Strategic Management of Toyota Group in a Globalized World

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Added on  2022/10/10

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This presentation provides an in-depth analysis of the Toyota Group's strategic management in a globalized context. It evaluates the impacts of globalization on the company's strategic planning, assessing how strategic alliances facilitate global growth. The presentation focuses on three types of innovation—incremental, disruptive, and radical—and their contributions to Toyota's long-term strategic growth. Furthermore, it identifies three organizational structures suitable for optimal global operations and discusses the structure currently employed by the Toyota Group. The presentation concludes with a summary of the key findings, emphasizing the positive impacts of globalization, the role of strategic alliances, and the importance of innovation in the company's success. The presentation is supported by references to academic research and provides a comprehensive overview of Toyota's strategic approach to global operations.
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Leading Long Strategies and
Globalization
Name of the Student:
Name of the University:
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Introduction
The presentation aims at providing an
insight into:
1. Evaluation of the impacts of globalization on the strategic
planning management of the Toyota Group
2. Assessing how the strategic alliance facilitates the global
strategic growth of Toyota Group.
3. Focus on three kinds of innovation and how they contribute
towards the longer term strategic growth of Toyota Group
4. Identification of three organizational structures that best
suits optimal global operations for the Toyota Group.
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Effects of Globalization on Strategic
Management Planning
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Impacts
Trend 1: Increase in the Output of the
Toyota Group
Trend 2: Emergence of High tech
Revolution
Trend 3: Ensure Global Integration
Trends 4: Encourages Complexity and
Diversity
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Strategic Alliance
As far as the definition goes,
strategic alliance associates
two or more firms where
each desires in gaining
manifestedly or
unmanitestedly through
creation of linkage between
the specific aspects of the
business. There are four key
types of strategic alliance
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Impact of Strategic Alliances on Global Strategic
Growth in Toyota Group
1. Providing Bigger Access to the market
2. Increase in the Sales
3. Ensures Extended Distribution of
Channel
4. Provides an Expanded Business Skills
and Political base
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Three Types of Innovation
1. Incremental Innovation: This has been one of the
most common types of innovation as it makes use of
the existing technology and increasing the customer
value in terms of the design changes and the features
within existing market (Sheng & Chien, 2016).
2. Disruptive Innovation: It is also known as the
stealth innovation that involves the application of
newer technology and process to the current market
of the company.
3. Radical Innovation: This type of innovation gives
birth to newer industries thereby involving
revolutionary technology (O'Connor & Rice, 2013).
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Contribution of Each Innovation on
Long term Strategic Growth
Incremental Innovation: In the long run, this would
prove to be immensely innovative provided the
customers have better experience with products then it
becomes easier in scheduling the email campaign for
the group.
Disruptive Innovation: In the long run the new
technology might surpass the old and disrupt all the
existing companies thereby restricting the strategic
growth. At that point of time it would be too late for the
firm to undertake competition with newer technology.
Radical Innovation: Thus nurtures competencies of
employees and ensures exponential growth
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Innovation of Toyota Group
Toyota Group has undertaken a
technique of incremental innovation
and achieved innovative
breakthroughs in regard to the
manufacturing of the cars. The
company has manufactured one of
the most effective hybrid cars known
as The Prius that is not only healthy
but energy efficient for environment.
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Three Organizational Structures suiting Optimal Global
Operations
1. Functional Departmentalization: This structure
follows firm hierarchy where each of the department
has different management staffs and upward line of
authority.
2. Divisional Structures: This represents an
organizational structure that organizes the activities of
the company into products, markets, geographical or
the service groups (Ogliastri, Jäger & Prado, 2016).
3. Matrix Structure: This organizational structure
attempts in gaining the benefit of the functional
organizations through combination of the specialized
skills into project grid.
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Organizational Structure
of the Toyota Group
Toyota Group
however has a
divisional
organizational
structure. It
underwent
significant
changes in the
year and the
structure was
changed to a
hierarchical
structure.
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Conclusion
On a concluding note it can be said that:
Globalization has casted positive impacts on
the Toyota Group
Strategic alliance has also led to the growth
of the company
As far as innovation is concerned, Toyota
has a incremental innovation
Toyota Group initially had a divisional
structure which has now transformed into a
hierarchical organizational structure.
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