Strategic Management Report: Recovery Plan for Toshiba Corporation

This report provides a comprehensive analysis of Toshiba Corporation's strategic management, focusing on its recent financial challenges and proposing a detailed recovery plan. The introduction highlights the importance of strategic management and its application in various organizations, particularly in the context of Toshiba's diverse product portfolio, including electronics, communication equipment, and information technology. The report delves into the application of a recovery plan, starting with a situation analysis that examines Toshiba's market position, brand value, and strengths, such as its global presence and innovative IT solutions. It then identifies the company's weaknesses, including involvement in scandals, financial losses, and the impact of its nuclear business. The report discusses various strategic models that Toshiba could adopt to improve its performance, emphasizing the importance of market analysis, human resource management, and effective communication. Recommendations include improving portfolio management, seeking financial support, and implementing integrity-based ethical codes. The report concludes by summarizing the key findings and recommendations, aiming to guide Toshiba in regaining its financial stability and market competitiveness.

STRATEGIC
MANAGEMENT

EXECUTIVE SUMMARY
The current report discuss the role of strategic management in organisation and its
growing importance in current time. The report discuss how applying good strategic activities
can help firm in difficult time the report prepare a recovery plan through which Toshiba firm can
overcome there financial issue. The report gives detail study on the benefits of strategic market
and how firm can use this in order to gain competitive advantage. This also help in smoother
working in this different strategic model are given which can help the cited firm in crisis and also
suggest some way through which they can overcome this issue some limitation are also
mentioned in the report so that company can avoid this

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................4
APPLICATION OF RECOVERY PLAN.......................................................................................4
Situation analysis....................................................................................................................4
Strategic Model......................................................................................................................5
Recommendation....................................................................................................................7
Implementation.......................................................................................................................8
Limitation...............................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Strategic management has become important tool used by varied organisation in order to
attain there business goals and objectives. This process includes continuous planning, analysis
and assessment of project (Alukal 2007). In help firm in setting there objectives, and analyse
there competitive environment which help them in gaining stability in this ever changing market.
It also helps in internal analysis so that company can identify its strength and weakness and work
on it.
In the present report we have taken Toshiba Ltd. And analyse the critical fundamental
issue related to strategic management of the firm. It's a Japanese company involved in
conglomerate industry. The company is known for its diverse product that it sell. The product
and services they provide include electronic component and material, communication equipment
etc. Company has many product under its list but what help company in attaining the brand name
globally is there product in information technology. In current time company is facing some
financial which will be discussed in this report. It will also provide recovery plan to cited firm as
its facing many problems and suffering from loss. It has come forward that there was major
decline in the in its sales volume and also in there market share. The report will discuss the major
reason behind the big loss and will provide strategic measure which will help organisation.
APPLICATION OF RECOVERY PLAN
Situation analysis
Its necessary to understand current market condition and performance aspect in order to
design effective recovery plan. This help firm in leading better business, having proper and
effective strategic activity design help firm in achieving better success. Toshiba is working
globally and has achieved the brand value which provide the firm with great visibility and better
chance of success in global market (Ammenwerth and Winter, 2014). Toshiba has already gained
its name in the world of information technology and now company is investing in fuel cells,
energy, micro grid etc. other than this there simple software are also gaining popularity in current
times. This factors had helped company in global market to perform better. Human resource of
organisation is also one of its major strength that give them competitive advantage in market.
Firm has great distribution channel through which company can easily make there product
available to consumer this not only increase there sell but also the satisfaction level of employee.

Other than this company's adoption of innovative IT solution also aid organisation in getting the
success it currently resides on.
Even after gaining the brand image and establishing all over the world the entity is facing
critical issue in there current time. Company is suffering from the major drop in the sales it also
affecting negatively on the brand name of company. The major reason behind such a big change
in the sales of company is because there involvement in the different product of many sectors of
market which has major effect on the flexibility of company. The increasing competitive level
and there involvement in undesired scandal also have negative impact on the business operation
of the cited firm (Antony and Labib, 2008). The company name in different scandal have affect
the customer base of company. Customer trust on the company has completely shaken. Other
than this there blind participation in US nuclear firm did not help much. The nuclear operation
by Toshiba has led it into more crisis financial turmoil. In order to overcome such issue its
necessary for firm to take important measure that can help them in regaining there formal glory.
Company need to work upon there capabilities of corporate strategies which is the major reason
behind the poor performance of company. Company is in urgent need to create positive image in
front of its customer to regain there trust. It also requires good human resource in there company
which not only work for the profit of company but also in the welfare of organisation. The
company has gone through major financial loss (Arganona, 2014.) Company has taken important
steps in order to improve there corporate governance but its not governance that company has to
look after, it's there debatable strategy that organisation have to work on for better result.
Strategic Model
Through a proper study it has come forward that there are various type of model which a
business entity can adopt for better performance and in order to meet there goals and strategy. Its
necessary for Toshiba to understand this models and select the best model which can help them
to come with better corporate strategic plan (Werbach, 2009). In regard to this firm is required to
understand the international market so that they do not suffer from the same loss as they have
suffered from there investment in US. Company need to work on there company portfolio of
business so that it can maximise the return of entity.
The major reason behind the failure of there nuclear investment was because company
did not do proper analysis of market before investing in them. Before investing in any new plane
its necessary for firm to carry out proper research on the internal and external environment of

business. It especially essential for company if they are investing at global level as it affect the
brand image of the company at global level and has its adverse effect much wider level. Its not
necessary that all expansion made by organisation will bring profit in organisation (Hagel and
Brown, 2015). Having a proper research will help firm to come up with the best strategic plan
that will help them in achieving a desired expansion that is sure to bring more sales
Human resource is an important part of any organisation. Company can use HRM
strategies in order to handle there staff. It not great idea that lead company to success but it
peoples behind the idea that help firm in achieving there goal. The growth of ant entity depend
on the competency of people and how well they perform there task (Hagel and Brown, 2015).
Toshiba also need to pay attention on there staff and there performance. Any strategic plan of
company is made by the management of the cited firm. The plan or any strategy cannot be
implemented unless and until they get approval from higher authority. Even though the strategy
of investment in nuclear firm was made by the management team of cited firm but still get
passed by higher member of firm. It shows that the employee of Toshiba lack in competency to
carry out there task and performing very poor which is affecting the image of company.
Company can provide training to there employees so that it can enhance there knowledge. It can
also organise different workshop through which employee can get practical knowledge (London,
Hart and Kacou, 2011). Higher authority look after the whole management and working of firm
if they are incapable than its shows in every activity of company. Company need to hire only the
best people that work in the favour of company.
Communication is also one of the problem that firm is suffering from to overcome this
problem it can adopt Information system strategies. Making a global presence is not easy but
maintaining that presence required lot of work to overcome the issue Information system help
organisation to overcome the barrier that come because of no proper communication. Using
internet to communicate with people working in other countries can be very much beneficial
through this firm can keep eye on the activities in the branches that are situated in other country
they can also ask for details and activities undergoing in other branch (Dressler, 2012) This also
help firm in having communication with there suppliers as well as there customer which enhance
there relationship with them. Employees from different branches in different country can
communicate to each other and can pass there work to each other.

To overcome such a big scandal and loss cited firm can implement stability strategy in
there firm in this strategy firm implement the changes in there performance changing its business
term this term are not change at big level but only at small marginal level. This change are
mostly concerned with the customer of firm or within the organisational structure by using
alternative technologies. Changing there policy and way to work will throw positive light on firm
working for the customer will also increase there favour toward the organisation.
Retrenchment strategy is one of the strategy that can also be helpful in such a difficult
time. According to this strategy company diminutive its activity through substantial reduction in
activity this reduction can be of anything where they eliminate there business in term of
customer functions, customer group, expansion activity etc. (Dolan and Garcia, 2012). Its high
time company stop there involvement in more business and work to manage the places where
they have already invested. This will improve the performance of firm as they are already
suffering from complains of poor performance.
Price skimming is another strategy which firm can use drop in sales and reduction in
customer base are two problems that company face at such time to attract more customer its
necessary for firm to make some changes in the price they are offering. It focuses more on
premium product and adjust the price of product on that basis. Implementation of this strategy
has major impact on the production and advertising cost. It helps organisation in performing
better, and help them in achieving there goals and objectives by managing the loss of company in
appropriate manner.
Recommendation
To recover from such a great loss that company had suffered company have implemented
various governance policy. The policy has brought many changes and help company in
recovering few points. Executing only one policy to overcome all the loss is that enough for firm
to attain there formal glory. After implementing this strategy company had let go many of there
staff event many of there directors also have resigned from there position because of the wrong
ethical work (Neumann and Finaly-Neumann, 2014). Company also needed to sell off many of
there business to pay there debt. Company need to implement more corporate strategies that can
accelerate there recovery. Even after making so many changes and letting there staff and
business go company still hasn't able to emerge from this loss and still in debt of a billion.

Company should improve there PORTFOLIO so that there profitability can be increased.
Bank is another option for Toshiba the bank of Japan support different organisation that
are in crisis. In the of need help in time of difficulty this organisation can provide fund to them.
Its already clear that its financial issue that company is suffering from billions of debt and shaken
trust of investors is not helping firm at all (Cope and Waddell, 20011).Any initiative to recover
the lost also require financial support. If the bank provide them with this support than company
can work toward betterment.
Company should implement Integrity based code ethics, so that moral value of firm
doesn't get questioned again and again resignation of the wrong person is not enough to make
sure that this problem do not occur again and again. It will also help company in gaining the trust
of there consumers. This code will include many rules and also governance policy which will
prohibited the illegal behaviour in organisation. To make sure that this code are implemented,
Toshiba should insist on the set value and establish new corporate value in organisation. This
corporate value should support honesty and integrity in there work.
Retrenchment is the best way Toshiba can recover and they should implement this in
there work. Enhancing there business more and more will be of no used to company. In current
time they need to put more focus on that business that are still in running and work to improve it
so that they can enhance there level of performance.
Narrowing the scope of there business will be in the favour of cited firm, this way
company will be able to put more focus on there strength and weakness. IT technology and
computer products of company is there major selling point company can emphasis on this and
work on all the problems related to this. It will increase the customer satisfaction of company
also help in increasing the sale of company (Gomez-Mejia, Balkin and Cardy, 2014.).
Implementation
In order to implement Retrenchment technique in there work its necessary for firm
Toshiba to move toward gradual earning. Company instead of focusing on making instant profit
require working on earning gradually. This will help them in earning profit in more favourable
way and also help them earn good image. For better implementation of all the strategy company
can use third party alliance in the way of working where the third part are involved in the
working of team.

Before implementing this activity proper research on the market is necessary where they
can identify the changing need of customer. This will help them in serving there customer better.
Having a proper research will also help them in identifying there strength which company is still
making profit, which firm is in the need of shut down. This will help them in investing in correct
business that can bring them profitability (Hedman and Kalling, 2013.).
To promote there ethical value company need to change the way they promote there firm
there promotion should suggest that company has implemented ethical value in there work. They
can add slogan with the brand name of company every time a company is introduced it should be
with that particular slogan. They can also change there logo so that they can make aware the
customer that company is emerging with new resolution.
Company could adopt differentiate strategy in there working style through this quality of
product and there services can be improved. This kind of aspect in the firm add value to its name.
By providing better and better services company can retain the loyalty of customer they get more
attracted toward there products. Market analyse will help in proper implementation of this
strategy. Its necessary to make changes in the product on the basis of the need and demand of
customer so that best result can be obtained.
Uniqueness, creativity and innovation are three key that will help company to get back on
there feet. Uniqueness in product and operational activity give way to flexibility through which
company can attract customer towards them this will increase the sale of company (Alukal,
2007).
Limitation
The biggest limitation in all the plan is in differentiation strategy though it has many
benefits but there are also some risk which comes with it. Company is already suffering from
financial lost implementing differentiation strategy will increase the operational cost of firm.
Toshiba is facing major financial crisis and this strategy will also increase the cost adding
additional burden to the financial department of firm. Its necessary for firm to find alternative
way through which finance can be collected and invested (Huan, Sheoran and Wang, 2014). If
this strategy is affecting the need and perception of people then they need to rethink the
execution of this strategy. Company need to pay attention to the changing need of market and
there customer so that the product they produce meet there need and satisfy them. Rebranding is

good tactic to create new image among the customer but if the employee its factors are not
considered effectively than it will have negative impact on the image of company.
Company is such a stage that any more mistake and company will not be able to recover
from it. It has become essential for them to think and analyse there every step before applying to
any change in the organisation (Laudon and Laudon, 2014) Any mistake from now on will be in
the loss of the firm and it will not be able to emerge from it. Its necessary for them to analyse
each of there strategy and only implement those that can help them in achieving there goals and
objectives.
CONCLUSION
From the above part it's can be concluded that the corporate strategic strategy play
important part in the business entity. It creates new opportunity for firm and make sure that all
work of company is well manages so that it can attain there goal and objectives. Strategic
application also help firm in providing better competition and stability in ever changing market.
Its consider as the critical aspect of organisation. Through the report it has come forward that
company has gone through major loss in sales and market share which has negative impact on
the market value of company. Financial crises and increasing debt was the reason that company
had to let go many of there employees and also had to close down there stores which were not
performing well. It has notices that organisation higher authority was involved in unethical
works and in partnership that had negative impact on the brand name of company. Competition
level in current scenario is such a high that any such mistake by entity can lead them to its doom.
I n overcoming this kind of issue some recommendation are made in report. The firm is
in dire need to change there strategic implication. Company can invest in product differentiation
that can help them in creating better value among customers. It also helps in improving the brand
image of firm which will help the firm in regaining there position back in market and will also
help them in achieving there goals and objectives. Rebranding will also be in the favour of
company they can promote there company in new light and can put more emphasis on ethical
values.

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