company has planned to focus on mobility through have connected information.
They have planned to install a strong GPS system which can help the driver in his navigation
also the system tells the nearby facilities about any kind of mishap happen with the car or the
driver on road. This would help the person in taking the help at time and will reduce the level of
injuries. The technology also aims at increasing the mobility and connections along the travelling
by providing the vehicles which can ease the travel for the people.
Strategies for achieving the above stated long term plans
The following matrix can be used by the company in accomplishing its above stated long
term plans. These matrix or the strategies can be:

Boston consulting group: In this matrix the products which are offered by the company are
divided into two heads first, according to its level of growth in its current market and according
to the company’s market share comparing with other competitors into the whole market. In this
framework the products are divided into 4 major categories which are stars, cash cows, Problem
Child and Dog. The BCG matrix of Toyota Company is as follows:
Stars: It signifies high share into the market with high growth rate. These products have a
huge demand into the market and they also dominate the market. To maintain a dominant
position into the market place these products needs to put a lot of investment into it so that they
gain competitive advantage (Koseoglu, 2016). There are major vehicles of Toyota Company
which majorly dominates the market; also the whole company dominates the market with a total
market share of 10% which is highest among automobile companies. The vehicles like SUV’s,
diesel cars, mini trucks are so promising to the customers that they are the most preferred by the
company.
Cash cows: The cash cows signify the category of products which are of high share but
low market growth. These products usually enjoy dominant position into the market due to less
competition into that area. These products do generate income for the company. As in the case
with Toyota Hybrid cars, they acquire a strong and particular position into the market place and
they do generate some percentage of income for the company. The hybrid technology is totally
new into the market and that’s why it also not has much competition in place.
Dogs: These products are considered very much weak into the market place and their
growth is also very low. Such products do not generate any sort of income for the company and
their operations create losses. These can be the vehicles which are consider old into the market,
as now their manufacturing is taken as loss for the company because there market demand is
very much low. And as their market demand is low these products are consider weak and low
growth. As in the case with Toyota company, there were ample of vehicles for which the
company has stopped the manufacturing some may include Toyota Supra, FJ Cruiser, Corolla
Wagon and etc. These vehicles were getting discontinued as their more manufacturing were
creating loss to the company.
Question mark: These are the products which do have the high growth into the market
but they do not have the high share in market. This can be the reason that the products are very
much new into the market place. And if not, the company needs to evaluate that what went
wrong by them (Martinsons, Davison and Huang, 2017). For example the mini trucks by the
company were not initially consider in a star category, they were into the question mark category
only as there market growth were high not market share was not high. But with the time the
customers or the targeted audience got to know about the vehicles and its competitive advantage
which has shifted the product into the star category.

Grand strategy matrix: It is a sort of spectrum in which it has two major dimensions i.e.
competitive position which put into the x- axis and the market growth which is at Y axis. Rapid
growth is considered when any company has an annual sale increase of about 5 percent.
RAPID MARKET GROWTH
Quadrant II
• Market development
• Market penetration
• Product development
• Horizontal
integration
• Divestiture
• Liquidation
Quadrant I
• Market
development
• Market penetration
• Product
development
• Forward integration
• Backward
integration
• Horizontal
integration
Quadrant III
• Retrenchment
• Concentric
diversification
• Horizontal
diversification
• Conglomerate
diversification
Quadrant IV
• Concentric
diversification
• Horizontal
diversification
• Conglomerate
diversification
• Joint ventures
Weak
competi
tive
position
Strong
competi
tive
position

The Growth strategic matrix for the company Toyota has been plotted above. Here,
Through the Quadrant 1, the company can attain the good strategic position into the market
place; also through this the company can concentrate on its current products and market place. It
will also give the company the risk to take decisions aggressively.
Through the Quadrant 2, The Company Toyota can achieve these goals through the proper
evaluation of its current marketing position and formation of intense strategies to achieve it
(McKiernan, 2017).
Quadrant 3, the company come at this position when they have reduce the assets for the
company, experience the weak marketing position, and also due to slow growth in the industry
itself.
Quadrant 4, in this company faces the strong competitive position with slow growth into the
market.
Recommendations about the marketing, finance, R&D, CIS issues which the
company should follow:
There are many weak points about the company which it needs to work on that. In that
the area includes marketing, finance, research and development area, and etc. Some of the
recommendations are as:
Marketing: In marketing the company majorly needs to put its focus upon the market
segmentation and product positioning. The company should be able to divide the market on the
following basis:
Demographic basis: In this the segmentation is done on the basis of gender, literacy rate,
income, lifestyle, marital status and etc. Through this the company can evaluate the gender
division into the state. Demographic division will enable a company to evaluate the kind of
preferences the target audience would have. For example in a region there is huge population for
young, then there the sales for sports car and new advanced cars demand would be more. Also a
region where there are more number of family people exists then there the demand for large
sitting capacities car will be more (Pavlatos and Kostakis, 2018). This helps the company Toyota
in gathering the information about the kind of demands they would have in regard to vehicles.
SLOW MARKET GROWTH

Geographic basis: In this basis the division is made according to the geographically.
Mountain region area would have different preference with vehicles as compared to the people
who lives in an urban area. This also helps the company in segmenting the market.
Behavioural basis: In behavioural basis the segmentation of the market is performed
through the division of kind of behaviour the market has. For example In Indian market, the
people generally prefer the vehicle which can fulfil their minimum criteria. Whereas the other
countries like US, they have very different taste and preference with regard to vehicles.
The company Toyota should segments the market accordingly so that they can put their product
range on that basis. Apart from this the product positioning is also very much essential. The
product positioning the refers to the process in which the company position its product or
services into the market and into the minds of the customers also. The company needs to use
effective marketing strategy so that they can position their product into the market at very
effective and efficient way. The advertising method used should be very innovative that it grabs
the attention of huge population. Along with all these the Toyota can also maximize the channels
for distribution so that they can create easy accessibility into the market. The complete or limited
warranty can also play a major focus for the company.
Financing: The Company needs to very much put its focus upon its financing also. They can
prefer for capital acquisition. For making the financial position and soundness strong the
company has to acquire the capital as when the needed time comes the company can have the
support of its capital or asset. These capital acquisitions would help the company in making its
position into the market strong. They can increase the capital through the sales of assets,
purchasing of capital, raising the money through debt and equity. The company should also
adopt the systems for making the budgets. In this the budgets which are prepared by the
company are prepared in an effective manner so that the company gets to know about the actual
costs which they would go to incur in their next coming year. Also budgets help the company in
ascertaining the income which they would have from the expenses they would go to make. It
should always be keep into the mind that these budgets are not a tool for keeping the budgets
very limited. There is various type of budget which a company can use and these are cash
budgets, operating budgets, sales and profit budgets, factory budgets and the so on. Apart from
all these the company’s financing department should also put is focus at its business valuation.
This valuation can be performed through the analysing what business owns, what it is earned,
and the things which the company bring up into the market.
Research and development: The Company also need to bring up innovation into its products.
Here the products are the vehicles. The company Toyota needs to bring up the innovative and
new technology if they want to survive into the market and gain the competitive advantage. The
company should invest the required amount in its research and development department.
Through the proper investment the company can come up with the new and innovative
technologies in the term of their vehicles. The innovations into the transport are always a field

for more exposure. The leaders should put major focus upon this department as they must know
that the actual survival and growth would get brought up by the company’s innovations.
Recommend procedures you’ll have in place for strategy review, evaluation
and control specific to your business entity.
Every business makes plans for its growth and survival. After the implementation of
plans the company also follows various reviews and evaluation program through which the
company reviews the performance of the company which it has performed yet into the business.
In this the company compares the actual performance which is performed by the company to the
standard performance which is decided by the company. And when the difference between the
actual and standard performance of the company is huge then the company is suppose to have.
Then measurable actions are taken place so that the gap between the two can get bridge. For the
strategic review, procedures and control the company needs to follow up the 5 major functions of
management only and these functions are as follows:
Planning: Planning is a process in which the organisation plans about its future processes
and place where it wants to be and the goals and objectives which it would go to attain. The
company performs this planning function which is futuristic in nature. The leader needs to
predict about the further needs and wants of the customers and then forms the actual actions. The
planning process is pretty much time consuming as the leader needs to take into consideration a
lot of external and internal environmental factor into account. In this the forecasting needs to be
done of strategies which the company would go to use to achieve its goals and objectives. This
process also includes the developing of policies and objectives. The planning process needs to be
done very carefully because it sows the seeds for the future actions which the company would go
to initiate.
Organizing: Organizing is a process in which the company organises the required
resources and things which is according to the plan. In this step the company discusses about the
factors which are related to job specifications in which they specifies the job they need to have in
an organisation, job role in which the role an employee would going to play with in a particular
job, job analysis in which the other factors related to job is get analysed so that they can be
clearly get presented in front of employees. In organising process the organisation prepares all
the structures and the system which it would going to follow in its plan. A proper structure is
being prepared by the company in which it includes the unity for command so that the employees
must know that from where they need to take the command and to whom they need to follow up.
A proper structure helps the company in maintaining the clarity into the actions of the company;
they are also useful in making all the actions transparent and communication flow very clear. So
that they can reduce the risk for any confusion, misclarity and conflicts.
Motivating: The motivation is a process in which the individual gets influenced in
performing the actions into a particular direction. The actions which are performed by the

individual contribute into the success of the organisation. The company needs to motivate its
employees in performing their work in a desired manner. And to motivate they work force the
organisation uses various steps or methods which can help the employees in getting motivated.
This method includes both financial and non financial method. In financial method the company
uses the prize money, bonuses, allowances, and increase in salary and so on to motivate the
employees. Whereas in non financial method the methods like appreciation, prizes, increase in
status and so on are used to motivate the employees. The company Toyota make the use of both
for influencing their employees. To maintain the same and constant morale into the work place
the organisation environment does plays an important role. The environment of the organisation
should be comfortable and good so that the employees feel comfortable and safe in the work.
Staffing: Staffing is a process in which the organisation employees the people into their
organisation for performing the required work. In this process the Toyota creates the recruitment
and selection process in which the they organises the hiring process for the company. In this
process the company invites the applications of candidates and takes the interview round so that
they can select the talented candidates for the organisation. In the staffing process the company
employees the candidates according to the skills they have and also according to how they can
help the company in achieving its true goal and objectives (Siegel and Leih, 2018). Also staffing
is not only concern with employing the candidates into organisation but also managing them.
The staffing process is also related to managing the employees and giving them the position into
the organisation which is very much just and fair which their interest and skills they posses. In
this any conflict among the employees needs to get handle, the laws and regulations with regard
to employees needs to follow by the Toyota company otherwise a legal actions can be taken by
the any, the development of the employee should also needs to be considered into the
organisation so that he does not get stuck at a particular position only.
Controlling: In this process the company needs to perform the control function. In this
function the company reviews its plans which it has made before and then compares that plan
with the actual performance. In controlling if during the comparison the difference between the
actual and the standard goals of the company is huge then measurable action needs to be taken
by the company. The controlling function can be apply at quality control, financial control,
marketing control, production control, cost control, and etc. It also includes the process of
analysing of variances, rewards, sanctions and so on.
CONCLUSION
In the report presented above, the mission and vision statement of the company Toyota
has been mentioned. The Mission of the company is to attract and attain the customers by
providing the products of high valued to them. The mission also includes bringing innovative
and sustainable products which stratifies the needs and wants of the customer so that the
company can bring a satisfactory smile at their customers face. The vision includes providing the
sustainable development through the products of the company which help the people in bringing

the efficiency in their mobility process. Pestle and SWOT analyses about the company are also
performed in which helps the company in analysing their position and making their strategies
accordingly. The internal critical evaluation and competitive matrix is included into the report.
The internal critical evaluation helps the company in evaluating its internal strengths and
weakness. When a company analyse its internal factor it helps them in accessing the strength and
weaknesses and they work accordingly. Whereas the competitive profile analyses help the
company in analysing the competitive advantage which they has. This helps them in maintain the
competitive advantages and the factors which they need to add more as a competitive advantage.
The long term goals of the company Toyota has also been mentioned, some of which includes
Eco car strategy, automated driving, mobility, advanced technology and so on. Apart from this
the report also discusses about the functions of management which would be necessary in
strategic review and controlling process.

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